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Bespoke Wealth ManagementWorking With Financial Advisers

iFunds is a trade name of Raymond James Investment Services Limited (RJIS) utilised under exclusive licence. RJIS is the European investment management arm of Raymond James Financial, Inc.

For professional use only

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Agenda

• About iFunds and Raymond James• Investment Solutions• Investment Philosophy• Investment Process & Asset Allocation• ETFs• Summary

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iFunds and Raymond James

• iFunds founded 2002• Over 40 years combined experience• Trading name of Raymond James Investment

Services• Global assets exceed £50bn• Relationship provides:

– Platform for active investment management– Direct stock market access– Safe custody – all assets held by Pershing Securities– Financial stability– Economies of scale

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Investment Solutions

Large Portfolios: >£100kISA/PEP Portfolios: >£100kSIPPS: >£100kOnshore Bonds: >£100kOffshore Bonds: >£100k

Discretionary Management

Or £100k total of a combination of :

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Investment Philosopy

• Absolute return • Managing risk• Minimising costs

Focussed on:

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Investment Process & Asset Allocation

EquitiesGrowth

EquitiesIncome

FixedInterest

PropertyCommoditiesSpecialist Cash

Top Down – Global Macro View

Weighting – Over/Under At Asset Class Level

Dependent on Client’s Risk Profile

Weighting – Over/Under At Component Level

Quantative Overlay – iFunds Software

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Asset Allocation – Global Equities Growth

Via iFunds ETF Global Growth OEIC

• iFunds’ quant process targets ETFs based on likely returns

• Geographical location not a selection factor • Market capitalisation/size not a selection factor• Volatility is a selection factor• Unitisation allows rapid re-weighting across client

base• Cash< 20%

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iFunds ETF Global Growth Fund

Performance: Launch to 30 August 07 (vs. MSCI World)

Source: Sharescope,

31/7/06 30/8/07'07Oct Apr Jul

Marlborough MFM iFds ETF Gbl Gth C

Sep Nov Dec Feb Mar May Jun

Pence Unit Trust118 118

116 116

114 114

112 112

110 110

108 108

106 106

104 104

102 102

100 100

98 98

ScopeShareChart (c) www.sharescope.co.uk

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Asset Allocation – Global Equities Income

Via ETFs Direct

• Uses dividend weighted index based ETFs• Global• Always Invested• Dividends central to absolute return policy• Overweighting achieved via iFunds OEIC

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Core ETF Example: iShares UK Dividend Plus

IUKD7/11/05 31/8/07'07'06 Jul Jul

iShares FTSE UK Div Plus & Artemis Income

Apr Oct Apr

Pounds ETF14.0 14.0

13.5 13.5

13.0 13.0

12.5 12.5

12.0 12.0

11.5 11.5

11.0 11.0

10.5 10.5

10.0 10.0

400 400

Volume (Daily) - th's

ScopeShareChart (c) www.sharescope.co.uk

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Core ETF Example: DJ Eurostoxx Select Dividend 30

Description + Chart

2908.7

30/6/99 12/1/07'00 '01 '02 '03 '04 '05 '06Jul Jul Jul Jul Jul Jul

DJ Euro Stoxx Select Dividend 30 Total R & FTSE 100 ETF

3000

2500 2500

2000 2000

1500 1500

1000 1000

500 500

Graph Legend

MainFTSE 100Invesco Perp Income Acc

ScopeShareChart (c) www.sharescope.co.uk

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Asset Allocation – Fixed Interest

Via ETFs• Government• Index linked• AAA-A rated corporate bonds

Via Institutional Class OEICS• BBB rated corporate bonds

iFunds’ quant analysis identifies areas of strongest

likely returns

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Asset Allocation – Property

Via ETFs• Global REITS

Via institutional class OEICS• Physical

• Overweighting achieved via iFunds OEIC

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REIT Example: iShares DJ Asia property

IASP23/10/06 31/8/07'07 Apr Jul

iShares FTSE EPRA/NAREIT Asia Property Yield Fund

Dec Feb Mar May Jun Aug

Pounds ETF

16.0 16.0

15.5 15.5

15.0 15.0

14.5 14.5

14.0 14.0

13.5 13.5

200 200Volume (Daily) - th's

ScopeShareChart (c) www.sharescope.co.uk

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Physical Property Example: SWIP Property

25/11/04 30/8/07'07'06Jul Jul

SWIP Property Acc

Apr Oct Apr Oct Apr

Pence Unit Trust

140 140

135 135

130 130

125 125

120 120

115 115

110 110

105 105

100 100

ScopeShareChart (c) www.sharescope.co.uk

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Asset Allocation – Commodities

Via iFunds ETF Commodity Fund

• Physical commodity based ETFs forms core• Share based funds can, and do, feature• iFunds quant process targets strongest likely

returns• Cash generally < 20%

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iFunds ETF Commodity Fund

Performance: Launch to 30 August 07

Source: Sharescope,

31/7/06 30/8/07'07Oct Apr Jul

Marlborough MFM iFds ETF Commodty B & CRB Index TR Sterling Conv.

Sep Nov Dec Feb Mar May Jun

Pence

100 100

96 96

92 92

88 88

84 84

80 80

ScopeShareChart (c) www.sharescope.co.uk

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Asset Allocation - Specialist

Vehicles with atypical behaviour e.g.:

• iFunds ETF Total Return Fund• Covered call funds• Zero dividend preference share funds

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iFunds ETF Total Return Fund

• Targets corporate bond type risk/reward profile• Seeks non-correlation with either bonds or equities• Provides ‘risk sink’ for majority of portfolios• Uses industrial sector based ETFs, specialist & fixed

interest funds

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iFunds ETF Total Return Fund

Performance: Launch to 30 August 07 (B shares)

Source: Sharescope,

7/7/05 30/8/07'07'06 Jul

Marlborough MFM iFds ETF Tot Rtn B & LIBOR PLUS 2%

Oct Apr Oct Apr

Pence Unit Trust116 116

114 114

112 112

110 110

108 108

106 106

104 104

102 102

100 100

ScopeShareChart (c) www.sharescope.co.uk

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iFunds ETF Total Return Fund

Risk Profile launch to 04 Jul 07 (A shares): Annualised Standard Deviation: 4.1%FTSE Annualised Standard Deviation: 11.57%Fund Beta: 0.12Fund Correlation: 0.33Source: iFunds/FTSE

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End Result

Example: Balanced Portfolio

Asset Class Core Fund TypePortfolio

Allocation Value

EstGrossYield

Est GrossIncome

Property 13

European Poperty Ishares Ftse/epra Euro Property Ind ETF 4 £4,000 4 £160

UK Commercial Property Sw ip Fd Mgmt Sw ip Property Trust Inc UT 4 £4,000 4 £160

Asian Property iShares FTSE EPRA/NAREIT Asia Property Yield Fund ETF 5 £5,000 4.16 £208

Fixed Interest 20

Absolute Return Ubs Gbl Asset Mgt Absolute Return Bd B Gros A UT 4 £4,000 5 £200

High Yield Corp Bond Standard Life Higher Income UT 8 £8,000 6 £480

High Yield Corp Bond L & G High Income UT 8 £8,000 6.7 £536

Equities Income 22

Income Ishares Ftse Uk Dividend Plus ETF 8 £8,000 4.5 £360

European Income Indexchange Invest Dj Euro Stoxx Sel Div 30 Ex ETF 8 £8,000 4 £320

Asia Income iShares DJ Asia/Pacif ic Select Dividend ETF 6 £6,000 3.5 £330

Equities Growth 20

Global Grow th Marlborough Fd Mgr Ifunds Etf Gbl Grow th C Acc UT 20 £20,000 1 £200

Commodity 10

Commodity Marlborough Fd Mgr Ifunds Etf Commodity C Acc UT 10 £10,000 0 £0

Specialist 12

Total Return Marlborough Fd Mgr Ifds Etf Total Ret Fd C Acc UT 12 £12,000 2 £240

Cash 3

Cash Goldman Sachs Am Stlg Liq Res Pref Acc Nav UT 3 £3,000 4.5 £135

Totals 100 £100,000 3.33 £3,329

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Exchange Traded Funds - Features

Trackers Targetting:

•Major Indices (e.g.FTSE)

•Minor Indices (e.g. Eurostoxx)

•Industrial Sector Indices (e.g. Banks)

•Country Indices (e.g. Brazil)

•Capitalisation Indices (e.g. Mid 250)

•Style Indices (e.g.Value)

•Fixed Interest Indices (e.g. Gilts<5 yr)

•Equity Income Indices (e.g. UK div)

•Major Commodity Indices (e.g. CRB)

•Minor Commodity Indices (e.g. Energy)

•Single Commodities (e.g. Gold)

•Geared Indices (e.g. 2x Dax)

•Short Indices (e.g. Mirror S&P)

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ETF Features (contd.)

Low Costs:

•TERs

•Transactional

•Bid/Offer spreads

•No stamp duty

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ETF Features (contd.)

Suit Active Management:

•Real time pricing

•Deal at known price

•Highly liquid

•Rapid settlement

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Summary

iFunds Approach Aims To:

•Reduce risk through asset diversification

•Reduce risk through quantative overlay

•Use low cost vehicles for active management

•To deliver an absolute return commensurate with customer’s risk profile

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This material is a communication to professional Advisers only and should not be disclosed by such Advisers to their customers or other non-professional individuals without first contacting iFunds for permission to communicate this material as a Financial Promotion. It has not been approved by Raymond James Investment Services Ltd (RJIS) for this purpose. iFunds is a trade name of RJIS utilised under exclusive licence. RJIS is a member of the London Stock Exchange and is authorised and regulated by the Financial Services Authority.

The information and opinions contained herein are based upon sources believed by iFunds to be reliable, but which may not have been independently verified, and no guarantees, representations or warranties are made as to its accuracy, completeness or suitability for any purpose. Any opinion or estimate expressed in this publication is our current opinion as of the date of this publication and is subject to change without notice. The value of investments and any income from them may go down as well as up and capital values will therefore fluctuate. Changes in rates of exchange may have an adverse effect on the value, price or income of investments denominated in currencies other than Sterling. Past performance and the level and basis of taxation may change which could, in turn, affect investment advice. iFunds, its employees, or a connected company may trade in the securities referred to herein. This material is not intended as an offer or solicitation for the purchase or sale of any security or any other action, without first seeking advice as to the suitability of it for your needs. The employees and Directors of RJIS, or the Directors of iFunds Ltd. may have positions in any securities referred to herein.