Time for change Product Development & Management 29 November 2012

PDM team  Process – instilling rigour to ensure ideas are critiqued and are robust  Innovation – working with the business to foster idea generation  Working with Capital Raising teams to develop products investors want to buy  Investment lead product development process Kerry Baronet Director: Product Development & Management Mabel Chui Product Manager Jessica Hermann Product Manager Clear process & rigorous governance to ensure ownership, accountability and effective delivery

Our objectives PDM Work with business to understand market Alignment with business strategy Cognisance of tax & regulation Commercial, strategic, long- term

The past YearFund 2004M&G Property Fund (GPUT) 2005M&G Property Portfolio (APUT) 2006M&G European Property Fund (MEP) 2006Asia Property Fund (APF) 2007M&G Secured Property Income Fund (SPIF) 2008PRUPIM Vietnam Property Fund (PVPF) Global Financial Crisis Property crisis New funds & closings at an all time low

And the future  A huge amount of progress is being made  New business infrastructure is being developed  Creating an operating and fund platform that will set a precedent for other launches Prospectus drafted awaiting submission with CSSF Appointment of Property Manager Price of seed portfolio agreed Structure in place Q M&G UK Residential Property Fund Seeding relief granted following 6 months of consultation with HMRC. Investor consultations very positive PPL Investment Committee sign off expected December 2012 Launch planned March 2013 M&G UK Property Fund We need to be rigorous in our plans ensuring what we build is scalable and robust

Product development takes time…  Operating in a landscape of increasingly complex tax and regulation  AIFMD  FATCA  Solvency II  Increased tax complexity dealing with real estate assets  No seeding relief  Trying to find a method of best fit however its not a one size fits all asset class

Picking up the Pace  PRUPIM is a business full of opportunity but with a number of challenges to overcome  The business is ripe for change and a significant shift to “up the pace” of growth  Huge opportunities outside of the UK – this is a Global business  Deploying resource and prioritisation is important