June 2016

Introducing iGuard

Introducing iGuard iGuard is a unique investment proposition that offers our clients the following benefits: A range of investment solutions designed to meet your investment objectives and risk requirements. Each solution provides you with active management diversification across different asset classes and markets. You have access to the skills of carefully selected investment managers. An experienced investment committee select and review these investment solutions and managers on your behalf. We provide you with regular and relevant communications about your investments. We negotiate clear and competitive fees on your behalf.

Why is diversification so important? Diversification and the average investor (US) Mar. 2009 S&P 500 portfolio Loses over $50,000 Oct. 2007 S&P 500 peak Nov. 2009 40/60 portfolio recovers Oct 2010 60/40 portfolio Mar. 2012 S&P 500

Why is diversification so important? Diversification and the average investor (UK) Mar. 2009 S&P 500 portfolio Loses over $50,000 Oct. 2007 S&P 500 peak Nov. 2009 40/60 portfolio recovers Oct 2010 60/40 portfolio Mar. 2012 S&P 500

Why is active management essential? Markets are increasingly volatile Number of 3% Daily Moves in S&P500 (by Decade) Source:  Lipper, Smartim.  Annualised return from the IA sectors over 10 years to 31 March 2016.  All figures are total return in sterling and are net of fees including the GWM Investment Management fee of 1%

Selecting the right managers makes a big difference Source:  Lipper, Smartim.  Annualised return from the IA sectors over 10 years to 31 March 2016.  All figures are total return in sterling and are net of fees including the GWM Investment Management fee of 1%

We all make irrational decisions and that impacts returns Equity Fixed Income Annualized Returns Index returns are for illustrative purposes only and do not represent actual fund performance. Index returns do not reflect any management fees, transaction costs or expenses. Indices are unmanaged and one cannot invest directly in an index. Source: Dalbar, March 2013. Returns calculated in USD with an end date of December 31, 2012. The equity index is represented by S&P 500 Index, the fixed income index by Barclays Aggregate Bond Index. Average U.S. equity investor and average U.S. fixed income investor results are calculated using data supplied by the Investment Company Institute. Investor returns are represented by the change in total mutual fund assets after excluding sales, redemption, and exchanges. This method of calculation captures realized and unrealized capital gains, dividends, interest, trading costs, sales charges, fees, expenses and any other costs. Source: SEI, Smartim

GWM build an investment approach that can meet your goals Concentrated Stock Portfolios Concentrated Stock Portfolios STOCKS EVALUATED INDEPENDENTLY Efficient Portfolio THEORY OF PORTFOLIO SELECTION (MARKOWITZ) Strategic Asset Allocation (BRINSON, BEEBOWER, SINGER) Style Diversified Portfolios MULTI-ASSET Goals-Based Investing INVESTORS ARE NOT “RATIONAL” (KAHNEMAN, TVERSKY) Evolution of Wealth Management Value-Add Delivered to Client 1900s - 1960s 1960s - 1980s 1980s - 1990s Today Source: SEI, Smartim

How is the GWM Investment approach different? Traditional Wealth Management GWM Approach Objective Seek performance in line with specific markets Seeks to invest according to financial objectives and time horizons Measure of success Investment success measured against market benchmarks Investment success measured against progress towards goals Goal attainment Focus of client conversation Return / standard deviation Explain recent market volatility Provide meaningful advice on progresstowards goals Look beyond market volatility Takes your emotions into account Addresses your loss aversion

GWM Process GWM Investment Committee GWM Risk Assessment SELECT MONITOR REVIEW REPORT GWM Risk Assessment iGuard Investment Solutions RISK MANAGED PORTFOLIOS MULTI ASSET FUNDS CAUTIOUS CAUTIOUS+ BALANCED + BALANCED DEFENSIVE AGGRESSIVE GROWTH AGGRESSIVE GROWTH +

Our starting point – your attitude and capacity for risk The iGuard Portfolios are all mapped to GWM’s client risk profiles

iGuard Who is involved in managing and safeguarding your money? ADVISER SERVICE THE INVESTMENT MANAGER ADMINISTRATION & CUSTODY GWM Investment Committee iGUARD RISK-MGD PORTFOLIOS Praemium Northern Trust Guardian Wealth Management SMARTFUNDS

The iGuard Range of Investment solutions GWM Risk Profile Defensive Cautious Cautious + Balanced Balanced + Aggressive Growth Aggressive Growth + GWM Active Portfolios  Smartfund Smartfund Protected The Smartfund 80% Protected range is mapped to a risk profile using its asset allocation. The addition of the Protection Component serves to reduce volatility of the fund and the drawdowns that a client could expect to see. This extra protection means that each Smartfund could be appropriate for clients with risk profiles of up to three categories lower. Or alternatively you could select the blend of funds we have suggested in the risk map.

iGuard Investment Solutions How do our costs compare? Type of Investment Solutions Typical Multi Asset Funds iGuard risk managed portfolios Smartfunds GWM Fee 1.00% 0% Investment Fee n/a 0.25% Underlying Investments 1.85% 0.80%* 1.95% Platform Fee 0.00% 0.48% Total Investment cost 2.85% 2.53%

Who is involved in the iGuard Portfolios and funds? Praemium International is regulated by the Jersey Financial Services Commission. Praemium delegate custody to Northern Trust who are responsible for the safe keeping your assets, along with $6.2 trillion of total assets under custody. Northern trust are regulated by PRA and the FCA Praemium client assets are segregated and ring fenced from other Northern Trust clients should Northern Trust fail. YOUR ADMINSTRATOR & CUSTODIAN (PRAEMIUM & NORTHERN TRUST) Smartim and Morgan Stanley FundLogic, regulated by the Financial Conduct Authority & Central Bank of Ireland respectively. They manage your portfolios and select the most suitable investments under mandate agreed with GWM. By using collectives and/or mutual funds your investment will be spread across different regulated investment funds from different investment companies who ‘ring fence’ the assets of the fund protecting you if the company should fail. YOUR ADVISER Regulated in Switzerland, UAE, Hong Kong and UK. We do not handle your money directly Assets held by the custodian of selected platform, pension or investment bond We select the most suitable investment managers; currently Smartim & Morgan Stanley FundLogic.

Who are Praemium? Praemium are responsible for administration of your portfolio and outsource the custody of your portfolio to Northern Trust, who are responsible for custody of over $6.2 trillion of assets One of the fastest growing discretionary platforms in the international market, Praemium supports over 700 corporate firms, managing and administering over 300,000 investor accounts and £40 billion of assets. Founded in Australia in 2001 and listed on the ASX, Praemium operates internationally with offices in Australia, UK, Jersey, Hong Kong, China and Armenia. Praemium’s clients are firms like GWM that provide financial advice to investors.

of the iGuard active portfolios and Smartfunds. About Smartim Smartim are responsible for the fund selection and portfolio consultation of the iGuard active portfolios and Smartfunds. Smartim are the wholly owned investment management company of the Praemium Group. The team are responsible for the management of over £250 million of assets in a wide range range of actively managed risk-graded model portfolios and an innovative range of multi-asset funds.

Introducing the Smartim Investment Managers Smartim is the wholly owned investment arm of Praemium responsible for managing over £250m in assets. The investment team responsible for the day-to-day management of your portfolio has over 40 years of combined experience in the investment management market and a proven track record in designing and managing discretionary portfolios. Ari Towli has over 19 years of experience in the area of multi asset, multi manager investing. He has worked at Singer & Friedlander, Quilter & Co., Rothschilds and most recently Gartmore and North Investment Partners where he was responsible for fund selection and the management of North’s multi asset portfolios and funds. Whilst at Gartmore, Ari developed the risk tools that were critical to the construction and management of the Gartmore multi manager funds and was instrumental in the design and development of Gartmore’s Multi Manager Absolute Return Fund and North’s range of risk-graded multi- asset portfolios. ARI TOWLI Investment Manager Nick Stanhope has over 13 years of experience in the investment management industry and specialises in the area of multi asset, multi manager investing. Nick has worked for Abbey, Legal & General, Chiswell Associates, Cazenove and most recently at North Investment Partners, where he spent over six years at North as a senior fund manager responsible for fund selection and the management of all North’s multi asset funds and their range of risk-graded portfolios. Nick STANHOPE Investment Manager

iGuard risk managed portfolios – Investment Process IDENTIFIES MANAGERS WHO CAN OUTPERFORM A MARKET OR PEER GROUP 1 2 3 MAXIMISES SHORT TO MEDIUM TERM OPPORTUNITES CREATES LONG-TERM DIRECTION FUND SELECTION TACTICAL ASSET ALLOCATION STRATEGIC ASSET ALLOCATION

The approach to portfolio construction 01 Range of 7 risk graded portfolios 02 Strategic asset allocation creates efficient portfolios using multiple asset classes 03 Tactical asset allocation overlay maximises short/medium-term opportunities 04 Detailed risk & style analysis of funds – looking “under the bonnet” 05 Strict portfolio construction limits ensure diversification and control risk 06 Detailed attribution analysis demonstrates the value added 07 Constant monitoring of portfolio risk at all levels of the investment process

How we work with our clients Advise We work with you to select or create a portfolios that is tailored to your goals and is suitable given your personal situation and attitude and capacity for risk. GWM Advises Invest Your client portfolios are invested in one or more portfolios using an appropriate administration and custody platform You can view portfolios 24/7 on-line Our Managers Invest GWM supports Our investment committee will actively monitor the ongoing suitability of our investment managers and portfolios We will ensure the ongoing suitability of your investments against your goals personal situation, and attitude and capacity for risk We will provide regular updates and commentaries to keep you informed of changes to your portfolios and information about the markets Service

More about the iGuard Risk Managed Portfolios

iGuard Active Portfolios – delivering better risk adjusted returns Volatility (%) 6.2 5.3 7.0 8.2 Source: Smartim. Lipper. All figures are total return in Sterling.

Changes to asset allocation during 2015

MSCI World TR GBP% Return 2015 June Reduced US Increased Europe & Asia Chinese Q3 GDP slowest for six years Trans Pacific trade agreement approved US inflation negative UK inflation turns negative, first time since 1960 April Reduced US Increased Asia & Japan August Reduce GEM Increase Japan & Asia Chinese GDP slowest in 24 years November Reduce Japan, US, Asia Increase Cash Greece agrees new bailout ECB announces €60bn QE ECB disappoints ECB QE begins Chinese currency devaluation Chinese ‘A’ share market peaks Eurozone price Inflation negative ECB lends Greece €3.3bn European economic Indicators turn positive Chinese renminbi added to IMF’s basket of reserve currencies Greeks reject bailout VW emissions scandal US interest rates rise 0.25% first time since 2006 China cuts rates for 3rd time Brent crude oil falls beneath $40 first time since 2009 Shanghai ‘A’ shares experience biggest 1 day decline since 2007 Greece defaults US IR’s unchanged Paris terrorist attack Swiss Bank Drops Euro Cap WTI Crude oil falls below $50 US Q2 GDP revised up September Increase Europe, Japan, Asia Reduce Absolute Return, Cash Brent crude falls to $42.5 China cuts IR’s & bank reserve requirements

More about the Smartfund Protected Funds

An strategy to deliver a smoother investment journey Offers the returns of multi-asset risk-graded portfolios managed by Smartim, with the benefit of capital protection of 80% of the highest ever fund value achieved, provided by Morgan Stanley. Smartfund Protected Growth Strategy Smartfund Protected Balanced Strategy Growth Portfolio 80% Protected Growth Fund Balanced Portfolio 80% Protected Balanced Fund Performance 7.4% 6.9% 6.4% Volatility 15.7% 8.6% 9.9% 6.5% Max peak to trough drawdown -54.5% -20.00% -40.2% -18.9% Source: Smartim. All returns are in sterling and include reinvestment of dividends. The table shows historical simulation of the 80% Protected portfolio vs the respective unprotected version over 10 years to 31 July 2015. These performance figures reflect what a client might have expected to have received gross which is before the deduction of any fund management charges or adviser fees. The annual management charge of the fund is 1.95%. These figures include the impact of the monthly performance cap and cost of protection. Past performance is not an indicator of future results.

Who is involved in the fund? Morgan Stanley (PROTECTION PROVIDER & INVESTMENT MANAGER) One of the largest financial institutions A+ credit rating US$2tr AUM Smartim (SUB INVESTMENT MANAGER) FCA-authorised subsidiary of Praemium US$360m AUM

About Morgan Stanley Employees Offices Countries Present Founded in 1935, Morgan Stanley is one of the largest financial institutions in the world. Morgan Stanley has earned a worldwide reputation for excellence in financial advice and market execution. With offices in more than 43 countries, the people of Morgan Stanley are dedicated to providing clients the finest thinking, products and services to help them achieve even their most challenging goals. Morgan Stanley is a global financial services firm that maintains significant market positions in each of its business segments — Institutional Securities, Wealth Management and Investment Management. The Company, through its subsidiaries and affiliates, provides its products and services to a large and diversified group of clients and customers, including corporations, governments, financial institutions and individuals. Key Facts as of July 2015 Employees Offices Countries Present 2014 Net Revenues 55,802 Over 1,300 43 US$34.27 billion

How does Smartfund 80% Protected work? Performance engine is a multi-asset investment portfolio actively managed by Smartim. Investment Portfolio Protection contract linked to the investment portfolio ensures a minimum protection level of 80% of the max fund price. Delivered by Morgan Stanley. Protection Component Protected Fund NAV

01 02 03 04 05 What outcomes will this strategy deliver you? Smoother investment journey. 02 Peace of mind in volatile markets. 03 Daily traded providing access to capital. 04 Certainty of income when in drawdown. 05 Security of a UCITS IV structure.

For illustration purposes only. How will the fund perform in different market cycles? Exp: 99% Day 1 Day 2 Day 3 Day 4 Day 5 120 (20%) 80 (-33%) 120 (50%) 159 (33%) 100 Exp: 96% Exp: 98% 120 (20%) 97 (-19%) 119 (22%) 157 (33%) 100 Exp: 14% Exp: 98% 96 126 80 Investment Portfolio Protected Fund NAV Protection Level For illustration purposes only.

Smartfund 80% Protected Fund details Description Type of fund UCITS IV Investment manager Fundlogic SAS, a member of the Morgan Stanley group Sub-investment manager Smart Investment Management Protection provider Morgan Stanley & Co. International plc, London Protection level 80% of the highest NAV reached Calculation and protection of the highest value Daily Share class currencies USD, EUR, GBP Dealing frequency Annual management charge 1.95%

Performance of Smartfund 80% Protected Growth so far (4th September 2015 – 31st March 2016) Live to date Since launch Return Volatility Peak/Trough Drawdown Protected Growth 2.4% 8.7% -5.9% MSCI World 3.6% 15.7% -14.5% 6 month Return Volatility Peak/Trough Drawdown Protected Growth 0.6% 8.9% -5.9% MSCI World 0.9% 15.2% -14.5% 3 month Return Volatility Peak/Trough Drawdown Protected Growth 2.4% 8.3% -2.1% MSCI World 2.7% 17.2% -8.8% Source: Smartim. All returns are in sterling and include reinvestment of dividends. The table shows historical simulation of the 80% Protected portfolio vs the respective unprotected version over 10 years to 31 July 2015. These performance figures reflect what a client might have expected to have received gross which is before the deduction of any fund management charges or adviser fees. The annual management charge of the fund is 1.95%. These figures include the impact of the monthly performance cap and cost of protection. Past performance is not an indicator of future results.

Performance of Smartfund 80% Protected Balanced so far (4th September 2015 – 31st March 2016) Live to date Since launch Return Volatility Peak/Trough Drawdown Protected Balanced 1.9% 6.3% -4.5% MSCI World 2.3% 15.7% -14.5% 6 month Return Volatility Peak/Trough Drawdown Protected Balanced 1.1% 6.5% -4.5% MSCI World 0.9% 15.2% -14.5% 3 month Return Volatility Peak/Trough Drawdown Protected Balanced 1.7% 6.3% -1.9% MSCI World 2.7% 17.2% -8.8% Source: Smartim. All returns are in sterling and include reinvestment of dividends. The table shows historical simulation of the 80% Protected portfolio vs the respective unprotected version over 10 years to 31 July 2015. These performance figures reflect what a client might have expected to have received gross which is before the deduction of any fund management charges or adviser fees. The annual management charge of the fund is 1.95%. These figures include the impact of the monthly performance cap and cost of protection. Past performance is not an indicator of future results.

What does using iGuard mean for you?

iGuard FUM - £107m and rising fast! Smartfund Protected iGuard Portfolios Source: SEI, Smartim

iGuard Top ten advisers by iGuard FUM - £107m and rising fast! Source: SEI, Smartim

The benefits of following the iGuard approach Source: SEI, Smartim

Warren Macal - 2015 Source: SEI, Smartim

Ethan Parkhouse & Matt Howard - 2015 Source: SEI, Smartim

Neil Glaze - 2015 Source: SEI, Smartim

£10 million of legacy assets Source: SEI, Smartim

Important information This document is a marketing document for the Smartfund 80% Protected range of funds and is solely intended for the use of the IFA. Please note that this document should not to be forwarded to potential investors. Potential investors cannot have reliance upon the content of this material and should not treat the contents of this document as advice relating to legal, taxation, investment or any other matters. This information is provided for education purposes only and is not intended to provide legal or investment advice. The Smartfund 80% Protected Fund range will be sub funds of Fundlogic Alternatives plc, a UCITS fund which is based in Republic of Ireland. For use by professional financial advisers only. No other person should rely on, or act on any information in this document when making an investment decision. This document has not been approved for use with investors or other clients.