1. Danny Burton Head of Dealing

2. 2 Threadneedle – Global Presence Source: Threadneedle as at August 2009 Offices Swindon Brisbane Hong Kong Singapore London Copenhagen Paris Madrid Milan Frankfurt Amsterdam Vienna Zurich Geneva

3. 3 Threadneedle - who we are Focus: Threadneedle’s only business is asset management Over US$85 billion in assets under management* Employing 550 full time staff members, over 120 of whom are investment professionals* Global: Our business is global, serving a wide range of institutional, wholesale and private investors Global coverage spanning US, Europe, Asia and Middle East Local offices in 12 countries High Alpha: We are a high alpha manager with capabilities across a wide range of asset classes 69% of our funds are in the top 2 quartiles over 1 year^ 88% of our funds are in the top 2 quartiles over 3 years^ Financial Strength: We enjoy the support of a strong and well-capitalised parent Ameriprise Financial Inc. has an ‘A’ debt rating from S&P *As at 31 st July 2009 ^Source: Morningstar, 31 July 2009

4. 4 Dealing desk structure  Team of six dealers  Two dedicated UK equity dealers  Two dedicated European dealers  Two International Dealers  Desk coverage from 6am to 10pm  Contactable outside of office hours

5. 5 Threadneedle  The team are responsible for an average of 7,000 transactions per month  We work closely with the portfolio managers to translate their investment ideas into trading strategies. - We do not assume an order is generated in response to a prevailing market price  Each order is assessed and will be traded individually, as a program, in an algorithm, on a crossing network or within various dark pools  The preferred large trade option is always to match liquidity with one of our approved brokers on a full, execution only or CSA commission basis

6. 6 We need scalable trading solutions  With ever increasing dealing volumes and continued market volatility the desk needs ways to manage low touch orders. The solutions need to allow the dealers to concentrate on the difficult orders that require more management  Program trading allows the low touch management of multiple orders  Algorithms provide a low touch solution with various levels of control  Crossing networks allow low impact trading opportunities with prior knowledge of potential to trade  Dark pools allow low impact crossing opportunities without any guarantee of trading  All give the dealer the ability to trade at lower commission rates

7. 7 Current split of low touch orders Threadneedle dealers currently trade around 45% of all orders using a low touch, low commission method  Program trading is 22% of total trades  Algorithms are 19%  Crossing networks 3%  Dark pools 1%  Dark pools will be utilised by program trading desks and most algorithms will source liquidity within the pools too.  Therefore the amount of Threadneedle business traded in a dark pools will be much greater. We estimate it could be as high as 35 – 40% of all low touch orders.

8. 8 When we use a dark pool  Want to trade in an illiquid stock and there are no adverts  Want to trade in a stock with many indications of interest but do not want to alert the market of our intentions  Want to cross stock while working an order in the market  Want to trade at a lower commission rate  We only trade through broker dark pool algorithms - need to be sure to tap all pools - smart order routing is essential - anti gaming technology

9. 9 The negatives – our observations The problems we encounter with dark pools are:  No certainty of execution  Prefer not sharing liquidity  No idea what size of order we are facing  Opportunity missed to search for liquidity or to trade  Not always convinced it is totally dark  Can detract from taking a market view  Unexecuted trades need closer management - price levels, market volume, natural business and the dealer may not want to leave a balance  Unable to give the portfolio manager any indication of the potential to trade again  The other side trade their balance to suit their cross

10. 10 Our conclusion  We believe that dark pools do have a space in our trading process  We do not think they will ever get to take enough market share to confuse price referencing  Without smart order routing we would choose one dark pool  We still see value in traditional trading methods where we retain the ability to source liquidity for Threadneedle funds alone  We are confident that our brokers show discretion with our orders and we retain the leverage to resolve any issues