1. Specialist Portfolio Management – Fixed Income Presentation by Heinz Schmid to Association of Financial Mutuals Heinz Schmid Head of Fixed Income & Senior Investment Manager 18 th October 2010

2. BNP Paribas Wealth Management Comparative Returns over 10 years of Equities, Corporate bonds, UK Government Gilts

3. BNP Paribas Wealth Management Index-Linked Gilts 2047 – Price Movements

4. BNP Paribas Wealth Management Different strategies for different conditions Interest rates  Investment grade corporate bondsGilts Inflation Strong economy Interest rates  Gilts Low investment grade credit Deflation Recession Best Performance Worst Performance

5. BNP Paribas Wealth Management Specimen Investment Matrix Asset TypeNeutralMinimumMaximum Fixed Interest Investment6150100 Under 2 year bonds and deposits 6 3 10 Duration9.56.512.5 Credit Quality Supra Nationals and Gilts:No Restrictions Corporate AAA:Each one no more than 5% of total investment. Maximum duration 9 years. Corporate AA:Each one no more than 5% of fixed interest exposure. Maximum duration 9 years. Corporate A:Each one no more than 5% of fixed interest exposure. Maximum duration 7 years. Corporate BBB:Each one no more than 2.5% of fixed interest exposure. Maximum duration 6 years. Sub Investment Grade:No more than 1% of fixed income exposure. Maximum duration 5 years.

6. BNP Paribas Wealth Management - Summary BNP Paribas Wealth Management has scale and experience in active fund management. We offer proactive and tailored fund management, and adopt a structured and disciplined approach in formulating our independent investment policy and advice. At BNP Paribas Private Investment Management we manage segregated portfolios for a range of clients including: Friendly Societies; insurance companies; pension funds; corporate clients; charities; trustees and private clients. We would be delighted to provide an independent review of your existing portfolio and discuss your requirements to preserve and build wealth for the benefit of your Members. BNP Paribas Wealth Management is an Associate Member of the Association of Financial Mutuals Contact: Heinz Schmid BNP Paribas Wealth Management Tel: +44 (0)20 7369 4869 Fax: +44 (0)20 7369 4821 heinz.schmid@uk.bnpparibas.com www.uk-wealthmanagement.bnpparibas.com BNP Paribas Private Investment Management Limited is a Member of the London Stock Exchange and authorised and regulated by the Financial Services Authority. Registered in England and Wales at Companies House Cardiff: Registration Number: 2123174 with registered office at 5 Aldermanbury Square, London, EC2V 7BP. FSA Reference No: 140948. The value of investments and the income from them varies and you may realise less than the sum invested.