dc- the new reality

Address 1

Address 2

Town/ City, Postcode

t *** **** ****

f *** **** ****

www.bluefingroup.co.uk

Employer duties Ready for change (?)

Robin Hames

Agenda

• Why are we here?

• What‘s changing?

• What is NEST?

• What‘s this got to do with investments?

Step back to 1999

A gloomy

forecast...

Pensions were in crisis

• Millions of employees not saving for retirement

• Thousands of employers not offering a pension scheme

• Pensions deemed to be:

• too complicated

• too expensive

The Stakeholder solution

• All employers had to offer

access to a stakeholder

pension scheme, unless

• they had fewer than 5 staff

• they already offered a

pension scheme

• A charging cap was applied

• A brighter future

Back to 2011

Oh dear...

Private sector pensions

Source: Standard Life October

2011

Type of scheme Size of funds

Occupational DB £800bn

Occupational DC £400bn

Contract DC £200bn

£1.4trn

But...

86% of UK employers have no

scheme or a shell stakeholder

2 out of 3 UK employees are making

no provision for a pension

Source: The Pensions Regulator January 2011

And...

0

25

50

75

100

125

0

25

50

75

100

125 GRR Low GRR Low

Pensions at a Glance 2011: Retirement-income Systems in OECD and G20 Countries - © OECD

2011

Relatively low ‗gross replacement rates‘ for average earners

GRR Average

The new solution

To do list The 10 new duties

1 2 3 4 5

Automatically enrol

‗eligible

jobholders‘

If they opt in, enrol

‗other jobholders‘

not automatically

enrolled

Every three years

automatically re-

enrol any ‗eligible

jobholders‘ who

opt out

Communicate any

waiting periods

(which can be up to

three months)

Pay employer

contributions for all

‗jobholders‘ who

are members

6 7 8 9 10

Any other UK

‗workers‘ who asks

must be placed in a

scheme

Inform providers

(including details of

any opt outs)

Register with the

Pensions

Regulator

Communicate to all

jobholders and

employees

Retain records for

at least six years

(except opt-out

forms for four

years)

To don‘t list!

1 take action to remove ‗jobholders‘ from membership (unless leaving employment, moving to another qualifying scheme or member has opted out)

2 indicate or imply employment is dependant upon opting out when recruiting

3 induce members to opt out

4 subject ‗workers‘ to detrimental treatment if they want to opt in

5 provide false or misleading information to the Pension Regulator

6 pay employer contributions for all ‗jobholders‘ who opt

7 wilfully fail to comply with the new duties

In detail...

Regulatory guidance

To summarise

• 7 new administration duties

• 2 new core communication duties – but with

several subsets

• A new demand – money

• A new requirement – select your automatic

enrolment scheme(s)

Automatic enrolment schemes

Occupational

DB

Occupational

DC

Contract DC

(GPPs)

NEST

• A new ‗master trust‘

pension scheme

• A public service mandate

• Aimed at low to moderate

earners

• With certain restrictions

(to be reviewed in 2017)

DC investment governance and the Regulator

The Investment Governance Group (IGG) published its ―Principles for investment

governance of work-based DC pension schemes‖ in late 2010.

―Pension schemes are long-term undertakings

and require robust and resilient governance

structures. Clarity of roles in decision-making is

central to delivering good outcomes for pension

scheme members and this will be even more

important with auto-enrolment.‖ IGG chair Bill Galvin

Pensions Act 2008 Chapter 30

17 Automatic enrolment schemes

(1) A pension scheme is an automatic enrolment scheme in relation to a

jobholder (J) if—

(a) it is a qualifying scheme in relation to J,

(b) it satisfies the conditions in subsection (2), and

(c) it satisfies any further conditions prescribed.

(2) The conditions mentioned in subsection (1)(b) are that—

(a) no provision of the scheme prevents the employer from making

arrangements prescribed by regulations under section 3(2), 5(2) or

7(4) for J to become an active member of the scheme;

(b) no provision of the scheme requires J to express a choice in

relation to any matter, or to provide any information, in order to

remain an active member.

Good DC governance

Stage I: Governance structure

• Principle 1: Clear Roles and Responsibilities

• Principle 2: Effective Decision Making

Stage II: Investment choices and monitoring

• Principle 3: Appropriate Investment Options

• Principle 4: Appropriate Default Strategy

• Principle 5: Effective Performance Assessment

Stage III: Communications

• Principle 6: Clear & Relevant Communications

So why are we here?

• Previous reforms failed

• Automatic enrolment is on its way

• DC will dominate

• Default funds will be mandatory

• Investment governance will come under

the microscope

Questions?

NEST’s Investment Approach

The New Reality Seminar

Mark Fawcett, Chief Investment Officer

2011

© NEST Corporation 2011. We are entitled to bring any legal action necessary to protect our intellectual property rights. These slides do not

constitute financial or other professional advice. You must not, or allow another party to, alter these slides in any way. Copying or

distributing this material is allowed only with the permission of NEST Corporation.

What can NEST offer?




A new market of people new to saving

There are around 19.7 million people employed in the private sector

with 14-15 million eligible for automatic enrolment

9-10 million without a

qualifying pension scheme

8 million people within NEST’s intended target market




Understanding our target market

We are committed to designing our activities around the needs

of all of our future employers and members

Conducting

surveys

External

research

Research

panels




How NEST can be used

• Offered to all workers Sole scheme

• To sit alongside existing scheme already in place for a different group of workers

For a particular group of workers

• Where the existing scheme has a waiting period

Entry level scheme

• Where minimum contributions are made for all workers, using another scheme to ‘top up’ contributions

Base scheme




NEST’s Investment

Proposition




NEST’s investment proposition

• A DC proposition with high standards of

investment governance

• Accompany our members through all the phases

of the pension/savings journey

• Recognising and meeting the very specific needs

of our membership over the long term

• In-house expertise supported by the best-in-class

service providers

• Tailor-made operational and monitoring platform

Member

Focused

Intelligent

Investing




Evidence based solutions




Risk people

need to take

Risk people

can take

Members’ risk profile

Risk people

want to take

Mind the gap




A fund range to meet our members’ needs

NEST 2037

Retirement

Fund

NEST

Pre-retirement

Fund

NEST Lower

Growth Fund NEST Sharia

Fund

NEST Ethical

Fund

NEST Higher

Risk Fund NEST 2032

Retirement

Fund

NEST 2027

Retirement

Fund

NEST 2022

Retirement

Fund

NEST 2017

Retirement

Fund

NEST 2012

Retirement

Fund

http://www.google.co.uk/imgres?imgurl=http://www.hlb.com.my/pfs/promo/insave/images/safe.jpg&imgrefurl=http://www.hlb.com.my/pfs/promo/insave/invsafe.html&usg=__qN5z6CcIuTvTM_IksoOr_L3K048=&h=411&w=280&sz=17&hl=en&start=2&zoom=1&itbs=1&tbnid=VXXOFhbjb9rjWM:&tbnh=125&tbnw=85&prev=/images?q=low+risk+investment+fund&hl=en&safe=active&sa=N&gbv=2&ndsp=20&biw=1260&bih=839&tbs=isch:1

http://www.google.co.uk/imgres?imgurl=http://www.hlb.com.my/pfs/promo/insave/images/safe.jpg&imgrefurl=http://www.hlb.com.my/pfs/promo/insave/invsafe.html&usg=__qN5z6CcIuTvTM_IksoOr_L3K048=&h=411&w=280&sz=17&hl=en&start=2&zoom=1&itbs=1&tbnid=VXXOFhbjb9rjWM:&tbnh=125&tbnw=85&prev=/images?q=low+risk+investment+fund&hl=en&safe=active&sa=N&gbv=2&ndsp=20&biw=1260&bih=839&tbs=isch:1




The three phases of saving

for NEST Retirement Date Funds

Age

Maximum Minimum

Ris

k p

rofi

le

Reference glide path

22 27 32 37 42 47 52 57 62

Foundation Growth Consolidation




NEST Retirement Date Fund objectives

Foundation

• Unaccustomed to savings

• Loss aversion - high

• Risk capacity and risk

need - low

• Target CPI

Growth

• Risk appetite, and risk

capacity - medium

• Risk need - higher

• Sensitive to extreme

shocks

• Maximise performance

• Target CPI + 3%

Consolidation

• Preserve a retirement

income

• Match annuity prices

• Convert to a suitable

annuity option

• Cannot take severe

losses late in the

journey

target investment returns in excess of inflation after all

charges over the long term




Lifecycle of 2058 Retirement Fund

22 27 32 37 42 47 52 57 62

Ris

k p

rofi

le

Age

Return Seeking

Composite Fund

Income Seeking

Composite Fund

Annuity Tracking

Composite Fund

2058




The importance of diversified portfolios

Global Equities

Liquidity

Inflation Linked Debt

Dev Sovereign Debt

Investment Grade Debt

EM Sovereign Debt

High Yield Debt

Small Cap Equities

EM Equities

Property




Communicating our

investment approach to members

• Straightforward and clear

language

• Fund choice made easy but

not pushed

• Hierarchical approach to

presenting information




Designed for the target market

Clear

communication Online

Travels with

the member

Tailored

investment

approach

Help with

retirement

income Low charges

Always focused on our members




Questions?

1 Aldgate

London EC3N 1LP

t 0207 709 4500

f 0207 709 4501

www.bluefingroup.co.uk

The Right Default Making Better Decisions – Trustee/Employer

2 November 2011

Agenda

• Default fund governance framework

• Suitability and Objectives

• Improving ‗Lifestyle‘

Default Fund Governance Framework Investment Governance Group

• Ensure default strategy is

appropriate

• Allow appropriate time

• Define strategic objectives

(risk and return)

• Base strategy on robust and

detailed member data

• Competitive fees

Consider the needs of the broad

membership

• risk and return (net of fees/costs)

• its position in relation to all other

investment options

• members‘ expected term to

retirement

• members‘ attitude to risk

• the expected format and structure

of their retirement benefits

Default Fund Governance Framework

All qualifying schemes, for the purposes of automatic enrolment, must have a

default fund.

The guidance details specific obligations in relation to the governance, design,

review and communication of the default fund.

• Identify and delegate key decisions and functions in writing.

• Designed around the expected scheme membership and their needs.

• Produce high level objectives.

• Consider fund suitability along with affordability and risk management.

• Automatic communication to members covering the fund objective, risk profile

and charges.

• Full review every three years and on the occurrence of various significant

events.

DWP Guidance (May 2011)

Bluefin Views

• Generic member segmentation / risk analysis can be flawed. However actual

member behaviour should be monitored and factored into default fund

design.

• Glidepath design should reflect the likely desired outcome for the majority of

members.

• Diversification of assets add value in reducing risks.

• Passive management provides the most cost effective access to asset

classes.

• Dynamic asset allocation can add value in reducing risk.

• Matching assets should reflect the underlying income requirements / annuity

prices.

• Hedging / loss prevention relative to the final benefits should be implemented

where this is cost effective.

• Higher / lower risk strategies should be offered to complement the default

fund.

Long Term Objectives

• Required income determined by contributions

and investment returns at an appropriate level

of risk

• What range of outcomes is reasonable

• Ensure appropriate risk measure

• Return requirements – change from market

indices to ‗inflation plus X%‘

• Security of benefits vs. cost of security

• Getting the bond portfolio right

• Can forward interest and inflation swaps

provide better hedging?

• Capital protection strategies using

derivatives

• Introduction of other risks

(e.g. counterparty risk)

Dynamic Asset

Allocation

Lower Returns Higher

Conventional

Asset Allocation

Fewer

Large

Gains

Fewer

Large

LossesFre

qu

en

cy

Dynamic Asset

Allocation

Lower Returns Higher

Conventional

Asset Allocation

Fewer

Large

Gains

Fewer

Large

LossesFre

qu

en

cy

Improved

outcomes

Improving Lifestyle Strategic glidepath design

• Reducing risk during the growth phase through diversification

• Introducing matching assets earlier

• Matching assets - considering the type of annuity to be purchased

• Low cost passive with active asset allocation to diversifiers

• More Regular rebalancing

• Use of investment platforms to allow effective switching between managers

Improving Lifestyle Lifestyle Challenges

• Administration complexity and operational risks

• Structure limitations – legal structures, platform requirements

• Communicating more complex designs

• Effecting changes

• No tactical glidepath shifts

• End point sensitive (late retirement, income drawdown)

Target Date Funds Improved Flexibility – Reduced Risks

• A series of funds with different target dates

• Age appropriate strategic and dynamic asset allocations

• Simple to change - low operational risks / costs

• Can include a more sophisticated strategy

• Not constrained by member administration

• Diversification of manager risk

• Easy to communicate

• Can include gradual de-risking running to retirement and beyond

• Can include fully open-architecture

2010 – 2012 TDF

2013 – 2015 TDF

2016 -2018 TDF

Etc

…

Regulatory Statement

• Bluefin is a trading name of Bluefin Corporate Consulting Limited. Registered Office: 5

Old Broad Street London EC2N 1AD Registered in England No: 1860722. Bluefin

Corporate Consulting Limited is separately authorised and regulated by the Financial

Services Authority.

• The information contained within this presentation does not constitute independent financial advice.

• Investors should always seek independent financial advice before committing themselves.

• The information contained in this presentation is based on our understanding of current UK law and taxation, which may change in future.

Questions?

Technology to support

benefit platforms Des Matthewman. Head of Technology

Bluefin Corporate Consulting

Apps, Comms and

Audience of One

The role that can be played by technology in

the design and implementation of targeted

comms

2 November 2011

Speaking from experience

Providing benefits

online since 2001

Used by more than

180 companies

and over 150,000

employees

EMPLOYER

EMPLOYEE TRUSTEE

Orbit Online

Benefits

Sent nearly 3

million emails

Just under 1 billion

of funds on platform

Over 50k SMS

fund alerts

UK Pensions Rising to the challenge

UK

Pensions

Succeeding

in a wider

context

Engaging

with

Employees

Meeting the

challenge of

DC

Managing

Auto

Enrolment

Succeeding in a wider context

An EVP is an extension of the brand

What an employee

receives from their

employer in return for the

performance of their job

Employee

Value

Proposition

=

Typical Brand values

• Constantly innovating

• Exceeding expectations

• Freedom to shape the future

• Refreshing

• Dynamic

• In touch

• Respect for the individual

• Passion for clients

Engaging with employees

• Engagement is dependent on effective communication

• Effective communication successfully combines:

• Employee engagement is, therefore, dependent

on accurate, accessible data being interpreted,

formulated and distributed in a multitude of ways

Message Channel Context Relevance

Engaging with employees Brand

orbitbenefits.com .co.uk

Engaging with employees Multi-device compatibility and the rise of mobile

Meeting the challenge of DC

Supporting employees with:

Funding Investing Retiring

Meeting the challenge of DC Funding

Default

strategy

Recomm-

ended

funds

Wider fund

universe

Alternative

strategy

1

Alternative

strategy

2

Alternative

strategy

…

EMPLOYEE

1 2 3 4

Meeting the challenge of DC Investment

Meeting the challenge of DC Investment tools

Fund Comparison Portfolio X-ray

Portfolio Risk/Return

Meeting the challenge of DC Retirement

• State Default Retirement Age

abolished 6 April 2011

• Number of 65 year olds in Britain will

increase by c150,000 between 2011

& 2012

• 65 year olds can expect to live for

another 18-20 years

• Every one retiring from a DC plan

can consider an open market option

– but over 2/3rds don‘t shop around

2011 2012

Number of people turning 65:

658,000 806,000

We know people need to engage on the subject of

retirement planning earlier and need to know the facts

Meeting the challenge of DC Retirement tools

Managing auto-enrolment

Design

Multiple schemes / NEST?

Employee segmentation?

Administration

Auto-enrolment

Opt-ins and Opt-outs

Re-enrolment

Communication

Employee notifications

Scheme / process information

Reporting

TPR Registration &Compliance

Auditable Records (6 years)

Reliant on data being used efficiently and

effectively within and across systems

UK Pensions Rising to the challenge

Technology

& comms

enable you

to…

position

pensions in

the wider

context

interact with

employees as

individuals

help employees

make informed

decisions

comply with

employer

duties (cost)

effectively

Regulatory Statement

• Bluefin is a trading name of Bluefin Corporate Consulting Limited. Registered Office: 5 Old Broad Street London EC2N 1AD. Registered in England No: 1860772.

• Bluefin Corporate Consulting Limited is authorised and regulated by the Financial Services Authority.

• The information contained within this presentation does not constitute independent financial advice.

• The information contained in this presentation is based on our understanding of current law and taxation.

• HMRC policy, practice, and legislation may change in the future.

Questions?

Flight Plan for Individuals: Achieving Better Outcomes



• DC is no more than a 1 person DB scheme

• DB investment strategy can be applied to DC schemes

• Use other DB tools to help manage DC schemes?

• Closure to new members and future accrual has led to

focus on the End Game

• DC members have an End Game – retirement income

• DB uses Flight Plans to manage towards the End Game

DC is just DB for individuals?


2011 2013 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033

GB

P M

illio

ns

Liabilities Path Assets Path

What is a Flight Plan?

Flight Plan “levers”

1

2 3

Liability Basis

Contributions &

Required Return Time Horizon

Target:

Full funding

Start


Personal Flight Plan

Example Flight Plan: Personal objectives and “levers”

54 55 56 57 58 59 60 61 62 63 64 65

GB

P T

ho

usan

ds

Age

Target Income Minimum Income Requirement

1

2

Annuity rate /

lump sum

Contributions &

Required Return

Time Horizon

You are

here

Target income

Minimum

income

3


Early

Retirement

De-risk

54 55 56 57 58 59 60 61 62 63 64 65

GB

P T

ho

usan

ds

Age


Scenario 1: Outperformance

1

Target higher

retirement income

a

R

b

Target

retirement age

Early

retirement

date

Example Flight Plan Target

income Your Options are: R

If you

are here b a


54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70

GB

P T

ho

usan

ds

Age


Deferred

retirement

age

Re-risk to target

minimum income

Scenario 2: Underperformance

c If you

are here

Your Options are:

Consider deferring

retirement

c

D

Target

retirement

age

Example Flight Plan

2

Target

income

Minimum

income D


54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70

GB

P T

ho

usan

ds

Age


Re-risk to aim for target

income

Scenario 3: Moderate Performance

Your Options are:

De-risk to secure

minimum income

d

e

Target

retirement age

Example Flight Plan

e

Maintain risk and target

income but defer

retirement

D

D

Deferred

retirement

age

If you

are here

Target

income

Minimum

income

3

d


Default Funds – Different Risk/Return Profiles

Lower Risk Profile:

• Low growth

• Stable income

Higher Risk Profile:

• High growth

• High volatility

Equities Diversified Growth Corporate Bonds Gilts

• Adjusting risk and return


Default Funds – Even more options? A step too far

• Beyond default


• Flight Plans have an application to DC

• ...but are they too complex?

• For most members, probably

• Used for monitoring if not asset allocation

• FSA/tPR issues, particularly with regard to ‗advice‘

• If not for individual members then for TDFs

Summary


Disclaimer For professional investors only. Not suitable for private customers.

The information herein was obtained from various sources. We do not guarantee every aspect of its accuracy. The information is for your private information and is for discussion purposes only. A

variety of market factors and assumptions may affect this analysis, and this analysis does not reflect all possible loss scenarios. There is no certainty that the parameters and assumptions used in

this analysis can be duplicated with actual trades. Any historical exchange rates, interest rates or other reference rates or prices which appear above are not necessarily indicative of future

exchange rates, interest rates, or other reference rates or prices. Neither the information, recommendations or opinions expressed herein constitutes an offer to buy or sell any securities, futures,

options, or investment products on your behalf. Unless otherwise stated, any pricing information in this message is indicative only, is subject to change and is not an offer to transact. Where

relevant, the price quoted is exclusive of tax and delivery costs. Any reference to the terms of executed transactions should be treated as preliminary and subject to further due diligence .

Please note, the accurate calculation of the liability profile used as the basis for implementing any capital markets transactions is the sole responsibility of the Trustees' actuarial advisors. Redington

Ltd will estimate the liabilities if required but will not be held responsible for any loss or damage howsoever sustained as a result of inaccuracies in that estimation. Additionally, the client recognizes

that Redington Ltd does not owe any party a duty of care in this respect.

Redington Ltd are investment consultants regulated by the Financial Services Authority. We do not advise on all implications of the transactions described herein. This information is for

discussion purposes and prior to undertaking any trade, you should also discuss with your professional tax, accounting and / or other relevant advisers how such particular trade(s) affect you. All

analysis (whether in respect of tax, accounting, law or of any other nature), should be treated as illustrative only and not relied upon as accurate.

Redington Limited (reg no 6660006) is a company authorised and regulated by the Financial Services Authority and registered in England and Wales. Registered office: 13-15 Mallow Street London

EC1Y 8RD

Ian Maybury

Managing Director Senior Actuary, Co-Head of ALM and Investment Strategy

Direct Line: +44 (0) 20 3326

7129

Telephone: +44 (0) 20 7250

3331

Redington

13-15 Mallow Street

London EC1Y 8RD

Ian Maybury

Managing Director | Senior Actuary, Co-Head ALM

& Investment Strategy

[email protected]

www.redington.co.uk

Generation Y -

Generation Y Thinking differently

Thinking differently

Generation Y - Who is Generation Y

Generation Y -

X Y

Who is Generation Y

Generation Y -

Boomer Gen X Gen Y Gen Z

X,Y and Z

• Now aged 49-64

• Idealistic, career-

oriented, consumerist

• Promoted „young‟

and propped

• Peak income earning

1991-2005

• Succession planning,

advisory boards, non-

exec directors

• Now aged 34-49

• Realists, cyncial

• Held back by “old fart

log-jam”

• Peak income earning

2006-2021

• Office sandwich gen,

resentful of Boomer

focus on Y‘s

• Must deal with baby

boomers in retirement

• Now aged 19-34

• By 2025 will make up

largest population of

workforce and fill

senior management

roles

•Experiential, ethicists,

uncommitted to

career/relationships

• Helicopter kids;

KIPPERS

• Technology savvy;

global thinking

• Inherit Boomer

wealth

• Aged 19 or less

• Will enter workforce

from 2020

• First generation to be

taught ICT from age 5

Generation Y - A life in detail

Changing life expectancy creates the concept of a ‗working life‘ followed by retirement

Generation Y -

Source HM revenue and Customs Statistics, Survey of Personal Incomes 2004/5; KPMG

Accumulation of wealth

Generation Y - Population trends

Generation Y - Moving education to the classroom

• In England and Wales financial planning is

not compulsory but features in Key Stage 3&4

(11 - 16yrs)

• In Oct ‗09 Scotland announced that every child

will get money management lessons -

however, there are currently no plans to make

this mandatory

• Japanese children taught about pensions

and saving for retirement from an early age

(11 - 18) by local municipality officials

• Sessions not limited to schoolchildren

• All nationals between 20 - 59 are required

to enrol in the national pension plan

43%

Have never received

any form of financial

education

Generation Y -

“Saving is something that is at the

bottom of my list of important things...

I only save money if something is left”

Male - Frankfurt

Attitude to finance and savings

Generation Y -

“I want to be able to do things now.

I don‟t want to wait until I‟m fifty

and have a million dollars. By then I

wont want to do these things and I

will have missed out”

Male

Attitude to finance and savings

Generation Y - Attitude to finance and savings

“I went to the bank and wanted to

invest money, and the guy just spoke

financial mumble - jumble to me”

Female

Generation Y - Attitude to finance and savings

“Rent, travelling, dining out, having fun

and if something is left, you can save it”

Male

Generation Y -

Should I start

my DC scheme

now?

Legacy?

Generation Y -

Disclaimer For professional investors only. Not suitable for private customers.

The information herein was obtained from various sources. We do not guarantee every aspect of its accuracy. The information is for your private information and is for discussion purposes only. A

variety of market factors and assumptions may affect this analysis, and this analysis does not reflect all possible loss scenarios. There is no certainty that the parameters and assumptions used in

this analysis can be duplicated with actual trades. Any historical exchange rates, interest rates or other reference rates or prices which appear above are not necessarily indicative of future

exchange rates, interest rates, or other reference rates or prices. Neither the information, recommendations or opinions expressed herein constitutes an offer to buy or sell any securities, futures,

options, or investment products on your behalf. Unless otherwise stated, any pricing information in this message is indicative only, is subject to change and is not an offer to transact. Where

relevant, the price quoted is exclusive of tax and delivery costs. Any reference to the terms of executed transactions should be treated as preliminary and subject to further due diligence .

Please note, the accurate calculation of the liability profile used as the basis for implementing any capital markets transactions is the sole responsibility of the Trustees' actuarial advisors. Redington

Ltd will estimate the liabilities if required but will not be held responsible for any loss or damage howsoever sustained as a result of inaccuracies in that estimation. Additionally, the client recognizes

that Redington Ltd does not owe any party a duty of care in this respect.

Redington Ltd are investment consultants regulated by the Financial Services Authority. We do not advise on all implications of the transactions described herein. This information is for

discussion purposes and prior to undertaking any trade, you should also discuss with your professional tax, accounting and / or other relevant advisers how such particular trade(s) affect you. All

analysis (whether in respect of tax, accounting, law or of any other nature), should be treated as illustrative only and not relied upon as accurate.

Redington Limited (reg no 6660006) is a company authorised and regulated by the Financial Services Authority and registered in England and Wales. Registered office: 13-15 Mallow Street London

EC1Y 8RD

Robert Gardner Founder & Co - CEO http://twitter.com/#!/robertjgardner

Direct Line: +44 (0) 20 7250

3416

Telephone: +44 (0) 20 7250

3331

Redington

13-15 Mallow Street

London EC1Y 8RD

Robert Gardner

Founder & Co-CEO

[email protected]

www.redington.co.uk

http://twitter.com/

Gen X or Gen Y?

dc- the new reality

Economy & Finance