To start with State UK Business Overview

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To begin with State UK Business Review. July 2003. Motivation. Organization history Ebb and flow position Vital drivers Center systems Reference section: Venture approach. Organization history. Pioneer First State UK Legacy of Frontier Life UK Built up in 1998 - gained Community Speculation Mgt

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In the first place State UK Business Overview July 2003

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Agenda Company history Current position Strategic drivers Core techniques Appendix: Investment approach

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Company history Colonial First State UK Legacy of Colonial Life UK Established in 1998 - obtained Co-operation Investment Mgt Mar 1999 - offered first outside reserve go in May 1999 – joined speculation groups Investment/business administration detachment At SICO securing: £6.0bn FUM 45 staff (ex ventures) Poor outer resources, profile and execution Strong life organization joins

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Company history Stewart Ivory & Co Management beginnings from 1873 (SAINTS) Quasi-association needing capital Diverse business: Private customers Listed trusts UK annuity supports Small retail nearness US institutional records At SICO procurement: £3.0 bn FUM 110 staff Poor outer resources, profile and execution Lack of venture over the business

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Current position Focused business and venture substance Funds under administration £5.3B (May 03) 180 staff, 59 venture staff Single item range Strengthened speculation group, and enhancing speculation execution Investment in frameworks, brand and dispersion Increasing brand mindfulness Robust appropriation improvement Strong resource stream in a troublesome domain

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First State UK FUM breakdown May 03 Client Type: Product Type: Colonial First State Investments Group £ 34.9bn* First State Investments (UK) £ 5.3bn Global Equity Assets £ 1.9bn As at Mar 2003 All figures as at 30 May 2003 aside from Group figure which is as at 31 Mar 2003.

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Fund evaluations As at 30 May 2003

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Brand : Awareness of Competitors (Total) % Yes Source : Continental Research, Ashes investigate 2003

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Strong resource stream in a troublesome situation

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Strategic drivers Advent of impulse Shift from "adjusted" to "expert" orders Growing interest for "worldwide" approach Asset administration for Group substances

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1. Approach of impulse The UK £27 bn "investment funds hole" (source:ABI Sept '02) No buyer take-up (question/understanding) Failure of "Partner" Poor measures of retail intermediation Scheme deficiencies Move from DB to DC France & Germany Proportionately comparable reserve funds crevices Growing word related annuity area Same statistic profiles.

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2. Move from adjusted to pro orders Single chief, resource allocator display unsuccessful Development/aftereffects of expert houses Role of benefit advisors "Center" and "satellite" approach Loss of orders from customary administrators: Schroders – lost 40% of adjusted orders in '02 Merrill Lynch – lost 25% of adjusted commands in '02

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3. Developing interest for worldwide approach

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3. Developing interest for worldwide approach Views of the worldwide counseling firms Fewer local enhancement openings: Technology Communications Cross-outskirt speculation Continued opening of business sectors Increased logical concentrate on worldwide enterprises Lack of reliable outcomes in resource designation

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4. Speculation mgt for Group elements One focus of brilliance: Global values Global settled pay Consistency of approach Leverage framework Economies of scale Future road of development for Investment and Insurance Services (IIS)

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"Neighborhood" use opportunity Expected improvement of intermediation Growth in customer mindfulness Growth in stages Alignment of retail and institutional markets Poor nearby principles of business administration Restrictions of legacy items and frameworks Proven plan of action, refined for UK/Europe.

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Core techniques 1. Drive skillet European dissemination Low cost of incremental business streams Solid edges Improved market availability Relative simplicity of circulation

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Core systems Focus on institutional & mezzanine appropriation Leverage worldwide expert suggestions Low cost of incremental business Limited registry needs Solid edges First State operational quality

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Core procedures Develop institutional conveyance in the US GEM advertise US$3.7bn, Global market $25bn (2002) Quality of our key assets Growing interest for worldwide value methodologies Solid edges Babson obtaining Leverage worldwide advisor proposals

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Core methodologies Focused assembling Strong support of prime assets/groups Build aptitudes over medium term Investment condition draws in ability

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Summary Four key drivers: impulse; authority stores; worldwide approach; Group. Upper hands: business administration; Group; legacy; worldwide; utilization of innovation. Hearty business structure Growing business sector acknowledgment Key development open door for IIS

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Appendix: Investment Philosophy EPS GROWTH drives long haul share costs QUALITY decides the manageability of EPS development VALUATION is immeasurably critical. Everything has a cost

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Equity Investment Team Global Teams Global Sector Analysts Regional Teams Chief Investment Officer Global Asset Management Stuart Paul Global/International Equities David Leary Andrew Dalrymple Tom Mermagen Alistair Staddon Nicole Mardell Trent Koch Technology &Communications Graham Hay Nigel Masding Asia Pacific Angus Tulloch Alistair Thompson Susie Rippingall David Gait Vijay Tohani Scott McNab Health & Biotechnology Dr Joe Anderson Oliver Trefgarne Lorenza Castellon Continental European John Ewart Jimmy Burns Equity Dealing Ian Firth Jeremy Campbell Stephen Petersen Matthew McKeith Financial Services Rob Grant Vincent Houtteville Global Emerging Markets Angus Tulloch Alan Nesbitt Charles Heenan Susie Rippingall Alistair Thompson David Gait Vijay Tohani Millar Mathieson Glen Finegan Scott McNab North American Susan O'Brien Julian Bishop Consumer Products Neil Abbott Lynne Braddick Investment Operations Shaun Forster Michael Summers Resources David Whitten Dr Joanne Warner Dr Chris Baker Todd Warren United Kingdom Derek Lygo Dr Paul Jourdan Adam White Mikhail Zverev As at 30 th June 2003

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Head of Global Fixed Interest Kevin Colglazier Head of Global Credit Malcolm White Senior Portfolio Manager - Global Steven Murphy Head of UK Fixed Interest John Creet Portfolio Manager Cash Murray Collis Sydney Credit Team Staff: 8 Hong Kong Credit Team Staff: 4 Dealer Stuart Doyle Global Fixed Interest Team

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FS Global Growth Fund Performance since origin to 30/05/03 Source: Reuters Hindsight, offer to offer, net pay reinvested, in £ sterling