Annual Report and Financial Statements 2012

06 | BUSINESS REVIEW| This is F&C

Our objective is simple: to create value by delivering first quartile performance in everything our clients expect from us.

Equities – our fundamental research, bottom-up stock selection and conviction portfolios produce a range of equity solutions for accessing global, European and emerging equity markets.

Fixed Income – our teams deliver a range of products across the fixed income spectrum, including sovereign and emerging market debt, investment grade and high-yield corporate bonds and convertibles.

Property – our property teams provide access to commercial property from direct bricks and mortar to listed real-estate securities.

Responsible investments

We seek to deliver strong investment performance through active management. However, as a shareholder representative, we seek to engage with the companies in which we invest, aiming to enhance and protect long-term shareholder value. Our approach is to have constructive dialogue with companies. We cast votes on shareholder resolutions globally, and disclose this to our clients on our website.

Key risks (see page 10)

In addition to the “normal” risks facing the business relating to the market, interest rates and foreign currency, the Board has identified the following as the key risks facing the business:

• Effective execution of strategy • Uncertain economic outlook •

Investment performance

• Loss of key employees • Breach of client or portfolio limits • Regulation • Loss of key clients • Reliance on third parties

• Business continuity and information technology

• Counterparty credit exposure

Assets Under Management by Client Category as at 31 December

3 2 4 5

2011 £100.1bn

1 3 4 5 2

2012 £95.2bn

1

2011 2012 £bn £bn

1 Strategic Partners 2

3 4 Retail 5 Wholesale

Third Party Institutional Investment Trusts

63.7 58.5 23.3 24.4 6.0 5.0 1.3

5.6 4.9 2.6

2012 Key Awards

1 2

Fixed Interest Equities

3 Property 4

Liquidity 5 Alternative Investments

Assets Under Management by Asset Class as at 31 December

3 2 4 5

2011 £100.1bn

1 3 4 5

2

2012 £95.2bn

1

2011 2012 £bn £bn

59.2 56.3 25.5 25.7 7.5 4.5 1.2

7.9 5.8 1.7

LIPPER FUND AWARDS 2012 AUSTRIA

LIPPER FUND AWARDS 2012 GERMANY

LIPPER FUND AWARDS 2012 EUROPE

LIPPER FUND AWARDS 2012 SPAIN

LIPPER FUND AWARDS 2012 FRANCE

LIPPER FUND AWARDS 2012 UNITED KINGDOM

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