Why are you here?

2. Why are you here? We want to give you a reason to go and talk to your clients and to be rewarded for doing so.

3. Background to a need for a DFM • Extremely volatile/unpredictable markets since 2001 • Dreadful market conditions in 2008 • Stock markets below levels last seen ten years ago • Near collapse of World economic system • Illiquidity, fund closures, gates or suspensions • Clients questioning their investment returns • FSA acting as a people’s champion, rather than a regulator • Retail Distribution Review • Tightening of FSA/Network compliance on investment advice • Networks and IFA’s wishing to de-risk their business • Quantitative easing, new territory for financial advisers • Wealth Managers planning to enter top-end IFA market

4. The perceived downside of DFM’s • Tend to be long only • Overweight in mainstream investments, even in difficult market conditions • Overly exposed to equities – even a balanced client will hold as much as 80% in UK and International stocks • Guilty of churning holdings to increase dealing charge income • Bias towards in-house funds • They have an adverse affect on the strength of client relationship • They undermine the positioning of the IFA as the financial ‘brain’ • They offer little or no access to alternative or esoteric investments • They are not worth the additional cost • They can resemble passive index trackers at times • They have unloaded their own ‘toxic’ holdings onto their clients in the past

5. Why was Niche developed? • Existing IFA clients specifically requested it because they wanted: • Access to a Discretionary Fund Manager (DFM) – NOT a wealth manager • The DFM to be responsible for the client risk profile • The DFM to undertake the necessary due diligence, both now and in the future • Asset allocation to be actively managed • The DFM to be responsible for asset allocation and to blend specialist fund managers in their field • The DFM to be responsible for the rebalancing of the client portfolio in line with, either the original client risk profile or a subsequent risk mandate • The client relationship to remain firmly with the IFA

6. The solution • Rigorous research and due diligence of existing and potential funds • Asset allocation is actively managed • An extensive investment portfolio is designed using the risk profile mandate completed by each client • Access to a wide range of global investment opportunities via specialist fund managers, expert in their field • We monitor the individual underlying fund performance • The portfolio will be rebalanced. • The client relationship remains yours

7. Behind the scenes - security Custodian: Close International Custody Services Limited (“Close”) Close provides full custodial services and secure banking securities for all assets within Niche. Legal Advisors: Carey Olsen Carey Olsen provide legal advice on the set-up and operation of Niche, in line with the legal requirements of the GFSC. Fund Administrators: Legis Fund Services Limited (“Legis”) Legis provides full fund administrative services, ensuring compliance with all GFSC regulations and is fully licensed by the GFSC. Auditors: PKF (Guernsey) Limited (“PKF”) PKF serves as the independent auditor for Niche. All outsourced professional international companies with strong reputations and integrity.

8. The decision makers Investment Manager: Argyll Investment Services Limited • Licensed and regulated by the Guernsey Financial Services Commission • Proven track record in the investment arena • An independent organisation • Enviable reputation as a DFM and Trustee Manager • Objective decision making regarding asset allocation and choice of fund managers • Highly sensitive to risk and risk management • Highly supportive of both the IFA and their respective clients

9. Why is Niche different? • Client portfolios can include alternative investments (diversified) and those that specifically exclude them (traditional) • The client makes these decisions via the risk profile questionnaire • The Investment Manager fully embraces the plethora of fund strategies available in the market place and could not be described as long only • The Investment Manager makes independent decisions about asset allocations and individual managers skills and risk management • Unconflicting use of funds • You are Niche’s client. The DFM will be as proactive with your client as you wish us to be • The vast majority of funds will be accessed at institutional rates • Funds are specifically chosen to add growth, not additional cost • Niche is a DFM managing client money – not a global investment bank (size is not always a good thing!)

10. Asset Allocation The results of the risk profile questionnaire are fed into the Niche risk profile software and a detailed proposal is produced. This comprises of four core asset class components, each one accessing expert managers in the following: • Core equity • Core fixed interest • Core alternative • Core property The construction of the four core components, plus a cash holding, establishes the building blocks for the portfolios. Percentage weightings are purely defined by the answers provided on the risk assessment questionnaire.

11. The Investment Portfolios Asset allocation is the science of adjusting exposure to different asset classes to produce a risk profile that matches the investors particular circumstances. Niche’s range of seven investment models will cover the majority of clients current and future investment needs. The example shown on the next page is the Balanced Diversified Portfolio, which has exposure to over 25 individual funds. Furthermore, the actual positions held within each fund can contain up to 150 individual securities ensuring diversification. Defensive Diversified Defensive Traditional Balanced Diversified Balanced Traditional Aggressive Diversified Aggressive Traditional Alternatives

12. The Balanced Diversified Portfolio Example The most appropriate model for many of our clients, the Balanced Diversified model, has exposure to over 25 individual funds (the holdings within the equity can contain up to 150 individual securities) ensuring diversification. • Niche makes a distinction between those portfolios that includes alternative investments (Diversified) and those that specifically exclude them (Traditional). • A client indicating an interest in alternative investments will enjoy access to assets such as; • Student accommodation • Life settlements • Fine wine • Traded endowments • Commodities • Hedge and currency funds • Alternative investments are designed to offer low volatility with little or no correlation to bond or equity markets Cash 5% Fixed Income 20% Equities 35% Alternatives 30% Property 10% The portfolio above is an illustration of the diversification offered by the Balanced Diversified Portfolio. It is not indicative of the positions that the fund would hold on an ongoing basis, as these positions will change in line with future investment management decisions.

13. Performance History Argyll Equity & Alternative Strategy allocation back tested performance

14. Performance History Argyll Equity allocation back tested performance

15. Why is Niche the solution? • Risk profiling: • Due diligence of funds: • Asset allocation: • Ongoing fund performance monitoring: • Rebalancing: • Business relationship: undertaken by you with your client – using the automated Niche Risk Profiling System undertaken by the Niche Investment Manager undertaken by the Niche Investment Manager undertaken by the Niche Investment Manager undertaken by the Niche Investment Manager remains with you and your client

16. How to Invest in Niche Once the risk profile questionnaire is completed, Argyll will produce a proposal, which confirms the most suitable model for the client. Following the client’s approval of the proposal, the application process is straightforward for client and advisor alike. • Key Features: • Available directly, via offshore bonds, platforms, wrappers • Access via SIPPs and SSASs • Monthly dealing • Available in GBP, USD, EUR • Access to alternative investments where appropriate

17. In Summary Why use the Niche DFM? • De-risks network/your business • Compliance/RDR • Income stream • Strong performance history • More time for you to do what you are good at • Huge diversity of investment choice • Simplicity • Competitive costs • Alternative fund access • Ring-fenced management of your clients • No VAT charged on Service charges

18. Any questions? We believe that we have the right solution for the right environment at the right time. Is there anything else that you would require from a DFM that Niche does not offer?

19. Who should you, the IFA, talk to? The right client profile for a DFM • Clients with larger portfolios • Portfolios that are time consuming • Monies already invested in Offshore Bonds, SIPPS/SSAS' and platforms • Existing DFM Clients, where achange of Manager is due • Clients that are  wealthy enough to become litigious • Clients you would like to reduce exposure to unregulated or single asset funds

20. Disclaimer For further information please review the Supplemental Scheme Particulars at www.nichefundmanagement.com Past performance is no guarantee of future performance. The value of investments in the Fund can go down as well as increase and may be affected by changes in rates of exchange. Investors may not get back the entire amount originally invested.