Barclays eo nerve presentation 4-20-2012

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EO Nerve 2012 Breakout

EO Nerve 2012 Breakout

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  • 1. Wealth S tructuring for E ntrepreneurs E O 2012 NE RVE C onference A tlanta, GA Chr opherJ ist ohnson Direct , W lh A isor or eat dv yW lh a Inv mentM na eat nd est a gementPPT0 180 - - 12 - 0 - 41820
  • 2. Barclays : A Leading Global Financ ial S ervices Organization* The G ateway to B arclays for Private C lients : Wealth and Inves tment W l a InvestmentM na eath nd a gement Management  Sel gr ofexper ect oup ienced inv mentr esent t es est epr aiv  Dedicaed t supporingpr ae inv or needs: t o t iv t est s’ M r ta $ 5 o e hn 2 0  E ch inv mentr esent t e del er ourca bil ies in a a est epr aiv iv s pa it b l nin il io  Inv mentma gement est na  Banking cust omized w yt ea cl a o ch ient c ie t s e s l n a st1  Tustser ices  Br a oker ge r v Op r t n inm r e a io s oe  Cr &L edit ending ta hn 2 c u t ie 0 o nr s  Bacl ys l cyoftust st bil ya effect e r ma gement r a ega r , a it nd iv isk na  Gobal r l ly ecognized Cor ae a Inv mentBa por t nd est nking • 3 - rol UKba 20yea d nk  T r nked equitya fixed income inst ut lr r 3 op a nd it iona eseach • A l der in IPOs, debtunder r ing, M , der aiv a mong ea s wit &A iv t es nd • A / a cr r t 2 + A3 edit aing 5 t a a oss a cl sses r ding cr sset a • E r ed w h $2.4tr l in cl a s4 nt ust it ilion ient sset • Did notneed governmentba - ilout Ref ences t “Bacla r t Bacla PL a it subsidiaies. er o r ys” efer o r ys C nd s r 1. A s a of12/ 1/ 11. USD figur der ed using excha r t on 12/ 1/ 11 of£1 G = $1.54 0 . 2. Sour Bl sset s 3 20 es iv nge ae 3 20 BP 48 ce: oomber S&P/ oodys r t a of0 1012. Raings ae ofBacl ys Ba PL beca it t l lent yfr w debtis issued. Bacl ys Pl is t paent g. M aing s 2/ / t r r a nk C use ’s he ega it om hich r a c he r compa fr w debtis notcur ent issued. 3 Ba on Institutional Inve stor’s 20 “AlA icaReseach T m” (E y)a “AlA icaF ny om hich r ly . sed 11 l- mer r ea quit nd l- mer ixed-Income Reseach T m” sur eys, w pol indust yr esent t es (See sl on Impora Discl es: A ads a r ea v hich l r epr aiv ide t nt osur w r nd Ra nkings formor det il A ads a r nkings r enced do notr t t inv menta isor pr s orser ices of ed byW lh a Inv mentM na e a s.) w r nd a efer elae o est dv y oduct v fer eat nd est a gement 4 Bacl ys Pl a s a of12/ 1/ 11. USD f es der ed a in f not 1 a e . 5. Pl se see t A . . r a c sset s 3 20 igur iv s oot e bov ea he ppendix for specif Ra ic nkings. * Ba on Bacla PL r t t a a s of$2.4t ill in a of12/ 1/ 11. See A sed r ys C epored ot l sset r ion s 3 20 ppendix fordet il a s. S ee important dis clos ures pag e at the back of this pres entation.PPT0 18 418 12 - 0 -0 - -20
  • 3. Wealth A dvis ory Offers Tailored A dvice  Ta ct Pl nning: Pr IPOorPr Sae ofaBusiness r nsa ion a e- e- l  E iv Opt a Compensaion Staegies xecut e ion nd t rt  Business Succession Pl nning a  W lh Ta (E ae a G Pl nning) eat r nsfer st t nd ift a  Phil nt opya Phil nt opy-el t T x Issues a hr nd a hr r aed a  Insur nce a  T Per lSide ofW lh he sona eat Neit Bacl ys norit empl her r a s oyees r s t x orl la ice. Pl se consultw h youra ender a ega dv ea it ccount nt t x a isor a orat neyf a concer yourpat a cir a T documentis forinf maion pur onl a it a , a dv , nd/ tor or dvice ning ricul r cumst nces. his or t poses y nd shoul notbe r r a a offert sellora asolicit t ofa offert buyinsur nce ort secur ies orot inst ument ment in it Neit Bacl ys norit a il t compa sel orsol insur nce. Y shoul consul w h d egaded s n o s aion n o a he it her r s ioned . her r a s ff iaed nies l icit a ou d t it yourlicensed insur nce a forfurherinfor t on insur nce pr s orser ices. a gent t maion a oduct vPPT0 18 418 12 - 0 -0 - -20
  • 4. Why Wealth S tructuring S olutions A re Relevant Now Onl 3 ofbusiness ow s ha asuccession pl n in pl ce a a y% ner d a a s Business succession pl nning is afunda a r son t a ment l ea o patoft br derest t pl n r heir oa ae a ** considertuststuct ing r r ur G en t curentl aion in pl ce, neal ¼ofindiv l iv he r egisl t a ry iduas T shoul ha e adiscussion w h aTustSpeciaist hey d v it r l ha incr sed gift pr ct t kids d ea ing a ices o ** r r funding atustw h t exempt a egading r it he ion mount 50 did notha e a irev bl tustin pl ce (70 wouta % v ny r oca e r a % / n Insur nce tust &chait bl tust ae effect e stuct es t a r s ra e r s r iv r ur o insur nce tust 90 woutachait bl tust** a r , % / ra e r ) minimize t impa oft x w e a he ct a hil ccompl ishing goas l A a “l t discussion shoul compl n sset ocaion” d ementan 27% ofindiv l ha nev discussed int gener t l iduas d er er aiona inv mental t discussion est locaion w lh ta w h t inv mentr esent t e** eat r nsfer it heir est epr aiv * Da at k nf o L d u y e e r hs u y o B r l y ( e l hIs h sB o h r V l m 1 )– Da aa o F b u r 2 1 b s du o a t a e r m e b r R s a c t d f r a c a s W a t n ig t r c u e o u e 4 t s f er ay 0 1 ae p n s r e o h n r d o U . HNW in iv u l w h$ .5 m inin e t b ea s t . u v y f u d e s f .S d id a s it 1 m + v sa l s es ** Da at k nf o aP o n M r e in It r a io a s u y o U T u t Da aa o F b u r 2 1 b s du o as r e o 4 0U . HNW t a e r m h e ix a k t g n e n t n l t d f r S r s – t s f e r a y 0 1 a e p n u v y f 5 .S in iv u l w h$ m + inin e t l a s t . S r e r s o d n sw r 5 % r t o m n: w m n a e a ea eo 6 , 8 % m r ie , 8 % w h d id a s it 3 m v s ib e s e s u v y e p n e t e e 0 a io f e o e , vr g g f 1 6 ar d 1 it c il r n h de.PPT0 18 418 12 - 0 -0 - -20
  • 5. Planning B efore the S ale or IPO of Your B us ines s  Ta ct ca mov quickl so setl t ba a d oft r nsa ions n e y te he sics hea ime  Seize discount now s  E ae pl nning = T x minimizaion st t a a t  Cr t a Inv menta T x Pl n, incl postl up seling staegies a l eae n est nd a a uding ock- l r t nd iquidit pl ns y aPPT0 18 418 12 - 0 -0 - -20
  • 6. Gift A s s ets at Today’s Lower Value (“ Life Planning” ) Non-taxable Trans fers How It Works Any transfe r of asse ts is taxab l unl ss it e e Marital Deduc tion fals within one of the se e xcl l usions Unl ed t x-fr t a s to U.S. cit spouse imit a ee r nsfer izen C haritable Deduc tion Unl imited t x- ee t a s to quaified chait a fr r nsfer l r ies; income t x deduct ma be l ed in cera situaions a ions y imit t in t YOUR Direct Payments for E duc ation / Healthc are A S S E TS Payments ma dir l to the pr iderforschool de ecty ov t ion orheat cae expenses ae notconsider ta bl gifts uit lh r r ed xa e A nnual E xclus ion for G ifts $13 0 perr ,0 0 ecipientperyea ($26,0 0w h spouse) r 0 it E s tate and G ift Tax E xc lus ions Per t a s dur l of$5 mill giftt x- ee a a deah of$5milion, r mits r nsfer ing ife ion a fr nd t t l educed byl ifetime gifts, est te ta fr a x- ee A ll Other Trans fers S ub j ct to fe d e ral transfe r tax (and e G eneration-S kipping Tax E xc lus ion whe re ap p l icab l , fe d e ral G S T tax. e C e rtain state s al asse ss a transfe r so Ta s t gr ndchil en a beyond ae subj t asecond, sepaa l eloft a t x. T e is a r nsfer o a dr nd r ect o r te ev r nsfer a her $5 milion excl fr this t x, at l usion om a lhough t gift he tax) oresta t x w lcontinue t a te a il o pply Neit Bacla int U.S. norit W lt a Inv mentM na her r ys he s ea h nd est a gementemployees in t U.S. r he endert x orlega a ice. Plea consultw h youra a l dv se it ccount nt t x a isor a orator fora ice a , a dv , nd/ t ney dv concer yourpat rcir a ning ricula cumst nces.PPT0 18 418 12 - 0 -0 - -20
  • 7. What You C an Do: Grantor Retained A nnuity Trus ts(G RA Ts ) V bl ta t x staegyfora a expect t significa l a ia e r nsfer a r t n sset ed o nty ppreciae t Litl orno giftt x w lbe due upon creaion ofG A te a il t RT - Betert per ma greaert v l t a red, forl te orno giftt x t he for nce, t he aue r nsfer itl a - Ifa fa s t a sset il o ppreciae, a giftt x pa w lbe w st t ny a id il a ed A ypa t gr nt “in kind” bya distibut from G A w h no income t x nnuit id o a or sset r ion R T it a T lyfunded w h asingl st posit oraporfol ofsecur ies ypical it e ock ion t io it Usual stuct forat m of2 t 5 yeas ly r ured er o r S tep 1: C ontribute asse ts t are hat e xpe ct d t app re ciat e o e Ga or r nt Beneficiaies r GA RT S tep 2: G R AT p ays an annuit b ack to y S tep 3: At t rm inat of G R AT, re m aind e r of asse ts pass t e ion o grant for t rm of trust or e be ne ficiarie s wit no ad d itional gift or e stat tax h e Neit Bacla int U.S. norit W lt a Inv mentM na her r ys he s ea h nd est a gementemployees in t U.S. r he endert x orlega a ice. Plea consultw h youra a l dv se it ccount nt t x a isor a orator fora ice a , a dv , nd/ t ney dv concer yourpat rcir a ning ricula cumst nces.
  • 8. How a G RA T C an Prove B eneficial - S ample  2- ea or5- ea GR T funded w h 1,0 0,0 0sha a $10persha ($10,0 0,0 0 Y r Y r A, it 0 0 res t re 0 0)  IR r t ofret n (7520r t of1.4 (forGR T cur l est bl S ae ur ae) % As renty a ished)  M xima possibl a ypa outt gr nt (“zeroing out a l e nnuit id o a or ”)  Pa s t t gr nt inv ed in porfol w h sa r t ofret n a G A a s yment o he a or est t io it me ae ur s R T sset 5-Year GRA T 2-Year GRA T S cenario 1 S cenario 2 S cenario 3 S cenario 4Grantor: 10% Growth 12% Growth 10% Growth 12% Growth NumberofShaes R ur r et ned 790,291 751,512 8 6,0 8 21 862,799 Scenaio Dola V l Y r2 r l r aue ea $10 ,8 9 ,720 4 $10 22,953 ,8 Scenaio Dola V l Y r5 r l r aue ea $12,727,709 $13 4 4 ,24 ,20B eneficiaries : NumberofShaes R ed r eceiv 20 9 9,70 24 ,4 8 88 113,979 13 1 7,20 Scenaio Dola V l Y r2 r l r aue ea $1,379,151 $1,721,047 Scenaio Dola V l Y r5 r l r aue ea $3,377,391 $4,379,213 N ote : P aym e nts to the grantor are inve ste d in a portfol that has the sam e rate of re turn as asse ts in the G R AT. io Scenaios ae forill r t e pur onl a do notr a ua per ma r r ust aiv poses y nd eflect ct l for nce.
  • 9. Trus ts C an Help to Pres erve Wealth for Generations  Asepaae l lent y, cr t byawiten a eementin w ow ship ofpr t is ta r fr one per (t gr nt )t r t ega it eaed r t gr hich ner opery r nsfered om son he a or o a her(t tust t hol on behafofat d per (t beneficiay) not he r ee) o d l hir son he r  Ga ordefines tustgoas, a s tust funds t tust a pa a giftt x r nt r l ppoint r ee, he r , nd ys ny a  Atust in a da w h t t ms oft tusta eement contol t inv menta distibut ofa s r ee, ccor nce it he er he r gr , r s he est nd r ion sset  Fexibl in Obj iv a Distibut Inv ment l e ect es nd r ions/ est s  E a ished dur yourl ime (atusta eement orupon deah (aw l st bl ing ifet r gr ) t il) A icaions ofaTustSt uct e ppl t r r ur Benefit ofaCor ae Tust s por t r ee  E ae a int gener t lw lh t a pla st t nd er aiona eat r nsfer nning  Offer aper ua &pr s pet l ofessiona solut fort ust l ion r eeship  Phil nt opic pl nning a hr a  E bles cont yofinv mentma gement na inuit est na  R ir et ementorlega pla cy nning  Pr ides obj iv ya apr forfa ymember ov ect it s oxy mil s  In a icipaion ofal nt t ife-cha ev (e.g. birh ofachild) nging ent t  Ca ma ge hea ya n na v dminist aiv bur r t e dens  W funct hen ioning a abusiness ow s ner  Offer asea coor t a execut ofser ices s mless dinaion nd ion v Neit Bacla int U.S. norit W lt a Inv mentM na her r ys he s ea h nd est a gementemployees in t U.S. r he endert x orlega a ice. Plea consultw h youra a l dv se it ccount nt t x a isor a orator fora ice a , a dv , nd/ t ney dv concer yourpat rcir a ning ricula cumst nces.PPT0 18 418 12 - 0 -0 - -20
  • 10. Philanthropic Planning Options Vehicles for G ranting Potential G ifting  M ximum cont olov chait ble gr nt a r er r a a s S trategy Private  Long-t m fa yinv ement er mil olv Foundation F actors to C ons ider C haritable  M na a gementresponsibilit y in Donating L ead Trus t  Desir t pr ide curentchait ble benefit e o ov r ra  M ximum t x deduct a a ion  Ret inlong-er economic a tm benefitforfamily  Ir ev ble t a r oca r nsfer  E se ofa a dministaion rt  T x-efficientw lt ta a ea h r nsfer  Immediae giftt chait t o ry Public  L contolov disbur ess r er sement s C harity Outright  Geaert x deduct it r t a ibil y Donor G ift  Geaert x deduct it r t a ibil y  Ret in curentincome int est a r er Donor  Geaerdegr ofcontol(compaed t publ r t ee r r o ic  L er economic benefitt chait ong-t m o ry A dvis ed Fund chait ov disbur r y) er sement s  T x defera onincome a ga a rl nd ins  Pat lt x deduct ria a ion C haritable Remainder Trus t  Geaert x deduct it r t a ibil y S upporting Organization  Dedicaiont aspecific chait t o ry Neit Bacla int U.S. norit W lt a Inv mentM na her r ys he s ea h nd est a gementemployees in t U.S. r he endert x orlega a ice. Plea consultw h youra a l dv se it ccount nt t x a isor a orat neyfora ice a , a dv , nd/ tor dv concer yourpat rcir a ning ricula cumst nces.PPT0 18 418 12 - 0 -0 - -20
  • 11. Important Dis clos ures – Products /S ervices A cces s ed Through Wealth and Inves tment Management “ B arc lays ” refers to any company in the B arclays PLC group of companies . Bacla offer w lh ma gementpr s a ser ices t it client t ough Bacla Ba PLC("BBPLC")a funct in t Unit St t t ough Bacla Ca a Inc. ("BCI"), a a t ofBBPL BCI is ar er br dea a inv ment r ys s eat na oduct nd v o s s hr r ys nk nd ions he ed aes hr r ys pit l n ffiliae C. egist ed oker ler nd est a iser r t byt U.S. Secur a E nge Commission, w offices a 20 Pak Aenue, NewY k, NewY k 10 M dv , egulaed he ities nd xcha ith t 0 r v or or 166. emberFINRAa SIPC. BBPLC, r er inE nd a Wles (no. 10 nd egist ed ngla nd a 26167), ha ar er office a 1 Chur l s egist ed t chil Pla London, E 5HP, Unit Kingdom, a is r aed byt F ncia Ser ices A hor y ce, 14 ed nd egul t he ina l v ut it . Bacla undera it U.S. secur ies a inv mentba business int na ofit w -ow subsidiayBacla s Ca a Inc. Bacl ys offer cor ae ba pr s a ser ices, a inv mentba pr s a ser ices out t r ys t kes s it nd est nking he me s holly ned r r y pit l ra s por t nking oduct nd v nd est nking oduct nd v side he U.S., t it client t ough Bacl ys Ba PLC. Bacla Ba PL is a hor a r aed byt UKF ncia Ser ices A hor a amemberoft L o s s hr r a nk r ys nk C ut ized nd egul t he ina l v ut ity nd he ondonSt E nge. Bacla Ba PL is r er inE a No. 10 ock xcha r ys nk C egist ed ngl nd 26167. Regist ed Office: er 1 Chur Pla London E 5HP. chill ce, 14 M t ge loa int U.S. ae offer byBacla Ba Dela ae (NM SID: 50 3 M orga ns he r ed r ys nk w r L 73 1), emberFDIC. E lHousingL . A morga loa ae subj t cr a pr t a ov l. Notalpr s ae a a ble ina st t orforalloa a s. qua ender ll t ge ns r ect o edit nd opery ppr a l oduct r v ila ll aes l n mount Ot r r ions a limit t a Bacl ys Ba Dela ae onlyor t morga loa w hint Unit St t ofA ica Bacla s Ba Dela ae a t or t morga loa forpr t a oa Ar t her est ict nd aions pply. r a nk w r iginaes t ge ns it he ed aes mer . r y nk w r ffiliaes iginae t ge ns operies br d. elaionship w h t W lt a it he ea h nd Inv mentM na est a gementdiv ofBacla does notha e t be est bl orma a t obt in t pr s orpr offer byBacl ys Ba Dela ae. ision r ys v o a ished int ined o a he oduct icing ed r a nk w r Cust Cr L ns ae ma byBacla Ba PLC, NewY k Br nch. Ba r tions r e tha t loa r iewa a ov lpr es t be independentof, a ca be impa ed by br a inv ment elaed mater orot business om edit oa r de r ys nk, or a nk egula equir t he n ev nd ppr a ov o nd nnot ct , oker ge/ est -r t t s her dealings. F on deposita Pr a Ba t ough the CDA Spr a ae eligible fordepositinsur nce byt FDIC, butae notcov ed byt Secur ies Inv orPr ect Cor aion(“SIPC”). Int ev t ta FDIC-insur inst ut fa fina lly, unds t ogr m nks hr R ogr m r a he r er he it est ot ion por t he ent ha n ed it ion ils ncia deposit a tha ba ae eligible forFDICinsur nce pr ect up t alimitof$250 0 (forindiv l, IRAa cera sel dir ed r ir s t t nk r a ot ion o ,0 0 idua nd t in f- ect et ementa ccount a up t alimitof$250 0 perj ow fora s hel j ybyt oormor indiv ls. s) nd o ,0 0 oint ner ccount d ointl w e idua Asignifica loss ofpr lcould r ifyourCDs ae sold pr tomaur y. T e is no secondaymaketforyourCDs issued t ough CDA nt incipa esult r ior t it her r r hr RS. W lt a Inv mentM na ea h nd est ioningt ough Bacla Ca a Inc. in t U.S), ha ar nged w h PNCBa NA(“PNC”)fort issua ofCheck wit pr ileges a V ®cads t it client W you use yourChecks orCads, you w l a gement(funct hr r ys pit l he s ra it nk, he nce r ing iv nd isa r o s s. hen r il be accessingt Aa a Ba nce in y a he v il ble la our ccountw h us. Y br a a it our oker ge ccountw h W lh a Inv mentM na it eat nd est a gementis notF insur DIC- ed. Inthe U.S., W lt a Inv mentM na ea h nd est a gementdeposit a a ble ca forpat t br a a s v ila sh ricipaing oker ge ccount int deposita s o ccount a ba int IND Net or E ch ba w r e up t $24 0forindiv l, IR a cera self- ect r ir s t nks he w k. a nk ill eceiv o 6,50 idua A nd t in dir ed et ement account a $4 ,0 0forj a s nd 93 0 oint ccount W a t ba int IND net or ha e been filled in t a ble a , W lt a Inv mentM na s. hen ll he nks he wk v he pplica mount ea h nd est a gementw pla excess funds inBacla Ba Dela ae, t excess ba w houtlimit T ill ce r ys nk w r he nk, it . hese excess funds w lnotbe F insur il DIC- ed. Bacla W lt Tust (U.S.), N.A (“BW”)is anaiona ba limit t fiduciaya iv ies, subj t r t a exa t byt Office oft Comptolleroft Curency(t “OCC”). BW is a indir w ow subsidiayofBacla r ys ea h r ees . T t l nk ed o r ct it ect o egulaion nd minaion he he r he r he T n ect, holly- ned r r ys Ba PL ("BBPL a a a iae ofBacl ys Ca a Inc. (“BCI”)a v r ot subsidiaies of, a ent a t w h, BBPLC. Bacl ys offer w lt ma gementpr s a ser ices t it client t ough BBPLCa funct in t Unit nk C. C”) nd n ffil t r a pit l nd aious her r nd ities ffiliaed it ra s ea h na oduct nd v o s s hr nd ions he ed St tes t ough BCI, a a t ofBBPL BCI is ar er br dea a inv menta isor r t byt U.S. Secur ies a E nge Commission, w h offices a 20 Pak Aenue, NewY k, NewY k 10 M a hr n ffiliae C. egist ed oker ler nd est dv , egulaed he it nd xcha it t 0 r v or or 166. emberF a SIPC. INRA nd Secur ies, mut lfunds a ot non-depositinv it ua nd her estment inyoura s ccountae subj t inv mentr includingpossibl loss ofpr la s inv ed, ae notsa ings a r ect o est isk, e incipa mount est r v ccount deposit orot obl t of, orguaa eed byBW, a ae not s, s her igaions r nt T nd r insur byt Feder lDepositInsur nce Cor aion, t Secur ies Inv orPr ect Cor aion, ora ot gov nmenta ed he a a por t he it est ot ion por t ny her er gency. [T v lue ofinv ment ma foryoura he a est s de ccountma go dow a w a up a is notguaa y n s ell s nd r nteed. BW ha notma a is notma a guaa ees, includingw houtlimit t aguaa a t a specific lev ofper ma ofyoura T s de nd king ny r nt it aion r ntee s o ny el for nce ccount. Inv mentdecisions ma on beha ofyoura est de lf ccountbyBW ae subj t v r maket curency economic, a business r a w a t r t tt inv mentdecisions w nota a be pr a Pa per ma a ed bya T r ect o aious r , r , nd isks s ell s he isk ha hose est ill lw ys ofit ble. st for nce chiev ccounts super ised orma ged byBW ma notbe indica e oft fut e per ma ofy a v na T y tiv he ur for nce our ccount .]PPT0 18 418 12 - 0 -0 - -20
  • 12. Important Dis clos ures – A wards & Rankings A wards below are as s ociated with the C orporate and Inves tment B anking bus ines s es of B arclays . 1. Institutional Inve stor’s (20 “Al-A icaReseach Tea (Equity)a “A mericaFixed-Income Reseach T m” surveys, which pollindustrygroup representaives. Ra 11), l mer r m” nd ll-A r ea t nkings ae ba ont t a numberofindiv ls select for r sed he ot l idua ed ea t m. Sur eyr s r t opinions ofmor t n 3 0buy-side a lyst a porfolio ma ger a mor t n1,0 0inst ut Sur eyr t r t opinions ofmor t n1,60 moneyma ger a buy-side a l s a some 520 ch ea v esult eflect he e ha ,50 na s nd t na s t e ha 0 it ions. v esuls eflect he e ha 0 na s nd nayst t inst ut (4 t ms). it ions. 4 ea 2. ThomsonReut s, 4 20 M na Under r er -G lDebt E y&E y-r aed, Pr er Q 11. a ging wit s loba , quit quit el t oceeds perBookr . Daa se cov a includes a USpublic, E o public a Rul 14 afee-el e globa debtta ct (incl G lbonds, unner t ba er ge ll ur nd e 4 igibl l r nsa ions uding loba E o/ 4 t a ct Y nkee Bonds, E obonds, For Bonds a pr r st a w a M A &T xa M A F a Cr A Debt Pr ur 14 a r nsa ions, a ur eign nd efered ock) s ell s BS, BS a ble unis. ll eder l edit gency , oceeds perBookr , (USD). A lea t bles ae ba on dea pr unner ll gue a r sed l oceeds (t a issue ot l amountmult iplied byt issue pr unl ot w st t a curentdaaa pr ious yea’s daais a of9:0 a E on December3 20 he ice) ess her ise aed; nd r t nd ev r t s 0 m DT 1, 11. 3. ThomsonReut s, 4 20 USM er Q 11. unicipa Pr l, oceeds perBookr (USD). Ra unner nkings a v nd olume tot ls include a municipa newissues under r t dur t per fr Jnuay1, 20 t December3 20 a fr Jnuay1, 20 t a ll l witen ing he iod om a r 10 o 1, 10 nd om a r 11 o December3 20 ofw T 1, 11, hich homsonReut s w s ma a ae. E w e indicaed, t r nkings quot a e do notinclude shor-t m, pr iminay pr ae pla er a de w r xcept her t he a ed bov t er el r , iv t cementorr nk-ineligibl issues. a e 4. ThomsonReut s, 4 20 (F Y r20 M , F ncia A isor Pr er Q 11 ull ea 11), &A ina l dv s, oceeds perbookr (USD). A lea t bles ae ba on dea pr unner ll gue a r sed l oceeds (t a issue a ot l mountornumberofshaes mult ied byt issue pr unless ot w st t r ipl he ice) her ise aed. 5. Geenw A t Geenw Shae L der M r 20 -F ms na a Geenw Lea s ha e dist r ich ssociaes, r ich r ea , ach 11 ir med s r ich der v inguished t hemselv fr t compet or byr ingG scor t texceed t oft compet or byast t ica significa magin. es om heir it s eceiv QI es ha hose heir it s aist lly nt r Geenw Qua yIndex (G T G is ast t icalymea r ich lit QI): he QI aist l ningfulmea ementoft qua yofser ice pr ided byseller ofinst ut lfina lser ices. Itsummaizes the qua aiv ev luaions pr ided bythe user offina lpr s a sur he lit v ov s it iona ncia v r lit t e a t ov s ncia oduct nd ser ices a t fina lser ices pr ider int asingle scor T scor is nor lized a t a med t ascae fr 0t 1,0 0 w h amea scor of50 a ast ndad dev t of166.7. Fir eaningdist iona aGeenw Qua y v bout heir ncia v ov s o e. his e ma nd r nsfor o l om o 0 , it n e 0 nd a r iaion ms r inct s r ich lit L derha e beenr ea v ecognized byt client a pr idingt industr bestqua yser ice inar nge offina lser ices businesses includinginv mentba heir s s ov he ys lit v a ncia v est nking, commer lba cia nking, fixed-income saes a t a equit sa a tr ding, l nd r ding, ies les nd a for excha r a st uct ed pr s, commodit conv t bonds, a inv mentma gementin t Unit St t Ca da U.K. E ope, a A (ex-Jpa eign nge, et il r ur oduct ies, erible nd est na he ed aes, na , ur nd sia a n). 6. Int estRae Der aiv House oft Y r R A ads, Jnuay20 &7. Commodit House oft Y r Risk A ads, Jnuay20 -T R edit ia t m r ied hea ilyonclientfeedba alotoft t lkingw h r ma ger a for er t iv t es he ea, isk w r a r 11 y he ea, w r a r 11. he isk or l ea el v ck, ime a it isk na s, sking demonstaions ofr sy ems a v ingr r t T j rt isk st nd iew isk epors. he udgingper la ed t ee mont bet eenOct a December20 9. Ba w e a tosubmitinfor t ont business inea oft pr caegor in t 12 mont t iod st hr hs w ober nd 0 nks er sked maion heir ch he oduct t ies he hs o October20 9, a t fir orindiv l ont shorlistt under entaser ofint v s. Inma ca R a t see t m sheet r syst a int na pr a loss figur forindiv ldesks. Risk t per med al hydue 0 nd hose ms iduas he t hen w ies er iew ny ses, isk sked o er s, isk ems nd er l ofit nd es idua hen for engt diligence process, cont ct ba client t confir t a t pla a t tcust s w e ha w h t end r ts. In ma t fina decisions, anumberoffa or w e consider including(butnotr r ed t r ma gement a ing nks’ so m r des ook ce nd ha omer er ppy it he esul king he l ct s er ed, est ict o) isk na , cust ser ice (in pat r helpingclient r ce hedges, r r ur under aerposit a pr ide r ma gementa ice), liquidit pr isiona qua yofpostsa ser ice. omer v ricula, s epla est uct e wt ions nd ov isk na dv y ov nd lit - les v * Thom son R e ute rs rankings are in the ord e r of the vol e of activity and m arke t share of in 201 1 . umPPT0 18 418 12 - 0 -0 - -20
  • 13. Important Dis clos ures – A bout Ratings Moodys r t r esentt opinion ofM aings epr he oodys Inv or Ser ice a t t r t e cr orhiness ofsecur ies. A such, t shoul be used inconj ionw h t descr ions a st t ics a r inM est s v s o he elaiv editw t it s hey d unct it he ipt nd aist ppeaing oodys publicaions. t Refer shoul be ma t t st t s forinfor t r r t issuer M ence d de o hese aement maion egading he . oodys r t ae notcommer lcr r t Inno ca is defa orr er t be imput unless expr yst t aings r cia edit aings. se ult eceiv ship o ed essl aed. Sta r &Poor cr r t expr for ad-lookingopinions a t cr w t ndad s edit aings ess w r bout he edit orhiness ofissuer a obligaions. M e specifica y, St ndad &Poor cr r t expr ar t e r nkingofcr w t s nd t or ll a r s edit aings ess elaiv a edit orhiness. Issuer a s nd obligaions w h higherr t ae j t it aings r udged byus t be mor cr w t t nissuer a obligaions w h low cr r t Cr w t o e edit orhy ha s nd t it er edit aings. edit orhiness is amult fa ed phenomenon. At i- cet lhough t e is no"for " forcombiningt v r her mula he aious fa s, ourcr r t at t condense t combined effect int r t symbols a asimple, one-dimensiona sca Indeed, a discussed below t r t e impor nce oft v r fa or ma cha in differ sit t cet edit aings tempt o heir s o aing long l le. s , he elaiv ta he aious ct s y nge ent uaions. T ter cr w t he m edit orhiness r s t t quest ofw herabond orot fina linst umentw lbe pa a dingt it cont a ua t ms. A fir blush, t ideaofcr w t efer o he ion het her ncia r il id ccor o s r ct l er t st he edit orhiness seems ent el sta for ad. ir y r ight w r Ar t is notar aing ecommendaiont pur se, hold orsella inv mentina t o cha n est smuch a ar t does notcommenta t inv mentr ur orsuit bil yforapat a inv or T r t a s aing s o est et n a it ricul r est . he aings ssigned t t Ba a ess t likel oft o he nk ddr he ihood he pa ymentofpr la int eston t DepositA s a dingt t t ms butae solelyt v oft a incipa nd er he ccount ccor o heir er r he iew he ssigningr t a aing gencya ae subj t a limit t t tt a nd r ect o ny aions ha he ssigningr t a aing gencyma impose. Simila r t on y r aings differ t ofinv ment donotnecessail mea t sa t T t ext t Ba is r t bya r t a ent ypes est s r y n he me hing. o he ent he nk aed ny aing gency, t tr t a ha aing gencyma cha it r t oft Ba ift tr t a y nge s aing he nk ha aing gencybeliev t tcir a ha e es ha cumst nces v cha t e w e er or in a lysis orot w nged, her er r s na her ise.PPT0 18 418 12 - 0 -0 - -20
  • 14. Important Dis clos ures – Dis claimers Diver t does notpr a instl sificaion otect ga oss. Inv ing in secur inv ves acera a est ities ol t in mountofr Y ae ur t r iewalpr isk. ou r ged o ev l ospectuses a ot offer infor t pr t inv ing. Pa per ma is notaguaa ee offut e per ma nd her ing maion ior o est st for nce r nt ur for nce. T ma ia is pr ided byBacl ys forinfor tion pur onl a does notconstit ta a ice. Pl se consul w h youra his ter l ov ra ma poses y, nd ute x dv ea t it ccount nt, t x a isor a orator fora ice concer yourpat a cir a a a dv , nd/ t ney dv ning ricul r cumst nces. IRSCir a 23 Discl e: BCI a it a iaes do notpr ide t x a ice. Pl se not t t(i)a discussion ofUSt x mat s conta in this communicaion (incl cul r 0 osur nd s ffil t ov a dv ea e ha ny a ter ined t uding a a a ny tt chment ca be used byyou forthe s) nnot pur ofa pose voiding t x penat (ii)t communicaion w s witt t suppor t pr ion ormaket ofthe mater a essed her a (iii)you shoul seek a ice ba on yourpat rcir a lies; his t a r en o t he omot r ing t s ddr ein; nd d dv sed ricula cumsta fr a nces om n independentta a . x dvisor Neit Bacl ys in the U.S. norits W lh a Inv mentM na her r a eat nd est a gementempl oyees in the U.S. rendert x orl la ice. Pl se consul w youra a ega dv ea t ith ccounta , t x a isor a ora or fora ice concer yourpat a nt a dv , nd/ tt ney dv ning ricul r circumstances. Bacl ys does notguaa ee fa or bl inv ra r nt v a e estmentout comes. Nordoes itpr ide a guaa ee a instinv mentl ov ny r nt ga est osses. “Bacla r s t a compa in t Bacl ys PL gr ofcompa r ys” efer o ny ny he r a C oup nies. Bacl ys offer w lh ma gementpr s a ser ices to its cl t ough Bacl ys Ba PL ("BBPL a functions in t United Staes t ough Bacla Ca lInc. ("BCI"), a a iae ofBBPL BCI is ar er ra s eat na oduct nd v ients hr r a nk C C") nd he t hr r ys pita n ffil t C. egist ed br deaera inv menta iser r aed bythe U.S. Secur ies a E nge Commission, w offices a 20 Pak Aenue, NewY k, NewY k 10 M oker l nd est dv , egul t it nd xcha ith t 0 r v or or 166. emberF a SIPC. INRA nd Bacl ys Ba PL r r a nk C, egister in E a a Wl (no. 10 ed ngl nd nd aes 26167), ha ar s egister office a 1 Chur lPl ce, L ed t chil a ondon, E 5HP, United Kingdom, a is r aed byt F ncia Ser ices A hor y. 14 nd egul t he ina l v ut it BCI a orits a iaes ma ma amaketordea a Pr lin the secur mentioned in t documentorin opt orot der tives ba t eon. One ormor dir or officer a orempl nd/ ffil t y ke r l s incipa ities his ions her iva sed her e ect s, s nd/ oyees ofBCI orits a iaes ma be adir orofthe issuerofthe secur ies mentioned in this document BCI orits a iaes ma ha e ma ged orco- na apubl offer ofsecur ies w hin the pr t ee yeas fora issuerment ffil t y ect it . ffil t y v na ma ged ic ing it it ior hr r ny ioned in this document. © ight20 Copyr 12.PPT0 18 418 12 - 0 -0 - -20