BENEFITS OF AN ACM BUSINESS MODEL: Able to measure participation in market more effectively which will influence approach to origination and risk Allocation of capital & resources to optimise returns Specialised teams will develop a deeper understanding of the market dynamics and create a competitive advantage Greater innovation in offering to customers and consistent approach to the market ROLES & RESPONSIBILITIES: Have a clearer definition of roles & responsibilities across the division - more transparency COMPETITIVE ADVANTAGE: The key is to convert all this specialist knowledge into value for HBOS, by creating a truly differentiated approach. We must use all this intelligence, to create product and service offerings that are unique. We have competitive advantage in all our asset class groupings. ACM will enhance this advantage to create deep and lasting relationships with barriers that our competitors will find difficult to penetrate or replicate. BETTER ASSET & PORTFOLIO MANAGEMENT & DISTRIBUTION: We are developing many options for enhancing return on equity and are already moving to a multi channel distribution strategy based on: Capital markets options 3rd party fund raising CDO / CLO distribution Primary and secondary trading to name but a few. Ultimately this will allow us to allocate capital and resources to maximum effect. IMPROVED CAPITAL & RESOURCE ALLOCATION: A comprehensive allocation of capital model only works with all the elements of an asset class being reported in one place. With ACM we now will be in a position to justify business plans based on total profitability including capital cost.