What is MandateWire?

• Market leader in the provision of market data and sales intelligence on European institutional investors

• Real-time reporting on investment strategies and manager search activity

• Trend analysis on capital flows and asset management deals• Targeting a universe of 2,000+ pension funds• Now offering a range of solutions used by institutional sales

and marketing teams in many of the leading asset-management companies

What is MandateWatch?

• New analysis tool powered by a quantitative database of 2,500 asset-management deals

• £250bn in assets placed

• Identify consultant selection patterns

• Monitor competitor activity and inflows• Identify shifts in asset-allocation patterns

Achievement in 2006

• Developed MandateWatch and Deal Flow to service the growing need for market analysis data

• MandateWatch aggregated quantitative data on over 600 asset-management deals representing a total of £73bn in allocations

• 1,400 investment-activity reports• 708 UK & European institutional investors• £1.3 trillion worth of assets under administration

• Alternatives dominated asset-allocation re-weightings

• Real estate topped alternatives inflows; Private equity was strongest for future investment

• Bonds were favoured over equities in a flight from risk

• Equities exposures went global

• Currency management and infrastructure took off

Equities

Investment goes global

and “unconstrained”

Currency management

A source of alpha, not just

risk-management

• 15 mandates awarded• 46 investors put currency on the future agenda• Preference for active management

Bonds

A downturn in risk appetite?

Real Estate

Still the diversifier of choice

• £1.6bn worth of inflows during Q3 2006

Private Equity

Tomorrow’s alternative of choice

• £1.4bn worth of inflows during Q3 2006

• 22 investors put in on the future agenda in Q4 2006 alone…

• … including the NOK1.7trillion Norwegian Government Pension Fund

Hedge Funds

Was 2006 a tipping-point?

• £1.1bn worth of inflows during Q4 2006• FRR decides against exposure

Commodities

More “soft” interest than “hard” cash

• Most exposures are passively managed

Infrastructure

A new asset class makes waves

• £70m worth of inflows in Q4 2006• 6 investors searching for products or considering a

future investment

LDI

Strong showing as investors cut risk

• 50 investors adopted LDI during 2006• 27 put it on the agenda for 2007

MandateWire January 2007

• 134 reports

• 109 investors – 9 new to the database• £353.9bn worth of assets under administration• £4.3bn worth of awarded investment mandates• £430m worth of manager or product searches

Awarded Mandates by Asset Class

0 1 2 3 4 5 6 7 8

Private equity

Currency management

GTAA

Property

Equities (UK)

Equities (unconstrained)

Balanced

Hedge fund (fund of funds)

Hedge fund (single-manager)

Bonds

Alternatives (all varieities)

Infrastructure

Bonds (emerging markets)

Bonds (high-yield)

Equities (Europe)

Equities (international)

Equities (Japan small-caps)

Equities (resources sector-specific)

Multi-asset (emerging markets)

Forestry

NOTE: “Quantifiable future inflows” refers both to formal tender or RFP notices which state the size of the intended investment and have yet to reach the investment stage; and stated increases in strategic allocation benchmarks. This chart excludes a potential GBP11.2bn worth of investment in diversified alternatives that could follow from a strategic asset-allocation re-weighting for 2007-2009 by the Netherlands’ St Psf ABP.

Quantifiable Future Inflows by Asset Class & Investment Style

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NOTE: “Expressing future interest” refers to any indication that an investor intends to allocate, or consider and allocation, which MandateWire was unable to quantify in terms of the size of the potential investment. These statements of interest are in addition to those implied by quantifiable intentions such as tender notices or increases in strategic allocation benchmarks.

Investors Expressing Future Interest by Asset Class & Investment Style

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Joe O’ Donovan

Managing Director

Serenella Maculan

Client Relationship Manager

Martin Steward

Editor

3rd Floor, 242 Vauxhall Bridge Road, London SW1V 1AU

TEL: +44 (0)207 963 4081

FAX: +44 (0)207 963 4090

www.mandatewire.com

www.mandatewatch.com