1. Investing in a low interest rate environment

2. le chéile Investment Strategy for credit unions
Backdrop:
• Falling Interest Rates
• Rising Costs
• Falling Lending
• Rising Provisioning
Careful Research/Screening of Products designed to be “Best in Class” in respect of:
• Investment Grade
• Capital Protection
• Diversified Counterparties
• Upside Participative Products
• Pure Income Products

3. Broad Selection of Counterparties

4. Deliberate Product Blending – “Best in Class”
• le chéile strive to offer “The Solution”
• Low Returns – Time to adjust?
• Product Blending Income and Growth

5. Previous Product Offerings
Long Term 5Yr/5%
p.a. Soc. Gen.
Corporate Bond
Index
Medium Term Soc.
Gen. 3Yr/3.5%
Irish Govt. Bond
Index
Credit Union
5Yr/3.5% Income
Plan Investec
Long Term
Eurozone Inflation
Bond

6. Some New Funds/Product Components
Carmignac
Patrimoine Fund
Merrill Lynch
Multi Asset
Strategy Fund
S&P 500
Aristocrats
Dividend Fund
Investec Income
Plan V
 3 Year - 2.5% p.a.
 5 Year - 3.4% p.a.

7. Corporate & Institutional Banking
Credit Union Presentation
25th February 2014
7

8. 2
Investec Ireland: a brief history
13 Years in Ireland
Acquisition of Gandon
Capital Markets
GE Capital Woodchester
Bank in 2000
Commitment to Ireland
Addition of NCB to
Investec Group
240 Employees in Dublin
Investec
Harcourt Street, Dublin 2
Ireland’s Specialist Bank
Irish Expertise
International Strength

9. Investec: a distinctive Specialist Bank and Asset Manager
History






Strategy
Established in 1974
Today, an independent, specialist bank and asset
manager providing a diverse range of financial products
and services
Employs approximately 8,100 people
Listed on the JSE and LSE (a FTSE 250 company)
Total Assets of £47bn
Total Funds Under Management of £111bn



Client focused approach
Not “all things to all people”
Distinction: Nimble, innovative and high level of service
Culture



Flat and efficient management structure
Strong risk management and financial discipline
Entrepreneurial culture: material employee ownership
Corporate / Institutional / Government
Asset Management
Provides Investment Management Services
Private Client (High Net Worth)
Specialist Banking
Provides a broad range of services
 Advisory

Lending

Treasury and trading

Provides investment management services
and independent financial planning advice
Transactional banking

Wealth & Investment
Investment activities
Source: Investec Group (consolidated) results as at 31 March 2013

10. 10
Investec: Key Financial Data

11. 5
Investec: Credit Ratings & Guarantees
Fitch
Moody’s
Short-term
F3
Short-term
Prime-3
Long-term
Long-term
BBB-
Baa3
The Moody’s Financial Strength rating in relation to our peers: is equivalent to Royal Bank of Scotland, KBC Bank NV and
higher than any of the Irish Banks including BOI and KBC Ireland.
Financial Services Compensation Scheme, the UK government guarantees a maximum deposit of £85 000 (€100,000) per
individual per institution
The group holds £10.4 billion of cash and near cash balances [(£5.7 billion (R75.1 billion) in Investec Limited and £4.7 billion in
Investec plc], representing approximately 33% of its liability base
None of Investec’s banking subsidiaries have required shareholder or government support during the global financial crisis
Investec holds capital in excess of regulatory requirements. The group targets a minimum tier 1 capital ratio range of
between 11% to 12% and a total capital adequacy ratio range of 15% to 18% on a consolidated basis for Investec plc and
Investec Limited

12. 6
Credit Ratings – Points to note

Our rating reflects a strong score with respect to the “hard” financials - capital, liquidity, risk
management, transparency, asset quality and profitability

On the Moody’s scorecard we would map directly to an A3, a high score relative to our peers

On the “softer” issues such as franchise value, geographical diversification and market share,
Investec scores lower

Rating agencies have awarded rating notch uplifts to banks who have received government
support. Many of these banks have failed and yet are afforded high ratings

IBP has not required government support and the FCA has acknowledged its sound balance
sheet and stable operating fundamentals

The bank was approved to issue up to 3 year debt guaranteed by the UK Government.
Notwithstanding this, Investec has not been awarded the benefit of rating notch uplifts to its final
ratings.

13. 7
INVP.L Share price: £4.35 as at 21.02.14

14. Disclaimer
This document is issued in the UK by Investec Bank plc (“Investec”), which is authorised by the Prudential Regulation Authority and regulated by the
Financial Conduct Authority and the Prudential Regulation Authority. Whilst all reasonable care has been taken to ensure that the information stated
herein is accurate and opinions fair and reasonable, neither Investec nor any of its directors, officers or employees shall be held responsible in any way
for the contents of this document. This document is produced solely for your information and may not be copied, reproduced, further distributed to any
other person or published in whole or in part for any purpose without the prior written permission of Investec.
While the information in this document has been prepared in good faith, no representation or warranty, express or implied, is or will be made and no
responsibility or liability is or will be accepted by Investec or any of its subsidiaries or affiliates or by any of their respective officers, employees or
agents in relation to the accuracy, suitability or completeness of this document and any such liability is expressly disclaimed. Investec gives no
undertaking to provide the recipient with access to any additional information or to update this document or any additional information, or to correct any
inaccuracies in it which may become apparent.
This document does not take into account the specific investment objectives, financial circumstances or particular needs of any recipient and it should
not be regarded as a substitute for the exercise of the recipient’s own judgment. Investec does not offer investment advice or make any investment
recommendations. Recipients of this document should seek independent financial advice regarding the appropriateness or otherwise of investing in
any investment strategies discussed or recommended in this document and should understand that past performance is not a guide to future
performance and the value of any investments may fall as well as rise.
Investec in Ireland comprises Investec Ireland Limited and Investec Bank plc (Irish Branch) for regulated activities. Investec Ireland Limited is regulated
by the Central Bank of Ireland. Investec Bank plc (Irish Branch) is authorised and regulated by the UK Financial Services Authority and is a member of
the London Stock Exchange
The information contained herein does not purport to be comprehensive and is strictly for information purposes only. No party should treat any of the
contents herein as constituting advice. While all reasonable care has been given to the preparation of this information, no warranties or representation,
express or implied, are given or liability accepted by Investec or any of its directors or employees in relation to the accuracy, fairness or completeness
of the information contained herein.

15. le chéile – Investment Seminar
BCP Asset Management
‘Investing in a low interest rate environment’
John Calvert, CEO BCP
BCP Asset Management
15

16. Key Information on BCP
• Established in 1969
• One of Ireland’s largest Independently owned Product Producers
– Over €1.5bn in assets under management
– €340m new investments during 2012
– €345m new investments during 2013
• Key Investment Objectives:
– Provide access to a range of compelling funds
– But with the added benefit of downside protection
– Conservative investment bias
– Priority on product Innovation
BCP Asset Management
16

17. Recent industry awards
BCP Asset Management
17

18. Key Partnerships
Advisors
Asset
Managers
Research
Tools
Pension
Providers
Custodians
BCP Asset Management
18

19. BCP - Sources of Business
• Calendar Years 2012 & 2013
Source of Business
Total Funds Invested
% of Total
Investment
€287m
42%
Pension/ARF
€236m
34%
Institutional
€162m
24%
Total
€685m
100%
BCP Asset Management
19

20. BCP Investment Process
Goldman Sachs,
S&P, Citigroup, JP
Morgan, Capital
Economics
BCP Product
Development
External
Research –
Bloomberg,
Reuters,
eVestment
Pricing Requested &
Terms Negotiated
Market
Analysis
Fund
Manager Due
Diligence
BCP
Investment
Committee
Product
Traded &
Launched
BCP/Bank
Compliance
Review
Feedback
BCP Asset Management
20

21. Customised BCP-Credit Union Products
BCP Asset Management
21

22. Trends in credit union market
• Capital security top priority
• Fixed Income top priority
• Low deposit rates encouraging greater product innovation
• Move towards active investment solutions (funds/indices)
• Customised Bonds – BCP can create tailored bonds at €2m+
BCP Asset Management
22

23. Deposit rates: 3y and 5y
BCP Asset Management
23

24. BCP Fixed Income Plan – Issue 5
BCP Asset Management
24

25. BCP Fixed Income Plan 5
• Partnership between Investec Bank and BCP
• Over 70 credit unions invested in range to date
• Security of Plan ranks equally with deposits
• Medium Term Note with 2 options:
– 3yr Plan paying 2.5% pa
– 5yr Plan paying 3.4% pa
• Credit risk exposure to Investec plus Basket of ‘A’ rated banks
– Commerzbank
– Societe Generale
— Credit Agricole
— Royal Bank of Scotland
• Classified as Category 3 in Guidance Notes
BCP Asset Management
25

26. BCP Fixed Income Plan 5
• Partnership between Investec Bank and BCP
• Over 70 credit unions invested in range to date
• Security of Plan ranks equally with deposits
• Medium Term Note with 2 options:
– 3yr Plan paying 2.5% pa
– 5yr Plan paying 3.4% pa
• Credit risk exposure to Investec plus Basket of ‘A’ rated banks
– Commerzbank
– Societe Generale
— Credit Agricole
— Royal Bank of Scotland
• Classified as Category 3 in Guidance Notes
BCP Asset Management
26

27. BCP Fixed Income Plan – Issue 5
3 Years
Yield (p.a.)
Closing date
Category
5 Years
2.5%
12th March 2014
3
3.4%
12th March 2014
3
BCP Asset Management
27

28. BCP Credit Union Split Deposit
Absolute Return Bond 3
BCP Asset Management
28

29. BCP Credit Union Split Deposit
Absolute Return Bond 3
• Innovative Capital Secure solution combining Income, Growth
and Protection
• 25% invested in a 3 year high yield deposit account
– Paying 3.75% AER deposit interest over 3 years
• 75% invested in a 5 year 3 month Absolute Return Bond
– 80% participation in the fund performance
• 100% Capital Security provided by Investec Bank plc
• Classified as Category 2 in Guidance Notes
BCP Asset Management
29

30. BCP Credit Union Split Deposit
Absolute Return Bond 3
• 100% Capital Security provided by Investec Bank plc
• Bond tracks the performance of the Carmignac ‘Patrimoine’
Fund
• Patrimoine invests in Equities, Bonds and Currencies
• Patrimoine has €27bn in assets and a 24 year track record
• Patrimoine has returned over 8.7% per annum since its launch
in 1989
• Transparent and robust investment process – regular
performance and holdings updates
BCP Asset Management
30

31. BCP Credit Union Split Deposit
Absolute Return Bond 3
BCP Asset Management
31

32. Carmignac Patrimoine Fund - Performance
• Fund has returned 640% (8.7% CAR) since launch
As at 31st December
2013
Fund
Performance
10 years
5 years
36%
Best 5 year Return
130%
Worst 5 year Return
16%
Avg 5 year Return
BCP Asset Management
95%
55%
32

33. Compliance Disclaimer
THIS DOCUMENT IS FOR INSTITUTIONAL AND PROFESSIONAL CLIENTS ONLY. It is not to be viewed by or used with retail clients.
This presentation is for information purposes only and does not constitute an offer or commitment, a solicitation of an offer or commitment, or
any advice or recommendation, to conclude any transaction (whether on the indicative term sheet or otherwise). This material does not purport
to contain all of the information that an interested party may desire. Before entering into any transaction, you should ensure that you fully
understand the potential risks and rewards of the transaction and that you independently determine that the transaction is appropriate for you
given your objectives, experience, financial and operational resources, and any relevant circumstances. You should consider consulting with
such advisers as you deem necessary to assist you in making your determinations. We are acting solely as an arm’s length commercial
counterparty and not as your financial adviser or fiduciary in any transaction, unless you have otherwise agreed to do so in writing with us.
All materials herein are for discussion purposes only and are not intended to set forth the definitive terms of any transaction. The terms of the
proposed transaction described herein are consequently subject to change without notice. This Term Sheet contains an indicative summary of,
and is subject to, the fully legally binding terms and conditions of the Notes, which are set out more fully in the Final Terms dated on or around
the issue date of the Notes and the Impala Prospectus, as supplemented from time to time. A copy of the executed Final Terms and the Impala
Prospectus are available upon request. This communication is furnished at the request of the recipient for the exclusive purpose of identifying
the security or other instrument referred to herein. It is furnished for your private information with the express understanding, which the recipient
acknowledges, that it does not constitute an offer to sell or solicitation to purchase any securities and neither Investec Bank plc nor any of its
affiliates are soliciting any action based on it. Certain transactions may give rise to substantial risks and are not suitable for all investors. You
are advised to make an independent review and reach your own conclusions regarding the legal, tax and accounting treatment regarding the
purchase of the securities set out herein as it relates to your asset, liability or other risk management objectives and risk tolerance. Nothing in
this document constitutes investment, legal, tax or accounting advice. This transaction does not constitute the execution of an order on your
behalf as defined by any legislation, regulation and/or rule implementing the Markets in Financial Instruments Directive (2004/39/EC) (MiFID).
This document and its contents are proprietary information and are strictly private and confidential.
Investec Bank plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential
Regulation Authority. Investec Bank plc (Irish Branch) is regulated by the Central Bank of Ireland for conduct of business rules.
BCP Asset Management is regulated by the Central Bank of Ireland.
BCP Asset Management
33

34. Compliance Disclaimer
Please refer to the Brochure and Key Features for full details. With regard to the BCP Capital
Secure Bonds investors may not encash prior to the maturity dates. AER is Annual Equivalent Rate
and CAR is Compound Annual Return. Under current legislation, interest on Capital Secure Bonds
will be paid after deduction of DIRT, where applicable, currently 41%.
WARNING: BCP Credit Union Split Deposit Absolute Return Bond 3; If you invest in the Credit
Union Split Deposit Absolute Return Bond 3 you will not have any access to 25% of your money for
3 years and 75% of your money for 5 years 3 months. The value of your investment may go down as
well as up. Past performance is not a reliable guide to future performance.
WARNING: BCP FIXED INCOME PLAN 5; If you invest in the Fixed Income Plan 5 you will not have
any access to your money for 3 or 5 years.
BCP Asset Management
34

35. Q&A
Thank you