The Protected Asset TEP Fund No'2

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The Protected Asset TEP Fund No.2
The clear choice for the risk-averse and
experienced investor
Prepared by Protected Distribution Limited the
exclusive worldwide promoter of the Fund (June
2008) for professional advisers and
intermediaries
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Purpose of this presentation

• Background
• Description of Asset
• Underlying Financial Strength
• Opportunities
• The Protected Asset TEP Fund No.2 Structure
• Statistics and Market Commentary
• Further Information

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Some History

• Launched in 2003, The Protected Asset TEP Fund
  No.2 (PATF No.2) was designed for the more
  cautious and experienced investor.
• It was founded on three pillars - capital
  growth, security and stability and has achieved
  5 years of success through the careful
  acquisition of a diverse range of traded
  endowment policies.
• PATF No.2 is an OEIC, resident in the Isle of
  Man.

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What is a Traded Endowment Policy (TEP)?

• A traditional with-profits life assurance
  contract, which is disposed of in the middle of
  its life cycle in the TEP market rather than
  surrendered to the issuing life office
• Each policy comprise 3 elements - With-Profits
  Sum Assured Attaching Bonuses Terminal Bonus
• After the policy is purchased in the market, the
  new owner pays premiums to maturity

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Components of a TEP

• TEPs have valuable in-built guarantees made up of
  with-profits sum assured and attaching bonuses -
  once declared they cannot be removed provided
  premium payments are maintained.

WITH-PROFITS SUM ASSURED
FUTURE ANNUAL BONUS
ATTACHING BONUS
TERMINAL BONUS
MATURITY PAYOUT
GUARANTEED
FUTURE PROSPECTS
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Life Office Strength
Through the acquisition of a wide range of traded
endowment policies, The Protected Asset TEP Fund
No.2 gains access to the with-profits funds of
some of the strongest and oldest global financial
institutions.
Five Largest Investments in PATF No.2 LIFE
OFFICE S P RATING OUTLOOK Standard
Life A Stable Norwich Union AA Stable Prudent
ial AA Stable General Accident AA Stable Cleri
cal Medical AA Stable
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Opportunities

• The high levels of guarantees offered by TEPs
  provide superior security and locked-in value
• Competitive returns compared to those available
  from cash deposits and other low-risk asset
  classes
• Through diversification and smoothing, TEPs
  demonstrate a low correlation to equity and
  interest rate markets
• TEPs have exhibited strong and stable returns in
  both high and low inflationary environments
• The re-structure of life office with-profits
  funds, distributions of inherited estates,
  re-attributions, de-mutualisation or other
  arrangement may signify generous windfalls for
  investors in the Fund

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Underlying With-Profits Performance
Source Prudential, February 2008
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Structure Diagram
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Key Features
Competitive Management charges
Monthly Dealing
The Protected Asset TEP Fund No.2
No Bid Offer Spread
Consistent Stable Growth
3 currency classes available Sterling US Dollar
Euro
Acceptable to all major offshore life wrappers,
SIPPS SSAS
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Strength in Numbers
The Protected Asset TEP Fund No.2 (Sterling Class)
Fund Price 1.4305 as at 15th May 2008 Monthly
Growth (12 Month High) 0.62 Low Volatility
lt1
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Delivering Stable Returns
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Reassuring News

•  some assurers with-profits funds are
  performing quite well and the bonuses received by
  policyholders are much higher.
• Policies with 25-year terms are the most popular
  kind as they allow investors to earn the highest
  bonuses and also offer stable annualised returns
  ...
• The TEP market is far more buoyant now than it
  was a decade or two ago.
• Ellen Kelleher from the Financial Times, May 2008
• Insurers have also taken steps to de-risk their
  balance sheets, reducing their
• equity exposure and more closely matching their
  assets to their policyholder
• guarantees, which further protects them against
  market volatility
• Fitch Ratings, March 2008
• Billions of pounds of orphan assets have
  accrued over the decades as a financial cushion
  in the huge with-profits funds of the UK
  insurance industry
• BBC News, June 2008

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Further Information

• For further information on this product and the
  generous commissions available, please contact
  Alastair on
• Tel [phone]
• Fax [phone]
• E-mail alastair_at_pdlgroup.com
• Related Links
• PATF No.2 scheme particulars

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Important Information

• This presentation has been prepared for
  professional advisers and intermediaries only.
• The Protected Asset TEP Fund Plc (PATF) is an
  Experienced Investor Fund and complies with the
  requirements of the Isle of Man Financial
  Supervision (Experienced Investor Fund)
  (Exemption) Order 1999, as amended. PATF is not
  subject to any form of approval in the Isle of
  Man and investors are not protected by any
  statutory compensation arrangements in the event
  of PATFs failure.
• Any investor into PATF must be an Experienced
  Investor and, prior to investment, must have
  signed a statement acknowledging that they are an
  Experienced Investor and that they have read and
  understood the Scheme Particulars and accept the
  risks associated with such an investment.
• The value of shares and the income produced by
  them can fall as well as rise. Investors may not
  get back the value of their original investment.
  Past performance is not necessarily a guide to
  future performance. Any reference to a guarantee
  relates to the underlying policies and not to the
  share price of PATF No.2. An investment in the
  Fund should be regarding as medium to long in
  nature. If an investor redeems shares in the
  first five years exit penalties may be applied.
• The figures and charts displayed in the
  presentation refer to past performance and are
  not an indicator of future returns.
• Full details of PATF No.2 can be found in their
  Particulars which are available upon request.
• This document, which is issued by Protected
  Distribution Limited does not constitute
  investment advice or an offer to invest and is
  for information purposes only.