Building a premier international savings and wealth management business

1. Gathering assets

…by recognising demographic and economic opportunities

We operate in a wide range of markets around the world, and this diversity gives us opportunities and choices as economies grow and demographics shift. In many of our territories our customers are living longer, with greater demands for retirement provision. The trends affecting our asset gathering strategies encompass:

• Developing economies in India, China and Australia: we are well placed to benefit from the world's fastest-growing economies
• Emerging middle classes in Africa and Asia: growing generations of more affluent and investment-aware consumers
• Baby-boomers in North America and Europe: flexible prolonged gradual retirement
• Global economic growth driving asset growth: equities offering longer-term returns
• In the US, 83% of our assets had outperformed their benchmarks and 83% were ranked above the median of their peer group over the trailing three-year period

2. Managing assets

…by providing superior customer service

We realise that there is an abundance of options available to our customers and that they are becoming increasingly investment-literate and have more information to inform their choices. We monitor and report on service levels, recognising that excellent service is a competitive advantage in a world of commoditised solutions. Our philosophy of decentralisation allows each of our businesses to react quickly and effectively to local conditions, and we aim to respond to the needs of our customers with superior service irrespective of market conditions. Therefore we must remain aware of the increasingly complex factors affecting the way we manage our customers' assets:

• Strong demand for simplicity, transparency, flexibility and fairness in terms of service and product offerings
• Active participation by regulators, leading to greater need for responsibility and clarity from suppliers
• Effective emergence of e-commerce and personal financial 'DIY', giving consumers greater choice and access

3. Delivering returns

…by developing innovative products and solutions

We aim for top-quartile returns on a sustainable basis and this requires the application of strong product-development expertise and consistent investment performance. We have moved away from the model of being a life assurer to one where our chief aim is to provide investment solutions through a range of innovative products and asset classes. Our leading open-architecture platform allows customers range and flexibility, and gives us the opportunity to maximise returns. Our product development focuses on:

• Open-architecture and wrap platforms
• Lower front-end charges
• Guarantees only where explicitly required and paid for
• Shift from life products to unit trusts and mutual funds