1. Alternative Income Solutions in Retirement
January 2013
Andrew Savill
Professional Advisor use ONLY – Not for distribution to Retail Clients.
Gilliat Financial Solutions is a trading name of Arbuthnot Latham & Co., Limited who are authorised and regulated by the Financial Services Authority No. 143336.

2. Gilliat Financial Solutions
• Part of the Arbuthnot Banking Group plc., which
can trace its name back to 1833
• Authorised/regulated in the UK
• Gilliat is a leading provider of Structured
Investment Solutions
• Fully independent from but works in partnership
with leading Investment Banks
• Global Business reach servicing the financial
advisory community
• Award winning Research and Development
• Directors have background in
trading, risk management and
investment design
02/06/13 Gilliat Financial Solutions is a trading name of Arbuthnot Latham & Co., Limited who are authorised and regulated by the Financial Services Authority No. 143336. 2

3. The UK’s leading independent structured product provider
2

4. Retirement – not what it used to be?
Ever more people approaching retirement are having to
contend with:-
•Low savings rates
•Low annuity rates
•Inflation
•Sovereign bonds at record highs
•Longer life expectancy
•Uncertain financial markets

5. Interest Rates at ‘all time lows’
Source: Bloomberg 21 January 2013

6. Fixed Rate Bonds in the UK – Current offers…
A scan of the UK Market – w/c 21st January
2013 - best rates from the ‘big 5’ UK banks
•Barclays Bank – 2.15% for 18 months
•RBS – 2.1% for 2 years
•HSBC – 3% for 5 years (£100k +)
•Santander – 2.5% for 18 months
•Lloyds TSB – 2.25% for 3 years
In 2007 rates of 6% + were available
Source: Bank Websites 21 January 2013

7. Annuity Rates have also fallen around the world
In the UK and US especially, QE has driven down
annuity rates which has pushed yields lower around the globe.
Source: ThisisMoney.com 21 January 2013

8. Where else does one look for income?
Bond Funds?
• Very popular in Q3 and 4 2012 but has the ‘great
rotation’ started? Is the sector ‘overbought’?
• Yields can be unpredictable and are presently low.
• Higher yield bond funds possibly a better bet with
risk environment improving.
Equity Income Funds?
• Yields and/or distributions still in the 3 to 5% range
• Capital is not protected – market cap can rise and
fall.
Property?
• Liquidity a concern, speculative developments?
• Physical property can deliver good returns but is not
without risks – cyclical/tenants/maintenance/legal
risk

9. Alternative Solution
What Gilliat were asked for in 2009:-
• A known level of predictable income
• A covenant from a reputable financial institution
• A very transparent level of market risk with a robust
capital protection feature
• Daily liquidity in the event of clients requiring exit
• Constantly available solution

10. Example Structured Note - Income Builder PLUS
Gilliat Income Builder Series
•Has been provided by Morgan Stanley, RBS
and Commerzbank since the series began in
early 2010.
•Produces Quarterly Income
•Capital protected if FTSE100 is above 3500
points (currently 6200)
•Rates (fixed for each deal) have been
between 6% and 9.7% p.a.
•6yr Investment Term

11. Gilliat Income Builder – Income

12. The FTSE100 Index since 1984
02/06/13 Gilliat Financial Solutions is a trading name of Arbuthnot Latham & Co., Limited who are authorised and regulated by the Financial Services Authority No. 143336. 12

13. Perhaps an Israeli Market Solution too?
Over the last 5 years the Israeli Stock Market has exhibited similar
trends to the UK.
Source: Bloomberg 21 January 2013
02/06/13 Gilliat Financial Solutions is a trading name of Arbuthnot Latham & Co., Limited who are authorised and regulated by the Financial Services Authority No. 143336. 13

14. Perhaps an Israeli Market Solution too?
Harnesses the bond AND equity markets
to produce a product that fills a gap in
the market.
Has transparent risk / return
characteristics and a robust capital
protection feature.
02/06/13 Gilliat Financial Solutions is a trading name of Arbuthnot Latham & Co., Limited who are authorised and regulated by the Financial Services Authority No. 143336. 14

15. Important Notes
This material is for professional financial advisers only and persons of any other description should
not rely or act upon it. Any investment in Gilliat Financial Solutions products should be made only
after the investor has read and understood the product Guide including the Terms & Conditions,
and the Termsheet.
Issued by: Gilliat Financial Solutions a trading name of Arbuthnot Latham & Co., Limited.
Arbuthnot Latham & Co., Limited is registered in England No. 819519. Registered office:
Arbuthnot House, 20 Ropemaker Street, London EC2Y 9AR.
Gilliat Financial Solutions a trading name of Arbuthnot Latham & Co., Limited. who are authorised
and regulated by the Financial Services Authority, 25 North Colonnade, Canary Wharf,
London E14 5HS. Registered under the Financial Services Authority number 143336.
Gilliat Financial Solutions does not offer investment advice or make any recommendation
regarding investments.
Returns from the structured products are at risk in the event of any of the institutions who
provide securities for these products default on their financial obligations.
02/06/13 Gilliat Financial Solutions is a trading name of Arbuthnot Latham & Co., Limited who are authorised and regulated by the Financial Services Authority No. 143336. 15

16. Andrew Savill Adrian Neave
Business Development Director Managing Director
Gilliat Financial Solutions Gilliat Financial Solutions
Arbuthnot House Arbuthnot House
20 Ropemaker Street 20 Ropemaker Street
London EC2Y 9AR London EC2Y 9AR
Office: +44(0)20 7012 2803 Office: +44(0)20 7012 2801
Mobile: +44(0)7785 470 030 Email: adrianneave@gilliat.co.uk
Email: andrewsavill@gilliat.co.uk