PHOENIX MEDICAL SUPPLIES PENSION SCHEME INVESTMENT UPDATE TO 28 FEBRUARY 2011

1. PHOENIX MEDICAL SUPPLIES PENSION SCHEME INVESTMENT UPDATE TO 28 FEBRUARY 2011 Trustees Meeting 15 MARCH 2011 iFunds is a registered trade mark used under sub-licence from Raymond James Investment Services Limited (RJIS).  Registered in England and Wales number 3779657. Registered office  77 Cornhill, London, EC3V 3QQ RJIS is authorised and regulated by the Financial Services Authority. www.rjis.co.uk

2. FUND VALUES AS AT 28 FEBRUARY 2011

3. PERFORMANCE TO 28 FEBRUARY 2011 ANNUAL RETURNS AND VOLATILITY

4. PORTFOLIO ACTIVITY • What has happened in the world since we last saw you? • We have seen China raise interest rates in an attempt to reduce the inflationary pressures within the economy. • These inflationary pressures have also been evident in Latin America and Asia. Food price inflation has been a key component of the inflationary increases. • The Eurozone has continued to wrestle with the debt burden of countries such as Ireland, Greece and Portugal. • The US continues to adopt a loose monetary approach in an attempt to maintain economic growth. • Commodity prices continue to rise due to events around the world. • Agricultural commodity prices have been hit by poor crop yields as a result of adverse weather conditions. • Oil based energy prices have surged as a result of civil unrest across the Middle East. • Precious metals have been viewed as a safe haven and a hedge against inflation. • We await to see the full impact of the Japanese earth quake and tsunami.

5. PORTFOLIO ACTIVITY • How have we amended the portfolio to take account of the signals? • We have seen significant asset class rotation in the ranking process over the previous 6 months. • November through to December we saw the fixed interest asset classes slide down the ranking table and out of the portfolio. • As fixed interest asset classes went out, in came European and UK Smaller Companies. • In January US Small and Medium sized companies entered the portfolio, whilst Asia Pacific Real Estate moved sharply down and out. • The theme of Medium and Small sized companies continued during February as Japan Smaller Companies entered the portfolio. • Throughout the period Commodities have held strong positions within the ranking process, particularly Agricultural Commodities and although we have seen some recent slippage in Precious Metals, they have held on to their portfolio position. • During the last 6 months we have witnessed the continued decline in emerging market and fixed interest assets classes.

6. TOP EIGHT RANKED ASSET CLASSES

7. CURRENT PORTFOLIO ASSET ALLOCATION

8. EQUITIES OUTLOOK

9. COMMODOTIES OUTLOOK

10. FIXED INTEREST OUTLOOK • Commentary

11. DISCLOSURES This document is issued by iFunds. Past performance is not a reliable indicator of future results. Quoted yields are not guaranteed. Except where otherwise indicated performance numbers are sourced from iFunds. We reasonably believe that the information contained herein is accurate as at the date of publication. This document must not be relied on for purposes of any investment decisions. This document may include simulations which are based on our current investment processes. We undertake no obligation to update or revise any forward-looking statements. Actual results could differ materially from those simulated. The value of investments, and the income from them, can do down as well as up and you may not recover the amount of your original investment. Where an investment involves exposure to a foreign currency, changes in rates of exchange may cause the value of the investment, and the income from it, to go up or down. Performance • Volatility is the annualised standard deviation based on monthly performance figures • Return figures based on bid price at close of business on last day of the month • Returns for simulations are calculated net of transaction costs but gross of annual management fees iFunds is a registered trade mark used under sub-licence from Raymond James Investment Services Limited (RJIS).   Registered in England and Wales number 3779657. Registered office  77 Cornhill, London, EC3V 3QQ RJIS is a member of the London Stock Exchange and is authorised and regulated by the Financial Services Authority. www.rjis.co.uk

12. APPENDICES Monthly Return Figures iFunds Investment Process

13. PERFORMANCE TO 28 FEBRUARY 2011 MONTHLY RETURNS

14. CHOOSING THE ASSETS

15. THE ASSET CLASSES CONSIDERED

16. STOCK SELECTION • Can stock pickers (after expenses) beat the index over the long term? • We take a passive index tracking approach to stock selection • Using (predominantly) Exchange Traded Funds (ETFs)

17. OUR APPROACH • Target long term positive returns over inflation • Reduce impact of negative volatility • Invest in performing assets • Monitor wide range of possible investments • Client driven choice on risk and reward • Daily monitoring of risk based asset allocation • Passive Stock Selection using Indexed Funds

18. FIVE SPECTRUM PORTFOLIOS INCREASING RISK ORANGE PORTOLIO YELLOW PORTFOLIO GREEN PORTFOLIO BLUE PORTFOLIO INDIGO PORTFOLIO • Risk Tolerance is the expected immediate loss (or gain) on the overall fund as a result of the price of one individual holding changing by one standard deviation. Therefore, the higher the volatility the lower the allocation in a particular strategy.

19. SPECTRUM PORTFOLIOS • SIMULATED RETURNS • Annual returns and volatility figures are based on simulations back to 1 January 1993 • Risk Tolerance is the overall fund loss due to negative performance equal to one standard deviation for any single asset class • Volatility represents a range either side of the annual return within which performance has been achieved two thirds of the time • Annual returns are average gross return per annum (transaction costs accounted for but consideration should be given to the impact of management fees)