To help in the preparation of marketing material and reasons why letters, we’ve prepared the following suggested factual statements to help you communicate the benefits of investing with Skandia Investment Management Limited and Skandia Global Property Securities (LaSalle) Fund to your clients.                 It is the responsibility of the individual professional adviser to ensure that any ‘Reasons Why’ letter prepared for investors fully complies with all regulatory requirements. About Skandia Investment Management Limited (‘SIML’)

SIML is a dynamic asset management company focused on providing innovative investment products to professional intermediaries. It was launched in a major strategic move to provide a dedicated asset management business within the Skandia UK Group, offering investment management to the intermediary market. SIML is one of the fastest growing investment management companies in the UK and has rapidly become a leader in managed investment solutions with assets under management of over £3.5 billion.*

Skandia was a pioneer of multi manager investing in the UK, with more than 12 years experience. The combination of this experience and the size of our funds under management means we can offer you a portfolio of top managers from across the whole market. They have one of the largest manager selection and research teams in the UK and have significant buying power, allowing them to offer charges that are amongst the lowest in the industry.

*Source: Skandia Investment Management 1.1.06

Global Property Securities - An increasingly popular asset class

Investing in property has become increasingly popular for UK retail investors in recent years, but has, until now, been largely focused on direct investment into the UK commercial property market. However, there is now a rapidly growing area of investment – global property securities. Global property securities provide investors with an accessible way to invest in property, and at the same time overcome the difficulties of investing in property directly, especially on a global basis.

Global property securities funds are distinct from UK property funds in two ways. First, and most obviously, they invest on an international scale. As with equity or bond markets the largest market for property securities are within the United States, but there is a good spread of investment opportunities elsewhere across the globe. The second difference is that access to properties is gained by buying shares in companies that own the buildings, rather than investing in the actual properties themselves. This means that the asset class is likely to perform very differently from directly held properties. Investment in global property securities offers an exciting investment opportunity, the popularity of this investment route has been boosted by

its strong performance record and this area of investment has seen rapid growth - the overall size of the global property securities market has almost doubled to over $550 billion in the past two years alone and the prospects for further growth are significant – so far, less than 10% of the quality commercial property market across the world is ‘securitised’ (i.e. held in the form of shares), less than 5% in Europe.

In addition to strong performance, investors are also attracted to the diversification benefits of global property securities. Because global property securities behave very differently from traditional equities and bonds, combining them provides significant portfolio diversification benefits to investors looking to spread their investments across different asset classes.

On another level, because global property securities are driven by local economies, performance varies from one country to the next. Thus, in the same way that a portfolio of equities and bonds can be diversified across international markets, the global focus of the new Skandia Global Property Securities (LaSalle) Fund provides this additional level of diversification for investors.

The Skandia Global Property Securities (LaSalle) Fund

A key principle on which SIML was founded is that no single fund management group can be the best in all areas at all times. Its approach is to choose world class investment managers to manage a range of carefully constructed funds.

Consistent with Skandia Investment management’s approach of searching the globe for world-class managers, our research has led us to partner with Baltimore-based LaSalle Investment Management (Securities) to manage the Skandia Global Property Securities (LaSalle) Fund.

The Fund aims to achieve long-term capital growth and income in Sterling through investment in a globally diversified portfolio of property related securities.

LaSalle Investment Management (Securities) is one of the world’s leading real estate securities investment managers for pension funds, institutional and retail investors around the globe. With more than 20 years’ investment experience, the firm currently has $5.2 billion of assets under management in listed real estate securities, including $625 million in global mandates*. LaSalle Investment Management (Securities) is LaSalle Investment Management’s (‘LaSalle’) specialist securities division and as such benefits from the resources of both LaSalle and its parent Jones Lang LaSalle.

LaSalle is one of the world’s leading real estate investment managers with approximately $29 billion of public and private real estate assets under management across Europe, North America and Asia Pacific. The firm employs over 400 professionals, including a 21 strong industry-lead strategy and research team.

LaSalle is a wholly owned but operationally segregated division of Jones Lang LaSalle, a publicly-traded global real estate services provider. LaSalle benefits from priority access to research from Jones Lang LaSalle’s team of 158 people and local insight from 9,600 employees located across the globe.

*As at 31.08.05

In Summary:

An under-owned asset class.

Low correlations with traditional equities and bonds as well as against UK ‘bricks and mortar’ property.

Further diversification from investment across regions/countries

Large investable universe.

Strong performance potential relative to other asset classes.

How to invest

You can access Skandia Global Property Securities (LaSalle) Fund through Skandia’s full product range. Additionally you can invest as part of a portfolio within an ISA, PEP/ISA transfer or direct into the fund.

Recommended General Wording   

Past performance is not necessarily a guide to the future. The value of investments and the income from them can go down

as well as up.  You may not get back as much as you invested. In the Skandia Global property Securities (LaSalle) Fund, charges

are taken from the capital account. The effect of this may restrict or reduce the capital value of your investment.

Income levels are not guaranteed and may fluctuate. Please note that while the Skandia Global Property Securities

(LaSalle) Fund invests in property and will therefore be affected over the longer term by property fundamentals, it holds investments indirectly, via property securities. This means that the price of the fund will be affected both by events in property markets but also, significantly, by other factors that affect share prices – such as investor sentiment an supply and demand. The price is, therefore, likely to be more volatile than a directly invested property portfolio and may perform markedly differently over the short- to medium- term.

In addition, although Skandia Global Property Securities (LaSalle) Fund seeks to reduce currency risk for a Sterling investor by hedging the predominant portion of the non-Sterling portfolio back to Sterling, there will be a residual currency risk arising from any assets not hedged.

The Skandia Global Property Securities (LaSalle) Fund invests in a small market sector and, as a result, is likely to be more volatile

than a more diversified fund and the underlying investments may not be as readily realisable.

Annual charges and expenses are taken out of the fund’s capital rather than income. This may restrict or reduce the capital value of your investment.

For more information on this Fund or any other Skandia Investment Management product please contact your regional Skandia consultant.  This document is designed for use by professional advisers only and should not be relied upon by existing or prospective clients of Skandia.www.skandiainvestmentmanagement.com

Skandia Investment Management Ltd, a member of the Skandia Group of companies, is authorised and regulated by the Financial Services Authority.Registered Number: 4227837 EnglandRegistered Office: Skandia House, Portland Terrace, Southampton, SO14 7EJ, United Kingdom