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Historical Performance (%) -- as of 6/30/2013
annualized
RBS etn
inception
3-month (%)
(10/21/11) (%)
---------------------------------------------------------------------------------
---------------
RBS Global Big Pharma ETN Daily Redemption Value(1) 0.48
19.16
NYSE Arca Equal Weighted Pharmaceutical Total Return Index(SM) 0.63
35.80
NYSE Arca Equal Weighted Pharmaceutical Index(SM) (Price Return Index) 0.16
30.87
SandP 500([R]) Index (Price Return) 2.36
29.72
since
YEAR-TO- annualized annualized annualized
DATE (%) 1-year (%) 3-year (%) 5-year (%)
- -------- ----------- ---------- ----------
12.89 20.59 -- --
13.23 21.31 18.32 11.88
11.82 18.95 15.60 9.13
12.63 17.92 15.94 4.65
Source: Bloomberg. The table above presents the actual historical performance of
the RBS ETNs, the Index, the NYSE Arca Equal Weighted Pharmaceutical Index(SM)
(the "Price Return Index") and the SandP 500([R]) Index (Price Return) over the
specified periods. The only difference between the Index and the Price Return
Index is that the level of the Index incorporates the cash dividends paid on the
Index components, while the Price Return Index does not. It is not possible to
invest directly in an index. For information regarding the performance of the
Index, see pages PS-13 to PS-16 of the pricing supplement of the RBS ETNs filed
with the U.S. Securites and Exchange Commisson (SEC). Past performance does not
guarantee future results.
(1) Includes the deduction of the annual investor fee, which accrues on a daily
basis. The annual investor fee will be equal to 0.60% per annum.
Country Breakdown -- as of 6/30/2013
country companies
-------------- ---------
United States 12
United Kingdom 3
Switzerland 1
Denmark 1
France 1
Israel 1
Canada 1
[GRAPHIC OMITTED]
Source: Bloomberg. The chart and table above present the country of
incorporation of the companies which equity securities comprise the NYSE Arca
Equal Weighted Pharmaceutical Index(SM) (the "Price Return Index"). The Index
and the Price Return Index have identical components.
Historical Dividend Yield -- as of 6/30/2013
dividend yield dividend yield
Year NYSE Pharma index (%) SandP 500([R]) index (%)
---- --------------------- ----------------------
2003 1.70 1.66
2004 1.79 1.63
2005 1.92 1.78
2006 2.09 1.86
2007 2.12 1.78
2008 2.95 2.28
2009 3.35 2.98
2010 3.31 2.12
2011 3.29 1.91
2012 3.02 2.10
2013 2.30 2.13
Source: Bloomberg. The table above presents the actual historical Dividend Yield
calculated based on the cash dividends paid on the component securities of the
NYSE Arca Equal Weighted Pharmaceutical Index(SM) (Price Return) and the SandP
500([R]) Index (Price Return) over the prior 12 months ending on the last
trading day of the month referenced above. Unlike total return indices, the
levels of price return indices do not incorporate any cash dividends paid on
their index components. See "Certain Key Terms" below for the calculation of the
Dividend Yield.
CERTAIN RISK CONSIDERATIONS: The RBS ETNs involve risks not associated with an
investment in conventional debt securities, including a possible loss of some or
all of your investment. The level of the Index must increase by an amount
sufficient to offset the aggregate investor fee applicable to the RBS ETNs in
order for you to receive at least the principal amount of your investment back
at maturity or upon early repurchase or redemption. The Index comprises
securities of a limited number of companies concentrated in the pharmaceuticals
industry, and may not be representative of an investment that provides exposure
to the pharmaceutical industry as a whole. Even though the RBS ETNs are listed
on the NYSE Arca, a trading market may not develop and the liquidity of the RBS
ETNs may be limited and/or vary over time, as RBS plc is not required to
maintain any listing of the RBS ETNs. The RBS ETNs are not principal protected
and do not pay interest. The intraday indicative value and the daily redemption
value are not the same as the trading price or market price of the RBS ETNs in
the secondary market. Any payment on the RBS ETNs is subject to the ability of
RBS plc, as the issuer, and RBS Group, as the guarantor, to pay their respective
obligations when they become due. You should carefully consider whether the RBS
ETNs are suited to your particular circumstances before you decide to purchase
them. We urge you to consult with your investment, legal, accounting, tax and
other advisors with respect to any investment in the RBS ETNs.
The RBS ETNs are not suitable for all investors. You should carefully read the
relevant pricing supplement and prospectus, including the more detailed
explanation of the risks involved in any investment in the RBS ETNs as described
in the "Risk Factors" section of the pricing supplement, before investing.
CERTAIN KEY TERMS: The P/E Ratio, P/B Ratio and Dividend Yield information are
sourced from Bloomberg. P/E Ratio is derived by dividing the closing level of
the Price Return Index as of the specified date by the sum of the trailing
12-month earnings per share of the securities comprising the Price Return Index.
P/B Ratio is derived by dividing the closing level of the Price Return Index as
of the specified date by the sum of the book value per share of the securities
comprising the Price Return Index as of that date. Dividend Yield means the sum
of the gross dividends paid on the securities comprising the Price Return Index
over the prior 12 months divided by the closing level of the Price Return Index
as of the specified date; however, unlike the Index (which is a total return
index), the level of the Price Return Index does not incorporate cash dividends
paid on its components. IMPORTANT INFORMATION: RBS plc and RBS Group have filed
a registration statement (including a prospectus) with the U.S. Securities and
Exchange Commission (SEC) for the offering of RBS ETNs to which this
communication relates. Before you invest in any RBS ETNs, you should read the
prospectus in that registration statement and other documents that have been
filed by RBS plc and RBS Group with the SEC for more complete information about
RBS plc and RBS Group, and the offering. You may get these documents for free by
visiting EDGAR on the SEC's web site at www.sec.gov. Alternatively, RBS plc, RBS
Securities Inc. (RBSSI) or any dealer participating in the offering will arrange
to send you the prospectus and the pricing supplement at no charge if you
request it by calling 1-855-RBS-ETPS (toll-free).
RECENT DEVELOPMENTS: On June 13, 2013, we announced that we would be exiting the
structured retail investor products business that is responsible for issuing and
maintaining the RBS ETNs, and that we expect to move such business into a runoff
organization which will go through a process of restructuring and / or business
sales (the "RBS Retail Investor Products Exit Plan"). The implementation of the
RBS Retail Investor Products Exit Plan increases the likelihood that the RBS
ETNs will be redeemed by us prior to maturity. We plan to continue to maintain
and issue the RBS ETNs, but our plans could change. We cannot give you any
assurances as to any minimum period of time that you may hold the RBS ETNs
before we redeem them at our option. The NYSE Arca Equal Weighted Pharmaceutical
Index(SM)[]and the NYSE Arca Equal Weighted Pharmaceutical Total Return
Index(SM)[]are service marks[]of NYSE Euronext or its affiliates (NYSE Euronext)
and have been licensed for use by The Royal Bank of Scotland plc and RBS
Securities, Inc. (Licensees) in connection with[]the RBS ETNS. Neither the
Licensees nor the RBS ETNs is sponsored, endorsed, sold or promoted by NYSE
Euronext. NYSE Euronext makes no representations or warranties regarding
the[]RBS ETNs or the ability of the NYSE Arca Equal Weighted Pharmaceutical
Index(SM)[]or the[]NYSE Arca Equal
Weighted Pharmaceutical Total Return Index(SM) to track general stock market
performance. NYSE EURONEXT MAKES NO EXPRESS OR IMPLIED WARRANTIES, AND HEREBY
EXPRESSLY DISCLAIMS ALL WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A
PARTICULAR PURPOSE WITH RESPECT TO THE NYSE ARCA EQUAL WEIGHTED PHARMACEUTICAL
INDEX(SM)[]OR THE NYSE ARCA EQUAL WEIGHTED PHARMACEUTICAL TOTAL RETURN
INDEX(SM)[]OR ANY DATA INCLUDED THEREIN. IN NO EVENT SHALL NYSE EURONEXT HAVE
ANY LIABILITY FOR ANY SPECIAL, PUNITIVE, INDIRECT, OR CONSEQUENTIAL DAMAGES
(INCLUDING LOST PROFITS), EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES.
Copyright [C] 2013 RBS Securities Inc. All rights reserved. RBS Securities Inc.,
a U.S. registered broker-dealer, member of FINRA and SIPC, is an indirect
wholly-owned subsidiary of The Royal Bank of Scotland plc.
[GRAPHIC OMITTED]
www.rbs.com/etnUS | TOLL FREE: 855-RBS-ETPS | Not FDIC Insured. May Lose Value.
Dated July 16, 2013
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