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Historical Performance (%) -- as of 6/30/2013
annualized
since
RBS etn
YEAR-TO- annualized annualized annualized
inception
3-month (%) DATE (%) 1-year (%) 3-year (%) 5-year (%)
(10/21/11) (%)
---------------------------------------------------------------------- ----------- -------- ----------- ---------- -----------
m
RBS Global Big Pharma ETN Daily Redemption Value(1) 0.48 12.89 20.59 -- --
19.16
NYSE Arca Equal Weighted Pharmaceutical Total Return Index(SM) 0.63 13.23 21.31 18.32 11.88
19.88
NYSE Arca Equal Weighted Pharmaceutical Index(SM) (Price Return Index) 0.16 11.82 18.95 15.60 9.13
17.28
SandP 500([R]) Index (Price Return) 2.36 12.63 17.92 15.94 4.65
16.67
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
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.
www. rbs.com/etnUS | TOLL FREE: 855-RBS-ETPS | Not FDIC Insured. May Lose
Value.
Dated August 27, 2013
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