1. An Economic Update Australian Unity Investments Claire Harding – Head of Portfolio Management

2. Crisis averted Real GDP Growth (year on year) Source: RBA

3. But it wasn’t easy Exports - Asia Source: RBA

4. Australia - full steam ahead Source: RBA Australian GDP growth (% p.a.) Contribution to GDP (% year to Sept. 2009)

5. …and there is lot of steam Australian Exports Source: RBA

6. Inflation under control … Consumer Price Inflation (%) Underlying Inflation (% year ended) Source: RBA

7. … for now WagesAustralian Dollar and TWI Source: RBA

8. Global recovery… Industrial Production (% p.a., quarter on quarter) Source: IMF Merchandise Exports (% p.a., quarter on quarter)

9. … buoyed by policy stimulus Policy Interest Rates Source: RBA

10. In Australia Australian Cash RatesRBA Official Reserve Assets Source: RBA

11. But, in the US … Source: BCA Research Not as stimulative as you might think

12. … and fiscal G-20 Stimulus Plans Source: Brookings Institute US$ bn

13. An aside on fiscal policy Stimulus Payout - USReal GDP Growth Contribution Source: Moody’s Economy.com

14. Challenges - where there is smoke… Unemployment Source: RBA

15. …there may be fire Total Job VacanciesEmployment Composition

16. A consumer confidence game… Consumers – household assets Source: RBA

17. …where the stakes are high… Consumers - spending Source: RBA

18. very high Sources: BEA, FRB, Moody’s Economy.com US Consumers underwritten by Treasury US$ trillionIndex

19. Challenge - Public Finances Government Financial Liabilities % of 2008 GDP, (net) Source: RBA Bonds on Issue in Australia

20. Financial recessions are different Source: BCA Research Global output Peak at t=0, quarters following Deleveraging has barely begun

21. Prognosis 2010

22. Outlook – what to expect Source: IMF Global GDP Growth (% p.a., quarter on quarter)

23.  Private funding problems have been transferred to the public sector- but they still exist  The global economy remains vulnerable to: – Deluge of public debt – Inflation issues – Rising cost of capital – Sovereign debt contagion- e.g. Greece & Ireland Outlook – what to expect

24. Outlook – how to invest  Market expectations: – Volatility – Equity market raisings – Credit ratings downgrades, a rapid rise in defaults – Dilution and defaults to weigh on equity markets  Grab certainty where you can – Income – Inflation – AUD  Don’t forget the downside

25. Asset management capabilities

26. Important information This information has been prepared as general information and for use by financial advisers only. It does not take into account your circumstances. While every care has been taken in the preparation of this information, we cannot warranty its accuracy or completence and we reserve the right to make corrections. Information can change over time.