Premium Portfolio Service (PPS) Presentation to the Principals Premium Wealth Management 31 August 2012 Michael Fogarty & Rodney Brown

How it works Investment Menu (quasi APL) Full transaction capability Other assets E.g. Direct property PWM Model portfolios CashIMAs Listed securities incl. ETFs Managed funds Term deposits Comprehensive Investment Reporting Valuation & asset allocation incorporated into reporting

Margin enhancement Wrap 52bps 100bps Premium Portfolio Service Admin Fee Investment Manager Fee Adviser Fee 32bps 60bps 100bps Fee type 252bps Total cost to client 192bps * Based on portfolio size of $500,000

What’s in it for Premium?  Repositions the PWM business around a fee for service based model  Extracts greater margin for the dealer from existing processes and relationships  Significant revenue and profit generation Transitions PWM from a “co-operative” to a business Increases valuation of the PWM business to enhance shareholder value Increases capacity to pay dividends Additional income to pay for increased dealer group services (adviser support, para-planning, marketing, insurance etc) and conferences  A unique value proposition to attract new advisers to the group and to differentiate our advice practices from competitors.  Client portability within member firms and dealer group will assist with succession  Reduced compliance concerns  Fully branded service offering

What’s in it for Premium Advisers?  Improved management of client portfolios Enables decisions to be acted upon quickly where market conditions dictate Increased practice efficiency Use of model portfolios and IMAs means advisers don’t need to produce ROAs to make changes to client portfolios Allows more time to meet with clients & provide strategic advice More time for new business generation Less time spent on compliance and admin  Scalable solution increasing capacity to service more clients with little extra cost  Client portability assists with succession  Eliminates reliance upon platform rebates  Custody for portfolio liquidity, fees and corporate actions

What’s in it for Clients?  All the benefits of direct ownership – dividends, franking credits etc  Transparency – everything is visible and accountable  Professional portfolio management  Maintain unique tax position – flexibility regarding tax methodology chosen  Reduced fees  Portability – clients can in-specie securities and managed funds into and out of the service and between portfolios without triggering a CGT event

Progress Update  Ongoing discussions and negotiations with HUB24  Structure established (Premium Investment Management Pty Ltd)  Investment Committee reconstituted  Legal agreements being reviewed by PWM lawyers  Model portfolios developed and ratified by the Investment Committee

Still To Do  Legal agreements executed  Model portfolios to be reviewed by Zenith and signed off by PWM IC  Dealer negotiates with fund managers directly (enables dealer to achieve sharper mandate pricing from fund managers)  Branded documentation (white label PDS and short form PDS for models)  Branded website portal, branded reporting, branded welcome and password letters, application form etc  Training, rollout and transition of clients  Launch date – 1 December 2012

Structure Premium Wealth Management Limited AFSL holder & HUB 24 badge agreement Premium Accounting Group Pty Ltd Premium Asset Management Pty Ltd Stake in Premium China Fund Premium Investment Management Pty Ltd CAR of PWM – manager of funds and portfolios Stake in Emerald Club Limited

Model Portfolios INCOME ASSETS Australian Cash Macquarie Cash Management Account Australian Fixed Interest BlackRock Indexed Australian Bond Fund International Fixed Interest PIMCO EQT Global Bond Fund Alternative Fixed Interest Macquarie Income Opportunities Fund Total Income Assets GROWTH ASSETS Australian Shares S&P/ASX 20 Portfolio Dalton Nicol Reid Australian Equites High Conviction Portfolio IML Australian Share Fund Ausbil Australian Emerging Leaders Portfolio International Shares iShares S&P Global 100 ETF Magellan Global Fund Walter Scott Global Equity Fund (Hedged) IFP Global Franchise Fund (Hedged) Premium Asia Fund Australian Property Vanguard Property Securities Index ETF Cromwell Phoenix Property Securities Fund International Property ING Wholesale Global Property Securities Fund Alternatives Winton Global Alpha Fund Magellan Infrastructure Fund AQR Wholesale DELTA Fund Total Growth Assets

Model Portfolios Asset ClassConservativeModerately Conservative BalancedGrowthHigh Growth Income Assets 85%70%50%30%15% Growth Assets 15%30%50%70%85% Total100% Weighted MER 0.29%0.40%0.49%0.65%0.78% Q: Do we need an additional model e.g. for a pension client? Q: Do we need any additional risk profile models e.g. 40/60? Q: Do you want to construct your own model portfolio/s?

Thank You Questions?