1. Thomas Hopper & Partners Client Update Seminar Philip Parker & Tim Riordan 9 June 2010 Parker Asset Management Ltd Suite 1302, Level 13, 55 Clarence Street Sydney NSW 2000 GPO Box 135, Sydney NSW 2001 Tel: (61 2) 9299 5499 Fax: (61 2) 9299 5988 Email: invest@parkerasset.com.au AFS L No. 238364 1

2. Parker Asset Management Who are we?  Independent Fund Manager established in 1999  2 investment decision makers  4 admin professionals What do we do?  Portfolio Management  Public Unit Trust Management – launched 1994  Discretionary Private Portfolios Management - superfunds (diy), company, family trusts and individual portfolios What do clients get?  Personal Fund Manager with International Experience  Individual Portfolio Management, or  Public Unlisted Managed Fund – Parker Enhanced Leaders Trust (PELT) Parker Asset Management Ltd GPO Box 135, Sydney NSW 2001 Tel: (61 2) 9299 5499 Fax: (61 2) 9299 5988 Email: invest@parkerasset.com.au AFS L No. 238364 2

3. Investment Team Experience Philip Parker, BA 25 yrs Founder, managing director, chief investment officer Tim Riordan, CFA, FRM 8 yrs Analyst Experience Parker Asset Management Ltd GPO Box 135, Sydney NSW 2001 Tel: (61 2) 9299 5499 Fax: (61 2) 9299 5988 Email: invest@parkerasset.com.au AFS L No. 238364 3

4. 1.Market Performance (History) 2.Current Economy And Market Update 3.Our Methodology 4.Your Investments (Keeping You Informed) 5.Our Performance Content 4

5. Which countries are the following? 1. Market Performance (History) 5

6. A. SOURCE: ELROY DIMSON, PAUL MARSH AND MIKE STAUNTON, CREDIT SUISSE GLOBAL INVESTMENT RETURNS YEARBOOK 2010 1. Market Performance (History) 6

7. B. SOURCE: ELROY DIMSON, PAUL MARSH AND MIKE STAUNTON, CREDIT SUISSE GLOBAL INVESTMENT RETURNS YEARBOOK 2010 1. Market Performance (History) 7

8. C. SOURCE: ELROY DIMSON, PAUL MARSH AND MIKE STAUNTON, CREDIT SUISSE GLOBAL INVESTMENT RETURNS YEARBOOK 2010 1. Market Performance (History) 8

9. D. SOURCE: ELROY DIMSON, PAUL MARSH AND MIKE STAUNTON, CREDIT SUISSE GLOBAL INVESTMENT RETURNS YEARBOOK 2010 1. Market Performance (History) 9

10. Let’s uncover the truth… 1. Market Performance (History) 10

11. Australia SOURCE: ELROY DIMSON, PAUL MARSH AND MIKE STAUNTON, CREDIT SUISSE GLOBAL INVESTMENT RETURNS YEARBOOK 2010 1. Market Performance (History) 11

12. South Africa SOURCE: ELROY DIMSON, PAUL MARSH AND MIKE STAUNTON, CREDIT SUISSE GLOBAL INVESTMENT RETURNS YEARBOOK 2010 1. Market Performance (History) 12

13. United States SOURCE: ELROY DIMSON, PAUL MARSH AND MIKE STAUNTON, CREDIT SUISSE GLOBAL INVESTMENT RETURNS YEARBOOK 2010 1. Market Performance (History) 13

14. Germany SOURCE: ELROY DIMSON, PAUL MARSH AND MIKE STAUNTON, CREDIT SUISSE GLOBAL INVESTMET RETURNS YEARBOOK 2010 1. Market Performance (History) 14

15. Australian equities/shares Higher returns, lower risk 4x USA and 114x Germany! SO DON’T BELIEVE IT WHEN YOU ARE TOLD: “THE HIGHER THE RETURN, THE HIGHER THE RISK” 1. Market Performance (History) 15

16. 2. Current Economic And Market Update 16

17. 2. Current Economic And Market Update Macro Drivers A. Government Deficits and Debt Levels 17 SOURCE: BCA

18. 2. Current Economic And Market Update - Debt levels circa 100% of GDP - Deficits unsustainable 18 SOURCE: BCA

19. 2. Current Economic And Market Update A Return To The Gold Standard? 19 SOURCE: BCA

20. 2. Current Economic And Market Update Euroland Slowdown Spain is a major risk 20 SOURCE: GOLDMAN SACHS

21. 2. Current Economic And Market Update Insurance for Euro Government Debt, high and rising 21 SOURCE: GOLDMAN SACHS

22. 2. Current Economic And Market Update China Continues to tighten financial conditions… 22 SOURCE: GOLDMAN SACHS

23. 2. Current Economic And Market Update …however electricity production growth is above average 23 SOURCE: BLOOMBERG

24. 2. Current Economic And Market Update The Equity Market Rollercoaster! 24 SOURCE: RUSSELL INVESTMENT GROUP

25. 2. Current Economic And Market Update GFC & Recovery similar to length of 1970’s bear market → 1,000 days to go?! 25

26. 2. Current Economic And Market Update Equities are cheap again… 26

27. 2. Current Economic And Market Update …but volatility is a rising concern 27 SOURCE: BLOOMBERG

28. 2. Current Economic And Market Update Australian public company balance sheets are healthier than pre-GFC 28

29. 2. Current Economic And Market Update 29 Resources – BHP – Consistently delivering above peer performance, until the RSPT? Financials – Commonwealth Bank – The bank to have owned since the GFC

30. 2. Current Economic And Market Update 30 Energy – Woodside – Volatile ride but going in the right direction Consumer staples – Woolworths – Consistent & predictable outperformance

31. 2. Current Economic And Market Update 31 Utilities – AGL – Building confidence around growth potential Healthcare – CSL – Plasma pays

32. 3. Our Methodology Company analysis 32

33. 3. Our Methodology 33

34. 3. Our Methodology 34

35. Keeping You Informed Emails – proactive communication (see handout) Quarterly update – portfolio Complete annual performance reports 3-4 annual face-to-face meetings for investment updates 4.Your Investments 35

36. 5.Our Performance Parker Clients 14 Year Full Discretionary Portfolio 36