1. MACQUARIE ADVISER SERVICES Risk, Return and finding the right balance March 2008

2. MACQUARIE ADVISER SERVICE PRESENTATION FOOTER – AUGUST 20082 Agenda The trade off How to manage risk Why good advice makes a difference Questions

3. MACQUARIE ADVISER SERVICE PRESENTATION FOOTER – AUGUST 20083 The Trade-off….risk or return? Many focus on maximum return without measuring risk. Others worry about losing money and avoid risk altogether. FACT: Risk and return cannot be separated. BUT - good risk management may capture a higher return for the level of risk you choose.

4. MACQUARIE ADVISER SERVICE PRESENTATION FOOTER – AUGUST 20084 Not all risk is bad All investment involves risk. Distinguishing between strong, long-term potential and poor quality investments is key. The type of risk of you take explains the kind of returns you can expect.

5. MACQUARIE ADVISER SERVICE PRESENTATION FOOTER – AUGUST 20085 Risk changes over time The amount of risk you take will depend significantly on how long you are investing for. The sharemarket is a great example: –Day trading can be highly profitable but its volatile, so your wealth is at greater risk. –Medium to long term investment, say five years or more, has proven to be far more effective at growing capital.

6. MACQUARIE ADVISER SERVICE Make time your friend PRESENTATION FOOTER – AUGUST 20086

7. MACQUARIE ADVISER SERVICE PRESENTATION FOOTER – AUGUST 20087 Why not taking risks is risky By not exposing yourself to market risk you may be reducing your wealth over time. You need to grow your savings at the same rate (at least) as inflation – otherwise your money is actually worth LESS. Without exposure to growth assets (shares/property), you risk missing the type of global developments which grow your capital (China, resources, the internet).

8. MACQUARIE ADVISER SERVICE PRESENTATION FOOTER – AUGUST 20088 Different people – different risk How much risk? It’s about You. YOUNG – time to seek long term capital growth. FAMILY – hardworking investments in portfolio balanced to cope if your circumstances change. RETIREE – still need growth to protect standard of living as you age.

9. MACQUARIE ADVISER SERVICE PRESENTATION FOOTER – AUGUST 20089 How to manage risk Have a goal - it will keep you focused. Diversify – to protect your capital and capture wider opportunities. Don’t forget to balance and rebalance – re-assess regularly. Work to a time frame – when will you need the money? Get GOOD ADVICE…..!!!

10. MACQUARIE ADVISER SERVICE PRESENTATION FOOTER – AUGUST 200810

11. MACQUARIE ADVISER SERVICE PRESENTATION FOOTER – AUGUST 200811 Remove emotion from investing When it is your money it’s hard to let go. Are you driven by fear of losing or greed for more return? Many buy during strong growth and sell during tough times - emotional reactions to market news. Buying high + selling low = eroding wealth.

12. MACQUARIE ADVISER SERVICE PRESENTATION FOOTER – AUGUST 200812 Monitoring of markets and managers Financial Advisers monitor markets and products constantly – so you don’t have to. Intelligent and relevant diversification Diversification is more than just allocating money across a mix of assets – it’s a function of your risk profile. A Financial Adviser can help you combine products to maximise return for a given level of risk.

13. MACQUARIE ADVISER SERVICE PRESENTATION FOOTER – AUGUST 200813 How to get started Before calling a Financial Adviser consider …. –Your goals and objectives – what do you want. –Your investment horizon – how long have you got? –Your assets and liabilities – determine where they are. Then get good advice that will help you generate the best return for an acceptable level of risk.

14. MACQUARIE ADVISER SERVICE PRESENTATION FOOTER – AUGUST 200814 Ask Macquarie Any Questions?