1

Fishing Net or

Fishing Line?

Equity Debt

Personal Assets

Investment Properties

Life TPD Trauma Income Business / Key Man

Tax

How much income do you Want annually at Retirement

_______________________

DebtMortgage

Personal

Credit Cards

IncomeC2

Family Tax Benefits

Shares / Dividends

Pension

Other

C1

Rent Total

Passive Investments

Investment Mortgages

Cash

Fixed Interest

Shares

Other

INCOME

Mortgage Type Interest Rate Amount

Mortgage Type Interest Rate Amount

Mortgage Type Interest Rate Amount

Mortgage Type Interest Rate Amount

Liabilities

Value

Superannuation

Superannuation

Client name:

Accumulator Pre - Retiree Retirement

Estate Planning

DeathCar

Uni

Rent

Work

SavingsSpending

Home Marriage

Kids

FamilyAssistance

RenovationSale

Invest property

Portfolio const

Super Panic

TTR

Debt reduction

Pers Conts

Income

Pension

HolidayPanic

Family

18 - 40 41 - 54 55 - 65 66 - +

Where do you fit in the advice line

What do clients want from you?

4

What do clients want from you?

What clients want from a service provider | What is your point of difference ?

1. Help me improve my financial situation & the burden debt plays

2. Take Control

3. Protect me and advise me

4. Give me a better experience dealing with your firm

5. Teach me

What are your clients asking for?

Point 1: 90% of brokers never contact client once settlement is finalised!Point 2: 93% of clients cannot remember their brokers face 3 months after the mortgage is written.

Client Retention Issues Case Study (Slide 1)

Case – (Slide 1) – The Facts

Outcome: Solution will allow you to reduce the drop off rate in your client base so this never happens.

Looking at a Typical Database Clean:

600 Clients Called from clients database Wrong Numbers/Disconnected – 22.55% No Longer Client – 4.5% Remove From Database – 3.0%

Total Clients Lost – 30.05% Total Clients Responsive – 69.95% Call to Discuss new Business – 8.0% Details Updated – 69.95% Email Address Gathered – 57.0%

34%

PBM

59% 61%57% 52%57%

43%41%42% 40% 39%

17%

33%41%

32% 44%

46% 48% 53% 46% 57%

79%

9% 5% 11%4%

11% 10% 6% 14%4% 4%

Soft Drinks Life

Insurance

Long Distance

Telephone

Laundry

Detergent

Credit

CardCellular

Telephone

Home Loans Retail

Banking

Auto

Insurance

Casual

Apparel

** Source: PBMI and McKinsey Quarterly Vol. 2, 2002, Numbers may not total 100% because of rounding

Client Likelihood of repurchasing a product/service with current provider

Very

Likely

Not

Sure

Very

Unlikely

Fact: In the financial services sector an average of 7% of clients are very likely to change provider.

8

Are you really doing things different to your competitor?

Ranking of Product

Providers% of Gross Income

Product Providers

Asteron 1 14.94%

AIA 2 12.61%

TAL 3 7.95%Colonial 4 5.40%One Path 5 4.24%Colonial 1st State 6 4.09%OASIS - Wealthtrac 7 4.05%Macquarie 8 3.80%Zurich 9 2.68%Fee For Service 10 2.60%ONEPATH Life Ltd 11 2.52%IOOF 12 2.36%AMERICAN Intn'l Ass Co Aust Ltd 13 2.25%Tower Australia Limited 14 1.72%Macquarie Investment Mngt Ltd 15 1.71%BT Life Limited 16 1.67%NETWEALTH Investment Funds 17 1.58%MACQUARIE Wrap Solutions 18 1.47%AXA 19 1.41%Asteron Wealth Solutions 20 1.41%ASGARD Capital Mgnt Ltd 21 1.40%

ADVISER NUMBER 1 $ 17,108.00 AMERICAN Intn'l Ass Co Aust Ltd $ 4,506.66 AMP Limited $ - ANZ Securities Ltd $ 1,760.00 AUST Inv Exchange - Ausiex $ - BlackRock Investment Managers $ 60.04 BT Funds Mngt Ltd $ 8.91 Colonial First State Inv Ltd $ 594.52 Dealer Group Fee $ - Fee For Service $ 2,200.00 MACQUARIE Bank Limited $ 910.80 Macquarie Investment Mngt Ltd $ 1,387.56 MACQUARIE Wrap Solutions $ 4,040.75 NATIONAL Australia Bank Limited $ 1,320.00 ONEPATH Life Ltd $ 318.76

Adviser No 2 $ 13,992.88 Asteron Portfolio Service Limited $ 44.80 Fee For Service $ 2,750.00 IOOF Australia Limited $ 7,879.35 MLC Limited $ 193.27 MLC Limited - ex Aviva $ 2,667.79 Perpetual Inv Management Ltd $ 457.67

Adviser No 3 $ 286,140.37 AMP Limited $ 878.98 ASGARD Capital Mgnt Ltd $ - Asteron Life Limited $ 144.25 AUSTOCK Life Funds $ 165.00 Biz-E-News $ - Dealer Group Fee $ - Fee For Service $ 241,230.50 IOOF Australia Limited $ 1,844.97 MACQUARIE Bank Limited $ 551.51 Macquarie Investment Mngt Ltd $ 8,975.50 MACQUARIE Wrap Solutions $ 335.41 MASON Stevens Pty Ltd $ 24.91 MLC Limited - ex Aviva $ 1,329.10 ONEPATH Funds & Custodians $ 7.19 RBS Instreet Group Ltd $ 800.00 Tower Australia Limited $ 29,317.78 Zurich Australia Limited $ 535.27

Presentation to Beacon Financial Conference, FIJI

May 2013

Mason Stevens ABN

This presentation is owned by Mason Stevens Limited (ACN 141 447 207), (AFSL 351578). Any content provided in this presentation is for the purpose of providing general information only. Investment in securities including derivatives involves risk. Securities by nature have rises and falls, given that past performance is not a reliable indicator of future performance. Mason Stevens is only providing general advice in this presentation. You should consider this information, along with all of your other investments and strategies when assessing the appropriateness of the information to your individual circumstances. Mason Stevens and its associates and their respective directors and other staff each declare that they may hold interests in securities and/or earn brokerage, fees or other benefits from transactions arising as a result of information contained in this presentation. Mason Stevens ensures that the information provided in this presentation is as accurate and complete as possible but does not warrant its accuracy or reliability. Opinions and or information may change without notice and Mason Stevens is not obliged to update you if the information changes. Mason Stevens and its associated companies, authorised representatives, agents and employees exclude to the full extent by law, liability of whatever kind, including negligence, contract, fiduciary duties or otherwise, to investors or anyone else in respect of any loss or damage, including indirect or consequential loss or damage, foreseeable or not, arising from or in connection with this presentation. The relevancy of this presentation is designed to illustrate the range of products and services that Mason Stevens offer, it may also provide potential investment outcomes for a particular investment strategy. The presentation uses a broad number of simplifying assumptions to do this. As such the output of the presentation should not be taken as an indication of any actual performance of any particular investment. Any investment return(s) and yield assumptions used in the presentation do not represent a prediction or forecast of actual performance of any product or service offered by Mason Stevens Limited.

Disclaimer

12

Mason Stevens ABN

Institutional-style solutions

• Transparent, efficient and cost effective with comprehensive online reporting

Investment Choice

• Portfolio Accounts, Managed Accounts, Direct Equities, Direct Fixed Interest, and Managed Funds

Multi-asset, multi-currency offering

• Global Equities, Global Fixed Income, Global Derivatives & Cash

Boutique investment house

• Established in 2010; today circa $750m of FUM, has 26 staff

Mason Stevens

13

Mason Stevens ABN

Fixed IncomeCorporate Bonds, Kangaroo Bonds, RMBS,

Sovereign

Your Wealth

Global Equities Foreign Exchange

Global Derivatives &Commodities

TD Hub

Access Global Assets

14

Margin Lending

The Executive Team

15

PAT HANDLEY, EXECUTIVE CHAIRMAN• More than 38 years’ banking and finance experience both in Australia and the United States• Number of directorships including Suncorp-Metway, AMP and HHG• Former Executive Director and Chief Financial Officer at Westpac Banking Corporation from 1993 to 2001• Former Chairman of Nomura Securities Australia and Pacific Brands• Chief Financial Officer of Banc One Corporation (now part of JP Morgan) in the US• Currently the Director of Vantage Private Equity, Chairman of Bridgeport Energy Ltd and is one of the founders of 2020

THOMAS BIGNILL – CHIEF EXECUTIVE OFFICER • Thomas has 18 years experience in financial markets and has worked in major investment banks including Merrill

Lynch, Bankers Trust and Bell Potter building substantial private client portfolios specialising in domestic and International equities.

• Head of Equity Market Services at Next Financial in 2006 where he built a comprehensive domestic and international equities solution for both private clients and financial advisers.

• Founding member of Mason Stevens.

VINCENT HUA, CHIEF INVESTMENT OFFICER• Highly experienced trading and portfolio manager with over 19 years’ experience in the Australian and Asian markets• Former Managing Director and Head of Liquid Market Trading for Lehman Brothers (Australia), Global Head of Product

and Trading for the CBA, General Manager of Markets for Shinsei Bank in Tokyo and Head of Asset & Liability Management at Westpac

• During the past 3 years, Vincent has been involved in the private equity sector • Responsible for all the investment activities of the firm including discretionary money, advised accounts and counterparty

relationships

Mason Stevens ABN

Online anytime

16

Mason Stevens ABN

• Individualised portfolios• General portfolio advice• Opportunistic themes and ideas• Access to research• Access to IPOs• Financing solutions• Capital protection solutions

• Self-directed Portfolio Accounts• Professionally-managed

Managed Accounts• Global and domestic equities• Derivatives• Fixed income / Interest• Listed property• Cash

• 24/7 online reporting• Full tax / year-end reporting• Custody of assets• Fair tax outcomes• Complete transparency

Our offering

Client Ad

vise Invest

AdministerWe are not:

• Financial Planners

• Tax Advisors

• Accountants

• Risk Assurers

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Mason Stevens ABN

Choice of Investment Vehicles

18

Portfolio Accounts Managed Accounts Managed Funds

Comprehensive Administration Platform

Consolidated Reporting

Mason Stevens ABN

Portfolio Accounts - directed by the client or the adviser

19

Individualised approach where a portfolio is constructed to meet your clients specific risk and return objectives

Choose from our range of equity, derivative, fixed income, managed fund and cash products

Assets are held on your clients behalf in custody and there is no minimum investment requirement

View your clients investment information at anytime on our online portal

Portfolio Accounts put you and your clients in the driving seat of their investment portfolio

Mason Stevens ABN

• Portfolio Accounts

• Managed Accounts

• 24/7 online access for Advisers and clients

• Audited tax reporting

• Corporate Action management

• IPOs

• Placements

• Idea generation

• Institutional access

• Direct Fixed Income

ASIC supervised and regulated.AFSL holder with strict controls and processes to protect underlying client assets.

Access to global markets Personalised, transparent outcomes Exclusive opportunities

Unique solution

20

Mason Stevens ABN

Managed Accounts – SMA Solution

21

An investment portfolio where deicisions are made by the Portfolio Manager under a mandate

Choose from our range of portfolios managed by Mason Stevens and other specialist managers

As beneficial owner of the securities within your portfolio you achieve fairer tax outcomes and rights to all dividends and distributions

View your investment information at anytime on our online portal

Managed Accounts provide direct equity exposure but with the benefit of professional management

Mason Stevens ABN 22

What are Managed Accounts?

Defining features of managed accounts:

• Non-unitised investment account

• Held beneficially for the client• Investments managed on a discretionary or

non-discretionary basis• Mason Stevens Terminology:

• Portfolio Account – Client/Advisor Directed

• Managed Account – Mandate based

discretionary management

Mason Stevens ABN

The History of Managed Accounts

• Managed Accounts evolved over the last 20 years, primarily in the US, as an

offering for family offices to get transparency on their investments Tax efficiency

Transparency

Portfolio customisation and flexibility

Liquidity

• US $ 3 trillion is presently invested in Managed Accounts in the US, growing at

15% per annum

• Nearly five million US households use Managed Accounts

Source: HFMWeek Annual Managed Account Survey March 2011

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Mason Stevens ABN

Managed Account Features

24

Transparent

• Beneficial ownership of individual holdings

• Full visibility of underlying investments, transaction and fees

• Transaction history readily available

• 24/7 online reporting for advisers and clients

• Allow the advisor and client to be more informed

Mason Stevens ABN

Managed Accounts Features

25

Scalable

• Technology solution enabling you to offer a directshare offering across your broader client base.

• Outsourced administration solution utilising the benefits of the custodian

• Avoid the inherent issues of traditional HIN based solutions

Mason Stevens ABN

Managed Accounts features

26

Investment options• Domestic and International Equities

• Plus:

• Fixed interest & hybrids

• Derivative overlays

• Listed property trusts

• Managed Funds

• Margin lending

• Managed models of unit trusts

Mason Stevens ABN

Managed Accounts Features

27

Portable

• Direct in-specie transfer in or out

• No change of beneficial owner

• Easily switch between investments• Only realise those stocks that are not

common

Mason Stevens ABN 28

Managed Accounts features

Tax & investment efficiencies

• No inheritance of other investor’s capital gains

• In-specie transfers without CGT events enable customisation & flexibility

• Realised losses available to investors

• Enables accumulation & capital drawdown strategies in direct shares

Mason Stevens ABN 29

Managed Accounts features

Model Portfolios

• Range of investment strategies, managers

• Internal & external model managers

• As security weightings from model manager change, the SMA provider automatically rebalances each investors portfolio to reflect the changes

• Multiple asset classes covered:• Equities• International Equities• Bonds• Managed Funds• ETF• Cash

Mason Stevens ABN

Managed Account Features

30

Administration• Single HIN – all securities held by a custodian

• Trades, corporate actions & income/distributions by aggregated electronic processes

• Highly efficient hence cheaper than unit trusts

• Highly scalable

Mason Stevens ABN

The best of both worlds

31

Benefits Broker Managed Accounts

Managed Funds

Beneficial Ownership Professionally Managed Transparent investment Tax Efficient In specie flexibility Single licensing Consolidated reporting Cost effective No embedded CGT Transactions confirmed daily

Mason Stevens ABN

Global, multi asset managed accounts

32

International Equities

Magellan Global Equity Model Portfolio

Small/mid capAustralian Equities

Bennelong Ex-20

Large cap Australian Equities

Blue Chip Income Equities Model Portfolio

Fixed Income

Mason Stevens Credit Fund

Blue Chip Growth Equities Model Portfolio

Blue Chip Small Caps Model Portfolio

Mason Stevens ABN

Asset Allocation, Growth Conservative and Balanced

33

Beacon Financial Asset Allocation Committee

Australian Equities International Equities Fixed Interest Cash

G 50% 40% 10% 0%

C 30% 25% 45% 5%

B 35% 30% 35% 5%

Mason Stevens ABN

Sample Australian Equities Portfolio offering

34

Australian Equities

Blue Chip Asset Management

Large Cap equities Growth return

Bennelong Ex 20 Portfolio Exposure outside the ASX 20

Blue Chip Asset Management

Yield focus large caps Income style returns

Mason Stevens ABN 35

Equities Fixed Interest/Cash Property

SMSF Offering

Yield Yield

Mason Stevens ABN

Questions

36