Premium Wealth Group

FOFA and The Platform Opportunity

16th April

Darren Pettiona

Corporate Overview

Service Offering

Full Service Advisor Broking

ResearchCorporate Advisory/

ECM

IDPS Personal Super and Pension

offer

Self Managed

Super Fund offer

Group Life offered within

Super and later IDPS

Online equities platform and wholesale

stockbroking

General & personal advice

to private clients, instos and corporate

clients

Focus on servicing or covering ASX listings that are not widely

covered or where we have a contrarian view that these

companies may emerge as leaders of tomorrow

HUB24 Custodial Services

Service Provider to the Business

AdministrationExecution, Clearing

&SettlementCustody Corporate Actions Compliance

HUB24: Broad Investment Choice

Client and Product Mix circa $30 bn+ FUM

Client IDPS Retail Super

Wholesale broking

IDPS Retail Super

Wholesale broking

Ord Minnett Beauchamp

Matrix Avestra Capital

Sentry Group First Unity Wealth Mt

Premium Wealth Mgt Harts Financial

Infocus HNW

Lachlan Partners Mandalay Wealth Mgt

Equiti Private Wealth Spectrum Wealth

Elston Partners APT Strategy

Financial Force Atlas Wealth Mgt

Beresfords Gamma & Bristol Street FS

Roxburgh Securities Kerr Allan

Oxbrey Dealer Group AAA Shares

Lionsgate Safecrest

Paradigm Qi Private

Have managed funds seen their best days?

Investment in managed funds is expected to fall from 66% in 2007 to 39% in 2013

Source: Investment Trends

The Wrong Debate

SMAs vs Direct Equities

SMAs vs Managed Funds

SMAs are More Efficient than Managed Funds for Clients

Largest range of SMA portfolios in Australia with:

•Full transparency of where money is invested.

•Netting within portfolios and across clients.

•Manager transitioning – efficient switching between portfolios – can estimate CGT impact of switching portfolios.

•Tax management – dividend and buy sell certainty.

•SMA brokerage rate of 5bps + GST per transaction with a guaranteed VWAP; Brokerage hidden within managed funds.

•Lower management fees compared to managed funds.

•The ability to view your tax reports in July compared to October / November for most managed funds.

•Manufacturing flexibility.

•No inherited tax issues when compared to a unit trust.

•Sophisticated tax optimisation.

FOFA and Best Interests Duty

Fund OptionsUnitised

Management Fee (%)

Non-UnitisedManagement

Fee (%)

UP Management Fee exceeds NUP

by DifferenceUnitised Performance Fee Non-Unitised Performance Fee

Acadian Australian Equities Portfolio 1.2200% 0.6500% 0.57% NilBennelong Australian Equities Portfolio 0.9500% 0.8000% 0.15% Nil

Bennelong Concentrated Australian Equities Portfolio 0.9000% 0.7500% 0.15% 15% vs (S&P/ASX 300 plus 2% pa). 15% vs S&P ASX300

Bennelong Ex-20 Australian Equities Portfolio 0.9500% 0.8000% 0.15%15% vs (S&P ASX300 ex the S&P ASX20 Leaders)

15% vs (S&P ASX300 ex the S&P ASX20 Leaders)

Hyperion ASX 300 Australian Equities Portfolio 0.9500% 0.8250% 0.13% 16.5% vs S&P ASX300

LSC Australian Resources Hi-Alpha Portfolio 1.5375% 0.4400% 1.10%20.5% vs (S&P/ASX Small Resources plus 3% pa)

11% vs S&P/ASX Small Resources

Selector Australian Equities Portfolio 1.9000% 0.9000% 1.00%

15.375% vs the S&P/ASX All Ordinaries Index (where the absolute return of the Fund has been positive)

15% vs S&P ASX300

SG Hiscock Property Income Portfolio 0.9500% 0.5500% 0.40%16.5% vs UBS Bank Bil l Index (0+yr) Maturity (SBCBB)

SGH ICE Portfolio 1.0260% 0.7700% 0.26%15.375% vs S&P/ASX 300 plus 1.20% pa)

16.5% vs S&P ASX300

SGH20 Portfolio 1.2300% 0.5500% 0.68% 16.5% vs S&P ASX300UBS Australian Small Companies Portfolio 1.1000% 0.8000% 0.30% NilUBS HALO (High Alpha Long Term Opportunity) Portfolio 0.9000% 0.6000% 0.30% NilZurich Investments Australian Property Securities Portfolio 0.8100% 0.7700% 0.04% NilZurich Investments Australian Value Share Portfolio 0.8700% 0.8250% 0.04% Nil

Management and Performance Fee Comparison Unitised Portfolios (UP) vs Non-Unitised Portfolios (NUP)

Will Grandfathering be a lifeline?

Obvious Tensions:

•Total Costs

•Tax – Superannuation IDPS

•Investment Options

•Investment Structure

•Lower management fees compared to managed funds.

•Anti-avoidance provisions

Current Distribution of Fees pre FOFA and SMA’s

Only 127bps of 267bps charged to the client is being captured by the advisor and dealer group

* Based on a AUD500,000 IDPS portfolio

Post FOFA /SMA’s Building a sustainable dealer group

Manufacturing/Dealer Entity fee increase by 35bpsCost saving to client 35bps

* Based on a AUD500,000 IDPS portfolio

Is your business scalable and profitable?

Is this you?

200 Clients200 Relationships

5 Clients200 Relationships

Implementing Client Strategies

Implementing Client Strategies

Execute Transactions across all security types

HUB24 the enabler

Realign across risk profiles and all security types

HUB24 the enabler

Investment Manufacturing Initiative

•Develop new revenue streams for Dealer Group via product manufacturing; there are 3 options available (not mutually exclusive), these include:

Option 1: Passive Equities - Rebrand S&P indices as SMA models reprice creating margin.

Option 2: Ability to manufacture Dealer Group Active Equity SMAs in house or outsource the stock selection process to existing fund managers, research houses etc for an agreed fee.

Option 3: Build Asset Allocation / Risk Profile Model portfolios and charge margin for IP of Dealer Group in building model portfolios.

HUB24 the enabler

Investment Manufacturing Initiative

•Develop new revenue streams for Dealer Group via product manufacturing; there are 3 options available (not mutually exclusive), these include:

Option 1: Passive Equities - Rebrand S&P indices as SMA models reprice creating margin.

Option 2: Ability to manufacture Dealer Group Active Equity SMAs in house or outsource the stock selection process to existing fund managers, research houses etc for an agreed fee.

Option 3: Build Asset Allocation / Risk Profile Model portfolios and charge margin for IP of Dealer Group in building model portfolios.

Using SMAs for FOFA and Manufacturing (cont’d)

Option 1: Passive Equities – Rebrand S&P indices as SMA models reprice creating margin.

Example:

•S&P top 50 SMA – ( cost 8.25bps + 21.75 bps dealer margin ) = total cost to client 30 bps, less than a Vanguard option.

•Premium Group takes 21.75 bps revenue.

Option 2: Ability to manufacture Dealer Group Active Equity SMA’s in-house or outsource the stock selection process to existing fund managers, research houses etc for an agreed fee.

Example:

•Dealer Group equities SMA – agree to pay fund manager 50 bps + 30 bps Dealer Group margin = Total cost to client 80 bps.

•Dealer Group takes 30 bps margin.

Using SMAs for FOFA and Manufacturing (cont’d)

Option 3: Build Asset Allocation / Risk Profile Model portfolios and charge margin for IP of Dealer Group in building model portfolios.

Example:

•build 5 to 7 risk profile models.

•charge 20 bps ongoing SAA & TAA fee for constructing and rebalancing model portfolios aligned to client portfolios.

•Under our IDPS this is deemed an investment fee.

•HUB24 works with Asset consultant, research house or in-house Investment Committee to build these with the Dealer Group.

•IDPS guide permits up to 100 bps to be charged for SAA & TAA models by dealer group.

The next 12 months – What does it mean to Premium?

• HUB24 will be recognised as the industry leading utility & technology provider, incorporating all the features of a full service Wrap, plus the market leading SMA provider and also a unique online equities trading platform.

• Successfully transitioned the current pipeline of clients onto the platform supported by additional strong monthly inflows from ‘new wins’.

• Developing and delivering new financial solutions to existing and current clients including super / pension / insurance / SMSF, planning tools, International SMA’s & online equities trading through the HUB24 platform.

• Launch the online equities trading platform May 2012(HUB24MARKETS) which provides a retail and wholesale (white label) broking solution.

• Selected further expansion of the HUB24 clearing and execution services – wholesale broking opportunity.

• Ongoing investment in business systems, infrastructure and associated collateral.

• Possible further acquisitions – with continued commitment to strict acquisition filters.

Platform Usability - Upgrade

Scope

•Real Estate – Resolution optimisation, moving to a “responsive” layout, optimise layout for tablet, desktop, and wide desktop displays.

•Navigation – Menu simplification, structure improvements, bread trail, back button.

•Dashboard – Account centric operation vs rich functionality, direct account access.

•Terminology - Industry consistency.

•Graphic Design – Overviewed.

•Usability – Use of filters, ease of understanding.

HUB24 Usability Upgrade – Selected Views – Home Page

HUB24 Usability Upgrade – Selected Views – Account Summary

HUB24 Usability Upgrade – Selected Views – Window Trade

2012 Launch of Direct Equities Trading Platform

• HUB24’s proprietary online trading platform is scheduled for deployment in the first quarter of 2012.

• Ability to view statements, CMT balances, holdings, positions etc on the HUB24 platform.

• Access to the latest, intuitive, powerful web-based equities trading platform in the Australian market, via HUB24’s wholly owned subsidiary, MarketsPlus https://evolve.marketsplus.com.au

• Competitive rates and dial up brokerage available (direct competition to ETrade, CommSec & Bell Direct).

HUB24 Equities Pricing

Disclaimer

Summary informationThe material that follows is a presentation of general background information about Investorfirst Limited’s (‘INQ’) activities current at the date of the presentation, 21 February 2012. It is information given in summary form and does not purport to be complete.

Not investment adviceThis presentation is not a prospectus or a product disclosure statement under the Corporations Act 2001 (Cth) and has not been lodged with ASIC. The offer of INQ shares (‘New Shares’) to which this presentation relates complies with the requirements of section 708A(5) of the Corporations Act and a ‘cleansing notice’ complying with section 708A(5)(e) will be lodged with the ASX. The information provided in this presentation is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor. These should be considered, with or without professional advice when deciding if an investment is appropriate.

Risk of investmentAn investment in INQ shares is subject to investment and other known and unknown risks, some of which are beyond the control of INQ. INQ does not guarantee any particular rate of return or the performance of INQ nor does it guarantee the repayment of capital from INQ or any particular tax treatment.

Other jurisdictionThe New Shares may not be offered or sold in any jurisdiction other than Australia and New Zealand under the Offer, except to persons to whom such offer or sale of New Shares or distribution of this presentation is permitted under applicable law.

Forward looking statementsThis presentation contains certain forward-looking statements. The words ‘anticipate’, ‘believe’, ‘expect’, ‘project’, forecast’, ‘estimate’, ‘intend’, ‘should’, ‘could’, ‘may’, ‘target’, ‘plan’ and other similar expressions are intended to identify forward-looking statements. Indications of, and guidance on, future earnings and financial position and performance are also forward-looking statements. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of INQ, that may cause actual results to differ materially from those expressed or implied in such statements. There can be no assurance that actual outcomes will not differ materially from these statements. You should not place reliance on forward-looking statements and neither INQ nor any of its directors, employees, consultants, contractors, advisers or agents assume any obligation to update such information.

Not for distribution or release in the United StatesThis presentation has been prepared for publication in Australia and may not be distributed or released in the United States. This presentation does not constitute an offer for sale, or the solicitation of an offer to buy, any shares in the United States or in any other jurisdiction in which such an offer would be illegal, or to, or for the account or benefit of, any US Person (as defined in Regulation S under the US Securities Act of 1933, as amended). The New Shares have not been, and will not be, registered under the Securities Act or the securities laws of any state or other jurisdiction of the United States and, accordingly, may not be offered or sold in the United States or to, or for the account or benefit of, US Persons except in transactions exempt from, or not subject to, the registration requirements of such Act and applicable US state securities laws.