Quantum U.S.AResidential Property Fund

ever wanted to own

Quantum is offering registrations of interests in the;

Issued byQuantum Funds Management Limited

ACN 086 965 684AFSL # 237 301

The Manager will only accept investments in this Fund via a PDS which is yet to be

lodge with ASIC.

Please register your interest and read the Important Information on the back page.

Have you

residential property in the USA

This Fund is raising capital to purchase direct distressed residential property in the USA.

Fewer homes were started in 2009 than any year since World War II’(Source: ‘The State of the Nation’s Housing 2010’, The Joint Centre for Housing Studies of

Harvard University).

There has never been such a compelling time to purchase residential property in the USA.

Key Benefi ts• Direct exposure to USA residential property

• AUD v USD at record highs

• Interest rates at historic lows

• Tax eff ective investment, with tax rate expected to be below 10%

• Strong annual distributions

• Housing values have fallen by up to 75% since the peak

• Gearing – super fund compliant

1. Refer to the PDS and the assumptions used in the Forecast. This is only an estimate and may change prior to the issue of the fi nal PDS.2. After 3rd anniversary of investment and read conditions in the PDS.3. Refer to PDS, it is the Mangers intention to buy properties in 5 U.S.A. cities, however this may change prior to the issue of the fi nal PDS.

1. The acquisition of property is dependent on the total funds raised and the ability of the manager to secure debt funds to eff ect purchased of property.

• The Fund is seeking to take advantage of; i. The strength of the AUD v’s USD; ii. Low interest rate environment; iii. Signifi cant increase in bank foreclosures across the United States; iv. Steep decline in residential property values across the United States of America.• It will purchase REO (bank owned property after it has foreclosed) residential property in bulk from banks and fi nancial companies in tranches of $3-$5m at between $50-$125k per house/apartment. • The Fund will be open ended with a 10 year end date. 1

• The Fund will pay distributions semi-annually with 100% of all income generated distributed to investors.

• The primary investment strategy of the Fund will be to concentrate on investments only in; i. the ten most populous states of the Unites States; ii. only residential property assets; iii. cities that have sound economic fundamentals underpinning their economy; iv. property located in proximity to the CBD and transport infrastructure; v. single dwelling, townhouses and apartments style properties; vi. properties foreclosed at auction or directly from the bank, or distressed sellers; vii. properties that require minor capital expenditure to prepared them for rent; viii. properties located in the medium to upper end suburbs with strong rental prospects;

Attractive Returns Annual distributions targeted at 10% 1

Distributions ½ yearly

Investment Term Open ended

Liquidity 6 months 2

Tax rates Eff ective Tax rate below 10%

Expertise of Manager Investors will have the benefi t of the professional skills and commitment of a manager experienced in the management of real estate investments.

Gearing for Super Complying and self managed superannuation funds can participate in the fund and have exposure up to 70% gearing.

Diversifi cation Exposure to over 100 properties across 5 US cities 3

Risks Investors participating in this off er will have all the risks of investment associated with geared property, related borrowings and risks associated with currency movements.

Regular Reports The Manager will keep Investors informed of the progress of the Investments on a quarterly basis.

Key Investment Features

The FundQuantum is establishing an Australian back, U.S.A. Residential Property Fund, called, the “Quantum U.S.A. Residential Property Fund” (the “Fund”).

The ManagerThe Manager is part of the Quantum Group of companies, formed in 1986, and based in Sydney Australia. Quantum has successfully established over 20 real estate funds and has completed property projects with a total asset value of approximately $1 billion. Quantum operates its funds as Managed Investment Schemes (MIS) under an Australian Financial Services License (AFSL) #237301 issued to Quantum Funds Management Limited which acts as the responsible entity for these schemes. Quantum’s business incorporates wholesale property funds, property syndicates, asset management, property development, and mortgage funds. Property investments to date have been across the commercial, Industrial, retail and residential sectors.

6. Low Building activity

Residential investment, as a share of the 2009 GDP, was down to 2.4 percent, the lowest level on record since 1945. Large cuts in homebuilding have likely brought the long-term supply and demand for housing closer to a balance.Fewer homes were started in 2009 than any year since World War II’ (Source: ‘The State of the Nation’s Housing 2010’, The Joint Centre for Housing Studies of Harvard University). New home permits were also down signifi cantly. This suggests that starts will stay below normal levels for some time.

Reasons to invest

1. High level of bank foreclosures across the United States

In December 2010 there were over 257,747 foreclosures, or 1 in every 501 households received a foreclosure fi ling. Total foreclosures sit at 2.9m as at December 2010 (Source: Realty Trac).

Foreclosures by fi nancial intuitions has created nearly 3 million dwellings being foreclosed in the U.S.A., combined with historical low interest rates, low housing sales activity, low building activity with historical high AUD exchange rates, is creating a very compelling investment

opportunity to generate strong returns in residential real estate in the United States.

2. Historical High AUD v’s USD

The AUD has appreciated to its highest level in the last decade to the USD, recording a record high of 102 cents per each US dollar at the end of December 2010 (Source: Federal Reserve).

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3. Rental vacancy in residential sector

Despite the fallout in the residential markets the rental vacancy rate remains around the long term average of 9% across all US cities

This provides a unique opportunity to purchase property at auction or from bank owned property (REO) at attractive prices and lease them out at attractive yields. Rental yields are running at between 10 to 20% per annual in most major cities within the US.

Renter households grew by 3.4 million between 2004 and 2009 with the minority share of renters reaching 45 percent in 2009 (Source: US Census Bureau).

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4. Low Interest Rates

Interest rates in the United States are at the lowest recorded

rate in more than 50 years.

The average 30 year fi xed loan rate as at January 27, 2011

was off ered at 4.80% pa and the average 15 year fi xed loan

rate is 4.09% (Sourced Freddie Mac).

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30 Year Fixed Mortgage Rate 5. Steep decline in property values

In 2010, as a result of lower home prices and interest rates, the mortgage payment on a median-priced home fell below 20 percent of the average household income, the lowest level since 1971.

The high number of foreclosures provides an opportunity to purchase direct residential property at below market values and at a substantial discount to values of property in 2007. Since the peak of the residential property market in 2006 property values have fallen by $9 trillion. (Source: Bloomberg)

w w w.quantumgroup.com.au/usa02/14 - V5.00

Registration of Interest FormFax: + 61 2 8823-5281 or Email: info@quantumgroup.com.au or call 1300 360 949 or www.quantumgroup.com.au/usa

I AM INTERESTED IN FINDING OUT MORE ABOUT THE QUANTUM U.S.A. RESIDENTIAL PROPERTY FUND

• I agree that this registration does not bind me or Quantum in any way to accepting an investment in the Syndicate or Fund.• I agree to keep information provided as part of the registration process confi dential and will not copy, e-mail or deliver this information to any third party unless I have written permission from Quantum.

I WOULD BE INTERESTED IN INVESTING;

• $50 - $100,000• + $100,000• + $200,000

I ASK QUANTUM THAT:

• Register my name for an upcoming seminar and/or arrange a discussion with an adviser.

Signed:

Phone:

Name:

E-mail:

Call 1300 360 949 for more information or to attend a seminar.

Important Notice:This is only an outline of the information that is presented to potential investors via a Product Disclosure Statement (PDS). A PDS has/will be registered with the Australian Securities and Investments Commission - ASIC. Any Forecast fi gures provided in this document are estimates only and will be fully detailed in the PDS. An investor in deciding whether to lodge an expression of interest should read this preliminary report and complete the registration request. This is only an outline of the information that will be presented to potential investors via a Product Disclosure Statement (PDS).Quantum will shortly be issuing a PDS to off er you interests in the Quantum US Residential Property Fund (the Fund).You will only be able to apply to participate in the Fund by completing an application form which will accompany the PDSs. Any cast fi gures provided in this document are estimates only and will be fully detailed in the PDS. An investor in deciding whether to lodge an expression of interest should read this brochure and complete the registration request. An investor should not use this brochure to decide whether to invest in the Fund. Investments will only be off ered after an investor has received and considered a PDS, and has completed the application form found in the PDS. Investors should consider the PDS and their objectives, fi nancial situation and needs in deciding whether to acquire, or continue to hold, the product. This information has been prepared without taking into account your objectives, fi nancial situation or needs. Should you wish to receive a copy of a PDS for the Fund, please complete the above registration form.

Issued by; Quantum Funds Management Limited, ACN 086 965 684, AFSL number 237301Distributed by: Blackstone Securities (Aust) Pty Ltd ACN 122 396 258 ASFL# 307 396

Phone: 1300 360 949, www.quantumgroup.com.au, e-mail: info@quantumgroup.com.auLevel 24, Grosvenor Place, 225 George Street, SYDNEY NSW 2000© This document may not be copied, used, reproduced or otherwise distributed or circulated without the prior written consent of Quantum Funds Management Limited.