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1. Brought to you by

2. CURRENT BROKER ENVIRONMENT • The Global Financial Crisis has resulted in a rationalisation of the Broker industry with the following consequences: • Increase in channel conflict as the banks seek to cut independent brokers out • Loss of revenue as upfront and trailing commissions have been reduced • Banks have imposed tougher sales volume & cross-sell targets, penalties for application re-work and claw-back provisions • Greater use of the internet by customers as a research/loan application tool and the increasing influence/role of social media • Increased regulation • Entry of Planners into the Broking space

3. BROKER CHALLENGES • We understand this environment and the challenge for brokers is how to prosper and grow in the new world. The solutions include: • Addressing channel conflict • Increasing or diversifying revenue streams • Differentiating yourself • Adopting new products, services and technologies • Seeking out price advantage opportunities • Expanding customer base/demographic • Developing customer retention strategies • Proving to the customer that there is a trusted adviser role • Success will depend on the mix of the above strategies being adopted. * IFBF is a resource to assist Independent Brokers

4. CUSTOMER CHALLENGES Customers want to achieve a secure financial future but they have challenges including:

5. CUSTOMER RESPONSE • In response, customers may: • delay investing while paying off the mortgage • re-draw against the equity in the house, if the bank allows • implement savings/investment plan that requires discipline and is difficult to maintain with life’s unexpected expenses • adopt salary sacrifice, if disposable income allows • borrow, if disposable income and lifestyle allows

6. RED vs BLUE – IT’S YOUR CHOICE “Defend Current Position” “Innovate and purse new opportunities” Innovation & Value = Blue Ocean Strategy

7. MARKET OPPORTUNITY We recognise and understand these challenges. So we embarked on a journey to find a solution. This journey has taken many years as we: Looked at the products available in the market Found them inflexible Identified that these products were designed for the benefit of the bank Designed a solution that will create wealth

8. PRODUCT DESCRIPTION Aspire > is a new category of product. It’s about long term wealth accumulation, combining a property loan with investment growth through funds management. It works best for those aspiring to build capital whilst repaying their loan in a tax effective way. At the end of the day, you own your home and have an investment portfolio with no impact to your lifestyle.

9. PRODUCT DESCRIPTION GAP PROTECTION INVESTMENT PROPERTY LOAN • Covers any shortfall at loan maturity between the outstanding loan balance and the investment value. • This means you always own your home at the end of the loan term. • A customer acquires a mortgage similar to a standard home loan • Repayments are the same as for a standard home loan, i.e. no extra repayments • A portion of the repayment taken from the principal component is paid to an investment • At loan maturity there may be an outstanding loan balance. • Investment will be units in WMHL Fund - ASX300 Index Portfolio • Income from the investment is paid to the loan • All interest and fees relating to the investment are tax deductible • At maturity of the loan any outstanding loan balance may be paid for by the investment.

10. Loan amount - $500,000 Loan term - 25 years Interest rate - 6.60% Monthly repayments - $3,407.35 Your Investment Ratio - 30% of principal portion of repayment is to purchase units in WMHL Fund (ASX300 Index Portfolio) Aspire >EXAMPLE Standard Loan Repayment Aspire > Repayment

11. Aspire >EXAMPLE - OUTCOME 1. PROFIT After 25 years you have $307,000 in investments ASX300 > Outstanding = $196,000 index loan balance Aspire Investment (Growth 8%, Dividend 4%) Investment Balance $307,000 less Outstanding Loan Balance $110,000 = Principal $196,000 Interest

12. Aspire >EXAMPLE - OTHER OUTCOMES

13. MARKET RESEARCH • Qualitative Research Summary • EVERYONE would look into the product • Many would sign up NOW • Most would need to put their numbers in to ‘CHECK IT OUT’ • WORD OF MOUTH/ RECOMMENDATIONS from friends and family is important • YOUNGER PEOPLE seemed more enthused about the product than older people • Negative Feedback • “Sounds too good to be true” – out of character with bank behaviour • Uncertainty/anxiety – what happens if (when) it doesn’t go to plan • Concerns over paying more interest (if shares do not perform as expected, if it’s a more expensive loan) • Early repayment – No Gap Protection • Positive Feedback • It helps you save while you invest (in home and shares) • Perceived low or no risk (Gap Protection achieves this) • Can be understood by most • New and different from anything else on the mortgage market QUANTITATIVE MARKET RESEARCH 57%of 1,895 survey participants said YES!

14. YOUR BLUE OCEAN – CUSTOMER SEGMENTATION Net Wealth Age Private Banking Financial Planning $100k 45 Aspire >

15. Aspire > SOLUTION

16. SELLING Aspire > How will WealthMaker assist you? Sales script Marketing material, e.g. brochures Specifically designed Aspire tools, e.g. calculators Training Support from the WealthMaker team Better remuneration

17. YOUR NEXT STEPS Register Accreditation / Training Have fun “Aspiring”

18. THANK YOU! FURTHER INFORMATION Referrer Model Broker Model White Label Model Aspire > Target Customers Product Comparisons WMHL Fund – ASX300 Portfolio WMHL Fund – Gap Protection & Deposit Portfolio Aspire > and Investment Properties Investment Amounts & Fees Who is WealthMaker?