LM - The global pathway to

Australian investment solutions

Things you may not know about LM

> Founded in 1998

> LM is an Australian Fund Manager

> Registered with the Australian Securities & Investment Commission

(ASIC) as a Responsible Entity & Australian Financial Services

Licensee

> LM manages Australian assets with a gross realisation value in excess

of AUD 3 billion

> LM is privately owned and first registered as a Responsible Entity in

1998

> All funds offered and managed by LM carry Australian assets only

> LM is an Australian fund specialist

Things you may not know about LM

> 130 people

> 8 offices

> Operates worldwide in more than 70 countries

> Invested in excess of AUD 3 billion into the Australian property

market since inception

> Head Office for LM is on the Gold Coast in Queensland, Australia

> LM clients worldwide are only licensed intermediaries, we do not

accept investment from the public directly in any country

> Our expertise is in Australian property and funds management

Things you may not know about LM

> Deutsche Bank manages our expertise in our structured products and

issues the Capital Guarantee for the same

> Ernst & Young are our Fund auditors and accountants

> PKF are our company accountants

> LM Income Funds generally outperform Bank Cash rates by 2.00%pa

to 5.00%pa

LM Offices

London

Dubai

Johannesburg

Hong Kong

Bangkok

Gold Coast Sydney

Queenstown

Gold Coast Head Office

LM as a Responsible Entity

> Licensed under the Managed Investments Act (1998)

> Forms part of Corporations Law in Australia

> Regulated by ASIC (Australian Securities and Investment

Commission)

> Australia is recognised for one of the best financial systems in the

world for regulation

> Adheres to stringent requirements and conditions which are

audited annually

> LM must be a public company (LM not listed)

> Meets audit and compliance requirements

LM as a Responsible Entity

> A minimum Net Tangible Assets (NTA) of AUD 5 million, subject to

annual audit and reporting to ASIC is held by LM

> Responsible Officers with necessary education and specific

practical experience in each sector are present within the Company

> PDS’, Constitution and Compliance Plan all lodged with regulator

> Contractual agreement between the investor and fund manager

takes place upon the signing of an application

About Australia: Can this dream run continue?

Australian Economy > Remarkably resilient

> Strong economic growth for more than 21 years

> World record

> Well above world average

> Well above other developed economies

> Only developed economy not to go into recession

> Low sovereign debt levels

> One fifth of the level of Canada’s (often considered a safe haven).

Canada 36.3% > Australia 8.3% (See Global Comparison slide).

> Room to move if required

> Well equipped to weather offshore conditions

Real GDP Growth by Country: 2004-2012

F = Forecast; 1 Based on market exchange rates.

Sources: Austrade Benchmark Report 2011, International Monetary Fund, World Economic Outlook (WEO) Database, April 2011; WEO Update June 2011.

World’s 13th Largest Economy

13. Australia 2.1%

F = Forecast;

Sources: Austrade Benchmark Report 2011, International Monetary Fund, World Economic Outlook (WEO) Database, April 2011.

Australian Economy

More to it than just the mining sector

Source: Australian Bureau of Statistics.

Australian Economy: Financial Services

> One of the largest funds management industries worldwide

> Largest sector in the Australian economy (11%)

> Compulsory superannuation (9% annually from employer)

> Building wealth for retirement

> AUD sixth most traded currency

> AUD/USD fourth most traded currency pair

> Second largest REIT market after the US

> Strong banking sector. Australia has 4 of the 9 top-rated

banks in the world (AA-)

Can this Dream Run Continue?

> Australia boasts strong financial fundamentals

> Interest rates – room for monetary expansion

> Solid fiscal finances – room for fiscal expansion

> See following slide

Global Comparison:

General Government Net Debt 2012

Average 64.4

Advanced 73.3

Emerging 25.7

Sources: International Monetary Fund (IMF) World Economic and Financial Surveys, Fiscal Monitor, April 2011, Statistical Table 8;

Austrade Benchmark Report 2011.

Can this Dream Run Continue?

> Interest rates – room for monetary expansion

> Solid fiscal finances – room for fiscal expansion

> Links to Asia

> See following two slides

Australia On the Doorstep of One of the Fastest Growing Regions

Note: ‘Developing Asia’ includes Afghanistan, Republic of Bangladesh, Bhutan, Brunei Darussalam, Cambodia, China, Fiji, India, Indonesia, Kiribati, Laos,

Malaysia, Maldives, Myanmar, Nepal, Pakistan, Papua New Guinea, Philippines, Samoa, Solomon Islands, Sri Lanka, Thailand, Timor-Leste, Tonga,

Vanuatu, and Vietnam. ‘Newly industrialised Asian economies’ include Hong Kong, Korea, Singapore & Taiwan.

Source: Calculations based on IMF World Economic Outlook (WEO), April 2010 and IMF WEO Update, July 2010.

Australia’s Merchandise Exports By Country

CAGR = Compound Annual Growth Rate. FOB = Free on Board. 1 Financial ending June.

Sources: Australian Bureau of Statistics, Cat No. 5368.0, International Trade in Goods and Services, Australia (Released 3 August 2011), Table 14a;

Austrade Benchmark Report 2011.

Can this Dream Run Continue?

> Interest rates – room for monetary expansion

> Solid fiscal finances – room for fiscal expansion

> Links to Asia

> Private sector capital investment of AUD 500 billion over the next 5 to

10 years

> Low unemployment

> Effective immigration policy

> Immigrants required to bring necessary skills to Australian workforce or

money.

> Certain skilled immigrants must inhabit specific geographical locations for a

period of time to continue steady growth of all regions

LM Australian Income Fund Conservative Income

LM Australian Income Fund Current Net Indicative Rates

7 Day

Flexi 1 Year 2 Years 3 Years 4 Years 5 Years

GBP 3.50%pa 4.00%pa 4.25%pa 4.50%pa 4.75%pa 5.00%pa

EUR 3.00%pa 4.00%pa 4.25%pa 4.50%pa 4.75%pa 5.00%pa

USD 2.00%pa 2.25%pa 2.50%pa 2.75%pa 3.00%pa 3.25%pa

AUD 5.50%pa 6.00%pa 6.25%pa 6.50%pa 6.75%pa 7.00%pa

Rates are net of all fund fees and expenses, and 10% non-resident withholding tax.

LM Australian Income Fund

Rates are net of all fund fees and expenses, and 10% non-resident withholding tax.

Rates that have Consistently Outperformed Cash

> Rates are current as at today based on the portfolio model of the

Fund

> Rates are intended to outperform cash in various currencies with

the longer terms attracting a greater premium

> The rates are not guaranteed or fixed for the term

> The Fund has a track record of delivering its target

outperformance of cash in each and every year since inception

> Global Portfolio Bonds

> Personal investment

LM Australian Income Fund

Debt Securities

Conservative lending only exposure:

> Average LVR 65.00%

> Maximum LVR 75.00% property value

> Target allocation benchmark:

> 5.00% -10.00% cash

> 85.00% - 95.00% mortgages

Loan Rate:

> 10.00%pa – 12.00%pa

Competing with Australian Banks

LM Australian Income Fund

In the Investment Portfolio

> Income and capital stability

> Availability in multi-currency so it fits all client portfolios

> Think 1 year minimum investment horizon for income

> Available for direct investment or via the bonds

> Diversity and strength of Australian property based assets:

> Economy

> Property

LM Managed Performance Fund : Enhanced Income

LM Managed Performance Fund

Enhanced Income

Fund Facts

> Fund Inception 2001

> Foreign Currency Launched 2006

> Fund Size AUD307,956,802

Ten Year Track Record

> Delivery of Forecast Income

> Delivery of Stable Unit Price

Competing with Australian Banks

LM Managed Performance Fund

In the Investment Portfolio

> Competitive income

> Availability in multi-currency so it fits all your clients

> Think 3 year minimum investment horizon for income

> Available for direct investment and via the bonds

> Diversity and strength of Australian property based assets:

> Economy

> Property

LM Managed Performance Fund

Investment Objective

> Utilises LM's specialist property expertise to actively participate in

ownership / equity like positions in Australian property based

assets, secured by a debt position

Behind the scenes it delivers, through:

> Utilisation of asset structure to realise all returns as

income/interest only (important for tax purposes)

> Target performance of 4.00%pa to 5.00%pa above cash deposit

rates

LM Managed Performance Fund

Assets

> Cash

> Loans

> Range of loan debt securities

> Equity funding with profit benefits

Competing with Australian Banks

LM Managed Performance Fund

How it Generates Enhanced Performance

A. Range of Loan Debt Securities

> Usual range of commercial and development funding

Loan – could be a first mortgage or a second behind a senior

debt funder

Adviser Fee

LM Managed Performance Fund

How it Generates Enhanced Performance

B. Ownership like Position Structured as an Income Return

> Profit Projection over 2 years: 20% -

25%

> Loan Rate = Equity / Profit over time

> Development over 2 years at 20%pa

compounding

Profit passed to Fund each year

Start 1yr 2yr

$100K $20K $44K

$100K $144K

LM Managed Performance Fund Current Net Indicative Rates

2 Years 3 Years 4 Years 5 Years

GBP 6.00%pa 7.00%pa 7.50%pa 8.00%pa

EUR 6.00%pa 7.00%pa 7.50%pa 8.00%pa

USD 4.00%pa 5.00%pa 5.50%pa 6.00%pa

AUD 7.50%pa 8.50%pa 9.00%pa 9.50%pa

Rates are net of all fund fees and expenses, and 10% non-resident withholding tax.

LM Managed Performance Fund

Rates are net of all fund fees and expenses, and 10% non-resident withholding tax.

LM Managed Performance Fund

Fund Assets as at 30 September 2012 Sector Diversification

Commercial Loans 17.23%

Retail 0.87%

Industrial 0.08%

Pre-Development Land 10.80%

Residential 66.70%

Aged Care / Retirement 4.32%

For further information, contact your LM representative; or

LM Head Office E: mail@LMaustralia.com T: +61 7 5584 4500

www.LMaustralia.com