Australian Dealer Groups can now build bespoke fund products with this outsourcing solution.....

1. MacDonald Asset Consulting Pty Ltd ‘MAC’ – established 1994
www.macassetconsulting.com
Member of VanMac Group Pty Ltd ABN: 84 100 794 901
Copyright 2016. All Rights Reserved.
Commercial and in Confidence

2. ‘Dealer Group Equity Capital’ -
Overview
 Equity Capital Team each has 30-35 years experience
in funds management
 Extensive knowledge of Global Funds management
 Global partnerships with highly credible service
providers
 Exclusive arrangements not available through
competitors
 Extremely attractive returns with 4-5 times Buy-Back
arrangements
 A unique platform for independent advisors where
you win!
- Commercial and in Confidence - scott@vanmac.com.au - Tel: 0414 227 104Tuesday, 10 May 2016 2

3. ‘DGEC’ Business Mission
 To provide unique turn key funds management
products and services for Dealer Groups
 Potential to create equity capital and EXIT
Strategy for Advisory groups
 Low Cost Portfolio Solution
 Enables Dealer/ Advisory firms to design
investments with Client - asset allocation - and
maintain relationship
- Commercial and in Confidence - scott@vanmac.com.au - Tel: 0414 227 104Tuesday, 10 May 2016 3

4. ‘DGEC’ Model– Solves Problem
 Provides firms with Succession Planning and
Equity Realisation within 4 years
 Enables firms low cost entry into Funds
Management business ownership and wealth
creation model
 Provides end Clients low cost access to wealth
preservation strategies defined with trusted
service providers
- Commercial and in Confidence - scott@vanmac.com.au - Tel: 0414 227 104Tuesday, 10 May 2016 4

5. ‘MAC’– Provides Solution
 Establishes and runs separate funds for each
firm
 Bespoke funds and asset allocation – multiple
options
 Low Asset Management fees by using
Corporate ASX Listed Bonds and ETF’s
 Low monthly access and administration fees
 Buyback agreement potential, executed
upfront….
- Commercial and in Confidence - scott@vanmac.com.au - Tel: 0414 227 104Tuesday, 10 May 2016 5

6. Portfolio Services – Market Size
Market is potentially any independent
Advisory firm or newly emerging Accounting
Group entering the Advice business
We estimate market of 1200 - 1500 Australia
wide..
Model will work with one larger or 25 smaller
groups..
- Commercial and in Confidence - scott@vanmac.com.au - Tel: 0414 227 104Tuesday, 10 May 2016 6

7. Dealer Group Equity Capital –
Makes Money
 Firms make money above $5m FUA per Trust
 At this size, DGEC Cash flow positive with 25
new funds
 OR Business should make money above A$100m
– A$150m FUA – potentially one client….
 Optional Buy-Back Agreement (EXIT Strategy) in
4 years provides 4x or 5x (TBN) of Advisory fee
to be paid directly to Firm…
- Commercial and in Confidence - scott@vanmac.com.au - Tel: 0414 227 104Tuesday, 10 May 2016 7

8. Model Makes Money….
 Flat establishment fee - est. A$80k-A$185k for
single larger group depending on sub funds (FUA
$125m plus..)….or $2,500/mth where 25 group
together….
 Low competitive management fee – TBN…
 Dealer Group to earn 60 bpts pa – TBN…
 Firms also able to charge individual clients an
upfront; ongoing review or asset reweighting fees
to clients (Fee for Service) at own discretion ….
- Commercial and in Confidence - scott@vanmac.com.au - Tel: 0414 227 104Tuesday, 10 May 2016 8

9. Technical and Compliance Advantages
 Technical issues of running a Funds Management Business
managed by MacDonald Asset Consulting Pty Ltd –
established 1994
 Trustee and AFSL Compliance; on demand Asset
Consulting; Advisory Services; Portfolio Accounting;
Portfolio Administration; Audits; Client Unit Registry;
Custodial Services; Legal issues, i.e. Trusts; Buy Back
agreement etc.. and Investor Services managed.
 Dealer Group input to asset allocation ensures business
model is compliant and will meet new regulations
- Commercial and in Confidence - scott@vanmac.com.au - Tel: 0414 227 104Tuesday, 10 May 2016 9

10. Portfolio Services – Competition
 Competition to this model includes IMA’s - Separately
Managed Accounts
 Groups include Lonsec and Robo Advice platforms
who may offer Super Fund solutions
 Managed Account providers….One Vue; PPM etal…
 However, competitors do not provide equity capital
exit strategy for Dealers – or control/ ‘ownership’ of
client/portfolio relationship
- Commercial and in Confidence - scott@vanmac.com.au - Tel: 0414 227 104Tuesday, 10 May 2016 10

11. ‘DGEC’ – Marketing Plan
 You need only single Dealer Group to move
$100m/$150m or 25 smaller dealers with new trusts
each with $5m
 We will offer to small number of Dealer Group to begin
implementation – first in basis
 Target of a 25 - 30 by end of first year – we have several
potentially ready to sign and expect 3-6 in next few
months
 Estimated $2bn FUA in first 1-2yrs
 Buy-Back provision very compelling…
- Commercial and in Confidence - scott@vanmac.com.au - Tel: 0414 227 104Tuesday, 10 May 2016 11

12. Portfolio Solution - Team
 Chairman and Financier – Scott A J MacDonald – 32yrs – co-
founder of many successful investment products and
companies including – IFOA; VanMac Group; Dragon Wheel
Capital and experienced at top institutions including
Macquarie Bank Group; HSBC; Wilshire Associates and
currently BlueMount Capital.
 Industry Consultant, – Industry Doyen - with experience in
Dealer Group management for 35 years, Sydney
 Group Advisor, Mark Voumard – CEO of Gordian Capital -
global fund services company, Singapore
 Mark Ohlsson - Company Secretary, Sydney
- Commercial and in Confidence - scott@vanmac.com.au - Tel: 0414 227 104Tuesday, 10 May 2016 12