Quattro Vault 08 Presentation

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Quattro Vault 08 Presentation

• May 2008

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Quattro Vault 08

• Quattro Asset Management Limited Disclaimer
• This summary has been prepared by Quattro Asset
  Management Limited (ABN 69 125 604 702) for
  general information purposes and whilst every
  care has been taken in relation to its accuracy,
  no warranty is given or implied. The information
  provided does not constitute investment advice
  and any recipients should consider obtaining
  their own independent financial advice before
  making any decision that relies on this
  information.

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Quattro Vault 08

• Quattro offers structured equity products
• Intelligent capital protected strategies
• Sun Hung Kai financial global funds FUM 10bn
• 3 dynamic Asian equity hedge funds managed
  in-house
• 5 best of breed global hedge funds, including
• Paulson Co Inc. arbitrage events
• Eden Rock asset backed finance
• Solus AAM credit based
• Strategic Value Partners global distressed debt
• Alexandra global multi strategy
• Experienced team in alternative investments, ex
  Goldman Sachs, Macquarie, Allco and Challenger

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Quattro Vault 08

• Investors approach
• Standard equation maximise returns for
  appropriate risk
• Capital protected strategy minimise risk but
  maximise returns
• Minimise risk to equity, actually through
  minimising equity via
• Capital protection
• 100 investor loan
• Maximise returns equity, through
• Maximising investment exposure to the funds
  investment strategies by leverage
• Using active investment strategies seeking
  appropriate returns

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Quattro Vault 08

• How capital protection investment strategies pre
  Quattro Vault 08 tried to minimise risk and
  maximise returns in various structures

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Quattro Vault 08

• Vault 08 is designed to safeguard your capital
  and generate wealth in a tax effective manner.
  With limited equity you can use the 100 investor
  loan to gain up to twice the exposure to five
  selected global investment strategies managed by
  UBS, one of the worlds leading investment
  managers.
• Capital safeguard 100 capital protection.
• Global investments access to UBSs global
  investment strategies.
• Wealth generation the fund generates wealth
  over a 5 year term.
• Limited equity borrow 100 of the investment.
• Tax effective robust deposit swap structure.
• Low cost structure the fund is structured to
  minimise fees.
• Solid backing Quattro is owned by its executive
  staff and key stakeholders who collectively
  manage assets in excess of A10 billion.

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Quattro Vault 08

• The mechanism for Vault 08 is a deposit/swap
  which provides up to 2times exposure to a
  strategy hedge fund index, the UBS LTA (Liquid
  Transparent Alpha) Series, based on 5 UBS AG
  Groups proprietary investment strategies
• UBS AG Global Equities Buy-Write strategy (EBW)
• UBS AG Global Equities Long/Short Alpha strategy
  (ELSA)
• UBS AG Global Equities Risk Adjusted Dynamic
  Alpha strategy (RADA)
• UBS AG Equities Arbitrage strategy (EVA)
• G-10 Currency Trade (G-10)
• Efficient CPPT mechanism based on LTA series
  daily pricing
• Maximum 2 times exposure to the UBS investment
  strategies
• AUD pricing, eliminating FX risk and interest
  rate differentials
• Low fees and expenses.

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Quattro Vault 08Example of how Vault 08s AUD
denominated Swap, with 2X participation, provides
33 better performance than a USD denominated
Swap and eliminates significant FX risk of USD
exposure.
LTA Total Return (AUD) Index 14
LTA Total Return (USD) Index 9
Excess Return Index Performance
Excess Return Index Performance
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AUD short term rates
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USD short term rates
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Note Below is a simplified example looking at
the impact of alternative denominated investments
in the LTA Index (assuming a constant Excess
Return Performance) and does not take into
account all transaction costs.
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Quattro Comparison of fees at max participation
rate and term
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Quattro Vault 08
Comparison of fees and term on investor costs

• Summary
• 48.5 less cost to investor 57,001 v 110,506
  provides a lower breakeven point
• Quattro Vault 08 required annual return to
  achieve breakeven, USD version 5.52pa
• Competitor required annual return, USD funded
  bond floor, 10.94pa

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Quattro Vault 08
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Quattro Vault 08