dealer group equity capital sol's v6 - may 10 2016

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

http://www.macassetconsulting.com/

‘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 - [email protected] - Tel: 0414 227 104 Tuesday, 10 May 2016 2

‘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


‘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


‘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….


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..


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…


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 ….


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


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


‘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…


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


dealer group equity capital sol's v6 - may 10 2016

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