SLIDE 1
OU
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j~~=_~=i j~~=_~=i - - PowerPoint PPT Presentation
j~~=_~=i j~~=_~=i j~~=_~=i j~~=_~=i Operational Briefing Operational Briefing Kim Burke Kim Burke Group Head Group Head Equity
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SLIDE 3
OV
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Core Activities Core Expertise Key Result Drivers
- Equity-linked structuring, distribution, risk management
- Hedge fund management and distribution
- Arbitrage style proprietary trading of equities
Equity Derivatives Product Volume and Margin Equity Market Conditions Risk Management Financial Product Distribution Innovation and Growth
Increasingly Diversified Earnings
Geographic Product Customer Type
SLIDE 4
PM
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360 Staff in 13 Locations
SLIDE 5
PN
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Prices Volumes Volatility ASX 200 continuing to set record highs Supporting strong investor demand
3000 3500 4000 4500 5000 5500 Jan-04 Feb-04 Mar-04 Apr-04 May-04 Jun-04 Jul-04 Aug-04 Sep-04 Oct-04 Nov-04 Dec-04 Jan-05 Feb-05 Mar-05 Apr-05 May-05 Jun-05 Jul-05 Aug-05 Sep-05 Oct-05 Nov-05 Dec-05 3 Month Rolling Average Turnover 5% 10% 15% Volatility Daily Turnover ASX200 Index Volatility
SLIDE 6
PO
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Prices Volumes Volatility Market volumes have declined since September 2005 Investor demand has moderated accordingly
10000 11000 12000 13000 14000 15000 16000 17000 18000 19000 20000 J a n
- 4
F e b
- 4
M a r
- 4
A p r
- 4
M a y
- 4
J u n
- 4
J u l
- 4
A u g
- 4
S e p
- 4
O c t
- 4
N
- v
- 4
D e c
- 4
J a n
- 5
F e b
- 5
A p r
- 5
M a y
- 5
J u n
- 5
J u l
- 5
A u g
- 5
S e p
- 5
O c t
- 5
N
- v
- 5
D e c
- 5
3 Month Rolling Average Turnover 0% 5% 10% 15% 20% 25% Volatility Daily Turnover Hang Seng Index Volatility
SLIDE 7
PP
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VAR and regulatory capital usage remaining relatively constant
5 10 15 20 25 30
Jan-01 Jul-01 Jan-02 Jul-02 Jan-03 Jul-03 Jan-04 Jul-04 Jan-05 Jul-05 Jan-06
Regulatory 99% 10 day VAR 60 Day Average of Reg. VAR
SLIDE 8
PQ
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Australia Equity Products Division maintained leading market
positions in ASX Listed Warrants and Instalments
ASX Listed Warrants and Instalments Market Share
- 100
200 300 400 500 600 700 A p r
- 4
M a y
- 4
J u n
- 4
J u l
- 4
A u g
- 4
S e p
- 4
O c t
- 4
N
- v
- 4
D e c
- 4
J a n
- 5
F e b
- 5
M a r
- 5
A p r
- 5
M a y
- 5
J u n
- 5
J u l
- 5
A u g
- 5
S e p
- 5
O c t
- 5
N
- v
- 5
D e c
- 5
$A(Million) Rest of Market MBL Share
* Source ASX
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PR
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Asian equity linked product sales below recent highs due to overall
market conditions. Mix of underlyings is broadening due to changes in investor preference.
Asian Equity-linked Sales by Underlying Asset Jurisdiction
Apr-04 May-04 Jun-04 Jul-04 Aug-04 Sep-04 Oct-04 Nov-04 Dec-04 Jan-05 Feb-05 Mar-05 Apr-05 May-05 Jun-05 Jul-05 Aug-05 Sep-05 Oct-05 Nov-05 Dec-05 Multi-Market Australia Japan Europe Taiwan Korea Singapore US Hong Kong
SLIDE 10
PS
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Recent raisings in Newton Retail funds and Equinox Fund of Funds
from Australian and European retail investors. Continuing to grow Funds Under Risk Management.
FUM and FURM
500 1,000 1,500 2,000 2,500 3,000 Apr-04 May-04 Jun-04 Jul-04 Aug-04 Sep-04 Oct-04 Nov-04 Dec-04 Jan-05 Feb-05 Mar-05 Apr-05 May-05 Jun-05 Jul-05 Aug-05 Sep-05 Oct-05 Nov-05 Dec-05 $AMillion Funds Under Management Funds Under Risk Management
SLIDE 11
PT
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100 200 300 400 500 600 700 Total FUM Single Strategy FUM Special Events Absolute Return Buy-Write Global Futures Multi-Strategy Asia Long/Short Absolute Return Fund of Funds FUM Equinox Titan Apollo Other
$A Millions
Composition of Hedge Fund FUM
SLIDE 12
PU
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Consistent positive returns across all fund products
Titan I 10.07% Titan II 8.19% Apollo 9.06% Equinox Class A 6.76% Equinox Class B 6.79% Equinox Class C 5.53% Equinox Class D 1.74% Equinox Class E 5.68% Equinox Class F 4.79% Equinox Trust (6) 2.87% Equinox Asia 1.81%
Fund of Funds
Absolute Return 3.38% Special Events 8.19% Buy Write 11.66% Futures Fund 19.15% Futures Fund - Enhanced 31.01% Asian Enhanced Yield 21.17% Asian Statistical Arbitrage 21.08% Asian Long Short 19.14%
Single Strategy Funds
Average Performance 19.10%
Incubated Managers
* 12 month Compound Rolling Returns. Some Fund of Fund numbers are estimates. Performance for strategies and funds with less than 12 months of data are annualised
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PV
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International Structuring raised €107 million in Germany in
relation to equity linked investments in Nov/Dec 05.
JVs in Korea (Woori Bank) and South Africa (Nedbank)
continuing to perform well.
New US office now hedging products for Asian and Australian
- distribution. Performing well in first year of operation.
Brazil office commenced market making in exchange traded
- ptions.
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QM
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Asia - transitioning to full service regional model:
All major markets covered Full product range including multi-market Full coverage of retail, HNW and institutional clients Leveraging Macquarie Securities’ presence
Hedge Funds:
Increase asset management and research capabilities in Asia with
local resources in Hong Kong and Tokyo
Obtain SEC registration for single strategy asset management Integrate with other EMG global distribution teams
Australia Equity Products:
Increasing focus on corporate and institutional products Online CFD platform – continued enhancement
International Structuring:
Significantly grow European distribution platform