ARC Client Presentation

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Instreet Link ARCMake a strategic investment toaccess Absolute Returns fromCommodities in many marketconditions

December 2009


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2Private & Confidential Not for Distribution

Disclaimer

Presentation:This document has been prepared by Instreet Investment Limited ACN 128 813 016 (Instreet), an Authorised Representative of EA Financial, LP ACN 971 745 471, AFSL 246801(EAF), and is current as at 13 October 2009. Instreet is the distribution manager for the Instreet Link ARC Deferred Purchase Agreements (Instreet LINK ARC DPA).

Issuer and PDS: Although RBS Group (Australia) Pty Ltd ABN 78 000 862 797, AFSL 247013 (Issuer) has consented to the inclusion of its name in this document, this document is not preparedor issued by the Issuer or any of its affiliates. Neither the Issuer nor any of its affiliates makes any representation or warranty, express or implied, regarding the investment performance of theInstreet Link ARC DPA, the suitability of the Instreet Link ARC DPA for any investor, or the accuracy, completeness or adequacy of information in this document. Neither the Issuer nor any of itsaffiliates accepts any liability in connection with these matters.

In respect of each item of Marketing Information which includes Issuer's Intellectual Property: The logo is a service mark of RBS Group (Australia) Pty Ltd and/or its affiliates and are used by theInstreet Investment Limited under licence."

The issue is structured by Link Capital Investments Pty Ltd ACN 138 072 429, AFSL 246801 (Link Capital) has consented to the inclusion of its name in this document. Neither Link Capital norany of its affiliates makes any representation or warranty, express or implied, regarding the investment performance of the Instreet Link ARC DPA, the suitability of the Instreet Link ARC DPA forany investor, or the accuracy, completeness or adequacy of information in this document. Neither Link Capital nor any of its affiliates accepts any liability in connection with these matters. The

Instreet LINK ARC DPA is offered in a product disclosure statement dated on or around the 1 November 2009 (PDS). The PDS will be available from Level 34, 50 Bridge Street, Sydney, at thewebsite www.instreet.com.au or by phoning 1300 954 678. In deciding whether to acquire or continue to hold and investment investors should obtain the PDS and consider its contents.

The information in this document has not been prepared or reviewed by the Issuer, Link Capital or any of their respective affiliates. None of the Issuer, Link Capital or any of their respective

affiliates makes any statement in this presentation, nor do they make any representation or warranty, or accept any responsibility or liability, to any party in relation to any whole or part of suchinformation.

Apart from the disclosed relationships referred to above, Instreet, Link Capital and EAF are not owned by, o r related parties of, the Issuer; Instreet, Link Capital and EAF do not hold any ownershipinterests in the Issuer. Link Capital, EAF and Instreet do not hold any ownership interests in each other.

General advice warning: The information contained in this document is general information only and has been prepared for distribution to financial advisers. It has been prepared without takingaccount any potential investors financial situation, objectives or needs and the appropriateness of this information needs to be considered in that context. Advisers must form their own views onwhether the Instreet LINK ARC DPA is appropriate after considering their clients objectives, financial situation and needs. We recommend you seek your own legal and taxation advice.

This presentation may not be passed on to retail clients unless it forms part of the advisers advice to the client. Any statements contained here are general only and do not take into account yourneeds, objectives, financial circumstances, or investment preferences and are not intended to constitute advice. No responsibility or liability is accepted by Instreet or any third party who has

contributed to this document for any of the information contained herein or for any action taken by you or any of your officers, employees, agents or associates.

Past performance: Past performance is not a reliable indicator of future performance.

Case Studies and Examples: All case study and examples in this presentation are hypothetical example only. Due care and attention have been used in the preparation of forecast informationand hypothetical examples. However, actual results may vary and any variation may be materially positive or negative.
http://www.instreet.com.au/http://www.instreet.com.au/


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Agenda

1. Market overview

2. Who is Instreet?

3. Absolute Returns from Commodities

4. Strategies

5. Summary


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Economic cycles

Source: Datastream, Macquarie Research, May 2008


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Australian Stock Market Performance


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Declines and Recoveries - All OrdinariesIndex

Source: IRESS and Macquarie.

Past performance is not a reliable indicator of future performance.

52.9%

10.9%

18.8%

29.0%24.3%

21.4%


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Past Performance

Past performance is not a reliable indicator of future performance.


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The issue at hand

Markets will not rally forever.

How can we managing the risk that markets may not continue torally?

What products are there available to provide sound returns in all

market conditions?

If substantially in cash, what happens if markets continue to rally?


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Who is Instreet?


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Instreet

A new breed of Asset ManagerInstreet works closely with the financial adviser community to create anddistribute investment products that harness inspiration, market insight andintelligent structuring. Instreet makes institutional assets available toindividual investors.

Process:

Identifying adviser needs,Assess market trends,

Tender to quality global institutions to mitigate counterparty risk,

Build product with quality global wholesale provider.

The end result is a selection of investment products designed to betterachieve the goals of client and adviser.


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Absolute Returns from CommoditiesIn many market conditions


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Overview

It is not the only solution, but it is a solution to manage risk

and add diversification to a portfolio.

Investment

Underlying is a commodity investment that can provide returns in aup, down or sideways market

The index strategy has returned 15.4% on average since 1997

This Index can be viewed on Bloomberg: RBSAQPU1:IND

The offering is likely to be listed on the ASX


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Overview (cont)

Unique Structure:

One off payment of$11,800 provides $100,000 exposure for a two yearperiod

Minimum investment amount is $2,950 or $25,000 exposure),

Suitable for SMSFs, Individuals, trusts and companies

Uncapped upside

Year 1 return paid out in full as a coupon

Index resets after year 1

2nd year return paid out as capital gain and you can receive a basket of shares(BHP, CBA, WES, WBC and WOW) or they can elect to take cash

Worst case, you cannot lose more than $2,950 per $25,000 of exposure


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The investment


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Annual Past Performance

Calendar Year Annual Performance (%)

2009 0.50

2008 12.58

2007 17.18

2006 18.52

2005 24.16

2004 32.12

2003 15.33

2002 14.89

2001 11.45

2000 14.40

1999 7.16

1998 2.27

Average 15.45*

Note the Annual Past Performance of the Instreet Link ARC in the table above is calculated based on backtesting using his torical data .

* Average based on full year


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Annual Past Performance


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Structure


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Reset Feature - Examples

Year IndexExample 1

Payment$11,800Invested

Return IndexExample 2


Return

0 500 500

1 375 $0.00 0% 600 $20,000 69%

2 450 $20,000 69% 660 $10,000 154%

Year IndexExample 3


IndexExample 4


0 500 500

1 375 $0.00 0% 600 $20,000 69%

2 350 $0.00 -100% 575 $0.00 0%


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Risks

Instreet Link ARC risk:

Loss of upfront premium (not notional value)

Redemption value prior to maturity may not exactly track the Absolute ReturnCommodities index .

Third party credit risk (counterparty risk)

Liquidity risk

Strategy risk The returns from the strategies may not always be positive


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Strategies


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Strategies

Accumulation strategies

Alternative to Margin loans

Alternative to tax effective structures

Asset allocation rebalance

Build your own capital protection

1% portfolio allocation provides 10% increase to growth assets

Risk management

Replace maturing term deposits

Mortgage/Debt reduction strategy

Leverage in strong bull market

Replace equity exposure in bear market


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Asset allocation tool

Asset allocation tool to effect the asset allocation

required by your clients after recent market turmoil:Allocate 1% of your portfolio to increase exposure away from

traditional asset classes adding diversification.

1% will add approx 10% exposure to your portfolio while only risking

1%

The correlation of the index to other asset classes is negative, makingit an excellent addition to portfolios.

Yield on the portfolio could pay for it in 3 months yet gives 2 years ofexposure.


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Capital protected alternativeIntroduction

You would like to obtain returns in all market conditions but are nervous about loss off capital

and you thus decide on a capital protected strategy. You have $100,000 to invest and areconsidering placing this in a capital protected hedge fund for a five year term, or you maychoose to use Instreet ARC.

Strategy:

Invest $11,800 in Instreet ARC and $88,200 in government guaranteed deposit for two years.

Result

You were able to retain the safety of a government guaranteed term deposit whilst concurrentlybenefiting from exposure to an absolute return strategy.

Net result client risks losing 0% for an unlimited potential gain within two years, see over-page for explanation.

Investment strategy could be continued at the end of two years, i.e. reinvest at maturity.


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Capital protected alternative

Result

Invests $11,800 in Link ARC and retain $88,200 in a government guaranteed term

deposit earning 6.5% p.a. for a two year period:

Assuming a 15.4% p.a. return from the Link ARC Investment

Link provides $15,400 income at the end of year one and $15,400 capital gain at theend of year two. The $88,200 term deposit is now worth $100,032

Total return - $130,800

Assuming a negative -15% p.a. return from the Link ARC investment for 2years

Link provides $0 return and $88,200 grows to $100,032

i.e. total asset value at maturity is $100,032

Net result you risks losing 0 % for an unlimited potential gain.


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Introduction

You would like to obtain returns in all market conditions but are nervous about loss off

capital and you thus decide on a capital protected strategy. You have $15,000 to invest.

Strategy:

Invest $2,950 in Instreet ARC and $13,050 in government guaranteed deposit for twoyears.

Result

You were able to retain the safety of a government guaranteed term deposit whilstconcurrently benefiting from exposure to an absolute return strategy.

Net result client risks losing $200 for an unlimited potential gain within two years, seeover-page for explanation.

Investment strategy could be continued at the end of two years, i.e. reinvest atmaturity.


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Result

Invests $2,950 in Link ARC and retains $13,050 in a government guaranteed term deposit

earning 6.5% p.a. for a two year period:

Assuming a 15.4% p.a. return from the Link ARC Investment

Link provides $3,850 income at the end of year one and $3,850 capital gain at the endof year two. The $13,050 term deposit is now worth $14,802

Total return - $22,502

Assuming a negative -15% p.a. return from the Link ARC investment for 2 years

Link provides $0 return and $13,050 grows to $14,802

i.e. total asset value at maturity is $14,802

Net result you risks losing $198 for an unlimited potential gain.


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Summary


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Benefits & Features

Instreet Link ARC aims to provide investors with exposure

to the Absolute Return Commodities Index for a one offupfront premium.

One off upfront payment of $11,800 which provides $100,000 NotionalExposure to the investment.

Potential to perform in bull, bear and sideways markets classes- ideal

portfolio diversification toolTerm of 2 years

No ongoing payment required

Potential for annual returns

Suitable for SMSF, Companies, Trusts and individuals.


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Questions


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ContactInstreet Investment Limited

ABN: 16 971 745 471

AFSL: Authorised Representative AFSL 246801Level 34

50 Bridge Street

Sydney, NSW, 2000

[email protected]

1300 954 678

EA Financial Pty Ltd - AFSL 246801 &Compliance

Level 6

115 Pitt St

SYDNEY, NSW 2000

[email protected]

(02) 9249 7375
mailto:[email protected]:[email protected]:[email protected]:[email protected]

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