MacDonald Asset Consulting provides a turnkey funds management solution for dealer groups, allowing them to offer customized funds to clients and realize equity through an attractive buyback arrangement. Their experienced team establishes separate funds for each dealer group using low-cost ETFs and bonds. This provides succession planning, wealth creation, and a low-cost investment option for clients. The model is projected to be profitable with over $5 million in funds under administration per fund and aims to manage $2 billion in assets within the first two years by partnering with 25-30 dealer groups.

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