Brought to you by. The Global Financial Crisis has resulted in a rationalisation of the Broker industry with the following consequences: Increase in channel.

Brought to you by

The Global Financial Crisis has resulted in a rationalisation of the Broker industry with the following consequences:

•Increase in channel conflict as the banks seek to cut independent brokers out

•Loss of revenue as upfront and trailing commissions have been reduced

•Banks have imposed tougher sales volume & cross-sell targets, penalties for application re-work and claw-back provisions

•Greater use of the internet by customers as a research/loan application tool and the increasing influence/role of social media

•Increased regulation

•Entry of Planners into the Broking space

CURRENT BROKER ENVIRONMENT

We understand this environment and the challenge for brokers is how to prosper and grow in the new world. The solutions include:

•Addressing channel conflict

•Increasing or diversifying revenue streams

•Differentiating yourself

•Adopting new products, services and technologies

•Seeking out price advantage opportunities

•Expanding customer base/demographic

•Developing customer retention strategies

•Proving to the customer that there is a trusted adviser role

Success will depend on the mix of the above strategies being adopted.

BROKER CHALLENGES

* IFBF is a resource to assist Independent Brokers

• A mortgage implies a shortfall of money and an investment requires a surplus of money

• Often time poor

• Dealing with unexpected lifestyle expenses including helping elderly or sick family members

• How to implement cost effective and tax effective strategies

• Apprehension with investing due to lack of available funds to start

CUSTOMER CHALLENGES

Customers want to achieve a secure financial future

but they have challenges including:

In response, customers may:

• delay investing while paying off the mortgage

• re-draw against the equity in the house, if the bank allows

• implement savings/investment plan that requires discipline and is difficult to maintain with life’s unexpected expenses

• adopt salary sacrifice, if disposable income allows

• borrow, if disposable income and lifestyle allows

CUSTOMER RESPONSE

RED vs BLUE – IT’S YOUR CHOICE

Innovation & Value = Blue Ocean Strategy

“Defend Current Position”

“Innovate and purse new opportunities”

We recognise and understand these challenges. So we embarked on a journey to find a solution. This journey has taken many years as we:

Looked at the products available in the market

Found them inflexible

Identified that these products were designed for the benefit of the bank

Designed a solution that will create wealth

MARKET OPPORTUNITY

Aspire > is a new category of product. It’s about long term wealth accumulation, combining a property loan with investment growth through funds management. It works best for those aspiring to build

capital whilst repaying their loan in a tax effective way. At the end of the day, you own your home and have an investment portfolio with no impact to your lifestyle.

PRODUCT DESCRIPTION

• A customer acquires a mortgage similar to a standard home loan

• Repayments are the same as for a standard home loan, i.e. no extra repayments

• A portion of the repayment taken from the principal component is paid to an investment

• At loan maturity there may be an outstanding loan balance.

• Investment will be units in WMHL Fund - ASX300 Index Portfolio

• Income from the investment is paid to the loan

• All interest and fees relating to the investment are tax deductible

• At maturity of the loan any outstanding loan balance may be paid for by the investment.

• Covers any shortfall at loan maturity between the outstanding loan balance and the investment value.

• This means you always own your home at the end of the loan term.

PRODUCT DESCRIPTION

1. PROPERTY LOAN 2. INVESTMENT 3. GAP PROTECTION

Loan amount - $500,000

Loan term - 25 years

Interest rate - 6.60%

Monthly repayments - $3,407.35

Your Investment Ratio - 30% of principal portion of repayment is to purchase units in WMHL Fund (ASX300 Index Portfolio)

Aspire > EXAMPLE

Standard Loan Repayment Aspire > Repayment

Aspire > EXAMPLE - OUTCOME 1. PROFIT

Investment Balance$307,000

Outstanding Loan Balance$110,000 =

less

$196,000

After 25 years you have $307,000 in investments

ASX300 > Outstanding = $196,000 index loan balance

Aspire Investment(Growth 8%, Dividend 4%)

Principal

Interest

Aspire > EXAMPLE - OTHER OUTCOMES

Many of you will be thinking about other scenarios including:

What happens if the ASX300 is less than outstanding loan balance?

Gap Protection

Can I terminate the loan early? Yes

Can I keep my investment if I refinance? Yes

Can the investment pay off my loan early? Yes

Qualitative Research Summary

• EVERYONE would look into the product

• Many would sign up NOW

• Most would need to put their numbers in to ‘CHECK IT OUT’

• WORD OF MOUTH/ RECOMMENDATIONS from friends and family is important

• YOUNGER PEOPLE seemed more enthused about the product than older people Positive Feedback

•It helps you save while you invest (in home and shares)•Perceived low or no risk (Gap Protection achieves this)•Can be understood by most•New and different from anything else on the mortgage market

Negative Feedback•“Sounds too good to be true” – out of character with bank behaviour•Uncertainty/anxiety – what happens if (when) it doesn’t go to plan•Concerns over paying more interest (if shares do not perform as expected, if it’s a more expensive loan)•Early repayment – No Gap Protection

MARKET RESEARCH

QUANTITATIVE MARKET RESEARCH

57% of 1,895 survey participants said YES!

Net Wealth

Aspire >

Private Banking

Financial Planning

YOUR BLUE OCEAN – CUSTOMER SEGMENTATION

Age

45$100k

Your challenges Aspire’s solutions

• Resolving channel conflict • No channel conflict as banks do not offer Aspire >

• Increasing or diversifying revenue streams

• Increased trail commissions due to slower amortisation of loan balance

• Receive greater remuneration with WealthMaker

• Differentiating yourself• Aspire > is a blue ocean strategy• Offer customers new and innovative products - Aspire >

• Adopting customer centric solutions

• Aspire > allows customers (owner occupiers) to take out a home loan and invest simultaneously

• Aspire > is a smarter and low risk strategy for investment property buyers

• Expand customer base /demographic

• Potential to increase customer base/demographic through targeted marketing of Aspire >

• Seeking out price advantage opportunities

• Competitive rate with more ‘value for money’

• Developing customer retention strategies

• Customers more likely to stay in loan longer because of the growing investment and Gap Protection

• Proving to the customer that there is a trusted adviser role

• Increase customer satisfaction by providing customers with a tax effective wealth creation strategy

Aspire > SOLUTION

SELLING Aspire >

How will WealthMaker assist you?

1.Sales script

2.Marketing material, e.g. brochures

3.Specifically designed Aspire tools, e.g. calculators

4.Training

5.Support from the WealthMaker team

6.Better remuneration

1. Register

2. Accreditation / Training

3. Have fun “Aspiring”

Contact Details

Name Email Phone

Michael McAlary

[email protected]

1800 Aspire(1800 277

473)

Jess Houston [email protected]

Clive Wilson [email protected]

YOUR NEXT STEPS

1. Referrer Model

2. Broker Model

3. White Label Model

4. Aspire > Target Customers

5. Product Comparisons

6. WMHL Fund – ASX300 Portfolio

7. WMHL Fund – Gap Protection & Deposit Portfolio

8. Aspire > and Investment Properties

9. Investment Amounts & Fees

10. Who is WealthMaker?

FURTHER INFORMATION