j~åèì~êáé=_~åâ=iáãáíéç Operational Briefing Kim Burke Group Head Equity Markets
OU lìíäáåé Recap Equity Markets Business Model Update trading conditions in key markets, and market risk position Operational Highlights Strategic Focus
OV bjd=_ìëáåéëë=jççéä Equity Markets Group Core Activities Core Expertise Key Result Drivers Increasingly Diversified Earnings Equity-linked structuring, distribution, risk management Hedge fund management and distribution Arbitrage style proprietary trading of equities Equity Derivatives Product Volume and Margin Geographic Financial Product Distribution Equity Market Conditions Product Risk Management Innovation and Growth Customer Type
PM pí~ññ=~åç=içå~íáçåë= eé~ç=lññáåé pìééçêí= NPS qê~çé=pìééçêí péííäéãéåíë nì~åíáí~íáîé pìééçêí iéö~ä= `çãéäá~ååé fåñçêã~íáçå qéåüåçäçöó eìã~å= oéëçìêåéë ^ìëíê~äá~ UU ^ëá~ TO _ê~òáä NO bèìáíó=cáå~ååé NQ fåík=píêìåíìêáåö OM pçìíü=^ñêáå~ R rpl=bìêçéé NP cìåç= mêççìåíë bèìáíó mêççìåíë eçåö=hçåö g~é~å hçêé~ páåö~éçêé 360 Staff in 13 Locations fåëíáíìíáçå~ä== mêççìåíë=
j~êâéí=`çåçáíáçåë J ^ìëíê~äá~ Prices Volumes Volatility ASX 200 continuing to set record highs Supporting strong investor demand 5500 5000 4500 4000 3500 3000 15% Dec-05 PN 3 Month Rolling Average Turnover Volatility 10% 5% Nov-05 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 Daily Turnover ASX200 Index Volatility
j~êâéí=`çåçáíáçåë J eçåö=hçåö Prices Volumes Volatility Market volumes have declined since September 2005 Investor demand has moderated accordingly 20000 19000 18000 17000 16000 15000 14000 13000 12000 11000 10000 25% 20% 15% PO 3 Month Rolling Average Turnover Volatility 10% 5% 0% 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 Apr-05 May-05 Jun-05 Jul-05 Aug-05 Sep-05 Oct-05 Nov-05 Dec-05 Daily Turnover Hang Seng Index Volatility
PP j~êâéí=oáëâ=~åç=oéöìä~íçêó=`~éáí~ä VAR and regulatory capital usage remaining relatively constant 30 25 Regulatory 99% 10 day VAR 60 Day Average of Reg. VAR 20 15 10 5 0 Jan-01 Jul-01 Jan-02 Jul-02 Jan-03 Jul-03 Jan-04 Jul-04 Jan-05 Jul-05 Jan-06
lééê~íáçå~ä=eáöüäáöüíë=j ^ìëíê~äá~ Australia Equity Products Division maintained leading market positions in ASX Listed Warrants and Instalments ASX Listed Warrants and Instalments Market Share 700 600 Rest of Market MBL Share 500 400 300 200 100 - PQ $A(Million) 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 * Source ASX
PR lééê~íáçå~ä=eáöüäáöüíë=j ^ëá~ 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 Multi-Market Australia Japan Europe Taiwan Korea Singapore US Hong Kong 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
PS lééê~íáçå~ä=eáöüäáöüíë=ó eéçöé=cìåçë Recent raisings in Newton Retail funds and Equinox Fund of Funds from Australian and European retail investors. Continuing to grow Funds Under Risk Management. 3,000 FUM and FURM Funds Under Management Funds Under Risk Management 2,500 2,000 $AMillion 1,500 1,000 500 0 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
lééê~íáçå~ä=eáöüäáöüíë=j eéçöé= cìåçë 700 600 500 $A Millions Composition of Hedge Fund FUM 400 300 200 100 0 PT 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
lééê~íáçå~ä=eáöüäáöüíë=j eéçöé= cìåçë Consistent positive returns across all fund products Fund of Funds 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% Single Strategy 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% Incubated Managers Average Performance 19.10% * 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 PU
PV lééê~íáçå~ä=eáöüäáöüíë=ó líüéê 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 options.
QM píê~íéöáå=cçåìë 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