Instreet Link ARC

Make a strategic investment to

access Absolute Returns from
Commodities in many market
conditions

December 2009
 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 prepared
or 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 the
Instreet 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 its
affiliates 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 the
Instreet 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 nor
any 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 for
any 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 the
website 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 such
information.
Apart from the disclosed relationships referred to above, Instreet, Link Capital and EAF are not owned by, or related parties of, the Issuer; Instreet, Link Capital and EAF do not hold any ownership
interests 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 taking
account 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 on
whether 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 adviser’s advice to the client. Any statements contained here are general only and do not take into account your
needs, 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 information
and hypothetical examples. However, actual results may vary and any variation may be materially positive or negative.

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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 Ordinaries
Index
52.9%

29.0%
24.3%
21.4%
18.8%
10.9%

Source: IRESS and Macquarie.

Past performance is not a reliable indicator of future performance.
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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 to
rally?

• 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?
Instreet

A new breed of Asset Manager

Instreet works closely with the financial adviser community to create and
distribute investment products that harness inspiration, market insight and
intelligent structuring. Instreet makes institutional assets available to
individual 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 better

achieve the goals of client and adviser.

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Absolute Returns from Commodities
In many market conditions
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 a
up, 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 year
period
• Minimum investment amount is $2,950 or $25,000 exposure),
• Suitable for SMSF’s, 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*

* Average based on full year

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

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Annual Past Performance

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Structure

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Reset Feature - Examples
Year Index Payment Return Index Payment Return
Example 1 $11,800 Example 2 $11,800
Invested Invested

0 500 500

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

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

Year Index Payment Index Payment

Example 3 $11,800 Example 4 $11,800
Invested Invested

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 Return
Commodities 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
 Strategies
• Accumulation strategies
• Risk management
• Alternative to Margin loans
• Replace maturing term deposits
• Alternative to tax effective structures

• Asset allocation rebalance • Mortgage/Debt reduction strategy

• Build your own capital protection • Leverage in strong bull market

• Replace equity exposure in bear market

• 1% portfolio allocation provides 10% increase to growth assets

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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, making

it an excellent addition to portfolios.

• Yield on the portfolio could pay for it in 3 months – yet gives 2 years of
exposure.

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 Capital protected alternative
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 $100,000 to invest and are
considering placing this in a capital protected hedge fund for a five year term, or you may
choose 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 concurrently
benefiting 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 the
end 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 2
years
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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 Capital protected alternative
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 two
years.

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

Net result client risks losing $200 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 $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 end
of 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
Benefits & Features
Instreet Link ARC aims to provide investors with exposure
to the Absolute Return Commodities Index for a one off
upfront premium.
•One off upfront payment of $11,800 which provides $100,000 Notional
Exposure to the investment.
•Potential to perform in bull, bear and sideways markets classes- ideal
portfolio diversification tool
•Term of 2 years
•No ongoing payment required
•Potential for annual returns
•Suitable for SMSF, Companies, Trusts and individuals.

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Questions
Instreet Link ARC - FAQ
• Flexible payment options:
• Cheque
• Direct Debit
• Gains can be elected to be paid out in cash
• Link ARC is not a derivative but treated as a security which makes it suitable for SMSFs
• Minimum size is 2500 units (each unit has a notional value of $10)
• The product issuer and counterparty is RBS Group (Australia) Pty Ltd – Instreet acts as distributor
• To listen to a presentation from the Global Head of Structuring at RBS on the Aquantum Pegasus index please dial:
1800 008 585. The pass code is: 18787843

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 Contact
Instreet Investment Limited
ABN: 16 971 745 471
AFSL: Authorised Representative AFSL 246801
Level 34
50 Bridge Street
Sydney, NSW, 2000
Info@instreet.com.au
1300 954 678

EA Financial Pty Ltd - AFSL 246801 &

Compliance
Level 6
115 Pitt St
SYDNEY, NSW 2000
info@eafinancial.com.au
(02) 9249 7375

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