Why?

1. Wealth ManagementWhy Accountants and Financial Planners Working Together Provide The Best Client Solution – the why, how, who, what and what if of referral relationships

2. Why? • Why should we care about positioning our clients towards Wealth Management Strategies? (incorporates wealth creating/preserving/protecting solutions) • Because it changes our clients lives and our lives for the better • Think about it – insurance and estate planning

3. To Capture The Prize For Our Clients On average, over long periods of time, shares have out performed cash and fixed interest by around 5% to 7% annually.

4. To Capture The Prize For Our Businesses Investment fund assets(1), US$ billion, December Quarter 2006 … the total amount of assets managed in the country … US$ 1.4bn US$ 10bn US$ 41bn US$ 57bn US$ 199bn US$ 433bn US$ 1,814bn(2) Largest in Asia US$ 470bn US$ 451bn Australia Singapore Philippines NZ India Taiwan Korea Hong Kong Japan US$ 1,141bn(1) Asia 2015 US$ 700bn Australia Australia’s Projected Growth 2010 US$ 340bn US$ 235bn Current value US$8,905bn US$ 157bn 2000 1995 1990 US$ 1,636bn US$ 1,363bn 4th largest in the world US$ 547bn US$ 596bn US$ 451bn US$ 470bn Circles not to scale Italy Japan Ireland UK Australia France Luxembourg USA Global • Refers to home-domiciled funds, except Hong Kong, Korea and New Zealand, which include home and foreign-domiciled funds. Fund-of-funds are not included • Based on long term average exchange rate of Australian dollar against US dollar (January 1984 to December 2005) of US$0.7080. Sources : Investment Company Institute, Worldwide Mutual Fund Assets and flows. Fourth Quarter, 2005; Singapore’s data as at 31 December 2005, sourced from Monetary Authority of Singapore: the estimated figures of Australia’s investment fund assets were provided by ASSIRT Research (now part of Standard and Poor’s); AXISS Australia

5. How? • How do we provide wealth management solutions to our clients? • The key is the advice component and the control of the relationship

6. The Australian market - Fee Based – Relationship Driven - Suits The Accountant Modelsophisticated/dynamic Infancy Early growth Late growth Product: Simple products, traditional life Initial investment-linked products Differentiated complex investment-linked products Disaggregation,commoditisation Growth of PAS/Wrap platforms Distribution: Proprietary sales force Proprietary sales force Emergence of brokers Penetration by brokers and IFAs Convergence between banks and insurers Advanced open architecture High advice ingredient Margin captured by advisers Compensation: High up-front commission High up-front, introduction of renewal Reduction of up-front, more emphasis on renewal Fee-for-service, renewal, AUM Source ofprofit: Underwriting drives profits Competitive pressure erodes underwriting profits Investing drives industry profits Control of customer relationship drives profits Japan Singapore France Germany China Korea Taiwan US UK Other SE Asia Australia circa 1986 Australia 2007

7. The Australian market two broad business models have emerged Leveraged shared services • Advice model • maximising quality ongoing client relationships • advice is charged for and profitable • “virtual” vertically integrated business model allowing firms with significant client businesses to maximise the capture of gross revenues • financial planner/client value proposition is holistic, lifetime goals based • Manufacturer model • maximising funds management product sales • financial planners seen in terms of traditional manufacturing distribution model (ie. to support product sales) • advisory services subsidised by the product manufacturing business • the financial planner/client value proposition is product and investment based • Platform • Licensee services • Adviser services • Manufacturers needto create centresof excellenceto deliver these services at best practiceand scale Customers Mass Market Accumulators Mass Affluent Core Affluent Premium Affluent & VHNWI <A$50k A$50k-100k A$100-250k A$250-500k >A$500k

8. Industry value chain – Advice – Accountants and Financial Planners Who Add Value Capture Profit and The Client Advice is now a key component of the value chain Asset management Products Adviser services Advice Platforms Total cost to client Estimated 2006 industry potential 20-40 bps 30-70 bps 30-70 bps 5-15 bps 60-120 bps ^200 bp revenue pool Estimated 2006 industry potential 5-20 bps 10-40 bps 0-20 bps -5-10 bps 10-60 bps 15-90 bps profit opportunity Source : 2005 Analyst briefing, AXA Analysis

9. Who? • Who (in an ideal world) are the clients that we want to deal with? • The need to define your strengths and weaknesses and who you like dealing with – people like us

10. Who Is The Ideal Client? • Not just anyone • Close to age 55 (control of 80% of investable assets) • They have specific personality traits • They are presently or were - executives / entrepreneurs/ professionals / inheritors – who is your specialist group? Where do your strengths lie? • They want to be happy – (advocates)

11. Engaging These Clients The Proposition to the Client Mr and Mrs Client …what do you want from your adviser? A) Beats the market / Gets Me The Biggest Tax Refund (these clients are transactional and price sensitive) B) Helps Me • Define/Visualise your key goals and dreams/ Gets me focussed • Reduces stress / Takes control • Enhances the quality of my life / Business (for these clients price is important but it is the value that is the key – DVD example)

12. Client Process….. • 15 mins on what you do – “essentially we are here to support your vision with protection and wealth strategies” • Personalised vision coaching session • Then a scenario planning session • Then a written action plan • The investment management – is a framework designed to maximise the possibility of achieving the goals identified – the vision drives the process – not the investment returns • Then ongoing advice / service / coaching – to focus clients on the long term

13. What? • What do we have to do to source and engage these clients? • They are already in our databases and in our social and business circle – they don’t know it and we don’t know it ….yet…..

14. Financial Planning is a Dirty Word • No one wants Financial Planning, Estate Planning and Insurances – BUT everyone wants – to live well and take care of their family • Change our description of what we do to Wealth Management – where our clients make choices to change the quality of their life – And we become change and portfolio managers • To do this integrate FP into the business model and make time spent on FP exempt from ‘the whip’ – identify clients without FP revenue and ‘portfolio manage’ these clients to capture FP revenue (practice example) • Have a CVP and be able to articulate it in 20 seconds and make sure everyone in the business can do exactly the same – walking referral sources! (“helping clients to prosper” example)

15. Post Acquisition Process Beliefs Relationships Influencers Needs Segment Motivators Values In Focus Client line of sight – make it relevant – fast and fun TangibleOutcomes Performance Intangibles Service Education & Involvement Loyalty Drivers Blurred (Post)

16. What if? • What if the markets turn south and I get the blame? • We’ve got that covered as well

17. Global Capital market returns: One way traffic Total returns by asset class (index), $A investor Source: Mercer 12-month returns to end of August

18. S&P/ASX 200 – Price Index Australian Equity Cash Investor behaviour: “Fire, Ready, Aim!” Net funds flow into equities and cash during the last market downturn. Money went into cash at exactly the wrong time! Q1 2002 – Q2 2003 -16% missed out on 20% rebound ASX 200 Price Index Net funds Flow Q1 2002 Q2 2002 Q3 2002 Q4 2002 Q1 2003 Q2 2003 Source: Plan for Life

19. The speed of market rebounds Source: Dow Jones index www.creatingwealth.co.nz

20. Investment Controversy Profits & Stock PriceDecline What is “value” investing?

21. Long-Term Earnings Power Investment Controversy Profits & Stock PriceDecline Which? Research Conclusion What is “value” investing?

22. Important Information This presentation has been prepared to provide you with general information only. It is not intended to take the place of professional advice and you should not take action on specific issues in reliance on this information. In preparing this information, we did not take into account the investment objectives, financial situation or particular needs of any particular person. Existing or potential investors should base their investment decision on the detailed information contained in the current disclosure document and should consult their financial adviser. Past performance information contained in this publication is generally compliant with industry standards but may not meet all of the requirements of ASIC Guidelines relating to past performance information for retail clients. Applications for investment in AXA Australia products will only be accepted on receipt of an application form accompanying a current PDS. Unless specifically stated, the repayment of capital or performance of our products is not guaranteed. This information is provided for persons in Australia only and is not being provided for the use of any person who is in any other country.