ABN 14 078 030 752

Centre Capital – Australian Equities update

Mark Folpp and Julian Beaumont

ABN 14 078 030 752 AFS Licence Number 229988

November 2008

About IML

IML established in 1998

IML is a ‘value-style’ investment manager:

Less volatile portfolio than overall market

Prepared to deviate from index

Valuation not momentum based

Long-term portfolio positions

A boutique investment manager with over $4 Billion FUM

IML seeks to buy quality companies:

With a competitive advantage,

with recurring earnings,

run by capable management,

that can grow,

........and trade at a reasonable price.

Year Business Assets

Profit (R.O.E.)

Dividend Retained Earnings

1 100.00 10.00 5.00 5.00

2 105.00 10.50 5.25 5.25

3 110.25 11.00 5.50 5.50

4 115.75 11.60 5.80 5.80

5 121.55 12.20 6.10 6.10

6 127.65 12.80 6.40 6.40

7 134.05

Business 101

Time

ValueStock Price

Value of Company

Company value vs share price

Australian shares’ golden age

Five double-digit years in a row:

2007: 16%

2006: 24%

2005: 23%

2004: 28%

2003: 15%

Up 160% in five years (with divs.)

Best five-year period ever recorded

ASX 200 Acummulation IndexJanuary 2003 - October 2007

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

Jan-

03Apr

-03

Jul-0

3Oct-

03Ja

n-04

Apr-0

4Ju

l-04

Oct-04

Jan-

05Apr

-05

Jul-0

5Oct-

05Ja

n-06

Apr-0

6Ju

l-06

Oct-06

Jan-

07Apr

-07

Jul-0

7Oct-

07

Source: Bloomberg

What’s a bear market, again?

Oh… so that’s what a bear market looks like

Source: Factset

ASX 200 Accumulation IndexOctober 2007 - 14 November 2008

3000

3500

4000

4500

5000

5500

6000

6500

7000

7500

Oct-07

Nov-07

Dec-07

Jan-

08

Feb-0

8

Mar

-08

Apr-0

8

May

-08

Jun-

08

Jul-0

8

Aug-0

8

Sep-0

8

Oct-08

Nov-08

Nowhere to hide

Source: Factset

S&P/ASX 300 Index - GICS Sector ReturnsOctober 31, 2007 - October 31, 2008

-8% -11% -13% -17%-24%

-31%-38%

-43%-48%

-55%-51%

-39%

-60-50-40-30-20-10

--102030

Health

Car

e

Telec

omm

unica

tions

Ser

vices

Consu

mer

Sta

ples

Energ

y

Info

rmat

ion T

echn

ology

Utilitie

s

ASX300

Fina

ncial

Mat

erial

s

Indu

stria

ls

Consu

mer

Disc

retio

nary

Prope

rty T

rusts

Bear markets in Australian shares since 1960

Source: Bloomberg, AMP Capital Investors

ASX 300 Industrials vs. ASX 300 Resources3 - year returns to June 2008

ASX 300 Industrials vs ASX 300 Resources3 year Annualised Returns to June 2008

0.800

1.300

1.800

2.300

2.800

3.300

Jun

-05

Aug

-05

Oct

-05

Dec

-05

Feb

-06

Apr

-06

Jun

-06

Aug

-06

Oct

-06

Dec

-06

Feb

-07

Apr

-07

Jun

-07

Aug

-07

Oct

-07

Dec

-07

Feb

-08

Apr

-08

Jun

-08

ASX 300 Industrials ASX 300 Resources

+ 36% p.a.

+ 4% p.a.

ASX 300 Industrials vs. ASX 300 ResourcesFrom 1 July to 31 October 2008

ASX 300 Industrials vs. ASX 300 Resources 4 Months Returns to October 2008

0.45

0.55

0.65

0.75

0.85

0.95

1.05

1.15

30-Ju

n-08

12-Ju

l-08

24-Ju

l-08

05-A

ug-0

8

17-A

ug-0

8

29-A

ug-0

8

10-S

ep-0

8

22-S

ep-0

8

04-O

ct-08

16-O

ct-08

28-O

ct-08

ASX 300 Industrials ASX 300 Resources

-42% p.a.

-11% p.a.

Source: IRESS

Cautious on:

Property companies

Stocks exposed to discretionary spending

Financials

Resource stocks

Financially engineered vehicles

Looking for companies with:

Defensive businesses

Good balance sheets

Long track record

Resource Sector – IML’s view

Still cautious overall

Around 13% of the portfolio

Only holding good quality stocks

Still avoiding speculative stocks

Iron Ore Contract Pricing

Source: Bloomberg

Iron Ore Contract Price

0

20

40

60

80

100

120

140

us$

/T

Iron Ore Contract Price

IML LT Price

Iron Ore

Source: Metal Bulletin

Global Iron Ore Demand and Supply

200

300

400

500

600

700

800

900

1000

1100

1200

1300

2002 2003 2004 2005 2006 2007f 2008f 2009f 2010f 2011f

MTpa

Total Seaborne Demand

Total Seaborne Supply

When the music stops! Mt Gibson Mining

Source: IRESS

Listed Property Sector

Correction was inevitable

Sector still faces challenges

More volatility expected

LPT gearing levels

0

8

15

23

30

38

45

1995

1996

1997

1998

1998

1999

2000

2001

2001

2002

2003

2004

2004

2005

2006

2007

%

0

8

15

23

30

38

45

%

Listed Property Trust sector Average Debt to Total Assets

Source: JP Morgan

Not a pretty picture – LPT Index10 years to October 2008

Source: IRESS

Financials

Avoiding investment banks

Only holding majors

• Limited exposure to US sub-prime

• Better positioned than overseas banks

• Market share increasing

The banks – rebuilding market share

Source: Commonwealth Bank of Australia

Australian Banks

But….

Bad debt provisions increasing

Negative impact from higher interest rates

‘De-facto’ capital raisings occurring

Further capital raisings likely

P/E 2008 (A)

Yield%

P/E 2009 (F*)

Yield%

Westpac 8.3x 8.7% 8.8x 8.8%

CBA 8.7x 8.6% 9.5x 8.6%

NAB 7.9x 10.3% 7.2x 10.3%

ANZ 7.7x 10.2% 7.4x 10.2%

Valuations – the banks

*Consensus estimates - Based on share prices at 17/10/2008

Valuation – portfolio versus market

P/E 09 Yield ‘09

IML Australian Share Fund 10.7x 6.6%

IML Industrial Share Fund 11.8x 7.2%

S&P/ASX300 9.7x 6.1%

IML figures as at 31/10/2008

Outlook for Industrial companies

Balance sheets mostly in good shape

Some sectors facing challenges

Valuations becoming attractive

Opportunities emerging

Some recent buys

Stock P/E (A) Yield (A) P/E (F) Yield (F)

Orica 9.4x 6.3% 8.7x 6.9%

Origin Energy 30.6x 1.6% 21.4x 2.8%

Sonic Healthcare 17.7x 4.0% 21.0x 4.2%

Brambles 14.6x 4.9% 11.5x 6.1%

QBE 10.3x 5.4% 9.3x 5.6%

Other core IML holdings

Stock P/E (A) Yield (A) P/E (F) Yield (F)

Amcor 13.5x 6.0% 11.4x 6.0%

Telstra 14.0x 7.0% 12.4x 7.0%

Crown 8.0x 12.5% 9.6x 10.2%

Transurban N/A 11.4% N/A 4%

Fosters 14.6x 4.8% 13.8x 5.0%

IML Funds v ASX 300

P/E 09 Yield %

Est 09

IM Australian

Share Fund

10.7x 6.5%

IM Industrial Share

Fund

11.8x 7.2%

ASX300 9.7x 6.1%

IML equity market outlook

More volatility expected

Commodity prices stretched

Valuations becoming more attractive

Buying opportunities emerging

Important information

While the information contained in this presentation has been prepared with all reasonable care, Investors Mutual Limited

accepts no responsibility or liability for any errors or omissions or misstatements however caused. This is general financial

product advice only and is not intended to constitute a securities recommendation. This information does not account for your

investment objectives, particular needs or financial situation. Statements of opinion are those of IML unless otherwise

attributed. Except where specifically attributed to another source, all figures are based on IML research and analysis.

Investors should be aware that past performance is not indicative of future performance. Returns can be volatile, reflecting

rises and falls in the value of underlying investments. Potential investors should seek independent advice as to the suitability of

the Fund to their investment needs. The fact that shares in a particular company may have been mentioned should not be

interpreted as a recommendation to either buy, sell or hold that stock. Any commentary about specific securities is within the

context of the investment strategy for the given portfolio. Investors Mutual Limited is the issuer of the Investors Mutual

Australian Share Fund, Investors Mutual Industrial Share Fund, Investors Mutual Future Leaders Fund, Investors Mutual

Australian Smaller Companies Fund and Investors Mutual Diversified Value Fund. Applications can only be made on the form

in the current Product Disclosure Statement dated 1June 2006, or for Investors Mutual Diversified Value Fund, dated 21st

March 2005, or through IDPS products that include these Funds. The Product Disclosure Statement can be obtained by

contacting Investors Mutual or on www.iml.com.au. Potential investors should consider the Product Disclosure Statement

before deciding whether to invest, or continue to invest in the Funds.

The prospective P/E ratios and earnings forecasts referred to in this presentation constitute estimates which have

been calculated by IML's investment team based on IML's investment processes and research.

Centre CapitalClient Briefing

ABN 76 111 397 392 AFS Licence No. 308107

GVI Investment Update

From uncertainty to fundamentalsThe rising importance of dividends in total returns

November 2008

Valuations around the world

Source: FactSet October 31, 2008

NORTH AMERICAPE: 13.8xDY: 2.9%

UKPE: 7.2x

DY: 5.6%

EMUPE: 7.9x

DY: 6.0%

JAPANPE: 11.3xDY: 2.8%

HONG KONGPE: 8.3x

DY: 5.0%

SINGAPOREPE: 6.8x

DY: 5.5%

AUSTRALIAPE: 11.0xDY: 6.0%

Reasons behind the falls

Global financial crisis now impacting real economies

US, UK, EU and Japan close to or in recession.

Global growth slowing as spending contracts and credit remains

scarce.

Investor confidence has collapsed.

Market being driven by fear and indiscriminate selling.

Hedge funds contributing to volatility with forced selling.

Sectors - Where are the greater risks?

Financials - difficult operating environment

Consumer discretionary - Consumers lower

discretionary income

Is going overseas that different?

The CommSec

“Mums & Dads” IndexGlobal Equivalents

Telstra Vodafone Group, Telenor & Telekom Austria

CBA BNP, Santander & UOB

Woolworths Tesco & Walmart

Qantas Singapore Airlines, Cathay Pacific

AMP ING, Zurich & ABN Amro

Coles Carrefour, Sainsbury

Tabcorp William Hill & Rank Group

Suncorp-Metway Credit Agricole, Unicredit and BNP Paribas

IAG AXA, Royal and Sun Alliance

Ways GVI aims to lower risk

Portfolio substantially hedged back into $AUD

Portfolio can hold up to 20% cash

No direct emerging markets exposure

Only hold stocks that make profits & pay dividends

Non-benchmark approach to investing

GVI - Non-benchmark approach

As at September 30, 2008 Source: MSCI, GVI

0.0%

4.4%

9.8%

10.0%

21.0%

54.8%

11.3%

8.4%

4.1%

2.3%

60.5%

13.4%

CASH

Asia/Pacific Ex Japan

United Kingdom

Japan

Europe

North America

MSCI World Index AUD Hedged % GVI Portfolio Weight %

GVI - Non-benchmark approach

As at September 30, 2008 Source: MSCI, GVI

0.0%

4.3%

4.9%

6.4%

9.1%

10.3%

10.5%

10.6%

10.8%

11.6%

21.6%

11.3%

12.2%

17.8%

6.6%

6.6%

3.4%

8.5%

0.0%

16.1%

11.9%

5.6%

Cash

Telecommunication Services

Utilities

Materials

Consumer Discretionary

Consumer Staples

Health Care

Information Technology

Industrials

Energy

Financials

MSCI World Index AUD Hedged % GVI Portfolio Weight%

Investment opportunities

Telecom, utilities, and pharma sector

KPN and Telefonica – delivering consistent shareholder value

E.On, GDF and RWE – limited impact on EPS during recession

Johnson and Johnson has a highly diversified product mix with market

positions.

All of these companies have the following in common

Dependable management

Strong cash flow generation

Clear vision business model

Good cash returns to shareholders

Investment opportunities

Energy Focus Group

Market Value Historical Average FCFCurrent

Dividend Est. Div FY0 Interest 1 Year % Price to FCF -DivCompany Name (USD) PE PE FY1 EPS Growth Yield Yield Yield ROE Cover Price Change Book Gap

Valero Energy Corp. 9,861 2.3 4.0 -26.0 33.0 2.7 31.0 24.6 19.7 -74.2 0.5 6.0Technip S.A. 2,991 17.6 5.6 110.4 25.5 5.7 7.2 5.5 6.0 -65.1 1.0 -1.1Marathon Oil Corp. 18,867 4.2 3.8 -2.7 12.1 3.8 4.0 23.3 91.3 -57.9 0.9 3.2CNOOC Ltd 35,445 7.5 5.0 18.4 5.8 4.5 6.9 25.8 26.0 -53.5 1.8 -4.7OMV AG 9,685 4.7 3.7 3.8 -3.4 5.0 5.7 20.9 13.1 -49.5 0.9 3.5Repsol YPF S.A. 22,254 5.5 5.5 -4.4 6.6 5.8 7.8 17.7 13.1 -46.3 0.9 -8.8ConocoPhillips 73,169 6.2 3.9 16.3 19.2 3.7 3.9 13.9 23.6 -43.6 0.8 -8.6Galp Energia SGPS S.A 8,589 8.6 13.3 -20.6 6.4 4.0 3.9 35.1 28.0 -42.9 2.8 -7.4StatoilHydro ASA 59,020 8.2 5.8 14.7 11.8 7.6 7.8 25.6 45.2 -35.2 2.0 -1.1Occidental Petroleum Corp. 40,826 7.4 4.8 13.3 9.0 2.1 2.7 24.1 26.3 -33.0 1.6 1.3Total S.A. 115,452 6.8 6.3 0.5 8.1 5.3 6.3 30.9 15.7 -29.3 2.0 0.3ENI S.p.A. 82,799 6.1 5.6 1.4 3.6 7.8 8.4 25.2 252.9 -28.4 1.5 0.3Woodside Petroleum Ltd 18,948 21.2 11.4 -36.4 -0.6 2.6 4.7 27.3 66.3 -23.2 5.4 1.9Chevron Corp. 149,418 7.7 5.9 6.5 6.1 3.4 3.6 25.6 195.3 -21.1 1.8 0.7Fred. Olsen Energy 2,148 10.3 6.0 52.5 -5.6 11.3 13.1 34.7 13.6 -20.7 3.5 -9.2BP PLC 146,781 6.8 5.2 7.6 7.7 8.9 6.9 23.4 10.5 -18.8 1.5 2.7Exxon Mobil Corp. 369,545 9.5 7.8 1.9 10.4 2.0 2.2 34.5 177.2 -18.5 3.0 0.6Santos Ltd. 5,586 17.7 14.2 3.7 -0.5 2.9 3.0 15.2 6.4 6.4 2.5 8.7

What do we look for in stocks?

Strong Business

Attractive Valuation

StrongManagement

Proven track record

Ability to grow shareholder value

Clear vision

Competitive advantage

Strong business model

Consistent and predictable earnings

Strong balance sheet

Ability to grow earnings

and dividends over time

Companies we invest in

Portfolio remains attractively valued

P/E ’FY1Dividend Yield

’FY1

GVI Global Industrial Share Fund* 9.3x 5.7%

MSCI (World Free Index) 13.7x 3.7%

S&P/ASX 300 (Australia) (2009) 11.0x 6.0%

As at October 31, 2008 * Indicates GVI forecasts

Source: Figures based on GVI research and data from Morgan Stanley Research

Dividends – the power of compounding

Dividend growth stocks outperform

Source: Ned Davis Research - Returns based on monthly equal-weighted geometric average of total returns of S&P 500 reconstituted monthly

Historical total returns of stocks in S&P 500 1972 - 2006

11.00%10.30%

7.20%

3.60%

2.40%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

Dividend Growersand Initiators

All Dividend PayingStocks

Dividend Payerswith No Change in

Dividends

Dividend Cutters orEliminators

Non-DividendPaying Stocks

GVI –Dividend Yield Dispersion 2008

25%

43%

32%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Yield < 3% 3% - 6% Yield > 6%

% o

f P

ortf

olio

Val

ue

As at September 30, 2008 Source: GVI

Balance sheet strength

Source: FactSet / GVI September 30, 2008

Outstanding High QualityVery High Quality

Balance Sheet Quality

31%

25%

43%

Net Cash or Int. Cover > 30x Int. Cover 10x - 30x Int. Cover 3x - 10x

Market outlook and GVI’s strategy

Market uncertainty and volatility likely to continue

Businesses with strong balance sheets and cash flows will

over the long-term outperform

Opportunities emerging given indiscriminate selling

Cash flow generation is key to a company’s ability to

pay dividends

License information & Disclaimer

Treasury Group Investment Services Limited (“TIS”) is the responsible entity for the GVI Global Industrial Share Fund (the “Fund”). Applications can only be made on the form in the current Product Disclosure Statement dated 1 June 2006, or through IDPS products that include this Fund. The Product Disclosure Statement can be obtained by contacting Global Value Investors www.gvi.com.au Potential investors should consider the Product Disclosure Statement before deciding whether to invest or continue to invest in the Funds.

While the information contained in this presentation has been prepared with all reasonable care, Global Value Investors Limited (GVI) and Treasury Group Investment Services Limited (TIS) accept no responsibility or liability for any errors or omissions or misstatements however caused. This is not personal advice and is not intended to constitute a securities recommendation. This information has been prepared without taking account of your objectives, particular needs or financial situation. Statements of opinion are those of GVI and TIS unless otherwise attributed. Except where specifically attributed to another source, all figures are based on GVI and TIS research and analysis.

TIS has also appointed the staff of Investors Mutual Limited (IML) as authorised representatives to provide general product advice in relation to this Fund. As the licensee, TIS will be responsible for any financial services provided by TIS on behalf of GVI, and for the conduct of GVI and IML staff in their capacity as authorised representatives of TIS.

This presentation is given by an authorised representative of TIS.

Investors should be aware that past performance is not indicative of future performance. Returns can be volatile, reflecting rises and falls in the value of underlying investments. Potential investors should seek independent advice as to the suitability of the Fund to their investment needs. The fact that shares in a particular company may have been mentioned should not be interpreted as a recommendation to either buy, sell or hold that stock.

The prospective P/E ratios and dividend yields referred to in this presentation constitute estimates which have been calculated by GVI’s investment team based on GVI’s investment processes and research.