Helping clients protect assets and build wealth

Investment Philosophy

Welcome to Prime Financial Group

Prime Financial Group partners with you and your

accountant for fully integrated investment advice.

We use this model because we believe that your needs

are best served by having an Accountant at the heart

of your personalised financial advice. Advice that is

tailored for your needs, goals and aspirations.

Through this integrated partnership, Prime Financial

Group can offer solutions that fit your objectives

regardless of your stage in life and investment goals.

You have total flexibility in choosing your investment

path. This is possible because you are dealing directly

with those that are managing your assets.

Throughout this process one principle is key -

protecting your wealth is paramount.

Assets are typically labelled as one of two types – Growth and Defensive.

Our principles of portfolio management

Click on either Growth or Defensive below to see our range of standard options.

With two investment paths – Growth and Defensive, your portfolio is designed to maximise the returns and minimise risk according to your personal needs and risk tolerance. With our comprehensive range of investment options, profiles and advice, together we can tailor a portfolio that seeks to preserve your wealth and achieve growth that enhances your complete financial position.

A range of options to build your wealth

Growth

Growth

This investment strategy is all about long-term capital growth. It suits

investors seeking to grow the value of their assets over the longer term,

and who are willing to accept bouts of volatility in asset values. The

portfolio mix includes Australian shares, international shares, direct

property, fixed and variable income securities and cash.

Historic performance of a typical growth portfolio 6.96% p.a.

Minimum investment horizon 7+ YEARS

Biggest drawdown -44.5% (Sep 2007-Jan 2013)

Months to recover 64 months

Prime Asset Allocation

Cash 5%Fixed & Variable Income 20%Australian Equities 42.5%International Equities 22.5%Alternatives & Property 10%

Asset class proxies used: ASX200 Accumulation Index; ASX200 Property Accumulation Index; MSCI World Total Return Index (unhedged); Australian 10-year Government Bond Index; Australian 3-month Bank Bill Swap Index; Monthly data since May 2000. Figures as at May 2015.

High Growth

High growth is designed for those investors who are looking for capital

appreciation over a longer time horizon and who are willing to accept

the volatility associated with high growth assets. Types of investments

include Australian shares, international shares and direct property.

Historic performance of a typical high growth portfolio 7.26% p.a.

Minimum investment horizon 10+ YEARS

Biggest drawdown -53.3% (Sep 2007-Oct 2013)

Months to recover 73 months

Prime Asset Allocation

Cash 5%Fixed & Variable Income 0%Australian Equities 57.5%International Equities 27.5%Alternatives & Property 10%

With two investment paths – Growth and Defensive, your portfolio is designed to maximise the returns and minimise risk according to your personal needs and risk tolerance. With our comprehensive range of investment options, profiles and advice, together we can tailor a portfolio that seeks to preserve your wealth and achieve growth that enhances your complete financial position.

A range of options to build your wealth

Defensive

Conservative

The benefits of a conservatively constructed portfolio is a steady income

stream and capital stability. This makes it ideal for investors seeking to

preserve their capital but also to receive an income that is greater than

cash rates. The types of investments used to achieve this includes; cash,

Australian and global fixed and variable income securities.

Moderate

A moderate risk portfolio still counts on a large degree of capital

stability, but is prepared to take on some modest risk to boost returns.

Low volatility and steady income are core attributes of this portfolio.

Balanced

A balanced portfolio is for investors seeking a mix of capital

appreciation and income over a longer time horizon. Investors should

be prepared to accept moderate fluctuations in capital value. To

help achieve this, a balanced portfolio invests in Australian shares,

international shares, direct property, fixed and variable income

securities and cash.

Historic performance of a typical conservative portfolio 6.0% p.a.

Minimum investment horizon 3+ YEARS

Biggest drawdown -4.49% (Dec 2008-Apr 2010)

Months to recover 16 months

Historic performance of a typical moderate portfolio 6.47% p.a.

Minimum investment horizon 3+ YEARS

Biggest drawdown -18.1% (Sept 2007-Nov 2010)

Months to recover 38 months

Historic performance of a typical balanced portfolio 6.8% p.a.

Minimum investment horizon 5+ YEARS

Biggest drawdown -35.6% (Sep 2007-Nov 2012)

Months to recover 62 months

Prime Asset Allocation

Cash 5%Fixed & Variable Income 95%Australian Equities 0%International Equities 0%Alternatives & Property 0%

Prime Asset Allocation

Cash 5%Fixed & Variable Income 60%Australian Equities 20%International Equities 10%Alternatives & Property 5%

Prime Asset Allocation

Cash 5%Fixed & Variable Income 35%Australian Equities 35%International Equities 17.5%Alternatives & Property 7.5%

Asset class proxies used: ASX200 Accumulation Index; ASX200 Property Accumulation Index; MSCI World Total Return Index (unhedged); Australian 10-year Government Bond Index; Australian 3-month Bank Bill Swap Index; Monthly data since May 2000. Figures as at May 2015.

There is a direct correlation between risk and reward. Conservative portfolios are structured to minimise risk and hence typically attract a lower return over the medium to long term.

High growth portfolios conversely offer a higher likelihood of intermittent volatility, but the potential to deliver a far higher reward.

Conservative

Moderate

Balanced

Growth

High Growth

Investment Strategy Spectrum – Risk vs Reward

Ris

kH

IGH

LOW

RewardHIGHLOW

Investment Strategy Spectrum – Risk vs Reward

Risk versus reward performance

Prime Financial Group has a comprehensive investment process. How we evaluate and choose where investments are made is an extensive, collective process that as you can see in the chart below, incorporates a structured in depth research and analysis process.

Active Management(1 step)

Immediate portfolio change

Client Instructed (3 steps)

• Phone/Email/SMS• You decide (yes/no)• Portfolio change if yes

Research Analysis Decision Implementation

Gain insightsfrom

• Company reports• Market intelligence• Company updates• Internal & external research

Ranking &Recommendation

InvestmentCommittee

• Buy• Sell• Hold• Participate• Do nothing

Provides consistency ofrecommendations to client.

PortfolioConstruction

Our investment process

Why diversify?Prime strives to protect assets and build wealth.

This aspiration is embedded in our investment philosophy in many

ways, be it in our preference for large, well-known, high-quality

securities and managed funds, or in our broader belief in investment

diversity. Diversification is vital to the health of a portfolio, and

ensures that at any point in the economic cycle, your mix of asset

classes is working in tandem to provide returns and stability.

We consider asset allocation across different investment types

and geographies as fundamental to safeguarding portfolios from

unnecessary risk.

Find out how Prime Financial Group can help you:Phone 1800 064 959 | Primefinancial.com.au |

Prime Financial Group LtdACN: 009 487 674

Head OfficeLevel 17, Como Office Tower 644 Chapel StreetPO Box 6105South Yarra VIC 3141

Tel 03 9827 6999 Fax 03 9827 9100

Client Services1800 064 959clientservices@primefinancial.com.au www.primefinancial.com.au