INVESTSMART GROUP LIMITED — AGM Information 2009

Nov 5, 2009

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Fat Prophets Australia Fund Limited Annual General Meeting 2009 Ch a rman s resen i ’ P t a ti on

Andrew Brown

6 November 2009

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Disclaimer

• The material in this presentation is prepared by Tidewater Asset Management Pty. Limited (“ Tidewater ”) on behalf of Fat Prophets Fund Management Australia Pty. Limited (“ FPFMA ”) in good faith based on the facts known to it at the time of preparation and does not purport to contain all relevant information in respect of the Financial Products to which it relates. It is current as at the date of this p resentation unless otherwise stated. An y p ro j ections are estimates onl y and ma y not be realised in the future. Tidewater/FPFMA has prepared this report for Fat Prophets Australia Fund Limited (“ FAT ”). It is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or particular needs (“ Objectives ”) of any individual investor. Accordingly, no investment security mentioned in this presentation or in the material should be taken as an investment recommendation.

• Nothing in this research will be construed as a notification to buy or sell any Financial Products, or to engage in or refrain from engaging in any transaction in a Financial Product. This research is based on information obtained from sources believed to be reliable but Tidewater/FPFMA does not make any representation or warranty that it is accurate, complete or up to date. Tidewater/FPFMA accepts no obligation to correct or update the information or opinions in it. Any persons relying on the above information does so at their own risk.

• Tidewater/FPFMA disclaims liability for all loss or damage whatsoever arising from any use of this material or its contents or otherwise arising in connection therewith, notwithstanding any error or omission including negligence.

• All d ata i n t hi s presentat on i i s f or per o i d s en d e d or as at 30 S eptem b er 2009 un ess l state d otherwise.

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Toda ’s a enda y g

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� I ntro d uct ons i

• Chairman’s Address

� R eport & ccounts A

• Remuneration Report

• R e-e ect on o l i f Di rector

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� I nvestment M anager s resentat on ’ P i

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Cumulative GROSS performance: FAT versus ASX/S&P 300 Accumulation

	Cumulative GROSS performance: FAT versus ASX/S&P 300 Accumulation	Cumulative GROSS performance: FAT versus ASX/S&P 300 Accumulation
80% 90%	FAT ASX 300
	FAT ASX 300
70% 50% 60%
30% 40%
0% 10% 20%
-10%	05 05 05 05 05 06 06 06 06 06 06 07 07 07 07 07 07 08 08 08 08 08 08 09 09 09 09
4 Source: IRESS, Tidewater, FPFMA

	Performance versus selected managers	Performance versus selected managers	Performance versus selected managers	Performance versus selected managers
	% ( f f ) per annumgross o ees	1 year	2 years
	FAT PROPHETS	19.73%	-5.97%
	AMP Capital Value	11.75%	-7.45%
	BT Invest. Management	11.07%	-7.30%
	Bernstein Value	14.03%	-10.55%
	Dimensional	1752%	-365%
		.	.
	Investors Mutual	8.86%	-7.47%
	Maple Brown Abbott	14.23%	-4.81%
	Perennial Value	21.16%	-4.38%
	Perpetual	9.54%	-7.16%
	Tyndall Value	13.62%	-6.96%
	MEDIAN MANAGER	13.13%	-7.52%
	S&P/ASX 300 Accumulation	8.50%	-11.35%
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	Comparative PERFORMANCE versus LIC’s	Comparative PERFORMANCE versus LIC’s	Comparative PERFORMANCE versus LIC’s	Comparative PERFORMANCE versus LIC’s	Comparative PERFORMANCE versus LIC’s	Comparative PERFORMANCE versus LIC’s
	P t NTA re ax	NTA Sep 08	DPS	NTA Sep 09	T t l o a Return
	Amcil	$0.62	$0.05	$0.72	+24.2%
	Argo Invs	$6.10	$0.27	$6.38	+9.0%
	Australian Foundation	$4.62	$0.21	$4.79	+8.2%
	C t A t li en ury us ra a	$0 98 .	$0 09 .	$1 04 .	15 3% + .
	Emerging Leaders	$0.99	-	$1.11	+12.1%
	FATPROPHETS	$094	-	$115	+222%
		.		.	.
	Hyperion	$1.40	$0.085	$1.52	+14.8%
	Whitefield	$3.46	$0.17	$3.72	+12.4%
	Wilson Investments	$0.93	$0.04	$0.95	+6.1%
	vanEyk Three Pillars	$1.00	$0.025	$1.02	+4.5%
	6 Source: ASX, Tidewater, FPFMA

Comparative PRICING versus LIC’s

	Pre tax NTA 1 year Return NTA Sep 09 Price 30 Sep D-NTA 30/9 Amcil +24.2% $0.72 $0.675 6.2%	Pre tax NTA 1 year Return NTA Sep 09 Price 30 Sep D-NTA 30/9 Amcil +24.2% $0.72 $0.675 6.2%	Pre tax NTA 1 year Return NTA Sep 09 Price 30 Sep D-NTA 30/9 Amcil +24.2% $0.72 $0.675 6.2%	Pre tax NTA 1 year Return NTA Sep 09 Price 30 Sep D-NTA 30/9 Amcil +24.2% $0.72 $0.675 6.2%	Pre tax NTA 1 year Return NTA Sep 09 Price 30 Sep D-NTA 30/9 Amcil +24.2% $0.72 $0.675 6.2%	Pre tax NTA 1 year Return NTA Sep 09 Price 30 Sep D-NTA 30/9 Amcil +24.2% $0.72 $0.675 6.2%
	Pre tax NTA	1 year Return	NTA Sep 09	Price 30 Sep	D-NTA 30/9
	Amcil	+24.2%	$0.72	$0.675	6.2%
	Argo Invs	+9.0%	$6.38	$6.65	(4.2%)
	Australian Found.	+8.2%	$4.79	$5.04	(5.2%)
	Century Australia	+15.3%	$1.04	$0.90	13.5%
	Emerging Leaders	+12.1%	$1.11	$0.825	25.7%
	FAT PROPHETS	22 0% + .	$1 15 .	$0 895 .	22 2% .
	Hyperion	+14.8%	$1.52	$1.38	9.2%
	Whitefield	+12.4%	$3.72	$3.39	8.9%
	Wilson Invests	+6.1%	$0.95	$0.775	18.5%
	vanEyk Three Pill	+4.5%	$1.02	$0.89	12.7%
	7 Source: ASX, Tidewater, FPFMA

35.0%	FAT: discount to pre tax NTA/share	FAT: discount to pre tax NTA/share
250% 30.0%	undiluted
20.0% .
10.0% 15.0%	average =20.2% Option diluted
0.0% 5.0%
-5.0%	r-05 n-05 g-05 t-05 c-05 b-06 r-06 n-06 g-06 t-06 c-06 b-07 r-07 n-07 g-07 t-07 c-07 b-08 r-08 n-08 g-08 t-08 c-08 b-09 r-09 n-09 g-09
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Value discre anc as at 30 Se tember 2009 p y p

Shares held in ASX Top 10 companies Shares held in ASX #11 - #100 companies C as h/li qu id s TOTAL – MOST HIGHLY LIQUID ASSETS Share price as at 30/9/09:

58.0% 16.2% 2 . 0% 76.2% = 87.5cents 89.5cents

You were paying 2cents for 27.5cents of “smaller companies”

APN News Oceania Capital Beach Petroleum Premier Investments Coffey International BT Investment Manag’t Healthscope Kingsgate Seven Network

25.5cents x 30.263million shares = $7.7MILLION VALUE GAP

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Resolution 1 proxies: Remuneration Report

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P rox es or i f th e reso u l ti on 3 618 786 , , Proxies a ainst the resolution 185 757 g , O en Proxies - Chair 47 000 p , O en roxies - Other 185 700 p p , Eli ible rox votes 4 037 243 g p y , ,

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Abstentions

65 000 ,

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Resolution 2 proxies: Re-election of Director

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P rox es or i f th e reso u l ti on 3 803 543 , , Proxies a ainst the resolution 51 000 g , O en Proxies - Chair 62 000 p , O en roxies - Other 185 700 p p , Eli ible rox votes 4 102 243 g p y , ,

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A b stenti o ns

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