INVESTSMART GROUP LIMITED — Capital/Financing Update 2015

Dec 16, 2015

Australasian Wealth Investments Limited ACN 111 772 359 Level 2, 122 Pitt Street, SYDNEY, NSW, 2000 PO Box Q744 QVB, NSW, 1230 Telephone: +61 2 8305 6000 Facsimile: +61 1300 553 443

==> picture [100 x 42] intentionally omitted <==

17 December 2015 Attention: Company Announcements ASX Limited

By E-­‐Lodgment

**Australasian

Wealth Investments Limited (ASX Code: AWI) BUSINESS UPDATE – REVISION TO GUIDANCE**

Deteriorating market conditions since 1 July 2015 as measured by the All Ordinaries Accumulation Index, which has dropped 6.2%, has resulted in the company now projecting flat revenue growth for FY16 resulting in EBTA projected to be $2.5m in FY16.

Guidance given to the ASX in August 2015 of revenues growing by 12% from normalised revenue for FY15 was based on 6% growth in the share market. As such, the Board feels it prudent to project, that in the absence of a strong recovery in share prices, growth in trail commission revenue and softer markets impacting growth in subscription revenue, FY16 revenue growth will remain flat.

The primary driver for this guidance update is the impact on revenue due to the recent market decline. The market will behave as markets do, but we see no reason to change our long term average growth projection of 6%.

The major restructure of AWI is now fundamentally complete. The business has no debt, cash on hand, has made a profit in each month since July 1 2015. Most importantly, the key dynamics of the business are improving strongly.

We look forward to providing our half yearly update in late February 2016. For further information or comment, please contact AWI on 02 8305 6000

==> picture [148 x 48] intentionally omitted <==

Paul Clitheroe Executive Chairman