CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITEDABN 57 007 305 384 AFSL 238390
Presentation to PortfolioConstruction Conference 2008
“The Paradox of Passive Alpha –Passive Hedge Funds Management”g g
Kate Wilkie
Vice President, Alternative Investments AustraliaVice President, Alternative Investments Australia
Important Information
Issued by Credit Suisse Asset Management (Australia) Limited (Credit Suisse) ABN 57 007 305 384 AFSL 238390. Credit Suisse has used its best endeavours to ensure the accuracy reliability and completeness of the information contained in thisSuisse has used its best endeavours to ensure the accuracy, reliability and completeness of the information contained in this presentation. Subject to law, Credit Suisse, its directors, employees, affiliates and consultants do not provide any warranty oraccept any liability for errors or omissions or any losses or damages suffered by the recipient of this presentation or any other person.
Thi t ti h b d f l i f ti l f th i t d d i i t It d t t k i t tThis presentation has been prepared for general information only for the intended recipients. It does not take into account an individual’s objectives, financial situation or needs, which are necessary considerations before making any investment decision. Opinions constitute our judgment at the time of issue and are subject to change.
Offers for investments in the Credit Suisse/ Tremont Index Strategies Fund are made in, or accompanied by a copy of the current g p y pyAlternative Investment Funds Product Disclosure Statement (PDS). You should consider the PDS in deciding whether to acquire or continue to hold the product. If you wish to invest, you will need to complete an application form contained in, or which accompanies the current PDS. Please contact us directly should you have any queries in relation to the information in this presentation on 1300 366 890, or to obtain a copy of the PDS.
Net Returns are calculated using pre-distribution month end withdrawal unit prices, and assumes all income is reinvested in additional units. Total returns are calculated by adding back the Management Costs deducted. As benchmark performance is gross of fees, we recommend that the total returns performance figures be used when comparing our performance with the relevant benchmark performance. Past performance is not necessarily indicative of future performance. Returns may be volatile
d f tand may vary from year to year.
2CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITEDABN 57 007 305 384 AFSL 238390
Agenda
1. Introduction - Rationale for Investing in Alternatives
2. Passive Hedge Fund Investing
Rationale of Index Based InvestingHedge funds: premised on the skill of the manager to add AlphaMarket drivers of Risk
3 H d F d I di i P tf li C t t3. Hedge Fund Indices in a Portfolio Context
4. Performance and Outlook
3
1. IntroductionRationale for Investing in Alternatives
4CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITEDABN 57 007 305 384 AFSL 238390
Australian HNWs want more Alternatives in their PortfolioCurrent allocations versus maximum % of total assets that investors believe should be in alternatives (among those with $2million+ in total investable assets)
% of all investment assets in alternatives among those utilising alternatives
25%
Maximum percentage of total assets that should be invested in alternative investments at the current time
Current allocation
Perceived maximum
Mean 18% 25%
15%
20% Median 13% 18%
Maximum allocation
10%
15%
Current allocation
5%
Source: Copyright 2007 Investment Trends Pty Ltd. Dec 06 Alternative Investments: Investor Report.
0%0% 1% 2% 3% 4% 6-9% 10-
14%15-
19%20-
29%30-
39%40-49%
50-59%
60-69%
70-79%
80-89%
90-99%
100%
5
py g y p
CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITEDABN 57 007 305 384 AFSL 238390
High Net Worth Investors (HNW) in Alternatives
Global HNW financial wealth is over USD 33 trillion
Clients with net financial investable assets of over USD 1 million
8.7 million households worldwide
Investment goals shifting from preservation to wealth growth accumulation
10%19% 20% 22%
Changes in typical Asset Allocation, 2002-2007
25%
13% 13% 11%
16% 16% 15%
15%
Alternative InvestmentsReal Estate
30%
24% 21% 22%
Real EstateCashFixed IncomeEquities
Source: Merrill Lynch World Wealth Report 2006
20%
28% 30% 31%
2002 2004 2005 2007
6
y p
CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITEDABN 57 007 305 384 AFSL 238390
Global HNW allocations to Alternatives f % % (1)
Australian investors in Alternatives have doubled in 5 years(2)
Australians who invest in Alternatives allocate 18% of their portfolios to them and target 25%(2)
Increased from 25% to 37% in 5 years (1)
Australians who invest in Alternatives allocate 18% of their portfolios to them and target 25%(2)
Their three leading Alternative Investments are Infrastructure, Private Equity and Unlisted Property(2)
50% Proportion of HNW investors ($2million+ investable assets)
38%35%
27%
25%
30%
35%
40%
45%
50% Proportion of HNW investors ($2million+ investable assets) using each type of alternative asset class(2)
19% 18%14%
9%
2%
0%
5%
10%
15%
20%
25%
0%
Infras
tructu
re fun
dsPriv
ate eq
uity f
unds
Unliste
d prop
erty
Commod
ities f
unds
edge
/abso
lute r
eturn
funds
Fund o
f hed
ge fu
nds
Mortga
ge tru
sts
CDOs
(1) Source: Merrill Lynch World Wealth Report 2006. Clients with net financial investable assets of over US$1m. Alternatives includes property.
(2) Source: Copyright 2007 Investment Trends Pty Ltd. Dec 06 Alternative Investments: Investor Report. Based on a quantitative survey conducted over November 2006 through January 2007 of over 3,000 Australian investors who have utilised Alternative Investments. Covers a broad range of alternative investments
Hedg
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CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITEDABN 57 007 305 384 AFSL 238390
Increase in Alternatives investing as wealth increasesby average portfolio size and income
Tax effective inv’s Fund of hedge funds1.15Higher
Wraps/Mastertrusts Margin lending
into sharesGearing into mgd funds
Tax effective inv s
Private Equity funds
Hedge/absolute return funds
Futuresg
ETFsHigher
My own home
IMAs
Gearing into mgd funds
SMSFsInv. PropertyWarrants
Self-funding warrants
q y
LICs
Instalment warrants Infrastructure funds
Hybrid securities
ETOs
1.0
inco
me
Term
Super (abovemin. cont'ns)
Managed funds
Unlisted propertytrusts
Pooled dev. funds
Mortgage trusts
LICsIndex-backed
fundsCommodities funds
Ave
rage
deposit
Shares held in my own name
Online savings account
CFDsMortgage trusts
Capital guaranteed prod’s
0 75Lower
Average portfolio size 0.6 1.5
Lower Higher1.0
0.75
Source: Copyright 2007 Investment Trends Pty Ltd. Dec 06 Alternative Investments: Investor Report
8
py g y p
CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITEDABN 57 007 305 384 AFSL 238390
Why Include Alternatives in your Portfolio - Three-Year Risk -R tReturn
Asset Class Performance (3 years to 31-Dec-07)25%
ASX Equities
20%
rn
ASX Property
EMD
Global EquitiesEuro CBs
Asian CBs
GHIF10%
15%
nnua
lised
retu
r
CS/Tremont Hedge Fund Index
GHIFBenchmark
AUD CashLGA
Global Bonds
AFIAUD ILBs
High Yield Global CBsLoans
5%
An
US Preferreds
-5%
0%
0% 2% 4% 6% 8% 10% 12% 14%0% 2% 4% 6% 8% 10% 12% 14%
Annual standard deviation of returns
Sources: Bloomberg, JP Morgan, Lehmans & CS
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CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITEDABN 57 007 305 384 AFSL 238390
2. Passive Hedge Fund Investing
10CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITEDABN 57 007 305 384 AFSL 238390
Rationale of Index Investing
Belief in the market average as a long term efficient investment solution
Traditional asset classes have demonstrated the benefits of index investingTraditional asset classes have demonstrated the benefits of index investing
Easy access to diversified Hedge Fund exposure minimising individual fund risk
Access to many closed funds
Rules-based index construction leads to increased transparency
Cost efficient (no performance fee)
11
CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITEDABN 57 007 305 384 AFSL 238390
Credit Suisse/Tremont Hedge Fund IndexAiming for the Standard of Traditional IndicesFirst asset weighted hedge fund index to follow the construction characteristics of equity and bond indices as closely as practical
Representative
Aiming for the Standard of Traditional Indices
Representative
Database with over 5,000 hedge funds representing USD 1.3 trillion in assetsConstructed as a “real” index including closed and illiquid fundsAsset-weighted index as are all other market leading traditional indicesComprehensive compilation of data continually maintained and expandedEmbedded in Credit Suisse and Tremont infrastructures with over 200 dedicated hedge fund professionalsFull historical calculation back to 1994 including funds that ceased to exist.
ObjectiveEmploy rules-based construction process to maintain objectivityAdhere to strict reporting guidelines.
TransparentCredit Suisse/Tremont Hedge Fund Index discloses its constituent funds, sector-weights and methodologyHigh level of transparency through a comprehensive web site www.hedgeindex.com, including up-to-date and historical informationinformation.
An efficient and cost effective solution to gain Hedge Fund Exposure.
12CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITEDABN 57 007 305 384 AFSL 238390
Hedge Funds: Premised on the Skill of the Manager to add Alphag g pStructure
A partnership, corporation or other investment vehicle with an absolute return goal, often expressed as a spread
over or multiple of the risk free rate (examples: 3x T bills LIBOR+7%) as opposed to a relative return benchmarkover or multiple of the risk-free rate (examples: 3x T-bills, LIBOR+7%), as opposed to a relative return benchmark
like the Russell 2000 or S&P 500
LiquidityLiquidity is typically monthly quarterly or annually and falls between traditional assets (immediately or daily) andLiquidity is typically monthly, quarterly or annually and falls between traditional assets (immediately or daily) and
long-term alternatives like private equity or timber (3-10 years)
FeesA hedge fund manager is generally paid two fees: a “Management Fee” based on assets in the fund and aA hedge fund manager is generally paid two fees: a Management Fee based on assets in the fund and a
“Performance Fee” based on profits made each year (you may hear “2 and 20” as a standard fee – 2%
Management Fee and 20% Performance Fee)
StrategyStrategy
Hedge fund managers give themselves extensive trading flexibility in their offering documents but typically
specialize in a given strategy or geographic area of trading. This flexibility includes the use of both long and short
positions and leveragep g
CapitalHedge fund managers may “open” and “close” their fund based on the inflow of assets and opportunities in their
strategy
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CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITEDABN 57 007 305 384 AFSL 238390
M k t D i f Ri kMarket Drivers of Risk
EQUITY MARKET NEUTRAL
EVENT DRIVEN
CONVERTIBLE ARBITRAGE
LONG/ SHORT EQUITY
DEDICATED SHORT BIAS
GLOBAL MACRO
MANAGED FUTURES
FIXED INCOME ARBITRAGE
EMERGING MARKETS
MULTI-STRATEGY NEUTRAL DRIVEN ARBITRAGE EQUITY SHORT BIAS MACRO FUTURES ARBITRAGE MARKETS STRATEGY
Equities
Credit Spreads
Liquidity
Interest Rates
Implied Volatility
Realized Volatility
Hedge fund indices can save the investor significant outlay in resources needed formanager due diligence and risk systems needed to extract alpha from the hedge fund market
Note: Strategies are based upon the Credit Suisse/Tremont Hedge Fund Index Sectors
14
Note: Strategies are based upon the Credit Suisse/Tremont Hedge Fund Index Sectors.
CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITEDABN 57 007 305 384 AFSL 238390
3. Hedge Fund Indices in a Portfolio Context
15CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITEDABN 57 007 305 384 AFSL 238390
The Addition Of Hedge Funds Can Lower Risk Whil I i R t
Adding 20% HEDG
While Increasing Returns
9.10%
9.30%
Adding 10% HEDG8 78% Annualized Return
Adding 15% HEDG8.92% Annualized Return7.72% Annualized Risk
Adding 20% HEDG9.06% Annualized Return7.55% Annualized Risk
8 0%
8.90%
Ret
urn
(%)
8.78% Annualized Return7.90% Annualized Risk
Adding 5% HEDG8.64% Annualized Return8.10% Annualized Risk Adding 0% HEDG
8.50% Annualized Return8 32% A li d Ri k
Annualized Total Returns (%)8.50%
8.70%R
■ US Stocks : S&P 500 Total Return Index■ US Bonds : Lehm an Aggregate Bond Index■ International Stocks : MSCI World Index
8.32% Annualized Risk
Annualized Total Returns (%)8.30%
7.40% 7.55% 7.70% 7.85% 8.00% 8.15% 8.30% 8.45%
Annualized Standard Deviation (%)
■ Hedge Funds: Credit Suisse/Trem ont Hedge Fund Index
Time Period: January 1994 through December 2007.Sources: Credit Suisse Tremont Index LLC, Bloomberg. The performance shown is for illustrative purposes only and does not represent performances of any Credit Suisse investment. Riskmeasured by standard deviation, a statistical measurement of dispersion around an average which depicts how widely returns varied over a certain time period. Allocation: Initial allocationcomprised of: 40% US bonds, 45% US stocks and 15% international stocks. As HEDG was added, other asset classes were reduced proportionately. HEDG is defined as the Credit Suisse/TremontHedge Fund Index, the index tracks the performance of a diversified portfolio of hedge funds. Past performance does not guarantee future results.
16
CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITEDABN 57 007 305 384 AFSL 238390
Hedge Funds in Bear MarketsResilience of Hedge Fund Indices in last equity bear market (2000-2002)
0%10%20%
-30%-20%-10%
-60%-50%-40%
9 0 0 0 0 0 0 1 1 1 1 1 1 2 2 2 2 2 2
Dec
-99
Feb-
00
Apr
-00
Jun-
00
Aug
-00
Oct
-00
Dec
-00
Feb-
01
Apr
-01
Jun-
0
Aug
-01
Oct
-01
Dec
-01
Feb-
02
Apr
-02
Jun-
02
Aug
-02
Oct
-02
Dec
-02
Credit Suisse/Tremont Hedge Fund Index MSCI World IndexCredit Suisse/Tremont Hedge Fund Index MSCI World Index
Sources: Bloomberg; Credit Suisse Index Co., Inc. All data was obtained from sources believed to be reliable. Credit Suisse Index Co., Inc. does not guarantee the accuracy of such data
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CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITEDABN 57 007 305 384 AFSL 238390
Hedge Fund Index Performance
Hedge fund performance in 20 most recent down equity months
Hedge fund performance relative to global markets
0%
2%
4%
300%
350%
400% Credit Suisse/ Tremont Hedge Fund Index
S&P 500 Index
MSCI World Index
Lehman U.S. Aggregate Bond Index
-4%
-2%
150%
200%
250%
-10%
-8%
-6%
5 5 7 7 8 8
0%
50%
100%
Mar
-04
Apr-
04Ju
l-04
Jan-
0 5M
ar-0
5Ap
r-05
Jun-
05Au
g-05
Oct
-05
Dec
-05
May
-06
Feb-
07Ju
n-07
Jul-0
7N
ov-0
7D
ec-0
7Ja
n-08
Feb-
08M
ar-0
8Ju
n-08
Credit Suisse/ Tremont Hedge Fund Index S&P 500 Index
-50%
Dec
-93
Dec
-94
Dec
-95
Dec
-96
Dec
-97
Dec
-98
Dec
-99
Dec
-00
Dec
-01
Dec
-02
Dec
-03
Dec
-04
Dec
-05
Dec
-06
Dec
-07
* Please refer to the End Notes for important disclosures regarding the various Credit Suisse/Tremont Indices described herein. Source: Credit Suisse Tremont Index LLC, Bloomberg. All data was obtained from publicly available information, internally developed data and other third party sources believed to be reliable. Credit Suisse has not sought to independently verify information obtained from public and third party sources and makes no representations or warranties as to accuracy, completeness or reliability of such information. Past performance is not indicative of future performance.
Credit Suisse/Tremont Hedge Fund Index* had positive returns in 8 of the 20 most recent down equity months and outperformed equities in 19 out of the 20 observations
18
not indicative of future performance.
CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITEDABN 57 007 305 384 AFSL 238390
4. Performance and Outlook
19CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITEDABN 57 007 305 384 AFSL 238390
Index Asset FlowsIndex investing follows dynamically the asset flows of the industry “market consensus”
100%
70%
80%
90% ConvertibleArbitrage
Dedicated Short Bias
Emerging Markets
50%
60%
70%
Equity MarketNeutral
Event Driven
20%
30%
40%Fixed IncomeArbitrage
Global Macro
Long/Short Equity
0%
10%
20%
93 94 94 95 95 96 96 97 97 98 98 99 99 00 00 01 01 02 02 03 03 04 04 05 05 06 06 07 07 08
Managed Futures
Multi-Strategy
The asset allocation of the most recent month is based on estimated assets.
Source: Credit Suisse Tremont Index LLC as of 6/30/2008
Dec
-
Jun-
Dec
-
Jun-
Dec
-
Jun-
Dec
-
Jun-
Dec
-
Jun-
Dec
-
Jun-
Dec
-
Jun-
Dec
-
Jun-
Dec
-
Jun-
Dec
-
Jun-
Dec
-
Jun-
Dec
-
Jun-
Dec
-
Jun-
Dec
-
Jun-
Dec
-
Jun-
20
e asset a ocat o o t e ost ece t o t s based o est ated assets
CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITEDABN 57 007 305 384 AFSL 238390
Sector Performances are Highly Variable Ranking 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
1Dedicated
Short15%
Global M acro31%
Emerging M arkets
34%
Global M acro37%
M anaged Futures
21%
Long/Short Equity
47%
Convert ible Arbit rage
26%
Global M acro18%
M anaged Futures
18%
Emerging M arkets
29%
Event Driven14%
Emerging M arkets
17%
Emerging M arkets
20%
Emerging M arkets
20%
2Emerging M k t
Long/Short E it Global M acro
Emerging M k t
Long/Short E it
Emerging M k t
Dedicated Sh t
Convert ible A bit
Dedicated Sh t Event Driven
Emerging M k t
Dedicated Sh t Event Driven Global M acro2 M arkets
13%Equity23% 26%
M arkets27%
Equity17%
M arkets45%
Short16%
Arbit rage15%
Short18% 20%
M arkets12%
Short17% 16% 17%
3M anaged Futures
13%
Event Driven18%
Event Driven23%
Long/Short Equity
21%
Equity M arket Neutral
13%
Event Driven22%
Equity M arket Neutral
15%
Event Driven11%
Global M acro15%
Global M acro18%
Long/Short Equity
12%
Long/Short Equity
10%
M ult i-Strategy15%
Long/Short Equity
14%
4 Event Driven1%
Convert ible Arbit rage
17%
Convert ible Arbitrage
18%
Event Driven20%
M ult i-Strategy8%
Convert ible Arbitrage
16%
Global M acro12%
Equity M arket Neutral
9%
Equity M arket Neutral
7%
Long/Short Equity
17%
Global M acro8%
Global M acro9%
Long/Short Equity
14%
Event Driven13%1% 17% 18% 20% 8% 16% 12% 9% 7% 17% 8% 9% 14% 13%
5Fixed Income
Arbitrage0%
Fixed Income Arbitrage
12%
Long/Short Equity
17%
M ult i-Strategy18%
Global M acro-4%
Equity M arket Neutral
15%
M ult i-Strategy11%
Fixed Income Arbitrage
8%
Emerging M arkets
7%
M ult i-Strategy15%
M ult i-Strategy8%
Event Driven9%
Convert ible Arbitrage
14%
M ult i-Strategy10%
6Equity M arket
Neutral-2%
M ult i-Strategy12%
Equity M arket Neutral
17%
Equity M arket Neutral
15%
Convert ible Arbit rage
-4%
Fixed Income Arbit rage
12%
Event Driven7%
Emerging M arkets
6%
M ult i-Strategy6%
M anaged Futures
14%
Fixed Income Arbitrage
7%
M ult i-Strategy8%
Global M acro14%
Equity M arket Neutral
9%
7 M ult i-Strategy-3%
Equity M arket Neutral
11%
Fixed Income Arbit rage
16%
Convert ible Arbit rage
14%
Event Driven-5%
M ult i-Strategy9%
Fixed Income Arbit rage
6%
M ult i-Strategy6%
Fixed Income Arbit rage
6%
Convert ible Arbitrage
13%
Equity M arket Neutral
7%
Equity M arket Neutral
6%
Equity M arket Neutral
11%
Dedicated Short
6%
8 Global M acro-6%
M anaged Futures
-7%
M ult i-Strategy14%
Fixed Income Arbit rage
9%
Dedicated Short-6%
Global M acro6%
M anaged Futures
4%
M anaged Futures
2%
Convert ible Arbitrage
4%
Fixed Income Arbit rage
8%
M anaged Futures
6%
Fixed Income Arbit rage
1%
Fixed Income Arbit rage
9%
M anaged Futures
6%
Convert ible Dedicated M anaged M anaged Fixed Income M anaged Long/Short Dedicated Equity M arket Convert ible M anaged M anaged Convert ible9
Convert ible Arbit rage
-8%
Dedicated Short-7%
M anaged Futures
12%
M anaged Futures
3%
Fixed Income Arbitrage
-8%
M anaged Futures
-5%
Long/Short Equity
2%
Dedicated Short-4%
Event Driven0%
Equity M arket Neutral
7%
Convert ible Arbit rage
2%
M anaged Futures
0%
M anaged Futures
8%
Convert ible Arbit rage
5%
10Long/Short
Equity-8%
Emerging M arkets
-17%
Dedicated Short-5%
Dedicated Short
0%
Emerging M arkets
-38%
Dedicated Short-14%
Emerging M arkets
-6%
Long/Short Equity
-4%
Long/Short Equity
-2%
Dedicated Short-33%
Dedicated Short-8%
Convert ible Arbitrage
-3%
Dedicated Short-7%
Fixed Income Arbitrage
4%
Source: Credit Suisse Tremont Index LLC
21
CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITEDABN 57 007 305 384 AFSL 238390
Fund Performance in 2007 was Highly VariableDispersion Between Funds is High Top Quartile Funds are Rare
22%(11%)ConvertibleArbitrage
100%
49%
40%
24%
(13%)
(9%)
(6%)
Equity Market
EmergingMarkets
Dedicated Short
60%
70%
80%
90%
Qua
rtile
52%
26%
49%(9%)
(8%)
(29%)Fixed Income
Arbitrage
Event Driven
Neutral
30%
40%
50%
% o
f Fun
ds in
Eac
h
60%
30%(17%)
(28%)Long/Short
Equity
Global Macro
Arbitrage
0%
10%
20%
CVARB94 Funds
DEDSH35 Funds
EMMKT154 Funds
EQNTR94 Funds
EVDRV260 Funds
FIARB124 Funds
GLMAC87 Funds
LOSHO669 Funds
MGFUT130 Funds
MULTI112 Funds
44%
36%
(18%)
(15%)
Multi Strategy
Managed Futures
94 Funds 35 Funds 154 Funds 94 Funds 260 Funds 124 Funds 87 Funds 669 Funds 130 Funds 112 Funds
% of Funds in the 4th Quarter % of Funds in the 3rd Quarter% of Funds in the 2nd Quarter % of Funds in the 1st QuarterCredit Suisse/ Tremont Hedge Fund Index, (Gross)
Analysis performed on the Credit Suisse/Tremont database for funds which had a full year of returns in 2007. Data Windsorized to remove outliers at a 2 standard deviation level.Source: Credit Suisse Tremont Index LLC.
22
CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITEDABN 57 007 305 384 AFSL 238390
Hedge Funds: Positioning & Outlook
PositioningBroad hedge fund indices performed well in bear markets
Highly diversified
Attractive fee structureAttractive fee structure
OutlookHedge funds maintained an attractive risk-return profile as compared to equity indices
Hedge funds are quickly adjusting to changing market conditions
Long term conditions have improved for a number of hedge fund strategiesLong-term conditions have improved for a number of hedge fund strategies
Hedge funds continue to provide attractive risk-adjusted returns
23
CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITEDABN 57 007 305 384 AFSL 238390
4. Q&A
24CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITEDABN 57 007 305 384 AFSL 238390
Credit Suisse Alternative Investments –An established market leading provider of Alternative Investments with over USD146 B in AuM globallyAn established market leading provider of Alternative Investments with over USD146 B in AuM globallyAustralia – 5th Largest Alternative Market by Size
($ in billions) Australia – AI AuM CS AI Businesses
DirectHF $7.0
PE FoF$10.0
Unlisted Infra-
Listed Infrastructure $16.0Real Estate
Core$25
HY21.4
Volatility Management
$4.3
(US$ in billions)(US$ in billions)Direct
PE $10.0
Hedge FoF$5.0
HF $7.0 Infrastructure
$25.0Real EstateOpportunity
Quantitative Resources
$42.2
$25Hedge FoF
$5.0
Unlisted Real EstateFunds $25.0
PE FoF
LBO
Listed Property Trusts $67.0
LBO
Hedge FoF$26 4
OtherMezzanine
Secondaries
$26.4
AuM: US$146 billionS CS A l i
AuM: US$165 billion
25
Source: CS Analysis.
CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITEDABN 57 007 305 384 AFSL 238390
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Benefits of Investing in Hedge Funds with Credit Suisse
Credit Suisse – A proven leader in hedge fund investingInvesting in Hedge Funds since 1994Investing in Hedge Funds since 1994One of the largest Hedge Fund Allocators Launched leading benchmark CS/Tremont in 1999
Offering Australian investors CS/Tremont Index Strategies FundEfficient access to Hedge Funds through index strategyEfficient access to Hedge Funds through index strategyBroadly diversified exposure including access to closed fundsDaily liquidityNo performance fee
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CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITEDABN 57 007 305 384 AFSL 238390
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