Liontamer

FALLEN ANGELS Series 2 (Trust 31) – Now Open

Fortune favours the brave…and those who protect their capital

The Latin phrase ‘fortes fortuna adiuvat' (fortune favours the brave) aptly describes how many investors might feel in the current volatile market conditions. Watching the daily movements of sharemarkets, it certainly feels like you need to be brave to invest in this environment. But some of the world’s most well regarded investors are doing just that. One such investor is Warren Buffett, who claimed in a recent New York Times article that you should “be fearful when others are greedy, and be greedy when others are fearful”¹.

That sets the tone for our latest fund launch – FALLEN ANGELS Series 2. Right now there is a lot of controversy surrounding the banking sector and this gives an opportunity to invest at very distressed prices. At Liontamer, we believe there is the potential for excellent gains in banking shares over the next five to six years, but full capital protection is essential^#.

Click on the icons to the right to get to a copy of our fund brochure and Investment Statement with application form.

Key Features

Status

Australian unit trust (only open to New Zealand residents and investors in countries outside of Australia to whom it is lawful to make an offer).

Liontamer Fallen Angels Index†

The Fallen Angels Index provides an equally weighted exposure to 12 large financial services companies, whose share prices are currently at historically discounted levels. We selected financial services companies because this sector has been the worst hit by the credit crisis and we believe it provides the greatest opportunity for recovery and future growth.

Bank
Allianz SE	Intesa SanPaolo SA
Banco Santander SA	JPMorgan & Co
Bank of America Corp	Munich Re
BNP Paribas SA	Societe Generale
Citigroup Inc	UBS AG
ING Groep NV	Zurich Financial Services AG

The companies in the Index have been carefully selected by Liontamer in conjunction with professional equity analysts from KBC Asset Management NV (our parent company). The Liontamer Fallen Angels Index will contain a maximum of 12, and a minimum of 8, companies. Each company had to meet some set criteria:

It must be a financial services company
It must have a current ‘buy’ rating from KBC Asset Management NV
It must have a current credit rating of AA- or higher from Standard and Poor’s
It must be listed on either the S&P 500 Index or the DJ EuroStoxx 50 Index
The company must have a global reach beyond its resident country.

Growth

At least 90% of the rise in the Liontamer Fallen Angels Index (i.e. minimum of 0.9 times the rise).

Capital protection at maturity^#

Full capital protection at maturity.

This means that 100% of your capital will be repaid at maturity (after any entry fee paid), even if the Liontamer Fallen Angels Index falls in value. To ensure this is possible, the fund buys a financial instrument (Asset of the Fund) sold by the Fund Asset Provider designed to return the full original capital amount at maturity. The Fund Asset Provider is KBC Bank.

Term^

Five and a half year term

Minimum investment

$5,000

Management fees

No annual fee charged by Liontamer.

Brokerage

2% will be paid by Liontamer (this is not a cost to the investor)

Entry fee

3%, unless rebated by your financial adviser. This is a charge paid by you.

Early bird interest

During the offer period, your investment will be kept on deposit and earn a competitive market rate of interest which is used to purchase additional units for you.

Early maturity feature

If the financial instruments underlying the fund reach a value of $1.60 per unit within the first three years, Liontamer will seek to arrange termination of the financial instruments and the fund will mature early. This provides a way for investors to exit if there is exceptional performance.

Early exit

This is a hold-to-maturity investment and capital protection only applies at the end of the term. Early exits are possible on a quarterly basis at the discretion of Liontamer. Unless there are exceptional circumstances behind the reason for your withdrawal (or the early maturity feature is triggered) the maximum value of your units prior to maturity is $1 (less any break costs of the underlying investments held by the fund and a 2% early exit fee). By withdrawing early in these circumstances, you will get back less than you invested.

Key Dates

Opening date

4 November 2008

Closing date

19 December 2008 (unless extended)

#Capital protection at maturity: means you will receive back 100% of the combined amount invested and early bird interest (earned during the offer period) less any entry fee charged (3%) and any exit fee. Capital protection only applies at maturity. Early withdrawals may result in investors receiving back significantly less than they put in, due to market movements, the exit fee and the fund’s establishment costs. There is a more detailed description of the capital protection in the Investment Statement and the limited circumstances when capital protection may not be available.

†Fallen Angels Index: Initial Index levels are averaged monthly over the first six months and final Index levels are averaged monthly in the last year, which will protect you from any sharp falls in the index. In a rising market averaging lessens returns.

^Term: Liontamer has the discretion to reduce or increase the maturity date by six months, depending on market movements during the offer period. The term will be set on or before the strike date. Investors will be advised of the term on their investment certificate.

Full details are contained in the Investment Statement and registered Prospectus, provided by Liontamer Investment Management Pty Ltd (ABN 23 104 174 325). Copies are available upon request from Liontamer Investor Relations on 0800 210 451. Capital protection only applies at maturity. Early withdrawals may result in investors receiving back significantly less than they put in, due to market movements and the fund’s establishment costs. There is a more detailed description of capital protection in the Investment Statement and the limited circumstances when capital protection may not be available. This is a medium-term investment intended to be held for the full term.

Important
None of KBC Bank NV, KBC Group NV nor KBC Asset Management NV guarantees repayment of the investment amount or any returns on the investment nor do either of them accept any liability to investors. However, as the Fund Asset Provider, KBC Bank NV is legally liable to pay to Liontamer as trustee of the fund certain amounts. Neither KBC Group NV nor any other member of the KBC Group guarantees the obligations of KBC Bank NV.