CONFIDENTIAL

Asset Management (Size 9 pt, Bold); use all CAPS if legal entity

Produced by: Name Surname Date: 03.11.2005 Slide 1

CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITEDABN 57 007 305 384 AFSL 238390

Morningstar

June 2008

Richard Quin - Director, Credit SuissePortfolio Manager APAC, Leveraged

Investments Group

Alternative Investments

2CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITEDABN 57 007 305 384 AFSL 238390

DisclaimerIssued by Credit Suisse Asset Management (Australia) Limited (CSAMA) ABN 57 007 305 384 AFSL 238390. CSAMA has used its best endeavours to ensure the accuracy, reliability and completeness of the information contained in this presentation. Subject to law, CSAMA, its directors, employees, affiliates and consultants do not provide any warranty or accept any liability for errors or omissions or any losses or damages suffered by the recipient of this presentation or any other person.

This 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 Private Investment Funds, Select Investment Funds and Wholesale Funds are made in, or accompanied by a copy of the relevant current 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 are volatile and may vary from year to year.

3CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITEDABN 57 007 305 384 AFSL 238390

Investment grade spreads at recessionary levels

Source: Lehman Spreads to 6th June 2008

US Investment Grade Option Adjusted Spreads (to treasuries)

N U G G E T T A G : u s e r N a m e =n u ll& p lo t N a m e =n u ll

50

100

150

200

250

300

350

bps

1992 1994 1996 1998 2000 2002 2004 2006 2008

Source: Lehmanlive

Source: LehmanLive.com

Key Axis Name Last Minimum Maximum Mean SD SD Change

Right Aaa Credit - OAS 94.924 25.880 28-Feb-2005 111.831 10-Mar-2008 49.514 18.735 2.232

Right Aa Credit - OAS 186.194 31.711 31-J ul-1997 224.470 18-Mar-2008 78.024 37.052 2.139

Right A Credit - OAS 231.799 48.394 28-Feb-1997 281.142 14-Mar-2008 116.344 50.177 2.717

Right Baa Credit - OAS 260.427 72.436 31-J ul-1997 374.397 10-Oct-2002 178.312 67.464 4.131

4CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITEDABN 57 007 305 384 AFSL 238390

Commercial Mortgage Backed Securities - CMBS

Source: Lehman Spreads to June 6th 2008

Commercial Mortgage Backed Securities

N U G G E T T A G : u s e r N a m e =n u ll& p lo t N a m e =n u ll

100

200

300

400

500

600

700

800

900

OAS

2002 2003 2004 2005 2006 2007 2008

Source: LehmanLive.com

Key Axis Name Last Minimum Maximum Mean SD SD Change

Right CMBS ERISA Eligible:AAA - OAS 240.914 51.195 08-Dec-2004 475.668 11-Mar-2008 96.874 61.806 4.103

Right CMBS ERISA Eligible:A - OAS 458.530 59.628 08-Dec-2004 904.621 14-Mar-2008 128.210126.524 7.101

5CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITEDABN 57 007 305 384 AFSL 238390

Bank regulatory capital credit spreads from AA rated banks

Source: Lehman Spreads to June 6th 2008

Bank Capital Securities

N U G G E T T A G : u s e r N a m e =n u ll& p lo t N a m e =n u ll

100

200

300

400

500

600

bps

2002 2003 2004 2005 2006 2007 2008

Source: LehmanLive.com

Key Axis Name Last Minimum Maximum Mean SD SD Change

Left Capital Securities - USD Banking T1 A or Better - OAS469.191 72.541 31-J an-2005 592.186 18-Mar-2008 182.479134.383 5.563

Left Capital Securities - USD Banking UT2 A or Better - OAS311.355 62.630 30-Nov-2001 440.694 27-Mar-2008 142.169 94.107 6.969

6CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITEDABN 57 007 305 384 AFSL 238390

High yield bonds spreads not near recessionary levels

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

11%

12%

13%

14%F

-89

F-9

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F-9

3

F-9

5

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7

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9

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1

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7

Sp

ec

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tiv

e D

efa

ult

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te (

%)

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

11%

12%

13%

14%

CS HY Index Spreads (RHS)

Moody's Global HY Default Rate

Source: CS & Moody's Investor Service, January 1989 to May 2008

7CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITEDABN 57 007 305 384 AFSL 238390

Loans look cheaper than High Yield Bonds

0%

1%

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11%

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D-0

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5

D-0

6

D-0

7

High Yield Peak Leveraged Loans Peak

CS HY Index Spread Swapped to Libor CS LL Index Discount Spread (3Y) (Currently 6.26%)

Source: Moodys

31-Jan-91 to 30-April-08 Source: CS, Bloomberg

8CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITEDABN 57 007 305 384 AFSL 238390

Peak in excess returns follows peak in spreads – Investment Grade

Baa Credit - Option Adjusted Spread (LA), 31/01/1991, 270 bp

Baa Credit - Option Adjusted Spread (LA), 22/10/2002, 348 bp

U.S. Credit Baa - Excess Return 12 Month (RA), 31/01/1992, 5%

U.S. Credit Baa - Excess Return 12 Month (RA), 23/10/2003, 13%

0 bp

50 bp

100 bp

150 bp

200 bp

250 bp

300 bp

350 bp

400 bpM

ay-9

0

Nov

-90

May

-91

Nov

-91

May

-92

Nov

-92

May

-93

Nov

-93

May

-94

Nov

-94

May

-95

Nov

-95

May

-96

Nov

-96

May

-97

Nov

-97

May

-98

Nov

-98

May

-99

Nov

-99

May

-00

Nov

-00

May

-01

Nov

-01

May

-02

Nov

-02

May

-03

Nov

-03

May

-04

Nov

-04

May

-05

Nov

-05

May

-06

Nov

-06

May

-07

Nov

-07

May

-08

-14%

-12%

-10%

-8%

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

Baa Credit - Option Adjusted Spread (LA) U.S. Credit Baa - Excess Return 12 Month (RA)

Source: Lehman Brothers and CS Data range : May 1990 to May 2008

9CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITEDABN 57 007 305 384 AFSL 238390

Peak in excess returns follows peak in spreads – Leveraged Loans

Discount Spread (3Y) (LHS), 31-Oct-02, 6.32%

12M AUD Excess Return (RHS), 31-Oct-03, 12.1%

-0.50%

0.50%

1.50%

2.50%

3.50%

4.50%

5.50%

6.50%

7.50%D

ec-9

2

Jun-

93

Dec

-93

Jun-

94

Dec

-94

Jun-

95

Dec

-95

Jun-

96

Dec

-96

Jun-

97

Dec

-97

Jun-

98

Dec

-98

Jun-

99

Dec

-99

Jun-

00

Dec

-00

Jun-

01

Dec

-01

Jun-

02

Dec

-02

Jun-

03

Dec

-03

Jun-

04

Dec

-04

Jun-

05

Dec

-05

Jun-

06

Dec

-06

Jun-

07

Dec

-07

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

Discount Spread (3Y) (LHS)

12M AUD Excess Return (RHS)

Source: Lehman Brothers and CS Data range : Dec 1992 to May 2008

10CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITEDABN 57 007 305 384 AFSL 238390

Peak excess returns follows peak in spreads – High Yield BondsCS HY Index Spread bps (LHS),

31-Oct-02, 1,080 bp

CS HY Index Spread bps (LHS), 31-Dec-90, 1,096 bp

Lehman's US HY rolling 12M Excess Return (RHS), 31-Oct-03, 31%

Lehman's US HY rolling 12M Excess Return (RHS), 31-Jan-92,

26%

0 bp

100 bp

200 bp

300 bp

400 bp

500 bp

600 bp

700 bp

800 bp

900 bp

1,000 bp

1,100 bp

Aug

-89

Feb

-90

Aug

-90

Feb

-91

Aug

-91

Feb

-92

Aug

-92

Feb

-93

Aug

-93

Feb

-94

Aug

-94

Feb

-95

Aug

-95

Feb

-96

Aug

-96

Feb

-97

Aug

-97

Feb

-98

Aug

-98

Feb

-99

Aug

-99

Feb

-00

Aug

-00

Feb

-01

Aug

-01

Feb

-02

Aug

-02

Feb

-03

Aug

-03

Feb

-04

Aug

-04

Feb

-05

Aug

-05

Feb

-06

Aug

-06

Feb

-07

Aug

-07

Feb

-08

-35%

-25%

-15%

-5%

5%

15%

25%

35%

CS HY Index Spread bps (LHS)

Lehman's US HY rolling 12M Excess Return(RHS)

Source: Lehman Brothers and CS Data range : August 1989 to May 2008

11CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITEDABN 57 007 305 384 AFSL 238390

Forced deleveraging repriced asset classes early in the cycle

Technical dislocation (liquidity crunch) or credit crunch – weeding

Risk still remains general or systemic and is not yet company specific

Better lending term good for banks and credit investors

– Higher spreads, Fees, Covenants and Discounts

Poorer fundamentals

Priced for disaster not perfection.

Summary

12CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITEDABN 57 007 305 384 AFSL 238390

Current market opportunities

Risk Management

- Less cash, Secured but look for opportunities down the capital structure

2008 picking through the wreckage

- Assets sold by geared investors: loans, CLOs and bank capital securities

Hedging company specific risk or idiosyncratic risk

- Basis trades, Equity delta, a few short trades

Tactical trading

- Not a deer in the headlights.