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CONFIDENTIAL
CREDIT SUISSE ASSET MANEGEMENT (AUSTRALIA) LIMITEDABN 57 007 305 384 AFSL 238390
Produced by: Name SurnameDate: 03.11.2005 Slide 1
Credit Suisse Equity Fund (Lux) Asian Property FundFebruary 2006Rob Sullivan
CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITEDABN 57 007 305 384 AFSL 238390
CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITEDABN 57 007 305 384 AFSL 238390
European RoadshowFebruary 2006 Slide 2
Investment Case / Market Update – Asian Property marketsInvestment Process SummaryAppendix
Contents
CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITEDABN 57 007 305 384 AFSL 238390
European RoadshowFebruary 2006 Slide 3
Shanghai
Source: Credit Suisse and Emporis
Singapore
Property Boom in the Asian region
1990 2006 1990 2006
CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITEDABN 57 007 305 384 AFSL 238390
European RoadshowFebruary 2006 Slide 4
Source: CSAM.*Based on GPR General Asia Index composition
Combination of both mature and fast developing marketsInvestable universe includes both Property Developers & REITsREIT regulation within Asia is relatively newOffers investors with growth potential and yield
Asian Listed Property Market Characteristics
CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITEDABN 57 007 305 384 AFSL 238390
European RoadshowFebruary 2006 Slide 5
Asian Listed MarketsInvestment case and market overview
CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITEDABN 57 007 305 384 AFSL 238390
European RoadshowFebruary 2006 Slide 6
Strong economic growth is supportive for propertySurging urban population fuels property demandEmerging middle class REIT (Real Estate Investment Trust) market growthInvestor demand – Asian Listed Property is an under-invested asset class globallyValuations remain attractive
Key Drivers of Asian Listed Property Markets
CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITEDABN 57 007 305 384 AFSL 238390
European RoadshowFebruary 2006 Slide 7
$95
$161
$114
$24$2 $8 $7 $9 $12 $3 $4
$335
Australia Japan HongKong
Singapore NZ Korea Taiwan Malaysia China Thailand Phillipines UnitedStates
$USD
Billions
Developing property markets with strong upside potential
Vast market growth potential exists across other developing Asian Property markets
Source: Credit Suisse, EPRA and JP Morgan.Data as at January 2006 Market capitalisation figures include both Property and REITS.
Market Capitalisation of Asian Listed Property versus the United States
CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITEDABN 57 007 305 384 AFSL 238390
European RoadshowFebruary 2006 Slide 8
Conservatism since the
Asian crisis of 96/97
Result of 15 years of
deflation in Japan
Potential to switch into
high yielding real estate
11.7
13.1
24.5
25.5
37.8
41.2
70.3
72.2
74.9
0 20 40 60 80
US
Thailand
Singapore
Malaysia
Hong Kong
Korea
China
Taiwan
Japan
%
Source: CLSA
Liquidity, Asia is awash with cashM1 to GDP ratio
CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITEDABN 57 007 305 384 AFSL 238390
European RoadshowFebruary 2006 Slide 9
Regional property performance comparison
Source: GPR, performance returns are in local currency, annualised as at 31 December 2005
Asian Property Performance has lagged both the US and Europe over 5 years
13%
26%
19%
24%
30%
18%
13%
5.0%
20.0%
35.0%
1Y 3Y 5Y
Asia US Europe On a relative basis:
Asia has a stronger growth outlook
The Asian REIT market is in its infancy
Asia’s huge middle class is driving asset
prices
Asian demographics are supportive for
property
An exposure to Asia has diversification
benefits
CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITEDABN 57 007 305 384 AFSL 238390
European RoadshowFebruary 2006 Slide 10
Reit market capitalisation as a percentage of total country share-market
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
US Australia Singapore Japan Malaysia Thailand Hong Kong
Source: Credit Suisse
Start of Reit Cycle
CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITEDABN 57 007 305 384 AFSL 238390
European RoadshowFebruary 2006 Slide 11
An Evolution of listed propertyAsia still early in the cycleAn evolution of listed property
MalaysiaThailand
Korea Taiwan
Singapore
Japan
Lowly geared, illiquid property funds; single asset; retail owned; emerging economies / immature markets
Legislative change drives sector growth. Gearing limitations lifted, tax breaks in place, foreign ownership restrictions relaxed
Extended period of acquisition driven growth. Market prices vehicle for growth giving it the cost of capital to acquire accretively. Asset universe broad
Direct cap rates firm and acquisitions become more difficult. Management's focus turns to operational improvements. Trusts start to look off shore
Scarcity of accretive acquisitions drives M&A activity. Strong managers bid for weaker managers with good assets
A strong sector means IPOs make a return, increasing calls on equity placing a drag on funds flow into index, more overseas acquisitions are made, an increase in financial engineering
Introduction of operational earnings into the sector drives higher growth from higher risk oriented earnings steams - development, funds management, construction etc
Strong steady growth
Growth plateaus
Growth steps up
Sector consolidation drives prices Growth
plateaus
Where to from here?
Stage 5Stage 4Stage 3
Australia
NZ
Stage 8 Stage 7 Stage 6Stage 2Stage 1Interest rate impact*
Hong Kong
Source: Credit Suisse
CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITEDABN 57 007 305 384 AFSL 238390
European RoadshowFebruary 2006 Slide 12
Superior growth and offshore confidence in the regionAsia has been very successful at attracting investment
Source: BNP Paribas Research and CLSA. *CLSA FDI forecasts
9.9
8.17.2
5.3
8.1
5.14.3
3.7
5.4
4.0
1.3
3.7
0.0
2.5
5.0
7.5
10.0
12.5
ChinaSingaporeHong KongMalaysiaIndiaPhilippinesThailandTaiwanIndonesiaKorea
EU US
Real GDP Growth, 2005 Asian Foreign Direct Investment
0
75
150
225
300
1999 2000 2001 2002 2003 2004 2005 2006
Accumulated
$USD332
Billion
Strong economic growth is supporting the wealth
prosperity of its consumers
Asia’s GDP has been approximately 1.5 times that
of world GDP for the past 5 years
China’s FDI represents a large majority of the
accumulated Asian investment from offshore
CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITEDABN 57 007 305 384 AFSL 238390
European RoadshowFebruary 2006 Slide 13
Investment UniverseAsia Pacific
China
Australia
India
Japan
New Zealand
Taiwan
Malaysia
Indonesia
Thailand
Singapore
South Korea
Philippines
Source: CLSA
CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITEDABN 57 007 305 384 AFSL 238390
European RoadshowFebruary 2006 Slide 14
Japan rebound
Source: Credit Suisse and JP Morgan.
75
100
125
150
175
200
225
250
275
300
Mar
-89
Mar
-90
Mar
-91
Mar
-92
Mar
-93
Mar
-94
Mar
-95
Mar
-96
Mar
-97
Mar
-98
Mar
-99
Mar
-00
Mar
-01
Mar
-02
Mar
-03
Mar
-04
Mar
-05
Tokyo res. Land
Condo prices
Land prices at 70% discount
to their historic peaks
Catalysts for growth:Less then 5% of total property is listed in REIT’s
End of deflation after 20 years
Positive economic and reform outlook
Aging demographics demand for high yielding assets
CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITEDABN 57 007 305 384 AFSL 238390
European RoadshowFebruary 2006 Slide 15
Source: Credit Suisse and JP Morgan.
30
40
50
60
70
80
90
100
110
Jan
-94
Jul-
94
Jan
-95
Jul-
95
Jan
-96
Jul-
96
Jan
-97
Jul-
97
Jan
-98
Jul-
98
Jan
-99
Jul-
99
Jan
-00
Jul-
00
Jan
-01
Jul-
01
Jan
-02
Jul-
02
Jan
-03
Jul-
03
Jan
-04
Jul-
04
Jan
-05
Jul-
05
Jan
-06
46%below the '97 peak
26%below the '94
peak
Centa-city Leading Index
Catalysts for growth:Beginning of REIT development
Hong Kong is the gateway to China
CEPA, Closer Economic Partnership Agreement with China
Residential prices are 46% below the peak of 1997
Hong Kong – Thriving property market
CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITEDABN 57 007 305 384 AFSL 238390
European RoadshowFebruary 2006 Slide 16
China – Surging property market
Source: Credit Suisse
Market Characteristics
Emerging REIT market
Catalysts for growth:
Initiating REIT development
Significant growth potential
Emerging middle class driving asset prices
Strong economic growth
Evolving legal, regulatory and planning will
remove barriers for future growth
CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITEDABN 57 007 305 384 AFSL 238390
European RoadshowFebruary 2006 Slide 17
Singapore – Evolving listed real estate market
Source: CS, JP Morgan amd National Archive of Singapore.
Market Characteristics
First REIT Established 2002
Catalysts for growth:
Only 5% of total property is listed in REIT’s
Future potential growth from India
(CECA, recent trade agreement)
Most REIT friendly regulation in the region
CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITEDABN 57 007 305 384 AFSL 238390
European RoadshowFebruary 2006 Slide 18
Emergence of Indian Real Estate
Source: Colliers International and CS
CECA (Comprehensive Economic Co-operation Agreement with Singapore)
Opening of Foreign Direct Investment in Indian Real Estate
Real Estate Investment Trust Regulation on track for 2006
Demographics are supportive for future growth – Median age is 24, lowest in the world
High growth potential
Removal of hurdle’s sets the base for future growth
CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITEDABN 57 007 305 384 AFSL 238390
European RoadshowFebruary 2006 Slide 19
Asia Property vs both European and US Property
Asian Property has
a low correlation to
European and US
property
Source: GPR.
CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITEDABN 57 007 305 384 AFSL 238390
European RoadshowFebruary 2006 Slide 20
Asian property diversification benefits
Low correlation to other asset classes
Global Equities
Global Bonds
Source: GPR. Data from 30/6/1997 to 31/1/06, MSCI World, GPR General Asia Index & JP Morgan Global Govt Bonds
-0.30
-0.10
0.10
0.30
0.50
0.70
0.90
Jun 97 Jun 98 Jun 99 Jun 00 Jun 01 Jun 02 Jun 03 Jun 04 Jun 05
CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITEDABN 57 007 305 384 AFSL 238390
European RoadshowFebruary 2006 Slide 21
Portfolio ConstructionBuy/Sell Discipline and Portfolio Controls
Aggregate Ranking ScoreYield / Growth / Management
Structured investment decision making process and implementation
Macro Monitor and Top Down Risk Control
Quality of ManagementQuality of Market Quality of Assets
Property Market Assessment
Investment Process
CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITEDABN 57 007 305 384 AFSL 238390
European RoadshowFebruary 2006 Slide 22
CS EF Asian Property Fund
Source: CS. Data as 31 January 2006
Hong Kong31.5%
Other4.0%
Japan34.5%
Thailand1.9%
Australia17.7%
China3.7%
Singapore6.6%
Hong Kong29.8%
Singapore6.5%
Japan35.1%
Philippines1.3%
Malaysia0.5%
Australia25.8%
New Zealand0.9%
GPR General Asia Index
Country exposure CS EF (Lux) Asian Property
CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITEDABN 57 007 305 384 AFSL 238390
European RoadshowFebruary 2006 Slide 23
CS EF (Lux) Asian Property country and sector view
Underweight
Underweight
Overweight
Overweight
Overweight
CountryFund Position
--+Australia
+++Japan
+++Singapore
+++China
n-+Hong Kong
ResidentialOfficeRetailCountry
Major listed real estate markets
+ Positive - Negative n Neutral
CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITEDABN 57 007 305 384 AFSL 238390
European RoadshowFebruary 2006 Slide 24
CS EF (Lux) Asian Property Fund Performance
CS EF (Lux) Asian Property
Benchmark
6.3
18.3
28.8
6.0
19.1
26.9
1 Mth 3 Mth Since Incep
%
Source: Bloomberg/Credit SuisseNote: inception date of July 2005. Figures stated are annualised
As at 31 January 2006 (Net of Fees), Performance Returns Detailed in USD
CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITEDABN 57 007 305 384 AFSL 238390
European RoadshowFebruary 2006 Slide 25
Source: CS and Emporis
The long-term pillars are set in place for continued growthStart of a multi-year cycleDiversificationThe Credit Suisse EF (Lux) Asian Property Team are specialists in this asset class
Summary
CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITEDABN 57 007 305 384 AFSL 238390
European RoadshowFebruary 2006 Slide 26
Appendix
CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITEDABN 57 007 305 384 AFSL 238390
European RoadshowFebruary 2006 Slide 27
Boon-Hong Yeo
Head of Asia Ex Japan Equities19 years Asia equity experienceExtensive management and research experience
Extensive track recordHead of Investments– CMG First State– Nicholas Appelgate (takeover)– Credit Lyonnais– Indosuez Asset ManagementDirector of Investments– AIB Govett
CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITEDABN 57 007 305 384 AFSL 238390
European RoadshowFebruary 2006 Slide 28
David Scott
Head of Property (Australia)21 years property experienceIncludes property mgmt, leasing, development, acquisitions, divestments10 years managing LPTs in AustraliaConsistent long-term top quartile performanceMulti award winning fund manager
CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITEDABN 57 007 305 384 AFSL 238390
European RoadshowFebruary 2006 Slide 29
AwardsCredit Suisse Australian Listed Property Fund
Australian Fund Manager Awards 2004 - Winner
S&P Awards 2005 - 2nd
InvestorWeb Research Six Star Award 2004 –
Finalist
Money Magazine Best of the Best Awards 2004 - 2nd
InvestorInfo Golden Bull 2003 - Finalist
InvestorWeb Research Six Star Award 2002 –
Finalist
InvestorInfo Golden Bull 2002 - Finalist
Money Magazine Best of the Best Awards 2002 -
Finalist
Property Investment Research Award 2004 -
Winner
S&P Awards 2004 - Winner
Money, Best Rated Australian Property Securities Fund 2005 - Winner
CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITEDABN 57 007 305 384 AFSL 238390
European RoadshowFebruary 2006 Slide 30
Boon-Hong Yeo
David Scott
Jonathon Ong
Eng-Teck Tan
Poh Hong Tan
Ser Mui Lim
Kathy Ng
Patrick Barrett
Rob Sullivan
Narelle Elliott
Matthew Ryan
Head of Asia ex Japan Equities
Head of Australian Property
Investment
Investment
Investment
Investment
Investment
Investment
Client Portfolio Manager
Dealer
Dealer
19
21
10
9
23
25
9
12
17
15
3
Experience(Years)Name Role
Sydney
Sydney
Sydney
Sydney
Singapore
Singapore
Singapore
Sydney
Sydney
Sydney
Sydney
LocationCo- Lead Portfolio Managers
Highly experienced team – Average experience of the Asian Property team is 16 years
Source: Credit Suisse
CS EF (Lux) Asian Property Team
The team leverage off the Tokyo office for stock selection in JapanTeam is linked into the Credit Suisse Global Property network of 132 investment professionals
CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITEDABN 57 007 305 384 AFSL 238390
European RoadshowFebruary 2006 Slide 31
Property markets are fast evolving in Asia
No2006/07e
No
2006/07e
Yes
India
Yes2003
Yes2006e
Yes2005
Yes1989
Yes2001
Yes1999
Yes1971
NoChina
REIT’s to be listed in Hong Kong
& Singapore
REIT Regulation
Yes
2005
NoYesYesYesYesYesYes
(listed in HK)
REITs Real Estate Investment Trust’s
YesYesYesYesYesYesYesYes
PropertyDevelopers
Hong Kong
KoreaThailandMalaysiaJapanSingaporeAustChina
Property Markets are at different development stages
Evolving Property Markets Developed/Maturing Property MarketsNote: *2006, China REIT listings in Hong Kong and Singapore.
CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITEDABN 57 007 305 384 AFSL 238390
European RoadshowFebruary 2006 Slide 32
Urbanisation
Source: CEIC
CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITEDABN 57 007 305 384 AFSL 238390
European RoadshowFebruary 2006 Slide 33
Source: CLSA Asia-Pacific Markets
Average residential price per sq ft
0
100
200
300
400
500
600
700
800
900
1,000
1,100
90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06
(USD)Hong Kong New York
Greater London Japan
New York: US$943
HK: US$466
Greater London: US$1,099
Japan: US$469
Asian residential prices still lag
CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITEDABN 57 007 305 384 AFSL 238390
European RoadshowFebruary 2006 Slide 34
Japan – A Disappearing Problem
Source: CEIC, CLSA Asia-Pacific Markets
4,000
5,000
6,000
7,000
8,000
9,000
10,000
11,000
12,000
Jun-9
2
Dec
-92
Jun-9
3
Dec
-93
Jun-9
4
Dec
-94
Jun-9
5
Dec
-95
Jun-9
6
Dec
-96
Jun-9
7
Dec
-97
Jun-9
8
Dec
-98
Jun-9
9
Dec
-99
Jun-0
0
Dec
-00
Jun-0
1
Dec
-01
Jun-0
2
Dec
-02
Jun-0
3
Dec
-03
Jun-0
4
Dec
-04
Jun-0
5
Unsold condos in greater Tokyo
CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITEDABN 57 007 305 384 AFSL 238390
European RoadshowFebruary 2006 Slide 35
Reit Regulation summary
CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITEDABN 57 007 305 384 AFSL 238390
European RoadshowFebruary 2006 Slide 36
Credit Suisse Equity Fund (Lux) Asian Property
Portfolio Manager: Boon-Hong Yeo/ David Scott
Fund domicile: Luxembourg
Unit Class: Tranche B: Capital Growth
Launch date: 1 July 2005
Fund Currency: USD
Benchmark: GPR General Asia Index
Management fee pa: 1.92%
Initial charge: As per bank fees
Swiss Security Number: 2169074
ISIN Number: LU220210792
Key Facts
CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITEDABN 57 007 305 384 AFSL 238390
European RoadshowFebruary 2006 Slide 37
Disclaimer
This document was produced by CREDIT SUISSE (hereafter “CS") with the greatest of care and to the best of its knowledge and belief. However, CS provides no guarantee with regard to its content and completeness and does not accept any liability for losses which might arise from making use of this information. The opinions expressed in this document are those of CS at the time of writing and are subject to change at any time without notice. If nothing is indicated to the contrary, all figures are not audited. This document is provided for information purposes only and is for the exclusive use of the recipient. It does not constitute an offer or a recommendation to buy or sell financial instruments or banking services and does not release the recipient from exercising his/her own judgment. The recipient is in particular recommended to check that the information provided is in line with his/her own circumstances with regard to any legal, regulatory, tax or other consequences, if necessarywith the help of a professional advisor. This document may not be reproduced either in part or in full without the written permission of CS. It is expressly not intended for persons who, due to their nationality or place of residence, are not permitted access to such information under local law. Every investment involves risk, especially with regard to fluctuations in value and return. Investments in foreign currencies involve the additional risk that the foreign currency might lose value against the investor's reference currency. Historical performance indications and financial market scenarios are no guarantee for current or future performance. Performance indications do not consider commissions levied at subscription and/or redemption. Furthermore, no guarantee can be given that the performance of the benchmark will be reached or outperformed.
The investment funds mentioned in this publication are domiciled in Luxembourg and are in conformity with EU Directive 85/611/EEC of 20 December 1985, as amended, relating to undertakings for collective investment in transferable securities. Representative in Switzerland is Credit Suisse Asset Management Funds, Zurich. Paying agent in Switzerland is Credit Suisse, Zurich. Subscriptions are only valid on the basis of the current sales prospectus and the most recent annual report (or semi-annual report, if the latter is more recent). The prospectus, the simplified prospectus, the management regulations and the annual and semi-annual reports may be obtained free of charge from Credit Suisse Asset Management Fund Service (Luxembourg) S.A., Luxembourg, from Credit Suisse Asset Management Funds, Zurich and from any bank in the Credit Suisse Group. 2006 Copyright by CREDIT SUISSE