Credit Suisse Principal Protected Yield Fund

Fund Summary

Why invest?
The Principal Protected Yield Fund offers Investors the following potential benefits:

• exposure to a portfolio of potentially high yielding investments in bond funds;
• 100% protection at Maturity (4 years) on capital invested¹, provided to the Fund. Principal Protection is provided by 100% of monies subscribed by Investors under the Offer being placed on deposit with Credit Suisse, which is rated AA- (outlook stable) by Standard & Poor's, and for the purpose of this issue is acting through its Sydney Branch;
• an enhanced return via embedded leverage²; The Fund will have between 100% to 200% exposure to the underlying bond fund investments (starting at 150%). This exposure will be adjusted dependent on performance; a key feature is that unlike many principal protected products, the Fund can never have less than 100% exposure to the underlying bond fund investments;
• potential for attractive semi-annual income payments; and
• an investment benefiting from the combined expertise of two of the world's major financial service organisations:
• leading global investment bank, Credit Suisse, a specialist in structured products, will provide the Leverage, income payments, investment services in relation to the Fund and arrange for Principal Protection; and
• leading global bond manager, PIMCO, manages the underlying bond fund investments.

Who should invest?

The fund should suit:

• the income component of a balanced investment portfolio;
• investors seeking a potentially high yield income investment;
• investors seeking principal protection;
• investors who want exposure to the PIMCO Global Investor Series global, high yield and emerging markets bond funds;
• investors with a minimum investment of $20,000;
• investors who can retain their investment for approximately four years; and
• superannuation investors - the Fund provides internal Leverage to enhance returns which may be attractive to self-managed super funds.
• investors using an investment loan who are comfortable with the risks associated with borrowing to invest (100% investment loan will be available at competitive rates).³

Managing your money

The Credit Suisse Group's expertise

The Credit Suisse Group is a leading global provider of financial services. Founded in 1856, the Credit Suisse Group has a long tradition of meeting the complex financial needs of a wide range of clients. It provides companies, institutional clients and high-net-worth private clients globally with advisory services, comprehensive solutions and innovative products.

The Credit Suisse group is active in over 50 countries and employs approximately 41,000 people from over 100 different nationalities. Its investment banking business specialises in innovative solutions, and is a market leader in structured products. Credit Suisse International's principal business is banking, and it issues structured products globally. Credit Suisse Sydney Branch conducts an extensive banking business in Australia, including wholesale and corporate banking transactions, leveraged finance business, proprietary trading and institutional fixed income business.

Who is PIMCO?

PIMCO is a leading, global institutional money manager specialising in the management of active fixed income portfolios. Headquartered in Newport Beach, California, it has offices in London, Munich, New York, Tokyo, Sydney and Singapore. Since its founding in 1971, PIMCO has grown to be one of the largest specialist fixed interest managers in the world employing more than 800 people and managing more than A$830 billion around the globe. PIMCO has managed Australian client portfolios since 1996 and offers clients a range of innovative fixed income strategies designed to outperform indices over long time periods.

The combined benefit: the Principal Protected Yield Fund

Investors in the Fund will benefit from the combined expertise of both organisations.

The Fund's objective is to produce attractive income returns with the benefit of 100% Principal Protection at Maturity.

Credit Suisse will provide:

• exposure to the returns from the Underlying Pool of PIMCO Funds;
• leverage to potentially enhance the return to Investors;
• income payments from any positive performance of the underlying investments; and
• for principal protection at Maturity to safeguard the initial investment via a deposit with Credit Suisse Sydney Branch.

PIMCO manages the underlying bond funds to which Investors will gain exposure. The Underlying Pool of PIMCO Funds will comprise three actively managed bond funds selected from the PIMCO GIS range to support the Fund's objectives. PIMCO has a long and successful track record of outperforming global bond indices. The underlying PIMCO GIS funds will be:

• Global Bond Fund (50%)


• High Yield Bond Fund (25%)
• Emerging Markets Bond Fund (25%)

*** Current rating as at May 2007. Any Lonsec Limited ("Lonsec") (ABN 56 061 751 102) rating presented in this document is limited to "General Advice" and based solely on consideration of the investment merits of the financial product(s). It is not a recommendation to purchase, sell or hold the relevant product(s), and you should seek independent financial advice before investing in this product(s). The rating is subject to change without notice and Lonsec assumes no obligation to update this document following publication. Lonsec receives a fee from the fund manager for rating the product(s) using comprehensive and objective criteria.

**** Current rating as at June 2007. This document has been prepared by Aegis Equities Research Pty Limited ("Aegis") (ACN 085 293 910, AFSL no. 225071), an Australian Financial Services Licensee. Aegis has been commissioned to prepare this independent research report and will receive fees for its preparation. Any opinions, forecasts or recommendations reflect the judgment and assumptions of Aegis as at the date of publication and may change without notice from time to time. This publication is not and should not be construed as, an offer to sell or the solicitation of any offer to purchase or subscribe for any investment. Any opinion contained in the document is unsolicited general information only. Investors should always obtain individual financial advice from their investment advisor to determine whether opinions or recommendations (if any) contained in this publication are appropriate to their investment objectives, financial situation or particular needs before acting on such opinions or recommendations.

1. The principal protection will be provided by Credit Suisse Sydney Branch to the Credit Suisse Principal Protected Yield Fund only at maturity. It will not be provided directly to unit holders, and will be subject to limitations, including termination events and unanticipated fund liabilities. It will only apply to the value of $1.00 per unit on the issue at maturity.

2. Leverage magnifies potential losses as well as profits.

3. Investment loans will be available from third party lenders subject to terms and conditions including credit approval.

Equity Trustees Limited (ACN 004 031 298) (EQT) is the responsible entity of the Credit Suisse Principal Protected Yield Fund (Principal Protected Yield Fund) and will be the issuer of units in the Principal Protected Yield Fund. It is important for you to consider the Product Disclosure Statement relating to the Principal Protected Yield Fund (PDS) in deciding whether to acquire, or to continue to hold, units in the Principal Protected Yield Fund. An investment in the Principal Protected Yield Fund is subject to investment risks, including possible delays in repayment, loss of income and capital. An investment in the Principal Protected Yield Fund is not a deposit or other liability of any company in the Credit Suisse group of companies, or the Responsible Entity. No member of the Credit Suisse group of companies guarantees the capital or performance of the Principal Protected Yield Fund or its assets, subject to the capital protection provided by Credit Suisse Sydney Branch to the Principal Protected Yield Fund at Maturity to the value of $1.00 per unit on issue at Maturity as described in the PDS.