The Premium Income Fund ARSN 090 687 577 is a registered managed investment scheme domiciled in Australia. The Fund was first registered on 22 December 1999 and is currently managed by Wellington Capital Limited. The Fund was previously managed by Wellington Investment Management Limited (formerly known as Octaviar Investment Management Limited).

The Premium Income Fund’s principal activity is the receipt and investment of Unitholders’ funds in registered mortgages, equity, debt instruments and cash.

There are currently 755,195,542 Units in on issue in the Premium Income Fund. The Premium Income Fund currently has 10,387 Unitholders.

The net asset backing of a unit in the Premium Income Fund as at 30 June 2008 is 45c per unit.

Structure

The basic framework of the Premium Income Fund is as follows:

The Fund’s Authorised Investments

The Constitution of the Premium Income Fund authorises the Fund to invest in the following authorised investments:
• Commercial loans;
• Fixed interest securities including:
• structured transactions;
• floating rate and income securities;
• convertible, reset and hybrid securities; and
• other high yield securities;
• Property backed managed investment schemes;
• Asset backed investments; and
• Cash and equivalents.

Investment Objective

Our approach in managing the Fund is to use well defined investment analysis and risk management processes. Wellington Capital Limited selects investments for the Premium Income Fund based on their capacity to maintain capital value and on their ability to deliver a stable income stream.

Wellington Capital Limited adheres to investment and risk management guidelines to create asset diversification and performance.

Experienced Management and Custodian

Investments are managed by Wellington Capital Limited. This company has an experienced board of directors with a wide variety of relevant skills and experience to maximise the performance of your investment.

Perpetual Nominees Limited is the custodian of the Premium Income Fund, and has been established for 122 years. Perpetual Nominees Limited holds the title to the assets on behalf of the Fund.

Benchmark Asset Allocation

The following are the investment ranges and benchmark asset allocations for each Authorised Investment.

All investments are reviewed regularly to ensure the initial and on-going objectives of the investments meet the Fund’s objectives.