Introduction

The company was formed to provide investors with the opportunity to invest in a long term portfolio of international shares and gain access to the specific funds management expertise of Peters MacGregor Capital Management. The Company was incorporated on 15th December 2003 and listed on the Australian Stock Exchange on 16th April 2004.

Investment Objective

Our investment objective is to:

*Outperform the MSCI World Total Returns Index (net local) net of our fees over the long term (five years plus).

*Preserve and generate capital growth over this period.

The portfolio managed by Peters MacGregor Capital Managementwill have a high level of concentration relevant to other investment portfolios and it is not expected that actual performance of the portfolio will track this MSCI Index.

The company does not borrow, and generally uses foreign currency hedging contracts to mitigate the risks of fluctuations in foreign currency movements with respect to investments domiciled in foreign countries.

Management Fee

1% p.a. of the value of the portfolio

Performance Fee

20% of the amount by which the Portfolio's performance (after deducting the management fee) exceeds the high water mark.

High Water Mark

The high water mark in any given period will be the greater of:

• The previous period's closing balance of the Portfolio (subject to adjustment) compounded by 7% per annum; or
• The previous period's high water mark (subject to adjustment) compounded by7% per annum.

The result is that the high water mark will increase at a minimum by 7% per annum.