LM Currency Protected Australian Income Fund

The fund is a short to medium term deposit fund that aims to outperform a range of different currency bank interest rates. It invests in the LM Mortgage Income Fund and protects against Australian dollar currency movements through a facility with UBS who provide quarterly currency hedging.

Key features of the fund:

Minimum investment: A$50,000 (or currency equivalent)
Size:                        A$31,341,024 (Feb 2006)
Dealing:                    Quarterly with automatic reinvestment
Minimum withdrawal:  Multiples of A$5,000
Withdrawal notice:     30 days prior to the expiration of the fixed term
Minimum balance:     A$50,000
Investment term:        12 months with roll overs every 3, 6 or 12 months

About the fund:
The LM Currency Protected Australian Income Fund provides a higher yielding alternative to cash deposits on a range of currencies, as set out below. Its yield is earned through its investment in the LM Mortgage Income Fund, the assets of which are first registered mortgage securities, cash and “at call” securities. To protect the investor from currency movements, the Fund hedges currencies using Forward Foreign Exchange Contracts arranged through UBS.

The minimum investment term is 12 months. At the expiration of each twelve month term investments are automatically rolled over into a further twelve month term unless 90 days written notice is given prior to investment maturity.

Rates Effective From 6th November 2006

Effective rates assume that the distribution is reinvested. Rates are quoted net of fees and withholding tax of 10%. Rates may vary during the investment term. Past performance should not be used as an indicator of future performance.

Withholding tax of 10% has been deducted from the above rates by the investment manager for non Austalian residents.

Who can invest? Anyone except resident Australian investors, subject to the restrictions below

How to invest
Investments can only be made by completion of an application from the current Information Memorandum.

A completed application should be sent to your Financial Adviser.

For further information please contact us.

It is the responsibility of any overseas applicant to ensure compliance with all laws of any jurisdiction relevant to their financial activities. The return of a completed application form will be taken to constitute a representation and warranty that there has been no breach of such laws and that all necessary approvals and consents have been obtained. The LM Currency Protected Fund is an Australian based investment fund, governed by Australian laws.

Disclaimer
Rates are calculated net of fees and effective rates are on the basis that distributions are reinvested. Distribution rates are variable and may change during investment term. The current rate may be obtained from your adviser or directly from the Manager.

Before making an investment decision LM Investment Management Ltd recommends investors consider their individual financial circumstances. Investors must have read the current Information Memorandum prior to investing. Investments can only be made by completion of an application attached to the current Information Memorandum. Past performance is not an indication of future returns.
This fund is not guaranteed and your attention is drawn to the risks section in the fund brochure. Past performance is no guarantee of future performance.