This section outlines the administration costs and investment costs associated with the Fund which are paid to the Trustee-Manager for managing the Fund. The fees and expenses are deducted from the income of Fund before distributions are paid to Unitholders.

Administration costs and investment costs

There are four types of fee and expenses, which are listed below:

1. Management Fee
2. Performance Fee
3. Fee on replacement of the Trustee-Manager as responsible entity of the Fund
4. Other expenses

Management Fee

For services provided to the Fund, the Trustee-Manager is entitled to a Management Fee of 0.45% p.a. (plus GST) of the Fund Value payable quarterly in arrears and calculated on the Fund Value as at the last day of the relevant quarter.

Performance Fee

The Trustee-Manager will be paid a Performance Fee (which is calculated at the end of each Financial Year) equal to 20% (plus GST) of the dollar value by which the return of the Fund (which provides for the increase in the Relevant Market Price (as defined herein) of the Units and any distributions of income and capital which have occurred) exceeds the return of the Benchmark for the period commencing on the date when a Performance Fee was last payable and ending at the end of the Financial Year when the return of the Fund has exceeded the Benchmark. In calculating the return of the Fund, any changes in the capital structure of the issued Units including but not limited to additional Units issued pursuant to the Distribution Reinvestment Plan, consolidations or rights issues will be taken into consideration. When calculating the changes in the Relevant Market Price (as defined herein) of the Units, the Trustee-Manager will use the Relevant ASX Market Price for the Units traded on the ASX and the Relevant SGX-ST Market Price for the Units traded on the SGX-ST. The Relevant SGX-ST Market Price will be converted to Australian dollars in accordance with the Fund s Constitution. The Fund s Constitution requires that any currency conversion be made at a time and at such rates quoted by an Australian authorised deposit-taking institution or other financial institution nominated by the Trustee-Manager. Accordingly, the performance of the Units on both the ASX and SGX-ST will be taken into account in calculating the Performance Fee.

If the return of the Fund does not exceed the Benchmark, no Performance Fee will be paid. Where the return of the Fund is less than the Benchmark, the under-performance of the Fund in the Financial Year(s) since a Performance Fee was last paid must be recovered before the Performance Fee is payable in any subsequent Financial Year.

The Performance Fee is capped at the lesser of A$2.0 million or 0.50% p.a. of the Fund Value (calculated on the Fund Value as at the last day of a Financial Year) for each Financial Year since the Performance Fee was last payable. The Trustee-Manager will waive such part of the Performance Fee that exceeds this cap.

When a Performance Fee is payable, it will initially be satisfied by the conversion of Deferred Units into Units. The number of Deferred Units to be converted into the equivalent number of Units each time the Performance Fee is payable will be calculated by dividing the amount of the Performance Fee in respect of a Financial Year by the Market Price of a Unit as at the day on which the Performance Fee becomes payable to the Trustee-Manager. In payment of the Performance Fee, the Fund issued 2,000,000 Deferred Units on 17 December 2004, and as at the Latest Practicable Date, 247,395 Deferred Units have been converted to 247,395 Units. Once all of the 2,000,000 Deferred Units on issue have been converted into Units, future Performance Fee entitlements will be paid in cash. Units resulting from the conversion of Deferred Units cannot be sold, transferred or otherwise disposed of until 1 July 2009 (except to a related body corporate of the Trustee-Manager), unless the Trustee- Manager retires or is removed as the responsible entity of the Fund, in which case the Units can be sold.

When the Trustee-Manager determines at the end of a Financial Year that a Performance Fee is payable, the Fee is to be paid immediately upon the completion of the auditor s review of the determination. For further information on the Performance Fee, please refer to the sections  Interested Person Transactions and Conflicts of Interest  and  Additional Important Information .

Other expenses

All expenses reasonably and properly incurred by the Trustee-Manager in connection with the Fund or in performing its obligations under the Constitution are payable or may be reimbursed out of the assets of the Fund to the extent the Corporations Act allows. These include recurring operating expenses, such as registry, custody, accounting and tax advisory fees, annual and ongoing listing fees, costs associated with the preparation and distribution of reports to Unitholders and other miscellaneous expenses.

Fee on replacement of Trustee-Manager

Under the terms of the Constitution, and subject to the Trustee-Manager properly performing its duties as responsible entity of the Fund, if the Trustee-Manager is removed as responsible entity of the Fund, the Trustee-Manager will be entitled to receive the following fee immediately prior to its removal as the Trustee-Manager:

(a) If the removal becomes effective during the period of 12 months ending on 17 December 2006 (being the second anniversary of the Fund s admission to the Official List of the ASX), the sum of A$1,600,000 (plus GST) ;

(b) If the removal becomes effective during the period of 12 months ending on 17 December 2007 (being the third anniversary of the Fund s admission to the Official List of the ASX), the sum of A$1,200,000 (plus GST);

(c) If the removal becomes effective during the period of 12 months ending on 17 December 2008 (being the fourth anniversary of the Fund s admission to the Official List of the ASX), the sum of A$800,000 (plus GST); and

(d) If the removal becomes effective during the period of 12 months ending on 17 December 2009 (being the fifth anniversary of the Fund s admission to the Official List of the ASX), the sum of A$400,000 (plus GST). If this fee becomes payable to the Trustee-Manager, it may have a material adverse impact on the Fund s financial condition and results of operations as well as its ability to make distributions to Unitholders, and the Unit price may be materially and adversely affected as a result.