Investment in Argo Investment

The fund will make an inital small investment in Argo Investments shares. The initial investment will be to facilitate participation in their Share Repurchase plan and other attractive benefits as listed below.

Low Management Costs
No management fees are charged by Argo and being a listed company, only normal stockbroker charges apply when shares are purchased and sold. For the year ended 30 June, 2005 total operating costs were 0.15% of total assets at market value.

Franked Dividends
Argo pays dividends in March and September each year. Imputation credits on dividends received by Argo are passed on through the fully franked dividends paid to Argo shareholders, with all shareholders benefiting from the associated tax credits. Certain Australian share holders can also claim a tax benefit where the dividend is sourced from a LIC capital gain.

Share Purchase Plan
Argo has a Share Purchase Plan which enables shareholders to invest up to $5,000 a year in additional shares, currently at a 2.5% discount off the market price. Participation in the SPP is entirely at the option of the shareholders and no transactional costs apply.

Dividend Reinvestment Plan
Argo has a Dividend Reinvestment Plan, which is currently offered to eligible shareholders at a 2.5% discount off the market price. Participation in the DRP is again entirely optional and no transactional costs will apply.

Share Issues
Argo also has a history of making attractively priced new issues of shares to our existing shareholders.

Combined with their outperformance of All Ords Accumulation INdex for 5,10,15 and 20 years.

Initial investment of between $2-$5k will be made and then a regular investment of $400-$800 per month to dollar cost average in to the stock.