The following provides information about the fund managers that the Chifley Investment Fund (CHIF) uses to manage its investments. The descriptions, broken up by asset class, provide a brief account of each fund manager's investment style and areas of expertise.

Australian Shares

CHIF has a little over $94 million invested in Australian shares. These assets are managed by two "active" investment managers. "Active" means that these managers use their analysis to make investments in companies that they believe will outperform other companies in the relevant index, and they will change their positions from time to time.

Approximately half of the funds are with BlackRock Investment Management. This fund is a tax-aware quantitative fund that looks at how tax can affect the total return of an individual stock as well as the whole portfolio. Quantitative means the fund manager uses mathematical models to identify attractive and tax-effective stocks which should outperform the index over time.

BlackRock

The other half is managed by Karara Capital. This fund uses fundamental research to identify attractive stocks that they believe will beat the index over time.

Karara Capital

International Shares

Investments in this sector total over $59 million. The structure of this sector differs from the Australian Shares sector, as the International Shares managers are running "semi-passive" funds. A semi-passive fund means that the manager will largely hold the same stocks as the index, but will hold a higher weight in stocks that they expect to outperform and a lower weight in stocks they expect to underperform the index.

The sector is split into two halves with both portions being managed by State Street Global Advisors ("SSgA"). One half of the sector is invested in a semi-passive unhedged fund and the other half in a semi-passive hedged fund. This hedged portion is intended to reduce the currency risk involved with investing in shares in foreign currencies.

State Street Global Advisors

Fixed Income and Cash

CHIF has over $196 million of fixed income assets made up of:

Australian Government Bonds	41.4%
Australian Corporate Bonds	11.4%
Australian Cash	26.4%
International Government Bonds	18.5%
International Corporate Bonds	2.3%

The majority of the Australian Government Bonds is managed by Schroder Investment Management. This is a semi-passive fund that generally replicates the index. A smaller portion of the Australian Government Bonds is managed by Macquarie Investment Management who is also the sole manager of the Australian Corporate Bonds. The Australian Corporate Bond fund guarantees the return of the index to investors and has proved to be very successful at this.

Schroder Investment Management

Macquarie Investment Management

The Australian Cash portion is managed by QIC, formerly known as the Queensland Investment Corporation. This fund is an enhanced index fund, which aims to produce returns in excess of the index over time. It largely holds cash instruments with a few derivatives and fixed interest products held with the aim of beating the benchmark.

QIC

The International Government Bonds are managed by SSgA. This fund is passive with the aim of replicating the index returns.

SSgA

The International Corporate Bonds are managed by Pacific Investment Management Company LLC ("PIMCO") and QIC. Both of these managers aim to beat the index over time and pay little attention to stocks held within the benchmark.

Property

CHIF invests around $16 million in Australian Listed Property Trusts through Macquarie Investment Management. Like Australian Corporate Bonds, this Australian Listed Property Fund guarantees the return of the index to investors.

Pacific Investment Management Company LLC

Alternatives

This term refers to investments that do not fit into the category of traditional assets like shares, property and fixed income.

CHIF uses four specialist hedge fund managers to look after the Alternative assets:

• FRM Australia Pty Ltd
• BlackRock Alternative Advisors
• MM&E Capital Pty Ltd
• Warakirri Asset Management Pty Ltd

These funds invest in multiple underlying hedge fund managers in order to capture the latest market trends with the aim of producing returns in excess of cash over time.

This information is correct as of 20/09/10