Australian Banc Income Fund

Australian Banc Income Fund (the “Fund”) was created to invest in a portfolio of common shares of the five largest Australian banks: Australia and New Zealand Banking Group, Commonwealth Bank of Australia, Macquarie Group Limited, National Australia Bank and Westpac Banking Corporation.

The Fund’s investment objectives are to (i) provide Unitholders with quarterly distributions; (ii) provide the opportunity for capital appreciation; and (iii) lower overall volatility of portfolio returns than would be experienced by owning common shares of the banks directly.

The Manager may sell call options on approximately, and not more than, 25% of the common shares of each bank held in the Portfolio. The Fund does not have a fixed distribution, but intends to set periodic distribution targets based on dividends received in the portfolio, option premiums from covered call writing and the Fund’s estimated expenses.

Performance Update

Australian Banc Income Fund Performance Update — First Quarter 2012
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