TERM INVESTMENTS

The Australian Public Trustees Income Fund (ABN 35 084 117 861, ARSN 114 372 619) is a registered managed investment scheme under the relevant provisions of the Australian Corporations Act 2001.

APT Investments Limited ACN 110 353 065 (AFSL 281320) is licensed as a Responsible Entity to operate this fund. The Fund Administrator is Australian Public Trustees Limited ACN 095 572 482 (AFSL 272997).

CUSTODIAN

Sandhurst Trustees Limited ACN 004 030 737 is the independent custodian of the Australian Public Trustees Income Fund.

The role of the custodian is to hold all assets of the Australian Public Trustees Income Fund including bank accounts, all securities including mortgages and other investments of the Fund separate from the assets of the Fund Administrator and Responsible Entity. The Custodian’s obligations and responsibilities are governed by the custodian agreement entered into between the Custodian and the Responsible Entity (Custodian Agreement). The Custodian is required to comply with the terms and conditions of the Custodian Agreement in addition to the Corporations Act.

Established in 1888, Sandhurst Trustees is a wholly owned subsidiary of Bendigo & Adelaide Bank Limited and is the holder of an Australian Financial Services Licence 237906.
As at 30 September 2009, Sandhurst Trustees had approximately $2.3 billion under management.

CAPACITY OF THE RESPONSIBLE ENTITY

The Responsible Entity is required to meet strict financial guidelines as set out in the Corporations Act including minimum net tangible assets of $50,000 or 0.5% of fund property and it must produce regular cash flow statements to ensure it has the financial resources to meet its obligations for a forecast of three months to be reviewed on a monthly basis.

PROFESSIONAL INDEMNITY

Both the Responsible Entity and the Fund Administrator each hold professional indemnity insurance for the sum of $5 million.

COMPLIANCE PLAN

As required by the Corporations Act, the Responsible Entity has lodged its Compliance Plan with the Australian Securities and Investments Commission.

The Compliance Plan sets out how the Responsible Entity intends to ensure that this fund complies with the Corporations Act and intends to operate under the fund Constitution.

The Compliance Plan identifies the personnel of Responsible Entity who have responsibilities and duties in relation to the Compliance Committee, the valuation of fund assets, and reports to unitholders, borrowings, the use of external service providers and safekeeping and inspection of records, disaster recovery plans and other matters relating to the operation of the scheme.

Copies of the Compliance Plan are available free of charge from the office of Australian Public Trustees.

COMPLIANCE COMMITTEE

A Compliance Committee has been established to monitor compliance with the Compliance Plan and report to the directors of the Responsible Entity on a regular basis regarding adherence to the Compliance Plan, the Corporations Act and the Constitution.

If the issues are not addressed by either the management or the Board, the Compliance Committee is obliged to report to the Australian Securities and Investments Commission. Where a Compliance Committee member receives information regarding serious breaches of the Compliance Plan, the Constitution or the activities of the Responsible Entity, he or she has an obligation to report to Australian Securities and Investments Commission in any event.

The Compliance Committee is currently comprised of an executive director and two external members, with a majority of external members as required by the Corporations Act.

COMPLAINT HANDLING

Where an investor has a complaint, at first instance they should contact the complaints officer at the office of the Responsible Entity and request a complaint form, at the following address:

       Complaints Officer
       APT Investments Limited
       PO Box 18235
       COLLINS STREET EAST VIC 3000

That form and the complaint procedures including details of their right to apply to an independent complaints service will be forwarded to them within fourteen days.

If that complaint is not dealt with by the Responsible Entity to the satisfaction of investor, they may make an application to the Financial Ombudsmen Service (FOS), an independent body charged with reviewing investor complaints, and have it adjudicate on the issue. The Responsible Entity is a member of FOS.

Their address details are:

       Financial Ombudsman Service
       GPO Box 3
       Collins Street
       MELBOURNE VIC 3001
       Ph: 1300 780 808
       Fax: 03 9613 6391
       Email: info@fos.org.au