LM INVESTMENT MANAGEMENT LTD.
LM Investment Management Ltd. is a Funds Management Company registered withthe Australian Securities and Investments Commission as an Australian FinancialServices Licensee and Responsible Entity. Licensed as an Australian FinancialServices Licensee, LM Investment Management Ltd. operates in full compliance withthe Managed Investments Act 1998 and the Financial Services Reform Act 2001. LMInvestment Management Ltd. was the seventh fund manager in Australia to secureResponsible Entity Status under the Act.

What We Do
LM Investment Management Limited (LM), as the manager of the LM funds, has a lending role that is similar to that of a finance company or bank. It lends to commercial borrowers, taking a registered first mortgage against real property as security for the loan. The borrower pays interest to LM each month and, after deducting fees within the fund, a forecast rate of interest is paid each month to the fund's investors.

LM Mortgage Income Fund (Currency: AUD)
The LM Mortgage Income Fund aims to consistently offer competitive yieldsbalanced with high security and low volatility. The Fund invests in a combination of interest bearing cash investments and short-term fixed rate loans to produce regular monthly income that keeps pace with market interest rates to ensure competitive returns. The Fund has never lost money nor failed to redeem an investment at the end of a term.

New Investment Options
LM Investment Management Ltd has recently made available two new investment terms for the Mortgage Income Fund. (3 yr. and 4 yr. terms). Unique features of these terms are:

• A top forecasted gross rate of return of 7.75% p.a (6.99% p.a. net of Withholding Tax);
• 100% allocation of funds invested, less any bank transfer charges.

Who Should Invest?

Those who seek:

• A stable monthly income;
• Attractive and consistent yields on term investments;
• Capital stability and low volatility as a component of their investment portfolios;
• An Australian Dollar Investment with highly favourable taxation treatment;
• Income returns underwritten by an Income Assurance Program.