TOWER Australian Shares Portfolio – Changes to Underlying Fund Managers

TOWER is pleased to advise the following changes to the underlying fund managers in the TOWER Australian Shares Portfolio, effective 1 May 2006.

Schroder Investment Management Australia Limited (SIMAL), GMO Australia Limited (GMO) and State Street Global Advisors (State Street) have been added to the TOWER Australian Shares Portfolio. Barclays Global Investors Limited (BGI) and Jenkins Investment Management Pty Ltd (JIML) were retained whilst Investors Mutual Limited was terminated from the Australian Shares Portfolio effective 1 May 2006.

About the new investment managers

Schroders, GMO and State Street Global Advisers are all well rated by research houses. The newly appointed managers have a strong local presence backed by a global parent, an excellent track record and a very experienced investment team. More detailed information on the underlying managers is available on the internet Who are TOWER's Investment Managers?

What proportion of the Australian Shares portfolio is allocated to these investment managers?

*TOWER reserves the right to remove, add or change the percentage allocation to a manager in the Australian Shares portfolios without prior notice. As a result, the identity, number of managers and percentage allocated to each manager for a portfolio may vary from time to time.

The benefits of a more consistent and competitive performance

Combining a number of well regarded and highly rated fund managers with different investment styles in the management of the Australian Shares Portfolios seeks to avoid significant ‘investment style’ bias. Ultimately, this ‘style neutral’ approach reduces the impact of extreme performance outcomes for each individual manager on the total portfolio resulting in a robust investment performance relative to the market over the long term.

This management strategy aligns directly with TOWER’s overall investment strategy which aims for consistent investment returns for clients with ‘no surprises’.

TOWER will continue to monitor and review the composition of its investment portfolios and is  confident the new Australian Shares fund manager line-up will deliver consistent and competitive investment returns in the future.

If you have any questions regarding these changes or need further assistance, please contact visit the TOWER website at www.toweraustralia.com.au or contact your Sales Manager.

Kind Regards,

Sue Mieog
Head of Investments

Disclaimer
This document has been prepared to be used by financial planners and advisers only. It is not to be provided to individual clients. The information contained in this document is general information only and cannot be considered to be financial advice. The information does not take account of the investment objectives, financial situation or particular needs of any particular client. To the extent permissible by law, TOWER Australia Limited (ABN 70 050 109 450, AFSL 237848) and its related companies (TOWER) specifically disclaims any liability that may arise for any direct, indirect, incidental, consequential or special damages that may arise from the access to or use of this document. No liability is accepted by TOWER for errors and omissions or for loss or damage suffered as a result of reliance on this document.

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TOWER Australia Ltd
A.B.N. 70 050 109 450
AFSL Number 237848