AMCBF2 - | - PORTFOLIO - | - ANNOUNCEMENTS - | - SHAREHOLDER INFORMATION

The Australian Masters Corporate Bond Fund No 2 (‘AMCBF#2’) was established to provide Australian retail investors access to the Australian wholesale senior bond market through a simple, cost effective corporate structure. The Company raised $35.5 million through a prospectus raising completed in September 2008.

This Company provides access for Australian domiciled retail investors to an underlying portfolio of high ranking senior Australian corporate debt. The Company also holds in its portfolio senior corporate debt issued in Australia by well known multinational companies and Australian subsidiaries of multinational companies. These bonds, known as kangaroo bonds, are denominated in Australian dollars.

The Company is managed by Dixon Advisory & Superannuation Services Limited.
The Company employs a static, or ‘buy and hold’ portfolio management style, selecting a portfolio of high quality senior bonds denominated in Australian dollars and issued by Australian companies and generally holding these bonds until maturity.’

Since September 2008, the Company assembled a portfolio of wholesale bonds from 9 different issuers with staggered maturities ranging from less than one year to just under five years from the date of listing. The aggregate purchase price of the bonds from the 9 issuers currently held within the portfolio totals $32.9 million. At the time of purchase, the bonds had yields to maturity of between 7.5% to 9.31%.

The Company expects to continue to pay two fully franked dividends per year. The Company will seek Shareholder approval to execute capital returns from time to time, passing capital proceeds derived from the maturity of bonds back to investors.