AGEST -

Barclays Global Investors

Website:  www.barclaysglobal.com

AGEST and BGI

AGEST has employed BGI to manage part of the Listed Property and Fixed Interest portfolios of the fund.

Objective and strategy

The investment objectives and strategies for each of the above investment arrangements are outlined below.

Objective
To provide investors with the performance of the listed property market, before fees, as measured by the return of the S&P/ASX 300 Property Accumulation Index.

Strategy
The fund uses a full replication methodology to track the performance of the index.

Objective
To provide investors with the performance of the Australian Bond market, before fees, as measured by the return of the UBSWA Composite Bond All Maturities Index.

Strategy
To match the distribution of the risk and return factors of the index.  Factors considered in matching the index risk and return include:

• interest rate risk, including coupon and maturity
• covariance risk, including co-movement of interest rates and spreads
• specific risk, including individual security price risk.