Benefits of investing in the Dexus Wholesale Plus AREIT Fund

Some of the benefits that may arise from an investment in the Fund include the following:

• Active management: The Manager is an active investment manager and constructs portfolios independent of index weightings. By evaluating the potential risks and rewards of the underlying AREIT stocks and actively investing in stocks outside of the S&P/AREIT 300 Index, the Underlying Fund aims to provide greater diversification benefits and lower risk returns than the market.

• Income returns: A significant focus for the management of the Underlying Fund is on generating sustainable and regular income returns. This typically means that the Underlying Fund targets those investments it believes can deliver relatively high and sustainable income returns.

• Exposure to commercial real estate: Direct investment in commercial real estate can be difficult and is often beyond the realm of possibility for many retail investors due to the large capital commitment and specialist knowledge that is generally required to invest in this sector. The Underlying Fund provides exposure to a diversified and professionally managed portfolio of quality commercial real estate. The distributions from real estate securities predominantly come from rental income of the underlying commercial properties.

• Non index weightings: Unlike many property securities funds which invest significantly on the basis of the weighting of a particular property security investment in an index, the Underlying Fund will invest on the basis of the Manager's determination of the relative value and attractiveness of the property security investment.

• Limiting exposure to higher risk earnings: The Manager limits the Underlying Fund's exposure to earnings derived from international assets and active business activities, such as development or funds management type activities, which are generally considered riskier earnings. This strategy aims to deliver a lower risk compared to the risk of investing in the AREIT Index.

The Dexus Wholesale Plus AREIT Fund (the Fund) is likely to be appropriate for a consumer:
− seeking to achieve a consistent, relatively high level of income combined with some capital growth
− intending to access the Fund through an Investor Directed Portfolio Service or through a superannuation fund. The Fund isn’t open to direct investors
− intending to use the investment in the Fund as a minor or satellite allocation within a portfolio;
− who has an investment timeframe of at least 6 years;
− who has a 'High' risk/return profile
− seeking the ability to make daily withdrawal requests and for withdrawal proceeds to be paid typically within 
10 Business Days to the consumer's Investment Service or superannuation fund under normal market 
conditions

About the Fund

The Fund will invest into the APN AREIT Fund APIR APN0008AU (Underlying Fund), which is an actively managed portfolio of Australian Securities Exchange (ASX) listed Australian Real Estate Investment Trusts (AREITs) and cash/fixed interest. The Underlying Fund does not invest in direct property.

Investment objective

To provide investors with a consistent, relatively high level of income combined with some capital growth, sourced primarily from AREITs listed on the ASX.

The Underlying Fund aims to:

1. have a gross annual income yield (before management fees and expenses) that equates to at least 110% of the average yield of the benchmark
2. have a tax advantaged income component of distributed income
3. provide investors with a level of capital growth which at least matches increases in the Consumer Price Index (CPI) over a 5-7 year time horizon, and
4. provide lower than market volatility compared with the S&P/ASX 300 AREIT Index.

How we invest your money

The Underlying Fund will invest in AREITs and cash/fixed interest. The Underlying Fund will not invest in direct property. The Manager will continually review and, if appropriate, re-weight the Underlying Fund's investments with the objective of optimising the Underlying Fund's distributable income.

The constitution of the Underlying Fund allows the Manager to borrow on behalf of the Underlying Fund. It is the current intention of the Manager that the Underlying Fund will not undertake direct borrowing. The entities in which the Underlying Fund will invest may borrow.

It is the Manager's current policy not to use derivatives for leverage or risk management purposes within the Underlying Fund. The entities in which the Underlying Fund will invest may use derivatives.

The target asset allocation of the Underlying Fund is:

(Asset class: Long-term allocation range / Indicative allocation)

• Units or shares in AREITs: 90-100% / 98%

• Cash / fixed interest: 0-10% / 2%