The fees and costs which are applied in the management of your investment include:

Base Management Fee

Base Management Fee is 1% per annum of Adjusted Equity Value as at the end of each half-year period (exclusive of GST and similar foreign taxes). The fee is shared as follows between the Manager (Challenger Management Services Limited (CMSL)) who receives 95% and the Responsible Entity (Challenger Listed Investments Limited (CLIL)) who receives 5% of the fee.

The Manager and the Responsible Entity have agreed that they will be paid their share of Base Fees in the form of fully-paid Ordinary Stapled Securities for any fees payable for the period ending 30 June 2008. For all subsequent fee periods, their share of Base Fees will be payable either in cash or in the form of fully-paid Ordinary Stapled Securities, at the discretion of the Responsible Entity.

Performance Fee

The performance fee is 20% of oupterformance of the benchmark S&P/ASX200 Industrial Accumulation Index as at the end of the each half-year period (exclusive of GST and similar foreign taxes). The fee is shared as follows between the Manager, who receives 95% and the Responsible Entity, who receives 5%.

To the extent CIF underperforms the benchmark in any period, no Performance Fee is payable for that period and the value of the deficit is carried forward into future periods and must be made up before any Performance Fee becomes payable. 

The Manager and the Responsible Entity have agreed that they will be paid their share of Performance Fees in the form of fully-paid Ordinary Stapled Securities for any fees payable for the period ending 30 June 2008. For all subsequent fee periods, their share of Base Fees will be payable either in cash or in the form of fully-paid Ordinary Stapled Securities, at the discretion of the Responsible Entity.

CGS UK Fee

The CGS UK fee is the fee payable to the UK Manager (CGS UK) in relation to the management services provided to the UK Jersey Companies. The amount is £15,000 per annum.

Expenses and Services Fees

CIF is liable for all proper expenses incurred in relation to its operation. If such expenses are paid by the Responsible Entity, the Manager or the UK Manager they can be recovered out of the total assets of CIF. These include expenses incurred in acquiring, valuing, holding or disposing or investments and maintaining registers and accounting records, remunerating directors (to the extent that  such remuneration is attributable toe the management and administration of CIF) and remunerating and insuring Directors.

For further information please refer to pages 58-63 of the IPO Document.