1. Pre Select and Access Pre Select Fund Performance as at 31 December , 2

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1 Pre Select quarterly update December Pre Select and Access Pre Select Fund Performance as at 31 December , 2 Pre Select Funds 3 mths (%) 1 yr (%) 3 yrs pa (%) 5 yrs pa (%) Pre Select Conservative Fund Conservative Survey Median (Wholesale) Pre Select Balanced Fund Moderate Growth Survey Median (Wholesale) Pre Select Growth Fund Balanced Growth Survey Median (Wholesale) Pre Select High Growth Fund High Growth Survey Median (Wholesale) Pre Select Australian Equities Fund Australian Equity Survey Median (Wholesale) Pre Select Australian Small Companies Australian Small Company Survey Median (Wholesale) Pre Select International Equities Fund International Equity Survey Median (Wholesale - Full Universe) Access Pre Select Funds 3 mths (%) 1 yr (%) 3 yrs pa (%) 5 yrs pa (%) Access Pre Select Conservative Conservative Survey Median (Retail) Access Pre Select Balanced Moderate Growth Survey Median (Retail) Access Pre Select Growth Balanced Growth Survey Median (Retail) Access Pre Select High Growth High Growth Survey Median (Retail) Access Pre Select Australian Equities Australian Equity Survey Median (Retail) Access Pre Select Australian Small Companies Australian Small Company Survey Median (Retail) Access Pre Select International Equities International Equity Survey Median (Retail) Total returns shown have been calculated using exit prices after taking into account the responsible entity s ongoing fees and assumes reinvestment of income. Past performance should not be taken as an indication for future performance. 2. The median manager returns have been obtained from the Mercer Wholesale Multi-Sector Survey and the Median Retail Multi-Sector Survey.

2 Overall Performance Diversified Funds Diversified fund investors generated strong returns during the December quarter, as world share markets continued to recover from a disappointing first half of Australian small companies were the best performing of the major asset classes in which we invest, followed by hedged global shares. The rise in the Australian Dollar continues to adversely impact on the performance of unhedged global shares, however this is adequately offset in the Pre Select portfolio via the equally weighted investment between hedged and unhedged global shares in both the diversified funds and the international shares sector fund. For the quarter to December 2010, all diversified funds outperformed their benchmark (before fees). Positives for the quarter came from the above index performance in the Australian and global equities sector. For the year to December 2010, all diversified funds outperformed their benchmark (before fees) with the Australian equities sector being the major driver of the excess return. Australian Equities The performance of the Australian equities option over the quarter to December 2010 generated 1.01% over benchmark before fees. All managers with the exception of Adam Smith Small Companies outperformed their index. However, Adam Smith s underperformance (-0.64% under benchmark before fees) was more than offset by Pre Select s other complimentary small company manager Aviva Investors (5.88% over benchmark before fees). International Equities The Pre-Select International Equities Fund outperformed the 50/50 hedged/unhedged MSCI World global benchmark by 0.11% (gross of fees) over the quarter to December 2010 and was marginally below the benchmark over the year, -0.63% (gross of fees). Capital International (Hedged) and AXA Global Equity Value fund both outperformed (0.50% and 0.45% respectively over benchmark before fees). Over the full year to December 2010, both AXA Global Equity Value and AXA Global Equity Growth were the main detractors from performance (-4.01% and -2.00% respectively under benchmark before fees). Remaining sectors The global property securities sector is actively managed by Perennial Investment Partners. Perennial marginally underperformed over the quarter. Of the remaining sectors, Australian listed property securities, and Australian and overseas fixed interest are managed according to a passive or enhanced passive approach and performed to expectations. The exceptionally strong performance over the year to December was driven by solid alpha generated from the broadly based managers, in particular, Perpetual (4.10% over benchmark before fees), as well as the 7% strategic allocation to small companies. Of the small company managers, both Aviva Investors and Adam Smith generated admirable alpha for the year (4.18% and 1.89% respectively over benchmark before fees). Over the year to December 2010, all Australian equity managers generated alpha before fees. 2

3 2. Pre Select specialist managers as at 31 December 2010 Strategic Allocation Style Australian equities BlackRock Scientific Australian Shares 31% Active Core Aviva Investors Australian Shares 31% Active GARP Perpetual Australian Shares 31% Active Value Pre Select Australian Small Companies Fund 7% Multi Manager Australian small companies Adam Smith Small Companies 50% Active Value Aviva Investors Australian Small Companies 50% Active Core International equities Vanguard International Shares Index Fund (Hedged) 30% Index BlackRock Global Equity Enhanced Index Fund (Unhedged) 20% Enhanced Index Capital International Global Equities Fund (Hedged) 20% Active Core AXA Wholesale Global Equity Growth Fund 15% Active Growth AXA Wholesale Global Equity Value Fund 15% Active Value Australian listed property Colonial First State (W) Indexed Property Securities Fund 100% Index Global listed property Perennial Global Property Securities Trust 100% Active Core Australian fixed interest Macquarie Enhanced Australian Fixed Interest Fund 100% Enhanced Index International fixed interest Macquarie Index Tracking Global Bond Fund 100% Index Cash Antares Fixed Income 100% Active 3

4 3. Top 10 overweight and underweight positions as at 31 December 2010 Australian equities The two tables below outline the most overweight stocks as 31 December 2010 and their respective sectors as well as the most underweight stocks. Top 10 Overweight Positions TELSTRA 4.50% 2.71% 1.79% COAL & ALLIED INDUSTRIES LTD 1.69% 0.00% 1.69% WESTPAC BANKING 7.06% 5.81% 1.25% FOSTERS GROUP 1.87% 0.95% 0.92% NEW HOPE CORPORATION ORD 0.90% 0.00% 0.90% ILUKA RESOURCES 1.19% 0.33% 0.86% NEWS CORP CDI 1.33% 0.58% 0.76% REECE AUSTRALIA LIMITED 0.66% 0.00% 0.66% TABCORP HOLDINGS 1.08% 0.42% 0.65% PREMIER INVESTMENTS LTD 0.66% 0.05% 0.61% Top 10 Underweight Positions WESFARMERS 1.20% 3.23% -2.03% NEWCREST MINING 1.14% 2.69% -1.55% RIO TINTO 1.81% 3.25% -1.43% WOOLWORTHS 1.62% 2.85% -1.22% SUNCORP 0.01% 0.95% -0.94% MACQUARIE GROUP LTD 0.25% 1.11% -0.86% COMMONWEALTH BK.OF AUS. 6.21% 6.85% -0.64% AGL ENERGY DEF 0.00% 0.61% -0.61% STOCKLAND 0.15% 0.75% -0.60% QBE INSURANCE GROUP 1.11% 1.66% -0.55% Active stock bets relative to the index are spread across a large number of stocks as opposed to being concentrated in just a few stocks. Broadly, active stock positions are within +/-3%. 4

5 International equities The two tables below outline the most overweight stocks as 31 December 2010 and their respective sectors as well as the most underweight stocks. Top 10 Overweight Positions SAMSUNG ELECTRONICS GDR 0.39% 0.00% 0.39% ALTRIA GROUP 0.61% 0.22% 0.39% RIO TINTO 0.82% 0.44% 0.38% JUNIPER NETWORKS 0.43% 0.08% 0.34% DENSO CORP 0.39% 0.07% 0.32% TESCO 0.54% 0.23% 0.31% DANAHER 0.42% 0.11% 0.31% SCHLUMBERGER 0.79% 0.49% 0.30% TARGET 0.47% 0.18% 0.29% AMERICAN TOWER 0.38% 0.09% 0.29% Top 10 Underweight Positions EXXON MOBIL 0.88% 1.59% -0.71% ATLAS COPCO AB 0.32% 0.74% -0.42% COCA COLA 0.18% 0.59% -0.41% GENERAL ELEC CO 0.46% 0.84% -0.38% NESTLE SA REG 0.55% 0.87% -0.32% CITIGROUP 0.27% 0.59% -0.32% GLAXOSMITHKLINE 0.13% 0.43% -0.30% BANK OF AMERICA 0.27% 0.57% -0.30% INTEL 0.23% 0.50% -0.28% WAL MART STORES 0.21% 0.47% -0.27% Active stock bets relative to index are spread across a large number of stocks, partly due to 50% of the portfolio being managed in an index or enhanced manner. Active stock positions are within +/-1%. 5

6 4. Pre Select and Access Pre Select Fund summary Pre Select Fund summary APIR ICR Buy/Sell Spread FUA ($M) Pre Select Conservative NUN0001AU / Pre Select Balanced NUN0002AU / Pre Select Growth NUN0003AU / Pre Select High Growth NUN0004AU / Pre Select Australian Equity NUN0005AU / Pre Select Australian Small Companies NUN0038AU / Pre Select International Equity NUN0006AU / Access Pre Select Fund Summary APIR ICR Buy/Sell Spread FUA ($M) Access Pre Select Conservative NUN0032AU / Access Pre Select Balanced NUN0030AU / Access Pre Select Growth NUN0033AU / Access Pre Select High Growth NUN0034AU / Access Pre Select Australian Equities NUN0028AU / Access Pre Select Australian Small Companies NUN0029AU / Access Pre Select International Equities NUN0035AU / More information Website: Investor Services: Issued by Navigator Australia Limited ABN , AFSL (Navigator). Navigator is the Responsible Entity of the Pre Select funds and receives fees in this capacity. Refer to the Pre Select funds product disclosure statement (PDS) for more details. Past performance is no guarantee of future performance. The Pre Select funds are only available for investment through an investor directed portfolio service, master trust or wrap account issued by Navigator or NULIS Nominees (Australia) Limited ABN , AFSL (NULIS). The information above is of a general nature only and does not take into account your particular objectives, financial situation or needs. Before making an investment decision, you should consider the relevant PDS and whether it is appropriate for you. The above information is current as at the date of publication. While every attempt has been made to ensure the accuracy and reliability of the information, it is not guaranteed in any way M0211 6