Elstree is a boutique fixed income fund manager.

Elstree is exclusively owned by interests associated with the executive. The executive comprises Campbell Dawson, Norman Derham and John Abbott. Details of the executive can be found by clicking on the People menu.

Established in December 2002 Elstree has been managing portfolios of listed debt equity hybrids securities since May 2003.

Included in Elstree's investible universe are most Australian Stock Exchange (ASX) listed debt equity hybrid securities including converting reset and step up preference shares, perpetual income securities and convertible notes. As at November 30, 2007 Elstree's investible universe exceeded A$23 billion.

Elstree's investment philosophy is based on the observation that demand (investor) and supply (issuer) imbalances lead to securities being consistently mispriced relative to their intrinsic value. These mispricings create opportunities for active managers, such as Elstree to exploit.

Latest News: Australian Enhanced Income Fund NAV for May 2009

The Fund’s NAV at the close of business on May 29, 2009 was $5.479 per unit. This compares with the NAV of a unit on April 30, 2009 of $5.39 per unit. The change in NAV over the period from April 30, 2009 to the close of business on May 29, 2009 represents a return of +1.65% . This compares with the UBS Bank Bill Index return over the period of +0.25%.

The addition of an estimated 0.11% franking benefit the total return over the period increased to +1.76%.

Additional information can be found by clicking on the Australian Enhanced Income Fund heading and downloading the document entitled 'Monthly Performance Review'

May 16, 2008. Elstree Enhanced Income Fund now open to new applications

At the expiry of our 12 month self imposed moratorium of new fund applications we are pleased to advise that our wholesale fund products including the unlisted wholesale trust, The Elstree Enhanced Income Fund , are now open to applications.

The Fund’s Information Memorandum can be found by clicking on the Unlisted Trust heading on the left hand side of this page. Investors can download the Information Memorandum by clicking on the Information Memorandum PDF icon.

The closure of our Funds in May 2007 was designed to assess whether our ability to consistently generate attractive risk adjusted returns would be compromised by the size of the pool of funds we manage. We made this decision assuming market conditions remained orderly and normal. However, the unprecedented events of the last 9 trading months in the ASX listed hybrid market made it difficult to come to a meaningful conclusion.

Despite being unable to come to meaningful conclusion it was decided to re-open our funds to new applications but closely monitor risk adjusted performance over time. Should our ability to generate attractive risk adjusted returns under normal market conditions be unduly compromised we will re-assess our decision.

In view of the volatility and difficult market conditions a decision relating to new products has been deferred temporarily.

Investors interested in investing in our listed retail trust the Australian Enhanced Income Fund can find out more about the trust by clicking on the Australian Enhanced Income Fund heading on the left hand side of this page. Units in the fund can be purchased on market through a stock broker. Additional information can be found by visiting the ASX website www.asx.com.au . The Fund’s ASX code is AYF .

Please note that from Monday May 19, 2008 the Registered Office and new postal address of Elstree Investment Management Ltd will be;

Level 15, 333 Collins Street, Melbourne VIC 3000

The telephone, facsimile and email addresses remain unchanged.

New Information Memorandum (July 12, 2008)

Due to the introduction of the Anti Money Laundering and Counter-Terrorism Financing Act (2006) Act (AML/CTF) we need to collect more detailed information about investors applying for units in the Elstree Enhanced Income Fund.

The information we are required to collect is detailed on pages 18 and 19 of the Information Memorandum.

Current investors in the Elstree Enhanced Income Fund will note that the information we are required to collect is not retrospective.