DUET Questions and Answers

1. What is DUET?

DUET is an ASX listed energy utility investment vehicle that was established to make investments in energy utility assets principally in Australia and New Zealand. DUET consists of two stapled registered managed investment schemes: Diversified Utility and Energy Trust No 1 (DUET1) and Diversified Utility and Energy Trust No 2 (DUET2).

The responsible entity of DUET1 is AMPCI Macquarie Infrastructure Management No 1 Limited (RE1). The responsible entity of DUET2 is AMPCI Macquarie Infrastructure Management No 2 Limited (RE2). RE1 and RE2 are jointly owned (50:50) by AMP Capital Holdings Limited and Macquarie Bank Limited.

2. Why is it called a stapled security and not a share or unit?

Stapled securities are equity securities comprising securities in two (or more) separate entities that have to be traded as a single stapled security. In DUET's case, there are two trusts, DUET 1 and DUET 2 (collectively referred to as DUET). DUET stapled security holders have an equal number of units in both trusts. Generally such structures are used to hold a portfolio of assets and are designed with the aim of maximising the efficiency with which returns are made to the security holders.

3. What interests do POWERS holders have in DUET?

POWERS holders hold preferred units in the POWERS Trust. They do not have any ownership interest in DUET (unless they are issued with DUET Stapled Units on Exchange).

4. What are DUET's investment objectives?

DUET is an investment fund established to invest in energy utility assets, principally in Australia and New Zealand, with strong competitive positions which offer predictable cash flows.

DUET intends to accumulate a portfolio of energy utility assets diversified by geography, energy source and regulatory regime.

DUET will seek to acquire significant shareholdings in those assets so as to provide DUET with a level of influence over the key strategic, operating and commercial decisions affecting its investments.

DUET will seek to achieve these investment objectives by targeting energy utility businesses which:

• have established historical or contracted volume levels
• are governed by regulatory regimes or have long term supply agreements
• are operated by capable operators able to manage risks and improve operating efficiencies

5. When will distributions on Stapled Units be paid?

DUET intends to distribute to unit holders all distributable income for each financial year, with distributions made twice yearly; for the half year ended 31 December (payable in early March) and full year ended 30 June (payable in early September).

6. What are the management fees paid to the DUET management companies?

Under the terms of the constitutions of DUET1 and DUET2 and the Management Deeds entered into with RE1 and RE2, respectively, a Base Fee and, potentially, a Performance Fee are payable by DUET1 and DUET2 to RE1 and RE2 respectively.

The Base Fee is currently calculated as 1% per annum of DUET's market capitalisation after adding commitments to invest and deducting uncommitted cash on the balance sheet.

A Performance Fee may also be payable in the event that the DUET accumulation index outperforms the S&P 200 Industrials Accumulation Index in any financial year. The performance fee is 20% of the amount of the net out-performance.

This management fee structure aims at ensuring that each manager's interests are aligned with those of DUET's stapled security holders, namely through security price performance.

7. What information do DUET investors receive?

DUET investors receive:

• holding statements
• an annual report;
• concise financial statements;
• a half yearly update;
• newsletters from time to time;
• distribution advice statements; and
• annual tax statements.