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					                                                 Fund REPORT
                                                                                                                           2005/2006




   REPORT FROM CoiNvEST LiMiTED AS TRUSTEE FOR THE CONSTRUCTiON iNDUSTRY LONG SERviCE LEAvE FUND


                                 During 2006 we are celebrating           Significantly, the Fund’s long term liabilities continue to grow and
  Chairman's                     the 30th anniversary of the              are projected to grow by a further $84 million, including claims
                                 commencement of the portable             paid, in the 2006/07 financial year.
  REviEw                         long service leave scheme for the        The year saw three changes in the composition of the Board
                                 construction industry in Victoria.       of CoINVEST Limited. Kate Spargo was appointed in October
                                 With this milestone in mind it is        2005 to replace Barry Amond, who retired, as an independent
                                 fitting that a major focus of the        director. Kate has a background in law and also serves on the
                                 2005/06 financial year has been          Boards of a number of publicly listed companies. In March 2006,
                                 planning for the future of the Fund.     Mark Brien was appointed as a representative of electrical trades
                                 This planning has covered all areas      employees replacing Paul Coffey who resigned in February.
                                 of our operation and has been            Finally, in June 2006 Peter Shell resigned as a representative of
                                 carried out under the auspices of        metal trades employers and has been replaced by Barry Mitchell.
                                 our new Mission Statement:               I thank all retiring directors for their service to the company and
                             To	provide	security,	accuracy	and	           the industry and wish them well for the future. In particular I would
responsiveness	to	our	customers,	on	a	cost	effective	basis.               like to thank Barry Amond for his service as a director over 14
The two major areas we are concentrating on are:                          years, the last six as Chairman.
1. The investment structure of the Fund and how we can give               It is with sadness that I note the passing of Owen Whelan in July
   added certainty to its long term future.                               of this year. Owen was an original member of the CoINVEST
                                                                          Board and served for 23 years until 1999, the last 14 years as
2. The delivery of service to the industry.                               Chairman. Owen made a significant contribution to the industry
The first will be delivered through a detailed study of our liabilities   and to CoINVEST over his long career and he will be missed.
and assets looking at the level of investment risk appropriate for        Sadly, in late August, John Cummins who had been a director
a Fund such as ours. The study takes into account the increase in         since 2001 passed away after a long illness. John made a
contribution rate to 2% of ordinary wages from 1 July 2006.               significant contribution to the Board during his period as a
The second priority is the redevelopment of our computer systems          director and was a strong supporter of portable long service
to bring it up to date with current technology. This has enabled us       leave in the construction industry. His insights into the industry
to critically examine the principles behind our service delivery and      were invaluable to the Board and he will be missed.
significant changes are planned to make it as easy as possible for        Finally, on behalf of the Board I thank John Hartley and his staff
the industry to interact with CoINVEST.                                   for their efforts over the past year which has been a particularly
Investment markets continued their strong performance during              busy one in terms of claims and new registrations. The coming
the year with our return of 18.38% being particularly pleasing.           year gives no sign of slowing down either as our computer
Compared to other balanced funds such as superannuation, our              project swings into top gear. Staff have performed exceptionally
return was in the first quartile.                                         well in this environment and have the full confidence of the Board.
More importantly, it is also pleasing to note that our long term
returns more than meet our investment objectives. Over a 20-year
period our annualised earnings rate is a healthy 11.12%.
On the operational side, more than 6,100 workers made a claim
on the Fund during the year and around $38 million was paid               Ms Kathy Grigg
out. This is an increase of 1000 claims and $9 million on the             Chairman
previous year.                                                            4 September 2006




BOARD OF DIRECTORS
CoINVEST Limited has eleven directors on its Board.
                                                                            Members                          OF THE BOARD
                                                                                                                   at 30 June 2006
Eight of the members are elected by the industry with four
                                                                            Kathy Grigg	           Chairman
employee representatives and four employer representatives. Three
are independent directors appointed by the Board with special               Michael Anderson	      Independent
expertise in either management, financial or actuarial matters.             Kate Spargo	           Independent
During the financial year, changes to the Board comprised:                  Michael Ball	          Representing	Building	Trades	Employers
Barry Amond retired on 30 September 2005                                    Trevor Fasham	         Representing	Building	Trades	Employers
                                                                            Philip Green	          Representing	Electrical	Trades	Employers
Kate Spargo joined on 1 October 2005
                                                                            Mark Brien	            Representing	Electrical	Trades	Workers
Paul Coffey resigned on 1 February 2006
                                                                            John Cummins	          Representing	Building	Trades	Workers
Mark Brien joined on 3 March 2006
                                                                            Steve Dargavel	        Representing	Metal	Trades	Workers
Peter Shell resigned on 9 June 2006                                         Barry Fitton	          Representing	Building	Trades	Workers
Accounts                                           PERFORMANCE OF THE FUND            Return for 12        Return for 3      Return for 5


Summary
                                                                                      months ending       years ending      years ending
                                                                                        June 2006          June 2006         June 2006
                                                                                       (Annualised)       (Annualised)      (Annualised)

                                                   Rate of Return                        18.38%              15.31%            6.31%
ConstruCtion industry                              Benchmark                             16.61%              14.53%            5.69%
Long serviCe Leave Fund                            Increase in Victorian
                                                   Construction Industry Weekly
Financial Statements                               Ordinary Time Earnings                 4.16%               N/A               N/A

Summary                                            What an outstanding year for investment returns. Most asset markets around
                                                   the globe enjoyed strong performance results. In particular, equity markets were
                                                   extremely buoyant with the local market achieving a 24% return. The Australian
The figures below have been extracted from the
                                                   market was supported by the ‘mining boom’ with companies in this sector doing
  statutory financial statements of the Fund.      very well on the back of high energy prices and the continued growth of China
The audit opinion below relates to the statutory   and India.
  financial statements of the Fund, not these      The CoINVEST Fund produced a stunning 18.38% return being well in front of
                                                   its benchmark for the year. Returns for the past three years have now exceeded
             summary statements.
                                                   15% per annum. The Fund has a balanced approach to asset management
      Summary Profit and Loss Statement            with a bias towards growth assets within the portfolio of some 70%. The
                                                   Investment Committee continues to monitor world economic conditions and as a
       for the year ended 30 June 2006
                                                   result in the latter part of the financial year decided to reduce a little equity risk
                                                   from the portfolio by selling out of some well performed holdings. Volatility in
                                       $,000's
                                                   world markets will be the focus especially in regard to the supply and ongoing
Investment Income - net                65,066      increased price of oil and the resultant concerns on inflation.
Contribution Income
TOTAL iNCOME
                                       49,576
                                   114,642
                                                   Industry EmploymEnt snapshot
                                                                               2002          2003           2004        2005         2006
                                                   Workers employed
Trustee Expenses                        6,938
                                                   during previous
Depreciation and Provisions               776      48 months               124,430      130,569        138,204      143,376 148,985
TOTAL EXPENSES                        7,714        Workers
                                                   currently employed       76,455        75,631        77,802       83,476       87,955
NET SURPLUS                        106,928         Working
                                                   subcontractors
Benefits Paid                          37,577      contributing               2,878         2,866        2,878         2,922       2,910
WSC Interest Credited                   1,560      Working
Increase in Future Benefits            56,758      subcontractors
                                                   non-contributing         18,323        18,640        19,199       19,401       19,668
TOTAL DiSTRiBUTiONS                 95,895
                                                   Employers                13,881        14,221        14,958       15,103       15,326
Decrease in
Accumulated Deficits                11,033
                                                   In DEp EnDEnT                            Au DIT                 R Ep O R T
                                                   To the Directors of CoINVEST Limited

           Summary Balance Sheet
              as at 30 June 2006
                                                   Audit Opinion
                                                   In our opinion, the financial statements of CoINVEST Ltd and the Construction
                                       $,000's     Industry Long Service Leave Fund for the period ended 30 June 2006 are
                                                   properly drawn up:
Current Assets                        11,847
Non-Current Assets                       899       (a) so as to give a fair and reasonable view of:
Investments                          425,246           (i) the remuneration appropriated out of the Fund by the Trustee;
                                                       (ii) the remuneration paid by the Trustee to each member of the Board;
TOTAL ASSETS                       437,992
                                                       (iii) the expenses reimbursed by the Trustee to each member of the Board;
Current Liabilities                    2,364           and
Accrued LSL Benefits Liability       418,382       (b) are in accordance with CoINVEST Ltd’s
WSC Balances                          16,566           (i) Trust Deed, clause 10.3;
                                                       (ii) Articles of Association, recital 25; and
TOTAL LiABiLiTiES                  437,312
                                                       (iii) Memorandum of Association, clause 5.

ACCUMULATED
                                                   Ernst & Young                               D.J. Thorn
SURPLUSES                                680       Chartered	Accountants	                      Partner
                                                   Melbourne, Victoria
  CoINVEST Limited (ABN 35 078 004 985)            26 September 2006

				
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