copy of reply to my query to afg of today

Thanks for your email.

As you'll have seen from announcements around the Allco 2007 AGM and Allco Finance Group 2007 Annual Results (our most recent presentations to shareholders on our results), Allco has delivered financial performance ahead of expectations. We will be reporting Allco’s first half results for 2008 on February 15, 2008.



The annual results showed a strong growth in funds under management, diversity of earnings and that Allco has a very strong capital base. Further Allco’s business model as a global originator and manager of alternative assets was demonstrated through:



· Allco’s asset origination – as Allco continues to source and develop assets globally

· Funds creation – as Allco continues to build a broader platform of Allco-managed funds in our core asset classes

· Funds management growth – the funds under management more than doubled



The 2007 AGM provided an update for the 1st Quarter which demonstrated a very strong origination pipeline with the volume of originations in all our core asset classes growing. We did indicate at the meeting that the funds creation activities had been slower than we would have liked however there are a number of funds under development which we expect to roll out in the 2nd half of FY08.



You may have noticed that since the AGM we have announced the launch of two wholesale funds – Allco GTI and Allco SIF – ahead of the expected timeframe. Additionally we have recently employed heads of both Global Capital Markets and Funds Management to strengthen the skill set in these areas.



However one of the key challenges is the current market sentiment, and its impact on the AFG share price. Allco has no control over these share price movements, other than to continue to manage the business for the long term to deliver growth for shareholders. We are aware of our continuous disclosure obligations to the market.



Allco is also a relatively new listed company, when compared with our diversified financial peers, and a business in transition (from a structured finance company to a global manager of alternative assets so we also have to develop our track record and the understanding of our business model.



I hope this has addressed your questions.

Regards