Benefits of investing in the Paradice Australian Equities Fund

The Investment Manager believes that there is opportunity to find value no matter where we are in the economic cycle. By building a diversified portfolio of investments that exhibit four key characteristics (undervaluation, business quality, strong financial metrics and shareholder-friendly boards) the Fund aims to generate strong, long term risk-adjusted returns.

Other significant benefits of investing in the Fund may include:

• access to Paradice's investment expertise;

• active risk management (through the form of risk spreading);

• access to investment opportunities that individual investors often cannot achieve;

• managed funds can often invest for less cost than ordinary investors can achieve individually;

• generally, you can add to or withdraw your investment daily;

• you have the right to receive any distributions we make from the Fund (usually semi-annually). Distributions may also carry tax credits;

• you can also receive capital gains (or suffer losses) when you dispose of your investment such as by exiting the Fund or selling your units; and
• a robust compliance and governance structure with a trusted responsible entity and legal rights under the Constitution of the Fund.

Investor suitability

The Fund is primarily designed for investors seeking superior medium to long term capital growth from exposure to a diversified portfolio of quality companies. Investors need to be comfortable with the short term fluctuations inherent in equity investments.

About the Fund

The Paradice Australian Equities strategy was established in May 2007 by lead portfolio manager Troy Angus. The team comprises of four senior portfolio manager/analysts including Troy.

The Fund typically invests in 30-50 companies listed in the S&P/ASX 300, providing investors with an exposure to a diversified portfolio of Australian businesses.

Investment style

The Fund employs a long term 'bottom-up' approach to investment.

Paradice believes that equity markets are inefficient and therefore offer excellent investment opportunities over time. The inefficiencies arise due to excesses in investor emotion, a focus on short term investment horizons and consistent focus on one of the least important aspects of a company's financial health - its profit and loss statement.

Paradice believes that one of the most important aspects of investing is objectivity. It is therefore possible to benefit from changes in market inefficiencies by focusing on logical, ordered and objective investment decisions based on known facts.

How we invest your money

Investment approach

n seeking to achieve the investment objective, the Fund will invest in securities that are listed on the Australian and New Zealand stock exchanges. The Fund will generally hold between 25 to 70 securitiesIn the event that the Fund receives an application or redemption, the Fund may buy or sell equities on market prior to that application or redemption being reflected in the Net Asset Value of the Fund. In the case of an application, this may result in the Fund being temporarily leveraged. Such temporary leverage may also occur if application monies are equitized and ultimately not received by the Fund.