Benefits of investing in the Celeste Australian Small Companies Fund

An investment in the Fund has certain advantages including:

• your money is managed by Celeste's investment professionals who have access to investment techniques that may not be available to all investors;

• providing exposure to a more diversified portfolio than may be available to investors on their own;

• access to investment opportunities and markets that may not be accessible to all investors;

• generally you can apply to withdraw your investment on any Business Day;

• fund managers can usually invest at a lower cost than individual investors; and

• from its investments, the Fund is expected to generate (but does not guarantee it will generate) for investors: dividends; interest; capital gains (as well as capital losses); franking credits; and other income.

Risk Level
High

The Celeste Australian Small Companies Fund provides Australian investors with exposure to a diversified portfolio of Australian Securities Exchange (ASX) listed smaller companies.

The performance of the Fund is benchmarked against the S&P/ASX Small Ordinaries Accumulation Index (the Benchmark).

The investment objective of the Fund is to produce returns which exceed the Benchmark by 5% over rolling three-year periods (after fees and expenses and before taxes).

The Fund's major focus is on smaller companies outside the S&P/ASX 100 Index. Celeste has considerable historic expertise in the smaller company area and believes that it can generate superior investment returns by the disciplined application of its investment process.

It is our policy to only have exposure to ASX listed securities. Diversification is maintained at a stock level by holding a minimum of 20 individual securities. The Fund may invest in all industry sectors listed on the ASX, however, the Fund is not limited or constrained to any particular exposure or industry group. Exposure to industry groupings will be determined by the stocks which we invest in. This may at times lead to a high investment exposure to any one industry sector.

To control and reduce the investment risk of the Fund, Celeste generally adopts the following policies:

• Maintaining a diversified portfolio of stocks generally numbering between 30 and 40;

• Limiting the maximum exposure of any stock to 10% of the net asset value of the Fund (as at the time of purchase). The exposure may increase by a further 2% above this limit due to market movement; and

• Restricting the maximum exposure to stocks with a market capitalisation of less than $50 million to 5% of the Fund.

How we invest your money

Asset Classes and Allocation Ranges

The investment mix for the Fund will generally fall within the ranges below:

• Australian equities 90 - 100%

• Cash 0 - 10%

The investment guidelines provide an indication of the intended holdings in the Fund and may be higher or lower from time to time. In exceptional market conditions the Fund may have higher levels of cash where, in Celeste's opinion, more attractive investment opportunities cannot be found.

The investment mix can change quickly and sometimes significantly.