Ausbil’s active investment process aims to exploit the inefficiencies across the market, at all stages of the cycle and across all market conditions, with the aim of producing consistent and risk controlled outperformance.

To achieve returns (before fees and taxes) in excess of the benchmark over the medium to long term. There is no guarantee that this objective will be achieved.

Benefits of investing in the Ausbil Australian Geared Equity Fund

Investing in the Fund offers a range of benefits, including:

• Geared exposure to large cap companies: access to a geared portfolio of large capitalised companies that individual investors may not be able to invest in directly on their own.

• Diversification: the potential to diversify an investment portfolio.

• Experienced team: access to Ausbil's highly experienced investment management team with a proven track record.

• Expertise: access to the Australian investment expertise and knowledge of the Ausbil investment management professionals, who combine company level research with top down economic analysis resulting in a disciplined approach to portfolio construction.

• Regular reporting: direct investors can keep track of their investments through Ausbil's secure client website, www.ausbil.com.au. In addition direct investors will receive regular unitholder statements and an annual tax statement.

Risk level (SRM)
7 - Very High

Very high risk of losing money in any year. Likely to produce higher returns over the long term.

Investor suitability

The Fund is designed for investors with at least a five year investment time horizon, who wish to benefit from the long- term capital gains available from share investments and who are comfortable with fluctuations in capital value in the short to medium term.

The Fund is designed for investors with at least a five year investment time horizon, who wish to benefit from the longterm capital gains available from share investments and who are comfortable with fluctuations in capital value in the short to medium term

The Australian Geared Equity Fund is an actively managed Fund that borrows to invest into a portfolio of listed Australian equities that are generally chosen from the S&P/ASX 300 Index. The Fund will be geared by borrowing from a third party lender to purchase Australian equities.

Key features of the strategy

• invest in 30-40 quality large and mid-cap Australian companies

• uses internal gearing to maximise returns

• the process favours companies with positive earnings and earnings revision profiles

• aims to provide investors with long-term capital growth

Investment strategy

Ausbil's active investment process aims to exploit the inefficiencies across the market, at all stages of the cycle and across all market conditions, with the aim of producing consistent and risk controlled outperformance.

How we invest your money

Investments

The Fund predominantly invests in a portfolio of listed large cap Australian equities which are primarily chosen from the S&P/ASX 300 Index, and are partially funded by secured borrowings.

Asset allocation

(Security / range)

• Australian securities: 0-90%

• Cash or cash-like securities: 0-10%

The Fund will generally hold between 30 and 40 listed companies. In addition, it may invest in unlisted companies which are expected to be listed on any recognised exchange.

The maximum gearing ratio (borrowings/(net assets + borrowings)) is 55%. The gearing ratio may change regularly due to factors such as market movements, applications, withdrawals or changes to the amount borrowed. In certain circumstances, where the Responsible Entity deems it to be in the best interests of unitholders as a whole, it may be necessary to suspend withdrawals to manage the Fund's gearing position within its approved limits and to protect the interests of all unitholders in the Fund.

Although the Fund's Constitution permits the use of derivatives, Ausbil does not intend to use derivatives on behalf of the Fund.

The Fund may move outside the ranges set out above, for example where a large application is received or due to market movements. Ausbil will seek to rebalance the Fund within the ranges in a reasonable period of time.