Ausbil’s active investment process aims to exploit the inefficiencies across the small and micro cap 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 MicroCap Fund

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

• Exposure to small and micro cap companies: access to under-researched small and micro 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 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 predominantly invests in a portfolio of listed small and microcap Australian equities which are primarily chosen from outside the S&P/ASX 200 Index constituents. The Fund is designed for investors 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.

Investment strategy

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

Key features of the strategy

• Process focuses on companies with sustainable business models and positive earnings revisions

• Aims to provide investors with long-term capital growth

• The Fund provides exposure to an actively managed portfolio, predominantly made up of listed small and micro cap Australian equities.

• Ausbil believes that active management of portfolios facilitates consistent and risk controlled outperformance. Rather than focusing only on growth or value investing, Ausbil's investment processes allow it to exploit the inefficiencies across the entire market, at all stages of the cycle and across all market conditions.

Investment style

Ausbil utilises a core' approach and seeks the best opportunities within the MicroCap universe. Our focus is on identifying liquid, well positioned and appropriately structured companies likely to enjoy positive earnings revisions over the coming period.

How we invest your money

Investments

The Fund predominantly invests in a portfolio of listed small and micro cap Australian equities which are primarily chosen from outside the S&P/ASX 200 Index.

Asset allocation

(Security / range)

• Australian securities: 0-90%

• Cash or cash-like securities: 0-10%

The Fund will generally hold between 35 and 60 listed companies. In addition, it may invest in unlisted companies which are expected to be listed on any recognised exchange.

Although the Fund's Constitution permits the use of derivatives and borrowing cash, Ausbil does not intend to use derivatives or borrow cash 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.