Benefits of investing in the Eley Griffiths Group Small Companies Fund

There are many benefits of investing in the Fund. Some of the more significant benefits include:

• the potential to generate capital growth over the medium term as well as income from its investment in companies listed in Australia
  
• access to the investment expertise of the Investment Manager
  
• active risk management (through the form of risk spreading)
  
• access to investment opportunities that individual investors usually cannot achieve
  
• managed funds can often invest for less cost than ordinary investors
  
• generally, you can add to or withdraw your investment daily
  
• you have the right to receive any distributions we make from the Fund
  
• a robust corporate governance structure, and
  
• clear legal rights.
  

Risk level

High

Investor suitability

The Fund is generally suited for persons seeking medium to long term capital growth (3+ years) and those who can tolerate a high level of risk.

About the Fund

Eley Griffiths Group is a style agnostic equities manager combining fundamental bottom-up research of companies with an in-depth qualitative assessment of their management and industry structure. Our goal is to construct portfolios that outperform the market over the long-term.

Our proprietary investment process, known as SCOPE (Small Company Optimal Portfolio Evaluation), is a relative stock scoring tool that ranks stocks from highest to lowest based on their score.

The total stock score is made up of a PEG based quantitative assessment (50%) and a qualitative assessment of management and industry structure (50%).

The portfolio comprises the best scoring stocks, subject to a number of risk constraints, such as maximum active position size (5%) and liquidity.

The outworking of this process is a portfolio that typically exhibits both growth and value characteristics.

The Investment Manager

Eley Griffiths Group Pty Ltd is the Investment Manager of the Fund. As well as managing the Fund, the Investment Manager manages discrete portfolios for large institutional investors. The Investment Manager is a boutique investment manager specialising in Australian small companies. It is wholly owned by its staff. The Investment Manager has a commitment to excellence in the management of small company portfolios and the principals have extensive experience in this area. The business operates an outsourced service provider model which allows the principals to concentrate their time and energy on portfolio management and the discovery of stocks that they believe have been inefficiently valued by the market.

The Investment Manager's philosophy involves a belief in stock-picking, the need for a disciplined stock selection process, the value of market experience and intelligence to identify information inefficiencies, rigorous risk control measure and an extensive company visitation programme. The Investment Manager undertakes over 500 company contacts per year. For more information on the Investment Manager's investment process, see Mandate, below.    

How we invest your money

Asset allocation

The Fund will generally hold shares in listed companies and cash. The portfolio allocation will generally be:

• Australian: Min 80% / Max 100% / Target 95%

• Cash: Min 0% / Max 20% / Target 5%

Please note that the ranges and the target provide only an indication of the intended investments of the Fund. The Investment Manager aims to actively adjust the investment mix within the ranges above. The "target position is where the Investment Manager aims to have the Fund invested given a fairly valued investment market. All other things being equal, the target position would be the investment mix of the Fund.

Remember the investment mix can change within the ranges significantly and sometimes quickly. Ask your adviser or contact the Investment Manager for the latest investment mix and size of the Fund.

The Fund may borrow for operational purposes only (but the Fund itself will not be leveraged).