Benefits of investing in the Pendal Imputation Fund

Investing in the Fund offers investors a range of benefits:

• access to a professionally managed portfolio of Australian shares and the potential for long term capital growth and tax effective income;

• access to Pendal's investment expertise and core investment style;

• broad based coverage of the Australian sharemarket;

• regular investment statements and an annual tax statement to keep you up-to-date on your investment;

• ability to keep track of your investments in the secure client area by visiting the login section at www.pendalgroup.com

Risk level

Medium to High

Investor suitability

This Fund is designed for investors who want the potential for long term capital growth and tax effective income, diversification across a broad range of Australian companies and industries and are prepared to accept higher variability of returns.

About the Fund

The Fund will primarily invest in Australian shares, including Australian listed property securities and convertible preference shares, that offer above average income returns. The Fund may also hold cash and may use derivatives.

Investment Philosophy

Pendal seeks to deliver consistently superior performance to exploit investment opportunities that we believe arise due to the inefficient market pricing of securities. We believe that all types of companies can outperform and we do not construct the portfolio with any pre-determined style bias and seek to source ideas from across the spectrum of the market.

Pendal's investment process for Australian shares is based on our core investment style and aims to add value through active stock selection and fundamental company research. Pendal's core investment style is to select stocks based on our assessment of their long term worth and ability to outperform the market, without being restricted by a growth or value bias. Our fundamental company research focuses on valuation, franchise, management quality and risk factors (both financial and non-financial risk).

Derivatives may be used to reduce risk and can act as a hedge against adverse movements in a particular market and/or in the underlying assets. Derivatives can also be used to gain exposure to assets and markets.

How we invest your money

Investment Process

The majority of our resources are devoted to fundamental research at the company level, as this is where we can gain the deepest insights and create the greatest value. We construct our portfolios to be primarily driven by individual, bottom-up stock selections. This is aligned with our insight and expertise at a stock level. While the portfolios will reflect our broader views, stock selection will normally deliver a greater portion of portfolio performance.

The Pendal Imputation Fund invests in stocks which we believe will provide high yields compared to the market average. It is intended that the portfolio will-be well diversified across sectors and not biased structurally to invest only in traditional yield stocks'.

Our fundamental company research focuses on valuation, franchise, management quality and risk factors (both financial and non-financial risk). The combination of these quantitative and qualitative factors forms the basis of the analysts'' stock recommendations. The key features of our process include:

• a structured approach to research, with each analyst following a standardised format for stock research

• a separation of research and portfolio construction for increased accountability and clarity of responsibility

• stock recommendations to provide greater transparency of analysts' outputs into the portfolio

• a commercial focus which is entrepreneurial in nature. Analysts and portfolio managers are incentivised to generate new "money making ideas.

Asset Classes and Asset Allocation Ranges

• Australian shares: 60%-100%

• Australian listed property securities: 0%-15%

• Convertible preference shares: 0%-15%

• Cash: 0%-15%