Benefits of investing in the CC JCB Active Bond Fund

A summary of the features and benefits of investing in the Fund is as follows:

• Active management: The Fund is managed by JCB, a specialist fixed income manager with significant global investment management expertise. Investment in the Fund provides access to investment knowledge, markets, opportunities and risk management systems that individual investors may not be able to obtain on their own.

• Diversification: An investment in the Fund offers diversity to a portfolio. When Government, Supranational Bonds and/or Public Finance Agency Bonds are held as part of a broader portfolio of different asset classes, diversification may assist in managing market volatility. Bond securities in general are considered a defensive asset class.

• Income: The Fund's underlying securities are backed by Government, Supranational or Public Finance Agency Bond issuers. The income generated by bond securities is consistent and regular (usually semi-annual).

• Liquidity: The underlying market of Australian Government, Semi Government, Supranational and Public Finance Agency Bonds are liquid positions that can be bought or sold with ease.

Risk level

Low to Medium

Investor suitability

Investors looking for income, diversification and defensive investment characteristics, uncorrelated to other asset classes.

Fund overview

The CC JCB Active Bond Fund (the Fund) provides access to active duration management and security selection through a portfolio comprising Australian Government, semi-Government and supranational bonds. The Fund aims to outperform the Bloomberg Ausbond Treasury 0+ Yr Index over rolling three year periods.

Investment philosophy

JCB is an active, fixed income manager with a macro economic, risk-adjusted investment process. JCB use a strict and disciplined approach honed across years of global market experience and careful management of downside risk. JCB aims to have the majority of the Fund's portfolio invested in long positions in Government Bonds, Supranational Bonds and/or Public Finance Agency Bonds. JCB will only invest in Public Finance Agency Bonds that are explicitly guaranteed by a government.

Investment strategy

In pursuing the Fund's investment objective, JCB use fundamental and technical analysis to make bond security selections and adjust duration exposures (against the Benchmark) with a view to generating the optimal risk-adjusted portfolio. Security selections are set with hard limits on entry and exit with both floors and ceilings being pre-determined before investments are acquired. The JCB investment process aims to deliver the benefits of a defensive bond allocation with the overlay of active management.

Fund highlights

• A cornerstone diversifier (negative correlation) against other asset classes

• Protection against deflation and cyclical downturns

• Precise and consistent defensive characteristics

• A secure source of liquidity

• No corporate credit (equity-like) risk

About Jamieson Coote Bonds

Founded in Melbourne in 2014, Jamieson Coote Bonds (JCB) is a privately owned specialist high grade bond manager. JCB manages A$1.1 billion of domestic and global high grade bond assets on behalf of institutional and retail investors. JCB is headquartered in Melbourne and has an office in Singapore.

JCB actively manages high grade bonds with the aim of delivering strong risk-adjusted returns and preserving capital, through a domestic and international strategy.

How we invest your money

Investment universe

The Fund aims to hold bond securities that are AAA or AA rated, backed by a government, supranational or Public Finance Agency and issued in Australian dollars. Derivatives are used for interest rate hedging purposes or to replicate underlying bond securities in the form of futures contracts listed on the Sydney Stock Exchange. All futures will be exchange-traded. The use of futures may generate some gearing to the Fund which the management team will control using a risk-adjusted framework.

Asset classes and allocation

Target ranges#

• Bond securities - 80-100%

• Derivatives - 0-50%

• Cash - 0-10%

Individual bond security selection not to exceed 20% of the Fund's net asset value.

# In order to carry out the investment strategy and achieve the objective set out above, the asset allocation target ranges may vary significantly from time to time.

Duration

+/- 3yrs of duration vs. the Benchmark