Benefits of investing in the NovaPort Smaller Companies Fund

• Diversified portfolio: Exposure to microcap companies spanning Australia and New Zealand - a portfolio of diversified investment opportunities that individual investors usually cannot access on their own.

• Proven investment professionals: NovaPort are an experienced, stable investment team with over 44 years of combined experience between the co-Portfolio Managers.

• Propriety research: NovaPort conduct in-depth company analysis before considering these companies to form part of the Fund's investment universe.

• Capital growth: Potential for capital growth over the long term through exposure to a broad range of microcap companies.

• Active management: NovaPort act on market opportunities with allocations across multiple industry sectors to take advantage of growth segments.

Risk level

High

Investor suitability

The Fund is intended to be suitable for investors who are happy to invest for at least five years, are seeking high levels of return and are comfortable with high volatility, including the possibility of periods of negative returns.

About the Fund

The NovaPort Smaller Companies Fund is an award-winning fund designed for investors who want to access capital growth and diversified returns via smaller companies. The Fund invests primarily in companies which are outside the 100 largest companies listed on the Australian Securities Exchange. While some companies can include start-up businesses with small operations, many are household names.

As an active investor, our approach to managing the Fund is based on paying a reasonable price for companies with an improving profit growth profile, or are materially undervalued on other factors, while paying particular attention to the underlying quality of company earnings and management.

Investment approach

NovaPort's research effort is the foundation on which its investment process is built. To support its analysis of microcap companies, NovaPort conducts in-depth proprietary research through field visits and interviews with management and staff of the target companies, its competitors and the wider market including their vendors, customers and suppliers. NovaPort investigates comparable offshore industries and compiles research from a variety of other sources including government and industry bodies. Additionally, NovaPort studies demographics, industry trends, competitive forces operating within an industry, the ability of an industry to grow within an economy, and the ability of a company to grow within an industry. NovaPort also take into account the broad domestic and international economic climate. It applies a disciplined, research based process to its management of the Fund's investments.

How we invest your money

The Fund will primarily be invested in the shares of companies listed on the Australian Securities Exchange (ASX) which, at the time they are first acquired on behalf of the Fund, are not included in the ASX 100 and have a minimum market capitalisation of A$200m. Up to 10% of the Fund can be invested in unlisted companies, usually those that intend to list within six months. The Fund may also invest in listed New Zealand companies and a proportion may also be held in cash. The Fund can invest in listed equity securities or hybrid securities such as convertible notes, redeemable preference shares and partly paid shares. NovaPort does not intend to gear the Fund through the use of derivatives or short selling.

The final portfolio reflects the best bottom-up' ideas generated by NovaPort, resulting in a portfolio of between 25 and 45 securities, which meet the Fund's investment criteria. The final portfolio reflects the outcome of NovaPort's fundamental stock selection process. Portfolio construction guidelines are applied to ensure that the final portfolio meets the Fund's investment objectives and is managed within a risk-controlled framework. These guidelines include limits to the Fund's exposure to any one company. Diversification is achieved by investing across multiple industry sectors.

Strategic asset allocation ranges

• Securities: 80%-100%

• Cash: 0%-20%