Benefits of investing in the Pengana Global Small Companies Fund

The Fund offers investors the following benefits:

• Access to Pengana's specialist investment expertise

• Participation in an investment strategy which focuses on global small and mid cap listed securities

• Exposure to investment opportunities that individual investors may not be able to access on their own
• Active asset allocation and portfolio risk management

The Fund may be suited to you if:

• you want to gain exposure to a portfolio of principally global small and mid caps equities actively managed by a specialist boutique manager;
• you are looking to invest for at least 3 years and are seeking primarily capital growth with some income.

About the Fund

The Fund is an actively managed portfolio of predominantly small and mid cap listed global securities.

Investment strategy

The Pengana Global Small Companies Fund is an actively managed portfolio of global small and mid-cap stocks.

The Fund's investments are managed by specialist US-based manager Lizard Investors LLC, who create and actively manage portfolios not typically owned by large institutions.

Investment approach

The Fund's investment manager uses a value-oriented investment approach to small and mid- cap global equities that seeks to identify and invest in quality businesses that create significant value but are mispriced, overlooked or out-of-favour. The investment manager believes that unique opportunities exist due to limited available research, corporate actions or unfavourable investor perception.

How we invest your money

Investment process

The investment manager conducts independent analysis to generate its own investment ideas. Investment opportunities must meet the following 5 criteria to be considered for inclusion in the portfolio:

1. A durable competitive advantage
2. Management alignment with minority shareholders
3. Strong corporate governance policies
4. Balance sheets that enable the company to self-fund if the credit markets temporarily close
5. Compelling valuations based on the company's long-term cash flow generating potential

The portfolio construction process aims to develop portfolios that incorporate the best investment ideas from the investment manager's research while allowing for liquidity constraints and perceived risk. The Fund's investment manager will not typically hedge currency exposures, however during periods of currency extremes, some currency hedging may be employed.

Indicative strategic asset allocation

The Fund's investment manager aims to manage the Fund within the following guidelines:

• Typically 30 to 80 securities

• Target median market capitalisation of less than USD3billion

• 0%-20% cash and cash equivalents

• No more than 10% in a single position

• No more than 5% in securities which are not currently listed

• No more than 35% in a single industry sector

• No more than 55% in US securities

• No more than 25% in any other country's securities

The Fund can invest in securities that are not part of the Index.

The Fund's investment manager will endeavour to work within the above guidelines - however these should be viewed as objectives only and not absolute limits.