Benefits of investing in the Yarra Australian Real Assets Securities Fund

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

• Professional management: Access to a specialist investment manager, with extensive experience in Australian infrastructure, utilities and REIT securities, who will actively manage the investments

• Extensive resources: Dedicated full-time research resources, a rigorous investment process, highly developed risk management techniques, advanced technology and advanced trading systems

• Access to investment opportunities: By investing in a managed fund you effectively pool your money with that of other investors. This means you can take advantage of the greater buying power and investment opportunities a large pool of money allows, even though you may have a comparatively small sum of money to invest

• Diversification: Exposure to a professionally managed portfolio diversified over a range of asset classes and assets. The underlying investments are actively managed to seek optimal risk/reward outcomes for the Fund

• Liquidity: The ability to generally invest in and redeem Units in the Fund on a daily basis.

Risk level

High

Investor suitability

The Fund may be suitable to investors that have a long term buy and hold investment time frame (i.e. a recommended minimum term of 5 to 7 years), who seek returns that are in line with the objective of the Fund and who have a risk tolerance in line with the Funds summary risk level.

Investment objective

To achieve a balance of income and medium-to-long term capital growth by investing primarily in Australian listed infrastructure, utilities and REIT securities. In doing so, we aim to outperform the Benchmark over rolling three year periods.

Investment approach

As an active manager of Australian infrastructure, utilities and REIT security portfolios, we are focused on investing in securities which are fundamentally underappreciated by the broader market. We believe the stock market is inefficient and that mispricing opportunities arise when the market's valuation (as depicted in the security price) doesn't reflect our views on a company's true value.

Internal research is used to build a strong knowledge of companies and to develop robust forecasts for use in our detailed models. Our valuation methodology includes a combination of discounted cashflow valuations, free cash flow yields and asset based valuation methods. We also use external research to gauge consensus views and determine where our views may be differentiated.

This research and analysis forms the basis of the stock selection decisions. Once the securities have been selected for inclusion, the investment teams then construct the portfolio, deciding the quantity of each security to hold in order to create a portfolio which best meets the investment objective.

Finally, the portfolio is monitored daily in order to ensure that it contains the optimal blend of securities to provide investors with the best chance of receiving above average returns in the long term.

Note on the Benchmark

The S&P/ASX 300 Custom Infrastructure, Utilities and A-REITs Index is a market cap weighted index of infrastructure, utilities and REIT securities included in the S&P/ASX300.

How we invest your money

The Fund invests as follows:

• In infrastructure, utilities and real estate securities, with a strong focus on entities with relatively stable and predictable earnings streams.

• Minimum of 80% invested in Benchmark securities, that is, Australian listed infrastructure, utilities and REIT securities.

• Maximum of 20% may be invested in non-Benchmark securities, including: Australian listed infrastructure, utilities and real estate securities that are not included in the Benchmark, global listed infrastructure, utilities and real estate securities, and up to 10% in unlisted infrastructure, utilities and real estate securities.

• Maximum of 20% invested in cash.

The Fund may also invest in exchange traded derivatives on a temporary basis (ie less than 28 days) to manage investment risk and gain or reduce exposure to relevant markets in an efficient manner whilst still remaining within allowable asset allocation ranges.

We aim to be fully invested in securities at all times.