Benefits of investing in the Prime Value Growth Fund - Class B

• STEWARDSHIP - We take our role as stewards earnestly and value our responsibility to investors - putting our clients first.

• INDEPENDENCE - Our ownership is simple and transparent, and our independence gives us the freedom to invest with a long-term approach. We combine the discipline and investment expertise of a large fund manager with the flexibility and non-bureaucratic features of a boutique.

• ALIGNMENT OF INTEREST - Our management and investment team invest in the Prime Value Funds so we too depend on consistent outperformance; our aim to build wealth together with our investors is fundamental.

• PERFORMANCE - Prime Value's investment process plays to our strengths and has consistently delivered for investors.

• RISK MANAGEMENT - Minimising mistakes may be undervalued by many but not by us - it remains our central investment philosophy. While tools such as standard deviation can provide some insight into risk management, we tend to think along the same lines as investors; that is, we are more concerned about an investment's potential for losses ahead of its potential effect on standard deviation.

• EXCEPTIONAL TEAM - When you invest in a boutique you invest in our people, and we are proud to have an experienced, stable, committed team.

• CULTURE - Prime Value has developed a successful culture which is open, inclusive and collaborative; and reflected in the longevity and stability of the investment team.

Risk level

High

Investor suitability

The Fund is designed for an investor seeking medium to long-term capital growth, who is prepared to accept some fluctuations in short-term returns. This type of investment may be appropriate as a significant part of a properly diversified investment portfolio for individuals, companies, trusts, superannuation funds and non-profit organisations.

Investment philosophy

The following are the four pillars of our investment philosophy:

Stewardship

We take our role as stewards earnestly and value our responsibility to investors - putting our clients first. Co-investing alongside our investors ensures a true alignment of interest.

Quality investing requires a balance between Art and Science

Prime Value enjoys the flexibility of being a style- neutral manager because it allows us to select stocks from across the ASX. This independent approach has delivered for over 14 years and means our process is not easily replicated.

When evaluating investment opportunities, we focus on good companies selling below intrinsic value. We judge stocks based on investment fundamentals while also taking into account macro economic data, corporate financial reports, industry data and comments from corporate officers to determine whether a stock is under or over-valued.

Prime Value believes all economic and financial tests require flexibility, depending on the phase in the economic cycle or the type of stock. There is no standard way of identifying winners or losers in the stock market. Experience and common sense dictate how the formula must be adapted to determine the appropriate investment decision for each security.

Analysis is the first step in investing; however interpretation and judgment are equally important.

Minimising mistakes

Minimising mistakes is our number one imperative. We must remember investment decisions are based on market views and intelligence that is often faulty, and on research that is never complete and error-free. Managers therefore live and die on their own judgments. This may seem to be lacking the heroics of picking big winners, but in practice the Investment Manager who makes the fewest mistakes usually produces superior results. Our research efforts are focused as much on avoiding losers as identifying winners.

Benchmarks are inefficient

Benchmarks are a good way to get a feel for how well the market in general has performed, but they are not necessarily a good model for how to build a portfolio of stocks. At Prime Value, our main focus is on good companies selling below their intrinsic value regardless of their weighting in the benchmark or whether they are large, mid, small or micro cap stocks.

The ability to consider "all caps allows us opportunities often overlooked by major fund managers and stockbrokers. There are good reasons to look beyond the obvious. Stocks outside the ASX 100 are less influenced by trading and market factors and are more suited to detailed fundamental analysis as the basis for investment selections.

Our portfolios are constructed based on the expected return characteristics of the individual companies without reference to their size. We invest in a "market of stocks, free of benchmark constraints.

How we invest your money

The Fund will be comprised mainly of securities, primarily companies listed on an Australian stock exchange or due to be listed in the next 12 months.

The Fund invests in Australian equities and will normally have short term cash investments for liquidity management purposes and may have limited investment in fixed interest securities.

Portfolio construction centres around five key categories:

• core

• specific growth

• asset realisation / valuation

• turnaround

• thematic

The Fund balances the risk and potential return of each security and each category with the absolute return objective of the portfolio. This results in a flexible and dynamic approach which adjusts according to the changing investment environment.