Benefits of investing in the Greencape Broadcap Fund

• Diversified portfolio: Access to a broad universe of Australian companies (incl. mid and small cap) offering the potential for growth.

• Sound investment philosophy: Greencape's investment philosophy is grounded in the belief that markets are inefficient and that qualitative factors are generally under-appreciated in investment decisions.

• Active management: Greencape uses fundamental analysis with its efforts focused heavily on an intensive visitation program encompassing all participants involved with the company, such as suppliers, customers and competitors.

• Investment opportunity: The Fund allows access to investment opportunities and diversification that individual investors usually cannot achieve on their own.

Risk level

High (SRM 6)

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 Greencape Broadcap Fund is an Australian equities fund which can take positions in companies of all sizes. It offers investors access to a diversified portfolio of large, mid and small cap Australian shares, providing the potential for capital growth above the S&P/ASX 300 Accumulation Index over the medium to long term.

Investment approach

Greencape is an active, 'bottom-up' stock picker. Whilst Greencape does not target any specific investment style and will invest in stocks displaying 'value' and 'growth' characteristics, its focus on a company's qualitative attributes will generally lead to 'growth' oriented portfolios. This is an outcome of its bottom-up process. As such, Greencape's investment style may be classified as 'growth at a reasonable price'.

Greencape's research is grounded in fundamental analysis, with its efforts focused heavily on an intensive visitation program encompassing all participants in a given supply chain (suppliers, customers, competitors, regulators, company officials, and offshore competitors). Piecing together information from various sources allows Greencape to develop proprietary insights and ultimately arrive at better informed and strong conviction investment decisions. Greencape's investment process involves assessing stocks against set criteria which are then ranked. This analysis ultimately condenses down to a single stock recommendation ranking.

How we invest your money

Investment universe and portfolio construction

The Fund's investment universe is companies and other securities listed on the Australian Securities Exchange (ASX), or those expected to list within the next six months. The Fund will invest in a combination of large, mid and small capitalisation stocks. The Fund can invest in listed equity securities, such as listed warrants and CHESS depository instruments, or hybrid equity securities such as convertible notes, redeemable preference shares and partly paid shares. The Fund may also invest up to 10% in stocks listed on any international stock exchange. Derivatives, such as futures and options, may be used to reduce risk or gain exposure to other types of investments. Greencape does not intend to gear the Fund through the use of derivatives or short selling. A small proportion is generally held in cash for liquidity purposes.

The final portfolio reflects the ratings as determined by the single stock recommendation ranking (as referred to in Investment approach'), whereby the largest active exposures in the portfolio are consistent with the stocks with the best rating by Greencape. This results in a portfolio of between 25 and 70 stocks. Portfolio construction guidelines limit the portfolio's exposure to any one stock or sector.

Strategic asset allocation ranges

• Securities: 85%-100%

• Cash: 0%-15%