Benefits of investing in The Montgomery Fund

There are many benefits of investing in The Fund. Some of the significant benefits include:

• the potential to generate capital growth over the medium to longer term as well as income from its investment in listed stocks;

• access to the investment expertise of Montgomery;

• access to a proprietary approach to fundamental research o access to a high conviction portfolio that individual investors usually cannot achieve;

• generally, you can add to or withdraw your investment daily;

• the right to receive any distributions we make from The Fund; and

• having clear legal rights through a robust corporate governance structure.

Risk level

High

Investor suitability

The Fund is generally suited for persons seeking long term capital growth and those who can tolerate a high level of risk.

About the Fund

The Montgomery Fund is an open-ended unit trust with a minimum initial investment of $25,000.

Established in August 2012, The Montgomery Fund aims to achieve long term capital and income growth through investment in the shares of Australian and New Zealand businesses.

Using our robust and proprietary applications, the Montgomery Investment Management team attributes a daily rating to every listed company for Quality and Value. Only businesses demonstrating the brightest prospects - and available for purchase at what we regard as a discount to intrinsic value - will be considered for inclusion in The Montgomery Fund portfolio.

Unlike funds typically managed by much larger institutions, The Montgomery Fund is not forced to be fully invested at all times. A meaningful proportion of The Montgomery Fund's portfolio may be allocated to cash in order to safeguard its market value.

How we invest your money

The Fund will generally hold shares listed on the ASX and NZX and some cash. The portfolio allocation will generally be:

(Assets: Range / Typical)

• Australian and New Zealand shares: 70%-100% / 85%

• Cash: 0%-30% / 15%

Montgomery adjusts the investment mix within the target ranges above. The "typical position is where Montgomery aims to have The Fund invested given a fairly valued investment market. All other things being equal, the "typical position would be the investment mix of The Fund.

The cash component of the portfolio may be allowed to build to a level of 30% or more in periods when the Montgomery investible universe is unappealing in terms of margin of safety or in anticipation of extreme market dislocation. Montgomery may also contemplate protecting the value of The Fund by, for example, buying put options over the S&P/ASX 200 Index. Remember the investment mix can change within the ranges significantly and sometimes quickly. Ask your adviser or contact us for the latest investment mix and size of The Fund.