Benefits of investing in the NovaPort Microcap Fund

• Diversified portfolio: Exposure to microcap companies spanning Australia and New Zealand - a portfolio of diversified investment opportunities that individual investors usually cannot access on their own.

• Proven investment professionals: NovaPort are an experienced, stable investment team with over 44 years of combined experience between the co-Portfolio Managers.

• Propriety research: NovaPort conduct in-depth company analysis before considering these companies to form part of the Fund's investment universe.

• Capital growth: Potential for capital growth over the long term through exposure to a broad range of microcap companies.

• Active management: NovaPort act on market opportunities with allocations across multiple industry sectors to take advantage of growth segments.

Risk level

High

Investor suitability

The Fund is intended to be suitable for investors who are happy to invest for at least seven 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 NovaPort Microcap Fund is a multi-award winning fund designed for investors who want to access capital growth and diversified returns via microcap companies. The Fund's investment universe is a diversified portfolio of shares in primarily listed Australian companies with a market capitalisation of less than A$300 million at the time they are first acquired.

As an active investor, our approach to managing the Fund is based on paying a reasonable price for companies with an improving profit growth profile, or are materially undervalued on other factors, while paying particular attention to the underlying quality of company earnings and management.

Investment approach

NovaPort's research effort is the foundation on which its investment process is built. To support its analysis of microcap companies, NovaPort conducts in-depth proprietary research through field visits and interviews with management and staff of the target companies, its competitors and the wider market including their vendors, customers and suppliers. NovaPort investigates comparable offshore industries and compiles research from a variety of other sources including government and industry bodies. Additionally, NovaPort studies demographics, industry trends, competitive forces operating within an industry, the ability of an industry to grow within an economy, and the ability of a company to grow within an industry. NovaPort also take into account the broad domestic and international economic climate. It applies a disciplined, research based process to its management of the Fund's investments.

How we invest your money

The Fund invests in a diversified portfolio of shares, primarily listed Australian companies with a market capitalisation of generally less than A$250 million at the time they are first acquired on behalf of the Fund (microcap companies'). Up to 10% of the Fund can be invested in unlisted companies, usually those that intend to list within 18 months. Up to 10% of the Fund can be invested in New Zealand securities. The Fund may also invest in cash and hybrid securities such as convertible notes, redeemable preference shares and partly paid shares. NovaPort does not intend to gear the Fund through the use of derivatives. The Fund will limit its usage of derivatives to 10% of the Fund's net asset value.

The final portfolio reflects NovaPort's assessment of the best bottom-up' ideas generated, resulting in a portfolio of between 25 and 65 securities, which meet the Fund's investment criteria. Portfolio construction guidelines are applied to ensure that the final portfolio meets the Fund's investment objectives, is diversified across different industries and sectors and is managed within a risk-controlled manner. The guidelines include limits to the Fund's exposure to any one company or industry sector.

Strategic asset allocation ranges

• Securities: 80%-100%

• Cash: 0%-20%