Benefits of investing in FOR

• FOR specialises in small, unusual opportunities that many investors miss. Our investing approach means the Australian Shares Fund is unique in a number of ways:

• By using a concentrated, selective, flexible approach we have been able to deliver superior long-term returns.

• Due to our concentrated, value driven approach the returns we deliver are unlikely to be correlated with any particular index, benchmark or asset class in the short-term.

• We aim to maximise the Fund's expected return without taking needless risks. Avoiding the risk of permanent capital loss is paramount.

• The Fund is permitted to invest in any ASX-listed security and hold unlisted securities (up to 10%) and as much cash as we deem appropriate. This allows us to be patient, nimble and seek value wherever it arises.

• The investment mix within the portfolio can change significantly and sometimes quickly. Ask your adviser or contact us for the latest investment mix and the size of the Australian Fund.

About the Fund

The Fund targets securities that Forager believes are undervalued and invests predominately in securities listed on the ASX. Its investment objective is to outperform the S&P/ASX All Ordinaries Accumulation Index over a rolling 5-year period and its goal is to produce superior long-term returns from a select number of underlying investments, irrespective of short-term price movements.

Fund characteristics

• Concentrated portfolio of ASX-listed stocks

• Long track record in identifying unloved gems

• Restricted fund size allows investment in smaller businesses

• Strong focus on managing portfolio risks

• Listed on ASX as a Listed Investment Trust (LIT)

• Structure offers Forager flexibility in distressed markets

About Forager

With approximately $315 million of funds under management and a focus on long-term investing, Forager Funds is a unique Australian asset management company.

Following a strong nine-year track record, Forager is a sustainable business but is nimble enough to invest in smaller listed companies not accessible to many investment managers.

The company is majority owned by staff. Forager's shareholders support the desire to place performance before revenue. That means capping the size of funds before too much money becomes an impediment to performance.

Key investment staff are strongly aligned with investors through co-investment and / or equity in the Forager business.

How we invest your money

The Manager's process of putting together a portfolio of undervalued businesses is accomplished by analysing securities on an individual basis to determine whether they are attractively priced (a "bottom-up approach). This contrasts with other investment approaches such as using macro- economic predictions to determine a portfolio weighting to certain investment themes (a "top-down approach) or processes that pay consideration to index weighting (a "benchmarking approach). Of hundreds of individual securities analysed by the Manager, only a small number will make it through to become actual portfolio candidates.

Investment analysis

Preliminary findings are presented to the research team and an initial decision is made - based on the prospective attractiveness of the opportunity - as to whether to conduct a full analysis or not. Once a potential investment opportunity has been identified, it is put through a rigorous investment analysis framework that analyses the competitive landscape, business strategy, management team, historical financial record, balance sheet structure, threats and opportunities and ultimately, the security valuation. A security that offers an attractive return relative to the risk of capital impairment is added to the list of candidates.

Investment ideas are always founded on internal research, although external research is read and referenced if useful. The investment thesis must be internally understood and backed by the investment team's analysis.

Portfolio analysis

Whether or not to add a candidate to the Portfolio and how much of the Portfolio to invest in any one idea depends on:

• The risk/reward trade-off relative to other candidates and existing securities in the Portfolio;

• The perceived risk correlations between the individual securities and the existing Portfolio; and

• The impact on the overall risk and expected return of the Portfolio. A security is only added to the extent it increases the expected return and/or reduces the overall assessed portfolio risk.

Permitted investments

The Fund will typically invest in ASX listed securities, unlisted securities, and Australian denominated cash. The Fund will invest no more than 10% of the Portfolio in unlisted securities and will typically only do so if a security is expected to become listed in the future or was listed at the time of purchase but has delisted. There is no restriction placed on the proportion of the Portfolio that is held in cash at any given time and the proportion of the Portfolio held in cash could be higher than usual at times when there is a lack of attractive investment opportunities, or following the issue of a large number of Units.