Benefits of investing in FSI

The benefits for investors in FSI include:

• Reduced share investment risk through a diversified investment portfolio;

• Professional, disciplined management of an investment portfolio;

• Access to available tax advantages of Listed Investment Company Capital Gains when available;

• Convenient and simple administration of your investment as your single holding in FSI gives you access to a multitude of stocks;

• Anticipated continued growth in fully franked dividend income;

• Access to a Dividend Reinvestment Plan;

• No fixed management fees - the Investment Manager is only remunerated on a performance basis;

• No entry or exit fee charged by FSI; and

• Easy access to information via FSI's registered office or web site or the Australian Securities Exchange.

About the Fund

Flagship Investments Limited (FSI) is an investment company providing investors with access to an expertly crafted quality portfolio of Australian growth companies managed by EC Pohl & Co Pty Ltd. EC Pohl & Co has a strong funds management investment team renowned for its stability, track record and sound investment process. EC Pohl & Co is paid a management fee based on performance and not a fixed percentage of the funds under management, ensuring the manager is focused on absolute returns to Shareholders.

EC Pohl's investment strategy centres on the view that investing in high quality business franchises with the ability to grow sales and earnings at rates above GDP will produce superior investment returns over the long-term. The portfolio of investments comprises investments in well managed companies whose operations cover a wide spectrum of business activities and is constructed from the perspective of a business owner and not simply by tracking the index weighting of various index component stocks. The resultant portfolio performance is monitored by FSI's Board of Directors.

The Company aims to maintain at least 90% of available funds in equity investments at all times with the balance in cash and equivalent. As a result, FSI is best suited to investors with a medium to long-term time horizon.

The investment objectives of FSI are to:

• Increase Shareholder wealth by achieving growth in capital and income over the medium to long-term without resorting to gearing;

• Preserve and enhance the NTA per share after allowing for inflation;

• Provide Shareholders with a fully franked dividend, which, over time, will grow at a rate in excess of the rate of inflation.

How we invest your money

It is FSI's current policy to manage the portfolio within the following guidelines:

1. Exposure to a minimum of 20 different companies to give the portfolio adequate diversification. 
2. The majority of shareholdings to be invested in companies that have a market value of at least $10 million; and 
3. FSI will aim to maintain more than 90 per cent of available funds in equity investments at all times. The remaining funds will be held in bank bills, similar cash securities and on deposit in the short term money market.

Permitted investments

FSI can invest in the following authorised investments:

• Any listed securities, including shares, units or notes which are redeemable, preference or deferred, fully or partly paid and any right, title or interest attached (including a right to subscribe for or convert to any such security whether listed on the ASX or not), and any security which EC Pohl & Co expects will be quoted on the ASX within a six month period from the date of investment;

• The taking and/or giving of options to purchase any investment and the taking and/or giving of options to sell any investment which is an Authorised Investment outlined in the first point above;

• The discount or purchase of bills of exchange, promissory notes or other negotiable instruments accepted, drawn or endorsed by any bank or by the Commonwealth of Australia, any State or Territory of Australia, or by any corporation of at least an investment grade credit rating granted by a recognised credit rating agency in Australia;

• Deposits with any bank or corporation declared to be an authorised dealer in the short term money market;

• Debentures, unsecured notes, loan stock, bonds, promissory notes, certificates of deposit, interest bearing accounts, certificates of indebtedness and any other evidence of indebtedness issued by any bank or by the Commonwealth of Australia, any State or Territory of Australia, or any governmental organisation, body or instrumentality of Australia, or, if authorised by the Directors, a corporation of at least an investment grade credit rating granted by a recognised credit rating agency in Australia; and

• If authorised by Flagship Investments Limited, contracts to underwrite or sub-underwrite issues or placements of any authorised investment outlined in the first bullet point above.

• Unlisted entities and much smaller companies up to 10% of the portfolio.

• FSI will aim to maintain more than 90 per cent of available funds in equity investments at all times. The remaining funds will be held in bank bills, similar cash securities and on deposit in the short term money market.