Benefits of investing in QVE

An investment in QVE will allow investors to:

• diversify and complement their existing portfolio through exposure to a diversified and balanced portfolio of securities outside the S&P/ASX 20 Index and which is expected to be predominantly invested within the S&P/ASX 300 Index and which will be balanced across industry and stock exposure;

• access a much wider investment universe where the Manager believes greater opportunities for above-market returns exist;

• access a leading Australian boutique investment manager with a successful and award winning track record of investing in Australian and New Zealand equities since 1998;

• enjoy the benefits of a bottom-up research-driven investment process and the portfolio management techniques of the Manager that have been developed over the past 16 years;

• invest in a diversified portfolio seeking to deploy capital in securities that the Manager considers to be undervalued;

• access potential returns from an investment strategy that focuses on the Manager's assessment of a company's long-term value, regardless of its benchmark weighting;

• take advantage of a Portfolio with no performance fees motivating the Manager to focus on long-term capital growth, income and capital preservation; and

• have the benefit of oversight from a Board with strong experience in capital markets, corporate governance, investment and funds management, with a focus on investor returns, volatility, cost control and efficiency.

About the Fund

QVE is a listed investment company that will invest predominately in ASX listed entities outside the S&P/ASX 20 Index with the aim of providing long-term capital growth and income over a five year plus investment period.

The Company's Portfolio will be managed by the Manager. The Company will provide investors with the opportunity to invest in an actively managed portfolio and gain access to the investment experience and expertise of the Manager.

As a guide, the Company's Portfolio will be made up of a diversified portfolio of between 20 and 50 ASX listed securities outside the S&P/ASX 20 Index. The Company's Portfolio may also invest up to 5% in unlisted securities (so long as these securities are proposed to be listed on the ASX within 12 months), derivatives and cash securities.

The Company aims to achieve net returns over a five year plus investment horizon that are higher than the S&P/ASX 300 Accumulation Index excluding that part of the return that is generated by the securities comprised in the S&P/ASX 20 Accumulation Index.

How we invest your money

The Company's investment strategy is to create a diversified and balanced portfolio of ASX listed securities outside the S&P/ASX 20 Index and is expected to be predominantly invested in the S&P/ASX 300 Index. The investment strategy is intended to capitalise on the Manager's disciplined investment approach and intensive research and review process.

When assessing investment opportunities, the Manager's team of highly experienced analysts will undertake a comprehensive bottom-up' approach in identifying, researching and valuing quality entities. The Manager's approach in identifying opportunities for the Portfolio is systematic and disciplined and focuses on finding those entities that meet the investment criteria set by the Company and then determining an appropriate valuation for those entities. This is the same approach that has been applied by the Manager since 1998 in the management of its Retail Funds and has been successfully demonstrated by the Manager's ability to generate a reliable source of income and consistent risk adjusted outcomes for its clients (see Section 4.1 of the PDS for further details).

The Manager will broadly apply the same investment philosophy which it uses to manage its Retail Funds to the management of the Company's Portfolio. This philosophy will involve investing in entities which have an attractive entry price with four clear quality characteristics:

1. a competitive advantage over their peers;
2. recurring, predictable earnings;
3. a capable management team; and
4. the ability to grow over time.

Investment Guidelines

The following investment guidelines apply to the Manager's implementation of the Company's investment strategy:

• As a guide, the Company will hold between 20 and 50 ASX listed securities which fall outside the S&P/ASX 20 Index.

• Should a security move into the S&P/ASX 20 Index, the security must be disposed of within three years after the security is entered on the S&P/ASX 20 Index.

• Individual security positions should not exceed 5% of the Portfolio's NAV upon purchase. Following such purchase, individual security positions may be up a maximum of 7.5% of the Portfolio's NAV.

• Up to 25% of the Portfolio's NAV may be held in cash (and cash equivalents such as investment grade interest bearing debt securities). Cash is defined as deposits, term deposits and senior debt with less than 12 months to maturity.

• Derivatives including options may be used for hedging purposes, to generate additional income or to replicate underlying positions.

• Up to 5% of the Portfolio's NAV may be held in unlisted securities (so long as these securities are proposed to be listed on the ASX within 12 months).

• Short selling is not permitted.

• Borrowing is not permitted.