Benefits of investing in RYD

An investment in RYD will allow investors to:

• Access the Manager's successful investment philosophy and process, which has consistently delivered outstanding results for its advised investors.
• Benefit from the Manager's rigorous bottom-up securities selection process which has benefitted the Managers client's since its incorporation in 2008.
• The experience and investment knowhow of Manager's key investment professionals, which enables it to find investment opportunities where others may not. The Manager's investment team is very small enabling it to run highly concentrated high conviction investment ideas. The Manager spends an extensive amount of time visiting companies, their management and industry contacts as it builds its investment thesis and then continuingly and consistently repeats this process while managing the investment positions within the portfolio.
• The Portfolio will be actively managed to vary the Portfolio's exposure to equity market risk, and to enhance the value of the Portfolio when opportunities arise.
• Access to pre Initial Public Offerings (IPO) opportunities that would ordinarily not be available to investors.
• Access to investments not broadly covered by the investment or stockbroking community.
• Carefully managed income trades - the Portfolio will aim from time to time generate distributable income.
• Transparency with semi-annual updates and the invitation to attend and ask questions at the Company's Annual General Meeting.
• Flexibility and control by investing in an investment that can be bought and sold on the ASX.
• For SMSFs - provides actively managed exposure to listed Australian securities designed to provide medium to longer term capital growth and the potential for future income as the portfolio matures over time.

About the Fund

Ryder Investment Management Pty Limited, AFSL 328 971 is a Sydney based boutique fund manager pursuing a high conviction long only value style investment strategy specialising in small to mid-cap Australasian equities.

Our approach is different to most investment managers - we invest for the medium to long term, are focused on generating strong absolute returns first and foremost, are very patient and are willing to work with management to unlock value. A key foundation to our approach is to minimise mistakes, ignore the crowd and back our judgement.

The Company's primary investment strategy is to create a highly concentrated (10 - 20 securities) and actively managed portfolio of Australian securities with typically a small cap' focus. The small cap focus refers to a typical preference for securities listed on Australian exchanges with a market capitalisation less than those entities that constitute the S&P/ASX 100 Index. The allocation to micro, mid cap and even large cap securities, as well as any pre-IPO securities, will be opportunistic in nature. The investment strategy will take a high conviction approach, with a flexible mandate, offering a deep value and growth focus for listed securities. Whilst the portfolio will be concentrated in typically 10-20 securities, the Manager may diversify the portfolio across industry sectors. Up to 50% of the Portfolio's net asset value may be held in cash, deposit products and senior debt with less than one year to maturity. The level of cash, deposit products and senior debt directly or indirectly held within this limit will be determined by the attractiveness (based on the value) of available securities. The Manager expects that maximum levels of cash, deposit products and senior debt directly held will only be approached as securities markets become expensive and/or there is a lack of suitable equities available for the Manager to invest.

How we invest your money

The Manager will undertake fundamental, in-depth, bottom-up research to identify attractively valued securities using the Manager's disciplined investment process. The fundamental bottom- up analysis utilised by the Manager is an investment process that focuses on identifying the intrinsic value of a company and its securities through a thorough quantitative and qualitative investment process.

The Manager's investment process first assesses companies on seven key investment criteria:

1. Discount to intrinsic value
2. Quality of earnings (annuity qualities)
3. Balance sheet strength - conservative net debt
4. Quality of business
5. Quality of management
6. Clear and observable business plan
7. Identifiable value catalysts

Based on the above criteria, an investment thesis is constructed for each investment opportunity. The Manager tests the robustness of each investment thesis internally before arriving at an internal scoring system / recommendation ranging from 0 (sell/ pass) through to 5 (high conviction buy / maximum capital allocation).

Investment strategy

The Company will hold an actively managed portfolio of typically 10-20 securities, underpinned by the Manager's fundamental, in-depth, bottom-up research. The Manager aims to generate superior, above benchmark returns by investing in a collection of special investment situations of unique quality securities at attractive prices, which are identified using the Manager's investment process and experience.

The key investment guidelines for the Manager's implementation of the Company's investment strategy are:

• 50-100% of the Portfolio's net asset value in listed securities. Typically, these securities will have a micro to small cap bias;

• 0-50% of the Portfolio's net asset value in cash, deposit products and senior debt.

In addition, the Portfolio may hold 0-20% of the Portfolio's net asset value in unlisted securities, provided the securities are proposed to be listed within 12 months.