Benefits of investing in WLE

An investment in WLE will provide Shareholders with access to:

• a highly experienced and active Investment Manager with expertise across the Australian equity market;

• Wilson Asset Management's research-driven, active and index unaware Investment Strategy focused on Australia's Large-cap listed companies;

• the LIC structure, which provides investors with a closed pool of capital, strong corporate governance and the ability to pay fully franked dividends; and

• a Board of Directors and Investment Manager with significant experience and expertise in funds management, Australian listed equities and corporate governance.

About the Fund

WAM Leaders provides investors with diversified exposure to a portfolio of undervalued growth companies within the S&P/ASX 200 Index and exposure to market mispricing opportunities in large-cap companies.

Investment objectives

The Company's investment objectives are to deliver a stream of fully franked dividends, to provide capital growth over the medium-to-long term and to preserve capital.

Investment philosophy

The investment philosophy of the Company will follow these broad principles:

1. Focus on the S&P/ASX 200 Index: The universe of potential investments for the Company is focused on Large-cap companies included in the S&P/ASX 200 Index, however it may invest in all securities quoted on the ASX or other exchanges, hold cash, and invest in the other permitted investments identified in Section 3.5. Notwithstanding the broad universe of permitted investments, the Company's Portfolio will be predominantly comprised of Long Positions in Large-cap companies included in the S&P/ASX 200 Index and cash.
2. Preference for undervalued companies: The Company's preference is to invest in entities where the securities are trading below Wilson Asset Management's valuation and are the subject of a Catalyst that, in the Investment Manager's view, has not yet been factored into the value of the entity and is likely to change the market's valuation of that entity over time.
3. Portfolio based and index unaware investing: The Company's priority will be to undertake investments on a portfolio basis. The Investment Manager will be index and benchmark unaware when selecting investments. While all investments will be considered on a case-by-case basis, the Company will usually refrain from taking a majority position in investee entities. This will assist the Company to diversify its investments and so reduce its exposure to abnormal falls in the market price of any single investment. The Company will seek to manage investment risk by spreading investments over a range of companies and industry sectors.
4. Capital preservation: Capital preservation is a key investment objective. The Company will hold cash unless it can identify appropriate investment opportunities. This could lead to the Company holding high levels of cash in the Portfolio from time-to-time. To ensure capital preservation, the Company may also hold bills of exchange or negotiable instruments from time-to-time.

How we invest your money

The following investment guidelines and parameters apply to the Investment Manager's implementation of the Investment Strategy:

• When fully invested, the Portfolio is expected to comprise an average of 20 to 50 securities and cash.

• The Company's Portfolio will be predominantly comprised of Long Positions in Large-cap companies included in the S&P/ASX 200 Index and cash. The Company will identify potential investments using its Market and Research Driven processes and will invest in securities outside this investment focus based on the Investment Manager's level of conviction in each security, as well as market movements from time-to- time. As an example, the Investment Manager may invest in securities that it considers are likely to become part of the S&P/ASX 200 Index over the short-to- medium term.

• An investment within the Portfolio will be reviewed if it obtains a position weighting of greater than 20% of the Value of the Portfolio.

• The Investment Manager expects that the average position weighting within the Portfolio for any one security will be 1% to 5% of the Value of the Portfolio. Actual weightings may be higher or lower and will be based on the Investment Manager's level of conviction in each security as well as market movements from time-to-time.

• There are no limits on the investments that may be made by the Investment Manager of the Portfolio based on industry sectors.

• The Company may from time-to-time seek to manage investment risk by taking short positions.

• Short Positions will not exceed 50% of the Value of the Portfolio (see Section 3.9 of the Prospectus).

Permitted investments

The Investment Manager may invest in:

• Australian and international securities;

• bills of exchange, negotiable investments and debentures; and

• cash.