Benefits of investing in WMI

The Company, a listed investment company (LIC), will provide investors access to:

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

• Wilson Asset Management's absolute bias1, bottom-up2, benchmark unaware3, fundamental investment methodology;

• research-driven and market-driven investment processes;

• a LIC focused on investing in listed entities with a market capitalisation of less than $300 million at the time of acquisition;

• 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 Microcap provides investors access to a portfolio of undervalued micro-cap growth companies with a market capitalisation of less than $300 million at the time of acquisition. WAM Microcap also provides exposure to relative value arbitrage and market mispricing opportunities. WAM Microcap's investment objectives are to deliver a stream of fully franked dividends, provide capital growth over the medium-to-long term and preserve capital.

Investment principles

The Company's investment principles are to:

• Focus on Micro-cap companies;

• Invest in undervalued growth companies;

• Utilise a portfolio based and index unaware investment

• methodology; and

• Preserve shareholders' capital.

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 60 securities and cash.

• The Company's Portfolio is expected to predominantly comprise of ASX listed entities with a market capitalisation of less than $300 million at the time of acquisition and cash. The Company will invest outside the Australian listed micro-cap focus based on the Investment Manager's level of conviction in a particular security.

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

• An increase in an entity's market capitalisation to above $300 million following acquisition will not automatically cause that investment to be reviewed.

• 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 or geography.

• The Investment Manager 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 without prior Board approval (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.