Benefits of investing in VG1

An investment in VG1 aims to provide investors with:

access to a concentrated Portfolio that:

• will be predominantly comprised of Long and Short Positions in global listed securities;

• will be actively managed with a focus on capital preservation; and

• aims to generate superior risk adjusted returns over the long term (which the Manager and the Company consider to be a period of more than five years);

access to an Investment Strategy and an investment manager that, until the establishment of this Company, had only been accessible to wholesale investors with a $1 million minimum investment; and

benefit from an investment manager, VGI Partners Pty Limited, that:

• has deep expertise across equity markets;

• has, since inception in 2008, successfully implemented the same

• Investment Strategy now proposed for the Company; and

• has a strong and robust investment process.

About the Fund

In the Manager's view, superior investing must be viewed in terms of risk adjusted returns.

• "It is not simply about the return you generate, it is about the risk you took to make that return. - VGI Partners Investment Team

The Manager takes this risk adjusted return philosophy, and implements that through three key tenets of capital preservation, superior long term compound growth and concentration. These key tenets can be summarised as follows:

1. Capital preservation - The Manager believes that risk comes from not properly understanding your investments and places a great deal of importance on assessing downside risk. The Manager attempts to know as much about its investments as it can and believes that this knowledge is key in guarding against permanent loss of capital.
2. Superior long term compound growth - The Manager believes that great businesses purchased with a sufficient margin of safety' held for the long term are best placed to provide superior long term returns. The Manager believes that if a business performs well, the stock price will eventually follow. Accordingly, the Manager aims to invest long term in a relatively small number of business that it considers to be undervalued but that exhibit superior economic characteristics. The Manager believes that a buy and hold' strategy can promote compound growth as it minimises frictional costs (such as commissions, fees and taxes) and allows time for business performance to be translated into stock performance.
3. Concentration - The Manager believes that diversification preserves wealth, while concentration builds wealth. Accordingly, the Manager aims to invest in a relatively small number of high quality Long Positions. The Manager aims to be concentrated enough in its best ideas (i.e. the core Long Positions) so as not to dilute overall returns but hold enough Long Positions in order to provide an appropriate level of diversification.

Investment Overview

The Manager invests on a global basis, seeking out what it considers to be the best investment opportunities in any country with a legal system with which it feels comfortable. This is complemented with opportunistic short selling of low quality businesses that are typically considered by the Manager to be structurally challenged, poorly managed and materially overvalued. The Manager's philosophy is to employ a buy and hold' strategy for Long Positions and to generate long term compound returns.

The Manager believes that long term business success is achieved through operating where you have a competitive advantage and that in the business of investing, competitive advantage is obtained through superior knowledge and analysis. The Manager also believes that a long term investment horizon provides a competitive advantage in an investment world which is increasingly focused on the short term.

Investment objectives

The Company's investment objectives are to:

• provide long term capital growth through investing in a concentrated Portfolio, predominantly comprised of Long and Short Positions in global listed securities, actively managed with a focus on capital preservation; and

• deliver superior risk adjusted returns over the long term (which the Manager and the Company consider to be represented by an average compound annual return of 10% to 15% (after all fees and expenses) over a period of more than 5 years).

How we invest your money

The Company's Investment Strategy is to create a concentrated Portfolio, predominantly comprised of Long and Short Positions in global listed securities, actively managed with a focus on capital preservation.

The Company's Investment Strategy will be implemented by the Manager and is designed to capitalise on the Manager's disciplined investment approach and intensive research and review process. When assessing investment opportunities, the VGI Partners Investment Team, and the analysts that support them, will undertake a comprehensive bottom-up' approach in identifying, researching and valuing investment opportunities.

The Portfolio will be constructed in accordance with the Manager's investment philosophy which is based on the key tenets of capital preservation, superior long term compound growth and concentration. The Manager will seek to buy and hold' long term investments in what it considers to be great businesses that are not fully valued by the market. The Manager may also short sell securities which it considers to be of low quality and materially overvalued by the wider market.

The Company's Portfolio is expected to be concentrated on the long side. The Company will typically invest in between 10 to 25 Long Positions, of which 10 to 15 will be considered core Long Positions. The top five Long Positions within the Portfolio will represent on average between 40-50% of the Portfolio's NAV at any given time. The Company will hold a net cash buffer (that it may deploy quickly in any period of market or stock specific volatility). In addition, the Company will hold cash or cash equivalents when attractively valued securities cannot be found.

In the Board's view, the Company's Investment Strategy offers investors an alternative to more traditional long only' funds, which largely rely on a rising share market to generate returns.