Benefits of investing in WIC

• The Company has been established to provide investors with an exposure to a portfolio of assets that are intended to show consistent positive returns.

• Whilst the majority of investments will be sourced from the Australian equity market, the Portfolio is intended to produce the desired returns regardless of the general direction of that market.

• Euroz Securities focuses on coverage of Western Australian based companies that are generally outside the Top 100 stocks on ASX. The Board considers that this particular niche can offer the range of investment opportunities required to achieve the Company's performance objectives.

About the Fund

Westoz Investment Company Limited (WIC.ASX) is a listed investment company based in Perth and established in 2005.

The Company's objective is to generate a positive return over the medium to long-term, regardless of the movements of the broader share market, from an actively managed portfolio of small to mid cap ASX listed investments and provide shareholders with a consistent stream of dividends.

Stocks selected within the portfolio are generally outside the Top 100 and will typically have a connection to Western Australia whether it be through their assets, operations and/or management.

The Company's portfolio is managed by Westoz Funds Management Pty Ltd (AFSL 285607), a 100% owned subsidiary of Euroz Limited. Euroz Limited is invested alongside shareholders via a 27% shareholding.

Investment philosophy

Westoz's investment philosophy is based on the premise that financial markets and individual securities can and do deviate away from fair value. By detailed analysis of a range of valuation parameters, active management of a portfolio of equities can be used to generate an acceptable level of absolute return over a range of time frames.

Due to the relative levels of research coverage by the market, Westoz also believes that companies outside of the Top 100 will experience greater deviation from fair value.

A medium to long-term investment horizon is required and large non-investment driven cash flows can adversely impact long term performance.  Hence, a listed investment company structure is the most appropriate form of the investment vehicle.

How we invest your money

Westoz has appointed the Manager to undertake the management of its investment portfolio in a manner consistent with its Investment Philosophy.

Westoz will mainly invest in listed securities. From time to time, a portion of the Portfolio may be held in short term cash deposits. Due to the geographic location of the Manager, it is anticipated that the majority of investments will have a connection to Western Australia. Derivatives may be used where considered appropriate.

The Manager will use a variety of sources to generate investment ideas. A range of parameters are used to assess value, but a key input to the analysis is the expected growth potential of the company. After completing the necessary analysis, a set of stock recommendations will be presented to the Manager's Investment Committee.

The Investment Committee will review the recommendations and put them in the context of the overall equity environment. It will then review the Company's current Portfolio in light of the information presented to it and adjust holdings in the Portfolio to ensure the targeted performance is achieved.

The Investment Committee can also use a variety of instruments to achieve its performance objectives. Where they are allowed, short positions may be held where a compelling reason exists. Derivatives may also be used to generate additional income in the Portfolio or to protect the Portfolio from market downturns.

Permitted investments

Subject to the conditions of the Australian Financial Services licence held by the Manager, the Manager may invest in the following types of investments:

• Listed Securities and unlisted securities;

• Rights to subscribe for or convert to securities (whether or not such rights are tradeable on a securities exchange);

• Securities for the purpose of short selling;

• Warrants or options to purchase any investment and warrants or options to sell any investment permitted under the Management Agreement;

• Discount or purchase of bills of exchange, promissory notes or other negotiable instruments accepted, drawn or endorsed by any bank or by the Commonwealth of Australia, any State or Territory of Australia, or by any corporation of at least an investment grade credit rating granted by a recognised credit rating agency in Australia;

• Deposits with any bank;

• Debentures, unsecured notes, loan stock, bonds, promissory notes, certificates of deposit, interest bearing accounts, certificates of indebtedness issued by any bank or by the Commonwealth of Australia, any State or Territory of Australia, or any Australian government authority, or, if authorised by its Directors, a corporation of at least an investment grade credit rating granted by a recognised credit rating agency in Australia;

• Units or other interest in cash management trusts; and;

• Any other investment, or investment of a particular kind, approved by the Board in writing.