Benefits of investing in the Premium Asia Fund

The Fund is an actively managed portfolio consisting of fixed interest securities issued by companies in Asia and the Middle East. Potential benefits of investing in the Fund include:

• Regular income and potential for long-term capital growth

• Access to a prominent Hong Kong-based asset management

• company with a large and experienced investment team

• Active management aimed at maximising potential for returns over the medium and longer-term

Risk level

Medium

Investor suitability

The Fund may be suitable for investors who are looking for an investment that is consistent with the objective of the Fund listed above and are prepared to accept the risks of the Fund set out in Section 4 of the PDS.

About the Fund

The Premium Asia Fund aims to generate positive returns, consisting of both capital growth and income, over a three to five year period prior to accounting for movements in currency exchange rates. It will seek to achieve this objective by constructing a portfolio of securities which provides exposure to the Asia ex-Japan region. The Fund is denominated in Australian dollars and typically will not hedge its currency exposure.

About the Fund Manager

Premium China Funds Management Pty Ltd is the fund manager of the Fund. Premium China Funds Management is a boutique funds management group established in 2005 to bring Asia investment opportunities into the Australian market, in order to bridge the gap between investors' needs to internationally diversify and the suite of investment solutions available.

How we invest your money

The Fund aims to generate positive returns (consisting of both capital growth and income) over a three to five year period, prior to the effect of exchange rates, by constructing a portfolio of securities which primarily provide exposure to the Asia (ex-Japan) region.

The Fund is managed by Value Partners using a disciplined value-oriented approach supported by intensive, on-the-ground bottom-up fundamental research resulting in a portfolio of individual holdings, which are, in the view of Value Partners, undervalued and of high quality, on either an absolute or relative basis, and which have the potential for capital appreciation.

The Fund will primarily have exposure to the equity securities of entities listed on securities exchanges across the Asia (ex-Japan) region. The Fund may also gain exposure to:

1. entities listed on securities exchanges outside the Asia (ex-Japan) region, which have significant assets, investments, production activities, trading or other business interests in the Asia (ex-Japan) region, or which derive a significant portion of their revenue from the Asia (ex-Japan) region, and
2. unlisted instruments with equity-like characteristics, such as participation notes and convertible bonds.

Asset allocation range

• International listed equities: 0-100%

• International unlisted equities: 0-10%

• International corporate bonds: 0-5%

• Exchange-traded derivatives: 0-60%

• Over-the-counter (OTC) derivatives: 0-50%

• Cash and cash equivalent investments: 0-25%

• Convertibles: 0-10%

In addition, the combined exchange-traded and over-the-counter derivatives exposure cannot exceed 60% of the Fund's NAV.