The Fund focuses on generating a regular income while aiming to preserve capital and liquidity. Antares does this by actively managing a diverse portfolio of primarily high credit quality fixed income securities and cash, while carefully managing exposure to rising interest rates.

The Fund aims to provide regular income and a return (after fees) that exceeds the Benchmark over rolling three year periods.

Benefits of investing in the Antares Income Fund

Aims to provide regular income

Antares aims to deliver a regular income to investors, paid on a quarterly basis, by earning interest from investments in cash and fixed income securities.

Access to your money

Antares seeks to meet investors' needs to make withdrawals by investing primarily in securities that can be bought and sold on a daily basis, in a normal market environment.

Emphasis on capital preservation

Antares aims to preserve your capital by:

• investing primarily in investment grade securities that have a low risk of default; and

• limiting the potentially negative effect of rising interest rates on your capital. Antares manages the Fund's sensitivity to rising interest rates by targeting a short duration profile.

Access to fixed income opportunities

The Fund has flexibility to invest in fixed income securities in Australian and overseas markets. It provides access to fixed income investment opportunities and diversification not usually available to individual investors.

Protection against inflation

To protect investors against rising inflation and higher interest rates, the Fund focuses on investing in floating rate securities. Interest paid on these securities is linked to changes in cash rates.

Potential for better returns than cash

By applying an active investment approach, Antares aims to achieve returns, after fees, that are above the Bloomberg AusBond Bank Bill Index (Benchmark) over rolling three year periods.

Antares' proven investment expertise

Antares' experienced fixed income team have managed cash and fixed income funds since 1990. Antares manages over $28.5 billion (at 30 June 2019) across a range of cash and fixed income strategies.

Antares' investment approach has been effective in many challenging investment conditions. This process is explained in section 5 of the PDS.

Risk level

Low

Investor suitability

The Fund may be suited to you if you:

• are seeking regular income from your investment want to preserve your capital

• want to invest in a diversified portfolio of cash and fixed income securities that is managed by a specialist investment manager

• are seeking active management to generate returns and manage risk, and

• understand there can be some fluctuations in income and the value of your investment.

About the Fund

The Fund focuses on generating a regular income while aiming to preserve capital and liquidity. Antares does this by actively managing a diverse portfolio of primarily high credit quality fixed income securities and cash, while carefully managing exposure to rising interest rates.

The Fund aims to provide regular income and a return (after fees) that exceeds the Bloomberg AusBond Bank Bill Index over rolling three year-periods.

In a low interest rate environment, traditional income investors face a number of challenges in seeking innovative ways of generating income returns without giving up the attractive qualities of cash investments.

With lower cash rates, term deposits are becoming far less attractive. Traditional fixed income products with exposure to bond investments may underperform if interest rates rise.

By targeting a longer time horizon and utilising active management, Antares Fixed Income believes there is an opportunity for investors to get a better outcome from their defensive investments, without taking on excessive risks.

The Antares Income Fund aims to do this by investing in a diverse range of cash, domestic and global fixed income securities depending on the prevailing economic environment.

How we invest your money

In an unpredictable and constantly changing world, Antares actively manages the Fund using a five step macro research process (explained below) to identify economic and industry trends. This top down process is combined with analysis of the interest rate yield curve and bottom up credit research to manage risk and identify the most attractive securities that it believes will best achieve the Fund's objective.

1. Macro analysis: The investment team develops a view of the global economy and its likely impact on the Australian economic outlook.
2. Economic scenarios: A range of medium-term (six months) economic scenarios are developed, based on the investment team's interpretation of current economic conditions and possible future economic outcomes.
3. Scenarios asset class pricing: The investment team assesses how each asset class is likely to perform in each of the scenarios developed. And determines a fair price for each security.
4. Rank scenarios: The investment team probability weights each economic scenario based on how likely it is to occur. These scenarios form the basis of the Fund's investment strategy.
5. Implementation: Having identified where they believe the best value lies, Antares implements the Fund's active positions within the asset allocation ranges (below). The Fund has a core allocation to enhanced cash and adjusts exposure to satellite strategies as the market outlook or conditions change.

Indicative asset allocation and investments

• Fixed income securities issued in Australian dollars: 0 - 100%

• Fixed income securities issued in foreign currencies: 0 - 50%

• Cash and short-term securities: 20 - 100%

The Fund may invest in a broad range of securities and derivatives directly or through funds managed by Antares, including:

• government and government-related bonds corporate bonds

• mortgage-backed and asset-backed securities hybrid and convertible securities

• cash and short-term securities, and

• interest rate and credit derivatives including swaps, options and futures.

Large foreign currency exposures are hedged into Australian dollars.