Benefits of investing in the Switzer Dividend Growth Fund

Investment Expertise

The Fund aims to provide Australian resident investors with tax effective income and long term capital growth by investing in a core portfolio of blue-chip Australian shares. The portfolio will be managed by an Investment Committee comprising Peter Switzer, Charlie Aitken, George Boubouras and Paul Rickard, which is supported by the investment management team at Contango. A description of the funds management experience is outlined in section 1 of the PDS.

Tax Effective Income

The Fund has been designed to help meet the needs of self-managed superannuation fund (SMSF) investors and other Australian residents looking for tax effective income with the potential for long term capital growth. The Fund expects that distributions will be franked to a material extent. Please refer to section 6 for information on the expected tax consequences of investing in the Fund.

Quarterly Distributions

The Fund will be investing in companies that have attractive and sustainable dividend streams and the capability to grow these dividend streams. These are expected to be fully franked or close to being fully franked. Accordingly, the fund expects that its distributions will be fully franked or close to being fully franked.

Distributions will be paid quarterly, in January, April, July and October. They will be based on the Fund's net income at the end of the distribution period, divided by the number of Units on issue. The payment of distributions depends on the income received by the Fund and is not guaranteed.

Distribution Re-Investment Plan

Holders can choose to have their distributions paid into an Australian dollar bank account, or alternatively, have their distributions automatically re-invested into additional Units of the Fund. Information on the distribution re-investment plan is available to investors on the Website.

Trading on the ASX Market

The Fund's Units have been admitted to trading status on the ASX Market under the AQUA Rules, ASX Code SWTZ. This means that Holders can buy or sell Units on the ASX Market through a stockbroker or share trading account. Investors are also able to see the prices at which other investors are prepared to exchange Units.

Settlement of Units traded on the ASX Market will occur via the CHESS settlement service on the second business day after the trade date.

Track Your Investment in Real Time

The Responsible Entity will calculate and publish the Fund's Net Asset Value (NAV) per Unit each ASX Trading Day after the close. This will be published on the Website daily.

During each ASX Trading Day, an indicative NAV (iNAV) is published to take into account any movement of the prices of those securities that comprise the Fund's investment portfolio. The iNAV will be published on our Website.

The NAV or iNAV per Unit is calculated by deducting the value of its liabilities (including fees) from the total value of the Fund's assets, and dividing this number by the number of Units on issue.

CHESS Statements

Holders will receive a CHESS holding statement showing the numbers of Units that they own. Holders will receive an updated CHESS holding statement upon the occurrence of any changes to their holding.

Regular Reporting

Switzer Asset Management will provide monthly Fund performance updates to investors via the Website.

The Responsible Entity intends to follow ASIC's good practice guidance for continuous disclosure and in so doing will post copies of continuous disclosure notices on its Website. Unitholders are encouraged to check this Website regularly for such information. If this practice ceases, the Responsible Entity will notify Unitholders.

A Unitholder has the right to obtain the following documents from the Responsible Entity free of charge:

• the annual report most recently lodged with ASIC in respect of the Fund;

• any half year financial report lodged with ASIC in respect of the Fund after the lodgement of the annual financial report; and

• any continuous disclosure notices issued in respect of the Fund.

One Low Management Fee

The Fund pays a Management Fee of 0.89% p.a. (including GST) to the Responsible Entity. The Management Fee covers the management of the Fund and its assets, and Fund outgoings including administration, accounting, audit and registry fees and expenses. There are no performance, establishment or contribution fees. Investors may incur brokerage costs in purchasing or selling Units on the ASX Market.

About the Fund

The Switzer Dividend Growth Fund (SWTZ) aims to provide investors with tax effective income and long term capital growth by investing in a core portfolio of blue-chip Australian shares.

The portfolio is managed to deliver capital growth, while providing investors with an attractive income stream paid quarterly that is franked to the maximum possible extent.

The Fund is a simple to use, low cost vehicle that gives investors access to some of the most experienced investment professionals in Australia such as Peter Switzer, Charlie Aitken and Paul Rickard.

Investors can access the fund through one easy trade on the ASX using the ticker code SWTZ.

Investment Strategy

The Fund intends to invest in a portfolio of quality, high-yielding listed Australian shares with an emphasis on companies that are paying fully franked dividends and which have the ability to grow these dividends over time.

The Responsible Entity intends to use a top down business cycle' approach, where the research effort focuses on forecasting future domestic and global economic conditions and assessing their impact on the performance of sectors and stocks. These relationships are used to guide decision-making as to the size, allocation to cash and the sector biases within the Fund's investment portfolio.

The top-down approach is complemented by a disciplined 'bottom up' stock selection process, which involves quantitative and qualitative fundamental analysis in respect of each of the stocks identified for potential investment.

When constructing a diversified portfolio, the Responsible Entity also considers the Fund portfolio's overall risk positions including stock, sector and thematic risks.

How we invest your money

The Fund's investment portfolio is expected to comprise between approximately 30 and 50 stocks, drawn from within the largest 200 companies (by market capitalisation) listed on the ASX. These companies will typically have:

• sound balance sheets;

• desirable dividend streams and the capability to grow dividends while maintaining a sustainable payout ratio;

• dividends that are fully franked or close to fully franked;

• moderate to low volatility; and

• strong secondary market liquidity on the ASX.

Typical asset allocation weightings will be as follows:

• Australian shares: 80-99%

• Cash: 1-20%

In times of increased market volatility, the Responsible Entity may increase the weighting of cash to 50%. The Fund may also use derivatives, including futures, options and index exchange traded funds, to manage cash flow and investment risk. However use of derivatives by the Responsible Entity will be limited to a counterparty credit exposure of no more than 5% of the total Net Asset Value of the Fund. The derivatives will not be used for leveraging purposes at any time.

When considering corporate actions, including off-market buybacks that affect securities held by the Fund as part of the investment portfolio, the Fund will make elections and exercise rights in a manner that seeks to optimise the outcome for Holders who are paying tax at rates below the standard company tax rate - for example, 0% or low rate taxpayers.