Benefits of investing in the L1 Capital Long Short Fund Monthly Class

The Fund aims to provide investors with:

access to a Portfolio that:

• will be predominantly comprised of Long and Short Positions in Australian & NZ Securities;

• can comprise Global Securities of up to 30% of the Portfolio's gross exposure;

• aims to deliver strong, positive, risk-adjusted returns over the long term (being a period of more than 5 years); and

• will be seeking to preserve capital.

access to a manager, L1 Capital Pty Limited (Manager) that:

• has deep expertise across equity markets;

• has an exceptional network of contacts across all industries and extensive company visitation program;

• has a very stable investment team (no departures since inception);

• has significant personal investments made by its senior Investment Team staff alongside investors; and

• has a strong and robust investment process.

Investor suitability

An investor looking to achieve positive returns from equities, regardless of market conditions.

About the Fund

L1 Capital Long Short Fund is an absolute return fund that offers investors a highly diversified portfolio of long and short positions based on our fundamental bottom-up research process.

Investment objective

The objective of the Fund is to achieve strong, positive, risk-adjusted returns over the long term (in AUD terms). The return objective of the Fund is 10% net of fees and expenses p.a. over the long term.

Key assumptions and dependencies of the investment strategy

The success and profitability of the Fund will depend on a number of factors, including without limitation:

• the ability of L1 Capital to correctly speculate how investments will change in value over time;

• the market eventually recognising such value in the price of security which L1 Capital has identified is undervalued or overvalued, which may not necessarily occur;

• the value of the assets of the Fund which may be affected by company specific performances, the general economic environment, legislation or government policy or other factors beyond the control of L1 Capital.

How we invest your money

L1 Capital uses a fundamental, bottom-up research process to identify mispriced securities with the potential to provide attractive risk-adjusted returns. Through its fundamental research, L1 Capital's investment team identifies high quality companies with attractive valuations. High quality stocks should possess the following characteristics:

1. Passionate, honest & capable management
2. Attractive industry structure
3. Favourable operating outlook
4. Strong balance sheet

L1 Capital will also take short positions in companies that it believes have a combination of being overvalued, low quality and overgeared. In addition to buying or shorting stocks, equity derivatives may be used to hedge the portfolio's market exposure or to enhance returns (while limiting potential capital losses).

The fund may hold long or short stock positions (or equity derivatives) to profit from this mispricing. Securities will be listed (or expected to list) on a global stock exchange.

Other than securities and derivatives, the Fund will typically be invested in cash or cash equivalent instruments. The Investment Manager does not have allocation ranges or limits for the types of assets that it may invest in.

L1 Capital intends to seek to diversify the Fund's investments as it deems appropriate and consistent with the Fund's investment objective. L1 Capital also seeks to diversity the Fund's investments to manage the risks associated with short selling (see section 5.7 of the PDS for further discussion). The investment strategy of the Fund otherwise does not have any diversification guidelines or limits.