Benefits of investing in the Alphinity Australian Equity Fund

• Active management: investments are actively managed to focus on generating capital growth.

• Experienced investment team: access to investment professionals who specialise in Australian equities.

• Robust investment process:application of Alphinity's comprehensive investment approach that has proven successful across different market cycles.

• Returns: aims to provide consistent risk-adjusted returns across different market cycles.

• Capital growth: potential for capital growth through the Fund's exposure to Australian investments.

Risk level

High

Investor suitability

The Fund is intended to be suitable for investors who are happy to invest for at least five years, are seeking high levels of return and are comfortable with high volatility, including the possibility of periods of negative returns.

About the Fund

A broad Australian equities portfolio holding 35-55 stocks.

The Alphinity Australian Equity Fund holds a diversified portfolio of Australian stocks listed on the ASX.

Our investment approach is based on a combination of strong, fundamental, bottom-up research and targeted quantitative inputs aimed specifically at identifying mispriced companies likely to deliver earnings in excess of that expected by the market. The combined output of this fundamental and quantitative research is brought together by our Composite Research Model (CRM).

Alphinity - the investment manager

Alphinity is an equities investment manager established in 2010. It is majority owned by its four founding principals, who have worked together since the early 2000s.

Alphinity aims to deliver consistent outperformance for its clients by investing in quality, undervalued companies which its research concludes are in, or about to enter, a period of earnings upgrades. Its process for identifying such companies includes a distinctive combination of fundamental analysis and quantitative inputs.

How we invest your money

Alphinity is an active, core Australian equities manager that believes a company's earnings ultimately will drive its share price over time. Alphinity believe the market is typically inefficient at accurately pricing future consequences of new information that will affect company earnings, therefore clearly identifiable characteristics exist for companies whose earnings ability is likely to be under (or over) estimated by the market, allowing an investor to exploit this inefficiency to create outperformance.

Alphinity's investment approach is based on a combination of strong fundamental bottom-up research and targeted quantitative inputs aimed specifically at identifying mispriced companies likely to deliver earnings in excess of those expected by the market. The combined output of this fundamental and quantitative research is brought together in Alphinity's proprietary Composite Research Model (CRM).

The CRM is used throughout the investment process and enables the investment team to objectively compare companies across, as well as within, sectors in addition to identifying research priorities, providing both buy' and sell' signals and helping to construct portfolios that aim to offer a high level of return for a given level of risk.

Investment universe and portfolio construction

The investment universe is comprised of Australian stocks listed on the ASX. The final portfolio will usually be made up of between 35 and 55 stocks that will be selected based on their CRM score and the fundamental analysis by the investment team. Portfolio construction guidelines limit the Fund's exposure to any one company or sector.

The Fund can also invest in listed equity securities, chess depository interests or hybrid equity securities such as convertible notes, redeemable preference shares and partly paid shares. It can also enter into underwriting agreements relating to shares able to be held by the Fund provided there are sufficient liquid assets in the Fund to cover such obligations. Alphinity does not intend to gear the Fund through the use of derivatives.

The Fund aims to be fully invested.

Strategic allocation ranges

• Securities: 90-100%

• Cash: 0-10%