Benefits of investing in the Greencape High Conviction Fund

• Investment opportunity: The Fund allows access to investment opportunities that individual investors usually cannot access on their own. The Fund is a concentrated Australian equities portfolio holding between 15 and 40 stocks.

• Sound investment philosophy: Greencape's investment philosophy is grounded in the belief that markets are inefficient and that qualitative factors are generally under-appreciated in investment decisions.

• Active management: Greencape uses fundamental analysis with its efforts focused heavily on an intensive visitation program encompassing all participants involved with the company, such as suppliers, customers and competitors.

• Proven investment professionals: The Fund offers access to investment professionals who specialise in Australian equities.

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

The Greencape High Conviction Fund offers investors access to a highly concentrated portfolio of stocks. It can invest in Australian listed companies as well as up to 10% in stocks listed on any international stock exchange. We aim to fully hedge any international asset exposure back to Australian dollars.

The Fund can invest in listed equity securities or hybrid equity securities such as convertible notes, redeemable preference shares and partly paid shares. Derivatives, such as futures and options, may be used to reduce risk or gain exposure to other types of investments.

The largest active exposures in the portfolio are consistent with the stocks with the best rating by Greencape. Portfolio construction guidelines limit the portfolio's exposure to any one stock or sector. The result is a concentrated portfolio of between 15 to 40 stocks that we believe are likely to perform.

Greencape - the investment manager

Greencape is a specialist Australian equities fund manager based in Melbourne, Australia. Greencape's investment philosophy is grounded in the belief that markets are inefficient and that qualitative factors are generally under-appreciated in investment decisions. The investment team at Greencape is focused on, and committed to, delivering superior performance, directly aligning its interests with those of its investors.

How we invest your money

Greencape is an active, bottom-up' stock picker. Whilst Greencape does not target any specific investment style and will invest in stocks displaying value' and growth' characteristics, its focus on a company's qualitative attributes will generally lead to growth' oriented portfolios. This is an outcome of its bottom-up process. As such, Greencape's investment style may be classified as growth at a reasonable price'.

Greencape's research is grounded in fundamental analysis, with its efforts focused heavily on an intensive visitation program encompassing all participants in a given supply chain (suppliers, customers, competitors, regulators, company officials, and offshore competitors). Piecing together information from various sources allows Greencape to develop proprietary insights and ultimately arrive at better informed and strong conviction investment decisions. Greencape's investment process involves assessing stocks against set criteria which are then ranked. This analysis ultimately condenses down to a single stock recommendation ranking.

Investment universe and portfolio construction

The Fund's investment universe is companies and other securities listed on the Australian Securities Exchange (ASX), or those expected to list within the next six months. The Fund will invest in a combination of large, mid and small capitalisation stocks and may invest in listed equity securities, such as listed warrants and chess depository instruments, or hybrid equity securities such as convertible notes, redeemable preference shares and partly paid shares. The Fund may also invest up to 10% in stocks listed on any international stock exchange. Other derivatives, such as futures and options, may be used to reduce risk or gain exposure to other types of investments. Greencape does not intend to gear the Fund through the use of derivatives or short sell. A small proportion is generally held in cash for liquidity purposes.

The final portfolio reflects the ratings as determined by the single stock recommendation ranking (as referred to above), whereby the largest active exposures in the portfolio are consistent with the stocks with the best rating by Greencape. This results in a portfolio of between 15 and 40 stocks. Portfolio construction guidelines limit the portfolio's exposure to any one stock or sector.

Strategic asset allocation ranges

• Securities: 85%-100%

• Cash: 0%-15%