Benefits of investing in the Monash Absolute Investment Fund

Investing in the Fund gives investors access to:

• An exposure to the Australian share market with an Absolute Return Focus;

• An opportunity to make opportunistic returns from a limited exposure to overseas equities;

• An opportunity to partake in an investment that would ordinarily be difficult for individual investors to employ;

• Enhanced potential for diversification from traditional market exposures; and

• A strategy with an investment team and a proven track record.

Monash Investors are experienced investment management professionals:

• With extensive experience in funds management; and

• Possess a robust risk management framework.

Aside from Monash Investors, the Fund is complemented by well-resourced service providers:

• Link Fund Solutions Pty Limited (Administrator);

• Morgan Stanley & Co International plc (Prime Broker/Custodian); and

• Perpetual Corporate Trust Limited (Unlisted Equities Custodian of the Fund).

Investor suitability

The Fund is suitable for investors with an investment horizon of five years or more.

About the Fund

The Fund is a long/short Australian equity fund. It has a Long Bias and an Absolute Return Focus. It aims to achieve a targeted positive return of double digits per annum after fees over a full Market Cycle, while seeking to avoid loss of capital over the medium term. There is no guarantee that this objective will be achieved and this objective is only an indication of the intended target return the Fund is seeking.

The Fund seeks to implement the investment strategy by investing in a 6 diversified portfolio of predominantly Australian equities (long and short), with overseas assets expected to average no more than 5% over time.

The investment strategy is Benchmark Unaware and there is no predetermined asset allocation; rather, the Fund only invests when suitable opportunities are identified. As such, asset exposures may vary significantly over time and without notice.

The Fund seeks to only invest in compelling opportunities. To identify these investment ideas, Monash Investors primarily employs fundamental, bottom-up company research and the judgement of its experienced portfolio managers.

How we invest your money

The Fund seeks to implement the investment strategy by investing in predominantly Australian listed equities (long and short), with international listed equities expected to average no more than 5% over time. The Fund may also invest in Australian Unlisted Equities, exchange traded and OTC derivatives, cash and cash equivalent investments.

The Fund seeks to only invest in compelling opportunities. To identify these investment ideas, Monash Investors primarily employs fundamental, bottom-up company research and the judgement of its experienced portfolio managers.

Monash Investors believes that a diversified portfolio of compelling investments is likely to provide a strong annual return over the investment cycle.

All assets of the Fund (with the exception of international listed equities) will be located in Australia. The Fund's Australian domiciled assets will be denominated in Australian dollars. The Fund's international assets will be denominated in the currency of their local jurisdiction. There may be currency exposure and potential for adverse movements in exchange rates to reduce the Australian dollar value of those international assets.

Investment ranges

The Fund may invest within the asset class and net exposure ranges as set out below. As well as providing reasonable constraints, these investment ranges also serve to manage a number of risks including leverage, short selling as well as security/investment specific and market risks. You can obtain information on the actual asset allocation, updated as at the end of each month by visiting www.monashinvestors.com or by contacting Monash Investors.

(Asset class exposures (net): As a % of NAV / Average over an investment cycle)

• Cash & Cash equivalent investments: 0 to 100% / 0 to 40%

• Australian listed equities: -100% to +200% / 60 to 90%

• International listed equities: 0-20% / 0-5%

• Australian Unlisted Equities: 0-20% / 2.5-7.5%

• Exchange traded derivatives: -20% to +40% / 0-5%

• OTC derivatives: -20% to +40% / 0-5%

(Market exposures: As a % of NAV / Average over an investment cycle)

• Net exposure range: +150 to -50% / 60-100%

• Gross exposure range: +300 to -150% / 80-120%

• Total long exposure: +200% to NIL / 70-100%

• Total short exposure: -100% to NIL / -20% to NIL

• Single stock absolute weight: +15% to -10% / +7% to -3.5%

• Sector exposure: +25% to -15% / +15% to -5%