Benefits of investing in the Australian Ethical Emerging Companies Fund - Class B

Management - ethical investment professionals

The Fund provides access to a professionally managed investment portfolio that takes account of ethical factors (including environmental and social impact plus corporate governance), so that you can invest knowing your money is involved in positive activities.

Governance - looking after your investment

The operations of the Fund, including the rights, responsibilities and duties of Australian Ethical and investors, are governed by its constitution and the Corporations Act 2001.

Communications - staying in touch with you

You can keep track of your investment in the following ways;

• via our website australianethical.com.au/managed-funds, which provides all the information that is material for our Managed Funds;

• through statements issued twice yearly;

• by using our secure online account access system, InvestorServe; and

• by subscribing to our monthly and quarterly investment commentary reports and our ethical magazine (Good Money) at australianethical.com.au/newsletter/subscriptions

Risk level

Very High

Investor suitability

Investors seeking capital growth through an exposure to small capitalisation companies. The Fund is suited to investors with a longer timeframe and higher risk tolerance.

About the Fund

The opportunity to invest in a diversified portfolio of shares in small capitalisation companies on the basis of their social, environmental and financial credentials. The Fund utilises an active stock-picking management style with stocks selected for growth rather than income. All stocks are chosen on the basis of relative value where we deem the risks are being adequately priced.

Why invest ethically?

• Portfolio diversification: Diversify your portfolio by investing in companies and sectors not well covered by other fund managers and brokers.

• Help build a better world: Invest in the new, low‐carbon economy, fund medical and technology breakthroughs, efficient transport and more.

• Promote human rights: We strive to avoid any investment in companies involved in the poor treatment of asylum seekers or the exploitation of workers through poor working conditions.

About Australian Ethical

Australian Ethical is one of Australia's leading ethical fund managers. By investing responsibly in well-managed ethical companies, we deliver competitive financial performance to our clients and positive change to society and the environment. Since our inception in 1986, our Ethical Charter has guided all investment decisions and underpinned our business practices. Every year 10 per cent of our profits are distributed to charitable organisations and social impact initiatives through The Australian Ethical Foundation.

How we invest your money

The Fund invests in a diversified portfolio of shares in small capitalisation companies on the basis of their social, environmental and investment credentials. The Fund utilises an active stock-picking management style with stocks selected for capital growth rather than income. All stocks are chosen on the basis of relative value where we deem the risks are being adequately priced.

Mix of asset classes and strategic ranges

Growth

• Small capitalisation shares: 70-100%

• Unlisted shares: 0-10%

Defensive

• Cash: 0-20%