Benefits of investing in the Armytage Australian Equity Income Fund

The Fund is managed with a view to offering investors long-term capital growth potential and a regular quarterly income stream, from a portfolio of large-capitalisation investments that Armytage considers to be of high quality and good value.

A major feature differentiating Armytage's investment style from other investment managers is the use of Exchange Traded Options (ETOs) under a non-leveraged Buy-Write, Sell-Put strategy. Exchange Traded Options are a part of Armytage's active investment strategy for the Fund. These securities are designed to help increase the yield of the portfolio, assist to reduce market volatility and along with dividend income, provide a stable platform for quarterly distribution payments to investors.

Risk level

High

Investor suitability

This Fund is designed for investors who seek income and capital growth from a large capitalisation Australian equities portfolio with the potential for increased income through the use of Exchange Traded Options.

About the Fund

The Fund is managed with a view to offering investors long-term capital growth potential and a regular semi-annual income stream, from a portfolio of investments drawn from the All Ordinaries Accumulation Index.

The fund uses exchange-traded options to enhance the yield on the underlying physical investments through a Buy/Write and Sell/Put strategy. Options are not used for gearing or protection purposes and the Fund is never more than 100% exposed to the market. The Australian Equity Income Fund (formerly Enhanced Leaders Fund) was developed after extensive consultation within the Australian IFA market. It focuses on generating an above market yield with a lower than market volatility. Recommended investment timeframe: 5 - 6 years The fund has been rated by Lonsec which is an independent research house. It also has a four star rating with Morningstar for 3 and 5 years.

About Armytage Private Pty Limited

Armytage Private Pty Ltd ("Armytage) has an experienced investment team that has been assembled from a variety of Australian and international financial services fields predominantly in funds management, share-broking, superannuation and wealth management. Armytage has managed various mandates in Australian securities for a broad range of wholesale investors. Since Armytage's inception it has focused on Australian listed securities (including Exchange Traded Options) and domestic cash. Armytage has managed various mandates in Australian securities for a broad range of wholesale investors. At the date of the PDS Armytage manages in excess of 30 pooled funds and discrete investment mandates.

Armytage has an Investment Committee which comprises experienced investment and financial services professionals. The role of the Investment Committee is to make asset allocation and investment decisions in accordance with investment mandates, review research material and monitor the Fund's investment portfolio and performance.

The Investment Team has 8 core members with over 200 years combined experience in the industry. The Investment Team meets regularly to discuss the stocks in the Investment Universe with the analyst for each sector providing an update on key information in relation to their stocks and the review of any new Investment Theses and financial models. Each analyst also provides periodic updates on their confidence levels in the views on each stock included in the portfolio. These meetings also discuss the economic and thematic matters impacting the stocks in the portfolio.

For more information on Armytage, including funds under management please visit their website www.armytage.com.au.

How we invest your money

Armytage's Value based investment style incorporates a bottom-up proprietary business valuation investment approach supplemented by top-down thematic overlays to identify the highest quality alpha opportunities in its investment universe. This approach allows Armytage to construct a portfolio of stocks providing relative-value over the investment time horizon.

Consistent with Armytage's business valuation approach, Armytage seeks to invest in businesses that have a clear and understandable business model, preferably have a history of generating profits, paying dividends and have forecastable future profits and cash flows. In this regard, Armytage tends to avoid investing in higher risk early stage companies that are research and development or exploration based.

The total portfolio will be continually reviewed in order to assess whether the Fund's objectives are being met.

Asset allocation

The assets of the Fund will generally be invested in accordance with the following:

• Australian Equities: 70-100%

• Cash and cash equivalents: 0-30%