Benefits of investing in the Eley Griffiths Group Emerging Companies Fund

There are many benefits of investing in the Fund. Some of the more significant benefits include:

• the potential to generate capital growth over the medium term as well as income from its investment in companies listed in Australia and New Zealand

• access to the investment expertise of the Investment Manager

• active risk management (through the form of risk spreading)

• access to investment opportunities that individual investors usually cannot achieve

• managed funds can often invest for less cost than ordinary investors

• generally, you can add to or withdraw your investment daily

• you have the right to receive any distributions we make from the Fund

• a robust corporate governance structure and

• clear legal rights.

Risk level

High

Investor suitability

The Fund is generally suited for persons seeking long term capital growth (5+ years) and those who can tolerate a high level of volatility.

About the Fund

Offering investors exposure to a diversified portfolio of Australian listed emerging companies that reside outside the S&P ASX200 Index. The Fund is benchmarked against the S&P/ASX Small Ordinaries Accumulation Index and was launched 1 March 2017.

The team combines fundamental bottom-up research of companies with an in-depth qualitative assessment of their management and industry structure. Our proprietary investment process, known as SCOPE (Small Company Optimal Portfolio Evaluation), is a relative stock scoring tool that ranks stocks from highest to lowest based on their score. The portfolio comprises the best scoring stocks, subject to a number of risk constraints, such as maximum active position size (7%) and liquidity.

The outworking of this process is a portfolio that typically exhibits both growth and value characteristics that can outperform the market over the long-term.

About Eley Griffiths Group

Founded in 2003, Eley Griffiths Group is a specialist investment management company focusing on Australian listed Small and Emerging Companies. Eley Griffiths is 100% independent & owned by staff.

Our investment process and team have delivered consistent out performance through all market conditions for 16 years. We are style agnostic and can own both growth and value companies to construct portfolios.

Our investment philosophy:

• A long-term bottom-up approach to stock picking (style agnostic) Forming strong macro views to derive accurate long-term earnings estimates.

• Using Price/Earnings ratios and cashflow as our fundamental valuation tools.

• The need for a systematic and disciplined stock selection process Risk control measures at a stock and portfolio level

• Extensive company visitation program (domestic & offshore)

How we invest your money

The Fund principally invests in equities of Australian and New Zealand companies listed on the ASX and NZX that fall outside the S&P/ ASX200 Index and some cash. The Investment Manager is an active manager who makes decisions about buying and selling investments of the Fund on a daily basis.

Fund investments and asset allocation

The Fund will generally hold shares in listed companies and cash. The portfolio allocation will generally be (Min-Max / Target):

• Australian & New Zealand equities: 50-100% / 95%

• Cash: 0-50% / 5%

Please note that the ranges and the target provide only an indication of the intended investments of the Fund. The Investment Manager aims to actively adjust the investment mix within the ranges above. The "target position is where the Investment Manager aims to have the Fund invested given a fairly valued investment market. All other things being equal, the target position would be the investment mix of the Fund.