The Fund will invest in a concentrated portfolio of quality ASX listed Australian shares, where these shares are identified by our investment team as being undervalued.

To provide a rate of return (after fees and expenses and before taxes) which exceeds the return of the Fund’s Benchmark on a rolling four-year basis.

Benefits of investing in the Investors Mutual Concentrated Australian Share Fund

Investing in the Fund offers you a range of benefits:

• your money is managed by IML's investment professionals who have access to investment techniques that may not be available to all investors;

• access to investment opportunities and markets that may not be accessible to all investors;

• unless the Fund has become illiquid, you can generally apply to withdraw your investment on any Business Day; and

• fund managers can usually transact at a lower cost than individual investors.

Risk level

Medium to High

About the Fund

The Investors Mutual Concentrated Australian Share Fund provides exposure to an actively managed, concentrated portfolio of quality shares listed on the ASX. The Fund aims to provide attractive investment opportunities for investors seeking medium to long term capital growth with income. The Fund applies IML's conservative quality and value investment philosophy with a long term focus and aims to deliver consistent returns to clients.

The portfolio is heavily biased towards companies that are attractive on a risk/return basis and demonstrate lower volatility than the overall market. We see an opportunity to provide our clients with a more concentrated portfolio which is totally index unaware. The Fund will focus on holding a maximum of 30 stocks selected by the portfolio manager that in their view will deliver excellent long term returns to the Fund's unitholders.

Investment philosophy

IML's investment philosophy is based on the premise that over the long- term, a company's share price will reflect its underlying inherent value. We seek to buy and own companies with a competitive advantage, recurring earnings, run by capable management, that can grow, at a reasonable price.

Investment style

IML has an active, "bottom-up approach to identifying, researching and valuing quality companies. The investment style is built upon a systematic and disciplined research process that aims to deliver superior risk-adjusted returns by favouring quality stocks whose share prices are significantly different from their assessed inherent value'.

How we invest your money

As a guideline, the Fund will usually hold a minimum of 20 different securities. The main investments of the Fund may include a combination of:

• securities listed on the ASX. This may include companies with operations outside Australia (including dual listed securities) but are listed on the ASX;

• cash (and cash equivalents such as other investment grade interest-bearing securities); and

• derivatives (bought and sold options), as described below.

IML may use options, futures and other derivatives to manage risk, to gain exposure to particular securities and markets or to enhance the returns of the underlying physical investments. Derivatives are not used speculatively or for the purposes of gearing the Fund. The Fund will not borrow.

Asset classes and allocation ranges

• Cash: 0-20%

• Australian equities*: 80-100%

*In addition to securities listed on the ASX in Australia, the Fund may also invest in derivatives and hybrid securities such as preference shares. The Fund may invest up to 5% of the Fund's assets in unlisted securities, provided that at the time of the investment, IML has reasonable grounds to believe that the relevant company's securities will be listed on a regulated exchange within 12 months of the investment by the Fund. Please note that securities which IML expects will list on a regulated exchange may not be granted official quotation by that exchange, as the listing and quotation of securities are within the exchange's complete discretion. The Fund may gain exposure to investments through other registered managed investment schemes. Where those schemes are also managed by IML, you will not be charged additional management fees to the extent that those fees relate to an investment on behalf of the Fund.