Benefits of Investing in the Pengana Axiom International Ethical Fund

The Fund offers investors the following benefits:

• Access to Axiom's specialist investment expertise

• Participation in an investment strategy which focuses on international listed securities

• Exposure to investment opportunities that individual investors may not be able to access on their own

• Active portfolio risk management

• Hedging of foreign currency exposure
• An ethical screen designed to prevent investments in companies that currently generate revenues from activities that in Pengana's opinion are unnecessarily harmful to humans, animals and the environment

The Fund may be suited to you if:

• you want to gain exposure to a portfolio of international equities actively managed by a specialist manager with an emphasis on dynamically growing companies.

• you are looking to invest for at least 5 years and are seeking primarily capital growth with some income.

About the Fund

The Fund is an ethically screened, actively managed portfolio of listed international securities. The Fund's investments are managed by Axiom Investors LLC, a US based equity investment specialist founded in 1998. Axiom follows a dynamic growth philosophy and process that focuses on forward looking trends in a company's operations. It has an experienced and stable investment team and is 100% employee owned.

The Fund invests principally in listed (or soon to be listed) international equities. The Fund will typically have 45 to 75 holdings and can invest in developed and emerging markets.

For details on the Ethical Investment Policy for this Fund, please see page 5 of the PDS.

How we invest your money

The Fund invests principally in listed (or soon to be listed) international equities. The Fund will typically have 45 to 75 holdings and can invest in developed and emerging markets.

Axiom invests in companies that are:

• dynamically growing;

• changing for the better, more rapidly than generally expected;

• undervalued, such that the positive change is not yet reflected in the share price.

Axiom identifies forward looking positive changes, accelerations, and inflections in a business's key operations, which it believes will lead to subsequent improvements in reported financial results or earnings projections over the next 12-36 months. The most attractive companies will have positive fundamental changes occurring in their earnings growth, creating natural compounding performance tailwinds, and an attractive valuation providing both upside potential and risk control benefits.

Indicative strategic asset allocation

The Fund's investment manager aims to manage the Fund within the following guidelines:

• Typically 45 to 75 holdings

• No more than 6%, or 1.5x the index, in a single position

• No more than 40% in a single sector (45% in IT)

• No more than 30% in a single country (0.5 to 1.5x the Index in the US)

• No more than 25% in emerging markets

The Fund can invest in securities that are not part of the Index.

The Fund's investment manager will endeavour to work within the above guidelines - however these should be viewed as objectives only and not absolute limits.

Derivatives may be used to:

• achieve long or short exposures;

• hedge foreign exchange exposures;

• reduce risk; and
• reduce transaction costs.

Derivatives will not be used for the purpose of leverage and the Fund's net exposure will never be short. All derivative use will be within the exceptions set out in the definition of a hedge fund in ASIC's Regulatory Guide 240: Hedge Funds: Improving Disclosure so that the Fund will not fall within this definition of a hedge fund.