Investment Strategy

This Fund is an unlisted managed investment scheme that will provide investors with exposure to a portfolio of principally listed Australian companies. The Fund’s objective is to protect and enhance investor wealth on a consistent and repeatable basis in real Australian Dollar terms.

The Fund’s investment strategy is to use fundamental analysis to select and invest in securities in listed Australian companies with the following characteristics:

• Good business with transparent and resilient business models
• Competent management with a track record of integrity
• A favourable relationship between the market price and the future cash flows of the business

Cash holdings are viewed as a natural alternative when equity investment opportunities cannot be identified. The Fund may also hold cash equivalents, precious metals, listed government bonds, securities in exchange traded stocks, derivatives (for example, options, futures and swaps) and may invest in securities listed on overseas stock exchanges if the manager determines that this is a better investment proposition than a similar security listed in Australia. The manager may use derivatives to reduce risk (hedge) or gain exposure to investments (for example, to obtain short exposure and exposure to precious metals). However, the Fund’s net portfolio exposure will never be short overall and the Fund will not be levered.

The Fund employs research-based security selection, using fundamental bottom-up research with macro/top-down overlays for portfolio construction. All positions are high conviction and assessed on a risk-reward basis, resulting in a portfolio with around 20-25 securities being held.

The manager aims to invest within the following guidelines:

• Not more than 10% of the Fund’s net asset value may be invested in a single position at the execution of a trade other than in cash and cash equivalents and not more than 15% of the Fund’s net asset value may be invested in a single position at any time other than in cash and cash equivalents (to allow for price appreciation following the execution of a trade);
• Not more than 20% of the Fund’s net asset value may be invested in companies not listed in Australia

The manager may hedge the foreign currency risk of the portfolio derived from investments listed overseas and investments in companies listed in Australia with overseas earnings.

The manager will endeavour to work within these guidelines. However, these guidelines should be viewed as objectives only and not absolute limits. Should they be exceeded for any reason, for example due to market movements or Fund cash flows, the manager will endeavour to effect such adjustments as necessary to meet these guidelines.

New Applications

1. Read the Financial Services Guide and then the current Product Disclosure Statement (PDS):

• Financial Services Guide
• Product Disclosure Statement

Alternatively you can request paper copies of these documents be mailed to you by contacting:
Gale Ruttanaphon, +61 2 8524 9918, gale.ruttanaphon@pengana.com

2. Complete the Application Form found in the PDS (choose from the list below)

• Application Form for Individuals and Sole Traders refer to pages 32-37
• Application Form for Trusts and Self Managed Superannuation Funds refer to pages 38-48
• Application Form for Australian and New Zealand Companies refer to pages 49-56
• Application Form for Partnerships, Registered Co-Operatives and Government Bodies refer to pages 57-64

3. Send the completed Application Form and required Anti Money Laundering (AML) identification document(s) to the Administrator:

BNP Securities Services
PO Box R209
Royal Exchange NSW, 1225
Attention: Unit Registry,
Pengana Australian Equities Core Fund

Due to AML legislative requirements, we cannot accept an ‘Application Form for New Investment’ by facsimile or email.

4. Transfer funds to Pengana

Transfer your application monies:

• Cheques – payable to:
  “Cogent Nominees Pty Limited ACF Pengana Australian Equities Core Fund Applications Account”

• EFT or Direct Deposit:
  
  Acct name: Cogent Nominees Pty Limited ACF Pengana Australian Equities Core Fund Applications Account
  Bank: Westpac Banking Corporation
  BSB: 03200
  Acct number: 626863

In addition, if you are paying the application monies by EFT or direct deposit you must ensure your investor name is recorded as a narrative on the payment. You will also need to advise us prior to the processing cut-off time (2pm each business day) so that we can identify your money. Contact Gale Ruttanaphon, +61 2 8524 9918, gale.ruttanaphon@pengana.com

Failure to do so may incur delays (up to 15 banking days) in applying for units.

Additional Investments

1. Read the Financial Services Guide and then the Product Disclosure Statement:

• Financial Services Guide
• Product Disclosure Statement,PDS

Alternatively you can request a paper copy of these documents be mailed to you by contacting:
Gale Ruttanaphon, +61 2 8524 9918, gale.ruttanaphon@pengana.com

The Operator will advise Indirect Investors about how to make additional investments, including the minimum amount involved. Indirect Investors can arrange to make additional investments in the Fund in accordance with their arrangement with their Operator.

2. Written request

An additional application may be made at any time. The minimum additional investment amount is $5,000.

To apply:

Complete the Application for Additional Investment Form

Alternatively you may write to us; please state your investor number and name, the Fund and amount you wish to invest, and how your monies will be transferred to Pengana (including the account details that the monies will be coming from).

You may fax your instruction or completed form to the Administrator (see the contact details set out below), although we ask that you phone Gale Ruttanaphon, +61 2 8524 9918, gale.ruttanaphon@pengana.com to verify receipt.

3. Transfer Funds

Arrange for funds to be transferred to the following account:

Acct name: Cogent Nominees Pty Limited ACF Pengana Australian Equities Core Fund Applications Account
Bank: Westpac Banking Corporation
BSB: 032002
Acct number: 626863

Please also ensure that your investor name is recorded as a narrative on the payment so we can identify your moneys.

4. Send your written request to the Administrator:

By mail:

BNP Securities Services
PO Box R209
Royal Exchange NSW, 1225
Attention: Unit Registry,
Pengana Australian Equities Core Fund

By facsimile: +61 2 9222 0010 Please include The Fax Cover Sheet

5. Notify Pengana if you paid by EFT or Direct Deposit.

If you paid by EFT or direct deposit, you must notify the details to Gale Ruttanaphon, +61 2 8524 9918, gale.ruttanaphon@pengana.com (either in writing or by phone).

It is also important to ensure your investor name is recorded as a narrative on the payment – otherwise your monies cannot be identified. Failure to do either of these things may cause processing delays and additional costs to you.

If you emailed your written notification to Pengana, you must phone Gale Ruttanaphon by phone to confirm that Pengana has received it:
Gale Ruttanaphon, +61 2 8524 9918