Australian Governance Masters Index Fund Limited

                              
The Australian Governance Masters Index Fund provides the opportunity to invest in a diversified portfolio of Australia’s largest and best governed companies.

Investment Overview

The fund will follow a passive index-style of investing with a corporate governance bias as an integral part of its investment strategy.

All companies within the S&P/ASX 100 Index will be ranked on a relative corporate governance basis using leading third party research. The bottom ranked 15 to 25 companies will be excluded from the portfolio with the portfolio weightings of the 75 to 85 included companies adjusted accordingly.

With a focus on active capital management, the fund may undertake a buy-back in the event that shares trade at a discount to their net tangible asset backing (NTA). Other initiatives such as bonus issues, rights issues and option issues placements may also be considered to enhance the value and/or liquidity of the fund.

The Australian Governance Masters Index Fund may be suitable for long-term investors seeking cost-effective exposure to the top 100 ASX-listed equities.

It is expected the Total Expense Ratio (TER) will not exceed 0.49% pa excluding GST.

Benefits of good governance and a passive investment strategy

The current economic climate and recent high profile corporate failures such as ABC Learning Centres and Allco Finance Group highlight the need for investors to consider good corporate governance policies and practices when determining the companies in which to invest.

Recent studies conducted both in Australia and internationally have found evidence of a positive correlation between good corporate governance and investment performance.

A number of studies also demonstrate that a relatively passive investment style will regularly outperform active management approaches over the longer term.

The Australian Governance Masters Index Fund combines a passive long term investment strategy with the benefits of focusing on companies which have relatively high levels of corporate governance.

The Board 
The Company has 2 independent Directors, David Hawes and Jeffrey Whalan (Chairman). The third member of the Board, Maximilian Walsh is connected with the Manager and is involved in the management of the business of the Manager. The independent Directors represent the majority of the Board.  

The issuer of the Shares is Australian Governance Masters Index Fund Limited (Company).  The Replacement Prospectus contains all the details of the offer.  Paper copies of the Replacement Prospectus can be obtained from Dixon Advisory on 1300 667 654.  The offer of Shares will be made in the Replacement Prospectus.

If you are accessing an electronic copy of the Replacement Prospectus please ensure you have received the entire Replacement Prospectus accompanied by the relevant Application Form.

The Replacement Prospectus does not constitute an offer or invitation in any jurisdiction other than Australia or New Zealand.  The Corporations Act prohibits any person from passing on to another an Application Form unless it is attached to or accompanied by an unaltered and complete version of the Replacement Prospectus.

The Company will not accept an Application Form if it believes that the Applicant has not received a complete and unaltered Application Form.  By downloading the Replacement Prospectus you represent that you have read and understood the above information.  If you do not agree, please do not view the electronic Replacement Prospectus.