Armytage Micro Cap

Activist Fund Armytage Private (est. 1995)

Prosperity Through Prudence & Prescience

Armytage Private –The Fund Manager

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Armytage was established in 1995 as one of the first true IMA managers in Australia with the firm’s founding service being its successful discretionary portfolio management service for wholesale clients. In 2006, Armytage broadened its product and service line-up with the addition of two managed funds, the Armytage Australian Equity Income Fund and the Armytage Strategic Opportunities Fund, enabling greater retail access to the firm’s investment capabilities through financial intermediaries.

Both funds are actively managed in line with Armytage's fundamental value style of investing, with options used strategically to lower volatility/risk levels and enhance portfolio income. This approach provides the Armytage Funds with the platform to deliver strong and consistent distribution payments to investors, complementing the Investment Team’s overall stock selection and investment management decisions.

The Armytage Australian Equity Income Fund, the Armytage Strategic Opportunities Fund and the Armytage IMA/SMA Portfolios are available through a number of leading administration/wrap platforms.

Product Key Features

▪ The fund aims to achieve net returns that exceed 10% p.a. over a rolling 3-

year period.

▪ The fund intends to distribute income annually at the end of the financial

year each year.

▪ Target size: A$50 million (initially)

▪ The fund will invest in publicly listed securities that represent significant

growth opportunities. This includes capital raisings, capital placements,

takeover targets and emerging & undervalued businesses.

▪ Primary screening for Emerging & Undervalued New Economy Businesses

▪ The fund will be managed via a Comprehensive Activist Style &

Interventionist Approach

▪ Each investment will have a Specific, Strategic, Designated, Identified

Outcome

▪ Target number of securities: 5 – 10 securities

▪ Only qualified investors who confirm their eligibility as a Wholesale Client

under the Corporations Act may invest.

▪ Minimum initial investment amount is either:

▪ $50,000 if the investor meets the criteria of a Wholesale Client

▪ Or $500,000 without a supporting Accountants’ certificate

▪ Minimum amount for additional investment is $25,000 per investor

▪ Management fees: 1.25% +GST

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Armytage Private(Investment Manager)

Corporate Research

Investment Committee

Armytage Micro Cap

Activist Fund

Institutional & Wholesale Investors

Advisory Panel

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The Investment Committee

INVESTMENT TEAM CORPORATE RESEARCH DEPARTMENT

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Lee Iafrate | Executive Chairman & Portfolio Manager

B.Bus, FCPA, FFIN, Grad.Dip. Applied Fin & INV

▪ Founding Chairman of Armytage Private

▪ Responsible for portfolio management of the Armytage IMA Service, sector & stock analysis, as well as equity and option dealing

▪ A Member of the Industry Research and Advisory Committee

▪ Founder and former Chairman of Treasury Group

▪ Founder & Former Director of AVFM Ltd/Prime Financial Group

▪ Founder & Former Chairman of Easton Investments Ltd

Bradley King | Executive Director & Portfolio ManagerB.Bus (Eco & Fin)(App), SA Fin

▪ Responsible for portfolio management, stock & sector analysis, and macroeconomic strategy

▪ A Member of the Industry Research and Advisory Committee

▪ Previously held positions in wealth management, stock broking & portfolio management

▪ Formerly with Tolhurst Noall, before joining Armytage in 2003

Julian Mitchell | Portfolio ManagerB.Bus, Hons

▪ Responsible for Citadel Fund Managers IMA accounts, Australian New Horizons Fund

▪ A Member of Armytage Industry Research and Advisory Committee

▪ Founder of DMP Asset Management

Armytage Investment Team

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David Stevens| Head of Global Strategies

▪ CEO at HSBC Asset Management Australia Ltd from 1991 to 1998. David helped grow HSBC’s

funds under management in Australia from $700m to $6.5b

▪ Founded Contango Asset Management Ltd in 1998, where David grew funds under management

to $2.3b

▪ Founded 3 Listed Investment Company 's raising over $300 m in capital for micro cap, and income

equity Listed Investment Company’s

▪ Develop relationships on behalf of Australian investors

Andrew Brown| Investment Committee Member

▪ Executive Director of East 72 Holdings, a closed end, global, long/short investor

▪ Past Head of Equities at Rothschild Australia Asset Management

▪ Significant experience as former Director of 13 ASX listed companies

▪ Strong background in financial securities and company modelling

Armytage Investment Team

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Chris Ryan| Investment Committee Member (B. Bus)

▪ Over 35 years of senior experience in financial services across Asia Pacific

▪ Current Chairman and CEO at First Harbor Capital Partners Ltd, an investment and consulting

business, advising financial services businesses wanting to grow into APAC markets.

▪ Co-founder of Digital Finance Media

▪ Past MD and Head of Asia Pacific for MSCI

▪ Past CEO of Perpetual Limited

Mark Simari | Investment Committee Member (B.Acc. D.FS)

▪ Managing Director at Paragon Care Ltd from 2007 to 2018

▪ Has excellent networks in the banking, capital markets and financial services sectors

▪ Mark’s background incorporates experience as a company secretary, financial advisor, stockbroker and

owner of several enterprises with expertise in mergers and acquisitions, business restructuring, building

shareholder value

Michael Locaso | Investment Committee Member (M. Bank & Fin)

▪ Founder and current Corporate Adviser at LP7

▪ Co-founder and past Director at ExitCatalyst, focusing on business transformations

▪ Co-founder and past CEO at Inverted Power, whose mission is to commercialize a novel

fast charging technology for electric vehicle batteries.

Corporate Research Team

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Investment Process

Preliminary Screening

Qualitative & Quantitative assessment

Stock

Selection

Implementation & Execution

Ongoing Portfolio

Management

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Investment Process

Investment Strategy

Armytage Private seeks to invest in businesses listed on the Australian Securities Exchange that meet the following criteria:

✓ Strategic asset or technology

✓ Genuine growth opportunity

✓ Targeted for takeover

✓ Potential earnings re-rating

✓ Management that can be refocused/restructured

✓ Industry and firm not facing intense competition, risks from technology or shrinking customer’s demand

✓ Relatively simple to run, suits systemisation, staff easy to replace

✓ Possible investments referred by industry partners and brokers

Armytage Private will conduct a preliminary high-level screening

process using defined criteria to identify investments for detailed

due diligence and formal consideration. A list of possible

investments is prepared and updated continuously over time.

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All Ords Small Ords Small Industrials

Australian Equity Market Performance

Historically Neglected

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Investment Analysis

Armytage Private performs qualitative and quantitative analysis to rate investments. These include:

✓ Financial metric analysis

✓ Financial statement analysis

✓ Assessment of business plans

✓ Business and corporate structure review

✓ Assessment of performance and suitability of management

✓ Determination of potential future valuation

✓ Development of strategic plans to improve profitability and valuation over the long-term

➢ This fund seeks to capitalise on this discount to fair value via its ‘activist interventionist style

➢ EPS growth will be enhanced via M&A activity or restructuring

➢ Relentless in our pursuit to extract value out of the opportunities we identified

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Investment Analysis

✓ A company’s ultimate survival is based upon its ability to generate recurring earnings (unless it is an asset play). The fund will invest in companies where the fund has identified (modelled) a clearly defined maintainable earnings base, based upon conservative accounting practices. Aggressive financial engineering will not be tolerated.

✓ To generate maintainable earnings, a company must have a healthy balance sheet and a sound capital base. The company’s balance sheet should not be over-geared whilst managing endeavours to maximize returns from the company’s capital base. The fund will only invest in companies that it views to have a conservative balance sheet and a capital base that is sufficient to meet the capabilities of the management team. Debt is unlikely to be more than 50% of net assets and interest cover is unlikely to be less than three times maintainable earnings for companies the fund invests in.

✓ The fund manager employs investment professionals that are street wise and have been investing for many years. This experience has seen them invest through cycles, wars, terrorist attacks and many other periods of market volatility. Like all investors, the fund manager’s investment team has made some poor calls the team sees a bad call as experience and something to learn from.

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Armytage Private Pty LtdLevel 5, 30 Collins StreetMelbourne VIC, 3000

03 9674 0600

backoffice@armytage.com.au

www.Armytage.com.au

Contact Us

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