INVESTSMART GROUP LIMITED — Capital/Financing Update 2018

Jun 14, 2018

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15 June 2018

Attention: Company Announcements ASX Limited

Guidance Update and $100m FUM Milestone

Guidance Update

InvestSMART Group Ltd (INV) expects to report Operating Profits of $725,000 for FY2018 (previous guidance: $500,000) and Funds under management (FUM) at year-end of about $110m (previous guidance: $135m).

The updated guidance reflects lower costs than forecast and lower FUM inflows due to the delayed listing of the company’s first Active ETF - the InvestSMART Australian Equity Income Fund (ASX code: INIF).

FUM milestone

After closing its initial offer for the company’s first Active ETF - the InvestSMART Australian Equity Income Fund (ASX code: INIF) - InvestSMART has reached $100m in funds under management.

Active ETFs are open ended funds offering cost-effective, transparent access to direct equity portfolios whilst avoiding much of the paperwork that has traditionally bedevilled the industry.

Attracting over three times its funds under management (FUM) target of $10m in the initial application period, INIF is expected to list on the ASX next week. As an integral part of InvestSMART’s vision and substantial investor benefits, INIF’s funds under management is also expected to increase after listing.

Commenting on the milestone, Chairman Paul Clitheroe said, “In my 35 years of experience in building financial services businesses, the hardest part of the journey is in these early days. Reaching the first $100 million under management is a proof of concept. It shows we can attract savvy investors that get what we’re about.”

Further information on the launch of the InvestSMART Australian Equity Income Fund will be released under ASX code INIF.

For more information or comment, please contact InvestSMART Chairman Paul Clitheroe or Managing Director and CEO Ron Hodge, on (02) 8305 6000.

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