INVESTSMART GROUP LIMITED — Net Asset Value 2009

Aug 13, 2009

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July 2009 NTA Release

1. Details of Performance and Net Asset Backing at Month end

The net asset backing (“ NTA ”) of Fat Prophets Australia Fund Limited (“ Fat Fund ”) as at 31 July 2009 was $0.9892 per share on a before tax basis, calculated in accordance with ASX Listing Rule 19:12, and represents an increase of 8.18% over the month. By comparison, the Fat Fund’s benchmark, the S&P/ASX 300 Accumulation Index firmed 7.34% over the month.

After adjusting for the impact of taxation on both realised and unrealised gains, the Fat Fund’s after tax NTA at the end of July 2009 was $1.0065 per share .

2. Performance Commentary

The major influences on the Fat Fund’s performance versus the benchmark during the month of July 2009 were as follows (* denotes acquired during month):

were as follows (* denotes acquired during month):	were as follows (* denotes acquired during month):	were as follows (* denotes acquired during month):
Positive Influences			Negative Influences
Company	% move	Position	Company	% move	Position
UXC Ltd 50% Overweight SP Telemedia 46% Overweight Integrated Research 44% Overweight APN News & Media 26% Overweight Seven Network 19% Overweight			QBE Insurance -2% Overweight Bluescope Steel 33% Underweight CSL Ltd -5% Overweight Lihir Gold -6% Overweight Mundo Minerals -4% Overweight

Our commentary this month will be included in the in the ‘Fat Fund’ Annual Report for 2009, which will be released at the end of the month. It will include a comprehensive review of the fund and investment portfolio listing as part of the Investment Management report.

FAT PROPHETS AUSTRALIA FUND LIMITED ACN 62 111 772 359

Level 33, 2 Park St, Sydney NSW 2000 telephone 02 8258 0015 fatfund@fatprophets.com.au

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3. Top 15 Holdings at 31 July 2009

Company	Symbol	% Weighting
BHP Billiton	BHP	13.4
Westpac	WBC	10.3
Commonwealth Bank	CBA	7.80
National Aust. Bank	NAB	7.50
ANZ Bank	ANZ	5.52
Wesfarmers	WES	4.53
QBE Insurance	QBE	3.89
Woolworths	WOW	3.49
Rio Tinto	RIO	3.02
CSL	CSL	2.86
Beach Petroleum	BPT	2.31
Oceana Capital	OCP	1.87
Newcrest Mining	NCM	1.69
Westfield Group	WDC	1.54
Lihir Gold	LGL	1.48

Andrew Brown[a & ] Steve O’Hanna[a ] 13 August 2009

• a: Andrew Brown and Steve O’Hanna are employees of Tidewater Investments Limited. A controlled entity of Tidewater Investments Limited, Tidewater Asset Management P/L (AFSL# 302802) currently manages the Fat Fund under a sub-contract agreement dated 24 May 2007 with Fat Prophets Funds Management Australia P/L.

This report has been prepared solely for the benefit of the Fat Fund and its shareholders. It summarises information on the financial products held by the Fat Fund and the views of the Fat Fund as at the date of preparation of the report. These views and financial products may and will change after the issue of this report. No assurance can be given by the Fat Fund or Fat Prophets Funds Management Australia Pty Limited (the Manager) or Tidewater Asset Management Pty. Limited (the sub contract manager) as to the accuracy and completeness of the information used to compile this report. Past performance is not necessarily indicative of future performance. By making this report available, the Fat Fund and the Manager are not providing any general advice or personal advice within the meaning of section 766B of the Corporations Act regarding the Fat Fund, any potential investment in the Fat Fund or any investments or potential investments of the Fat Fund. This report is made without consideration of any specific person's investment objectives, financial situation or needs. The Fat Fund, the Manager and directors and employees of the Fat Fund and the Manager do not accept any liability for the results of any action taken or not taken on the basis of the information contained in this report, any negligent mis-statements, errors or omissions.

FAT PROPHETS AUSTRALIA FUND LIMITED ACN 62 111 772 359

Level 33, 2 Park St, Sydney NSW 2000 telephone 02 8258 0015 fatfund@fatprophets.com.au