INVESTSMART GROUP LIMITED — Regulatory Filings 2011

Feb 13, 2011

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Merricks Capital Special Opportunity Fund Limited NTA Release as at 31 January 2011

Overview

On 1 August 2010, Merricks Capital Pty Limited ( Merricks ) became the Manager of the Merricks Capital Special Opportunity Fund Limited ( Fund ) (formerly known as Fat Prophets Australia Fund Limited). On 1 October 2010 the Fund announced its new Investment Mandate.

The Fund has a few select investments at any given time and focuses on investments in small to mid-cap Australian listed companies. The types of investments that the Fund targets are:

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• Obtaining a strategic stake in a desired small to medium listed company via placement of new securities or acquisition of shares.

• Construction of unlisted convertible securities, offering equity-type returns but with debt security characteristics.

• Combining with other investors to acquire a significant stake in a company with a view to actively agitating for change, which could release hidden value to all shareholders.

• Investments that reward the provision of liquidity.

The Fund’s core strength is that it has semi-permanent capital. Merricks seeks to make investments that allows the Fund to maximise the use of its semi-permanent capital, resulting in both capital gains and the payment of regular and consistent dividends.

Net Tangible Asset Backing

Performance	Net Asset Backing	Monthly Return
Pre Tax NTA	1.14 Per Share	2.00%
Post Tax NTA	1.12 Per Share	1.43%
ASX 300 Accumulation Index		0.11%

Asset Allocation

Investment		Weight
Cash		55.60%
Shareholdings		44.40%

Invested Portfolio

Company	Code	Weight
Straits Resources Limited	SRL ASX	52.23%
ING Real Estate Entertainment Fund	IEF ASX	47.71%
Other		0.06%

Fund Service Providers Fund Information Contact Administrator White Outsourcing Pty Ltd Inception Date April 2005 Adam Lindell +61 3 8319 8111 Auditor MNSA Pty Ltd ASX Stock Code MEF adam.lindell@merrickscapital.com FUM $32M AUD www.merrickscapital.com

Disclaimer

This report has been prepared solely for the benefit of the Shareholders of Merricks Capital Special Opportunity Fund Limited ( Fund) . It summarises information on the financial products held by the Fund as at the stated date. The financial products may and will change after the issue of this report. No assurance can be given by the Fund or by Merricks Capital Pty Limited ( Merricks ) 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 Fund and Merricks are not providing any general advice or personal advice within the meaning of section 766B of the Corporations Act regarding the Fund, any potential investment in the Fund or any investments or potential investments of the Fund. This report is made without consideration of any specific person's investment objectives, financial situation or needs. The Fund, Merricks and directors and employees of the Fund and Merricks 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 miss-statements, errors or omissions.