Forager International Shares Fund - PDS Updates 2025

Dear Investor,

On behalf of the responsible entity of the Forager International Shares Fund ARSN 161 843 778 (Fund), we wanted to let you know about a few proposed changes to the Fund. These changes are not changes to how we manage the Fund’s investments day-to-day, but changes to better reflect what we’ve already been doing. As well as further clarifying the Fund’s investment parameters for existing investors, this will also help future investors better understand the investment strategy.

Here’s a summary of what we are proposing to change:

- New Benchmark: We’re proposing to change the Fund’s benchmark to the MSCI World SMID Index, which is more closely aligned with our focus on small and mid-sized global companies. The Fund’s current exposure to large-cap stocks is 19% and it has averaged 11% over the 11 years since inception. From the effective date of the changes, future performance fees will be calculated with reference to the new benchmark, however the existing performance fee deficit will still need to be recouped before any performance fees are payable.

- Large Cap Exposure Cap: A formal investment constraint will be introduced, limiting large company investments to no more than 20% of the Fund. Again, this reflects how we already invest, with a strong bias towards under-researched and underappreciated smaller businesses. It also ensures consistency with the newly adopted benchmark and prevents style drift that may dilute the Fund’s core investment philosophy.

- Cash Limit Adjustment: We will reduce the maximum cash holding from 30% to 20%, reflecting our preference to be fully invested unless there’s a compelling reason not to be. This is more consistent with the Fund’s historical cash exposure and its focus at the smaller end of the market.

For existing investors like you, nothing changes in terms of how your money is being managed. These refinements are about improving transparency and alignment to the investment strategy, not shifting our approach.

We also believe the changes will make the Fund more appealing to the kind of investors who value the same things you do.

These changes will take effect upon issuance of a new Product Disclosure Statement, which we expect to be released towards the end of May. We will send you communication as this progresses, and let you know if anything changes.