The Fund is an actively managed portfolio of mainly smaller and midcap listed (and unlisted) companies that are considered tobe “Better Future Investments”.

For the purpose of this document, “Better Future Investments” are “Better Future EnablerInvestments” or “Better Future Leader Investments.”

“Better Future Enabler Investments” are defined as companies that at the time of acquisition, conduct businesses that arederiving more than 50% of their gross revenue from business operations that:

• are generating renewable energy, improving energy efficiency or seeking to reduce greenhouse gas emissions; or

• are involved in water treatment or remediation; or

• are focused on providing environmental services or otherwise focused on environmental outcomes; or

• involve technology or processes that enable businesses and/or individuals to reduce their resource use or improve theefficiency of their resource use (including by processing materials for recycling); or

• are providing nature-based technologies or solutions, providing products or services that improve biodiversityoutcomes in existing business models or prevent the loss of biodiversity (including reducing pollution, improved farmingpractices, protecting: marine life, plant life & natural ecosystems, improving forestry); or

• contribute to social welfare outcomes, including improving the safety, health or well-being of workers; or

• relate to health outcomes, including health products and health services; or

• relate to education services or outcomes (including without limitation childcare); or

• involves the leasing of properties to organisations that provide healthcare, education or childcare or for social housingpurposes.

“Better Future Leader Investments” are companies that, at the time of acquisition, have a Perennial-derived Environmental,Social, Governance and Engagement Score (ESG&E Score), which exceeds the weighted ESG&E score of the benchmark indexand does not satisfy the Better Future Enabler Investments definition.The ESG&E Score is a proprietary scoring system that has been developed by Perennial Better Future.

Perennial Better Futureuses the ESG&E Score to evaluate a company’s Environmental, Social and Governance (ESG) performance. As part of the ESG&EScore, the Investment Manager undertakes an assessment on each individual ESG component and considers relevant factorsas part of its assessment. These factors include, but are not limited to:

• Environmental – greenhouse gas emission disclosures, alignment with the Paris Agreement and environmental impactof operations.

• Social – executive diversity, occupational health and safety and modern slavery risks in supply chains.

• Governance – Board independence, board expertise and skill mix, and remuneration policies.The ESG&E Score also assesses the company’s ‘Engagement’ on ESG related issues and subjectively assesses to what extent thecompany is engaged with improving ESG and sustainability outcomes within the business.

The ESG&E Scoring methodologyapplies a 20% weighting to each ‘Environmental’, ‘Social’ and ‘Governance’ component and applies a 40% weighting to‘Engagement’. This provides a total weighted score out of 10, which is then compared with the benchmark’s weighted averageESG&E score. Factors such as the outcome of Perennial Better Future’s engagement with company management and directorswill also be considered as part of the company’s assessment. Perennial Better Future may also take into account externalinformation such as publicly available data, financial disclosures, annual reports, sustainability reports, the company’s website,stockbroker research and external data sources.

The Fund does not invest in companies that, to the best of the InvestmentManager’s knowledge, receive any revenue from:

• the manufacture, distribution or sale of tobacco or alcohol products, including electronic nicotine delivery systems(ENDS) as defined by the US Food and Drug Administration (e.g. ‘vaping’ devices, e-cigarettes) alternatively described asnicotine vaping products (NVP);

• the manufacture, distribution or sale of weapons or armaments including controversial weapons and nuclear weapons;

• extraction or sale of thermal coal, metallurgical coal, uranium, oil or gas (other than recycled oil);

• gambling or betting operations;

• the production, sale or distribution of pornography;

• the manufacture or distribution of toxic pesticides;

• old growth forest logging; or• operations or transportation associated with the live exportation of animals offshore.

The Fund is an actively managed portfolio of mainly smaller and midcap listed (and unlisted) companies that are considered tobe “Better Future Investments”.

For the purpose of this document, “Better Future Investments” are “Better Future EnablerInvestments” or “Better Future Leader Investments.”

“Better Future Enabler Investments” are defined as companies that at the time of acquisition, conduct businesses that arederiving more than 50% of their gross revenue from business operations that:

• are generating renewable energy, improving energy efficiency or seeking to reduce greenhouse gas emissions; or

• are involved in water treatment or remediation; or

• are focused on providing environmental services or otherwise focused on environmental outcomes; or

• involve technology or processes that enable businesses and/or individuals to reduce their resource use or improve theefficiency of their resource use (including by processing materials for recycling); or

• are providing nature-based technologies or solutions, providing products or services that improve biodiversityoutcomes in existing business models or prevent the loss of biodiversity (including reducing pollution, improved farmingpractices, protecting: marine life, plant life & natural ecosystems, improving forestry); or

• contribute to social welfare outcomes, including improving the safety, health or well-being of workers; or

• relate to health outcomes, including health products and health services; or• relate to education services or outcomes (including without limitation childcare); or

• involves the leasing of properties to organisations that provide healthcare, education or childcare or for social housingpurposes.

“Better Future Leader Investments” are companies that, at the time of acquisition, have a Perennial-derived Environmental,Social, Governance and Engagement Score (ESG&E Score), which exceeds the weighted ESG&E score of the benchmark indexand does not satisfy the Better Future Enabler Investments definition.

The ESG&E Score is a proprietary scoring system that has been developed by Perennial Better Future. Perennial Better Futureuses the ESG&E Score to evaluate a company’s Environmental, Social and Governance (ESG) performance. As part of the ESG&EScore, the Investment Manager undertakes an assessment on each individual ESG component and considers relevant factorsas part of its assessment. These factors include, but are not limited to:

• Environmental – greenhouse gas emission disclosures, alignment with the Paris Agreement and environmental impactof operations.

• Social – executive diversity, occupational health and safety and modern slavery risks in supply chains.

• Governance – Board independence, board expertise and skill mix, and remuneration policies.The ESG&E Score also assesses the company’s ‘Engagement’ on ESG related issues and subjectively assesses to what extent thecompany is engaged with improving ESG and sustainability outcomes within the business.

The ESG&E Scoring methodologyapplies a 20% weighting to each ‘Environmental’, ‘Social’ and ‘Governance’ component and applies a 40% weighting to‘Engagement’. This provides a total weighted score out of 10, which is then compared with the benchmark’s weighted averageESG&E score. Factors such as the outcome of Perennial Better Future’s engagement with company management and directorswill also be considered as part of the company’s assessment. Perennial Better Future may also take into account externalinformation such as publicly available data, financial disclosures, annual reports, sustainability reports, the company’s website,stockbroker research and external data sources.

The Fund does not invest in companies that, to the best of the InvestmentManager’s knowledge, receive any revenue from:

• the manufacture, distribution or sale of tobacco or alcohol products, including electronic nicotine delivery systems(ENDS) as defined by the US Food and Drug Administration (e.g. ‘vaping’ devices, e-cigarettes) alternatively described asnicotine vaping products (NVP);

• the manufacture, distribution or sale of weapons or armaments including controversial weapons and nuclear weapons;

• extraction or sale of thermal coal, metallurgical coal, uranium, oil or gas (other than recycled oil);

• gambling or betting operations;• the production, sale or distribution of pornography;

• the manufacture or distribution of toxic pesticides;

• old growth forest logging; or

• operations or transportation associated with the live exportation of animals offshore.