FC W Pen-PM Cap TTR Enhanced Yield

The option aims to invest the majority of its assets in cash and interest bearing securities. The option has the ability to minimise or hedge against interest rate, credit spread and equity risk. Derivatives may be used to synthetically create or replicate underlying positions; however, derivatives may not be used to leverage the portfolio. PM Capital attempts to hedge all foreign currency exposure back to the Australian dollar to substantially reduce the exposure of the option to the risks associated with movements in foreign exchange rates.