TAILIEUCHUNG - Advance Alliance Investment Funds

This section develops an econometric framework that allows an investor to combine in- formation in the data with prior beliefs about both pricing and skill. Nonbenchmark assets allow us to distinguish between pricing and skill, and they supply additional information about funds' expected returns. In addition, nonbenchmark assets help account for common variation in funds' returns, making the investment problem feasible using a large universe of funds. The Bayesian econometric framework here is very similar to that in P¶ astor and Stambaugh (2001), who address performance estimation rather than investment decision making. Consequently, they specify noninformative prior beliefs about the degree of skill a fund manager might possess | Advance Alliance Investment Funds Additional Information booklet Issued 1 July 2012 Contact details If you have any questions or would like more information about Advance Asset Management Limited ABN 98 002 538 329 AFSL 240902 you can contact us in the following ways. phone 1800 819 935 fax 02 9274 5211 mail GPO Box B87 Perth WA 6838 How to read this document This booklet provides additional information about topics specified under the prescribed sections of the Product Disclosure Statements PDS for the Advance Alliance Investment Funds. The information in this booklet forms part of these PDSs. This is important information you should read before making a decision to invest in the Funds. The information in this document is general information only and doesn t take into account your personal financial situation or needs You may wish to consult a licensed financial adviser to obtain financial advice that s tailored to suit your personal circumstances. Investments in the Funds can only be made by someone receiving the PDS including an electronic version in Australia. If you re in possession of this PDS outside Australia you should seek advice about restrictions on investing. Failure to comply with relevant restrictions may violate laws. ADVANCE This page has been left blank intentionally Advance Alliance Investment Funds Additional Information booklet Contents 1. About Advance Asset Management Limited 2. How the Funds work 3. Benefits of investing in the Funds 4. Risks of managed investment schemes 5. How we invest your money 6. Fees and costs 7. How managed investment schemes are taxed 8. How to apply 9. Other information 4 7 11 13 20 22 29 32 34 Advance Alliance Investment Funds Additional Information booklet

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