ARC Funds Limited has entered into an agreement with Lanyon Asset Management Pty Ltd. (ACN 140 631 714) (Lanyon Asset Management or Lanyon) which will see the two parties work together on the development of a potential fund to be managed by Lanyon. Lanyon Asset Management is a value-focused boutique equities investment manager based in Adelaide and Sydney. Founded in 2010 by David Prescott, Lanyon seeks to invest in undervalued equities that offer significant potential for long-term return.

As a first step in the partnership, ARC and Lanyon have signed a Fee Share and Services Agreement, whereby ARC and Lanyon will work to promote the fund and provide support and services to each other (as relevant) in connection with the development, growth and distribution of the fund. Under the agreement, ARC will be compensated by way of a fee share on management and performance fees earned by Lanyon as the Investment Manager of the fund. ARC has agreed to invest an initial amount of $50,000 to support the growth and development of the fund.

It is the current intention of ARC for Lanyon to represent the value manager in ARC's multi-affiliate platform model, with a focus on global value. The parties will continue to work together on next steps and ARC will keep the market informed as and when necessary, with regards to further details of the partnership. For clarity, the agreement does not relate to ARC's prior involvement with Lanyon Investment Company Limited (ACN 608 411 347), with ARC Managing Director Harley Grosser having since resigned from the board of that company.