Magellan Infrastructure Fund

Transcription

1 About this Review Sector Infrastructure Securities Total Funds Reviewed 9 About this Fund Fund Reviewed APIR Code PDS Objective Fund Size Responsible Entity MGE0002AU To achieve superior risk adjusted returns over the medium to long term while minimising the risk of permanent capital loss. $308.8m Magellan Asset Management Limited Fund Commenced July 2007 Wholesale Fee (p.a.) 1.06% Buy / Sell Spread 0.15% / 0.15% Structure Availability About the Fund Manager Fund Manager Ownership Assets Managed in this Sector Wholesale Magellan Asset Management Limited ASX Listed $1,964.1m Years Managing this Asset Class 6 Investment Team Team Size Portfolio Manager(s) Number of Analysts 4 (3 dedicated) Gerald Stack, Dennis Eagar 4 (includes portfolio managers) Departure/Team Ratio (past 2 years) 0% Investment Process Style Typical Tracking Error Value bias 5%-7% p.a. (not targeted) Typical Stock Numbers Currency Approach Capital 100% hedged to A$ Stock Bet Limits Sub-sector Limits Country Bet Limits Max of 10% (soft) Non OECD 20% Fund Rating History March 2013 Nil Nil Recommended What this Rating Means The Recommended rating indicates that Lonsec has conviction that the fund or product can achieve its objectives and, if applicable, outperform peers over an appropriate investment timeframe. The manager or product has a number of competitive advantages in people, process and product design. The investment is a recommended entry point to access this asset class or strategy. Fund Risk Characteristics Concentration Risk Currency Capital Volatility Corporate Risk Liquidity Low Moderate High Risk categories are based on Lonsec s qualitative opinion of the risks inherent in the product s asset class and the risks relative to other products in the relevant Lonsec sector universe. Using this Fund This is General Advice only and should be read in conjunction with the Disclaimer, Disclosure and Warning on the final page. The Fund is a global infrastructure securities product and as such will generally sit within the growth component of a balanced portfolio. It is suitable for mid to high risk profile investors with a 5+ year investment time horizon. While the Fund will seek to invest in companies that deliver reliable long-term cash flows, the Fund is also subject to equity market risk. This means movements (both positive and negative) in the share prices of the underlying securities in the portfolio will affect Fund returns. Investors should therefore be aware that the Fund may experience periods of negative returns and that there is a risk of potential capital loss being incurred on their investment. As a benchmark unaware style fund it is likely to exhibit periods of significant performance variation to the Lonsec benchmark. Changes since Lonsec s Previous Review Jowell Amores commenced as a Senior Analyst in Magellan s infrastructure team in September Amores primary research responsibility is the US Utilities sector. January March 2012 September 2007 Recommended Investment Grade WE STRONGLY RECOMMEND THAT POTENTIAL INVESTORS READ THE PRODUCT DISCLOSURE STATEMENT OR INVESTMENT STATEMENT 1 Lonsec Research Pty Ltd ABN AFSL No This information must be read in conjunction with the Warning, Disclaimer, and Disclosure at the end of this document

2 What is this Fund? The Manager has established a set of rules that define its universe of investable infrastructure, which serves as the foundation for the Fund s investment approach. The Manager will generally exclude companies which are exposed to competition, commodity price movements, regulatory risk or technological obsolescence, which results in a more narrow investment universe compared to some sector peers. The Manager adopts an intrinsic value approach to investing, believing that due to market inefficiencies, security prices of listed companies sometimes fail to reflect their true worth. Stock selection is based on a long-term cash flow based analysis, with the Manager using a largely bottom up approach resulting in a value style portfolio. Whilst noting the value characteristics of the Manager s style, it is nevertheless important to note that quality is an important overlay. This means that Magellan will not necessarily invest in the stocks in the investment universe that are trading at the greatest discount to intrinsic value. The Fund typically invests in between 20 and 40 stocks and is managed in a benchmark unaware manner, with no formal stock, active weight or ex ante tracking error limits relative to its benchmark index. Lonsec believes this structure enables the Manager to impart a high degree of conviction in the portfolio which is well aligned with investors interests given the Fund s active management fee. Lonsec notes the Fund s investment approach has undergone some evolution since its inception, particularly with regard to portfolio concentration and allocations to the infrastructure and utilities subsectors. The Fund s portfolio had initially exhibited an overweight position to transport infrastructure and underweight position in utilities relative to its Lonsec assessed peers. This was a function of the Manager s higher conviction style and belief that limited alpha opportunities existed in the utilities sector due to the highly transparent nature of the regulatory process. However, significant volatility in Fund returns during the Global Financial Crisis caused the Manager to revisit this approach. Following this period, the Manager increased allocations to the utilities sector which also resulted in an increase in the number of securities in the portfolio. Lonsec also notes that the Manager retains a degree of flexibility with regard to its defined universe of investable infrastructure. Specifically, this observation refers to the recent inclusion of communications infrastructure (currently circa 9% of portfolio), which had previously been excluded from the universe due to risks of technological obsolencence. The Fund s management fee is in line with the sector average. The Fund is one of few in the peer group which applies a management fee. While Lonsec is generally supportive of this structure as a means of aligning the interests of the Manager with investors, this will result in a higher fee load compared to peers during times of strong outperformance. Lonsec Opinion of this Fund People and Resources The infrastructure investment team is comprised of four members (excluding dealing resources). While this is the smallest team in the peer group, Lonsec believes the team to be adequately resourced and experienced to manage the Fund to its investment objectives. This view is held having regard to the collective experience of the team, particularly portfolio managers Stack and Eagar, and the Fund s relatively smaller research universe compared to peers. Pleasingly, the investment team has been very stable, with just one departure since the Fund s inception. Lonsec regards the recent appointment of Amores to be a positive development, having previously noted the Fund s level of resourcing to be below that of peers. While it remains a relatively recent appointment, Amores is an experienced hire and appears to have intergrated well into the Magellan team structure and process. Both Stack and Eagar are highly experienced in the field of infrastructure investment, having 19 and 22 years industry experience respectively, which is above the average observed within the peer group. The pair have a long working relationship, having both joined Magellan in 2007 from specialist infrastructure manager CP2, where Stack was deputy Managing Director and Eagar Head of Infrastructure Research. Lonsec considers the depth of their experience to be a strength of the Fund. The investment process and investment committee structure also engages the skills and experience of the broader global equity team and in particular, Magellan Principals Hamish Douglass and Chris Mackay. Lonsec considers both Douglass and Mackay to be impressive individuals, with each having over 20 years experience in the financial services industry. Prior to founding Magellan, Douglass was the Co-Head of Global Banking at Deutsche Bank Australasia, while Mackay retired as Chairman of UBS Australasia in March Lonsec believes that due to Magellan s boutique firm structure and centralised research team (with all members based in Sydney), the Fund may lack some of the informational advantages utilised by some of its larger global peers. Such advantages may include an on the ground research presence in key global markets, access to a broad network of investment professionals, including capital market specialists and infrastructure personnel, and global trading platforms. Lonsec believes the Manager s remuneration structure establishes an adequate level of alignment of interests with investors. Variable remuneration for the investment team includes a combination of short and long term incentives with an explicit link to both the Fund s performance and analyst stock recommendations. However, variable remuneration is more closely aligned with profitability of the Manager and subjective qualitative factors. The Manager adopts a unique performance fee structure which Lonsec considers to be one of the better structures observed in the peer group. Essentially, the Fund must outperform both the Australian 10 year Government yield and the UBS Developed Infrastructure & Utilities Index Net Total Lonsec Research Pty Ltd ABN AFSL No

3 Return A$ Hedged at a minimum to qualify for a performance fee. While Lonsec is generally of the opinion that a well structured performance fee can act to align the interests of the Manager with those of investors, Lonsec also believes there are difficulties in applying an appropriate performance benchmark within the global listed infrastructure sector due to the structural deficiencies of many market capitalisation weighted indices. Investors should note that the presence of a performance fee may temper returns during periods of strong outperformance. Given their collective experience, Lonsec would view the departure of either Stack or Eagar to represent a material weakening in the Fund s capabilities. However this risk is mitigated to some extent by competitive short and long-term financial incentives. Additionally, both appear to have the requisite skills and experience to continue running the Fund in the event of either member s departure. Research and Portfolio Construction Lonsec believes the Manager has developed a transparent clearly articulated set of rules for determining quality infrastructure. This discipline serves as an effective tool for defining the research universe, framing analyst views and focusing the research effort. However, Lonsec notes a degree of flexibility is retained within this approach, as can be noted from the recent inclusion of communications infrastructure. In practice, inclusion rules may evolve in line with the Manager s views or research developments on certain sectors or stocks. Lonsec believes the Manager s three stage value ranking process establishes a strong link between the output of fundamental research and portfolio construction. Lonsec believes the methodology to be logical and transparent, with the smallest weighting derived from each ranking methodology used to define the bottom of the stock target range and the largest weighting representing the upper limit. This means the major overweight positions in the portfolio are generally also the same stocks which the Manager has modelled/ranked to have the highest discount to intrinsic value and vice versa. Lonsec considers the Manager s valuation methodology to be highly standardised. The team conducts detailed assessment of each company s cash flow generation capabilities and applies consistent equity risk premium and sector betas to derive discount rates. Lonsec believes this ensures consistency and comparability across securities. Furthermore, Lonsec believes the output of this process is supported by an appropriate level of peer review. Lonsec believes the depth and focus of the Manager s qualitative due diligence to be amongst the most thorough in the peer group. Over time, the Manager has built up highly detailed investment theses on all stocks included within its approved investment universe. This is augmented through frequent meetings with company management and engaging the skills of specialist resources when necessary. However, given the team s relatively small size, Lonsec believes the Manager may encounter difficulties when combining frequent international travel with maintaining research coverage and portfolio management responsibilities. Lonsec regards the level of accountability in the research and portfolio construction process to be appropriate, despite the level of control exerted by the Fund s Investment Committee. While the seven member committee is responsible for the decision regarding additions / removals to the approved list, stocks are championed by individual analysts and portfolio decisions are the responsibility of Stack as portfolio manager. Risk Management The Fund is benchmark unaware and does not have specific tracking error, region, or sub-sector exposure constraints. As such the level of active risk in the portfolio can potentially be higher than for some Lonsec assessed peers. However, Lonsec believes the Manager s focus on qualitative risk assessment and the level of detail in research undertaken ensures that risk management is largely embedded within its bottom up investment process. Qualitative factor analysis also forms an integral part of Magellan s process. Magellan undertakes a formal review of non-quantifiable risk factors including Agency risk, Financing risk, Business risk, Sovereign risk and Regulatory risk. A stock's qualitative score on these factors feeds into the portfolio management process. In terms of risk testing at the portfolio level, the Manager prefers to undertake a manual process rather than engaging the common risk monitoring tools and systems observed in many of its peers. While Lonsec prefers to see greater investment in risk management tools and resources, Lonsec believes the team s ability to intuitively test risk at the portfolio level is adequate, particularly given the Fund s concentrated nature and the formal oversight role of both the Infrastructure Investment Committee and the Magellan Investment Committee. Performance The Fund s performance is measured with reference to the UBS Developed Global Infrastructure & Utilities Index (A$ Hedged). Over the 3 years to January 2013, the Fund outperformed this benchmark, delivering a total return (post fees) of 14.6% versus the benchmark return of 8.8%. The Fund has also delivered strong outperformance of this benchmark over shorter performance periods of 1 and 2 years to January 2013, outperforming by 4.2% p.a. and 5.9% p.a. respectively. Lonsec measures the performance of the global infrastructure securities peer group against its own benchmark, the UBS Global Infrastructure & Utilities 50/50 Index (A$ Hedged); believing this benchmark to be more representative (in terms of sub-sector exposures) of the underlying fund portfolios. Over the three-year period to 31 January 2013, the Manager has outperformed this benchmark by 2.8% p.a. Fund performance has been broadly in line with the peer group average over the longer term (3 and 5 to January 2013), while the Fund has underperformed the benchmark over the one year period to January Given the Fund s benchmark unaware approach it is also relevant to consider the Fund s Sharpe Ratio, a measure of absolute reward for absolute risk taken. The Fund s Sharpe Ratio of 1.10 over the three years to 31 January 2013 is a pleasing result, suggesting investors have been sufficiently rewarded for risk taken. Lonsec Research Pty Ltd ABN AFSL No

4 Capacity As at December 2012, Magellan managed approximately $2b in global infrastructure securities, with the Fund representing $308m of this amount and the balance in a less active enhanced beta style strategy. At these FUM levels, Lonsec does not consider the Manager to have any major capacity issues and current FUM is below the Manager s view of the potential capacity of the strategy of around $7 billion. However, it should be noted that the Fund is likely to encounter capacity issues sooner than some sector peers, owing to the Manager s narrower infrastructure definition and therefore smaller investment universe. There are positives and negatives to low or high levels of FUM, however on balance (and all other factors being equal) Lonsec believes managers with smaller FUM are better placed to add value. Larger fund managers typically have better access to key decision makers (CEOs etc), may gain better execution pricing and preferential access to IPOs. The infrastructure surrounding large managers is also extensive as compared to some smaller boutique operations. However, managing a smaller pool of funds means that the Manager is less likely to confront liquidity issues and is likely to be more nimble in the market (as it takes a shorter time for a position to be established or sold down). Overall Lonsec has maintained its Recommended rating of the Fund at this year s review. This rating primarily reflects Lonsec s regard for the small but highly experienced investment team and the depth and quality of the investment due diligence process. Lonsec notes the Manager adopts a strong discipline in defining investable or quality infrastructure stocks and the investment team also derives valuable insight from Magellan s leadership group and broader global equities capability. However, Lonsec notes the Manager s adherence to style, particularly with regard to investing certain infrastructure subsectors has displayed a small element of drift since the Fund s inception. The absence of some of the global resources utilised by larger peers and small team size are also slight detractors from Lonsec s rating. People and Resources Corporate Overview Magellan Asset Management (MAM) is a fully owned subsidiary of the Magellan Financial Group (MFG) and was established in MFG is listed on the Australian Stock Exchange and had a market capitalisation of $1.1b as at March MAM has the support of several prominent Australian organisations and business people, including Cavalane Holdings Pty Limited (Packer family) and Naomi Milgrom (Proprietor and CEO of Sussan Group). MFG Chairman, Chris Mackay and CEO Hamish Douglass are also shareholders of MFG. MAM currently manages four funds; the ASX listed Magellan Flagship Fund (launched December 2006), the Magellan Global Fund and the, both launched in July 2007, and the Magellan Core Infrastructure Fund (December 2009). As at December 2012, firm wide funds under management totaled approximately A$6.4b. Team Structure The team is centralised, with all members based in Magellan s Sydney office. Coverage responsibilities are segregated by infrastructure subsector, however all stocks have more than one analyst responsible for research which ensures that the lead analyst s view is subject to a reasonableness test and assists with key person risk management. Details of the investment team are summarised in the following table: Team Structure Team Member Sector Responsibility Gerald Stack Portfolio Manager, Head of Research Dennis Eagar Portfolio Manager Kris Webster Senior Investment Analyst Jowell Amores Senior Investment Analyst Airports / Utilities Experience* 6/18 Toll Roads 6/22 Ports & Communications US Pipelines, Utilities 5/10 >1/14 * Years with the Manager / years in the industry Size and Experience Gerald Stack (Portfolio Manager) has been involved in infrastructure investment since Prior to joining Magellan in 2007, Stack was a director of Capital Partners (now CP2) for a period of 8 years, where he was Head of Investment Research and a member of both the Management and Investment Committees. Dennis Eagar (Portfolio Manager) was previously Head of Infrastructure Research at Capital Partners for a period of 4 years, where he led a team of infrastructure analysts covering Australian and selected global infrastructure stocks. Prior to this, Eagar was a Division Director of Macquarie Bank s Infrastructure Funds Management Division. During his time at Macquarie, Eagar was Chairman of Airport Motorway Group during the construction and initial operating phase of the Lonsec Research Pty Ltd ABN AFSL No

5 Eastern Distributor toll road, as well as serving as a board member for two other Sydney toll roads. Stack and Eagar are supported by Senior Analyst Kris Webster (who joined the firm in 2008 also from Capital Partners), and recent analyst addition Jowell Amores. However, Lonsec notes that Webster has responsibilities outside of the infrastructure team - covering the technology sector for the broader global equities strategy. Investment Committee The Magellan Investment Committee meets fortnightly to review analytical efforts and provide input into strategy for all funds. This team is comprised of members of infrastructure investment team, together with the two principals of MFG, Chris Mackay and Hamish Douglass, and Portfolio Managers Nikki Thomas and Dom Giuliano. Magellan Infrastructure Investment Committee Hamish Douglass CEO, Portfolio Manager Chris Mackay Chairman, Portfolio Manager (MFF) Gerald Stack Portfolio Manager - Infrastructure Dennis Eagar Portfolio Manager - Infrastructure Kris Webster Equity Analyst Nikki Thomas Portfolio Manager Domenico Giuliano Portfolio Manager Years Experience^ Industry Firm Remuneration / Alignment of Interests The remuneration structure of the investment team is comprised of base salary plus a bonus component linked to: Research Approach Investment Approach Investment Style Value No. of stocks in universe Approximately 300 No. of stocks fully modeled 130 Key Screens Majority of revenue derived from owning and operating basic services to a community) Sector (Transport, Utilities, Social) Key infrastructure investment criteria (exclude competitive businesses, assets exposed to political or regulatory risk, technological obsolescence) Top-Down 0% Bottom-Up 100% Qualitative Analysis Company strategy, structure and governance Key revenue and earnings drivers External environment including industry and macroeconomic issues Research Inputs Management meetings Company and Industry material Meetings with specialists in areas such as regulation and traffic forecasting Consultation with regulators, competitors and suppliers Broker research Use of broker research Utilised to increase the efficiency of in-house research and to gain perspective on market views and consensus Valuation Method Discounted Cash Flow (WACC) Price/Earnings, EBITDA multiples, and Regulated Asset Backing used as cross checks Profitability of the business; Profitability of the Fund; and Individual performance based on agreed internal objectives including stock recommendations. In addition, the Manager offers a long term incentive share purchase plan, which also acts as a retention strategy given the vesting periods. Lonsec Research Pty Ltd ABN AFSL No

6 Portfolio Construction Overview Indicative portfolio weightings are initially determined by relative premiums of assessed value to traded price. Stocks are weighted in order of preference under three different approaches: The premium of the assessed intrinsic value of equity to the market value of equity; The premium of the assessed intrinsic enterprise value to the market implied enterprise value; and Risk adjusted returns determined by assuming the share price reaches assessed intrinsic value in a five-year timeframe. It is assumed that a stock s intrinsic value will escalate at the assessed cost of equity less distribution payments. Three separate portfolio weightings are determined using the above methods. The smallest weighting that is derived from the above three methodologies represents the bottom of the Fund s target range and conversely, the largest weighting represents the upper limit. Weightings will be adjusted to reflect any qualitative risks, correlation to common factors (currency risk, political risk) and having regard to the following risk limits: Risk Limits Portfolio Parameters Minimum number of securities 20 Maximum single security weighting Soft 10%; Hard 20% Cash 0-50% Non-listed holding (e.g. IPO) 0-10% Non OECD exposure 0-20% Market capitalisation <$500m 0-20% Risks An investment in the Fund carries a number of standard investment risks associated with investment markets. These include performance, liquidity, counterparty, market and tax risks. These and other risks are outlined in the PDS and should be read in full and understood by potential investors. Lonsec considers the following to be the major risks: Equity Market Investments in equity markets are subject to numerous factors which may have an impact on the performance of an investment (both positive and negative). Unexpected changes in economic, technological, structural, regulatory or political conditions can have an impact on the returns of all investments within a particular market. Derivatives There is scope in the PDSs to implement various derivative strategies. However, Lonsec does not expect derivatives to be a widely used given that this is not the intention of the Manager. Derivatives are not intended to be used to speculate or gear the Fund. Currency The Manager seeks to mitigate currency risk by passively hedging the foreign currency exposure of the capital value of the Fund by using 90-day forward contracts. The Manager will endeavour to keep the Fund s capital value fully hedged in all cases where the cost of hedging is not prohibitive (for example small exposures to non-oecd currencies may not be hedged). The risk controls around the level of hedging are +/-5% for each foreign exchange exposure, meaning the Fund will generally operate in a range of 95% to 105% hedge in the period between resets. The currency hedging process is executed by Magellan s dealer. Maximum of issued capital in any one company 20% Cash borrowing Up to 20% of Fund NAV* *While the Fund is permitted to borrow, this facility has not been used to date and is unlikely to be used in the future. The facility may be used in the short term to fund large redemption requests. Lonsec Research Pty Ltd ABN AFSL No

7 Quantitative Performance Analysis Annualised after-fee % returns as at 31 January Year 2 Years 3 Years 5 Years Fund Peer Group Fund Peer Group Fund Peer Group Fund Peer Group Performance (% pa) Standard Deviation (% pa) Excess Return (% pa) Outperformance Ratio (%) Worst Drawdown (%) Sharpe Ratio Information Ratio Tracking Error (% pa) Fund: Lonsec Benchmark: UBS Global Infrastructure & Utilities Index (A$ Hedged, Net TR) Peer Group: Lonsec universe of Global Infrastructure Securities Funds Monthly Outperformance over Three Years Outperformance Consistency over Three Years Performance (%) Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Outperformance Ratio (%) All Markets Up Markets Down Markets Benchmark: UBS Global Infrastructure & Utilities TR Index AUD Hedged Benchmark: UBS Global Infrastructure & Utilities TR Index AUD Hedged Growth of $10,000 Five Years Risk / Return Chart over Three Years Value ($) Jan-10 Jan-09 Jan-08 Jan-11 Jan-12 Jan-13 Performance (%) Risk (%) Peers Lonsec Peer Group Average UBS Global Infrastructure & Utilities TR Index AUD Hedged UBS Global Infrastructure & Utilities TR Index AUD Hedged Lonsec Research Pty Ltd ABN AFSL No

8 Glossary Absolute Return Excess Return Standard Deviation Tracking Error Sharpe Ratio Information Ratio Worst Drawdown Time to Recovery Top line actual return, after fees Return in excess of the benchmark return Volatility of monthly Absolute Returns Volatility of monthly Excess Returns against the benchmark (the Standard Deviation of monthly Excess Returns) Absolute reward for absolute risk taken (outperformance of the risk free return (Bank Bills) / Standard Deviation) Relative reward for relative risk taken (Excess Returns / Tracking Error) The worst cumulative loss ( peak to trough ) experienced over the period assessed The number of months taken to recover the Worst Drawdown Analyst Disclosure & Certification Analyst remuneration is not linked to the research or rating outcome. Where products are mentioned, the Analyst(s) may hold the product(s) referred to in this document, but Lonsec considers such holdings not to be sufficiently material to compromise the rating or advice. Analyst holdings may change during the life of this document. The Analyst(s) certify that the views expressed in this document accurately reflect their personal, professional opinion about the matters and financial product(s) to which this document refers. Date Prepared: March 2013 Analyst: Andrew Coutts Release Authorised by: Peter Green LONSEC STRONGLY RECOMMENDS THIS FUND UPDATE BE READ IN CONJUNCTION WITH THE FUND REVIEW AND INVESTMENT STATEMENT OR PRODUCT DISCLOSURE STATEMENT IMPORTANT NOTICE: This document is published by Lonsec Research Pty Ltd ABN , AFSL No (Lonsec). Please read the following before making any investment decision about any financial product mentioned in this document. Disclosure at the date of publication: Lonsec receives a fee from the Fund Manager for researching the product using comprehensive and objective criteria. Lonsec may also receive a fee from the Fund Manager for subscribing to research content and other Lonsec services. Lonsec receives fees for providing investment consulting advice to clients, which includes model portfolios, approved product lists and other advice. Lonsec s fee is not linked to the rating(s) outcome. Lonsec, its representatives and/or their associates may hold the product referred to in this document, but detail of these holdings are not known to the Analyst(s). Warnings: Past performance is not a reliable indicator of future performance. Any express or implied rating or advice presented in this document is a class service and not a personalised service (as defined in the Financial Advisers Act 2008(NZ)) or limited to General Advice (as defined in the Corporations Act (C wth)) and based solely on consideration of the investment merits of the financial product, without taking into account any person s investment objectives, financial situation and particular needs ( financial circumstances ). It does not constitute a recommendation to purchase, redeem or sell the relevant product. Before making an investment decision based on the rating(s) or advice, the reader must consider whether it is personally appropriate in light of their financial circumstances, or seek independent financial advice on its appropriateness. If our advice relates to the acquisition or possible acquisition of particular financial product, the reader should first obtain and consider the relevant Investment Statement or Product Disclosure Statement. Lonsec s research process relies upon the participation of the Fund Manager. Should they no longer be an active participant in Lonsec s research process, Lonsec reserves the right to withdraw the document at any time and discontinue future coverage of the product. Disclaimer: This document is for the exclusive use of the person to whom it is provided and not to be relied upon by any other person. Lonsec makes no representation, warranty or undertaking in relation to the accuracy or completeness of the information presented in this document, which is drawn from unverified public information. Conclusions, ratings and advice are reasonably held at the time of completion but may change without notice. Lonsec assumes no obligation to update this document following publication. Except for any liability which cannot be excluded, Lonsec, its directors, employees and agents disclaim all liability for any error or inaccuracy in, or omission from, this document or any loss or damage suffered by the reader or any other person as a consequence of relying upon it. Lonsec Research Pty Ltd ABN AFSL No