Monthly update February 2018

Transcription

1 Date 19 March 2018 Theme Report Monthly update February 2018 Michael Rong michael.rong@wilsonsadvisory.com.au; William Liu william.liu@wilsonsadvisory.com.au Domestic market The S&P/ASX 200 Accumulation Index rose 0.4% in February, with losses during the start of the month fully regained on a total return basis. In price terms, the index hit a high of 6,121 points early in February, bottoming at 5,821 points (a fall of 4.9%), and then recovering to end the month at 6,016 points (9 recovered from the start of the month). February s gains were driven by the health care sector (+7.), with CSL (+11.4%) the top performer on the back of record HY profit and a lift in its full-year guidance. Consumer staples (+2.1%) shares were also higher, with strong gains from market darling A2 Milk (+47.) following a big earnings beat, while Woolworths (+2.) enjoyed a solid earnings performance, including a 3.8% rise in sales. The telecom sector (-6.2%) was the worst performing for the month, with Telstra (-4.4%) still out of favour since reducing its dividend, and Vocus Group (-18.1%) hit hard following a downgrade to its FY18 guidance and the departure of CEO Geoff Horth. The energy sector (-3.8%) also came under pressure, with Whitehaven Coal (-8.9%) battling higher-than-expected operating costs, albeit with the offset of a buoyant coal price. Global markets The MSCI World ex-australia Index returned -0.6% in Australian dollar terms and -3.6% in local currency terms as global equity markets were rocked by volatility and a sharp correction early in the month. The US S&P 500 Index was down 3.9% over the month, hitting a low of 2,581 points to end at 2,714. The VIX, a measure of implied volatility, spiked to a high of 37.3 to end the month at 19.9 still elevated compared to recent historic lows. IT was the only sector to gain (+0.1%), boosted by Apple (+6.8%) and Hewlett Packard (+13.4%). Energy (-10.8%) was the biggest losing sector, with oil giant Marathon falling 19.9%, with consumer staples (-7.8%) not far behind, with defensive stocks like Walmart (-15.6%) and Kraft Heinz (-14.) failing to recover from the broader market correction. The US Dow Jones Index fell 4.3% but was still higher than at the end of In Europe, the STOXX Euro 600 Index fell 4., with falls in telecom (-5.1%) and utilities (-4.8%). The German federal court paved the way for cities to ban or tax diesel cars, with the price of major auto shares reacting negatively, including Volkswagen (-9.) and Daimler (-4.4). In Asia, the Chinese CSI 300 Index was down 5.9%, Japan s Nikkei 225 Index fell 4., and Hong Kong s Hang Seng dropped 6.2%. Global developed market shares fell 3. and emerging market shares fell 3.9% in local currency terms. Market wrap Index December return S&P 500 Index (3.7%) MSCI World Index (3.) MSCI Emerging Markets (AUD) (0.9%) FTSE 100 Index (3.4%) DAX (Germany) (1.6%) CSI 300 Index (5.9%) Nikkei 225 Index (4.) STOXX Europe 600 (3.8%) S&P/ASX 200 Index 0.4% S&P/ASX All Ordinaries 0.2% S&P/ASX Small Ordinaries 0. Source: Capital IQ. All returns in local currency. Table of contents Month in review markets 1 Our LIC key preferences 3 LIC key metrics 13 Charts: Monthly change in premium/discount to NTA 16 Performance metrics 18 Charts: NTA premium/discount and total return vs benchmark Charts: 12-month historical dividend yield Charts: Pre-tax NTA premium discount vs long-term average Charts: Pre-tax NTA growth vs NTA premium/discount Charts: Historical premium/discount to pre-tax NTA Issued by Wilsons Advisory and Stockbroking Limited ( Wilsons ) ABN AFSL No , a participant of ASX Group. Past performance is not a reliable indicator of future performance. This document should be read in conjunction with the disclosures and disclaimer at the end of this document.

2 Currencies The AUD was flat in trade-weighted terms over the three months to the end of February, with cooling commodity prices and reduced export volumes offsetting rises in the start of the year. The AUD rose 3. against the USD, hitting high of in late January to end February at The AUD was down against the JPY (-2.3%) and the NZD (-2.3%) and up against the EUR (+0.4%) and GBP (+1.). The US Dollar Index fell 2.4% over the three months to February. The USD hit a high of against the EUR in November and a low of 06 in January to end February at and flat over three months. The USD was down against the JPY (-5.8%) and flat against the EUR, GBP and CHF. AUD weakness in February in part reflected a vanishing yield premium, with the US Fed expected to hike rates, possibly as early as March. The US Dollar Index rose 1.7% in February but still appears to be in a downward trend. Concerns over the rising US budget and current account deficits may have contributed to US dollar falls over recent months. Commodities The commodities rally paused for breath in February, with metals flat or falling and a dip in oil putting pressure on what has become a crowded futures trade. Most base metals fell through the month, including lead (-4.2%), aluminium (-3.9%), zinc (-2.6%), copper (-2.6%) and tin (-0.7%), while nickel (+1.4%) managed to gain. Gold fell 2. to finish at US $1,318.31/oz in what proved a volatile month. The spot price of iron ore delivered to China (62% Fe) rose 5.6% from US $71.61/t to $75.59, pushing towards its August 2017 high of $ In oil markets, the Brent spot price fell 2. from US $67.78/b to $66.08, while WTI fell 5.2% from $64.82 to $ World equity indices price performance (rebased 01 Jan 2016) Jan 16 Apr 16 Jul 16 Oct 16 Jan 17 Apr 17 Jul 17 Oct 17 Jan 18 MSCI World S&P/ASX 200 Small Ords S&P 500 STOXX Europe 600 Nikkei 225 Source: Wilsons, Lonsec, S&P Capital IQ Page 2

3 LIC key preferences We provide an overview of our preferred LICs within each category: 1. Domestic equities large/medium cap and medium/small cap 2. Absolute return funds 3. International equities 4. Specialist funds When selecting these funds we examined their performance against the following key metrics: NTA and total return (share price and dividends paid) performance has the LIC delivered on its investment objective of outperforming its underlying benchmark? Dividends paid and stability of dividends paid has the LIC paid a dividend to shareholders and has there been a stable and continuous dividend paid profile? Premium/discount to NTA what is the current premium/discount to NTA? How has the share price traded relative to its NTA through time? Liquidity is there sufficient liquidity to enter and exit the fund? Underlying management team is the manager well regarded in the market? Is there transparency in the underlying portfolio and the team s investment process? Company ASX code Investment focus Company ASX code Investment focus Australian Equities Fixed Income AMCIL AMH Large/Medium Cap Metrics Credit Partners MXT Australian Corporate Loans QV Equities QVE Medium Cap Specialist Shares Spheria Emerging Companies SEC Small Cap Blue Sky Alternatives Access Fund BAF Alternative Assets Acorn Capital Investment ACQ Small Cap Absolute Return Watermark Market Neutral Fund WMK Market Neutral International Equities Antipodes Global Investment Company APL Global VGI Investment Partners VGI Global Page 3

4 Domestic equities large cap: AMCIL (AMH) Key data Investment style Benchmark Management fee 0.77% Performance fee Market cap All cap, value S&P/ASX 200 Accumulation Index No $234.0m Listing date 10 February 2000 Share price As at 15/03/2018 $0.90 NTA at 28/02/2018 Pre-tax NTA $0.97 Post-tax NTA $0.89 Share price premium/discount to NTA Pre-tax NTA -8% Post-tax 1% 3-year average -2% 12-month historical Dividend yield 3.9% Gross dividend yield 5.6% Source: Wilsons, company data, IRESS *NTA performance is exclusive of dividends paid. Total return is share price and dividends paid. Fund description AMCIL manages a concentrated investment portfolio comprising 40 to 50 stocks covering large and small companies in the Australian equity market. As a result, small companies by market size can have an equally important impact on portfolio returns as larger companies in the Australian market. The number of holdings in the portfolio will depend on market conditions and investment opportunities. The selection of stocks in the portfolio is based on attractive valuations as well as the outlook for growth and the competitive structure of the industry. Given the concentrated investment focus of AMCIL, holdings will be sold from time to time to fund additional investments to the portfolio. Portfolio performance* Total return Total return out/under-performance 1yr 3yr 5yr 1yr 3yr 5yr 4% 17% 48% -6% -3-3 Pre-tax NTA performance Pre-tax NTA out/under-performance* 1yr 3yr 5yr 1yr 3yr 5yr 7% 2% -13% Share price and NTA profile Sector allocation Top holdings as at 28 February 2018 Not disclosed BHP Billiton 7.48% Westpac Banking Corporation 4.71% National Australia Bank 4.58% CSL 4.4 Lifestyle Communities 4.16% Page 4

5 Domestic equities medium cap: QV Equities (QVE) Key data Investment style Value, medium cap, ex top 20 Benchmark Management fee 1.1 Performance fee Market cap S&P/ASX 300 Accumulation Index excluding the S&P/ASX 20 Accumulation Index No $333.1m Listing date 22 August 2014 Share price As at 15/03/2018 $1.21 NTA at 28/02/2018 Pre-tax NTA $1.22 Post-tax NTA $1.17 Share price premium/discount to NTA Pre-tax NTA -1% Post-tax 3% 3-year average 3% 12-month historical Dividend yield 3. Gross dividend yield 5. Source: Wilsons, company data, IRESS *NTA performance is exclusive of dividends paid. Total return is share price and dividends paid. Fund description The investment objective is to provide long-term capital growth over a five year-plus investment horizon through investment in a diversified portfolio of quality, undervalued ASX-listed equities and other investment securities, outside the ASX top 20 securities. The ASX top 20 s composition is very concentrated by sector, with the financials and materials sectors combined representing almost 7 of holdings. An investment portfolio that is based on stocks outside the top 20 has a much broader and evenly spread set of sectors. It is QV s belief that companies ex the top 20 can still be leaders in their field with competitive advantages over their peers and strong recurring and predictable earnings offering greater opportunities for above-market returns. As well as long-term capital growth, Investors Mutual (QV is one of IML s funds) is focused on long-term income growth, seeking investment opportunities that pay sustainable and growing dividends with active franking credits. The portfolio is managed from an Australian investor s perspective, with tax being an important consideration in its daily management. Portfolio performance* Total return Total return out/under-performance 3m 6m 1yr 3m 6m 1yr - -8% -6% -7% -16% -16% Pre-tax NTA performance Pre-tax NTA out/under-performance* 3m 6m 1yr 3m 6m 1yr 3% 3% 2% -3% -1% Sector allocation Share price and NTA profile Sep-14 Feb-15 Jul-15 Dec-15 May-16 Oct-16 Mar-17 Aug-17 Jan-18 Top holdings as at 28 February Tox Free Solutions 4.1 Amcor 4.0 Pact Group 3.9 Sonic Healthcare 3.9 Crown Resorts Page 5

6 Domestic equities small cap: Spheria Emerging Companies (SEC) Key data Investment style Benchmark Management fee 1.0 Performance fee Market cap Value, small/micro cap S&P/ASX Small Ords Accumulation 2 (plus GST) of the outperformance versus the benchmark $132.3m Listing date 04 December 2017 Share price As at 15/03/2018 $ NTA at 28/02/2018 Pre-tax NTA $2.08 Post-tax NTA $2.06 Share price premium/discount to NTA Pre-tax NTA -4% Post-tax -3% 3-year average 12-month historical Dividend yield Gross dividend yield N/A N/A Source: Wilsons, company data, IRESS *NTA performance is exclusive of dividends paid. Total return is share price and dividends paid. Fund description Spheria is an Australian small cap and microcap fund manager with a combined 40 years of investment experience and an excellent track record, generating top-quartile returns to have relatively low risk. The manager will seek to purchase securities in businesses where the present value of future free cash flows can be reasonably ascertained, and the security is trading at a discount to the assessed fundamental valuation. Preference will be given to companies it considers to have relatively low risks entities that are geared to a level that the manager considers appropriate given the nature of the relevant businesses and have free cash flow to support that relevant level of gearing. Portfolio performance* Total return 3m 6m 1yr N/A N/A N/A Pre-tax NTA performance 3m 6m 1yr N/A N/A N/A Share price and NTA profile Sector allocation Top holdings as at 28 February 2018 Not disclosed Sirtex Medical Jan-18 Jan-18 Jan-18 Feb-18 Feb-18 Mar-18 AWE 8.01% Navitas 4.5 Bega 4.3 Class 4.2-2% -4% -6% -8% -1-12% Wilsons Corporate Finance Limited (ACN : AFSL ) acted as Lead Arranger and Joint Lead Manager in the December 2017 IPO of Spheria Emerging Companies Limited securities for which it received fees or will receive fees for acting in this capacity. This document should be read in conjunction with the disclosures and disclaimer at the end of this document. Page 6

7 Domestic equities small cap: Acorn Capital Investment (ACQ) Key data Investment style Benchmark Management fee 0.9 Performance fee Market cap Neutral, small/micro cap (incl unlisted) S&P/ASX Small Ordinaries Accumulation Index 2 of outperformance of funds NAV to the benchmark, subject to various tests $60.7m Listing date 01 May 2014 Share price As at 15/03/2018 $1.16 NTA at 28/02/2018 Pre-tax NTA $1.31 Post-tax NTA $1.25 Share price premium/discount to NTA Pre-tax NTA -12% Post-tax -8% 3-year average month historical Dividend yield 3.1% Gross dividend yield 4.4% Source: Wilsons, company data, IRESS *NTA performance is exclusive of dividends paid. Total return is share price and dividends paid. Fund description One of Australia s few specialist listed funds to invest in Australian microcap shares, Acorn Capital focuses on this generally neglected part of the market because of the lack of research in this area provides scope to uncover growth opportunities. Acorn aims to exploit inefficiencies in the pricing of stocks that arise from information gaps about microcaps, and to identify opportunities for long-term growth. The fund is style and sector neutral, typically holding a portfolio of stocks with a low expected portfolio turnover. In November, two of Acorn s unlisted investments (Telix Pharmaceuticals and Ocean Grown Abalone) listed on the ASX contributing to the recorded performance of 8.8% in the month, compared to the 3.9% return of the S&P/Small Ordinaries Accumulation Index. Acorn has also announced the $7.5m acquisition of seven assets from Washington H Soul Pattinson. The acquisition will be funded by share issuance at its post-tax NTA. With part of the consideration deferred, this should be seen as an endorsement of Acorn s management team. The pro-forma market cap post the transaction will lift from $50m to $57m. Acorn has recently announced its intention to pay a higher annual dividend target (up from 3%) of closing post-tax NTA (franked to the highest possible extent). With greater size and higher dividend payments it is possible that Acorn s discount to NTA could reduce. Portfolio performance* Total return Total return out/under-performance 3m 6m 1yr 3m 6m 1yr 17% 32% 23% 14% 18% 6% Pre-tax NTA performance Pre-tax NTA out/under-performance 3m 6m 1yr 3m 6m 1yr 12% 2 14% 9% 6% -3% Sector allocation Not disclosed Share price and NTA profile -3 Jun-14 Nov-14 Apr-15 Sep-15 Feb-16 Jul-16 Dec-16 May-17 Oct-17 Mar-18 Top holdings as at 28 February 2018 Genea* 4.0 Telix Pharmaceuticals 3.6 Calix* 3.2 Redbubble 2.9 Moula Money* 2.5 * Unlisted Page 7

8 Absolute: Watermark Market Neutral (WMK) Key data Investment style Benchmark Management fee 1.0 Performance fee Market cap All cap, market neutral, domestic and global mandate RBA cash rate 2 (plus GST) of performance above the benchmark $70.1m Listing date 18 July 2013 Share price As at 15/03/2018 $ NTA at 28/02/2018 Pre-tax NTA $0.95 Post-tax NTA $0.96 Share price premium/discount to NTA Pre-tax NTA -16% Post-tax -17% 3-year average - Fund description In a market-neutral structure, returns are derived from the difference in performance between a long and a short portfolio of shares. As both portfolios are of equal size, the fund is fully hedged, retaining little or no net exposure to the share market. Irrespective of whether the portfolios are rising or falling, a positive return is achieved when the long portfolio outperforms the short. In this way, returns from a market neutral strategy will have no correlation with the performance of the broader share market, reflecting instead the investment manager s success in selecting the right securities. While the share market is generally efficient in valuing companies, there will always be a select group of companies that are mispriced at any given point in time. Watermark s investment strategy allows investors to benefit from its success in identifying strong companies to invest in and weaker companies to sell short, without being fully exposed to the volatility and risks of the share market. Sector exposure Utilities Telco IT Materials Industrials Health Care REITs Financials Share price and NTA profile -2 Aug-13 Feb-14 Aug-14 Feb-15 Aug-15 Feb-16 Aug-16 Feb-17 Aug-17 Feb-18 Portfolio performance* Total return Total return out/under-performance month historical Dividend yield 2. Gross dividend yield 3. Source: Wilsons, company data, IRESS *NTA performance is exclusive of dividends paid. Total return is share price and dividends paid. Energy Cons Staples Cons Disc Short Long 6m 1yr 3yr 6m 1yr 3yr -14% -17% 13% -14% -18% 11% Pre-tax NTA performance Pre-tax NTA out/under-performance 6m 1yr 3yr 6m 1yr 3yr - -8% 2% -6% -9% Page 8

9 Absolute: VGI Investment Partners (VG1) Key data Investment style Benchmark Absolute return/value (long/short) N/A Management fee 1.5 Performance fee Market cap 1 of the portfolio s performance subject to a high watermark mechanism $572.5m Listing date 28 September 2017 Share price As at 15/03/2018 $2.08 NTA at 28/02/2018 Pre-tax NTA $2.05 Post-tax NTA $2.06 Share price premium/discount to NTA Pre-tax NTA 1% Post-tax 1% 3-year average 1% Fund description Access to a concentrated portfolio that will predominantly comprise long and short positions in global listed securities. The portfolio will be actively managed with a focus on capital preservation and aims to generate superior risk-adjusted returns over the long term (>5 years). The listed vehicle provides access to an investment strategy and an investment manager that had only previously been accessible to wholesale investors with a $1m minimum investment. We view the investment manager favourably and believe that the team has deep expertise across equity markets; since inception in 2008 it has successfully implemented the same investment strategy with a strong and robust investment process. Portfolio performance* Sector allocation Not disclosed Total return 3m 6m 1yr -1% N/A N/A Pre-tax NTA performance 3m 6m 1yr N/A N/A Share price and NTA profile Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Top holdings as at 28 February 2018 CME Group 8.0 Colgate Palmolive % 1 8% 6% 4% 2% -2% 12-month historical Dividend yield Gross dividend yield N/A N/A Mastercard 4.0 Medibank Private 4.0 Source: Wilsons, company data, IRESS *NTA performance is exclusive of dividends paid. Total return is share price and dividends paid. The Coca-Cola Co. 4.0 Wilsons Corporate Finance Limited ACN , AFSL acted as Joint Lead Manager in the September 2017 IPO of VGI Partners Global Investments Limited securities for which it received fees or will receive fees for acting in this capacity. This document should be read in conjunction with the disclosures and disclaimer at the end of this document. Page 9

10 International: Antipodes Global Investment Company (APL) Key data Investment style Benchmark Management fee 1.1 Performance fee Market cap Long/short, value MSCI All Country World Net Index in AUD 1 of net outperformance, subject to a high watermark $424.2m Listing date 18 October 2016 Share price As at 15/03/2018 $1.24 NTA at 28/02/2018 Pre-tax NTA $1.29 Post-tax NTA $1.24 Share price premium/discount to NTA Pre-tax NTA -4% Post-tax 3-year average 12-month historical Dividend yield Gross dividend yield N/A N/A N/A Source: Wilsons, company data, IRESS *NTA performance is exclusive of dividends paid. Total return is share price and dividends paid. Fund description Long-short global securities investment portfolio with a currency overlay. The portfolio will aspire to accumulate wealth over the long term by generating positive returns in excess of the benchmark at below-market levels of risk. The manager seeks to purchase securities in what it considers to be great businesses that are not valued as such and build a high conviction portfolio with a capital preservation focus. Investors should be aware that returns can vary considerably from broad index returns. Antipodes was formed in March 2015 by Jacob Mitchell with the backing of Pinnacle Investment Management. The portfolio manager, Mr Mitchell, has more than 20 years investment experience and prior to forming Antipodes was Deputy Chief Investment Officer and Portfolio Manager at Platinum Asset Management. Portfolio performance Sector allocation Total return 3m 6m 1yr -1% 4% 11% Pre-tax NTA performance 3m 6m 1yr 1% 9% 14% Share price and NTA profile -8% Nov-16 Jan-17 Mar-17 May-17 Jul-17 Sep-17 Nov-17 Jan-18 Mar-18 Regional allocation Rest of World 1.3% Australia 1.7% Western Europe 20.9% Developing Asia 21.2% Other 2.6% Cash 4.1% United States 25.3% Developed Asia 23. 8% 6% 4% 2% -2% -4% -6% Page 10

11 Fixed income: MCP Master Income Trust (MXT) Key data Investment style Benchmark Management fee 0.58% Performance fee Market cap Fixed income 90-day BBSW 1 of the difference between the return and the Hurdle $516.2m Listing date 09 October 2017 Share price As at 15/03/2018 $ NTA at 28/02/2018 Pre-tax NTA $ Post-tax NTA N/A Fund description MCP is an Australian debt-specialist fund manager. The investment team have on average 30 years direct lending experience and has shown a strong track record in originating, structuring, negotiating, managing and distributing Australian corporate loans. The MCP Master Income Trust provides a unique opportunity to access monthly cash income from direct lending to Australian corporates. Some of the characteristics of this investment opportunity are its attractive risk-adjusted returns from a diversified portfolio, monthly cash income with low risk of capital loss and low capital volatility, and access to floating rate credit. Portfolio performance* Total return 3m 6m 1yr -1% N/A N/A Pre-tax NTA performance 3m 6m 1yr 0 N/A N/A Industry allocation Share price and NTA profile Nov-17 Nov-17 Dec-17 Jan-18 Jan-18 Feb-18 Mar-18 Credit quality 6% 4% 3% 2% 1% Share price premium/discount to NTA Pre-tax NTA Post-tax 3-year average 12-month historical Dividend yield Gross dividend yield N/A N/A N/A N/A Source: Wilsons, company data, IRESS *NTA performance is exclusive of dividends paid. Total return is share price and dividends paid. Other, 3 Hotels, Restaurants and Leisure, 9% REITs, 11% Wilsons Corporate Finance Limited ACN , AFSL acted as Joint Lead Manager in the September 2017 IPO and the February 2018 Entitlement Offer for MCP Master Income Trust securities for which it received fees or will receive fees for acting in this capacity. This document should be read in conjunction with the disclosures and disclaimer at the end of this document. Cash, 16% RE Management & Development, 18% Transportation Infrastructure, 11% BB rated, 26% BBB rated, 4 <BB rated, 1% AA rated (cash), 16% A rated, 12% Page 11

12 Specialist: Blue Sky Alternative (BAF) Key data Investment style Benchmark Management fee 1.12% Performance fee Market cap Alternative assets 8% per annum 17. fee on returns above hurdle rate of 8% $257.3m Listing date 16 June 2014 Share price As at 15/03/2018 $1.13 NTA at 28/02/2018 Pre-tax NTA $1.14 Post-tax NTA N/A Share price premium/discount to NTA Pre-tax NTA -1% Post-tax N/A 3-year average 1% 12-month historical Dividend yield 4.3% Gross dividend yield 6.2% Source: Wilsons, company data, IRESS *NTA performance is exclusive of dividends paid. Total return is share price and dividends paid. Fund description Blue Sky Alternative is an ASX-listed (ASX:BLA) alternative asset manager with more than $2bn in assets under management. Blue Sky has built a strong investment track record across private equity, venture capital, hedge funds, private real estate and real assets (primarily water and water infrastructure) of 16.7% per annum compounding (net of fees). The Fund Limited is mandated to invest in a diversified portfolio of alternative assets, including: 1) private equity and venture capital, 2) real assets, 3) private real estate, and 4) hedge funds. Portfolio performance* Sector allocation Total return 3m 6m 1yr -1% 8% Pre-tax NTA performance 3m 6m 1yr 1% -1% 4% Cove & Other Real Estate 7% Student Accommodation 17% Retirement Living 11% Residential development 2% Cash 8% Venture Capital 6% Blue Sky Water Fund 17% Strategic Ag Fund 4% Growth Capital 22% Other Real Assets 6% Share price and NTA profile Jul-14 Dec-14 May-15 Oct-15 Mar-16 Aug-16 Jan-17 Jun-17 Nov-17 Top holdings as at 28 February 2018 Not disclosed Page 12

13 LIC key metrics Company ASX code Investment focus Source: IRESS, Capital IQ, company data. Previous 12-month dividend yield. NTA as at 28/02/2018. Share price as at close 14/03/2018. Listing date Mcap ($Am) Last price $A Pre-tax NTA $A Pre-tax NTA prem/disc Australian Equities Aberdeen Leaders ALR Large Cap 25-Aug % -9% % % 2.4 No AFIC AFI Large Cap 01-Jan % 2% % 3.9% 5.6% 0.18% No Aust Gov Masters Index AQF Large Cap 10-Feb % -2% % 8.1% 0.49% No Argo Inv ARG Large Cap 01-Jan % 3% % 3.3% 4.7% 0.18% No Aust United Inv AUI Large Cap 01-Jan % % % 0.13% No Contrarian Value Fund CVF Large Cap 05-Jan % -6% % 6.4% 6.4% 1.0 Yes Century Aust Inv CYA Large Cap 08-Apr % % 4.4% 6.4% 1.08% No Djerriwarrh Inv DJW Large Cap 28-Jun % 22% % % 0.39% No Milton Corp MLT Large Cap 30-Jan % % 5.8% 0.14% No Plato Income Maximiser PL8 Large Cap 05-May % 1% % % Apr % 5.1% 0.8 No AMCIL AMH Large/Medium Cap 10-Feb % -2% % 3.9% 5.6% 0.77% No BKI Inv Co BKI Large/Medium Cap 12-Dec % 2% % 4.4% 6.3% 0.19% No Carlton Inv CIN Large/Medium Cap 28-Feb % -12% % No Clime Capital CAM Large/Medium Cap 03-Feb % -7% % 5.7% 8.2% 1.0 Yes CBG Capital Limited CBC Large/Medium Cap 19-Dec % % 4.2% 1.0 Yes Diversified United Inv DUI Large/Medium Cap 19-Dec % -6% % 3.6% 5.1% 0.17% No Flagship Inv FSI Large/Medium Cap 20-Dec % -16% % 4.4% 6.3% No Fee Yes Perpetual Inv Co PIC Large/Medium Cap 18-Dec % -6% % 5.1% 7.3% 1.0 No QV Equities QVE Large/Medium Cap 22-Aug % 3% % No WAM Leaders WLE Large/Medium Cap 27-May % -1% % 2.6% 2.6% 1.0 Yes Whitefield WHF Large/Medium Cap 02-Aug % -8% % 3.7% 3.7% 0.3 No Mcap weighted average 1% 14% 3.8% 5.4% Simple average -4% -3% 3% -3% 4.3% 5.8% Acorn Capital Inv Fund ACQ Medium/Small Cap 01-May % % 3.1% 4.4% 0.9 Yes Contango Income Generator CIE Medium/Small Cap 14-Aug % -3% % % 30-Mar No Mirrabooka Inv MIR Medium/Small Cap 28-Jun % 14% % 5.2% No Ozgrowth OZG Medium/Small Cap 02-Jan % -17% % 2.8% Yes WAM Capital WAM Medium/Small Cap 12-Aug % % 6.2% 8.9% 1.0 Yes WAM Research WAX Medium/Small Cap 19-Aug % 16% % 6.1% 8.6% 1.0 Yes Westoz Inv Co WIC Medium/Small Cap 16-Sep % -12% % 5.2% % Yes 8Ip Emerging Companies Limited 8EC Small Cap 01-Dec % 3.1% 3.1% 1.2 Yes NAOS Small Cap Opportunities NSC Small Cap 25-Mar % -9% % 7.3% 8.6% 1.2 Yes Glennon Small Cos GC1 Small Cap 21-Aug % -6% % 5.2% 7.4% 1.0 Yes Mercantile Inv Co MVT Small Cap 26-Aug % % NAOS Absolute Opps Co NAC Small Cap 12-Nov % -9% % 5.4% 7.7% 1.7 Yes NAOS Emerging Opps Co NCC Small Cap 26-Feb % -4% % % 1.2 Yes NGE Capital NGE Small Cap 30-Nov % % No Fee No Spheria Emerging Companies SEC Small Cap 04-Dec % % 1.0 Yes Sandon Capital Inv SNC Small Cap 23-Dec % % 7.1% 10.2% 1.2 Yes Mcap weighted average 1 9% 14% 5.6% 7.9% Simple average -11% -4% -7% -6% % 3yr avg prem/disc Post-tax NTA $A Post-tax NTA prem/disc Diluted NTA $A Diluted discount/ premium Options exercise price $A Options expiry date Dividend yield Gross dividend yield Mgmt fee Perf fee Page 13

14 Company ASX code Investment focus Source: IRESS, Capital IQ, company data. Previous 12-month dividend yield. NTA as at 28/02/2018. Share price as at close 14/03/2018. Listing date Mcap ($Am) Last price $A Pre-tax NTA $A Pre-tax NTA prem/disc Absolute Return Absolute Equity Performance Fund AEG Absolute Return 16-Dec % 3% % 1.5 Yes Ironbark Capital IBC Absolute Return 02-Apr % % 0.6 Yes Katana Capital KAT Absolute Return 23-Dec % % 2.6% 3.7% 1.2 Yes Thorney Opps TOP Absolute Return 22-Mar % % 1.8% 2.6% 0.7 Yes Aust Leaders Fund ALF Long/Short 10-Feb % % 1.5 Yes Cadence Capital CDM Long/Short 05-Dec % 8% % 6.1% 8.7% 1.0 Yes Monash Absolute Investment Co MA1 Long/Short 12-Apr % % 1.5 Yes VGI Partners Global Investments VG1 Long/Short 28-Sep % 1% % 1.5 Yes WAM Active WAA Long/Short 11-Jan % 2% % % 1.0 Yes Watermark Market Neutral Fund WMK Market Neutral 18-Jul % % Yes Mcap weighted average -3% -1% -7% 2.1% 2.9% Simple average -8% -2% -16% 3.9% 5. International Equities Asian MastersFund AUF Asia 04-Dec % % 5.1% 7.3% 1.0 Yes Ellerston Asian Inv EAI Asia 15-Sep % -8% % 28-Feb Yes PM Capital Asian Opps Fund PAF Asia 22-May % -11% 8% 3.3% 4.7% 1.0 Yes Platinum Asia Inv PAI Asia 21-Sep % -1% % Yes Emerging Markets Masters Fund EMF Emerging Markets 11-Oct % 3% 2.8% 2.8% 1.08% No Argo Global Listed Infrastructure ALI Global 03-Jul % -9% -14% 2.2% 2.2% 1.2 No Antipodes Global Investment Company APL Global 18-Oct % % Oct Yes Ellerston Global Inv EGI Global 20-Oct % -8% -8% % 10-Apr % 3.2% 0.7 Yes Future Generation Global Inv Co FGG Global 10-Sep % % 1.2% No Fee No Global Value Fund GVF Global 21-Jul % % 5.7% 8.2% 1.5 Yes MFF Capital Investments MFF Global 19-Dec % -11% % 1.3% 1.8% 1.2 Yes Magellan Global Trust MGG Global 17-Oct % 1.3 Yes PM Capital Global Opps Fund PGF Global 12-Dec % % 2.9% 4.2% 1.09% Yes Pengana International Equities PIA Global 19-Mar % -8% % % May % % Yes Platinum Capital PMC Global 29-Jun % % 5.1% 7.3% 1.5 Yes Templeton Global Growth TGG Global 28-May % % 3.2% 1.0 No Mcap weighted average -3% -4% 3% % Simple average -4% -4% 1% -2% 3.4% 4. Specialist Shares Aust Enhanced Income Fund AYF Hybrids 17-Oct % 5.7% 6.4% 0.8 No Blue Sky Alternatives Access Fund BAF Alternative Assets 16-Jun % 1% 4.3% 6.2% 1.12% Yes Balidor Technology Inv BTI Internet-Related Co's 21-Nov % -16% % 1.7 Yes Future Generation Inv Fund FGX Fund of 12-Sep % % 5.4% 1.0 No Lion Selection Group LSX Junior Mining/Exploration 13-Mar % 0.7 Yes MCP Master Income Trust MXT Fixed Income 09-Oct Yes Mcap weighted average -4% -1% -3% % Simple average -8% -7% - 4.6% 6. 3yr avg prem/disc Post-tax NTA $A Post-tax NTA prem/disc Diluted NTA $A Diluted discount/ premium Options exercise price $A Options expiry date Dividend yield Gross dividend yield Mgmt fee Perf fee Page 14

15 Outstanding options Company Australian Equities Options ASX code Shares on issue Source: IRESS, company data. NTA as at 28/02/2018. Share price as at close 14/03/2018. Mcap $Am Last price $A options Last price $A Options exercise price $A Pre-tax NTA $A Potential raising $A Contango Income Generator CIEO 98,210, $20,353, Mar-18 Plato Income Maximiser PL8O 296,601, $325,528, Apr-19 International Equities Ellerston Asian Inv EAIO 105,089, $64,680, Feb-19 Antipodes Global Investment Company APLO 343,684, $248,579, Oct-18 Pengana International Equities PIAO 245,404, $287,993, May-19 Ellerston Global Inv EGIO 85,911, $23,704, Apr-18 $970,839,899 Options expiry date Page 15

16 Monthly change in premium/discount to NTA Domestic equities (large/medium focus): Monthly change in premium/discount to NTA 2 Domestic equities (medium/small focus): Monthly change in premium/discount to NTA DJW 2 2 MIR WAM WAX 1 BKI QVE ALR AFI AQF ARG AUI CVF CYA MLT PL8 AMH CIN CAM DUI FSI PIC WHF WLE CIE OZG WIC ACQ 8EC MVT NSC GC1 NAC NCC SEC SNC January premium/discount NTA February premium/discount NTA January premium/discount NTA February premium/discount NTA Absolute return: Monthly change in premium/discount to NTA International equities: Monthly change in premium/discount to NTA 1 1 AEG ALF CDM MA1 VG1 WMK WAA 1 AUF EMF GVF MGG PMC VG IBC KAT TOP - APL FGG PIA -1-1 PAI January premium/discount NTA NGE February premium/discount NTA -1-2 ALI EAI EGI January premium/discount NTA PGF PAF MFF February premium/discount NTA TGG Source: IRESS, company data Page 16

17 Specialist: Monthly change in premium/discount to NTA 1 BAF FGX AYF LSX MXT - GRF -1-1 BTI -2-2 January premium/discount NTA February premium/discount NTA Source: IRESS, company data Page 17

18 Performance metrics Company ASX code Total return Total return out/under-performance Australian Equities - Large/Medium 3m 6m 1yr 3yr 5yr 3m 6m 1yr 3yr 5yr 3m 6m 1yr 3yr 5yr 3m 6m 1yr 3yr 5yr Source: IRESS, company data. Performance base date 28/02/2018 and is before management fees have been deducted. NTA performance does not include dividends paid. Benchmark AFIC AFI 2% 6% 1 11% 36% 1% -2% -36% -47% 1% 3% -4% 12% 1% -3% -1% -6% -6% S&P/ASX 200 Accumulation Aberdeen Leaders ALR 1% 13% 16% 16% 26% -1% 6% 6% -31% -57% -2% 4% 2% - 2% -2% -1% -4% -7% -16% S&P/ASX 200 Accumulation AMCIL AMH 4% 17% 48% 3% -3% -6% % 3% 7% 2% 4% -2% 1% -13% S&P/ASX 200 Accumulation Aust Gov Masters Index AQF 2% 4% 4% 9% 3-4% -6% -38% -52% -1% 1% 2% - 1-1% -4% -3% -6% -8% S&P/ASX 200 Accumulation Argo Inv ARG 3% 6% 11% 13% 48% 1% -2% 1% -34% -3 2% 3% -1% 1-4% -2% -3% -3% S&P/ASX 200 Accumulation Aust United Inv AUI 3% 16% 17% 52% 1% -2% % 3% 6% -3% 12% 1% -2% 1% - -6% S&P/ASX 200 Accumulation Contrarian Value Fund CVF 22% 33% 3 3% 14% 23% -17% 4% 16% 26% 26% 4% 11% 2 24% S&P/ASX 200 Accumulation BKI Inv Co BKI 4% 3% % 3% - -37% -4-1% 1% -9% 3% -1% - -4% -1-1 S&P/ASX 200 Accumulation Clime Capital CAM 3% 4% 3% 9% 3% 1% -4% -8% -9% -4 3% 8% 4% -9% -23% 2% 2% -2% -12% -42% All Ordinaries Accumulation CBG Capital CBC 1% -2% 2% -4% -9% -8% -51% -1% % -18% S&P/ASX 200 Accumulation Carlton Inv CIN 1 12% 22% 82% 3% 2% 2% -2-1% 2% 3% 4-1% -3% -1% 2% 22% S&P/ASX 200 Accumulation Century Aust Inv CYA 1% 3% 4% 13% 48% -1% - -6% -4% 2% 9% 9% -1% 2 4% 4% 3% -3% 2% S&P/ASX 300 Accumulation Djerriwarrh Inv DJW -2% 1% -11% 8% -4% -7% -11% -58% -7 2% -13% -11% -1% - -3% -1-29% S&P/ASX 200 Accumulation Diversified United Inv DUI 1 19% 26% 66% 4% 2% 8% 9% 19% 3% 6% 9% 6% 22% 2% 3% 4% 4% S&P/ASX 300 Accumulation Flagship Inv FSI 3% 1 16% 31% 6 1% 2% 13% 17% 2% 6% 7% 2% 22% 1% 1% -1% 3% All Ordinaries Accumulation Milton Corp MLT 1% 1 14% 49% -3% -4% 1% 1% 3% 14% -1% - -3% -4% -6% All Ordinaries Accumulation Perpetual Inv Co PIC 7% 12% 2-2% -1% 2% 9% -4% -1% 3% 11% - -6% -3% 9% S&P/ASX 300 Accumulation Plato Income Maximiser PL8-2% 6% -4% -2% 1% 4% 1% -1% S&P/ASX 200 Accumulation Whitefield WHF 9% 14% 61% -2% -3% -1% -33% -22% -1% 3% 2% -2% 29% -1% -2% -3% -3% 11% S&P/ASX 200 Accumulation WAM Leaders WLE 3% 7% 2% -1% - -1% -2% - -1% S&P/ASX 200 Accumulation Australian Equities - Medium/Small 3m 6m 1yr 3yr 5yr 3m 6m 1yr 3yr 5yr 3m 6m 1yr 3yr 5yr 3m 6m 1yr 3yr 5yr 8Ip Emerging Companies 8EC -2% 7% -1% -3% -4% -1% -2% -4% -4% -4% RBA Cash rate + 200bps Acorn Capital ACQ 17% 32% 23% 69% 14% 18% 6% 4 12% 2 14% 42% 9% 6% -3% 19% S&P/ASX Small Ords Accumulation Contango Income Generator CIE 3% 4% 7% 1% -4% -4% -1% 2% -1% -7% -4% All Ordinaries Accumulation NAOS Small Cap Opportunities NSC 3% 3% -3% 6% 13% -11% -2-18% -2% - -3% -11% -17% -2-7% -17% -28% -4-3 S&P/ASX Small Ords Accumulation Glennon Small Companies GC1 1% 12% 8% -2% -2% -9% 8% 17% 17% 3% 1% S&P/ASX Small Ords Accumulation Mirabooka MIR 3% -4% -1% 2 61% 1% -18% -18% 1% 46% 3% 8% 8% 3% 11% 1% -6% -9% -2-4% S&P/ASX Small Ords Accumulation Mercantile MVT 6% 13% 6% 46% 67% 4% - 28% 19% -1% -6% -6% -4% -19% All Ordinaries Accumulation NAOS Absolute Opps Co NAC -6% 14% -1% -2% % 2% 14% 4% 4% -2% 1 RBA Cash rate + 250bps NAOS Emerging Opps Co NCC -4% 2% 7% 63% 88% -6% -12% % -1% 1% -1% 14% 3-4% -13% -18% -9% 2 S&P/ASX Small Ords Accumulation Ozgrowth OZG 4% 14% 6% 28% 2 3% 6% % 4% 18% 8% 22% -1 3% 12% 1% 19% -3 All Ordinaries Accumulation QV Equities QVE - -8% -6% 21% -7% -16% -16% 3% 3% 14% 2% -3% -1% 12% S&P/ASX 300 Accumulation Spheria Emerging Companies SEC S&P/ASX Small Ords Accumulation Sandon Capital SNC 1% -2% 2-2% -9% -19% 2% 2% -1% -4% -1% -1-21% -24% S&P/ASX Small Ords Accumulation WAM Capital WAM 4% 7% 47% 101% 4% -4% -4% 29% 53% 4% 9% 8% 4% -1% -1% -11% All Ordinaries Accumulation WAM Research WAX 4% 1% 54% 111% 2% -8% -6% 36% 63% 4% 2% 11% 24% 3% -1% - 7% All Ordinaries Accumulation WestOz Investment Co. WIC 6% 22% 2 41% 4 4% 13% 9% 23% -8% % 14% 9% 16% -33% All Ordinaries Accumulation Pre-tax NTA Pre-tax NTA out/under-performance Page 18

19 Company ASX code Total return Total return out/under-performance Absolute Return 3m 6m 1yr 3yr 5yr 3m 6m 1yr 3yr 5yr 3m 6m 1yr 3yr 5yr 3m 6m 1yr 3yr 5yr Source: IRESS, company data. Performance base date 28/02/2018 and is before management fees have been deducted. NTA performance does not include dividends paid. Benchmark Aurora Absolute Return Fund ABW 11% 42% -16% -34% -33% 11% 36% -23% -38% -33% -7% -9% -26% -37% -42% -7% -1-32% -4-42% RBA Cash Rate Aust Leaders Fund ALF - -19% -23% % -33% -4-38% -2-1% - -7% % -19% -24% -28% -2 S&P/ASX Small Ords Accumulation Cadence Capital CDM 2% 4% 12% 13% 29% 1% - 1% - -19% 2% 6% 8% % 1% -19% -34% All Ordinaries Accumulation Ironbark Capital IBC -1% 3% 6% 21% -3% -1% -2% -1% 13% -3% - -6% -2% -4% -1-13% -14% 1YR SWAP +6% Katana Capital KAT -3% 4% 8% -6% 26% - -4% -3% -24% -22% 3% 8% 1-4% -6% 2% 2% 4% -8% -26% All Ordinaries Accumulation NGE Capital NGE 8% -2% 1 7% -1 3% 2% 14% 2% -4% 8% S&P/ASX 200 Accumulation Thorney Opportunities Fund TOP -1% 2% 8% 6 38% 2% % N/A VGI Partners Global Investments VG1-1% -1% Zero WAM Active WAA 2% 4% 23% 39% -2% -6% -7% -9% 4% 4% 2% 7% -6% 3% -2% - 3% -26% All Ordinaries Accumulation Watermark Neutral Fund WMK -3% -14% -17% 13% -3% -14% -18% 11% 1% - -8% 2% 1% -6% -9% RBA Cash Rate Pre-tax NTA Pre-tax NTA out/under-performance Page 19

20 Company ASX code Investment focus International Equities 3m 6m 1yr 3yr 5yr 3m 6m 1yr 3yr 5yr ARGO Infrastructure ALI Global -6% 1% 7% -9% -1% 3% Source: IRESS, company data. Performance base date 28/02/2018 and is before management fees have been deducted. NTA performance does not include dividends paid. Benchmark Antipodes Global Investment Company APL Global -1% 4% 11% 1% 9% 14% MSCI All Country World Net Index Ellerston Global Investments EGI Global 2% 14% 21% 1% 7% 1 14% MSCI World Index Local A$ benchmark 9 FTSE Global Core Infra. 50/50 index & 1 Merrill Lynch Fixed Rate Pref. Sec. index Future Generation Global FGG Global 3% 14% 2 1% 12% 16% MSCI World Total Return Index, net dividends reinvested, AUD Global Value Fund GVF Global -6% 1% 3% 16% 2% 1% BBSW 1yr rate +4% MFF Capital Investments MFF Global 9% 2 27% 28% % 26% 147% MSCI World (AUD) Magellan Global Trust MGG Global -7% MSCI World Total Return and/or AUS 10-yr Bond PM Capital Global Opportunities Fund PGF Global 6% % MSCI All Country World Net Index Pengana International Equities PIA Global 4% 9 2% 7% -1% -17% 28% MSCI World Return, net dividends reinvested, AUD Platinum Capital PMC Global 3% 18% 29% 28% 103% -1% 8% 18% 6% 41% MSCI All Country World TR (AUD) Templeton Global Growth TGG Global -1% 8% 17% 11% 99% 1 1% 53% MSCI World Asian MastersFund AUF Asia -3% 1 21% 16% 6-1% 8% 1 7% 44% MSCI Asia Ex Japan Ellerston Asia Fund EAI Asia 2% 17% 29% 2% 13% 26% MSCI All Country ASIA Ex Japan Net Index AUD PM Capital Asian Opportunities Fund PAF Asia % 5 1% 16% 17% MSCI AC Asia Index (AUD) Platinum Asia PAI Asia 2% 27% 39% -3% 12% 22% MSCI AC Asia Ex Japan Index Emerging Markets Masters Fund EMF Emerging Markets 2% 12% 23% 21% 51% 1% 13% 19% 11% 27% MSCI Emerging Markets Specialist 3m 6m 1yr 3yr 5yr 3m 6m 1yr 3yr 5yr Aust Enhanced Income Fund AYF Hybrids 2% 4% 8% 16% 3-1% -1% -6% -7% UBS $A Bank Bill Index Blue Sky Alternatives Access Fund BAF Alternative Assets -1% 8% 29% 1% -1% 4% 16% 8% per annum Balidor Technology Inv BTI Internet-related cos -12% -4% -1-11% -4% -9% -2% 8% pa compounded annually Future Generation Inv Fund FGX Fund of 4% 1 6% 16% 11% 9% 9% 11% All Ordinaries Accumulation Lion Selection Group LSX Junior Mining/Exploration -4% -13% -17% 56% N/A N/A N/A N/A N/A ASX Small Resources MCP Master Income Trust MXT Fixed Income -1% 90-day BBSW Total return Pre-tax NTA Page 20

21 AFI ALR AMH AQF ARG ALR AUI BKI CIN WHF NSC AFI AQF AMH ARG BKI CAM CVF CAM MIR SNC AUI DJW WHF NSC CYA DJW CBC FSI MLT PIC PL8 DUI WLE 8EC ACQ CIE GC1 NAC NCC OZG CBC CIN MVT OZG WIC CVF MVT QVE WAM CYA DUI FSI MLT PIC PL8 WLE 8EC ACQ CIE GC1 MIR NAC NCC QVE WAM SNC WAX WAX WIC NSC NCC BKI DJW PIC PL8 8EC ALR AMH AFI AQF ARG AUI CVF CAM CBC MLT NSC CIN CYA DUI FSI WHF WLE GC1 ACQ CIE MIR MVT NAC SNC SNC OZG QVE WAM WAX MIR WIC NCC AMH CAM AFI ALR AQF ARG CBC DJW WLE 8EC GC1 NAC CYA ACQ CIE OZG AUI BKI DUI MVT MLT CVF CIN PIC FSI PL8 WHF WAM WAX QVE WIC 19 March 2018 Pre-tax NTA premium/discount and total return vs benchmark Domestic equities: 3-mth pre-tax NTA prem/disc and total return vs benchmark 2 Domestic equities: 1-yr pre-tax NTA prem/disc and total return vs benchmark Pre-tax NTA out/under-performance Total return out/under-performance Domestic equities: 3-yr pre-tax NTA prem/disc and total return vs benchmark Pre-tax NTA out/under-performance Total return out/under-performance Domestic equities: 5-yr pre-tax NTA prem/disc and total return vs benchmark Source: IRESS, company data Pre-tax NTA out/under-performance Total return out/under-performance -10 Pre-tax NTA out/under-performance Total return out/under-performance Page 21

22 AEG IBC KAT TOP ALF CDM MA1 VG1 WAA WMK AYF BAF BTI FGX LSX MXT ALR AFI AQF ARG AUI CVF CYA DJW MLT PL8 AMH BKI CIN CAM CBC DUI FSI PIC QVE WLE WHF ACQ CIE MIR OZG WAM WAX WIC 8EC NSC GC1 MVT NAC NCC NGE SEC SNC 19 March month historical dividend yield Domestic equities (large/medium focus): 12-month historical dividend yield 1 8% 6% 4% 2% Domestic equities (medium/small focus): 12-month historical dividend yield 12% 1 8% 6% 4% 2% Dividend Yield Gross Dividend Yield Dividend Yield Gross Dividend Yield Absolute return: 12-month historical dividend yield 1 Specialist: 12-month historical dividend yield 8% 8% 6% 6% 4% 4% 2% 2% Dividend Yield Gross Dividend Yield Dividend Yield Gross Dividend Yield Source: Capital IQ, company data Page 22

23 AUF EAI PAF PAI EMF ALI APL EGI FGG GVF MFF MGG PGF PIA PMC TGG 19 March 2018 International equities: 12-month historical dividend yield 1 8% 6% 4% 2% Dividend Yield Gross Dividend Yield Source: Capital IQ, company data Page 23

24 KAT ALF MA1 IBC TOP WMK AEG CDM VG1 WAA AYF BAF FGX LSX MXT NGE BTI MVT 8EC CBC ALR AMH AFI AQF AUI CVF CAM CIN CYA FSI ACQ GC1 OZG DJW DUI PIC WHF NSC NAC WIC NCC ARG MLT CIE SNC PL8 BKI MIR QVE SEC WAM WAX WLE 19 March 2018 Pre-tax NTA premium/discount vs long-term averages Domestic (large/medium): NTA prem/disc vs 3-yr, 5-yr and sector average prem/disc 3 Domestic (medium/small): NTA prem/disc vs 3-yr, 5-yr and sector average prem/disc Spot discount/premium Sector 3yr avg 1yr NTA prem/disc avg 3yr NTA prem/disc avg 5yr NTA prem/disc avg Absolute return: NTA prem/disc vs 3-yr, 5-yr and sector average prem/disc 3-3 Spot discount/premium Sector 3yr avg 1yr NTA prem/disc avg 3yr NTA prem/disc avg 5yr NTA prem/disc avg Specialist: NTA prem/disc vs 3-yr, 5-yr and sector average prem/disc Source: IRESS, company data Spot discount/premium Sector 3yr avg 1yr NTA prem/disc avg 3yr NTA prem/disc avg 5yr NTA prem/disc avg -3 Spot discount/premium Sector 3yr avg 1yr NTA prem/disc avg 3yr NTA prem/disc avg 5yr NTA prem/disc avg Page 24

25 EGI PAF EAI TGG APL EMF FGG GVF MGG PAI PMC ALI MFF PGF PIA AUF 19 March 2018 International: NTA prem/disc vs 3-yr, 5-yr and sector average prem/disc Spot discount/premium Sector 3yr avg 1yr NTA prem/disc avg 3yr NTA prem/disc avg 5yr NTA prem/disc avg Source: IRESS, company data Page 25

26 Spot Premium/Discount Spot Premium/Discount Spot Premium/Discount Spot Premium/Discount Spot Premium/Discount Spot Premium/Discount 19 March 2018 Pre-tax NTA growth vs NTA premium/discount Domestic: 1-yr pre-tax NTA growth vs NTA prem/disc 2 WAX 2 WAM PIC MLT 1 DJW MIR ARG BKI AFI 1 QVE AQF ALR AUI PL8 DUI - SNC AMH NCC -1 CYA NSC SEC CVF CIE -1 WIC WHF FSI ACQ -2 GC1 NAC CIN CAM OZG yr NTA Return Domestic: 5-yr pre-tax NTA growth vs NTA prem/disc 2 WAM 2 PIC BKI MIR WAX 1 SNC AFI 1 QVE ARG DJW NCC MLT PL8 DUI NSC - CVF WHF SEC -1 AQF CIE CAM WIC AUI -1 ACQ NAC ALR AMH CYA CIN -2 FSI OZG GC yr NTA Return Absolute: 3-yr pre-tax NTA growth vs NTA prem/disc Domestic: 3-yr pre-tax NTA growth vs NTA prem/disc 2 WAX 2 WAM 1 AFI AUI ARG BKI MIR 1 DJW MLT PIC SNC AQF DUI NSC ALR CVF - PL8 SEC QVE ACQ -1 CAM AMH NCC WHF -1 CIN CYA CIE FSI WIC -2 GC1-2 NAC OZG yr NTA Return Absolute: 1-yr pre-tax NTA growth vs NTA prem/disc 1 CDM WAA VG1 - ABW IBC -1-1 ALF WMK TOP -2 KAT -2 NGE yr NTA Return Absolute: 5-yr pre-tax NTA growth vs NTA prem/disc CDM VG1 WAA 1 CDM WAA VG ABW IBC ALF KAT WMK TOP ALF KAT IBC ABW WMK TOP -25. NGE -2 NGE yr NTA Return yr NTA Return Source: IRESS, company data Page 26

27 Spot Premium/Discount Spot Premium/Discount Spot Premium/Discount Spot Premium/Discount Spot Premium/Discount Spot Premium/Discount 19 March 2018 International: 1-yr pre-tax NTA growth vs NTA prem/disc International: 3-yr pre-tax NTA growth vs NTA prem/disc 1 1 GVF AUF PAF PMC EMF PAI 1 1 PAI PMC MFF - FGG -1 PIA -1 TGG ALI PGF EAI -2 EGI yr NTA Return International: 5-yr pre-tax NTA growth vs NTA prem/disc AUF GVF EMF PAF FGG - EAI TGG MFF PIA PGF -1 ALI EGI yr NTA Return Specialist: 1-yr pre-tax NTA growth vs NTA prem/disc 1 MXT 1 PMC AYF PAI PAF EMF AUF GVF - FGG PIA EAI -1 PGF MFF EGI TGG ALI yr NTA Return GRF - BAF -1 FGX -1-2 BTI yr NTA Return Specialist: 3-yr pre-tax NTA growth vs NTA prem/disc Specialist: 5-yr pre-tax NTA growth vs NTA prem/disc AYF MXT MXT - BAF - AYF BAF -1 GRF FGX -1 GRF FGX BTI yr NTA Return Source: IRESS, company data BTI -2-14% -12% -1-8% -6% -4% -2% 5yr NTA Return Page 27

28 Domestic LICs: Large/medium cap-focused Aberdeen Leaders - ALR AFIC - AFI Argo Investments - ARG Contrarian Value Fund - CVF Australia United Investments - AUI Century Australia Investments - CYA 4% 2% -2% -4% -6% -8% -1-12% -14% -16% -18% Feb-15 Aug-15 Feb-16 Aug-16 Feb-17 Aug-17 Feb-18 Source: IRESS, company data Sep-10 Sep-12 Sep-14 Sep Page 28