LMI Monthly Update. February 2018* New Research. Initiating Coverage of Plato Income Maximiser

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1 LMI Monthly Update February 2018* Initiating Coverage of Plato Income Maximiser We have initiated coverage of Plato Income Maximiser (:PL8) with a Recommended Plus rating. PL8 is a listed investment company that aims to provide investors with regular income by investing in a portfolio of Australian large and mid-cap equities. PL8 is specifically designed and managed for zero tax-rate investors and aims to deliver an income yield, including franking credits and after fees, in excess of that provided by the benchmark (the S&P/ 200 Franking Credit Adjusted Daily Total Return Index (tax exempt)). It also aims to generate a total return in excess of the benchmark. The strategic emphasis is on capitalising on franking credit market inefficiencies. PL8 was listed in May 2017, but the underlying Plato Fund, managed by Plato Investment Management, has a six year track-record. Over this period, the Manager has a solid track-record, outperforming the market in income and total returns. The investment team is highly qualified, experienced, stable and proven. Distributions are paid monthly, making PL8 the first LIC to do so in the domestic market. Since October 2017 PL8 has paid a monthly fully franked dividend of 0.45 cents per share and has declared the same amount of dividends per share out to March At the time of writing, PL8 s shares are trading at a slight premium to pre-tax NTA. We note that PL8 has million options outstanding with a $1.10 strike price and April 2019 expiry. Should these options come in the money prior to the expiry date they could result in the shares trading at a discount to NTA and may prove dilutive to shareholders. Refer to our full initiation report for more details on PL8. Ceasing Coverage of Naos Small Cap Opportunities Company We are ceasing coverage of NAOS Small Cap Opportunities Company (:NSC) as the new Investment Manager, NAOS Asset Management, has decided not to undergo a review at this stage. We placed our rating for Contango MicroCap (as it was then known) under review in December 2016 following the announcement that it would appoint an additional manager and change the LIC name. There have been a number of changes since that time including reversion to a one manager arrangement, numerous Board changes and the assignment of the management agreement to NAOS, with a new management agreement approved by the LIC s shareholders at its annual general meeting in November The change in Investment Manager is significant and results in a fundamental change in the way the portfolio is managed, including a change in the investment universe and move to a more concentrated, higher conviction portfolio. Prior to the change in Manager we were undertaking a detailed review of Contango MicroCap, however, this is now irrelevant given the new Manager and different approach to managing the NSC portfolio. At this stage, NAOS Asset Management has decided it does not wish to proceed with a review so our rating for NSC is withdrawn and we are ceasing coverage. The withdrawal of our rating is based simply on the Manager s decision not to proceed with a review and is not a statement of opinion about the new Manager. WAM Appoints Global Fund Manager Wilson Asset Management has appointed Catriona Burns as the lead portfolio manager for WAM Global Limited. Mrs Burns is a past employee of Wilson Asset Management and helped develop and implement WAM s succesful investment process. Mrs Burns has global equities management experience and, in addition to her prior experience at Wilson Asset Management has worked for Hunter Hall and Airlie Funds Management. Wilson Asset Management expects to lodge a prospectus for WAM Global with ASIC in late April with the offer, which will seek to raise $300m, to close in mid-june. New Research We are currently undertaking research on the following listed investment companies and trust and expect to publish initiation reports and launch coverage in coming weeks. WAM Microcap (:WMI), managed by Wilson Asset Management, listed on the in June 2017 and invests in a portfolio of what the manager considers to be undervalued growth companies with a market cap of less than $300m at the time of investment. The portfolio has significantly outperformed the S&P/ Small Ordinaries Accumulation Index over the short period since its inception. However, at 31 December 2017 the shares were trading at a 7.4% premium to pre-tax NTA. MCP Master Income Trust (:MXT), managed by Metrics Credit Partners, is a listed investment trust that listed on the in October It aims to provide a monthly cash distribution to its investors by investing in a diversified portfolio of Australian corporate loans. MXT has a limited history with its first distribution paid in January. The distribution was consistent with the objective to pay a cash income yield equivalent to the RBA cash rate plus 3.25% p.a. (currently 4.75%). The intention is to now pay monthly distributions. At 31 December 2017 MXT s units were trading at a small premium to net asset value. Antipodes Global Investment Company (:APL), managed by Antipodes Partners, is an absolute return LIC, listed in October 2016, that invests in a long/short portfolio of global equities. At 31 December 2017 the portfolio had an overweight position to Asian markets. APL is yet to pay a dividend but says its intention is to pay dividends at least annually, subject to available profits, cash flow and franking credits, once it has built sufficient profit reserves to pay a sustainable dividend. At 31 December 2017 APL shares were trading close to pre-tax NTA. However we note that, at 17 January 2018, there are 234.5m options on issue with an expiry date of 15 October These options are in the money and will be dilutive to existing shares when exercised. Aberdeen Leaders Completes Internalisation Following the expiry of its investment management agreement with Aberdeen Asset Management on 31 January, Aberdeen Leaders (:ALR) is now an internally managed listed investment company. The company has employed an investment management team led by Dr David Sokulsky, an investment professional who has been appointed Chief Executive Officer and Chief Investment Officer of ALR. Dr Sokulsky has significant investment experience and was most recently Chief Investment Officer at Crestone Wealth Management. Given the departure of Aberdeen as Investment Manager, it is proposed that the name of ALR be changed to Concentrated Leaders Fund Limited (:CLF) subject to approval at an Extraordinary General Meeting of shareholders in March. Our rating for ALR will remain suspended until we have had the opportunity to undertake a review of the new investment management team. LIC Reporting Season Underway The listed investment company reporting season is currently underway and a number of LICs have already reported earnings for the six months to 31 December Whilst it is important investors focus on total portfolio returns, we acknowledge that many investors in LICs look for stable, growing dividends. To this extent, dividend focused LICs need to generate sufficient earnings and hold adequate profit reserves to enable them to maintain a stable and growing dividend stream. Of the LICs we cover that have reported to date, the trend is towards reporting higher earnings with dividends at least maintained or slightly increased. We will take a more detailed look at LIC reporting season and dividends next month. *Note: All data in the following tables in this report is as at 31 December

2 Pricing and Performance Update* Best 5-year portfolio returns - % (#) Discounts & Premiums to pre-tax NTA - % (#) Australian Large Cap Focus Small-Mid Cap Focus & Others Largest discounts Largest premiums Company 3M 1Yr 3Yr 5Yr Company 3M 1Yr 3Yr 5Yr Company Discount Company Premium WHF FOR BST WAX 19.5 DUI GFL BTI WAM 17.1 AMH WAX FSI EGD 11.1 FSI MIR GC VG MLT AUF CBC FOR 9.0 *Data to 31 December Only includes LMIs covered by IIR #Portfolio return = NTA plus dividends per share. Pre-tax NTA includes tax paid on realised gains. Equities Perform Strongly in 2017, but 2018 off to a Shaky Start 2017 was a good year for equities, although international equities outperformed the domestic market. The MSCI World Ex-Australia Index (USD) rose 23.2%, but in Australian dollar terms the rise was a lower 14.0% due to the strength of the AUD against the USD over Domestically, the S&P/ 200 Accumulation Index rose 11.8% with resources continuing to help drive the market. The S&P/ 200 Materials Accumulation Index rose a healthy 22.9% over the 12 months. Following a weak first half, small caps delivered a strong return for the 2017 calendar year with the S&P/ Small Ordinaries Accumulation Index up 20.0%, although this was largely driven by small resources stocks. Large caps underperformed the broader market with the S&P/ 50 Accumulation Index up 9.5%. US markets continued to climb through January 2018, although the Australian market did not follow suit. However, at the time of writing, global markets have experienced increased volatility, with some large falls, due to concerns about rising interest rates and unwinding of accommodative monetary policies. Whilst the outlook for global economic growth appears to be relatively robust, ongoing concerns about higher interest rates, tighter monetary policy and stretched equity valuations in some markets could see volatility increase and lower returns from equities in The Australian market did not perform as strongly as international markets in 2017, so perhaps may experience less volatility relative to the US and some other markets. Our commentary below looks at the performance of the listed managed investments sector in 2017 and reflects the performance of markets over that time. We remind investors that this is backward looking and performance in 2018 will reflect underlying market conditions and the skill of the various managers in managing their respective portfolios in a given market environment. International LMIs Outperform in 2017 The strong performance of global equity markets in 2017 saw listed managed investments with a focus on international markets outperform those with a domestic equities focus. The average pre-tax NTA return from LMIs that invest in a diversified portfolio of international shares was 13.8% with the highest returns delivered by Platinum Capital (:PMC) and Antipodes Global Investment Company (:APL) which both delivered a pre-tax NTA return of 22.3%. We do not currently cover these LICs but will be initiating coverage of APL in coming months. Of the International Diversified LMIs we currently cover, Cadence Capital (:CDM), which has a blended portfolio of Australian and international equities delivered the highest pre-tax NTA return at 18.0%. Our rating for CDM is Recommended Plus, although at 31 December 2017 the shares were trading at a 6% premium to pre-tax NTA. LMIs with an emerging markets focus delivered exceptionally strong returns reflecting strong performance of emerging market equities. The MSCI Emerging Markets Index (AUD) was up 27.1% for the year. The average pre-tax NTA return from emerging markets focused LICs was 23.1% with Platinum Asia Investments (:PAI) delivering a pre-tax NTA return of 28.9%. We do not currently cover PAI. Of the emerging markets focused LMIs we cover, Asian Masters Fund (:AUF) delivered a pre-tax NTA return of 22.3%. AUF invests in a well-diversified portfolio of Asian equity funds. As a point of difference to many other Asian equities investment vehicles, the Fund invests in China A-Shares managed funds and historically its exposure to this market has been significant. Currently the Fund is significantly overweight the more emerging end of the MSCI Asia ex Japan spectrum especially to China (38.1%) and India (15.9%). Our rating for AUF is Recommended Plus. The shares were trading at a modest premium to pre-tax NTA at 31 December Solid Returns From Australian Share Focused LMIs The solid performance by domestic equities in 2017 resulted in good portfolio performances for Australian Shares focused listed managed investments. The average pre-tax NTA return of LMI s with a focus on Australian large cap shares was 9.1%, below the S&P/ 200 Accumulation Index return of 11.8%, but closer to the 9.5% return of the S&P/ 50 Accumulation Index. Diversified United Investment (:DUI) was the best performing Australian large cap focused LMI under our coverage, with a pre-tax NTA return of 14.9%. This LIC also has a small exposure to international equities with a weighting of 11%. The strong performance of international equities would have helped boost returns. As the above table shows, DUI is also one of the best performing LIC s over a five year period. We have a Recommended rating on DUI and, with the shares trading at a 4.5% discount to pre-tax NTA at the end of December, it still looks reasonable value. We note that the discount has narrowed from 8.1% over the past 12 months. DUI s sister LIC, Australian United Investment Company (:AUI) also delivered a strong pre-tax NTA return of 12.8% for the 12 months to 31 December Like DUI it invests in -listed shares, with a heavy focus on large cap stocks, with 75.8% of the portfolio allocated to companies within the 50. However, unlike DUI it has no international exposure. Over the past year the portfolio benefited from a number of strongly performing midand-large-cap stocks as well as being underweight the REIT and Telecommunications sectors. AUI s discount to pre-tax NTA has also narrowed over the past 12 months and was 3.8% at 31 December Our rating for AUI is Recommended Plus. Westoz Investment Company (:WIC) was the best performing LMI with a focus on shares outside the large end of the market. It s 12 month portfolio return of 23.1% was above the 20.0% S&P/ Small Ordinaries Accumulation Index return and well above the average return of 8.5% for LMIs that invest in mid and small cap shares. WIC benefited from the recovery in the resources sector and associated exposures in Western Australia. Our rating for WIC is Recommended, but we remind investors of the concentrated, cyclical nature of the company s investment portfolio. WIC s shares were trading at a 6.3% discount to pre-tax NTA at 31 December Forager Australian Shares Fund (:FOR) also delivered a strong portfolio return of 20.3% for the 12 months and, as shown in the table above has been the best performing LMI in our coverage over a five year period. Forager is a high conviction, deep value investor, which means that investors are heavily reliant on the Manager s stock picking abilities. To date it has delivered strong returns, however, investors should be mindful of the risks. Our rating is Recommended Plus, however, at 31 December 2017 the units were trading at 9.0% premium to net asset value. 2

3 Pricing & Recommendations Australian Share Focus Australian Shares - Large Cap Market Cap ($M) * Last Price ($) Dividend Yield Pre-Tax NTA ($)** Pre-tax NTA Prem/Disc 3 Year Avg Prem/Disc Fee IIR Rating Australian Foundation Investment Company AFI 7, % % 2.1% Internal 0.16 Highly Recommended Argo Investments ARG 5, % % 2.8% Internal 0.15 Highly Recommended Milton Corporation MLT 3, % % 0.4% Internal 0.13 Highly Recommended Australian United Investment AUI 1, % % -5.0% Internal 0.10 Recommended+ BKI Investment Company BKI 1, % % 2.3% Internal 0.16 Recommended+ Diversified United Investments DUI % % -6.0% Internal 0.13 Recommended WAM Leaders Limited WLE % % -1.4% External 1.00 Recommended Djerriwarrh Investments DJW % % 22.9% Internal 0.46 Recommended+ Whitefield Limited WHF % % -7.8% External 0.35 Recommended+ Plato Income Maximiser PL % % 4.2% External 0.80 Recommended+ AMCIL Limited AMH % % -2.1% Internal 0.65 Recommended+ Wealth Defender Equities WDE % % -8.8% External 0.98 Not Rated Absolute Equity Performance Fund AEG % % 5.7% External na Not Rated Century Australia CYA % % -4.8% External 1.08 Not Rated Aberdeen Leaders ALR % % -8.8% External 2.40 Rating Suspended Ironbark Capital IBC % % -9.0% External 0.65 Not Rated Aust Governance Masters Index Fund AQF % % -1.2% External 0.49 Not Rated Flagship Investments FSI % % -15.9% External 0.00 Recommended CBG Capital CBC % % -7.0% External 1.00 Recommended Aurora Property Buy Write Inc. Trust AUP % % -1.5% External 2.00 Not Rated Australian Shares - Mid/Small Cap WAM Capital WAM 1, % % 15.0% External 1.00 Recommended+ Carlton Investments CIN % % -11.9% Internal 0.08 Not Rated Mirrabooka Investments MIR % % 13.9% Internal 0.65 Highly Recommended Future Generation Investment Company FGX % % -2.1% External 0.00 Highly Recommended QV Equities QVE % % 2.7% External 0.90 Recommended+ WAM Research WAX % % 14.0% External 1.00 Highly Recommended WAM Microcap Limited WMI % % 7.4% External 1.00 Not Rated Forager Australian Shares Fund FOR % % 13.1% External 1.10 Recommended+ Naos Small Cap Opportunities Company Limited NSC % % -8.6% External 1.25 Not Rated Westoz Investment Company WIC % % -11.6% External 1.00 Recommended Thorney Opportunities TOP % % -7.6% External na Not Rated Spheria Emerging Companies SEC % % -2.0% External 1.00 Not Rated Contango Income Generator CIE % % -4.4% External 0.95 Rating Suspended Naos Emerging Opp Company NCC % % -5.0% External 1.25 Not Rated Ozgrowth Limited OZG % % -17.0% External 1.00 Not Rated Acorn Capital Inv Fund ACQ % % -15.5% External na Not Rated Naos Absolute Opportunities Company NAC % % -8.8% External 1.75 Not Rated Ryder Capital RYD % % -6.0% External na Not Rated Sandon Capital Investments SNC % % -6.3% External 1.25 Not Rated WAM Active Limited WAA % % 4.9% External 1.00 Recommended Glennon Small Companies Fund GC % % -6.5% External 1.00 Recommended Lion Select Group LSX % % -18.3% External 1.50 Not Rated 8IP Emerging Companies 8EC % % -10.9% External 1.25 Not Rated Katana Capital Limited KAT % % -7.7% External na Not Rated Barrack St Investments BST % % -16.4% External 1.00 Recommended Bentley Capital BEL % % -32.4% External na Not Rated Orion Equities OEQ % % -60.4% External na Not Rated Australian/International Shares - Blended Cadence Capital CDM % % 7.6% External 1.00 Recommended+ Perpetual Investment Company PIC % % -5.6% External 1.00 Recommended Clime Capital CAM % % -6.5% External na Not Rated Mercantile Investment Company MVT % % -15.2% External na Not Rated Sunvest Corporation SVS % % -42.0% External na Not Rated 3

4 Pricing & Recommendations International Shares & Specialist Focus International Shares - Diversified Market Cap ($M) * Last Price ($) Dividend Yield Pre-Tax NTA ($)** Pre-tax NTA Prem/Disc ($) 3 Year Avg Prem/Disc Fee IIR Rating Magellan Global Trust MGG 1, % % 5.4% External 1.35 Recommended + MFF Capital Investments MFF 1, % % -10.4% External 0.42 Not Rated VGI Partners Global Investments Limited VG % % 4.8% External 1.50 Recommended + Platinum Capital PMC % % 7.8% External 1.10 Not Rated PM Capital Global Opportunities Fund PGF % % -12.8% External 1.00 Not Rated Antipodes Global Investment Company Ltd APL % % -0.8% External 1.10 Not Rated Future Generation Global Investment Company FGG % % -0.5% External 0.00 Recommended+ Templeton Global Growth TGG % % -9.8% External 1.00 Not Rated Pengana International Equities Limited PIA % % -8.0% External 1.50 Recommended Contango Global Growth Limited CQG % % -0.6% External 1.25 Recommended + Ellerston Global Investments EGI % % -6.8% External 0.75 Recommended Fat Prophets Global Contrarian Fund FPC % % 0.7% External 1.25 Not Rated Morphic Ethical Equities Fund MEC % % 1.2% External 1.25 Not Rated International Shares - Emerging Markets Platinum Asia Investments PAI % % -2.2% External 1.10 Not Rated Emerging Markets Masters Fund EMF % % 0.5% External 1.10 Recommended+ Asian Masters Fund AUF % % 1.9% External 1.00 Recommended+ Ellerston Asian Investments EAI % % -9.9% External 0.95 Not Rated PM Capital Asian Opportunities Fund PAF % % -12.7% External 1.00 Not Rated International - Specialist Argo Global Listed Infrastructure ALI % % -9.5% External 1.20 Not Rated Evans & Partners Global Disruption Fund EGD % % 8.2% External 1.28 Recommended Global Value Fund GVF % % -3.7% External 1.50 Not Rated Zeta Resources ZER % % -15.6% External 0.50 Not Rated Global Masters Fund GFL % % -8.5% Internal 0.00 Recommended+ Fat Prophets Global Property Fund FPP % % 2.3% Aurora Global Income Trust AIB % % -2.5% External 1.33 Not Rated Fixed Income Funds MCP Master Income Trust MXT % % 3.7% External 0.60 Not Rated Private Equity Funds Cordish Dixon Private Equity Fund 1 CD % % 4.1% External 2.33 Recommended Cordish Dixon Private Equity Fund 3 CD % % 4.7% External 2.33 Recommended Cordish Dixon Private Equity Fund 2 CD % % 3.9% External 2.33 Recommended Bailador Technology Investments BTI % % -15.1% External 1.75 Recommended+ IPE Limited IPE % % -1.1% External 1.50 Not Rated Absolute Return Funds Australian Leaders Fund Limited ALF % % 2.8% External na Not Rated Watermark Market Neutral Fund WMK % % -4.7% External 1.00 Not Rated Contrarian Value Fund Limited CVF % % -5.7% External 1.00 Not Rated Watermark Global Leaders Fund Limited WGF % % -7.4% External 1.20 Not Rated Monash Absolute Investment Company Limited MA % % -7.3% External 1.50 Not Rated Alternative Investment Trust AIQ % % -16.0% External na Not Rated Hastings High Yield Fund HHY % % -12.3% External na Not Rated Aurora Absolute Return Fund ABW % % -11.0% External na Not Rated Other Specialist Blue Sky Alternatives Access Fund BAF % % 2.6% External 1.20 Not Rated Thorney Technologies Ltd TEK % % 6.5% External 0.75 Not Rated Duxton Water Limited D2O % % -4.1% External 0.85 Not Rated URB Investments URB % % 0.9% External 0.50 Recommended *Based on fully paid ordinary shares available for trade. **Pre-tax NTA includes tax paid on realised gains. Source: /IRESS 4

5 Performance Australian Share Focus NTA (plus dividends) Return (%) Share Price (plus dividends) Return (%) Benchmark Australian Shares - Large Cap 1 Mth 3 Mths 1 yr 3 yrs 5 yrs 1 Mth 3 Mths 1 yr 3 yrs 5 yrs Australian Foundation Investment Company AFI S&P/ 200 Acc Index Argo Investments ARG S&P/ 200 Acc Index Milton Corporation MLT All Ordinaries Acc Index Australian United Investment AUI Acc Index BKI Investment Company BKI S&P/ 300 Acc Index Diversified United Investments DUI Acc Index WAM Leaders Limited WLE na na na na S&P/ 200 Acc Index Djerriwarrh Investments DJW S&P/ 200 Acc Index Whitefield Limited WHF S&P/ 200 Industrials Acc (XJOAI) Index Plato Income Maximiser PL na na na na na na S&P/ 200 Franking Credit Adjusted Daily Total Return Index (Tax-exempt) AMCIL Limited AMH S&P/ 200 Acc Index Wealth Defender Equities WDE na na na na na Absolute Equity Performance Fund AEG na na na na na Century Australia CYA S&P/ 300 Acc Index Aberdeen Leaders ALR S&P 200 Acc Index Ironbark Capital IBC na Aust Governance Masters Index Fund AQF S&P/ 100 Acc Index Flagship Investments FSI All Ordinaries Index CBG Capital CBC na na S&P/ 200 Acc Index Aurora Property Buy Write Inc. Trust AUP RBA Cash Rate Australian Shares - Mid/Small Cap WAM Capital WAM All Ordinaries Acc Index Carlton Investments CIN S&P/ 200 Acc Index Mirrabooka Investments MIR S&P/ Mid Cap 50 s Acc Index, S&P/ Small Ordinaries Acc Index Future Generation Investment Fund FGX na na All Ordinaries Acc Index QV Equities QVE na na na WAM Research WAX All Ordinaries AccIndex WAM Microcap Limited WMI na na na na na na Forager Australian Shares Fund* FOR na na na 8% Absolute Naos Small Cap Opportunities Company Limited NSC All Ordinaries Acc Index Westoz Investment Company WIC Absolute return focus Thorney Opportunities TOP na Spheria Emerging Companies SEC 3.2 na na na na -1.0 na na na na S&P/ Small Ords Acc Index Contango Income Generator CIE na na na na All Ordinaries Acc Index Naos Emerging Opp Company NCC na na Small Ordinaries Acc Index (XSOAI) Ozgrowth Limited OZG Absolute return focus Acorn Capital Inv Fund ACQ na na na Naos Absolute Opportunities Coy. NAC na na na Ryder Capital RYD na na na na na Sandon Capital Investments SNC na na na WAM Active Limited WAA All Ordinaries Acc Index Glennon Small Companies Fund GC na na na na Small Ords Acc Index Lion Select Group LSX na na na 8IP Emerging Companies 8EC na na na na Emerging Co. Acc Index Katana Capital Limited KAT na Barrack St Investments BST na na All Ordinaries Accum Index Bentley Capital BEL na Orion Equities OEQ na Australian/International Shares - Blended Cadence Capital CDM All Ordinaries Acc Index Perpetual Investment Company PIC na na na Clime Capital CAM na Mercantile Investment Company MVT na Sunvest Corporation SVS na 5

6 Performance International Shares & Specialist Focus NTA (plus dividends) Return (%p.a) Share Price (plus dividends) Return (%p.a) International Shares - Diversified 1 Mth 3 Mths 1 yr 3 yrs 5 yrs 1 Mth 3 Mths 1 yr 3 yrs 5 yrs Benchmark Magellan Global Trust MGG na na na -0.9 na na na na MSCI World Net Total Return A$ Index MFF Capital Investments MFF na VGI Partners Global Investments Limited VG na na na na na na na Platinum Capital PMC MSCI All Country World Net Index in A$ PM Capital Global Opportunities Fund PGF na na na Antipodes Global Investment Company Ltd APL na na na na MSCI All Country Word Net Index (AUD) Future Generation Global Investment Company FGG na na na na MSCI World Index AUD Templeton Global Growth TGG MSCI All Country World Free Index Pengana International Equities Limited PIA MSCI Total Return Index, Net Dividends Reinvested in Australian dollars Contango Global Growth Limited CQG na na na na na na MSCI AWCI ex Australia, AUD Ellerston Global Investments EGI na na na Fat Prophets Global Contrarian Fund FPC na na na na na na Morphic Ethical Equities Fund MEC na na na na na na International Shares - Emerging Markets Increase in value of investment portfolio above previous high MSCI All Countries World Daily Total Return Net Index Platinum Asia Investments PAI na na na na na Emerging Markets Masters Fund EMF MSCI Emerging Mkt Index Asian Masters Fund AUF MSCI AC Asia ex Japan Index Ellerston Asian Investments EAI na na na na na PM Capital Asian Opportunities Fund PAF na na na International - Specialist Argo Global Listed Infrastructure ALI na na na na na Evans & Partners Global Disruption Fund EGD na na na na na na na Global Value Fund GVF na na BBSW 1 year swap rate + 4 Zeta Resources ZER na na na Global Masters Fund GFL S&P 500 US Index Fat Prophets Global Property Fund FPP 0.5 na na na na 1.8 na na na na Blend of domestic & Int REIT Indices Aurora Global Income Trust AIB UBS Australia Bank Bill Index Fixed Income Funds MCP Master Income Trust MXT 0.1% na na na na 1.5% na na na na na Private Equity Funds Cordish Dixon Private Equity Fund 1 CD na Cordish Dixon Private Equity Fund 3 CD na na na na 8% Absolute Cordish Dixon Private Equity Fund 2 CD na na Absolute Return w H/W Mark Bailador Technology Investments BTI na na 8% p.a. compound IPE Limited IPE na Absolute Return Funds Australian Leaders Fund Limited ALF All Ordinaries Acc Index Watermark Market Neutral Fund WMK na na na Contrarian Value Fund Limited CVF na na na na na Watermark Global Leaders Fund Limited WGF na na na na RBA Cash Rate Monash Absolute Investment Company Limited MA na na na na na Alternative Investment Trust AIQ na Hastings High Yield Fund HHY na Aurora Absolute Return Fund ABW RBA Cash Rate Other Specialist Blue Sky Alternatives Access Fund BAF na na na Thorney Technologies Ltd TEK na na na na na na Increase in NAV Duxton Water Limited D2O na na na na 8% Absolute URB Investments URB na na na na na na 8% increase in NTA (after ordinary dividends) 6

7 NTA (plus dividends) Return (%p.a) Share Price (plus dividends) Return (%p.a) International Shares - Diversified 1 Mth 3 Mths 1 yr 3 yrs 5 yrs 1 Mth 3 Mths 1 yr 3 yrs 5 yrs Benchmark Returns S&P/ 50 Accumulation Index XFLAI na na na na na na S&P/ 200 Accumulation Index XJOAI na na na na na na S&P/ 300 Accumulation Index XKOAI na na na na na na All Ordinaries Accumulation Index XAOAI na na na na na na Small Ordinaries Accumulation Index XSOAI na na na na na na S&P/ 200 Industrials Accumulation Index XJIAI na na na na na na S&P/ 200 Resources Accumulation Index XMJAI na na na na na na RBA Cash Rate at 31 October 2017: 1.5% *FOR only listed in December Pre-tax NTA + Dividends performance includes pre-listing performance. Share price performance is from listing. Source: /IRESS Note: Share Price and NTA are adjusted using adjustment factors provided by IRESS. Active ETFs About Active ETFs Benchmark Active ETFs are a relatively new type of exchange traded product (ETP) traded on the. While traditional exchange traded funds (ETFs) adopt passive strategies that synthetically track the performance of an index or other benchmark, Active ETFs are actively managed funds. The legal structure is the same as a traditional managed fund, but the units can be bought and sold on the just like shares. Unlike listed investment companies, Active ETFs are open ended with the manager acting as market maker. This ensures the units trade close to net asset value. The manager issues new units as required to meet market demand. Pricing & Rating Australian Share Strategies Market Cap ($) Last Price ($) Dividend Yield Aurora Dividend Income Trust AOD % Not Rated Betashares Aus Top20 Equity Yield Max Fund YMAX % na 0.59 Not Rated Betashares Australian Dividend Harvester Fund HVST % na 0.65 Not Rated BetaShares Australian Equities Bear Hedge Fund BEAR % na 1.19 Not Rated Betashares Australian Equities Strong Bear Hedge Fund BBOZ % na 1.19 Not Rated Betashares Geared Australian Equity Fund GEAR % na 0.80 Not Rated Betashares Managed Risk Australian Share Fund AUST % na 0.39 Not Rated BetaShares Active Australian Hybrids Fund HBRD % na 0.55 Not Rated K2 Australian Small Cap Fund KSM % Recommended BetaShares Australian Small Companies Fund (Managed Fund) SMLL % na 0.39 Not Rated Switzer Dividend Growth Fund SWTZ % Rating Suspended International Share/Security Strategies AMP Capital Global Infrastructure Securities Fund (Unhedged) GLIN % na 0.95 Not Rated AMP Capital Global Property Securities Fund (Unhedged) RENT % na 0.99 Not Rated BetaShares US Equities Strong Bear Currency Hedged BBUS % na 1.38 Not Rated BetaShares Geared U.S. Equity Fund - Currency Hedged GGUS % na 0.74 Not Rated Betashares Managed Risk Global Share Fund WRLD % na 0.39 Not Rated BetaShares S&P 500 Yield Maximiser Fund UMAX % na 0.59 Not Rated K2 Global Equities Fund KII % Not Rated Magellan Global Equities Fund MGE % Not Rated Magellan Global Equities Fund (Currency Hedged) MHG % Not Rated Montgomery Global Equities Fund MOGL % Not Rated Platinum International Fund PIXX % na 1.76 Not Rated Platinum Asia Fund PAXX % na 1.58 Not Rated Schroders Real Return Fund (Managed Fund) GROW % na 0.90 Not Rated AMP Capital Dynamic Markets Fund (Hedge Fund) DMKT % na 0.48 Not Rated Magellan Infrastructure Fund (Currency Hedged) (Managed Fund) MICH % na 0.95 Not Rated Commodity & Currency Strategies Betashares Strong Australian Dollar Fund (Hedge Fund) AUDS % na 1.38 Not Rated Betashares Strong US Dollar Fund (Hedge Fund) YANK % na 1.38 Not Rated NAV ($) Fee IIR Rating 7

8 Performance NAV (plus dividends) Return (%p.a) Share Price (plus dividends) Return (%p.a) Australian Share Strategies 1 Mth 3 Mths 1 year 3 years 5 years 1 Mth 3 Mths 1 year 3 years 5 years Aurora Dividend Income Trust AOD Betashares Aus Top20 Equity Yield Max Fund YMAX na na na na na Betashares Australian Dividend Harvester Fund HVST na na na na na na! BetaShares Australian Equities Bear Hedge Fund BEAR na na na na na Betashares Australian Equities Strong Bear Hedge Fund BBOZ na na na na na na na Betashares Geared Australian Equity Fund GEAR na na na na na na Betashares Managed Risk Australian Share Fund AUST na na na na na na na BetaShares Active Australian Hybrids Fund HBRD na na na na na 1.1 na na na na K2 Australian Small Cap Fund KSM na na na na BetaShares Australian Small Companies Select Fund (Managed Fund) SMLL na na na na na na na na Switzer Dividend Growth Fund SWTZ na na na na na na na na International Share/Security Strategies AMP Capital Global Infrastructure Securities Fund (Unhedged) GLIN na na na na na na na AMP Capital Global Property Securities Fund (Unhedged) RENT na na na na na na na BetaShares US Equities Strong Bear Currency Hedged BBUS na na na na na na na BetaShares Geared U.S. Equity Fund - Currency Hedged GGUS na na na na na na na Betashares Managed Risk Global Share Fund WRLD na na na na na na na BetaShares S&P 500 Yield Maximiser Fund UMAX na na na na na na K2 Global Equities Fund KII na na na na Magellan Global Equities Fund MGE na na na na Magellan Global Equities Fund (Currency Hedged) MHG na na na na Montgomery Global Equities Fund MOGL na na na na na na na na na na Platinum International Fund PIXX na na na na na na na na Platinum Asia Fund PAXX na na na na na na na na Schroders Real Return Fund (Managed Fund) GROW na na na na na na na AMP Capital Dynamic Markets Fund (Hedge Fund) DMKT na na na na na na na Magellan Infrastructure Fund (Currency Hedged) (Managed Fund) MICH na na na na Commodity & Currency Strategies Betashares Strong Australian Dollar Fund (Hedge Fund) AUDS na na na na na na na na Betashares Strong US Dollar Fund (Hedge Fund) YANK na na na na na na na na 8

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