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1 Blue Sky Alternative Investments Limited ACN Appendix 4D Blue Sky Alternative Investments Limited ACN Appendix 4D Half Year Report for the half year ended 31 December Details of the reporting period and the prior corresponding period Current period: 1 July 2012 to 31 December 2012 Prior corresponding period: 1 July 2011 to 31 December Results for announcement to the market Key information 6 months to 31 December 2012 $000 s 6 months to 31 December 2011 $000 s Variance (%) Revenue from ordinary activities 4,831 3, Profit/(loss) from ordinary activities after tax attributable to members Profit/(loss) for the period attributable to members 569 2,096 (71) 569 2,096 (71) Details of Distributions Dividends per ordinary share Amount per security Franked amount per security Final dividend (declared and paid at 31 December 2012) $0.06 $ Net tangible assets Net tangible assets As at 31 December 2012 As at 31 December 2011 Net tangible asset backing per share 1 $ $ Under the Listing Rules NTA backing must be determined by deducting from total tangible assets all claims on those assets ranking ahead of the ordinary securities (ie: all liabilities, preference shares, outside equity interest etc). Control gained or lost over entities during the period

2 Appendix 4D Half Year Report 4. Details of Associates and Joint Venture entities Blue Sky Water Partners Pty Limited, a wholly owned subsidiary of Blue Sky Alternative Investments Limited acquired 2,750,000 stapled securities in the Water Utilities Infrastructure Fund in the half year ended 31 December This investment has been accounted for using the equity method in the consolidated interim report. 5. Accounting standards used by foreign entities Not applicable. 6. Audit This report is based on accounts to which one of the following applies: The accounts have been audited (refer attached financial statements) The accounts are in the process of being audited or subject to review. The accounts have been subject to review. (refer attached financial statements) The accounts have not yet been audited or reviewed. 1

3 Blue Sky Alternative Investments Limited ACN Half-Year Report for the period ended 31 December

4 Directors Report The Directors present their report for the half-year ended 31 December Directors The Directors of the Company at any time during or since the end of the half-year are: Mark Sowerby John Kain Tim Wilson Alexander McNab Directors have been in office since the start of the financial period to the date of this report unless otherwise stated. Principal Activities The principal activities of the Group during the financial period consisted of managing alternative assets across four major alternative asset classes - Private Equity, Private Real Estate, Hedge Funds and Real Assets. Review of Operations Investment activities Investment performance across our four asset classes (Private Equity, Private Real Estate, Hedge Funds and Real Assets) remains strong, with investment returns for each of our investment divisions ahead of their respective benchmarks. Investment performance is fundamental to the future success of the Group, as it underpins growth in assets under management, performance fees, and the returns from the investments that the Group has in its funds. The half year to 31 December 2012 saw a significant increase in management fees relative to the previous corresponding period. The Group s management fees are a combination of annuity-style revenues on some product offerings, with one-off management fees in others. Over time, we expect to see annuity-style revenues contributing a higher proportion of the Group s revenues as our assets under management grow. Performance fees were lower for the half year to 31 December 2012 when compared with the previous corresponding period, primarily due to a private real estate transaction that was completed in the half year to 31 December However, given the strong investment performance across each of the asset classes outlined above, we expect a significant uplift in performance fees in the second half of this financial year. The half year to 31 December 2012 saw an increase in the investments that the Group has in its own funds, generally as a result of taking units in our funds in lieu of cash fees. We believe that these investments benefit the Group by creating greater alignment between the interests of our investors and our managers, increasing the probability of success as we seek institutional capital, and providing exposure for the Group s shareholders to attractive investment opportunities. We currently have stakes in our private equity fund, a number of private real estate funds and our water infrastructure fund. During the period, we expanded our product offering into water infrastructure through the establishment of the Water Utilities Australia Fund. We view water infrastructure as a significant investment opportunity and anticipate a substantial privatisation program across Australia. We believe we are uniquely positioned to harness this opportunity, and that it will be a significant contributor to the Group s future growth. The nature of our investment style is that long term trends matter, and as such our ability to participate in these trends across multiple asset classes can provide both headwinds and tailwinds, depending on our relative success. Our investment themes across our private equity, private real estate, hedge fund and real asset divisions are currently performing well and we expect this to provide impetus to the business in the medium term. 2

5 Fundraising activities The first half of the financial year was characterised by a significant number of marketing and distribution initiatives designed to raise awareness of Blue Sky s product offering across alternative investments. Our assets under management have grown to around $220 million as at 31 December 2012, primarily through increased investment from family office, high net worth and retail clients. Our marketing and distribution initiatives are also being reflected in our first overseas allocations and increased engagement with institutional investors. In particular, our USA strategy is gaining momentum. The US market has a deep, sophisticated pool of investors who understand alternative assets. We have US investor engagement across our water fund and hedge fund offerings, which we expect to translate into additional funds under management in the short to medium term. The transition from private capital to institutional capital is a well-worn path of successful fund managers. Given the Group s current level of activity among institutional clients, we anticipate accelerated growth in assets under management in the remainder of 2013 and beyond. Financial performance The Directors are pleased to report that the profit for the Group after providing for income tax and noncontrolling interest amounted to $569,255, with an EBITDA of $1,232,645. These results were in line with the directors expectations. The Group s operating revenue for the half year ended 31 December 2012 increased by 21% on the previous corresponding period. This growth was largely driven by increases in management fees, offsetting reductions in performance fees (described in more detail above). Other income fell substantially due to the impact of a one-off transaction in the previous corresponding period. Traditionally, our business generates more revenue in the second half of the financial year, driven in part by increased investment activity in this period. In 2013, we are seeing the usual signs of increasing investment opportunities, which we expect to be reflected in the Group s income in the second half. In addition, as noted above, given the strong investment performance across the Group s asset classes, we expect a significant uplift in performance fees in the second half of the financial year. We also expect our operating expenses to remain stable or to fall in the second half, as operating expenses in the first half were negatively affected by one-off investments in distribution, marketing and product development. The Group s operating cashflows were affected by $1.5 million in revenue that was taken as 1.5 million stapled securities in Water Utilities Australia Fund. While this reduces short term cashflow, it benefits the Group by creating greater alignment between the interests of our investors and our managers, increasing the probability of success as we seek institutional capital, and providing exposure for the Group s shareholders to attractive investment opportunities. The Directors expectations for the full year are commensurate with the financial performance of the previous financial year (2012: $3.5 million NPAT after adjusting for significant non-cash items and other items associated with roll up and IPO). Auditor s independence declaration A copy of the auditor's independence declaration as required under section 307C of the Act is set out on the following page. This report is made in accordance with a resolution of Directors, pursuant to section 306(3)(a) of the Corporations Act On behalf of the Directors John Kain Chairman Mark Sowerby Director 21 February 2013 Brisbane 3

6 Auditor s Independence Declaration to the Directors of Blue Sky Alternative Investments Limited In relation to our review of the financial report of Blue Sky Alternative Investments Limited for the halfyear ended 31 December 2012, to the best of my knowledge and belief, there have been no contraventions of the auditor independence requirements of the Corporations Act 2001 or any applicable code of professional conduct. Ernst & Young Paula McLuskie Partner Brisbane 21 February 2013 Liability limited by a scheme approved under Professional Standards Legislation

7 Contents Page Financial Report Statement of Comprehensive Income 6 Statement of Financial Position 7 Statement of Changes in Equity 8 Statement of Cash Flows 9 Notes to the Financial Statements 10 Directors' Declaration 14 Independent Auditor's Report to the members of Blue Sky Alternative Investments 15 Limited General information The financial report covers Blue Sky Alternative Investments Limited ( Company or parent entity ) as a consolidated entity consisting of the Company and the entities it controlled (the Group ). The financial report is presented in Australian dollars, which is the Company s functional and presentation currency. The financial report consists of the financial statements, notes to the financial statements and the Directors' Declaration. The Company is a publicly listed company limited by shares, incorporated and domiciled in Australia. Its registered office and principal place of business is: Level 2, 40 Edward Street Brisbane QLD 4000 A description of the nature of the Group s operations and its principal activities are included in the Directors' Report, which is not part of the financial report. The financial report was authorised for issue, in accordance with a resolution of Directors, on the date that the Directors Declaration was signed. The Directors have the power to amend and reissue the financial report. 5

8 Statement of Comprehensive Income For the half-year ended 31 December 2012 Dec 2012 Dec 2011 Note $ $ Revenue Operating revenue 3 4,831,291 3,978,530 Share of loss of associates accounted for using the equity method (48,502) (46,017) Other income 4 620,691 1,740,675 Expenses Employee benefits expense (2,229,019) (1,936,665) Depreciation and amortisation expense (456,322) (45,942) Consultancy (232,213) (76,082) Distribution (248,687) (106,785) Marketing (68,198) (27,857) Occupancy (172,650) (139,696) Administrative (992,706) (1,043,265) Other expenses (155,056) (7,376) Finance costs (19,277) (55,589) Profit / (loss) before income tax 829,352 2,233,931 Income tax (expense) / benefit 5 (260,097) (257,480) Profit / (loss) after income tax for the half-year 569,255 1,976,451 Other comprehensive income Items that may be reclassified subsequently to profit or loss Gain on the revaluation of available-for sale - - financial assets, net of tax Other comprehensive income for the half-year, net of tax - - Items that will not be reclassified subsequently to profit or loss Total comprehensive income/(loss) for the half-year 569,255 1,976,451 Profit / (loss) for the half-year is attributable to: Non-controlling interest - (119,327) Owners of Blue Sky Alternative Investments Limited 569,255 2,095, ,255 1,976,451 Total Comprehensive income/(loss) for the halfyear is attributable to: Non-controlling interest - (119,327) Owners of Blue Sky Alternative Investments Limited 569,255 2,095, ,255 1,976,451 Earnings per share Cents Cents Basic earnings per share (profit/(loss) per share) Diluted earnings per share (profit/(loss) per share) The above statement of comprehensive income should be read in conjunction with the accompanying notes 6

9 Statement of Financial Position As at 31 December 2012 Dec 2012 June 2012 Note $ $ Assets Current assets Cash and cash equivalents 3,355,833 5,736,702 Trade and other receivables 1,236,583 1,429,785 Other assets 106, ,417 Total current assets 4,698,608 7,456,904 Non-current assets Receivables 1,519,844 1,624,494 Investments accounted for using the equity method 6 3,987,702 1,161,204 Financial assets at fair value through profit and loss 7 2,903,659 2,595,159 Property, plant and equipment 120,716 2,258,548 Intangible assets 4,407,919 4,591,176 Deferred tax assets - 255,020 Total non-current assets 12,939,840 12,485,601 Total assets 17,638,448 19,942,505 Liabilities Current liabilities Trade and other payables 1,958,099 3,037,365 Borrowings 117,558 75,784 Income tax 740, ,846 Employee benefits 261, ,451 Total current liabilities 3,077,694 4,216,446 Non-current liabilities Deferred revenue 246,800 - Provisions 20,132 20,132 Borrowings 19,937 53,824 Deferred tax liabilities 5,323 - Total non-current liabilities 292,192 73,956 Total liabilities 3,369,886 4,290,402 Net assets 14,268,562 15,652,103 Equity Contributed equity 18,676,705 18,676,705 Reserves (7,104,181) (7,104,181) Accumulated profits/(losses) 2,696,038 4,079,579 Equity attributable to the owners of Blue Sky Alternative Investments Limited 14,268,562 15,652,103 Total equity 14,268,562 15,652,103 The above statement of financial position should be read in conjunction with the accompanying notes 7

10 Statement of Changes in Equity For the half-year ended 31 December 2012 Contributed equity Reserves Accumulated profits / (losses) Non-controlling interests Total equity $ $ $ $ $ Balance at 1 July ,060, ,813 (792,069) 296,372 1,682,837 Profit/(loss) after income tax for the half-year Other comprehensive income for the half-year, net of tax Total comprehensive income/(loss) for the halfyear - - 2,095,778 (119,327) 1,976, ,095,778 (119,327) 1,976,451 Transactions with owners in their capacity as owners: Contributions of equity, net of transaction costs 10,458, ,458,618 Share-based payments - 290, ,217 Increase/(decrease) in Noncontrolling interest (NCI) - (7,436,611) - (42,645) (7,479,256) Revaluation surplus reserve - (75,600) - (134,400) (210,000) Balance at 31 December ,519,339 (7,104,181) 1,303,709-6,718,867 Contributed equity Reserves Accumulated profits / (losses) Non-controlling interests Total equity $ $ $ $ $ Balance at 1 July ,676,705 (7,104,181) 4,079,579-15,652,103 Profit/(loss) after income tax for the half-year , ,255 Other comprehensive income for the half-year, net of tax Total comprehensive income/(loss) for the halfyear , ,255 Transactions with owners in their capacity as owners: Dividends - - (1,952,796) - (1,952,796) Balance at 31 December ,676,705 (7,104,181) 2,696,038-14,268,562 The above statement of changes in equity should be read in conjunction with the accompanying notes 8

11 Statement of Cash Flow For the half-year ended 31 December Note $ $ Cash flows from operating activities Receipts from customers (inclusive of GST) 3,942,060 1,386,908 Payments to suppliers and employees (inclusive of GST) (4,503,422) (2,569,508) (561,362) (1,182,600) Interest received 72,306 5,182 Interest and other finance costs paid (19,277) (34,524) Income taxes paid (143,411) (62,551) Net cash used in operating activities (651,744) (1,274,493) Cash flows from investing activities Cash acquired on purchase of controlled entity, net of cash payment for acquisition - 182,462 Payments for property, plant and equipment (112,591) (3,974) Payments for intangibles - (6,782) Proceeds from disposal of subsidiary, net of cash transferred 9 1,261,223 - Loans from/(to) related and other parties (933,907) - Net cash used in investing activities 214, ,706 Cash flows from financing activities Proceeds from issue of shares - 885,000 Proceeds from borrowings 49, ,974 Repayment of borrowings - (104,910) Payment of finance lease and hire purchase liabilities (40,113) - Dividends paid (1,952,796) (54,000) Net cash from financing activities (1,943,850) 838,064 Net increase in cash and cash equivalents Cash and cash equivalents at the beginning of the half- year Cash and cash equivalents at the end of the half-year (2,380,869) (264,723) 5,736, ,786 3,355, ,063 The above statement of cash flows should be read in conjunction with the accompanying notes 9

12 Notes to Financial Statements For the half-year ended 31 December 2012 Note 1. Significant Accounting Policies These financial statements for the interim half-year reporting period ended 31 December 2012 have been prepared in accordance with Australian Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Act These financial statements do not include all the notes of the type normally included in annual financial statements. Accordingly, these financial statements are to be read in conjunction with the annual report for the year ended 30 June 2012 and any public announcements made by the company during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act The principal accounting policies adopted are consistent with those of the previous financial year. The Group has not early adopted any standard, interpretation or amendment that has been issued but is not yet effective. Note 2. Operating segments Identification of reportable operating segments The Group has one operating segment only: Alternative Asset Management. This operating segment is based on the internal reports that are reviewed and used by the Board of Directors (who are identified as the Chief Operating Decision Makers ( CODM )) in assessing performance and in determining the allocation of resources. There is no aggregation of operating segments. The CODM reviews both adjusted earnings before interest, tax, depreciation and amortisation (segment result) and profit before income tax. The information reported to the CODM is on at least a monthly basis. Types of products and services The principal products and services of each of these operating segments are as follows: Alternative Asset Management Note 3. Operating revenue Dec 2012 Dec 2011 $ $ Management fees 3,909,972 2,234,166 Administration fees 52,500 52,500 Responsible entity revenue 284, ,404 Performance fees - 1,323,216 Interest 72,306 5,182 Other revenue 511,879 32,062 Operating revenue 4,831,291 3,978,530 Total Revenue from related parties during the period to 31 December 2012 was $4,685,446 (31 December 2011: $3,934,624). 10

13 Notes to Financial Statements For the half-year ended 31 December 2012 Note 4. Other Income Dec 2012 Dec 2011 $ $ Revaluation of investments Blue Sky Water Partners Pty - 1,740,675 Limited Net gain on disposal of business (Note 9) 620,691 - Other Income 620,691 1,740,675 Note 5. Income Tax Expense / (Benefit) The Group calculates the income tax expense using the tax rate that would be applicable to expected total annual earnings, i.e. the estimated average annual effective income tax rate applied to the pre-tax income of the current period. The major components of income tax expense in the consolidated income statement for the period are: Dec 2012 Dec 2011 $ $ Income tax expense / (benefit) Current tax (8,853) 588,875 Deferred tax 268,950 (331,395) Aggregate income tax expense / ( benefit) 260, ,480 Note 6. Non-current assets investments accounted for using the equity method Dec 2012 June 2012 Associate $ $ Riverside Gardens Trust (i) 1,112,702 1,161,204 Stapled securities in Water Utilities Australia Fund (ii) 2,875,000-3,987,702 1,161,204 Refer below for detailed information on investments in associates: Percentage interest Dec 2012 June 2012 Associate % % Riverside Gardens Trust (i) 37.5 % 37.5% Water Utilities Australia Fund (ii) % - (i) Blue Sky Private Real Estate Pty Ltd was issued with 1,200,000 units in the Riverside Gardens Trust on 1 December Since 1 December 2011, the Riverside Gardens Trust has incurred losses of $232,795. Blue Sky Private Real Estate Pty Ltd share of these losses have been deducted against the initial holding amount of $1,200,000. (ii) Blue Sky Water Partners Pty Ltd was issued with 2,875,000 stapled securities in Water Utilities Australia Fund on 24 December (Note 9) 11

14 Notes to Financial Statements For the half-year ended 31 December 2012 Note 7. Financial assets at fair value through profit and loss Dec 2012 Jun 2012 $ $ Investments held in related parties Blue Sky Private Equity 2010 Institutional Trust 1,620,159 1,620,159 Blue Sky Management Rights Income Fund 250, ,000 Blue Sky VC Milk Fund 200, ,000 Blue Sky VC2012 Fund LP 525, ,000 Water Utilities Australia Fund (Options) 308,500-2,903,659 2,595,159 Reconciliation Reconciliation of the fair values at the beginning and end of the current and previous financial year are set out as follows: Opening Fair Value 2,595,159 1 Additions 308,500 2,461,477 Revaluations - 133,681 Disposals - - Closing Fair Value 2,903,659 2,595,159 Note 8. Events occurring after the reporting date No matter or circumstance has arisen since 31 December 2012 that has significantly affected, or may significantly affect the Group s operations, the results of those operations, or the Group s state of affairs in future financial years. Note 9. Lightsview Re-water Infrastructure network a) Disposal of interest in Lightsview Re-water Infrastructure network On 24 December 2012, the Group disposed of its 100% interest in the Lightsview Re-water Infrastructure Network (recycled water operations), held via its ownership in Blue Sky Water Partners Pty Ltd. The disposal represented a sale of the business, which included plant and equipment, the original contracts to supply recycled water to the Lightsview housing development in Adelaide (acquired in June 2012) as well as a recent contract (entered into in November 2012) to supply recycled water to the Port Adelaide Enfield Council *. The business operations were sold for $2,750,000 to Water Utilities Infrastructure Holdings Limited being an entity formed for the purpose of acquiring and investing in Australian Water Infrastructure assets. Consideration was received in cash and stapled securities in the new entity. The consideration of $2,750,000 received on disposal was received in the following manner: Cash received by Blue Sky Water Partners Pty Ltd: 1,375,000 Investment in Water Utilities Australia Fund (stapled security) issued to Blue Sky Water Partners Pty Ltd comprising: 1,375,000 Investment in stapled securities in Water Utilities Australia $1.00 (see Note 6): 1,375,000 Total consideration on sale/disposal 2,750,000 $ 12

15 Notes to Financial Statements For the half-year ended 31 December 2012 Note 9. Lightsview Re-water Infrastructure network (continued) As a result of the above transaction the following gain on disposal of the Group s water infrastructure network business assets was recorded in the Statement of Comprehensive income for the period: $ Consideration on Sale/ Disposal 2,750,000 Less: Holding value of the business identifiable assets comprising: Written down value of Plant and Equipment (2,107,358) Value of cash assets (113,777) Value of receivables/payables and other assets 91,826 Gain on disposal of business* 620,691 * The accounting gain on disposal of the Lightsview Re-water Infrastructure Network reflects the fair value of the contract (carrying value as at 30 June 2012 of $nil) with Port Adelaide Enfield Council that the business entered into during the period prior to disposal. b) Ongoing relationship with the Water Utilities Australia Fund Blue Sky Water Partners Pty Ltd received $2,425,000 in management fees from the Water Utilities Australia Fund in the period ended 31 December Consideration for the management fees received by Blue Sky Water Partners Pty Ltd was in the form of cash and stapled securities in the new entity. In addition, Blue Sky Water Partners Pty Ltd received an option to purchase a further 5,000,000 stapled securities in Water Utilities Australia Fund. The option has an exercise price of $1.00 per security and a two year exercise period from grant date. The initial fair value on grant date has been determined to be $308,500. The initial fair value on grant date of this option is deemed to be a management fee and has been recorded as a Financial Asset at Fair Value through Profit and Loss (refer Note 7) with a corresponding liability relating to unearned management fee income in the Statement of Financial Position. This income is to be recognised over the service period through profit and loss. At each reporting date any subsequent movements in the fair value of the option will be recorded in the profit and loss as performance fee income. Note 10. Earnings per share Dec 2012 Dec 2011 $ $ Profit / (loss) after income tax 569,255 1,976,451 Non-controlling interest - 119, ,255 2,095,778 Number Number Weighted average number of ordinary shares used in calculating basic earnings per share 32,546,018 17,212,539 Adjustments for calculation of diluted earnings per share: Options - 225,000 Weighted average number of ordinary shares used in calculating diluted earnings per share 32,546,018 17,437,539 Cents Cents Basic earnings per share Diluted earnings per share

16 Directors Declaration For the half-year ended 31 December 2012 In accordance with a resolution of the Directors of the Company, the Directors declare that: 1. the financial statements and notes, as set out on pages 6 to 13: a. comply with the Corporations Act 2001, Australian Accounting Standard AASB 134 Interim Financial Reporting, the Corporations Regulations 2001 and other mandatory professional reporting requirements; and b. give a true and fair view of the consolidated entity s financial position as at 31 December 2012 and of the performance for the half- year ended on that date; 2. in the Directors opinion there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable. On behalf of the Directors John Kain Chairman Mark Sowerby Director 21 February 2013 Brisbane 14

17 To the members of Blue Sky Alternative Investments Limited Report on the Half-Year Financial Report We have reviewed the accompanying half-year financial report of Blue Sky Alternative Investments Limited, which comprises the consolidated statement of financial position as at 31 December 2012, the consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the half-year ended on that date, notes comprising a summary of significant accounting policies and other explanatory information, and the directors declaration of the consolidated entity comprising the company and the entities it controlled at the half-year end or from time to time during the half-year. Directors Responsibility for the half-year Financial Report The directors of the company are responsible for the preparation of the half-year financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal controls as the directors determine are necessary to enable the preparation of the half-year financial report that is free from material misstatement, whether due to fraud or error. Auditor s Responsibility Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity, in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the consolidated entity s financial position as at 31 December 2012 and its performance for the halfyear ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations As the auditor of Blue Sky Alternative Investments Limited and the entities it controlled during the half-year ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report. A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Independence In conducting our review, we have complied with the independence requirements of the Corporations Act We have given to the directors of the company a written Auditor s Independence Declaration, a copy of which is included in the Directors Report. Liability limited by a scheme approved under Professional Standards Legislation

18 Conclusion Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of Blue Sky Alternative Investments Limited is not in accordance with the Corporations Act 2001, including: a) giving a true and fair view of the consolidated entity s financial position as at 31 December 2012 and of its performance for the half-year ended on that date; and b) complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations Ernst & Young Paula McLuskie Partner Brisbane 21 February 2013