Portfolio Report. AMS Moderately Conservative Fund. Report data as at 31 May 2018 Portfolio inception Nov 2014

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1 Portfolio Report Report data as at 31 May 2018 Portfolio inception Nov 2014 AMS Moderately Conservative Fund Portfolio Objective The investment objective of the AMS Moderately Conservative Fund is to provide returns (before fees and costs) equivalent to the Consumer Price Index (CPI) plus 2.5% p.a. to investors over the medium term. Investor Type This fund is designed for those investors with a MODERATE risk profile seeking a diversified investment strategy with a solid income profile and moderate levels of capital growth Net Returns (% p.a.) 3 yrs 2 yrs 1 yr Portfolio Median Mgr Benchmark Performance Benchmarks Competitors: Zenith Median Manager - 50% Growth / 50% Defensive Benchmark: Diversified Market Benchmark - 50% Growth / 50% Defensive Portfolio Holdings Name Wgt % Cash 9.50 BetaShares AU High Int Csh ETF 9.50 Fixed Interest JH Tactical Inc 8.50 PIMCO Diversified FI WS Class 8.50 Payden Global Income Opps 8.50 T. Rowe Price Dynamic Gbl Bnd 8.50 Alternatives GMO Systematic Gbl Macro B 3.65 Man AHL Alpha (AUD) 3.65 Ellerston Aus Market Neutral 3.75 AMP Capital Div Infra 1.50 Australian Shares BetaSh FTSE RAFI Aus 200 ETF 1.75 Fidelity Australian Equities 3.65 Ironbark Karara Aus Share 1.80 Allan Gray Australia Equity Cls B 3.65 L1 Capital Long Short - WS Cl 4.25 Bennelong Ex-20 AU Equities 3.65 Fixed Interest 3.65 Bentham Global Inc 3.65 International Shares Robeco Emg Conservative Eq 1.90 Vanguard Intl Shares Index 2.25 Magellan Global Fund 3.90 Grnt Sml Epch Gbl Eq Sh Yld U 3.20 Antipodes Global Fund 5.00 Lazard Global Listed Infra 2.50 Property 2.80 Spire USA ROC III Fund (AUD) 1.30 Spire USA ROC Snrs Prop 1.50 Accordingly, the recommended minimum investment timeframe of this fund is 3 years. Performance Over the past 3 years, the Portfolio has returned 5.20% p.a. after fees, outperforming competitor funds by 0.98%. Over this period a $100,000 investment into the Portfolio would now be valued at $116,412. As a comparison, an investment in Cash would have returned 1.96% p.a. over the past 3 years. Over this period a $100,000 investment in Cash would now be valued at $105,981. Over the past year, the Portfolio has returned 5.35% to the end of May This is 0.35% ahead of the competitor funds over this period. Funds within the Portfolio that have performed well over this period include the Bennelong Ex-20 Australian Equities Fund (+23.75%), AMP Capital Diversified Infrastructure Trust (+18.81%) and Allan Gray Australian Equity Fund - Class B (+12.92%). Portfolio Management FMD Financial retains the services of external investment specialists Zenith Investment Partners, Caravel Consulting Services, Lonsec Research and Peak Investment Partners to assist with the construction of the AMS Funds. They provide professional and independent research and asset allocation advice to support the FMD Investment Committee (IC). The FMD IC meets regularly through the year to review FMD AMS funds in the light of global economic and financial market conditions. This allows the FMD IC to take advantage of opportunities and respond to threats as they arise, ensuring investor funds are always invested in FMD s preferred portfolio. Growth of $100,000 Invested (inception) VERY HIGH HIGH MODERATE LOW VERY LOW RISK PROFILE CPI PLUS OBJECTIVE 0-2% >2-3% >3-4% >4% Net Returns BENCHMARK GROWTH / DEFENSIVE ASSETS INVESTMENT TIMEFRAME 1-2 YRS 3-4 YRS 5-6 YRS 7+ YRS

2 Portfolio Configuration The current asset allocation framework is deliberately well balanced and promotes a diverse range of return drivers in order to meet return and risk targets of the portfolio. Under Zenith's classification system, as at the end of 31 Mar 2018 the portfolio is comprised of the following sectors and subsectors: Cash 9.50% (Exchange Traded Fund - ETF 9.50%) Fixed Interest 34.00% (split between Bonds 8.50%, Diversified 8.50% and Unconstrained 17.00%) Alternatives 12.55% (split between Global Macro/Absolute Return 3.65%, Managed Futures 3.65%, Market Neutral 3.75% and Other 1.50%) Australian Shares 18.75% (split between Exchange Traded Fund - ETF 1.75%, Large Companies 9.10%, Long Short 4.25% and Mid Cap Companies 3.65%) Fixed Interest 3.65% (High Income 3.65%) International Shares 18.75% (split between Emerging Markets 1.90%, Global (Unhedged) 9.35%, Global Long Short 5.00% and Listed Infrastructure 2.50%) and Property 2.80% (Direct 2.80%) The portfolio has exposure to 24 investments, with weightings ranging from 1.30% to 9.50% Page 2 of 5

3 Portfolio Holdings Cash 9.50 BetaShares Australian High Interest Cash ETF ASX:AAA The Fund is an Exchange Traded Fund which aims to provide regular and attractive income in excess of the 30 Day Bank Bill Swap Rate with a high level of capital security. To achieve its objective, the Fund invests in a selection of bank deposits, Notice Deposit Accounts and Term Deposits from major Australian banks. Zenith believes the Fund offers an intuitive and effective mechanism for investing in a diversified pool of bank deposits. Fixed Interest Janus Henderson Tactical Income Fund IOF0145AU The Fund is a uniquely structured fixed interest strategy that has been designed to provide investors with a turnkey solution to their domestic fixed interest needs. The Fund is managed by Janus Henderson Investors (JHI), who actively allocate across cash, government bonds and corporate debt. Zenith continues to view the Fund as a competitive and differentiated offering, believing it remains well positioned to deliver upon targeted outcomes. Furthermore, Zenith views favorably the 2017 widening of the Fund's mandate allowing small exposures to global higher yielding credit, which further diversifies return sources and increases capacity for the Fund. PIMCO Diversified Fixed Interest Fund Wholesale Class ETL0016AU The Fund provides investors with exposure to an actively managed and diversified portfolio comprising a mix of global and domestic fixed income securities. The Fund employs an inter-funding structure, investing 50% in the PIMCO Global Bond Fund and 50% in the PIMCO Australian Bond Fund. Notwithstanding the Fund's broadly static approach to asset allocation, Zenith believes there remain ample avenues through which the Fund can deliver upon targeted objectives. Furthermore, with a track record of outperformance over a range of investment terms, we continue to view the Fund as a preferred option for those investors seeking exposure within this market segment. Payden Global Income Opportunities Fund GSF0008AU The Fund is managed by US based manager, Payden & Rygel (Payden), and distributed domestically by Grant Samuel Funds Management (Grant Samuel). The Fund offers investors exposure to a globally diversified fixed income product that is managed to an absolute return objective. Zenith retains conviction in the Fund owing to our high regard for the investment management team, well structured process and emphasis on risk management. T. Rowe Price Dynamic Global Bond Fund ETL0398AU The Fund, managed by T. Rowe Price s (TRP) Global Fixed Income Group, aims to generate a consistent and stable income stream, whilst also capitalising on inefficiencies across global fixed interest markets in a risk controlled manner. The Fund employs a dynamic and flexible approach to portfolio management which focuses on adding value through interest rate and country positioning, with value also added through currency and sector/security selection. Despite recent poor performance, Zenith continues to view the Fund as an attractive investment proposition, our conviction underpinned by our high regard for the investment team and the dynamic investment process. Alternatives GMO Systematic Global Macro Trust - Class B GMO0006AU The Fund employs a highly quality global macro strategy that invests in global equity, currency, fixed income and commodity markets. While the Fund is hard closed to further investment, Zenith maintains a high regard for GMO's investment process, noting that it successfully combines a value anchor with sentiment-based analysis, to deliver sound risk-adjusted returns. Man AHL Alpha (AUD) MAN0002AU The Fund provides investors with access to a managed futures strategy managed by AHL, one of the pioneers of the industry. The Fund employs a fully systematic, research driven, quantitative process that exploits technical / price driven signals through investment in a broad range of futures and forwards markets and highly liquid OTC markets. Zenith holds AHL's research team in high regard given its experience and strong depth. Ellerston Australian Market Neutral Fund ECL0013AU The Fund managed by Ellerston Capital employs a statistical arbitrage market neutral strategy that incorporates special situation trades. Zenith considers the Fund's differentiated process and investment team to be a strength in providing an appealing exposure to an Australian equity market neutral strategy. AMP Capital Diversified Infrastructure Trust N/A Australian Shares BetaShares FTSE RAFI Australia 200 ETF ASX:QOZ Page 3 of 5

4 The Fund is an Exchange Traded Fund which offers an enhanced fundamental indexing approach to the Australian share market. The Fund seek to track the FTSE RAFI Australia 200 Index which is operated by FTSE, utilising a methodology created by US-based Research Affiliates (RA). Zenith believes the Fund is intuitively appealing, benefitting from the extensive research of RA. Fidelity Australian Equities Fund FID0008AU The Fund is managed by Fidelity International's (Fidelity) Sydney based Australian equities investment team, and provides investors with a growth biased exposure to the Australian equity market. In constructing the portfolio, Portfolio Manager Paul Taylor leverages the in-depth fundamental research conducted by Fidelity's extensive internal global research network. Zenith believes Taylor exhibits exceptional stock selection skills, which is evident in the Fund's consistent outperformance over its benchmark. The Fund is one of Zenith's preferred choices within the Australian Equities sector. Ironbark Karara Australian Share Fund PAT0001AU The Fund is managed by Karara Capital Limited (Karara) and distributed by Ironbark Asset Management Pty Ltd. The Fund provides investors with a style neutral exposure to the Australian equity market, combining an actively managed portfolio of large capitalisation companies with an allocation to Karara's small companies fund. Although Zenith believes the investment team have the required experience to manage the Fund, having consistently applied the investment process for over a decade, the Fund has performed disappointingly, failing to achieve its objectives since assuming management of the Fund in May Allan Gray Australian Equity Fund - Class B ETL0349AU The Fund is managed by Sydney based Allan Gray Australia. The Fund offers investors a benchmark unaware Australian equities exposure, which employs a contrarian investment approach that leverages off Allan Gray's high quality team. Zenith believes the team's broad skill sets, derived from both investment and non-investment backgrounds, gives rise to unique investment perspectives. L1 Capital Long Short Fund - Wholesale Class ETL4912AU The Fund is an Australian equity long/short offering managed by L1 Capital (L1) and distributed by Channel Capital (Channel). The strategy has a strong, albeit relatively short, track record dating back to September 2014, over which L1 has demonstrated material value add from short selling and market exposure adjustment. In addition, Zenith draws comfort from the impressive long-term track record L1 has built managing long-only strategies, which we expect to be the primary driver of the strategy's performance. Overall, Zenith has confidence in the ability of L1 to deliver on the Fund's investment objectives given the high calibre of its investment team and the attractiveness of the underlying investment philosophy and process. Bennelong Ex-20 Australian Equities Fund BFL0004AU The Fund is managed by Bennelong Australian Equity Partners. The Fund provides investors with an Australian shares portfolio that invests in companies sitting outside of the top 20 ASX listed stocks (i.e. mid capitalisation). Zenith believes the Fund is an appealing offering owing to its highly capable portfolio manager and demonstrated track record of outperformance. Fixed Interest 3.65 Bentham Global Income Fund CSA0038AU The Fund is managed by Bentham Asset Management (Bentham) and provides access to a diversified portfolio of higher yielding credit investments. Zenith believes the Fund successfully combines the skills and expertise of Bentham's Sydney based investment team, with the wider resources of the Credit Suisse Credit Investment Group (CIG), to dynamically construct a portfolio of attractive investment opportunities within a broad investable universe. International Shares Robeco Emerging Conservative Equity Fund (AUD) ETL0381AU The Fund offers investors a benchmark unaware exposure to emerging market equities that is expected to exhibit relatively lower risk, as measured by Standard Deviation, to the market while maintaining a similar level of returns. The team responsible for this Fund is Robeco's Quantitative Equities team. The team employs a quantitative approach to managing the Fund, utilising a number of comprehensive internal quantitative models. Zenith believes the Fund's systematic investment process to be highly robust. Vanguard International Shares Index Fund VAN0003AU The Fund offers a diversified and highly transparent index exposure to international equities. Zenith believes Vanguard's approach to indexing is a sensible and efficient method that keeps portfolio turnover, and therefore trading costs, to a minimum. Magellan Global Fund MGE0001AU The Fund is managed by Magellan Asset Management (Magellan), a Sydney-based fund manager. Magellan employs a concentrated, benchmark unaware approach to investing in international equities, with the preservation of capital being a key tenet of the investment process. Having met with the team and reviewed the process on multiple occasions, Zenith believes that the Fund is one of the higher quality offerings in the sector. Page 4 of 5

5 Grant Samuel Epoch Global Equity Shareholder Yield (Unhedged) Fund GSF0002AU The Fund is distributed in Australia by Grant Samuel Funds Management (Grant Samuel) and managed by Epoch Investment Partners Inc. (Epoch). The Fund provides access to a portfolio of companies that generate attractive and sustainable cashflow and dividends. Zenith believes that the strong investment process and highly capable investment team will enable a smooth transition of portfolio managers for the Fund. Zenith maintains confidence that the Fund remains positioned to achieve its investment objectives over a full market cycle. Antipodes Global Fund IOF0045AU The Fund provides investors with a concentrated, absolute return focused, long/short exposure to global equities. Antipodes Partners (Antipodes) has the flexibility to actively manage the cash level and currency exposures within the Fund. Zenith holds lead portfolio manager Jacob Mitchell in high regard, as well as the broader investment team. As a result, the Fund is one of Zenith's preferred choices within the Global Equities Long/Short sector. Lazard Global Listed Infrastructure Fund LAZ0014AU The Fund, managed by Lazard Asset Management (Lazard), offers investors an exposure to a high-conviction, benchmark unaware portfolio of globally listed infrastructure securities. Zenith's holds a favourable view regarding the stability and calibre of the Fund's portfolio management team, transparent investment process and consistent track record of performance. Property 2.80 Spire USA ROC III Fund (AUD) ETL0460AU The Fund offers Australian investors access to a private equity real estate fund domiciled in the U.S. The strategy pursues value-add opportunities in select multifamily and commercial office assets located across the U.S. The management team is highly experienced with an impressive record in similar strategies. Zenith has developed a high conviction in the team s abilities over several years and views the Fund as a relatively unique opportunity for Australian investors to access a high quality investment. Spire USA ROC Seniors Housing and Medical Properties Fund II (AUD) ETL1507AU The Fund offers Australian investors exposure to a U.S. private real estate strategy which seeks to generate returns through income and longterm capital appreciation. The Fund focuses on the U.S. retirement sector and will have a fixed investment term of up to 10 years with nil liquidity. Management have demonstrated significant depth of skill in this niche sector and Zenith believes that the Fund offers diversification advantages to traditional property exposures. Zenith Investment Partners (ABN , AFS Licence ) is the provider of General Advice (s766b Corporations Act 2001). To the extent that any information in this document constitutes advice, it is General Advice for Wholesale clients only. This document has been prepared by Zenith exclusively for Zenith clients without taking into account the objectives, financial situation or needs of any specific person who may read it. It is not a specific recommendation to purchase, sell or hold any relevant product(s) and is subject to change at any time without prior notice. Zenith advises that investors should seek their own independent financial advice before making any investment decision and should consider the appropriateness of the information contained in this document in light of their own objectives, financial situation or needs. Investors should obtain a copy of, and consider, any relevant product PDS or offer document before making any decision. The material contained in this document is subject to copyright and may not be reproduced without the consent of the copyright owner. The information contained in this document has been prepared in good faith and is believed to be reliable, but its completeness and accuracy is not guaranteed. Zenith accepts no liability, whether direct or indirect arising from the use of information contained in this document. Past performance is not an indication of future performance.full details regarding the methodology, ratings definitions and regulatory compliance are available at Page 5 of 5