Listed Investment Companies

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1 RESEARCH PORTFOLIO STRATEGY & RESEARCH GROUP SEPTEMBER 30, 2014 Listed Investment Companies AUSTRALIA EWA TUREK Morgan Stanley Wealth Management Research MALCOLM WOOD Morgan Stanley Wealth Management Research SZE CHUAH Morgan Stanley Wealth Management Research In Vogue: Listed Investments Meeting Investor Demand for Listed Investments: Year to date, six new funds have listed on the ASX, taking the total number of exchange listed investment companies (LICs) to 60 and the market capitalisation of the space to ~$25.7 billion. The LIC market is set to continue to grow with the IPO pipeline showing no signs of slowing. Absolute Return Equity Strategies: With continued growth in the LIC space we add two new funds to our coverage, both of which offer investors an alternative to traditional long-only Australian equity exposure. Watermark Funds Management: We initiate coverage on the Watermark Market Neutral Fund (WMK), a market neutral domestic equities fund, with a Neutral weighting; and the Australian Leaders Fund (ALF), a variable beta fund, with an Underweight weighting. These weightings are driven by the MSWM LIC Quantitative Model. MSWM Recommended List: We add CDM and MLT to our recommended domestic equity exposure and, following strong performance, remove PMC from our core international equity exposure. Figure 1: MSWM LIC Quantitative Model Source: MSWM Research This report is for distribution only to Australian resident clients of Morgan Stanley. Morgan Stanley Wealth Management does and seeks to do business with companies covered in Morgan Stanley Wealth Management Research. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of Morgan Stanley Wealth Management Research. Investors should consider Morgan Stanley Wealth Management Research as only a single factor in making their investment decision.

2 In Vogue: Listed Investments Listing on the ASX is gaining popularity as fund managers respond to growing investor demand for easily accessible investments. Year to date, six new funds have listed on the ASX, taking the total number of exchange listed investment companies (LICs) to 60 and the market capitalisation of the space to ~$25.7 billion (Figure 2). The LIC market is set to grow with the IPO pipeline showing no signs of slowing. This is good news for investors. For a start, half the funds to list this year have been in an asset class other than the crowded Australian shares category, (Figure 3) and domestic focused listings all have mandates outside the S&P/ASX 20. As a result, these listings offer investors new opportunities to add diversification to their portfolios (e.g. Blue Sky Alternatives Access Fund (BAF) invests in a portfolio of alternative assets and PM Capital Asian Opportunities Fund (PAF) provides investors access to Asian equity markets). With the continued growth in the LIC space we add two new funds to our coverage, both of which offer investors an alternative to traditional long-only Australian equity exposure. Figure 2: The Market Capitalisation of LICs has Grown to $25.7 billion Absolute Return Equity Strategies A market neutral strategy aims to generate investment returns that are independent of the market environment - this type of fund looks to deliver consistent returns over diverse market cycles. In order to cancel out the impact of market fluctuations the portfolio will have an allocation to both long and short equity positions (resulting in a market neutral portfolio). In aggregate, the dollar value of long positions tends to be roughly equal to the dollar value of short positions. When markets fall, the shorts will provide a hedge against losses in the long positions in the Portfolio. A long/short strategy is another type of absolute return strategy. The key difference between a market neutral and long/short strategy is that in a long/short strategy the manager will tend to take active views on the market resulting in an unequal allocation between long and short positions. Watermark Market Neutral Fund Limited (WMK) The Watermark Market Neutral Fund was listed on the ASX in July WMK is an active, market neutral domestic equities Fund with an average net exposure of no more than 10%. The investment mandate is to profit from the mispricing of domestic equities while limiting downside risk through the use of long/short hedging strategies. Although the Company mainly invests in ASX listed Securities, the Fund also has the ability to invest offshore. The Fund scores well on value in our quantitative model. However, due to underperformance relative to its benchmark over the past 12 months its performance score was low. We initiate coverage with a Neutral weighting. Australian Leaders Fund (ALF) Source: ASX, Morningstar. Data as at 31 August Figure 3: The Asset Class Spread of LICs is Gradually Becoming more Diversified ALF is a variable beta fund that can adjust its net exposure to reflect the Manager s outlook on markets. When the market is cheap the Fund may be fully invested with a net exposure of 100%, while when market conditions are viewed as unfavourable net exposure can be negative. The Fund has an investment objective of 5% outperformance above the ASX All Ordinaries index over the medium term. While long term returns have been solid, the Fund has struggled to add alpha over recent timeframes. The combination of underperformance and high NTA volatility has contributed to a weak performance score. Moreover, the Fund is also trading at a significant premium to NTA. We initiate coverage with an Underweight weighting. MSWM Recommended List Source: ASX, Morningstar. Data as at 31 August International Equity Exposure: In our June 2014 piece, The Case for International LICs, we put forward three arguments in favour of international LICs. Since then our recommended international equity LICs have significantly outperformed their Please refer to important information, disclosures and qualifications at the end of this material. 2

3 domestic equity counterparts (Figure 4). Following this strong run we make the following recommendations: Platinum Capital (PMC) Having made strong gains PMC is now trading at a large ~7.3% premium to NTA. As a result we take profits and remove the Fund from our recommended list. Templeton Global Growth (TGG) Despite slipping into the Quality quadrant of our model, we continue to recommend TGG for international LIC exposure. Given its unhedged nature we expect the Fund to benefit from a weakening AUD. Our core domestic and international equity exposures are summarised in Figure 5 below. Figure 4: Total Return of MSWM Recommended List LIC Last Price Qtr Rolling Recommended Period* Core International Equity PMC $ % 14.5% HHV $ % 13.2% TGG $ % 6.4% Core Australian Equity CIN $ % 5.6% ARG $ % 3.7% * Refers to the period from 5 June - 25 Sept 2014 Source: MSWM Research, IRESS. Data as at 25 September Australian Equity Exposure: Collectively, domestic LICs continue to trade at a premium to NTA. Given the general lack of value in the domestic market, we prefer those Funds which rank attractively within our quantitative model and trade at a relatively smaller premium to NTA. We add the following funds to our recommended list: Cadence Capital (CDM) CDM invests in both long and short positions (with a long bias) and aims to deliver solid risk adjusted returns through different cycles. Despite trading at a small premium to NTA the Fund screens attractively in our model. Milton Corporation (MLT) MLT is a long only active fund that invests predominantly in Australian equities. Given a high allocation to banks, the fund is well positioned for a rebound in this sector. Figure 5: MSWM Recommended List Core Australian Equity Price 1 Year NTA Outperformance Beta-Implied Discount 5 Year Information Ratio ARG $ % -2.0% 0.01 CIN $ % 9.0% 0.65 CDM $ % -0.7% 0.97 MLT $ % -0.9% 0.32 Core International Equity Price MSWM Recommended List 1 Year NTA Outperformance Beta-Implied Discount 5 Year Information Ratio TGG $ % 7.1% HHV $ % 14.6% Source: MSWM Research, IRESS. Prices as at 25 September 2014; performance ratios use data to 31August Please refer to important information, disclosures and qualifications at the end of this material. 3

4 Sector Charts Figure 6: Management Fees Listed Investment Company ASX Code Management Fees (% p.a.) Performance Fee Discount to NTA AMP Capital China Growth Fund AGF 1.65% 20% of returns above CITIC % Hunter Hall Value HHV 1.50% 15% of returns above bm 11.4% Carlton Investments CIN 0.12% none 8.6% Cadence Capital CDM 1.00% 20% > Min(ASX All Ord, 0% ) 6.5% Westoz Investments WIC 1.00% 20% of returns > 10% in 12 mo period 6.1% Templeton Global Growth TGG 1.00% none 2.7% Magellan Flagship Fund MFF 1.25% 10% of returns above bm if >10Yr 1.7% BKI Investment Company BKI 0.18% none -0.3% Diversified United Investment DUI 0.17% none -1.3% Asian Masters Fund AUF 1.00% none -1.9% Australian Foundation Investment AFI 0.19% none -2.3% Milton Corporation MLT 0.16% none -2.7% Watermark Market Neutral Fund WMK 1.00% 20% of returns above RBA Cash Rate -4.0% Argo Investments ARG 0.18% none -4.2% Australian United Investment AUI 0.13% none -4.3% WAM Research WAX 1.00% 20% of returns > ASX All Ordinaries -5.6% Platinum Capital PMC 1.50% 10% above (benchmark + 5% ) -9.2% WAM Capital WAM 1.00% 20% of returns > above All Ords -10.1% Mirrabooka Investments MIR 0.79% none -18.1% Australian Leaders Fund ALF 1.00% 20% of returns above ASX All Ords -22.7% Djerriwarrh Investments DJW 0.41% none -23.9% WAM Active WAA 1.00% 20% of returns > highest Pf value -34.1% Source: Morgan Stanley Wealth Management Research, IRESS, ASX. Discounts to NTA as at 31 August Figure 8: Unrealised Tax Liabilities Source: MSWM Research, IRESS, ASX. Discounts to NTA as of 30 Aug Figure 9: Long Term Risk-Adjusted Management Performance and Discounts Chart Figure 7: Long Term Risk-Adjusted Management Performance and Discounts Table to 31 August 2014 ASX Code Excess NTA Performance (10 Yr p.a.) Excess Franking (10 Yr p.a.) Tracking Error (10 Yr p.a.) Risk Adjusted Sum Discount to NTA AGF -1.1% 0.0% 8.5% % HHV 0.9% 1.3% 13.7% % CIN 2.7% 0.5% 8.0% % CDM 11.0% 1.5% 11.4% % WIC 4.7% 1.3% 7.5% % TGG 0.0% 1.0% 6.5% % MFF 6.9% 0.0% 9.0% % BKI 0.3% 2.8% 5.2% % DUI 1.7% 0.5% 4.6% % AUF -3.6% 0.3% 5.0% % AFI 0.7% 0.4% 2.4% % MLT 0.1% 0.5% 4.3% % WMK -2.1% 1.0% 6.6% % ARG 0.0% 0.4% 6.6% % AUI 0.7% 0.2% 3.7% % WAX -2.9% 1.2% 8.2% % PMC 2.5% 2.6% 10.2% % WAM 0.9% 1.3% 10.6% % ALF 3.1% 2.1% 17.9% % MIR 5.4% 2.2% 7.3% % DJW -1.0% 1.2% 3.4% % WAA -3.9% 1.7% 9.4% % Source: Morgan Stanley Wealth Management Research, IRESS, ASX. Discounts to NTA as at 31 August Note: if less than 10 year data available, lesser amount used. Source: MSWM Research, IRESS, ASX. Discounts to NTA as at 30 Aug Figure 10: Present Value of Fees Source: MSWM Research, IRESS, ASX. Discounts to NTA as at 31 August Value of Fees assumes fees as an annuity into perpetuity. Please refer to important information, disclosures and qualifications at the end of this material. 4

5 Model Rankings Performance Ranking - Domestic Recent Management Performance NTA LIC 1 Year Excess Return Rank 3 Year Franking Excess Rank 5 Year Information Ratio Rank 5 Year Vol Rank 5 Year Skew Rank AFI 0.3% 5 0.4% % ARG 0.4% 3 0.6% % ALF -11.2% % % AUI -0.8% 8 0.2% % BKI -4.3% % % CIN 5.1% 1 0.6% % DJW -1.3% 9 1.3% % DUI -0.2% 6 0.3% % MIR 3.1% 2 1.7% % M LT -0.4% 7 0.7% % WAM -4.6% % % WIC -2.6% % % CDM 0.3% 4 2.1% % WAA -9.3% % % WMK -2.1% % % WAX -3.9% % % Source: Morgan Stanley Wealth Management Research, Data as of 31 August If less than 5 years of data available 3 year or 1 year metrics used. Performance Ranking International Recent Management Performance NTA LIC 1 Year Excess Return Rank 3 Year Franking Excess Rank 5 Year Information Ratio Rank 5 Year Vol Rank 5 Year Skew Rank AGF -7.1% 5 0.0% % AUF -11.5% 6 0.0% % HHV 3.4% 1 0.4% % MFF -3.0% 2 0.0% % PMC -3.2% 3 1.3% % TGG -3.3% 4 1.0% % Source: Morgan Stanley Wealth Management Research. Data as of 31 August If less than 5 years of data available 3 year or 1 year metrics used. Value Ranking - Domestic Franking Benefit Franking Benefit Long-term Risk-Adjusted Performance - NTA Long-term Risk-Adjusted Performance - NTA Absolute Volatility - NTA Absolute Volatility - NTA Relative Discount Month End Current Discount to Beta Implied Discount Volatility RSI Worst Case Scenario Discount LIC Discount vs Historical 1 Rank Current Discount 2 Rank Volatility Rank Technical Rank Residual Discount Rank AFI -2.3% 1-2.1% % % 10 ARG -2.5% 2-2.0% 9 6.9% % 7 ALF -34.1% % % % 13 AUI -9.4% 8 2.6% 5 5.1% % 12 BKI -9.3% 7 3.0% 4 4.6% % 4 CIN -3.4% 3 9.0% 2 8.7% % 3 DJW -14.3% % % % 14 DUI -7.2% 6 4.3% 3 6.1% % 8 MIR -20.4% % % % 15 M LT -4.6% 5-0.9% 7 5.0% % 9 WAM -16.2% % % % 11 WIC -18.4% % 1 9.9% % 2 CDM -21.7% % % % 1 WAA -39.2% % % % 16 WMK -4.0% 4-1.1% 8 2.6% % 6 WAX -20.2% % % % 5 Source: Morgan Stanley Wealth Management Research, Data as of 31 August If less than 5 years of data available 3 year or 1 year metrics used. 1. Discount vs. historical refers to the discount the LIC is trading at relative to its historical discount. 2. Current discount refers to the current price relative to the beta implied value of the LIC. Skew Skew Please refer to important information, disclosures and qualifications at the end of this material. 5

6 Value Ranking International Relative Discount Month End Current Discount to Beta Implied Discount Volatility RSI Worst Case Scenario Discount LIC Discount vs Historical 1 Rank Current Discount 2 Rank Volatility Rank Technical Rank Residual Discount Rank AGF -2.0% % 2 8.5% % 1 AUF 1.6% 2-2.1% 5 4.0% % 5 HHV -5.8% % 1 5.9% % 2 MFF -9.3% 6 2.9% % % 4 PMC 3.8% 1-7.3% % % 6 TGG -0.9% 3 7.1% % % 3 Source: Morgan Stanley Wealth Management, Data as of 31 August If less than 5 years of data available 3 year or 1 year metrics used. 1. Discount vs. historical refers to the discount the LIC is trading at relative to its historical discount. 2. Current discount refers to the current price relative to the beta implied value of the LIC. Please refer to important information, disclosures and qualifications at the end of this material. 6

7 Market Snapshot Current Price, as of 25/09/14 $ 6.01 August End: Pre-Tax NTA $ 5.99 August End: Post-Tax NTA $ 5.02 Beta-Implied NTA Estimate $ 5.88 Current Premium to NTA Estimate 2.2% Trailing 12 Month Dividend Yield 3.6% Last 12 Month Capital Gain 4.2% Beta (3 Year Rolling) to ASX Market Capitalisation (A$bn) Month Rolling Volume Traded (mn) Month Rolling Value Traded (A$mn) 53.4 MSWM Quant Rating: Overweight Australian Foundation Investment Company (AFI) Key Information Universe: Australian Equities MER: 0.19% Style: Value, Long-Only, Options Included Performance Fees: None Manager: Internal Benchmark: S&P/ASX 200 Acc. Index Listed Date: 1 January 1936 Balance Date: 30 June AFI is the largest Listed Investment Company in Australia and boasts a history dating back to Like many other traditional LICs, it uses a value-based investment strategy that focuses on buying and holding high-quality high-yielding stocks that appear to be oversold. The company was initially incorporated as The Were Investment Trust. AFI utilises option strategies within its trading portfolio. Performance Analysis: as at 31 August 2014 Security Total Return 3 Month 1 Year 3 Yr p.a. 5 Yr p.a. 10 Yr p.a Net Performance 4.0% 11.6% 17.9% 9.1% 10.9% ASX 200 Net Accum. 3.5% 14.4% 14.5% 9.3% 9.4% Excess Return 0.5% -2.8% 3.4% -0.2% 1.5% Gross Performance 5.0% 13.3% 20.0% 11.1% 12.8% ASX 200 Gross Accum. 3.8% 15.9% 16.0% 10.8% 10.9% Excess Return 1.2% -2.6% 3.9% 0.3% 1.9% Performance: Robust AFI continues to deliver strong risk-adjusted returns over the long term, with a recent improvement in short term numbers resulting in a better performance score. Value: Good AFI is trading at a premium to NTA, however, it scores attractively on this measure relative to domestic peers. Holdings at a Glance AUSTRALIAN FOUNDATION INVESTMENT COMPA AFI Top Holdings as at 31 August 2014 (excl cash) % of Portfolio 1 Commonwealth Bank 10.5% 2 Westpac Banking Corp. 10.1% 3 BHP Billiton 8.9% 4 National Australia Bank 5.3% 5 Wesfarmers 5.1% 6 ANZ Banking 4.6% 7 Telstra Corp. 4.5% 8 Woolworths 3.7% 9 Rio Tinto 3.6% 10 Oil Search 2.4% Source: IRESS, Company Reports NTA Performance 3 Month 1 Year 3 Yr p.a. 5 Yr p.a. 10 Yr p.a Performance 3.2% 14.7% 15.6% 10.3% 10.1% ASX 200 Net Accum. 3.5% 14.4% 14.5% 9.3% 9.4% Excess Return -0.3% 0.3% 1.2% 1.0% 0.7% Franking Analysis 3 Month 1 Year 3 Yr p.a. 5 Yr p.a. 10 Yr p.a Franking Return 1.0% 1.5% 1.7% 1.8% 1.8% Benchmark Franking 0.3% 1.3% 1.4% 1.4% 1.4% Franking Excess 0.7% 0.2% 0.4% 0.5% 0.4% Share Price and NTA Please refer to important information, disclosures and qualifications at the end of this material. 7

8 Share Price Relative to Benchmark Risk Analysis & Risk Adjusted Return Risk - Security 1 Year 3 Year 5 Year 10 Year Volatility 6.5% 12.6% 11.6% 14.2% Benchmark Volatility 8.5% 11.7% 12.0% 13.7% Beta to ASX Beta to Resources Beta to Industrials Risk - Underlying 1 Year 3 Year 5 Year 10 Year NTA Volatility 8.1% 11.4% 11.7% 12.8% Tracking Error 1.2% 1.4% 1.5% 2.4% Skewness of Excess Downside Volatility 4.0% 6.8% 7.0% 9.0% Source: Factset, Bloomberg, Company Reports Risk Adjusted Return 1 Year 3 Year 5 Year 10 Year Information Ratio Sharpe Ratio Sortino Ratio Please refer to important information, disclosures and qualifications at the end of this material. 8

9 Market Snapshot Current Price, as of 25/09/14 $ 0.80 August End: Pre-Tax NTA $ 0.90 August End: Post-Tax NTA $ 0.90 Beta-Implied NTA Estimate $ 0.92 Current Discount to NTA Estimate 13.8% Trailing 12 Month Dividend Yield 2.3% Last 12 Month Capital Gain 0.0% Beta (3 Year Rolling) to ASX Market Capitalisation (A$bn) Month Rolling Volume Traded (mn) Month Rolling Value Traded (A$mn) 10.5 MSWM Quant Rating: Neutral AMP Capital China Growth Fund (AGF) Key Information Universe: Chinese Equities MER: 1.65% Style: Growth, Unhedged Performance Fees: 20% above index Manager: AMP Capital Investors Benchmark: S&P/CITIC300 Index (AUD) Listed Date: 22 December 2006 Balance Date: 31 December AGF is the only investment vehicle listed in Australia that provides direct exposure to Chinese A-Shares listed on the Shanghai or Shenzhen bourses. This is because foreign investment in Chinese A-shares is limited to institutional investors with a QFII licence. The fund is well diversified across multiple sectors and aims to provide long-term capital growth. The investments are unhedged. Performance Analysis: As at 31 August 2014 Security Total Return 3 Month 1 Year 3 Yr p.a. 5 Yr p.a. 10 Yr p.a Net Performance 8.8% 1.0% 5.7% -3.9% CITIC 300 Net (AUD) 12.3% -0.2% 2.6% -1.0% Excess Return -3.5% 1.2% 3.1% -2.9% Gross Performance 8.8% 1.0% 5.7% -3.9% CITIC 300 Gross (AUD) 12.3% -0.2% 2.6% -1.0% Excess Return -3.5% 1.2% 3.1% -2.9% NTA Performance 3 Month 1 Year 3 Yr p.a. 5 Yr p.a. 10 Yr p.a Performance 8.4% -7.4% 1.3% -2.1% CITIC 300 Net (AUD) 12.3% -0.2% 2.6% -1.0% Excess Return -3.9% -7.1% -1.3% -1.1% Performance: Poor NTA performance has continued to disappoint. Volatility remains high and excess returns are now negative over all timeframes. Value: Neutral AGF continues to trade at a large discount to NTA. It should be noted, however, this discount has been relatively stable over the life of the Fund. Franking Analysis 3 Month 1 Year 3 Yr p.a. 5 Yr p.a. 10 Yr p.a Franking Benefit 0.0% 0.0% 0.0% 0.0% Bm Franking Return 0.0% 0.0% 0.0% 0.0% Franking Excess 0.0% 0.0% 0.0% 0.0% Share Price and NTA Holdings at a Glance AMP CAPITAL CHINA GROWTH FUND AGF Top Holdings as at 31 August 2014 (excl cash) % of Portfolio 1 Ping An Insurance 5.1% 2 China Vanke 4.6% 3 CITIC Securities 4.1% 4 China Merchants Bank 3.7% 5 Shanghai Pudong Development Bank 3.6% 6 China Minsheng Banking Corp 3.5% 7 Industrial Bank Co 3.4% 8 Kweichow Moutai 3.3% 9 Haitong Securities 2.6% 10 Gree Electric Appliances 2.5% Source: IRESS, Company Reports Please refer to important information, disclosures and qualifications at the end of this material. 9

10 Share Price Relative to Benchmark Risk Analysis & Risk Adjusted Return Risk - Security 1 Year 3 Year 5 Year 10 Year Volatility 25.5% 25.3% 24.0% Benchmark Volatility 17.0% 22.1% 20.7% Beta to MSCI AxJ AUD Beta to ASX Resources Beta to CITIC Risk - Underlying 1 Year 3 Year 5 Year 10 Year NTA Volatility 17.9% 22.5% 23.8% Tracking Error 7.1% 5.7% 8.5% Skewness of Excess Downside Volatility 13.0% 12.4% 15.3% Source: Factset, Bloomberg Risk Adjusted Return 1 Year 3 Year 5 Year 10 Year Information Ratio Sharpe Ratio Sortino Ratio Please refer to important information, disclosures and qualifications at the end of this material. 10

11 Market Snapshot Current Price, as of 25/09/14 $ 1.60 August End: Pre-Tax NTA $ 1.41 August End: Post-Tax NTA $ 1.40 Beta-Implied NTA Estimate $ 1.39 Current Premium to NTA Estimate 15.1% Trailing 12 Month Dividend Yield 7.3% Last 12 Month Capital Gain -7.5% Beta (3 Year Rolling) to ASX Market Capitalisation (A$bn) Month Rolling Volume Traded (mn) Month Rolling Value Traded (A$mn) 19.7 MSWM Quant Rating: Underweight Australian Leaders Fund (ALF) Key Information Universe: Australian Equities MER: 1.00% Style: Long/Short Equity -Variable Beta Performance Fees: 20% > All Ordinaries Manager: Watermark Funds Management Benchmark: ASX All Ordinaries Listed Date: 10 February 2004 Balance Date: 30 June ALF is a variable beta fund that can adjust its net exposure to reflect the Manager s outlook on markets. When the market is cheap the Fund may be fully invested with a net exposure of 100%, while when market conditions are viewed as unfavourable net exposure can be negative. The Fund has an investment objective of 5% outperformance above the ASX All Ordinaries index over the medium term. Performance: As at 31 August 2014 Security Total Return 3 Month 1 Year 3 Yr p.a. 5 Yr p.a. 10 Yr p.a Net Performance 1.8% 13.2% 26.4% 19.7% 16.9% ASX All Ordinaries 3.8% 14.4% 13.6% 9.1% 9.2% Excess Return -2.0% -1.3% 12.8% 10.6% 7.7% Gross Performance 1.8% 16.5% 30.9% 23.9% 20.6% ASX All Ordinaries 4.1% 16.0% 15.1% 10.5% 10.6% Excess Return -2.3% 0.6% 15.8% 13.3% 10.0% Performance: Poor Long term performance has been solid, but the Fund has struggled to add alpha over the short and medium term. Despite an attractive dividend yield high NTA volatility make this a higher risk security. Value: Poor Value is poor with the LIC trading at a large premium to NTA, particularly relative to its history. Portfolio Structure AUSTRALIAN LEADERS FUND ALF Gross Portfolio Structure (%) 31-Jul Aug-14 Long Exposure Short Exposure Net Exposure Cash Capital Source: IRESS, Company Reports NTA Performance 3 Month 1 Year 3 Yr p.a. 5 Yr p.a. 10 Yr p.a Performance -6.6% 3.2% 12.3% 11.7% 12.3% ASX All Ordinaries 3.8% 14.4% 13.6% 9.1% 9.2% Excess Return -10.4% -11.2% -1.3% 2.6% 3.1% Franking Analysis 3 Month 1 Year 3 Yr p.a. 5 Yr p.a. 10 Yr p.a Franking Benefit 0.0% 3.0% 3.6% 3.5% 3.2% Bm Franking Return 0.3% 1.3% 1.3% 1.3% 1.3% Franking Excess -0.3% 1.9% 2.7% 2.5% 2.1% Share Price and NTA Please refer to important information, disclosures and qualifications at the end of this material. 11

12 Share Price Relative to Benchmark Risk Analysis & Risk-Adjusted Return 1 Year 3 Year 5 Year 10 Year Volatility 8.1% 12.3% 13.8% 17.4% Benchmark Volatility 8.3% 11.7% 11.9% 14.0% Beta to ASX Beta to Resources Beta to Industrials Risk - Underlying 1 Year 3 Year 5 Year 10 Year NTA Volatility 11.0% 12.1% 14.8% 15.2% Tracking Error 14.7% 14.3% 17.4% 17.9% Skewness of Excess Downside Volatility 5.5% 9.5% 9.1% 11.2% Source: Factset, Bloomberg Risk Adjusted Return 1 Year 3 Year 5 Year 10 Year Information Ratio Sharpe Ratio Sortino Ratio Please refer to important information, disclosures and qualifications at the end of this material. 12

13 Market Snapshot Current Price, as of 25/09/14 $ 7.62 August End: Pre-Tax NTA $ 7.58 August End: Post-Tax NTA $ 6.61 Beta-Implied NTA Estimate $ 7.47 Current Premium to NTA Estimate 2.0% Trailing 12 Month Dividend Yield 3.7% Last 12 Month Capital Gain 9.5% Beta (3 Year Rolling) to ASX Market Capitalisation (A$bn) Month Rolling Volume Traded (mn) Month Rolling Value Traded (A$mn) 39.1 MSWM Quant Rating: Overweight Argo Investments (ARG) Key Information Universe: Australian Equities MER: 0.18% Style: Core, Long Only, Active Performance Fees: None Manager: Internal Benchmark: S&P/ASX AllOrd Acc. Index Listed Date: 1 January 1947 Balance Date: 30 June ARG is Australia s second largest investment company. It focuses on investing in high quality companies in order to achieve a balance between price appreciation and dividend growth. The company takes a very long-term view on stocks and decisions are strongly based upon fundamental research. Quality of management is a particularly important criterion when deciding to purchase a particular stock. Performance Analysis: As at 31 August 2014 Security Total Return 3 Month 1 Year 3 Yr p.a. 5 Yr p.a. 10 Yr p.a Net Performance 9.3% 19.3% 19.4% 8.7% 9.7% ASX All Net Accum. 3.8% 14.4% 13.6% 9.1% 9.2% Excess Return 5.6% 4.8% 5.7% -0.4% 0.5% Gross Performance 10.2% 21.1% 21.5% 10.7% 11.5% ASX All Gross Accum. 4.1% 16.0% 15.1% 10.5% 10.6% Excess Return 6.1% 5.1% 6.4% 0.1% 0.9% Performance: Good Returns remain steady with a positive skew over all timeframes. Value: Good ARG is trading at a minor premium to NTA but value is reasonable relative to peers and the LICs history. Fees are also very attractive for this Fund. Holdings at a Glance ARGO INVESTMENTS ARG Top Holdings as at 31 August 2014 (excl cash) % of Portfolio 1 Westpac Banking Corp. 7.0% 2 ANZ Banking 6.1% 3 BHP Billiton 5.7% 4 Wesfarmers 4.6% 5 Telstra Corp. 4.6% 6 Commonwealth Bank 4.5% 7 National Australia Bank 3.8% 8 Milton Corporation 3.3% 9 Rio Tinto 3.0% 10 Aus. United Investment Co 3.0% Source: IRESS, Company Reports NTA Performance 3 Month 1 Year 3 Yr p.a. 5 Yr p.a. 10 Yr p.a Performance 3.6% 14.9% 15.4% 9.2% 9.2% ASX All Net Accum. 3.8% 14.4% 13.6% 9.1% 9.2% Excess Return -0.2% 0.4% 1.8% 0.0% 0.0% Franking Analysis 3 Month 1 Year 3 Yr p.a. 5 Yr p.a. 10 Yr p.a Franking Benefit 0.8% 1.6% 1.8% 1.8% 1.7% Bm Franking Return 0.3% 1.3% 1.3% 1.3% 1.3% Franking Excess 0.5% 0.3% 0.6% 0.5% 0.4% Share Price and NTA Please refer to important information, disclosures and qualifications at the end of this material. 13

14 Share Price Relative to Benchmark Risk Analysis & Risk Adjusted Return Risk - Security 1 Year 3 Year 5 Year 10 Year Volatility 5.9% 11.0% 10.9% 12.9% Benchmark Volatility 8.3% 11.7% 11.9% 14.0% Beta to ASX Beta to Resources Beta to Industrials Risk - Underlying 1 Year 3 Year 5 Year 10 Year NTA Volatility 21.7% 15.6% 14.1% 14.5% Tracking Error 19.0% 10.8% 8.4% 6.6% Skewness of Excess Downside Volatility 21.9% 11.9% 9.6% 10.1% Source: Factset, Bloomberg Risk Adjusted Return 1 Year 3 Year 5 Year 10 Year Information Ratio Sharpe Ratio Sortino Ratio Please refer to important information, disclosures and qualifications at the end of this material. 14

15 Market Snapshot Current Price, as of 25/09/14 $ 1.08 August End: Pre-Tax NTA $ 1.04 August End: Post-Tax NTA $ 0.99 Beta-Implied NTA Estimate $ 1.06 Current Premium to NTA Estimate 2.1% Trailing 12 Month Dividend Yield 2.8% Last 12 Month Capital Gain -0.9% Beta (3 Year Rolling) to ASX Market Capitalisation (A$bn) Month Rolling Volume Traded (mn) Month Rolling Value Traded (A$mn) 0.8 MSWM Quant Rating: Neutral Asian Masters Fund (AUF) Key Information Universe: Asian Equities MER: 1.00% Style: Funds of Funds, Long Only, Unhedged Performance Fees: 15% over 10% p.a. Manager: Orient Pacific Partners Benchmark: MSCI Asia ex Japan AUD Listed Date: 4 December 2007 Balance Date: 30 June The Asian Masters Fund is a listed investment company that invests in other managed funds specialising in Asian Equities. It is in essence a fund of funds. The investment manager is responsible for choosing the right fund manager and determining allocation. The fund does not actively manage currency risk or enter into any hedging contracts. Performance: As at 31 August 2014 Security Total Return 3 Month 1 Year 3 Yr p.a. 5 Yr p.a. 10 Yr p.a Net Performance 4.9% 2.8% 8.1% 3.1% MSCI Asia ex Japan AUD 6.4% 15.4% 12.9% 7.7% Excess Return -1.5% -12.6% -4.8% -4.6% Gross Performance 4.9% 2.8% 8.1% 3.4% MSCI Asia ex Japan AUD 6.5% 15.7% 13.2% 8.0% Excess Return -1.6% -12.9% -5.1% -4.6% NTA Performance 3 Month 1 Year 3 Yr p.a. 5 Yr p.a. 10 Yr p.a Performance 4.0% 3.9% 8.5% 4.1% MSCI Asia ex Japan AUD 6.4% 15.4% 12.9% 7.7% Excess Return -2.4% -11.5% -4.4% -3.6% Performance: Poor Performance has been poor - AUF continues to underperform the MSCI Asia ex Japan AUD Index. Value: Neutral AUF is trading at a minor premium to NTA; however it rates favourably on value relative to international peers. Franking Analysis 3 Month 1 Year 3 Yr p.a. 5 Yr p.a. 10 Yr p.a Franking Benefit 0.0% 0.0% 0.0% 0.3% Bm Franking Return 0.0% 0.0% 0.0% 0.0% Franking Excess 0.0% 0.0% 0.0% 0.3% Share Price and NTA Holdings at a Glance ASIAN MASTERS FUND AUF Top Holdings as at 31 December 2013 (excl cash) % of Portfolio 1 Arisaig Asian Consumer Fund 20.3% 2 APS China A Share Fund 14.7% 3 Prusik Asia Fund 11.0% 4 JPM China Pioneer A Shares Fund 10.9% 5 Prusik Asian Smaller Co. Fund 10.1% 6 Aberdeen Asian Opportunities Fund 8.0% 7 CK Absolute Return Fund 6.8% 8 Steadview Capital Fund 5.0% 9 JPM Taiwan Fund 3.9% 10 JPM Korea Fund 3.6% Source: IRESS, Company Reports Please refer to important information, disclosures and qualifications at the end of this material. 15

16 Share Price Relative to Benchmark Risk Analysis & Risk Adjusted Return Risk - Security 1 Year 3 Year 5 Year 10 Year Volatility 10.3% 11.8% 11.9% Benchmark Volatility 8.3% 10.6% 11.0% Beta to MSCI AxJ AUD Beta to ASX Resources Beta to CITIC Risk - Underlying 1 Year 3 Year 5 Year 10 Year NTA Volatility 7.6% 10.3% 10.3% Tracking Error 3.8% 5.4% 5.0% Skewness of Excess Downside Volatility 3.0% 4.8% 6.4% Risk Adjusted Return 1 Year 3 Year 5 Year 10 Year Information Ratio Sharpe Ratio Sortino Ratio Source: Factset, Bloomberg Please refer to important information, disclosures and qualifications at the end of this material. 16

17 Market Snapshot Current Price, as of 25/09/14 $ 8.44 August End: Pre-Tax NTA $ 8.84 August End: Post-Tax NTA $ 7.52 Beta-Implied NTA Estimate $ 8.66 Current Discount to NTA Estimate 2.6% Trailing 12 Month Dividend Yield 1.8% Last 12 Month Capital Gain 10.3% Beta (3 Year Rolling) to ASX Market Capitalisation (A$bn) Month Rolling Volume Traded (mn) Month Rolling Value Traded (A$mn) 2.3 MSWM Quant Rating: Neutral Australian United Investment Company (AUI) Key Information Universe: Australian Equities MER: 0.13% Style: Value, Long-Only, Active Performance Fees: None Manager: Internal Benchmark: S&P/ASX 300 Acc. Index Listed Date: 1 January 1974 Balance Date: 30 June Australian United Investment Company is a large and diversified LIC that invests in the ASX 300 Accumulation Index. It has a strong bottom-up fundamental philosophy and looks at a stock s individual income and growth prospects without reference to any top-down sector views. AUI does not have a separate investment management team, as all decisions are made by the board of directors. Performance: As at 31 August 2014 Security Total Return 3 Month 1 Year 3 Yr p.a. 5 Yr p.a. 10 Yr p.a Net Performance 13.7% 24.9% 20.7% 10.4% 11.0% ASX 300 Net Accum. 3.6% 14.1% 14.0% 9.1% 9.2% Excess Return 10.1% 10.7% 6.7% 1.3% 1.7% Gross Performance 13.7% 25.8% 22.5% 12.3% 12.7% ASX 300 Gross Accum. 3.9% 15.8% 15.6% 10.6% 10.7% Excess Return 9.8% 10.0% 7.0% 1.8% 1.9% Performance: Poor Performance has been reasonable on a NTA basis, however, a low dividend yield and high NTA volatility relative to peers depresses the LICs value score. Value: Good The LIC continues to trade at a discount to NTA. However, we note that high unrealised tax liabilities and lower than normal liquidity justify this discount to some degree. NTA Performance 3 Month 1 Year 3 Yr p.a. 5 Yr p.a. 10 Yr p.a Performance 1.6% 13.4% 14.5% 9.4% 10.0% ASX 300 Net Accum. 3.6% 14.1% 14.0% 9.1% 9.2% Excess Return -2.0% -0.8% 0.5% 0.3% 0.7% Franking Analysis 3 Month 1 Year 3 Yr p.a. 5 Yr p.a. 10 Yr p.a Franking Benefit 0.0% 0.8% 1.5% 1.7% 1.5% Bm Franking Return 0.3% 1.5% 1.4% 1.4% 1.4% Franking Excess -0.3% -0.6% 0.2% 0.4% 0.2% Share Price and NTA: Holdings at a Glance AUSTRALIAN UNITED INVESTMENT COMPANY AUI Top Holdings as at 31 August 2014 (excl cash) % of Portfolio 1 ANZ Banking 8.5% 2 Westpac Banking Corp. 7.6% 3 Commonwealth Bank 7.5% 4 BHP Billiton 6.9% 5 National Australia Bank 6.8% 6 Wesfarmers 5.8% 7 Rio Tinto 5.5% 8 Woodside Petroleum 4.9% 9 Diversified United Invest. 4.4% 10 Woolworths 4.0% Source: IRESS, Company Reports Please refer to important information, disclosures and qualifications at the end of this material. 17

18 Share Price Relative to Benchmark Risk Analysis & Risk Adjusted Return Risk - Security 1 Year 3 Year 5 Year 10 Year Volatility 9.0% 14.3% 13.9% 16.5% Benchmark Volatility 8.5% 11.7% 12.0% 13.8% Beta to ASX Beta to Resources Beta to Industrials Risk - Underlying 1 Year 3 Year 5 Year 10 Year NTA Volatility 9.6% 13.2% 13.7% 14.9% Tracking Error 2.6% 2.4% 3.0% 3.7% Skewness of Excess Downside Volatility 3.7% 7.5% 7.4% 9.5% Risk Adjusted Return 1 Year 3 Year 5 Year 10 Year Information Ratio Sharpe Ratio Sortino Ratio Source: Factset, Bloomberg Please refer to important information, disclosures and qualifications at the end of this material. 18

19 Market Snapshot Current Price, as of 25/09/14 $ 1.59 August End: Pre-Tax NTA $ 1.67 August End: Post-Tax NTA $ 1.54 Beta-Implied NTA Estimate $ 1.64 Current Discount to NTA Estimate 3.0% Trailing 12 Month Dividend Yield 4.3% Last 12 Month Capital Gain 3.6% Beta (3 Year Rolling) to ASX Market Capitalisation (A$bn) Month Rolling Volume Traded (mn) Month Rolling Value Traded (A$mn) 7.7 MSWM Quant Rating: Neutral BKI Investment Company (BKI) Key Information Universe: Australian Equities MER: 0.17% Style: Income, Long Only, Active Performance Fees: None Manager: Internal Benchmark: S&P/ASX 300 Acc. Index Listed Date: 12 December 2003 Balance Date: 30 June BKI Investment Company is a LIC that makes long-term investments in Australian equities. The company focuses on companies that are well-managed and provide strong dividends and dividend growth. BKI was initially formed in 2003 to manage the investment portfolio of Brickworks (BKW) that was established in the 1980s. Performance: As at 31 August 2014 Security Total Return 3 Month 1 Year 3 Yr p.a. 5 Yr p.a. 10 Yr p.a Net Performance 2.7% 14.2% 20.6% 12.9% 11.1% ASX 300 Net Accum. 3.6% 14.1% 14.0% 9.1% 9.2% Excess Return -0.9% 0.0% 6.6% 3.9% 1.9% Gross Performance 3.6% 16.2% 23.1% 15.3% 15.3% ASX 300 Gross Accum. 3.9% 15.8% 15.6% 10.6% 10.6% Excess Return -0.3% 0.4% 7.5% 4.8% 4.8% Performance: Poor BKI s performance over the past 12 months has been weak. Despite more robust performance over longer timeframes, high NTA volatility drags down the LIC s performance score. Value: Good BKI is trading at a discount to NTA however, relative to the LIC s history, this discount has narrowed substantially. NTA Performance 3 Month 1 Year 3 Yr p.a. 5 Yr p.a. 10 Yr p.a Performance 2.7% 9.9% 13.9% 9.8% 9.6% ASX 300 Net Accum. 3.6% 14.1% 14.0% 9.1% 9.2% Excess Return -0.9% -4.3% -0.1% 0.7% 0.3% Franking Analysis 3 Month 1 Year 3 Yr p.a. 5 Yr p.a. 6 Yr p.a. Franking Benefit 0.9% 1.8% 2.0% 2.1% 3.8% Bm Franking Return 0.3% 1.5% 1.4% 1.4% 1.2% Franking Excess 0.6% 0.4% 0.8% 0.9% 2.8% Share Price and NTA Holdings at a Glance BKI INVESTMENT COMPANY BKI Top Holdings as at 31 August 2014 (incl cash) % of Portfolio 1 Commonwealth Bank 9.3% 2 National Australia Bank 9.2% 3 Westpac Banking Corp. 8.3% 4 BHP Billiton 6.3% 5 Telstra Corp. 5.3% 6 New Hope Corporation 5.2% 7 ANZ Banking 4.9% 8 Wesfarmers 4.5% 9 Woolworths 3.8% 10 TPG Telecom 3.0% Source: IRESS, Company Reports Please refer to important information, disclosures and qualifications at the end of this material. 19

20 Share Price Relative to Benchmark Risk Analysis & Risk Adjusted Return Risk - Security 1 Year 3 Year 5 Year 10 Year Volatility 5.0% 14.3% 12.8% 17.0% Benchmark Volatility 8.5% 11.7% 12.0% 13.8% Beta to ASX Beta to Resources Beta to Industrials Risk - Underlying 1 Year 3 Year 5 Year 10 Year NTA Volatility 7.5% 11.0% 11.4% 12.4% Tracking Error 2.2% 3.7% 3.5% 5.2% Skewness of Excess Downside Volatility 2.5% 7.3% 6.9% 8.1% Source: Factset, Bloomberg Risk Adjusted Return 1 Year 3 Year 5 Year 10 Year Information Ratio Sharpe Ratio Sortino Ratio Source: Factset, Bloomberg, IRESS, Company Reports Please refer to important information, disclosures and qualifications at the end of this material. 20

21 Market Snapshot Current Price, as of 25/09/14 $ 1.42 August End: Pre-Tax NTA $ 1.43 August End: Post-Tax NTA $ 1.43 Beta-Implied NTA Estimate $ 1.41 Current Premium to NTA Estimate 0.7% Trailing 12 Month Dividend Yield 1.8% Last 12 Month Capital Gain 5.9% Beta (3 Year Rolling) to ASX Market Capitalisation (A$bn) Month Rolling Volume Traded (mn) Month Rolling Value Traded (A$mn) 16.6 MSWM Quant Rating: Overweight Cadence Capital (CDM) Key Information Universe: Australian Equities MER: 1.00% Style: Long Short, Small Cap Bias Performance Fees: 20% out performance against ASX All Ordinaries Index Manager: Internal Benchmark: S&P/ASX All Ord. Acc. Index Listed Date: 5 December 2006 Balance Date: 30 June CDM invests in both long and short positions, with a long bias, in equities listed on the Australian Stock Exchange. Typically the fund is active in under researched small and mid-cap equities in the market. The fund targets 20 to 40 research-driven core investments and anything from 0 to 40 trading opportunities in the portfolio at any one point in time. The maximum leverage the Fund would employ in the portfolio is $0.40 of debt for every $1 of equity, or 40% debt. Performance: As at 31 August 2014 Security Total Return 3 Month 1 Year 3 Yr p.a. 5 Yr p.a. 10 Yr p.a Net Performance 4.5% 15.4% 18.0% 27.9% ASX All Ordinaries 3.8% 14.4% 13.6% 9.1% Excess Return 0.7% 0.9% 4.4% 18.8% Gross Performance 4.5% 17.1% 21.6% 31.1% ASX All Ordinaries 4.1% 16.0% 15.1% 10.5% Excess Return 0.4% 1.1% 6.5% 20.6% Performance: Good CDM s long term returns have been impressive it has strong risk adjusted returns and a positive return skew. Value: Good Following recent weakness in the domestic market CDM is trading at a minor premium to NTA. A low technical RSI and worst case scenario discount also benefit the Fund. Holdings at a Glance CADENCE CAPITAL CDM Top Holdings as at 31 August 2014 (incl cash) % of Portfolio 1 Macquarie Group 8.1% 2 Henderson Group PLC 5.8% 3 Gilead Science Inc 5.0% 4 Genworth 4.7% 5 Arrium Ltd 4.3% 6 Melbourne IT 4.0% 7 ANZ Banking 4.0% 8 iinet Ltd 3.1% 9 Retail Food Group 3.1% 10 Suncorp-Metway 3.0% Source: IRESS, Company Reports NTA Performance 3 Month 1 Year 3 Yr p.a. 5 Yr p.a. 10 Yr p.a Performance 3.5% 14.7% 12.7% 20.1% ASX All Ordinaries 3.8% 14.4% 13.6% 9.1% Excess Return -0.3% 0.3% -1.0% 11.0% Franking Analysis 3 Month 1 Year 3 Yr p.a. 5 Yr p.a. 10 Yr p.a Franking Benefit 0.0% 1.5% 3.1% 2.5% Bm Franking Return 0.3% 1.3% 1.3% 1.3% Franking Excess -0.3% 0.2% 2.1% 1.5% Share Price and NTA Please refer to important information, disclosures and qualifications at the end of this material. 21

22 Share Price Relative to Benchmark Risk Analysis & Risk-Adjusted Return Risk - Security 1 Year 3 Year 5 Year 10 Year Volatility 10.5% 13.0% 15.9% Benchmark Volatility 8.3% 11.7% 11.9% Beta to ASX Beta to Resources Beta to Industrials Risk - Underlying 1 Year 3 Year 5 Year 10 Year NTA Volatility 6.5% 7.8% 13.7% Tracking Error 8.5% 8.1% 11.4% Skewness of Excess Downside Volatility 2.5% 4.3% 8.4% Source: Factset, Bloomberg Risk Adjusted Return 1 Year 3 Year 5 Year 10 Year Information Ratio Sharpe Ratio Sortino Ratio Please refer to important information, disclosures and qualifications at the end of this material. 22

23 Market Snapshot Current Price, as of 25/09/14 $ August End: Pre-Tax NTA $ August End: Post-Tax NTA $ Beta-Implied NTA Estimate $ Current Discount to NTA Estimate 9.0% Trailing 12 Month Dividend Yield 3.7% Last 12 Month Capital Gain 16.3% Beta (3 Year Rolling) to ASX Market Capitalisation (A$bn) Month Rolling Volume Traded (mn) Month Rolling Value Traded (A$mn) 1.3 MSWM Quant Rating: Overweight Carlton Investments (CIN) Key Information Universe: Australian Equities MER: 0.12% Style: Income, Long-Only, Active Performance Fees: None Manager: Internal Benchmark: S&P/ASX 300 Acc. Index Balance Date: 30 June Listed Date: January 1971 Carlton Investments focuses on investing in blue chip shares which have a high, sustainable and fully franked dividend yield. It has a strong exposure to Amalgamated Holdings (AHD) and therefore it has a tilt towards the entertainment, hospitality and leisure industries. CIN was initially incorporated in 1928 to acquire Carlton Hotel Ltd and Ebenezer Investment Company. Performance: As at 31 August 2014 Security Total Return 3 Month 1 Year 3 Yr p.a. 5 Yr p.a. 10 Yr p.a Net Performance 7.3% 18.4% 27.8% 16.2% 12.7% ASX 300 Net Accum. 3.6% 14.1% 14.0% 9.1% 9.2% Excess Return 3.8% 4.2% 13.8% 7.2% 3.5% Gross Performance 8.3% 20.2% 30.0% 18.3% 14.7% ASX 300 Gross Accum. 3.9% 15.8% 15.6% 10.6% 10.7% Excess Return 4.5% 4.4% 14.5% 7.8% 4.0% Performance: Excellent Performance has been solid over all timeframes and this LIC exhibits a positive skew of excess returns. Value: Good While historically CIN has traded at a discount to NTA, it ranks strongly relative to expensive peers. Holdings at a Glance CARLTON INVESTMENTS CIN Top Holdings as at 30 June 2014 (incl cash) % of Portfolio 1 Amalgamated Holdings 36.0% 2 National Australia Bank 8.2% 3 Westpac Banking Corp. 7.5% 4 Commonwealth Bank 5.6% 5 ANZ Banking 4.1% 6 Wesfarmers 3.3% 7 BHP Billiton 3.2% 8 Telstra Corp. 2.7% 9 AGL Energy 2.6% 10 Perpetual 2.4% Source: IRESS, Company Reports NTA Performance 3 Month 1 Year 3 Yr p.a. 5 Yr p.a. 10 Yr p.a Performance 3.0% 19.3% 20.9% 13.5% 11.9% ASX 300 Net Accum. 3.6% 14.1% 14.0% 9.1% 9.2% Excess Return -0.6% 5.1% 6.9% 4.5% 2.7% Franking Analysis 3 Month 1 Year 3 Yr p.a. 5 Yr p.a. 10 Yr p.a Franking Benefit 0.9% 1.5% 1.8% 1.8% 1.7% Bm Franking Return 0.3% 1.5% 1.4% 1.4% 1.4% Franking Excess 0.7% 0.1% 0.6% 0.6% 0.5% Share Price and NTA Please refer to important information, disclosures and qualifications at the end of this material. 23

24 Share Price Relative to Benchmark Risk Analysis & Risk-Adjusted Return Risk - Security 1 Year 3 Year 5 Year 10 Year Volatility 10.5% 16.7% 15.3% 15.1% Benchmark Volatility 8.5% 11.7% 12.0% 13.8% Beta to ASX Beta to Resources Beta to Industrials Risk - Underlying 1 Year 3 Year 5 Year 10 Year NTA Volatility 7.3% 9.5% 9.8% 11.9% Tracking Error 4.9% 6.1% 6.8% 8.0% Skewness of Excess Downside Volatility 1.6% 5.4% 5.6% 8.7% Risk Adjusted Return 1 Year 3 Year 5 Year 10 Year Information Ratio Sharpe Ratio Sortino Ratio Source: Factset, Bloomberg, Company Reports Please refer to important information, disclosures and qualifications at the end of this material. 24

25 Market Snapshot Current Price, as of 25/09/14 $ 4.55 August End: Pre-Tax NTA $ 3.76 August End: Post-Tax NTA $ 3.63 Beta-Implied NTA Estimate $ 3.70 Current Premium to NTA Estimate 23.1% Trailing 12 Month Dividend Yield 5.7% Last 12 Month Capital Gain 1.1% Beta (3 Year Rolling) to ASX Market Capitalisation (A$bn) Month Rolling Volume Traded (mn) Month Rolling Value Traded (A$mn) 8.9 MSWM Quant Rating: Underweight Djerriwarrh Investments (DJW) Key Information Universe: Australian Equities MER: 0.41% Style: Core, Long-Only, Active plus options Performance Fees: None Manager: Internal Listed Date: 28 June 1995 Benchmark: S&P/ASX50 Acc. Balance Date: 30 June Djerriwarrh Investments invests on large cap stocks for which there is an active options market. The reason for this is that the company also attempts to enhance income within the portfolio by writing exchange traded call options on 20%- 50% of stocks in the portfolio (buy-write strategies). Djerriwarrh invests in the stocks that provide a fully franked dividend and reasonable capital upside. The company may gear its balance sheet by issuing convertible notes and through access to lines of credit. Performance: As at 31 August 2014 Security Total Return 3 Month 1 Year 3 Yr p.a. 5 Yr p.a. 10 Yr p.a Net Performance 2.6% 11.9% 17.0% 9.0% 10.1% ASX 50 Net Accum. 3.2% 14.2% 15.9% 10.1% 10.0% Excess Return -0.7% -2.2% 1.1% -1.1% 0.1% Gross Performance 4.0% 14.6% 20.1% 11.9% 12.9% ASX 50 Gross Accum. 3.6% 16.0% 17.7% 11.7% 11.6% Excess Return 0.4% -1.4% 2.4% 0.1% 1.3% Performance: Poor DJW has a strong ability to generate franking benefits and a good income stream derived from selling call options, however NTA performance has been disappointing. Value: Poor DJW continues to trade at a considerable premium to NTA, which is no longer warranted given alternatives in the buy-write space. Holdings at a Glance NTA Performance 3 Month 1 Year 3 Yr p.a. 5 Yr p.a. 10 Yr p.a Performance 2.1% 12.9% 13.6% 8.1% 9.0% ASX 50 Net Accum. 3.2% 14.2% 15.9% 10.1% 10.0% Excess Return -1.2% -1.3% -2.4% -2.0% -1.0% Franking Analysis 3 Month 1 Year 3 Yr p.a. 5 Yr p.a. 10 Yr p.a Franking Benefit 1.4% 2.4% 2.6% 2.7% 2.6% Bm Franking Return 0.3% 1.6% 1.5% 1.5% 1.5% Franking Excess 1.1% 0.8% 1.3% 1.3% 1.2% Share Price and NTA DJERRIWARRH INVESTMENTS DJW Top Holdings as at 31 August 2014 (incl cash) % of Portfolio 1 BHP Billiton 11.2% 2 Westpac Banking Corp. 9.0% 3 Commonwealth Bank 7.5% 4 National Australia Bank 7.2% 5 ANZ Banking 6.8% 6 Oil Search 4.9% 7 Telstra Corp. 4.7% 8 Wesfarmers 4.0% 9 Rio Tinto 3.5% 10 Woodside Petroleum 3.5% Source: IRESS, Company Reports Please refer to important information, disclosures and qualifications at the end of this material. 25

26 Share Price Relative to Benchmark Risk Analysis & Risk-Adjusted Return Risk - Security 1 Year 3 Year 5 Year 10 Year Volatility 9.6% 14.4% 14.7% 15.8% Benchmark Volatility 8.4% 11.5% 11.9% 13.3% Beta to ASX Beta to Resources Beta to Industrials Risk - Underlying 1 Year 3 Year 5 Year 10 Year NTA Volatility 8.7% 11.5% 11.4% 13.1% Tracking Error 1.5% 2.8% 3.1% 3.4% Skewness of Excess Downside Volatility 2.4% 7.2% 7.0% 9.7% Source: Factset, Bloomberg, IRESS, Company Reports Risk Adjusted Return 1 Year 3 Year 5 Year 10 Year Information Ratio Sharpe Ratio Sortino Ratio Please refer to important information, disclosures and qualifications at the end of this material. 26

27 Market Snapshot Current Price, as of 25/09/14 $ 3.66 August End: Pre-Tax NTA $ 3.91 August End: Post-Tax NTA $ 3.34 Beta-Implied NTA Estimate $ 3.83 Current Discount to NTA Estimate 4.3% Trailing 12 Month Dividend Yield 1.9% Last 12 Month Capital Gain 10.9% Beta (3 Year Rolling) to ASX Market Capitalisation (A$bn) Month Rolling Volume Traded (mn) Month Rolling Value Traded (A$mn) 2.5 MSWM Quant Rating: Neutral Diversified United Investment (DUI) Key Information Universe: Australian Equities MER: 0.17% Style: Value, Long-Only, Active Performance Fees: None Manager: Internal Benchmark: S&P/ASX 300 Acc. Index Listed Date: 19 December Balance Date: 30 June Diversified United Investment Ltd invests mainly in Australian equities but also seeks to invest a small amount in fixed income securities, property trusts and short-term deposits. The LIC focuses on medium to long term capital growth through large blue-chip stocks. Performance: As at 31 August 2014 Security Total Return 3 Month 1 Year 3 Yr p.a. 5 Yr p.a. 10 Yr p.a Net Performance 10.9% 26.1% 23.2% 10.3% 12.5% ASX 300 Net Accum. 3.6% 14.1% 14.0% 9.1% 9.2% Excess Return 7.4% 11.9% 9.2% 1.2% 3.3% Gross Performance 10.9% 27.1% 25.2% 12.4% 14.5% ASX 300 Gross Accum. 3.9% 15.8% 15.6% 10.6% 10.7% Excess Return 7.1% 11.3% 9.6% 1.9% 3.7% NTA Performance 3 Month 1 Year 3 Yr p.a. 5 Yr p.a. 10 Yr p.a Performance 1.6% 14.0% 16.3% 9.2% 11.0% ASX 300 Net Accum. 3.6% 14.1% 14.0% 9.1% 9.2% Excess Return -2.0% -0.2% 2.3% 0.2% 1.7% Performance: Neutral Performance has been reasonable, with solid returns over the long term. However, a low dividend yield and high NTA volatility reduce the overall performance score. Value: Good DUI offers good value trading at a discount of 4.3% to NTA. Franking Analysis 3 Month 1 Year 3 Yr p.a. 5 Yr p.a. 10 Yr p.a Franking Benefit 0.0% 0.8% 1.6% 1.9% 1.8% Bm Franking Return 0.3% 1.5% 1.4% 1.4% 1.4% Franking Excess -0.3% -0.6% 0.3% 0.6% 0.5% Share Price and NTA Holdings at a Glance DIVERSIFIED UNITED INVESTMENT COMPANY DUI Top Holdings as at 31 August 2014 (incl cash) % of Portfolio 1 Commonwealth Bank 9.1% 2 ANZ Banking 8.8% 3 Westpac Banking Corp. 8.8% 4 BHP Billiton 8.4% 5 Woodside Petroleum 6.0% 6 National Australia Bank 5.9% 7 CSL 5.4% 8 Rio Tinto 4.7% 9 Transurban Group 3.6% 10 Woolworths 3.0% Source: IRESS, Company Reports Please refer to important information, disclosures and qualifications at the end of this material. 27

28 Share Price Relative to Benchmark Risk Analysis & Risk-Adjusted Return Risk - Security 1 Year 3 Year 5 Year 10 Year Volatility 8.7% 15.7% 15.1% 16.7% Benchmark Volatility 8.5% 11.7% 12.0% 13.8% Beta to ASX Beta to Resources Beta to Industrials Risk - Underlying 1 Year 3 Year 5 Year 10 Year NTA Volatility 9.3% 12.7% 13.2% 15.2% Tracking Error 2.4% 2.2% 3.0% 4.6% Skewness of Excess Downside Volatility 2.7% 7.2% 7.4% 10.1% Source: Factset, Bloomberg, Risk Adjusted Return 1 Year 3 Year 5 Year 10 Year Information Ratio Sharpe Ratio Sortino Ratio Please refer to important information, disclosures and qualifications at the end of this material. 28

29 Market Snapshot Current Price, as of 25/09/14 $ 1.13 August End: Pre-Tax NTA $ 1.28 August End: Post-Tax NTA $ 1.27 Beta-Implied NTA Estimate $ 1.32 Current Discount to NTA Estimate 14.6% Trailing 12 Month Dividend Yield 6.1% Last 12 Month Capital Gain 14.8% Beta (3 Year Rolling) to ASX Market Capitalisation (A$bn) Month Rolling Volume Traded (mn) Month Rolling Value Traded (A$mn) 5.9 MSWM Quant Rating: Overweight Hunter Hall Global Value (HHV) Key Information Universe: International Equities MER: 1.50% Style: Value, Long-Only, Actively Hedged Performance Fees: 15% above benchmark Manager: Hunter Hall Investment Management Benchmark: MSCI World AUD Listed Date: 19 March 2004 Balance Date: 30 June Hunter Hall Global Value is a LIC aiming for capital growth through investments in global equities that deemed to be undervalued compared to their intrinsic value. The company has international currency exposures that are managed actively by the investment manager. The investment style is focused towards value with a medium to long-term investment horizon. Hunter Hall has a reputation within Australia for ethical investing. Performance: As at 31 August 2014 Security Total Return 3 Month 1 Year 3 Yr p.a. 5 Yr p.a. 10 Yr p.a Net Performance 10.2% 26.2% 18.0% 10.9% 4.9% MSCI World AUD 1.9% 15.3% 20.8% 10.0% 4.6% Excess Return 8.4% 10.8% -2.8% 0.9% 0.3% Gross Performance 10.2% 26.6% 18.5% 11.9% 6.2% MSCI World AUD 2.0% 15.9% 21.5% 10.6% 5.2% Excess Return 8.3% 10.7% -3.0% 1.2% 1.0% Performance: Good HHV has delivered strong returns over the past 12 months. Moreover NTA volatility is low relative to peers. Value: Good HHV continues to trade at an attractive discount to NTA it should be noted however, this discount has been quite persistent through time. NTA Performance 3 Month 1 Year 3 Yr p.a. 5 Yr p.a. 10 Yr p.a Performance 6.2% 18.8% 12.4% 8.4% 5.5% MSCI World AUD 1.9% 15.3% 20.8% 10.0% 4.6% Excess Return 4.3% 3.4% -8.4% -1.7% 0.9% Franking Analysis 3 Month 1 Year 3 Yr p.a. 5 Yr p.a. 10 Yr p.a Franking Benefit 0.0% 0.4% 0.4% 0.9% 1.3% Bm Franking Return 0.0% 0.0% 0.0% 0.0% 0.0% Franking Excess 0.0% 0.4% 0.4% 0.9% 1.3% Share Price and NTA Holdings at a Glance HUNTER HALL GLOBAL VALUE HHV Top Holdings as at 31 August 2014 (excl cash) % of Portfolio 1 Sirtex Medical 20.1% 2 M2 Telecommunications 5.3% 3 Danieli 3.7% 4 Take Two Interactive 2.5% 5 JP Morgan 2.4% 6 Bank of New York Mellon 2.3% 7 Prudential Financial 2.3% 8 Apple 1.9% 9 LeoPalace21 2.2% 10 Alchemia 2.1% Source: IRESS, Company Reports Please refer to important information, disclosures and qualifications at the end of this material. 29

30 Share Price Relative to Benchmark Risk Analysis & Risk-Adjusted Return Risk - Security 1 Year 3 Year 5 Year 10 Year Volatility 11.6% 13.1% 12.8% 16.5% Benchmark Volatility 8.2% 9.0% 9.7% 11.3% Beta to MSCI AC World Beta to MSCI World Beta to ASX Risk - Underlying 1 Year 3 Year 5 Year 10 Year NTA Volatility 6.7% 11.5% 10.1% 15.7% Tracking Error 8.0% 9.5% 9.7% 13.7% Skewness of Excess Downside Volatility 2.7% 8.2% 6.6% 13.3% Risk Adjusted Return 1 Year 3 Year 5 Year 10 Year Information Ratio Sharpe Ratio Sortino Ratio Source: Factset, Bloomberg Please refer to important information, disclosures and qualifications at the end of this material. 30

31 `Market Snapshot Current Price, as of 25/09/14 $ 2.54 August End: Pre-Tax NTA $ 2.32 August End: Post-Tax NTA $ 2.07 Beta-Implied NTA Estimate $ 2.28 Current Premium to NTA Estimate 11.6% Trailing 12 Month Dividend Yield 3.8% Last 12 Month Capital Gain 4.7% Beta (3 Year Rolling) to ASX Market Capitalisation (A$bn) Month Rolling Volume Traded (mn) Month Rolling Value Traded (A$mn) 4.0 MSWM Quant Rating: Neutral Mirrabooka Investments (MIR) Key Information Universe: Australian and NZ Equities MER: 0.79% Style: Core, Long-Only, Small/Mid Cap Performance Fees: None Manager: Internal Benchmark: Combined S&P Mid-50 & Small Listed Date: 28 June 2001 Ordinaries Acc. Index (50%/50%) Balance Date: 30 June Mirrabooka Investments invests in small to mid-cap companies listed on the Australian and New Zealand stock exchanges. Its objective is to provide long-term growth with a particular focus on companies with a low price to earnings ratio and a high dividend yield. Performance: As at 31 August 2014 Security Total Return 3 Month 1 Year 3 Yr p.a. 5 Yr p.a. 10 Yr p.a Net Performance 13.9% 23.3% 26.0% 17.0% 16.7% ASX Mid 50 / Small Cap 5.2% 13.5% 5.2% 4.4% 6.2% Excess Return 8.6% 9.9% 20.7% 12.6% 10.5% Gross Performance 16.6% 27.1% 29.3% 19.9% 20.1% ASX Mid 50 / Small Cap 5.4% 14.5% 6.6% 5.5% 7.2% Excess Return 11.2% 12.6% 22.8% 14.4% 12.9% Performance: Good MIR has delivered solid risk adjusted returns over all timeframes. Value: Poor Value is poor with the LIC trading at large beta implied premium of 11.6% to NTA. NTA Performance 3 Month 1 Year 3 Yr p.a. 5 Yr p.a. 10 Yr p.a Performance 6.3% 21.6% 19.0% 14.3% 11.6% ASX Mid 50 / Small Cap 5.2% 13.5% 5.2% 4.4% 6.2% Excess Return 1.1% 8.1% 13.8% 9.9% 5.4% Franking Analysis 3 Month 1 Year 3 Yr p.a. 5 Yr p.a. 10 Yr p.a Franking Benefit 2.4% 3.0% 2.7% 2.5% 2.9% Bm Franking Return 0.1% 0.9% 1.3% 1.1% 1.0% Franking Excess 2.4% 2.5% 1.7% 1.6% 2.2% Share Price and NTA Holdings at a Glance MIRRABOOKA INVESTMENTS MIR Top Holdings as at 31 August 2014 (excl cash) % of Portfolio 1 Equity Trustees 3.7% 2 Tassal Group 3.3% 3 Qube Holdings 3.3% 4 Oil Search 3.3% 5 ALS Ltd 3.1% 6 Ansell 3.0% 7 IRESS Market Tech. 2.7% 8 Alumina 2.6% 9 InvoCare 2.5% 10 Perpetual 2.5% Source: IRESS, Company Reports Please refer to important information, disclosures and qualifications at the end of this material. 31

32 Share Price Relative to Benchmark Risk Analysis & Risk-Adjusted Return Risk - Security 1 Year 3 Year 5 Year 10 Year Volatility 19.7% 17.1% 17.7% 20.9% Benchmark Volatility 9.8% 14.7% 14.4% 17.6% Beta to ASX Beta to Resources Beta to Industrials Risk - Underlying 1 Year 3 Year 5 Year 10 Year NTA Volatility 9.5% 11.2% 10.6% 14.1% Tracking Error 4.4% 6.5% 6.4% 7.3% Skewness of Excess Downside Volatility 3.3% 5.7% 5.8% 11.2% Risk Adjusted Return 1 Year 3 Year 5 Year 10 Year Information Ratio Sharpe Ratio Sortino Ratio Source: Factset, Bloomberg Please refer to important information, disclosures and qualifications at the end of this material. 32

33 Market Snapshot Current Price, as of 25/09/14 $ 1.52 August End: Pre-Tax NTA $ 1.50 August End: Post-Tax NTA $ 1.36 Beta-Implied NTA Estimate $ 1.56 Current Discount to NTA Estimate 2.9% Trailing 12 Month Dividend Yield 1.4% Last 12 Month Capital Gain 7.1% Beta (3 Year Rolling) to ASX Market Capitalisation (A$bn) Month Rolling Volume Traded (mn) Month Rolling Value Traded (A$mn) 14.5 MSWM Quant Rating: Neutral Magellan Flagship Fund (MFF) Key Information Universe: International Equities MER: 1.25% Style: Core, Long-Only, Actively Hedged Performance Fees: 10% above benchmark if > Australian Gov. 10Yr Yield Manager: Magellan Asset Management Benchmark: MSCI World ex Aus. (AUD) Listed Date: 19 Dec 2006 Balance Date: 30 June Magellan Flagship Fund (MFF) is an international equity LIC which invests in large multinational corporations that are expected to be market leaders within attractive industries. The LIC has a medium to long investment horizon and looks at stocks that are believed to be trading below intrinsic value. Currency exposures are activity hedged by the LIC according to its FX views. Performance: As at 31 August 2014 Security Total Return 3 Month 1 Year 3 Yr p.a. 5 Yr p.a. 10 Yr p.a Net Performance -0.3% 6.4% 36.1% 20.7% M SCI World ex Aus AUD 1.8% 15.3% 21.0% 10.1% Excess Return -2.2% -8.9% 15.0% 10.6% Gross Performance -0.3% 6.4% 36.1% 20.7% M SCI World ex Aus AUD 1.9% 16.0% 21.8% 10.7% Excess Return -2.3% -9.5% 14.4% 10.1% Performance: Good Short term performance has improved, while over the long term MFF has delivered impressive excess returns. We note, however, that the concentrated nature of the portfolio tends to lead to higher tracking error. Value: Neutral Despite trading at a small discount to NTA, this discount is small relative to history thereby reducing the funds overall value score. NTA Performance 3 Month 1 Year 3 Yr p.a. 5 Yr p.a. 10 Yr p.a Performance 4.1% 12.4% 27.1% 16.9% M SCI World ex Aus AUD 1.8% 15.3% 21.0% 10.1% Excess Return 2.3% -3.0% 6.1% 6.9% Franking Analysis 3 Month 1 Year 3 Yr p.a. 5 Yr p.a. 10 Yr p.a Franking Benefit 0.0% 0.0% 0.0% 0.0% Bm Franking Return 0.0% 0.0% 0.0% 0.0% Franking Excess 0.0% 0.0% 0.0% 0.0% Share Price and NTA Holdings at a Glance MAGELLAN FLAGSHIP FUND MFF Top Holdings as at 31 August 2014 (excl cash) % of Portfolio 1 Wells Fargo 11.7% 2 Visa 10.5% 3 Home Depot Inc 9.6% 4 Lowe's 9.3% 5 Bank of America 8.7% 6 MasterCard 8.0% 7 HCA Holdings 7.8% 8 Lloyds Banking Group 5.8% 9 US Bancorp 5.1% 10 Wal-Mart 5.0% Source: IRESS, Company Reports Please refer to important information, disclosures and qualifications at the end of this material. 33

34 Share Price Relative to Benchmark Risk Analysis & Risk-Adjusted Return Risk - Security 1 Year 3 Year 5 Year 10 Year Volatility 16.4% 15.5% 15.6% Benchmark Volatility 8.5% 9.3% 9.9% Beta to MSCI AC World Beta to MSCI World Beta to ASX Risk - Underlying 1 Year 3 Year 5 Year NTA Volatility 17.0% 15.4% 13.6% Tracking Error 14.8% 11.4% 10.6% Skewness of Excess Downside Volatility 9.2% 7.4% 6.1% Risk Adjusted Return 1 Year 3 Year 5 Year Information Ratio Sharpe Ratio Sortino Ratio Source: Factset, Bloomberg Please refer to important information, disclosures and qualifications at the end of this material. 34

35 Market Snapshot Current Price, as of 25/09/14 $ 4.37 August End: Pre-Tax NTA $ 4.41 August End: Post-Tax NTA $ 3.88 Beta-Implied NTA Estimate $ 4.33 Current Premium to NTA Estimate 0.9% Trailing 12 Month Dividend Yield 4.1% Last 12 Month Capital Gain 9.5% Beta (3 Year Rolling) to ASX Market Capitalisation (A$bn) Month Rolling Volume Traded (mn) Month Rolling Value Traded (A$mn) 18.7 MSWM Quant Rating: Overweight Milton Corporation (MLT) Key Information Universe: Australian Equities MER: 0.16% Style: Core, Long-Only, Active Performance Fees: None Manager: Internal Benchmark: S&P/ASX 300 Acc. Index Listed Date: 30 January 1962 Balance Date: 30 June Milton Corporation is a long-standing LIC that invests predominantly in Australian equities. It may also invest in fixed interest securities and real property. MLT s objective is to provide a fully franked dividend and diversified growth to investors. The LIC is heavily weighted towards the financial sector. Performance: As at 31 August 2014 Security Total Return 3 Month 1 Year 3 Yr p.a. 5 Yr p.a. 10 Yr p.a Net Performance 6.0% 19.9% 20.6% 10.5% 9.4% ASX 300 Net Accum. 3.6% 14.1% 14.0% 9.1% 9.2% Excess Return 2.4% 5.8% 6.6% 1.4% 0.1% Gross Performance 7.0% 22.0% 22.9% 12.6% 11.4% ASX 300 Gross Accum. 3.9% 15.8% 15.6% 10.6% 10.7% Excess Return 3.1% 6.2% 7.3% 2.0% 0.7% Performance: Good MLT has delivered solid NTA returns over longer timeframes. Strong risk adjusted returns and an attractive dividend are additional positives for this LIC. Value: Good MLT is trading at a premium to NTA, however it screens positively on value relative to peers. NTA Performance 3 Month 1 Year 3 Yr p.a. 5 Yr p.a. 10 Yr p.a Performance 2.5% 13.8% 16.3% 10.1% 9.3% ASX 300 Net Accum. 3.6% 14.1% 14.0% 9.1% 9.2% Excess Return -1.0% -0.4% 2.3% 1.0% 0.1% Franking Analysis 3 Month 1 Year 3 Yr p.a. 5 Yr p.a. 10 Yr p.a Franking Benefit 0.9% 1.7% 1.9% 1.9% 1.9% Bm Franking Return 0.3% 1.5% 1.4% 1.4% 1.4% Franking Excess 0.6% 0.4% 0.7% 0.7% 0.5% Holdings at a Glance MILTON CORPORATION MLT Top Holdings as at 31 August 2014 (incl cash) % of Portfolio 1 Westpac Banking Corp. 12.9% 2 Commonwealth Bank 8.7% 3 National Australia Bank 5.4% 4 Washington H Soul Pattison 4.7% 5 BHP Billiton 4.4% 6 Wesfarmers 4.4% 7 Woolworths 3.6% 8 ANZ Banking 3.5% 9 Bank of Queensland 3.2% 10 ALS Ltd 2.9% Source: IRESS, Company Reports Share Price and NTA Please refer to important information, disclosures and qualifications at the end of this material. 35

36 Share Price Relative to Benchmark Risk Analysis & Risk-Adjusted Return Risk - Security 1 Year 3 Year 5 Year 10 Year Volatility 10.6% 14.1% 13.0% 14.9% Benchmark Volatility 8.5% 11.7% 12.0% 13.7% Beta to ASX Beta to Resources Beta to Industrials Risk - Underlying 1 Year 3 Year 5 Year 10 Year NTA Volatility 7.7% 10.7% 11.0% 13.2% Tracking Error 2.7% 3.3% 3.2% 4.3% Skewness of Excess Downside Volatility 3.5% 6.5% 6.7% 10.3% Risk Adjusted Return 1 Year 3 Year 5 Year 10 Year Information Ratio Sharpe Ratio Sortino Ratio Source: Factset, Bloomberg Please refer to important information, disclosures and qualifications at the end of this material. 36

37 Market Snapshot Current Price, as of 25/09/14 $ 1.85 August End: Pre-Tax NTA $ 1.64 August End: Post-Tax NTA $ 1.48 Beta-Implied NTA Estimate $ 1.72 Current Premium to NTA Estimate 7.3% Trailing 12 Month Dividend Yield 4.5% Last 12 Month Capital Gain 19.7% Beta (3 Year Rolling) to ASX Market Capitalisation (A$bn) Month Rolling Volume Traded (mn) Month Rolling Value Traded (A$mn) 8.1 MSWM Quant Rating: Neutral Platinum Capital (PMC) Key Information Universe: International Equities MER: 1.50% Style: Value, Long-Short, Actively Hedged Performance Fees: 15% above index + 5% Manager: Platinum Asset Management Listed Date: 29 June 1994 Benchmark: MSCI AC World Net Free AUD Balance Date: 30 June Platinum Capital is the Listed Investment Company managed by Platinum Asset Management a well-known global equity asset manager domiciled in Australia. PMC employs a value strategy to find and exploit perceived undervaluation within global equity markets. The LIC manages currency exposures actively and may also enter into short positions on equities or indices. Performance: As at 31 August 2014 Security Total Return 3 Month 1 Year 3 Yr p.a. 5 Yr p.a. 10 Yr p.a Net Performance 5.4% 24.5% 26.3% 7.8% 4.3% MSCI AC World AUD 2.4% 15.2% 19.3% 9.5% 4.9% Excess Return 3.1% 9.2% 7.0% -1.7% -0.6% Gross Performance 6.7% 26.8% 27.9% 10.0% 7.0% MSCI AC World AUD 2.5% 15.8% 20.0% 10.1% 5.4% Excess Return 4.2% 11.0% 8.0% -0.1% 1.5% NTA Performance 3 Month 1 Year 3 Yr p.a. 5 Yr p.a. 10 Yr p.a Performance 4.9% 12.0% 19.6% 9.1% 7.4% MSCI AC World AUD 2.4% 15.2% 19.3% 9.5% 4.9% Excess Return 2.6% -3.2% 0.2% -0.4% 2.5% Performance: Good Despite weak 1 year excess returns the LIC has delivered solid returns over 10 years and NTA volatility remains reasonable. Value: Poor PMC scores poorly on value trading at a large premium to NTA. However, this premium is quite low relative to history. Franking Analysis 3 Month 1 Year 3 Yr p.a. 5 Yr p.a. 10 Yr p.a Franking Benefit 1.2% 1.9% 1.3% 2.0% 2.6% Bm Franking Return 0.0% 0.0% 0.0% 0.0% 0.0% Franking Excess 1.2% 1.9% 1.3% 2.0% 2.6% Share Price and NTA Holdings at a Glance PLATINUM CAPITAL Jun-14 Mar-14 PMC Geographical exposure % of Portfolio Change Asia 29.0% 28.0% 1.0% North America 26.0% 24.0% 2.0% Europe 23.0% 26.0% -3.0% Japan 12.0% 14.0% -2.0% Russia 3.0% 2.0% 1.0% Africa 3.0% 3.0% 0.0% Australia 1.0% 1.0% 0.0% South America 1.0% 1.0% 0.0% Cash 2.0% 1.0% 1.0% Shorts 10.0% 10.0% 0.0% Source: IRESS, Company Reports Please refer to important information, disclosures and qualifications at the end of this material. 37

38 Share Price and Relative Benchmark Risk Analysis & Risk-Adjusted Return Risk - Security 1 Year 3 Year 5 Year 10 Year Volatility 15.0% 15.3% 17.2% 19.2% Benchmark Volatility 7.7% 8.7% 9.3% 11.1% Beta to MSCI AC World Beta to MSCI World Beta to ASX Risk - Underlying 1 Year 3 Year 5 Year 10 Year NTA Volatility 11.6% 11.6% 11.1% 12.2% Tracking Error 6.1% 6.1% 7.4% 10.2% Skewness of Excess Downside Volatility 8.1% 5.3% 5.3% 6.0% Risk Adjusted Return 1 Year 3 Year 5 Year 10 Year Information Ratio Sharpe Ratio Sortino Ratio Source: Factset, Bloomberg Please refer to important information, disclosures and qualifications at the end of this material. 38

39 Market Snapshot Current Price, as of 25/09/14 $ 1.37 August End: Pre-Tax NTA $ 1.38 August End: Post-Tax NTA $ 1.36 Beta-Implied NTA Estimate $ 1.47 Current Discount to NTA Estimate 7.1% Trailing 12 Month Dividend Yield 2.1% Last 12 Month Capital Gain 18.5% Beta (3 Year Rolling) to ASX Market Capitalisation (A$bn) Month Rolling Volume Traded (mn) Month Rolling Value Traded (A$mn) 5.9 MSWM Quant Rating: Neutral Templeton Global Growth Fund (TGG) Key Information Universe: International Equities MER: 1.00% Style: Value, Long-Only, Unhedged Performance Fees: None Manager: Franklin Templeton Investment Benchmark: MSCI AC World Free Net AUD Listed Date: 28 May 1987 Balance Date: 30 June Templeton Global Growth Fund is a listed investment company that invests in international equities. The investment manager is a wholly owned subsidiary of Franklin Templeton Investments which has over 60 years of investment experience with operations in over 30 countries around the world. The manager does not normally enter into hedging contracts. Performance: As at 31 August 2014 Security Total Return 3 Month 1 Year 3 Yr p.a. 5 Yr p.a. 10 Yr p.a Net Performance 3.5% 19.1% 28.6% 13.5% 5.5% MSCI AC World Free AUD 2.4% 15.2% 19.3% 9.5% 4.9% Excess Return 1.1% 3.9% 9.2% 4.0% 0.6% Gross Performance 3.5% 20.2% 29.8% 14.5% 6.5% MSCI AC World Free AUD 2.5% 15.8% 20.0% 10.1% 5.4% Excess Return 1.0% 4.4% 9.9% 4.4% 1.1% Performance: Good TGG s short term performance has deteriorated recently. Despite this it s skew on returns is positive over long timeframes and it offers an attractive dividend yield relative to international peers. Value: Neutral While value remains attractive with the LIC trading at a ~7.0% discount to NTA, this discount has narrowed over time. NTA Performance 3 Month 1 Year 3 Yr p.a. 5 Yr p.a. 10 Yr p.a Performance 0.9% 11.9% 21.1% 9.1% 4.9% MSCI AC World Free AUD 2.4% 15.2% 19.3% 9.5% 4.9% Excess Return -1.5% -3.3% 1.7% -0.4% 0.0% Franking Analysis 3 Month 1 Year 3 Yr p.a. 5 Yr p.a. 10 Yr p.a Franking Benefit 0.0% 0.9% 1.0% 0.9% 1.0% Bm Franking Return 0.0% 0.0% 0.0% 0.0% 0.0% Franking Excess 0.0% 0.9% 1.0% 0.9% 1.0% Share Price and NTA Holdings at a Glance TEMPLETON GLOBAL GROWTH TGG Top Holdings as at 30 June 2014 (incl cash) Country 1 Samsung Electronics South Korea 2 Microsoft Corporation US 3 Glaxosmithkline UK 4 Amgen Inc US 5 Sanofi SA France 6 Roche Holdings Switzerland 7 Comcast Corporation US 8 Pfizer Inc US 9 Suntory Beverage & Food Ltd Japan 10 NA - Source: IRESS, Company Reports Please refer to important information, disclosures and qualifications at the end of this material. 39

40 Share Price Relative to Benchmark Risk Analysis & Risk-Adjusted Return Risk - Security 1 Year 3 Year 5 Year 10 Year Volatility 14.3% 16.5% 15.6% 18.2% Benchmark Volatility 7.7% 8.7% 9.3% 11.1% Beta to MSCI AC World Beta to MSCI World Beta to ASX Risk - Underlying 1 Year 3 Year 5 Year 10 Year NTA Volatility 9.0% 11.4% 11.8% 13.4% Tracking Error 3.2% 4.4% 4.6% 6.5% Skewness of Excess Downside Volatility 6.7% 5.6% 5.6% 8.5% Risk Adjusted Return 1 Year 3 Year 5 Year 10 Year Information Ratio Sharpe Ratio Sortino Ratio Source: Factset, Bloomberg Please refer to important information, disclosures and qualifications at the end of this material. 40

41 Market Snapshot Current Price, as of 25/09/14 $ 2.00 August End: Pre-Tax NTA $ 1.87 August End: Post-Tax NTA $ 1.81 Beta-Implied NTA Estimate $ 1.85 Current Premium to NTA Estimate 8.0% Trailing 12 Month Dividend Yield 6.6% Last 12 Month Capital Gain 3.6% Beta (3 Year Rolling) to ASX Market Capitalisation (A$bn) Month Rolling Volume Traded (mn) Month Rolling Value Traded (A$mn) 19.9 MSWM Quant Rating: Underweight WAM Capital Ltd (WAM) Key Information Universe: Australian Equities MER: 1.00% Style: Industrials, Mid/Small, Variable Beta Performance Fees: 20% above ASX All Ordinaries Index Manager: Wilson Asset Management Pty Ltd Benchmark: ASX 300 Industrials Listed Date: 12 August 1999 Balance Date: 30 June WAM Capital provides investors exposure to a listed investment company with an actively managed diversified portfolio of undervalued growth companies. These are primarily found in the small to mid-cap industrial sector. WAM Also provides exposure to relative value arbitrage and market mispricing opportunities. The investment objectives are to deliver investors a rising stream of fully franked dividends, to provide capital growth and preserve capital. Performance: As at 31 August 2014 Security Total Return 3 Month 1 Year 3 Yr p.a. 5 Yr p.a. 10 Yr p.a Net Performance 7.3% 19.7% 19.4% 18.0% 10.9% ASX 300 Industrials 3.8% 16.3% 21.4% 12.6% 9.4% Excess Return 3.5% 3.4% -1.9% 5.4% 1.6% Gross Performance 7.3% 22.9% 22.8% 21.0% 14.0% ASX 300 Industrials 4.1% 18.1% 23.6% 14.6% 11.1% Excess Return 3.2% 4.8% -0.8% 6.4% 2.9% Performance: Poor The LIC s NTA performance has been disappointing relative to the benchmark and domestic peers. Value: Poor WAM is trading at a significant premium to NTA and its value score remains low. Holdings at a Glance WAM CAPITAL LTD WAM Top Holdings as at 31 August 2014 (incl cash) % of Portfolio 1 CBA Perpetual PERLS IV 3.0% 2 Slater and Gordon Holdings 2.3% 3 Century Australia Investments 2.2% 4 Veda Group Ltd 2.2% 5 Hunter Hall Global Value Limited 1.8% 6 Macquarie Atlas Roads 1.7% 7 Westpac Preferred SPSII 1.6% 8 Greencross Ltd 1.6% 9 CSG Limited 1.5% 10 Automotive Holdings 1.5% Source: IRESS, Company Reports Note: 30.7% allocation to Cash and Fixed Interest NTA Performance 3 Month 1 Year 3 Yr p.a. 5 Yr p.a. 10 Yr p.a Performance 4.4% 11.7% 12.8% 10.4% 10.2% ASX 300 Industrials 3.8% 16.3% 21.4% 12.6% 9.4% Excess Return 0.6% -4.6% -8.5% -2.1% 0.9% Franking Analysis 3 Month 1 Year 3 Yr p.a. 5 Yr p.a. 10 Yr p.a Franking Benefit 0.0% 2.7% 2.9% 2.5% 2.8% Bm Franking Return 0.3% 1.5% 1.9% 1.8% 1.6% Franking Excess -0.3% 1.4% 1.2% 0.9% 1.3% Share Price and NTA Please refer to important information, disclosures and qualifications at the end of this material. 41

42 Share Price Relative to Benchmark Risk Analysis & Risk Adjusted Return Risk - Security 1 Year 3 Year 5 Year 10 Year Volatility 9.3% 9.6% 11.6% 18.8% Benchmark Volatility 8.1% 10.9% 11.6% 13.6% Beta to ASX Beta to Resources Beta to Industrials Risk - Underlying 1 Year 3 Year 5 Year 10 Year NTA Volatility 6.0% 7.6% 7.9% 10.7% Tracking Error 5.6% 9.4% 9.2% 10.6% Skewness of Excess Downside Volatility 1.5% 3.6% 3.9% 7.8% Risk Adjusted Return 1 Year 3 Year 5 Year 10 Year Information Ratio Sharpe Ratio Sortino Ratio Source: Factset, Bloomberg Please refer to important information, disclosures and qualifications at the end of this material. 42

43 Market Snapshot Current Price, as of 25/09/14 $ 1.37 August End: Pre-Tax NTA $ 1.08 August End: Post-Tax NTA $ 1.08 Beta-Implied NTA Estimate $ 1.07 Current Premium to NTA Estimate 27.6% Trailing 12 Month Dividend Yield 7.8% Last 12 Month Capital Gain 15.7% Beta (3 Year Rolling) to ASX Market Capitalisation (A$bn) Month Rolling Volume Traded (mn) Month Rolling Value Traded (A$mn) 2.0 MSWM Quant Rating: Neutral WAM Active Ltd (WAA) Key Information Universe: Australian Equities MER: 1.00% Style: Absolute Return Performance Fees: 20% above portfolio high Manager: Wilson Asset Management Group Listed Date: 16 November 2008 Benchmark: ASX All Ordinaries Balance Date: 30 June WAM Active Limited offers investors exposure to an active trading style with the aim of achieving a sound return with a low correlation to traditional markets. The investment objectives are to deliver investors a growing stream of fully franked dividends and to preserve capital in both the short term and long term. Performance: As at 31 August 2014 Security Total Return 3 Month 1 Year 3 Yr p.a. 5 Yr p.a. 10 Yr p.a Net Performance 15.6% 27.2% 22.0% 17.1% ASX All Ordinaries 3.8% 14.4% 13.6% 9.1% Excess Return 11.8% 12.8% 8.3% 8.0% Gross Performance 15.6% 31.3% 26.1% 20.4% ASX All Ordinaries 4.1% 16.0% 15.1% 10.5% Excess Return 11.5% 15.3% 11.0% 9.9% Performance: Neutral NTA performance has been disappointing; however the LIC s performance score is supported by a strong dividend yield. Value: Poor WAM continues to trade at a large premium to NTA both in absolute terms and relative to its historical discount. This divergence between NTA and price has likely been supported by investors search for yield. NTA Performance 3 Month 1 Year 3 Yr p.a. 5 Yr p.a. 10 Yr p.a Performance 1.9% 5.2% 6.9% 5.2% ASX All Ordinaries 3.8% 14.4% 13.6% 9.1% Excess Return -1.9% -9.3% -6.7% -3.9% Franking Analysis 3 Month 1 Year 3 Yr p.a. 5 Yr p.a. 10 Yr p.a Franking Benefit 0.0% 3.2% 3.4% 2.8% Bm Franking Return 0.3% 1.3% 1.3% 1.3% Franking Excess -0.3% 2.2% 2.4% 1.7% Share Price and NTA Holdings at a Glance WAM ACTIVE LTD WAA Top Holdings as at 31 August 2014 (incl cash) % of Portfolio 1 Century Australia Investments 4.5% 2 Hunter Hall Global Value Limited 3.9% 3 CBA Perpetual PERLS IV 3.8% 4 Macquarie Atlas Roads 3.6% 5 Hills Industries 2.8% 6 ING Private Equity Access Ltd 2.7% 7 Genworth Mortgage Insurance Australia Ltd 2.7% 8 Myer Holdings 2.7% 9 Westoz Investment Co 2.4% 10 Harvey Norman 2.2% Source: IRESS, Company Reports Note: 37.7% allocation to Cash and Fixed Interest Please refer to important information, disclosures and qualifications at the end of this material. 43

44 Share Price Relative to Benchmark Risk Analysis & Risk-Adjusted Return Risk - Security 1 Year 3 Year 5 Year 10 Year Volatility 13.3% 10.5% 13.5% Benchmark Volatility 8.3% 11.7% 11.9% Beta to ASX Beta to Resources Beta to Industrials Risk - Underlying 1 Year 3 Year 5 Year 10 Year NTA Volatility 7.7% 6.5% 6.5% Tracking Error 9.5% 10.0% 9.4% Skewness of Excess Downside Volatility 2.2% 2.6% 4.0% Risk Adjusted Return 1 Year 3 Year 5 Year 10 Year Information Ratio Sharpe Ratio Sortino Ratio Source: Factset, Bloomberg Please refer to important information, disclosures and qualifications at the end of this material. 44

45 Market Snapshot Current Price, as of 25/09/14 $ 1.17 August End: Pre-Tax NTA $ 1.11 August End: Post-Tax NTA $ 1.11 Beta-Implied NTA Estimate $ 1.10 Current Premium to NTA Estimate 6.7% Trailing 12 Month Dividend Yield 6.3% Last 12 Month Capital Gain 2.6% Beta (3 Year Rolling) to ASX Market Capitalisation (A$bn) Month Rolling Volume Traded (mn) Month Rolling Value Traded (A$mn) 3.7 MSWM Quant Rating: Neutral WAM Research Ltd (WAX) Key Information Universe: Australian Equities MER: 1.00% Style: Value, Small Cap Long-Only Performance Fees: 20% above ASX All Ordinaries. Manager: Wilson Asset Management Group Benchmark: S&P/ASX 300 Industrials Listed Date: 19 August 2003 Balance Date: 30 June WAM Research Limited is a listed investment company that invests in undervalued growth companies, primarily in the small to medium sized industrial companies listed on the ASX. The investment objectives are to provide a growing stream of fully franked dividends and to achieve a high real rate of return, comprising both income and capital growth, within risk parameters acceptable to the Directors. Performance: As at 31 August 2014 Security Total Return 3 Month 1 Year 3 Yr p.a. 5 Yr p.a. 10 Yr p.a Net Performance 4.0% 12.5% 26.9% 19.0% 9.1% ASX 300 Industrials 3.8% 16.3% 21.4% 12.6% 9.4% Excess Return 0.2% -3.7% 5.6% 6.4% -0.2% Gross Performance 4.0% 15.5% 30.8% 22.8% 12.1% ASX 300 Industrials 4.1% 18.1% 23.6% 14.6% 11.1% Excess Return -0.1% -2.6% 7.2% 8.2% 0.9% Performance: Neutral NTA performance has been weak, however similarly to WAA the LICs score is supported by an attractive dividend yield. Value: Neutral Value remains poor with the LIC trading at a premium to NAV. Discount volatility is also high relative to peers. NTA Performance 3 Month 1 Year 3 Yr p.a. 5 Yr p.a. 10 Yr p.a Performance 4.3% 12.3% 14.4% 11.1% 6.5% ASX 300 Industrials 3.8% 16.3% 21.4% 12.6% 9.4% Excess Return 0.5% -3.9% -7.0% -1.5% -2.9% Franking Analysis 3 Month 1 Year 3 Yr p.a. 5 Yr p.a. 10 Yr p.a Franking Benefit 0.0% 2.6% 3.1% 3.2% 2.7% Bm Franking Return 0.3% 1.5% 1.9% 1.8% 1.6% Franking Excess -0.3% 1.2% 1.6% 1.7% 1.2% Share Price and NTA Holdings at a Glance WAM RESEARCH LTD WAX Top Holdings as at 31 August 2014 (incl cash) % of Portfolio 1 Slater and Gordon Holdings 4.4% 2 Veda Group Ltd 4.3% 3 Greencross Ltd 3.1% 4 CBA Perpetual PERLS IV 3.0% 5 CSG Limited 3.0% 6 Automotive Holdings 3.0% 7 Technology One 2.8% 8 Mantra Group Ltd 2.7% 9 Infomedia Ltd 2.5% 10 Ardent Leisure Group 2.2% Source: IRESS, Company Reports Note: 21.2% allocation to Cash and Fixed Interest Please refer to important information, disclosures and qualifications at the end of this material. 45

46 Share Price Relative to Benchmark Risk Analysis & Risk-Adjusted Return Risk - Security 1 Year 3 Year 5 Year 10 Year Volatility 11.4% 12.6% 13.9% 16.3% Benchmark Volatility 8.1% 10.9% 11.6% 13.6% Beta to ASX Beta to Resources Beta to Industrials Risk - Underlying 1 Year 3 Year 5 Year 10 Year NTA Volatility 4.8% 5.4% 6.0% 8.6% Tracking Error 6.3% 7.6% 7.5% 8.2% Skewness of Excess Downside Volatility 0.9% 2.2% 3.3% 8.3% Source: Factset, Bloomberg Risk Adjusted Return 1 Year 3 Year 5 Year 10 Year Information Ratio Sharpe Ratio Sortino Ratio Please refer to important information, disclosures and qualifications at the end of this material. 46

47 Market Snapshot Current Price, as of 25/09/14 $ 1.16 August End: Pre-Tax NTA $ 1.32 August End: Post-Tax NTA $ 1.31 Beta-Implied NTA Estimate $ 1.29 Current Discount to NTA Estimate 10.3% Trailing 12 Month Dividend Yield 7.7% Last 12 Month Capital Gain -0.9% Beta (3 Year Rolling) to ASX Market Capitalisation (A$bn) Month Rolling Volume Traded (mn) Month Rolling Value Traded (A$mn) 1.6 MSWM Quant Rating: Neutral Westoz Investment Company (WIC) Key Information Universe: Australian Equities MER: 1.00% Style: Small Cap, Variable Beta Performance Fees: 20% of performance>10% over a 12 month period Manager: Westoz Funds Management Pty Ltd Benchmark: ASX Small Ordinaries Listed Date: 16 September 2009 Balance Date: 30 June The investment mandate is to identify undervalued companies listed on the ASX to produce a return. WIC's investment strategy is based on the medium to long-term investment of funds and is consequently not suitable where large non-investment cash flows occur on a regular basis. Although, the Company mainly invests in ASX Listed Securities, from time to time, a portion of the portfolio may be held in short-term cash deposits, and derivatives may be used where considered appropriate. Performance: As at 31 August 2014 Security Total Return 3 Month 1 Year 3 Yr p.a. 5 Yr p.a. 10 Yr p.a Net Performance 1.2% 20.3% 16.6% ASX Small Ordinaries 6.2% 7.5% -0.2% Excess Return -5.0% 12.8% 16.8% Gross Performance 2.7% 24.1% 19.9% ASX Small Ordinaries 6.3% 8.4% 1.5% Excess Return -3.6% 15.7% 18.3% Performance: Neutral NTA performance has deteriorated over the past year, but long term returns remain robust. The dividend yield for this LIC is very attractive; however, high NTA volatility and a focus on the resource sector make this LIC a higher risk option. Value: Good The LIC continues to offer reasonable value trading at a 10.3% discount to NTA. Holdings at a Glance WESTOZ INVESTMENT COMPANY LTD WIC **Top Holdings as at 31 August 2014 (incl cash) % of Portfolio 1 Automotive Holdings 10% 2 Finbar Group 10% 3 Aquila Resources 9% 4 Aurora Oil & Gas Limited 9% 5 Mount Gibson Iron 6% 6 Cedar Woods Properties Limited 6% 7 Medusa Mining 6% 8 Sundance Resources 5% 9 Sandfire Resources 4% 10 Atlas Iron 4% Source: IRESS, Company Reports **Cash allocation of 32% NTA Performance 3 Month 1 Year 3 Yr p.a. 5 Yr p.a. 10 Yr p.a Performance 0.9% 4.9% 4.5% ASX Small Ordinaries 6.2% 7.5% -0.2% Excess Return -5.3% -2.6% 4.7% Franking Analysis 3 Month 1 Year 3 Yr p.a. 5 Yr p.a. 10 Yr p.a Franking Benefit 1.5% 3.1% 2.8% Bm Franking Return 0.1% 0.8% 1.7% Franking Excess 1.5% 2.5% 1.3% Share Price and NTA Please refer to important information, disclosures and qualifications at the end of this material. 47