Please find attached your quarterly report for the period ended 30 June 2013.

Transcription

1 Responsible Entity Macquarie Private Portfolio Management Limited ABN A Member of Macquarie Group Limited 1 Shelley Street, Sydney NSW 2000 Internet: Telephone: July 2013 Dear, Please find attached your quarterly report for the period ended 30 June Should you have any questions relating to this report then please contact your adviser. Yours sincerely, Liz Wheatley Head of Client Services Macquarie Private Portfolio Management

2 JOHN & JANE SAMPLE MACQUARIE MANAGED PORTFOLIO SERVICE June 2013 Quarterly Report

3 Table of Contents Account Snapshot Report 1 Commentary 2 Portfolio Movement - Summary 9 Portfolio Valuation 10 Investment Transactions 12 Income Summary 14 Cash Transactions 16 Information in this report is provided by Macquarie Private Portfolio Management Limited (ABN ). While the information in this report is given in good faith and is believed to be reliable and accurate, neither Macquarie Private Portfolio Management Limited (ABN ) or any member of the Macquarie Group gives any warranty as to the reliability or accuracy of the information, nor accepts any responsibility for any errors or omissions. Report generated 01/08/2013 8:20 PM

4 Account Snapshot as at 30/06/2013 Asset Allocation Asset Class Market Value ($) Percentage Alternative Assets 22, % Australian Equities 86, % International Equities 68, % Property 20, % Cash 9, % Consolidated Account 207, % Value of your portfolios on 30/06/2013 Portfolio Id Manager Strategy Value ($) Percentage SMAA Macquarie Private Portfolio Mgt Ltd igh Growth 07, % Consolidated Account 207, % Performance Portfolio Id Strategy Inception Quarter to Year to Since Date 30/06/ /06/2013 Inception* SMAA High Gro 28/06/ % 0.78 % 8.65 % p.a. Consolidated Account 4.06 % % 8.65 % p.a. * 'Since Inception' performance is annualised Information in this report is provided by Macquarie Private Portfolio Management Limited (ABN ). While the information in this report is given in good faith and is believed to be reliable and accurate, neither Macquarie Private Portfolio Management Limited (ABN ) or any member of the Macquarie Group gives any warranty as to the reliability or accuracy of the information, nor accepts any responsibility for any errors or omissions. Report generated 01/08/2013 8:19 PM Page 1 of 17

5 Macquarie Managed Portfolio Service June 2013 Quarterly Report Macquarie Private Portfolio Management Limited Australian Financial Services Licence No ARSN MPPM High Growth Table 1: Index returns to 30 June 2013 Market Index 3 months 12 months S&P/ASX200 Accumulation -2.48% 22.75% S&P500 (US) 2.36% 17.92% NASDAQ (US) 4.15% 15.95% FTSE100 (UK) -3.06% 11.57% Nikkei (Japan) 10.32% 51.86% Hang Seng (HK) -6.71% 7.00% MSCI World ex- Australia in $A 15.41% 33.34% S&P/ASX200 Listed Property (A-REITs) 3.34% 24.22% UBS Composite (Bonds) 0.40% 2.78% UBS Bank Bill (Cash) 0.75% 3.28% Source: IRESS Review of Asset Class Returns The Australian sharemarket was weaker during the June quarter, with the S&P/ASX200 Accumulation Index declining by 2.5%. After posting a strong return in April, the market followed its typical seasonal pattern, with equities posting negative monthly returns during May and June. Despite the pullback, the Australian equity market remains 22.8% higher over the past 12 months. US economic data provided a solid backdrop during the quarter, with US housing data continuing on its recovery path. However, this improving outlook led investors to question when the US Federal Reserve (the Fed) may look to wind back some of its asset purchases (known as quantitative easing, or QE3), which have been used to stimulate economic activity. In late June, the Fed Chairman, Ben Bernanke, indicated that QE3 may be wound back later in 2013, subject to an improving economic outlook. These comments drove equity and bond prices simultaneously lower. It also put further downward pressure on commodities and upward pressure on the US dollar. Major global equity markets were mixed, but mostly outperformed the Australian market. The Japanese Nikkei led the way, returning 10.3%. The performance of commodities was generally weak, with most major commodities declining. WTI oil slipped 0.8% during the period while gold fell 22.6%. Bulk commodities such as iron ore and thermal coal were weaker, due to increasing supply levels. Spot iron ore prices ended the quarter down 15.3% at $116/t. Returns from Australian fixed rate bonds were modestly positive during the quarter, with the domestic UBS Composite All Maturities Bond Index returning 0.4%. The Reserve Bank of Australia (RBA) cut the official cash rate to 2.75% in early May, in response to the weakening outlook for mining investment. Returns from Australian Real Estate Investment Trusts (A-REITs) were solid during the quarter at +3.3%, well ahead of the broader equity market. In our view, A- REITs continue to offer relative earnings certainty. The sector is currently trading on a 5.7% expected FY14 yield. The RBA s decision to cut rates put downward pressure on the Australian dollar during the quarter. Additionally, the comments from the Fed saw the Australian dollar depreciate further. The largest move was against the Euro, with the Australian dollar depreciating by 13.6%. Economic Landscape The global business cycle continues to display a highly desynchronised and diverse economic landscape. Developed economies such as the US and Japan are experiencing an economic upswing, while Europe remains in recession. Unusually, Australia s business cycle has de-coupled from the US, due to the slowdown in mining investment expenditure in Australia. Overall, the wide divergences in economic conditions are likely to be reflected in a sub-trend expansion in the global economy over the next 12 months. Page 2 of 17

6 Chart 1: Global business cycle months to March, the economy grew by 1.2%, with stronger exports accounting for 1.1ppts or almost all of that growth. In other words, without the recovery in coal and iron ore exports, the economy would have stalled. Given that the bulk of these commodities are exported to China, the outlook for Chinese growth remains critical for the Australian economy. While we remain confident that the Chinese economy will continue to grow at a solid rate of over 7% per annum, recent manufacturing data suggests that the rate of growth is slowing. Source: Macquarie Economics, June 2013 Chart 3: Chinese Manufacturing Index The key development during the June quarter was the intensification of market expectations for a tapering in QE3 in the US. The QE3 program relates to the $US85 billion a month of bonds currently being purchased by the Fed. The timing and extent of tapering this program is likely to be the most important influence on the immediate outlook for global economic growth and associated capital flows. Macquarie Economics continues to expect tapering of QE3 in late However, we also believe that the Fed is likely to manage a very gradual reduction in the pace of asset purchases, in order to prevent a steep acceleration in bond yields that could prematurely choke off economic growth. Higher borrowing rates and tighter fiscal policy are likely to keep US economic growth contained in the % range in coming quarters. Turning to Australia, the Australian dollar was one of the bigger beneficiaries of the Fed s QE3, and as a result has fallen more sharply against the US dollar relative to other currencies since May. With Australia s economic growth outlook weakening relative to the US, Macquarie Economics now forecasts the Australian dollar to fall to $US0.90 by end of Chart 2: Australian dollar Source: RBA, June 2013 Official growth data released during June indicates that the Australian economy grew by 0.6% during the March quarter and by 2.5% during the past year. This level of growth is disappointing, given that it is sub-trend and has been assisted by net exports. During the six Source: Macquarie Economics, June 2013 In our view, this data should be a signpost for policymakers. Now that mining investment is declining, we believe that the RBA may need to further reduce interest rates, in order to stimulate household expenditure and residential construction. Australian Equities After posting a strong return in April, the Australian sharemarket followed its typical seasonal pattern, with the market posting negative monthly returns during May and June. The S&P/ASX200 Accumulation Index returned 2.5% for the quarter. Despite the pullback, the market remains +22.8% higher during the past 12 months. US economic data provided a solid backdrop during the quarter, with US housing data continuing on its recovery path. However, this improving outlook led investors to question when the Fed may look to wind back some of its stimulus. These concerns drove equities lower and the US dollar higher. The Australian dollar weakened as a result, with the move amplified by profit warnings from several mining service companies. Within the Australian sharemarket, Media (+10.7%), Telecommunications (+6.2%) and Diversified Financials (+6.1%) were the key outperformers. Materials (-11.6%) and Retailing (-5.6%) underperformed. MPPM s Core strategy rose +0.08% during the quarter, outperforming the benchmark by +2.56%. This was despite the continuing drag, relative to benchmark, of the outperforming REIT sector (the strategy is precluded from owning REITs). Page 3 of 17

7 The strategy utilises a top-down and bottom-up process which analyses the macro themes dominating markets and aims to pick the best exposures to those themes on a stock by stock basis. We use MPPM s Quality at a Reasonable Price (QARP) investment philosophy as the basis for stock selection. Our current macro sector positions are shown below, relative to the ASX200 benchmark weights. The strategy has been positioned with an underweight exposure to mining and domestic cyclicals. It holds an overweight exposure to global stocks and domestic defensives, while maintaining a small positive position in income, energy and banks. Sector weight relative to benchmark 4.0% 2.0% 0.0% -2.0% -4.0% -6.0% -8.0% Source: IRESS, MPPM, June 2013 Perhaps even more pleasing than the strategy outperformance for the quarter is the positive contribution from each of the macro sector positions (ex REITs). Sector contribution to performance 1.4% 1.2% 1.0% 0.8% 0.6% 0.4% 0.2% 0.0% -0.2% -0.4% -0.6% structural change in demand for types of housing, this leaves cyclical stocks still subject to extensive restructuring and in our view, a muted growth outlook in FY14. Again we remain underweight. Conversely, the US appears to be recovering and other parts of the developed world are seeing signs of stabilisation. This leaves many Australian companies with global operations looking more attractive. Combined with a weakening Australian dollar, offshore earnings look more attractive and more certain. We hold an overweight position to this thematic. Banks remain a sector offering stable earnings with a good yield and so far little evidence of an increase in bad debts. While banks do not offer significant earnings growth, the sector remains a reliable source of total return, as does Telstra Corporation Limited (TLS) - our exposure to the income macro-factor theme. The exposure to energy is centred on companies with growing supply prospects and good customer relationships. In our view, Oil Search Limited (OSH) has the best return profile of the new liquefied natural gas (LNG) plants and Beach Energy Limited (BPT) has access to large reserves of gas in fields well located to supply Eastern Australia. Stock positions which generated the largest positive relative performance for the quarter included: Newcrest Mining Limited (NCM Mining divested early), Amcor Limited (AMC Global Defensive), Ramsay Health Care Limited (RHC Domestic Defensive), Macquarie Group Limited (MQG Global Cyclical) and Brambles Limited (BXB Global Cyclical). Top and bottom stocks - contribution to performance 0.6% 0.5% 0.4% 0.3% 0.2% 0.1% 0.0% -0.1% -0.2% -0.3% -0.4% Source: IRESS, MPPM, June 2013 Clearly the resources sector continues to be impacted by declining commodity prices and lower activity levels. This leaves many of the mining stocks looking relatively cheap, but with high levels of uncertainty regarding future earnings. We remain underweight. Similarly domestic cyclical stocks would in previous cycles be cheap at this point. However, the low levels of credit growth and continued high savings by households, suggest that a cyclical response to RBA easing will be muted in this cycle. When combined with Source: IRESS, MPPM, June 2013 We sold our position in NCM at the very beginning of the period. The stock price then fell 51%, adding to relative performance. Packaging company, AMC, continues to provide dependable performance from synergies associated with global acquisitions. Hospital operator, RHC, has strong exposures to the growing private hospital sector in Australia. Transport company, BXB, was added to the strategy during the quarter and benefited in the short-term from the weaker Page 4 of 17

8 $A, as well as an improving competitive position in the US. Positions that detracted from relative performance during the quarter included: Orica Limited (ORI Domestic Cyclical), QBE Insurance Group Limited (QBE - Global Cyclical, not held), Westfield Group (WDC REIT, not held), Coca-Cola Amatil Limited (CCL Domestic Defensive) and BPT. Commercial explosives company, ORI, drifted lower during the period, as the growth outlook for the mining industry continued to deteriorate. While ORI maintained earnings guidance, many of its mining services peers downgraded their outlook. Not owning insurance company, QBE, detracted from strategy performance as the stock rallied during the quarter due to favourable macroeconomic conditions and the prospect of higher interest rates. BPT share price fell as a result of uncertain oil prices despite a strong long term position in both oil and gas supply. WDC (not owned) performed well during the quarter, as did the REIT sector overall. As the strategy does not own REITs, this detracted from performance. Finally, CCL reported a forecast earnings downgrade during the quarter - a result of weaker sales through the Australian supermarket channel. We continue to review our positions both at a macro theme level and the stocks chosen to provide exposure to those themes. International Equities Global equity markets entered the June quarter with a tailwind, following the strong March quarter (+7.7%). The market made solid gains during May, peaking on 21 May and then declined for five weeks, before bouncing towards the end of the quarter. Overall, global equities finished broadly flat for the period. The MSCI World Ex-Australia Index (unhedged) returned +15.4% in $A for the June quarter. Comments from the US Federal Reserve Chairman signalled the end of easy monetary policy and investors reduced equities exposures accordingly. Global equity market returns - June 2013 quarter Index 3 months 12 months Japan 10.31% 33.90% India 3.21% -0.23% USA 2.58% 13.34% World 1.74% 11.70% Germany 1.46% 4.36% Europe -0.79% 6.11% Norway -1.36% 3.85% Spain -1.84% -4.84% Portugal -1.89% 0.40% Australia -1.97% 6.47% United Kingdom -2.04% 7.46% Sweden -2.52% 6.61% New Zealand -2.76% 5.74% Asia ex Japan -3.19% -3.25% Emerging Markets -4.42% -4.89% Ireland -4.80% 10.07% China -6.84% % Latin America -8.90% -9.96% Greece % 4.12% Source: MSCI Despite the broader pullback in equities, there was still a wide dispersion in returns across the globe. Japan has been very strong, following the change of government. Policy aimed at rejuvenating Japan s moribund domestic economy has served to inflate liquid asset prices in the short term. Whether the policy is effective in stimulating long term growth remains to be seen. Germany and the US also posted a positive return for the period, after a bounce in the last week of June. The balance of global equity markets can be split into three groups: exposed to resources, European and in recession, and exposed to a rising US dollar. European equity markets reported low returns, but have not collapsed further, given weaker performance during recent quarters. Resource markets (Australia, Latin America, Norway, and Sweden) were generally weaker, reflecting the continuing crunch in commodity prices and the uncertain outlook for materials demand as supply increases. Emerging Asia and China were also weaker, as authorities reigned in monetary policy and the US dollar strength pressured export earnings. Page 5 of 17

9 Overall, the second half of the quarter saw an abrupt reversal of a generally strong market trend. While the world economy goes through an un-synchronised recovery, we expect that there will be occasional sharp downward movements in a generally upward trend for equities. The MPPM international equity strategy returned 14% for the June quarter, underperforming the MSCI World ex Australia Index (+15.4%) by -1.4%. Total return for the benchmark and the strategy was assisted by the 12.3% decline in the $A/$US rate. The contribution of each fund in your portfolio is detailed below. Fund (Net of Fees) 3 mth Analytic Global Low Volatility Equity 8.0 Arrowstreet Global Equity 16.5 MFS Global Equity Trust 14.2 Platinum International 17.9 MSCI World Ex Australia (unhedged) 15.4 MPPM Strategy 14.0 Property The combined property funds underperformed the benchmark for the quarter (the S&P/ASX 200 A-REIT Index). Australian property market comment The A-REIT sector performed very strongly during the first half of the June quarter. However, the sector then succumbed to investor flight from yield based investments during late May. The S&P/ASX 200 A-REIT Accumulation Index finished up +3.3% for the quarter. Despite the mid-quarter pullback, REITs finished well ahead of the broader Australian equity markets return. Features of the period were: continued strong interest from international investors in physical property, increased acquisition activity by the REITs, as they take advantage of their now much stronger balance sheets, further repatriation of funds back to Australian based investments by REITs, and on average an improvement in underlying valuations in the REIT property portfolios. Early in the quarter, REITS reached a small premium to fair value. However, it has since returned to a moderately valued position. REITs are trading at a yield premium to bonds and a discount to valuations. Given the current valuations, we expect a moderately positive return from the sector for the balance of the calendar year. While many investors anticipate interest rates rises in the US and elsewhere, we feel this is premature. In Australia s case we are likely to see further cuts in the cash rate by the RBA. The slowing economy is likely to ensure that stable cash flows from higher yielding securities, such as REITs, remain attractive. Since the balance sheet stress experienced during 2008, REITs have traversed a lengthy period of recovery, which has seen them perform strongly during the past 18 months. REIT returns remain ahead of the broader Australian equity market for the past 12 months. We do not expect a similar level of outperformance during the coming year, however, in our view, the sector has the capacity to outperform other yield focussed investments Vanguard Australian Property Securities Index Fund The Vanguard Fund (gross 3.23%) outperformed its benchmark the S&P/ASX 300 A-REIT (3.19%) Index for the quarter. RREEF Global (ex-aust) Property Securities Fund The Fund returned -2.72% gross (-2.96% net) for the quarter, outperforming the benchmark by 0.08% gross (underperforming the benchmark by 0.16% net). Overall, regional allocation and stock selection contributed for the quarter. From a regional allocation perspective, the Fund s exposure to Continental Europe, Asia ex Japan and Japan contributed, while the exposure to the Americas was a modest detractor. Stock selection was particularly strong in the Americas, followed by Asia ex Japan and Japan. Meanwhile, selection in Continental Europe and the UK had a minor negative impact. Alternative Assets The combined Alternative Assets Funds underperformed the benchmark (the UBS 90 day Bank Bill index) for the quarter. Winton Global Alpha Fund The commentary for this fund covers the month of June The Winton Global Alpha Fund declined % in June, outperforming the Barclay CTA Index which declined approximately -0.84%. June proved to be a volatile four weeks for the Fund as it recovered from being down more than 2% mid-month. The markets continued to feel panicked with the rise in US yields that started in May continuing at an accelerated pace despite attempts from Federal Reserve officials to reassume market participants. This momentum was not helped by generally positive US economic data and the resulting sell of in asset prices suggests that many market participants were rapidly unwinding their positions. This was particularly so in Japan, where the so-called Abenomics rally came to a definite end. Not surprisingly our long positions across equity and fixed income markets fell in value. These losses were offset to some extent by our short positions in the previous and base metal sectors; copper having fallen Page 6 of 17

10 over 8% in June and gold now trading 25% below where it opened in BlackRock Scientific Global Markets Fund The commentary for this fund covers the month of June The BlackRock Scientific Global Markets Fund experienced a negative return in the second quarter with fund performance of -1.41% (net of fees), underperforming the cash benchmark of 0.71%, bringing the year to date performance to 0.77% (net of fees). The second quarter of 2013 saw a significant shift in market dynamics that was at odds with the investment themes set through the start of the year. Relative equity, commodity and fixed income exposures added value throughout the quarter. Detractions were concentrated in developed and emerging currency exposures. Relative equity and commodities - The relative equity and commodity strategies were profitable in the second quarter. The overweight position in Japanese equities added value as the Japanese market has recovered more than half of its prior drawdown. In addition, the underweight position in Brazilian equities benefitted as the local equity market fell sharply amid a slowing economy and political turmoil. Gains from commodity holdings were mainly driven by agricultural positioning in soy and metals. A late-quarter overweight position in WTI Crude and an underweight position in US gasoline added value due to the continued natural gas sell-off. AQR Wholesale Delta Fund The commentary for this fund covers the month of June Over June, the Wholesale DELTA Fund returned +0.2%, before fees, with three of the nine strategies generating positive contributions to overall Fund returns. Continuing its strong performance over 2013 to date, Equity Market Neutral was the best performing substrategy over June. Returns were largely generated in the US with Japan also making a positive contribution, while returns in Europe were flat over the month. Value themes drove gains in the US, whereas in Japan: growth, quality and defensive themes were profitable. Managed Futures was the weakest sub-strategy over June with losses from equity and currency market trading outweighing positive returns from bond and commodity market positioning. Entering July, Long/Short Equity remains the key overweight strategy. The notable underweight strategies are: Fixed Income Relative Value and Global Macro, due to mixed leading indicators within bond, currency and commodity markets, and Event Driven, which is constrained by the limited availability of M&A deals and other corporate activity. Fixed Income - We were correctly positioned in JGBs for both April and early May, leading to gains in the bond strategy as Japanese bond yields rose from historically low levels. Although these gains were largely held onto, the underweight Japanese bond position was pared back. With economic headwinds mounting across much of the Eurozone, growing expectations of ECB monetary easing drove gains in the long European short rates position. Emerging market currency sell-off - Increasing concern of a China/Emerging Market (EM) growth slowdown together with the prospects of a normalization of Fed monetary policy led to a sharp and broad sell-off of EM assets in May/June. The strategy was impacted via both currencies and equities. Overweight positions in higher growth currencies (e.g. Brazilian real and Indian rupee) detracted notably as they sold off more than the underweight positions in lower growth currencies (e.g. Czech koruna). EM equity positioning for much of 2013 had been value-driven, as increasingly attractive valuations drove an overweight EM/underweight Developed Market exposure. Towards the end of the quarter, as EM liquidations accelerated, these exposures led to further losses Blackrock Asset Allocation Alpha Fund As a result of the termination of the Blackrock Asset Allocation Alpha Fund in February, MPPM has reviewed substitutes and decided to reinvest the proceeds into the AQR Wholesale Delta Fund. Page 7 of 17

11 Disclaimer: Macquarie Group. This document has been issued and distributed in Australia, by Macquarie Private Portfolio Management Limited ABN , AFSL ( MPPM ). We accept no obligation to correct or update the information or opinions in it. Opinions expressed are subject to change without notice. This information does not take into account your objectives, financial situation or needs. Before acting on this information, you should consider whether it is appropriate to your situation. We recommend that you obtain financial, legal and taxation advice before making any financial investment decision. Investments in the Macquarie Managed Portfolio Service are not deposits or liabilities of Macquarie Bank Limited ABN or of any member of the Macquarie Group and are subject to investment risk, including possible delays in repayment and loss of income or principal invested. Neither Macquarie Bank Limited, MPPM nor any other member company of the Macquarie Group guarantees the performance of the MPS or the repayment of capital from the MPS or any particular rate of return. Page 8 of 17

12 Portfolio Movement - Summary From 01/04/2013 to 30/06/2013 Portfolio value as at 01/04/2013 ($) 199, Plus Income received Plus change in accrued income 2, Realised gains (1) Change in unrealised gains / losses 8, Contributions 1.14 Less Fees (811.13) Realised losses (1) (3,199.26) Withdrawals 0.00 Adjustments (2) 0.00 Summary of total movement ($) 8, Portfolio value as at 30/06/2013 ($) 207, Notes: (1) Gains/losses shown are nominal, that is, do not include any discounting for tax purposes. (2) Adjustments: these arise where a transaction generates a reporting amount that differs from the cash amount. For example, where a share buy back has a price for CGT purposes that is different from the cash price received. Information in this report is provided by Macquarie Private Portfolio Management Limited (ABN ). While the information in this report is given in good faith and is believed to be reliable and accurate, neither Macquarie Private Portfolio Management Limited (ABN ) or any member of the Macquarie Group gives any warranty as to the reliability or accuracy of the information, nor accepts any responsibility for any errors or omissions. Report generated 01/08/2013 7:50 PM Page 9 of 17

13 Portfolio Valuation - Book Cost as at 30/06/2013 Asset Asset Name Quantity Average Unit Cost ($) Book Cost ($) (1) Current Market Accruals ($) Unsettled Amount ($) Current Market Value ($) Portfolio Asset (%) Class (%) Unrealised Gain/Loss ($) Alternative Assets BGL0045A BLACKROCK SCIENTIFIC GLOBAL MARKETS 8, , , (750.40) MAQ0482A WINTON GLOBAL ALPHA FUND 6, , , (292.24) PER0554A AQR WHOLESALE DELTA FUND 8, , , (48.78) Total Alternative Assets 23, , (1,091.42) Australian Equities AMC AMCOR LIMITED , , ANZ ANZ BANKING GROUP LIMITED , , , BHP BHP BILLITON LIMITED , , (2,313.96) BPT BEACH ENERGY LIMITED (192.58) BXB BRAMBLES LIMITED , , CBA COMMONWEALTH BANK OF AUSTRALIA , , , CCL COCA COLA AMATIL LIMITED , , CPU COMPUTERSHARE LIMITED , , CRZ CARSALES.COM LIMITED , CSL CSL LIMITED , , , CWN CROWN LIMITED , , DLX DULUXGROUP LIMITED , , JHX JAMES HARDIE INDUSTRIES PLC , , MQG MACQUARIE GROUP LIMITED , , ORG ORIGIN ENERGY LIMITED , , (125.35) ORI ORICA LIMITED , , (567.68) OSH OIL SEARCH LIMITED , , RHC RAMSAY HEALTH CARE LIMITED , , , RIO RIO TINTO LIMITED , , (784.83) SAI SAI GLOBAL LIMITED , (307.59) SUL SUPER RETAIL GROUP LIMITED , TCL TRANSURBAN GROUP , , TLS TELSTRA CORPORATION LIMITED 1, , , , WBC WESTPAC BANKING CORPORATION , , , WES WESFARMERS LIMITED , , , Information in this report is provided by Macquarie Private Portfolio Management Limited (ABN ). While the information in this report is given in good faith and is believed to be reliable and accurate, neither Macquarie Private Portfolio Management Limited (ABN ) or any member of the Macquarie Group gives any warranty as to the reliability or accuracy of the information, nor accepts any responsibility for any errors or omissions. Report generated 01/08/2013 7:51 PM Page 10 of 17

14 Asset Asset Name Quantity Average Unit Cost ($) Book Cost ($) (1) Current Market Accruals ($) Unsettled Amount ($) Current Market Value ($) Portfolio Asset (%) Class (%) Unrealised Gain/Loss ($) Total Australian Equities 74, , , International Equities MAQ0464A ARROWSTREET GLOBAL EQUITY FUND 15, , , , MAQ0796A ANALYTIC GLOBAL MANAGED VOLATILITY 14, , , MIA0001A MFS GLOBAL EQUITY TRUST 12, , , , PLA0002A PLATINUM INTERNATIONAL FUND 10, , , , Total International Equities 57, , , , Property MGL0010A RREEF GLOBAL (EX AUST) PROPERTY 5, , , VAN0004A VANGUARD PROPERTY SECURITIES 23, , , , Total Property 17, , , Cash AUD INCOME DUE 3, , , AUD AUD2SMAA1340 5, , , Total Cash 9, , Total Portfolio 181, , , , Notes: 1. Book Cost: For individual securities, book cost is the initial outlay less any capital returns. The total figure is the aggregate cost price of all currently held securities, including accruals for cash. Note that this does not represent your initial investment. 2. Managed fund prices are the most recent provided by the fund manager, and may not be up to date. 3. Unrealised Gain/Loss: uses nominal gain/loss, does not include any discounting for tax purposes. Information in this report is provided by Macquarie Private Portfolio Management Limited (ABN ). While the information in this report is given in good faith and is believed to be reliable and accurate, neither Macquarie Private Portfolio Management Limited (ABN ) or any member of the Macquarie Group gives any warranty as to the reliability or accuracy of the information, nor accepts any responsibility for any errors or omissions. Report generated 01/08/2013 7:51 PM Page 11 of 17

15 Investment Transactions From 01/04/2013 to 30/06/2013 Portfolio Code Trade Date Asset Asset Name Transaction Description Quantity Price ($) Consideration ($) Brokerage ($) GST ($) Net Cost ($) Net Proceeds ($) Transfer Value ($) Settled Settle Date Opening Balance 267 SMAA 18/04/2013 ANZ ANZ BANKING GROUP LIMITED Buy Equities , , Yes 23/04/2013 Closing Balance 302 Opening Balance 288 SMAA 18/04/2013 BHP BHP BILLITON LIMITED Sell Equities Yes 23/04/2013 Closing Balance 268 Opening Balance 0 SMAA 08/05/2013 BXB BRAMBLES LIMITED Buy Equities , , Yes 13/05/2013 SMAA 23/05/2013 BXB BRAMBLES LIMITED Buy Equities , , Yes 28/05/2013 Closing Balance 325 Opening Balance 7, SMAA 17/05/2013 MAL0030A BLACKROCK ASSET ALLOCATION ALPHA Managed Fund Redemption Conf 7, , , Yes 17/05/2013 Closing Balance 0 Opening Balance 13, SMAA 20/05/2013 MIA0001AU MFS GLOBAL EQUITY TRUST Managed Fund Redemption Conf 1, , , Yes 24/05/2013 Closing Balance 12, Opening Balance 84 SMAA 04/04/2013 NCM NEWCREST MINING LIMITED Sell Equities Yes 09/04/2013 SMAA 05/04/2013 NCM NEWCREST MINING LIMITED Sell Equities , , Yes 10/04/2013 Closing Balance 0 Opening Balance 133 SMAA 04/04/2013 ORG ORIGIN ENERGY LIMITED Sell Equities Yes 09/04/2013 Closing Balance 82 Opening Balance 0 SMAA 24/05/2013 PER0554AU AQR WHOLESALE DELTA FUND Managed Fund Application Conf 8, , , Yes 24/05/2013 Closing Balance 8, Opening Balance 46 SMAA 18/04/2013 RIO RIO TINTO LIMITED Sell Equities Yes 23/04/2013 Closing Balance 33 Opening Balance 313 SMAA 18/04/2013 WBC WESTPAC BANKING CORPORATION Buy Equities Yes 23/04/2013 Closing Balance 340 Opening Balance 68 SMAA 18/04/2013 WOR WORLEYPARSONS LIMITED Sell Equities Yes 23/04/2013 SMAA 16/05/2013 WOR WORLEYPARSONS LIMITED Sell Equities Yes 21/05/2013 SMAA 17/05/2013 WOR WORLEYPARSONS LIMITED Sell Equities Yes 22/05/2013 Closing Balance 0 Totals 27, , , Information in this report is provided by Macquarie Private Portfolio Management Limited (ABN ). While the information in this report is given in good faith and is believed to be reliable and accurate, neither Macquarie Private Portfolio Management Limited (ABN ) or any member of the Macquarie Group gives any warranty as to the reliability or accuracy of the information, nor accepts any responsibility for any errors or omissions. Report generated 01/08/2013 7:51 PM Page 12 of 17

16 Portfolio Code Trade Date Asset Asset Name Transaction Description Quantity Price ($) Consideration ($) Brokerage ($) GST ($) Net Cost ($) Net Proceeds ($) Transfer Value ($) Settled Settle Date Notes: - Transfer Value: the close-of-day market value of transferred assets as of the effective date of transfer. Information in this report is provided by Macquarie Private Portfolio Management Limited (ABN ). While the information in this report is given in good faith and is believed to be reliable and accurate, neither Macquarie Private Portfolio Management Limited (ABN ) or any member of the Macquarie Group gives any warranty as to the reliability or accuracy of the information, nor accepts any responsibility for any errors or omissions. Report generated 01/08/2013 7:51 PM Page 13 of 17

17 Income Summary - by Accrual Date (1) From 01/04/2013 to 30/06/2013 Transaction Details Components (6) (7) Tax Credits Asset Code Asset Name Ex Date (2) Payment Date (3) Receipt Date (4) Amount ($) (5) Domestic Income ($) Foreign Income ($) (8) Tax Withheld ($) (9) Imputation Credits ($) (10) Foreign Tax Credits ($) Alternative Assets BGL0045A BLACKROCK SCIENTIFIC GLOBAL MARKETS 28/06/ /07/ MAL0030A BLACKROCK ASSET ALLOCATION ALPHA FUND 30/04/ /05/ /05/ MAQ0482 WINTON GLOBAL ALPHA FUND 28/06/ /07/ PER0554A AQR WHOLESALE DELTA FUND 28/06/ /07/ Australian Equities Sub total ANZ ANZ BANKING GROUP LIMITED 09/05/ /07/ DLX DULUXGROUP LIMITED 20/05/ /06/ /06/ JHX JAMES HARDIE INDUSTRIES PLC 24/06/ /07/ MQG MACQUARIE GROUP LIMITED 13/05/ /07/ ORI ORICA LIMITED 28/05/ /07/ TCL TRANSURBAN GROUP 24/06/ /08/ WBC WESTPAC BANKING CORPORATION 13/05/ /07/ Cash Sub total AUD Australian Dollar 30/04/ /04/ /04/ AUD Australian Dollar 31/05/ /05/ /05/ AUD Australian Dollar 30/06/ /06/ /06/ International Equities Sub total MAQ0464 ARROWSTREET GLOBAL EQUITY FUND 28/06/ /07/ MAQ0796 ANALYTIC GLOBAL MANAGED VOLATILITY FUND 28/06/ /07/ MIA0001A MFS GLOBAL EQUITY TRUST 28/06/ /07/ PLA0002A PLATINUM INTERNATIONAL FUND 03/04/ /05/ /05/ PLA0002A PLATINUM INTERNATIONAL FUND 28/06/ /07/ Property Sub total 1, , MGL0010A RREEF GLOBAL (EX AUST) PROPERTY 28/06/ /07/ VAN0004A VANGUARD PROPERTY SECURITIES 28/06/ /07/ Sub total Information in this report is provided by Macquarie Private Portfolio Management Limited (ABN ). While the information in this report is given in good faith and is believed to be reliable and accurate, neither Macquarie Private Portfolio Management Limited (ABN ) or any member of the Macquarie Group gives any warranty as to the reliability or accuracy of the information, nor accepts any responsibility for any errors or omissions. Report generated 01/08/2013 7:51 PM Page 14 of 17

18 Transaction Details Asset Code Asset Name Ex Date (2) Payment Date (3) Receipt Date (4) Amount ($) (5) Domestic Income ($) Components (6) (7) Foreign Income ($) (8) Tax Withheld ($) (9) Imputation Credits ($) (10) Tax Credits Foreign Tax Credits ($) Total 3, , Notes: 1. If report is run by Accrual Date - report shows all income accrued within the report period by Payment Date - shows all income paid within the report period by Taxation Date - shows the estimated income that may be considered for a tax return for the report period 2. Ex Date is the accrual date (i.e. contract or declared date of the dividend or distribution) 3. Payment Date is the date the dividend or distribution was paid by the issuer 4. Receipt Date is the date the dividend or distribution was received, banked or cleared. Transactions without a Receipt Date are accruals only, so amount details may change when payment is received. 5. Amount = Domestic Income + Foreign Income - Tax Withheld 6. The detailed split of each of the three broad components is shown in the "Income Details" report. 7. Where stapled securities are held, the individual securities that form them are separate CGT assets, and as such, the components of their distributions need to be apportioned between these individual securities. In this report, the income components for stapled securities have only been separately allocated to the extent that they fall within the correct financial year. We advise that you seek independent taxation advice as to the method of apportionment of the CGT components to the underlying stapled entities. 8. Foreign Income is shown in Australian Dollars. 9. Foreign Withholding Tax amounts shown in this column are not included in the 'Amount' or 'Foreign Income' columns. For Non Resident investors, we are obliged to withhold tax, upon receipt, of any dividend, distribution, or other income payment. The amount of tax withheld is dependent on the taxation components of the payment. In some cases, the correct taxation components of the payment may not be known at time of receipt, therefore, the amount of tax that has been deducted may be less than, or greater than, the actual amount that should have been deducted, had the correct taxation components of the payment been known. We advise that you seek independent taxation advice as to whether the correct amount of tax has been withheld, and in turn, whether you are eligible to apply for a refund of withholding tax, or whether you are required to remit additional tax to the relevant body. 10. The Holding Period Rule or the Related Payments Rule have not been applied to the Imputation Credits listed in this report. We advise that you seek independent taxation advice as to whether Information in this report is provided by Macquarie Private Portfolio Management Limited (ABN ). While the information in this report is given in good faith and is believed to be reliable and accurate, neither Macquarie Private Portfolio Management Limited (ABN ) or any member of the Macquarie Group gives any warranty as to the reliability or accuracy of the information, nor accepts any responsibility for any errors or omissions. Report generated 01/08/2013 7:51 PM Page 15 of 17

19 Transactions Cash Transactions From 01/04/2013 to 30/06/2013 Transaction Transaction Details Debit ($) Credit ($) Balance ($) AUD2SMAA (SMAA 0) 01/04/2013 Opening Balance 5, /04/2013 Dividend for CCL , /04/2013 Dividend for SUL , /04/2013 Dividend for ORG , /04/2013 Dividend for BPT , /04/2013 Dividend for CSL , /04/2013 Dividend for CBA , /04/2013 Settle Sell 23 of NCM at , /04/2013 Settle Sell 51 of ORG at , /04/2013 Dividend for OSH , /04/2013 Settle Sell 61 of NCM at , , /04/2013 Management Fee (268.23) 7, /04/2013 Dividend for CRZ , /04/2013 Dividend for VAN0004A , /04/2013 Dividend for RIO , /04/2013 Dividend for NCM , /04/2013 Dividend for CWN , /04/2013 Dividend for MGL0010A , /04/2013 Manager Rebate MAQ0464AU , /04/2013 Settle Buy 35 of ANZ at (1,018.61) 6, /04/2013 Settle Sell 20 of BHP at , /04/2013 Settle Sell 13 of RIO at , /04/2013 Settle Buy 27 of WBC at (861.37) 7, /04/2013 Settle Sell 20 of WOR at , /04/2013 Interest for AUD , /05/2013 Management Fee (260.80) 7, /05/2013 Dividend for PLA0002A , /05/2013 Settle Buy 217 of BXB at 8.82 (1,913.20) 5, /05/2013 Dividend for MAL0030A , /05/2013 Settle Sell 7, of MAL0030A at , , /05/2013 Settle Sell 24 of WOR at , /05/2013 Settle Sell 24 of WOR at , /05/2013 Manager Rebate MGL0010AU , /05/2013 Managed Funds Application Order PER0554A (8,518.00) 4, /05/2013 Settle Sell 1, of MIA0001A at , , Information in this report is provided by Macquarie Private Portfolio Management Limited (ABN ). While the information in this report is given in good faith and is believed to be reliable and accurate, neither Macquarie Private Portfolio Management Limited (ABN ) or any member of the Macquarie Group gives any warranty as to the reliability or accuracy of the information, nor accepts any responsibility for any errors or omissions. Report generated 01/08/2013 7:52 PM Page 16 of 17

20 Transactions Transaction Transaction Details Debit ($) Credit ($) Balance ($) 28/05/2013 Settle Buy 108 of BXB at 9.42 (1,017.20) 5, /05/2013 Interest for AUD , /06/2013 Management Fee (282.10) 5, /06/2013 Dividend for DLX , /06/2013 Interest for AUD , Opening Balance - Debits + Credits Closing Balance 5, (14,139.51) 14, , Information in this report is provided by Macquarie Private Portfolio Management Limited (ABN ). While the information in this report is given in good faith and is believed to be reliable and accurate, neither Macquarie Private Portfolio Management Limited (ABN ) or any member of the Macquarie Group gives any warranty as to the reliability or accuracy of the information, nor accepts any responsibility for any errors or omissions. Report generated 01/08/2013 7:52 PM Page 17 of 17