Smhl Series Securitisation Fund 2016-1

SMHL SERIES SECURITISATION FUND 2016-1

Monthly Investment Report as at 26 August 2021

Contact: Investor Reporting Phone: +61 3 9708 3113 Email: [email protected] Website: mebank.com.au

Bloomberg Screen: SMHL

Summary

Fund: SMHL Series Securitisation Fund 2016-1 Cut-Off Date: 19 August 2021 Payment Date: 26 August 2021 Issuer: Perpetual Limited as trustee for SMHL Series Securitisation Fund 2016-1 Joint Lead Managers: Westpac Banking Corporation (ABN 33 007 457 141) Macquarie Bank Limited (ABN 46 008 583 542) Commonwealth Bank of Australia (ABN 48 123 123 124) National Australia Bank Limited (ABN 12 004 044 937) Arranger: National Australia Bank Limited (ABN 12 004 044 937) Trust Manager: Members Equity Bank Limited (ABN 56 070 887 679) (“ME”) Security Trustee: Perpetual Trustee Company Limited (ABN 42 000 001 007) Liquidity Facility Provider: Members Equity Bank Limited (ABN 56 070 887 679) (“ME”) Redraw Facility Provider: Members Equity Bank Limited (ABN 56 070 887 679) (“ME”) Interest Rate Swap Provider: Australia and New Zealand Banking Group Limited National Australia Bank Limited (ABN 12 004 044 937) Issue Date: 24 October 2016 Legal Final Maturity Date: April 2048

Security Classes

Class Name : A1 A2 B C D E

ISIN: AU3FN0032785 AU3FN0032793 AU3FN0032801 AU3FN0032819 AU3FN0032827 AU3FN0032835 Rating Agency: S&P / Moody's S&P S&P S&P S&P Rating: AAA(sf) / Aaa(sf) AAA(sf) AA(sf) A(sf) BBB(sf) NR Currency: AUD AUD AUD AUD AUD AUD Original Balance at Issue: 1,380,000,000.00 46,500,000.00 43,500,000.00 18,000,000.00 4,500,000.00 7,500,000.00 Base Rate: 1 month BBSW 1 month BBSW 1 month BBSW 1 month BBSW 1 month BBSW 1 month BBSW Margin above base rate: 1.18% 1.75% 2.50% 3.15% 4.15% 6.15% Expected Average Life to call: 2.7 years 2.7 years 5.6 years 5.6 years 5.6 years 5.6 years Distribution Frequency: Monthly Monthly Monthly Monthly Monthly Monthly Coupon Type: Floating Floating Floating Floating Floating Floating Principal payment type: Pass Through Pass Through Pass Through Pass Through Pass Through Pass Through

Bond Factors as at 26 August 2021

Fund: 0.15536417 Class D Class A1 0.14185376 0.8% Class A2 0.14185376 Class B 0.41757654 Class A1 Class C 0.41757654 85.1% Class D 0.41757654 Class E 0.41757654 Class C 3.3%

Class B 7.9%

Class A2 2.9%

Page 1 Portfolio Structure

Current Interest Amt Coupon Rate Opening Balance Principal Pass- Closing Balance 26 July 2021 26 July 2021 Through 26 August 2021 26 August 2021

Class A1 207,978,544.76 12,220,362 195,758,182.66 210,854.35 1.194% Class A2 7,007,972.70 411,773 6,596,199.63 10,497.50 1.764% Class B 19,298,517.97 1,133,938 18,164,579.47 41,200.86 2.514% Class C 7,985,593.64 469,216 7,516,377.71 21,457.12 3.164% Class D 1,996,398.41 117,304 1,879,094.43 7,059.85 4.164% Class E 3,327,330.68 195,507 3,131,824.05 17,418.32 6.164%

Total Portfolio 247,594,358 14,548,100 233,046,258 308,488 0.0137%

European CRR invested amount (as per Article 405) $ 17,950,344.61

Pool Details

Number of Loans 2,985 Average Loan Size 78,072 Maximum Loan Size 760,640 Weighted Average LVR 49.54% Maximum LVR 114.38% WA Seeding (months) 133 WA Term to Maturity (years) 18 Full Documentation Loans 100.00% WA Interest Rate 3.93%

Principal Collections & Prepayment Analysis

Monthly Quarterly Since inception 19 July 2021 to 21 June 2021 to 24 October 2016 to Repayment Analysis 19 August 2021 19 August 2021 19 August 2021

Balance @ Determination Date 247,594,358 273,453,240 1,500,000,000 Substitution - - - Bond uplift / Redemption - - - Scheduled Repayments (1,027,382) (3,207,961) (148,594,004) Prepayments (15,962,539) (44,618,598) (1,356,273,177) Redraw Advances 2,441,820 7,419,577 237,913,438

Closing Balance 233,046,258 233,046,258 233,046,258

CPR* 49.17% 44.57% 28.26% SMM 5.48% 4.80% 2.73%

30%

25%

20%

15%

10%

CPR Average CPR

Page 2 Current Position

Geographical Location Geographical Location VIC - Metro 49,442,917 21% - Non Metro 13,561,559 6% NSW - Metro 24,003,172 10% - Non Metro 18,133,354 8% QLD - Metro 9% 21,899,077 5% - Non Metro 15,254,732 7% 1% VIC SA - Metro 10,512,939 5% 27% NSW 19% - Non Metro 340,583 0% ACT WA - Metro 41,192,960 18% QLD

5% SA - Non Metro 2,549,693 1% WA TAS - Metro 7,387,181 3% - Non Metro 5,169,528 2% 17% NT 16% NT - Metro 2,186,968 1% TAS - Non Metro - 0% 9% ACT - Metro 21,411,597 9% - Non Metro - 0%

TOTAL 233,046,258 100% Loan Security 2 1 Loan Purpose House 196,399,868 85% Refinance 66,807,772 29% Land 26,243 0% Renovation 4,617,091 2% Apartment 5,373,657 2% Purchase 88,067,572 37% Unit 26,477,912 11% Construction 9,420,153 4% Townhouse 4,613,091 2% Other 64,133,670 28% Other 155,486 0% TOTAL 233,046,258 100% TOTAL 233,046,258 100% Interest Option Loan Term Variable 220,979,633 95% <=5 yrs 36,822 0% Fixed <3 years 12,066,625 5% >5 & <=10yrs 1,120,692 0% Fixed >3 years - 0% >10 & <=15yrs 10,151,137 4% >15 & <=20yrs 12,674,133 5% TOTAL 233,046,258 100% >20 & <=25yrs 39,483,578 17% >25yrs 169,579,896 74% Mortgage Insurance Genworth Financial 138,533,155 59% TOTAL 233,046,258 100% HLIC Govt - 0% Uninsured 94,513,103 41% 1 Owner/Investment split QBE - 0% Owner Occupied 177,193,207 76% TOTAL 233,046,258 100% Investment 55,853,051 24% Loan Size TOTAL 233,046,258 100% >$250,000 76,917,013 34% >$200,000 & <$250,000 32,904,815 14% Interest Rate Exposure >$150,000 & <$200,000 33,358,410 14% > 8.00% - 0% >$100,000 & <$150,000 37,710,623 16% > 7.00% & <= 8.00% - 0% >$50,000 & <$100,000 32,898,395 14% > 6.00% & <= 7.00% - 0% <= $50,000 19,257,001 8% > 5.00% & <= 6.00% 21,458,357 9% <= 5.00% 211,587,900 91% TOTAL 233,046,258 100%

TOTAL 233,046,258 100%

Loan to Value Ratio Loan to Value Ratio >95% 1,419,814 1% $40,000 >90% & <= 95% 1,157,971 0% >85% & <= 90% 3,346,589 1% $35,000 >80% & <= 85% 7,065,569 3% $30,000 >75% & <= 80% 11,402,613 5% >70% & <= 75% 21,560,877 9% Thousands $25,000 >65% & <= 70% 18,447,927 8% $20,000 >60% & <= 65% 19,319,743 8% $15,000 >55% & <= 60% 20,090,195 9% >50% & <= 55% 17,554,461 8% $10,000 >45% & <= 50% 14,823,762 6% $5,000 >40% & <= 45% 18,822,269 8% $0 >35% & <= 40% 15,461,422 7% >30% & <= 35% 13,515,222 6% >25% & <= 30% 12,574,996 5% <=25% 36,482,829 16% TOTAL 233,046,258 100%

1 - Due to a recent review of the classification of investor lending, the Bank has now agreed a definition of investor lending wh ich will be applied across all areas of the Bank to undertake reporting, monitoring and analysis. The Bank has decided to move away from the historic “loan security” classification to a “loan purpose” classification. This classification is based upon each customer’s advice to the Bank as to the purpose of the loan, and takes account that customers are unlikely to choose “investment” as an option when it is not the case, given the higher pricing attached to investment loans.

2 - The Bank has also decided to move away from the “Primary Security” classification to a new methodology of determining the main security by using the highest valued security property. This change will drive alignment across the investor reported data and RBA reporting requirements.

This change is effective from 1 March 2016. Feel free to contact Investor Reporting team to discuss the matter.

Page 3 Arrears

30-59 days 19 August 2021 19 July 2021 21 June 2021 Number of loans 5 8 7 Outstanding Balance ($) 718,622 1,388,653 880,517 % of Pool Outstanding Balance 0.31% 0.56% 0.34%

60-89 days Number of loans 5 3 6 Outstanding Balance ($) 1,057,609 490,181 1,140,623 % of Pool Outstanding Balance 0.45% 0.20% 0.44%

90+ days Number of loans 31 35 33 Outstanding Balance ($) 6,707,417 7,771,645 7,371,063 % of Pool Outstanding Balance 2.88% 3.14% 2.86%

TOTAL Delinquencies Number of loans 41 46 46 Outstanding Balance ($) 8,483,647 9,650,479 9,392,203 % of Pool Outstanding Balance 3.64% 3.90% 3.65%

Pool Information Number of loans 2,985 3,085 3,143 Outstanding Balance ($ m) 233 248 258

Repayment Holiday COVID-19

19 August 2021 19 July 2021 21 June 2021 Number of loans 2 0 0 Outstanding Balance ($) 705,243 0 0 % of Pool Outstanding Balance 0.30% 0.00% 0.00%

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Foreclosure & Mortgage Insurance claims since inception

Loan count Amount

Outstanding Balance of Defaulted Loans 1 306,054 . Proceeds of sale 1 268,309

Loss on sale of property 1 39,091

Claims submitted to Insurer 1 39,091

Claims paid by Insurer 1 38,080

Unclaimed 0 0

Pending claim 0 0 1 B Loss covered by Excess spread 0 0 loan, and takes account that customers are unlikely to chooe “investment” as an option when it is not the case, given the hig

Claims Denied by Insurers 0 0 2 across the investor reported data and RBA reporting requirements. Any insured housing loan held by the fund is insured under one of the following: This change is effective from 1 March 2016. Feel free to contact Investor Reporting team to discuss the matter. * master policy with the Commonwealth of Australia dated July 4th, 1994; * master policy with GE Mortgage Insurance Pty Limited (formerly Housing Loans Insurance Corporation Pty Limited (ACN 071 466 334) dated 12 Dec,1997; * master policy with GE Capital Mortgage Insurance Corporation (Australia) Pty Limited (ACN 081 488 440) and GE Mortgage Insurance Pty Limited (ACN 071 466 334) which is effective from October 25,1999.

For further details on the above mortgage Insurance policies reference should be made to the Offering circular and the Transaction Documents. Please note that limitations and exclusions apply with the mortgage Insurance policies, including timely payment cover' for a limited period.

Page 4 Facilities & Reserve

Liquidity Facility

Opening Balance 2,402,233 Liquidity facility drawn during the current month - Repayment of Liquidity Draw for the previous periods Outstanding liquidity draws Reduction in Facility (149,487) Closing Outstanding Balance 2,252,746 -

Redraw Funding Facility Opening Balance - Drawn amount - Closing balance -

Notional Swaps

Notional Swaps Value $ 20,000,000.00 % of fixed rate home loans 165.75%

Neither Members Equity Bank Limited nor any associate of Members Equity Bank Limited (including ME Portfolio Management Limit ed) in any way stands behind the capital value and/or the performance of the Bonds or the assets of SMHL Securitisation Fund 2016-1. Members Equity Bank Limited does not stand behind the obligations of ME Portfolio Management Limited. The Bonds do not represent deposits or other liabilities of Members Equity Bank Limited or associates of Members Equ ity Bank Limited including ME Portfolio Management Limited. Members Equity Bank Limited does not guarantee the payment of interest or the repayment of principal due on the Bond s or the performance of the assets of SMHL Securitisation Fund 2016-1 (except to the limited extent provided in the transaction documents). The holding of the Bonds is subject to investment risk, including possible delays in repayment and loss of income and principal invested.

Current Position - SMHL SERIES SECURITISATION FUND 2016-1 CRD

Geographical Location Geographical Location VIC - Metro 3,101,998 17% - Non Metro 745,531 4% NSW - Metro 1,040,078 6% - Non Metro 870,651 5% QLD - Metro 2,130,550 12% 6% 3% VIC - Non Metro 2,154,222 12% 21% NSW SA - Metro 1,003,702 6% 18% ACT - Non Metro - 0% WA - Metro 2,834,575 16% QLD - Non Metro 466,227 3% 11% SA TAS - Metro 811,970 5% 6% WA - Non Metro 261,205 1% NT NT - Metro 541,240 3% 11% - Non Metro - 0% 24% TAS ACT - Metro 1,988,396 11% - Non Metro - 0%

TOTAL 17,950,344 100% 2 LoanPage Security5 Loan Purpose 1 House 15,856,527 89% Refinance 7,140,056 40% Land - 0% Renovation 16,940 0% Apartment 313,903 2% Purchase 8,309,804 47% Unit 1,520,181 8% Construction 605,470 3% Townhouse 259,732 1% Other 1,878,074 10% Other - 0%

TOTAL 17,950,344 100% TOTAL 17,950,344 100%

Loan Term Interest Option <=5 yrs - 0% Variable 8,066,513 45% >5 & <=10yrs 87,215 0% Fixed <3 years 9,382,644 52% >10 & <=15yrs 379,151 2% Fixed >3 years 501,187 3% >15 & <=20yrs 640,959 4% >20 & <=25yrs 2,475,991 14% TOTAL 17,950,344 100% >25yrs 14,367,028 80% Mortgage Insurance TOTAL 17,950,344 100% Genworth Financial 8,320,751 46% HLIC Govt - 0% Owner/Investment split 1 Uninsured 9,629,592 54% Owner Occupied 13,114,234 73% QBE - 0% Investment 4,836,110 27% TOTAL 17,950,344 100%

TOTAL 17,950,344 100% Loan Size >$250,000 9,494,922 54% Interest Rate Exposure >$200,000 & <$250,000 2,192,575 12% > 8.00% - 0% >$150,000 & <$200,000 1,725,410 10% > 7.00% & <= 8.00% - 0% >$100,000 & <$150,000 1,672,159 9% > 6.00% & <= 7.00% - 0% >$50,000 & <$100,000 1,699,635 9% > 5.00% & <= 6.00% 653,532 4% <= $50,000 1,165,643 6% <= 5.00% 17,296,812 96% TOTAL 17,950,344 100% TOTAL 17,950,344 100%

Loan to Value Ratio Loan to Value Ratio >95% - 0% >90% & <= 95% - 0% $3,000 >85% & <= 90% 703,988 4% $2,500 >80% & <= 85% 1,660,007 9% >75% & <= 80% 1,615,851 9%

Thousands $2,000 >70% & <= 75% 681,794 4% >65% & <= 70% 2,805,453 15% $1,500 >60% & <= 65% 1,548,397 9% >55% & <= 60% 2,457,892 14% $1,000 >50% & <= 55% 600,113 3% >45% & <= 50% 1,341,303 7% $500 >40% & <= 45% 1,004,486 6% >35% & <= 40% 557,214 3% $0 >30% & <= 35% 567,072 3% >25% & <= 30% 632,532 4% <=25% 1,774,242 10% TOTAL 17,950,344 100% Current Position - SMHL SERIES SECURITISATION FUND 2016-1 CRD

TOTAL 17,950,344 100% Loan Security 2 Loan Purpose 1 House 15,856,527 89% Refinance 7,140,056 40% Land - 0% Renovation 16,940 0% Apartment 313,903 2% Purchase 8,309,804 47% Unit 1,520,181 8% Construction 605,470 3% Townhouse 259,732 1% Other 1,878,074 10% Other - 0%

TOTAL 17,950,344 100% TOTAL 17,950,344 100%

Loan to Value Ratio Loan to Value Ratio >95% - 0% >90% & <= 95% - 0% $3,000 >85% & <= 90% 703,988 4% $2,500 >80% & <= 85% 1,660,007 9% >75% & <= 80% 1,615,851 9%

1 - Due to a recent review of the classification of investor lending, the Bank has now agreed a definition of investor lending wh ich will be applied across all areas of the Bank to undertake reporting, monitoring and analysis. The B ank has decided to move away from the historic “loan security” classification to a “loan purpose” classification. This classification is based upon each customer’s advice to the Bank as to the purpose of the loan, and takes account that customers are unlikely to chooe “investment” as an option when it is not the case, given the higher pricing attached to investment loans.

This change is effective from 1 March 2016. Feel free to contact Investor Reporting team to discuss the matter.

Page 6