July 2020 Monthly Report - Australian Eagle Growth High Conviction Equity Portfolio performance 1 Month 3 Month 6 Month 1 Year3 Year 5 Year 7 Year 10 Year Inception p.a. Portfolio 1.49% 12.83% -5.02% 1.90% 14.50% 14.15% 13.07% 11.21% 11.40% Benchmark 0.50% 7.52% -14.59% -9.90% 5.35% 5.01% 6.82% 7.58% 7.00% Out/(under) 0.99%5.31% 9.57% 11.80% 9.15% 9.14% 6.25% 3.63% 4.40% performance Top 3 and bottom 3 performing stocks Market Commentary Top 3: OZ Minerals Ltd (OZL), Fortescue World markets were mixed as outbreaks OZ Minerals upgraded FY20 production Metals Group Ltd (FMG), QBE of COVID-19 cases forced some countries numbers due to a faster than expected Insurance Group Ltd (QBE) to retreat on easing of lockdown ramp up of its Carrapateena mine. Oil measures while global cases approached Search's 4Q20 report showed a 26% fall Bottom 3: AMP Ltd (AMP), Pushpay Holdings Ltd 18m. US tech stocks continued to rally on in revenue from falling oil and gas prices (PPH), Invocare Ltd (IVC) positive earnings despite US-China despite steady production. AMP update tensions resurfacing. The EU announced revealed an outflow of funds due to early Portfolio changes the distribution of its EUR750bn rescue access of super from widespread COVID- Stocks joined or increased: fund to member countries. Chinese 19 job losses. QBE announced growing OZ Minerals Ltd (+0.25%): A multinational low cost manufacturing data continued to insurance premiums and renewal rates copper-gold miner. The Company's new improve as fiscal and monetary stimulus despite increased provisions and claims Carrapateena mine has ramped up production faster helped the economy recover. The oil as a result of COVID-19. Altium than previously anticipated. price fell $1 to US$40 despite Russia announced it had reached its FY20 agreeing to production cuts from OPEC. subscriber target of 50k users. Chorus The iron ore price rose $11 to US$110 as announced a strong recovery in Ultra- Wisr Ltd (+0.25%): A digital consumer finance China continued to deplete its port Fast Broadband connections in May and company. Despite a sluggish operating environment, inventory. The gold price rose to recent June after a slowdown in April from the Company has accelerated its loan book using its highs, ending the month above government restrictions. Treasury Wine new financing warehouse facility, setting up a US$2000/oz as the US dollar weakened. Estates announced its China business is platform for future organic growth. Copper rose 4% to $2.85/lb on strong showing promising signs of recovery Chinese data and supply concerns in offset by its ongoing supply chain issues Chile. The Australian dollar rose 2c to in the US. Cochlear announced it had Stocks removed or reduced: finish at US71c. received FDA approval for 4 new Nil The Australian market ended July slightly products. Lendlease revealed it would higher after a volatile month. The suffer $130-160m in investment unemployment rate rose from 7.1% to valuation reductions in 2H20. 7.4% in June as Victoria experienced a surge in COVID-19 cases. Fortescue achieved record iron ore shipments for Major portfolio exposures were medical FY20 of 178mt with its Eliwana mine devices & services and technology stocks expecting first ore on train at the end of with less portfolio weight in major banks CY20. and retailers. Australian Eagle Portfolio: Top ten holdings Portfolio Commentary Stock 31/07/2020 Positives: Negatives: Commonwealth Bank Ltd 7.25% OZL - The share price rose with the AMP - The share price fell after 1H20 ASX Ltd 6.00% copper price. earnings halved to $140m compared to Cochlear Ltd 6.00% 1H19. CSL Ltd 6.00% FMG - The share price rose after FY20 Fortescue Metals Group Ltd 6.00% iron ore shipments exceeded guidance. PPH - The share price consolidated after OZ Minerals Ltd 6.00% the founders announced a selldown of ResMed Inc 5.75% QBE - Management announced that their stake. Xero Ltd 4.75% insurance premiums increased at double AMP Ltd 4.50% Altium Ltd 4.25% digit rates despite a difficult operating IVC - The share price fell as additional environment. lockdowns restricted the number of attendees at funerals. Disclaimer: This communication is issued by Australian Eagle Asset Management Pty Ltd ABN 89 629 484 840 Corporate Authorised Representative of Alleron Investment Management Pty Ltd AFSL 278856 Suite 301, Level 3, 161 Walker Street, North Sydney NSW 2060. This information does not constitute a recommendation, offer or solicitation to buy or sell any securities. It reflects Australian Eagle's Model Portfolio at the end of the month stated and Australian Eagle's views at the date of preparation. Both the Model Portfolio and Australian Eagle's views are subject to change without notice. Past performance figures are no guarantee of future returns and exclude Australian Eagle's fees. Date of preparation: 04 August 2020.