Morningstar Australian Shares Income Managed Account Portfolio Q22021 Quarterly Performance Update All data and information as at Portfolio Date: 30/06/2021

Top Holdings Equity income portfolio generated a return of 7.9% over the quarter. Overweight exposure to IT and non-banking financials generated significant returns for the portfolio. Iress, Weighting % Whitehaven Coal, and TPG Telecom were the top performing shares in the portfolio over the IRESS Ltd 4.9 quarter, offsetting poor performance by , G8 Education and major banks. Ltd 4.6 Brambles Ltd 4.6 Iress was one of the more recent additions to the portfolio. Iress is a leading technology Cash Account 4.4 company, providing software to the financial services industry. It is our view that the company is of 4.3 a quality business, having dominated the Australian marketplace for around twenty Pendal Group Ltd 4.2 years. Iress has a stable operating profit margin. As the company is asset light, it does not Private Ltd 4.2 require substantial capex and can generate impressive levels of free cash flow. The cash generative nature of the business means that Iress can continue to pay regular and growing Bapcor Ltd 4.2 dividends. Crown Resorts Ltd 4.1 Banking Corp 4.1 Income investing requires a long-term horizon and a diversified set of safe assets. While investors can withstand temporary income and capital declines in falling markets, a longer-term approach will also help investors cope with dividend policies changes as companies either shore up cash on their balance sheet, choose to reinvest or pay down debt. While share markets remain Investment Growth of $10,000 expensive, this portfolio will gravitate towards high-quality shares with a history of sustainable Time Period: 1/08/2001 to 30/06/2021 dividend payouts. When valuations are more favourable, we will consider adding more 70,000.0 aggressively to shares trading at attractive discounts to their estimated intrinsic value.

At this time, the portfolio has a significant bias towards quality, with some 70% of the portfolio 50,000.0 invested in narrow and wide Moat ® rated stocks. The portfolio maintains its Core-Value style bias. 30,000.0

10,000.0

-10,000.0 2003 2006 2009 2012 2015 2018 2021

Portfolio S&P/ASX 200 TR AUD

Returns Relative to Benchmark

As of Date: 30/06/2021 35.0

30.0 26.7 27.8 25.0 20.0 15.0 11.2 9.6 9.6 10.0 7.9 8.3 8.5 6.4 5.4 5.0 3.1 2.3 0.0

Return 1 month 3 month 1 year 3 years p.a5 years p.aSince Incp % p.a

Portfolio S&P/ASX 200 TR AUD Past performance is not a reliable indicator of future performance. Returns over 12 months are annualised.

Notes: 1) Management fees can be negotiated and may be less than the standard management fee. 2) Investment performance is before tax and after the standard management fee of 0.65% (inclusive of GST). Investment performance is shown from 31/08/2001 and represents modelled performance only and assumes income is reinvested. An individual investor's performance will differ from the modelled performance depending on factors such as transaction timing, actual management fees, whether income is paid and any divergence from model portfolio weightings. As of 30/06/2021

Asset Allocation Equity Sectors (GICS)

Portfolio Date: 30/06/2021 Portfolio Date: 30/06/2021 % % Financials 34.8 Stock 95.6 Consumer Discretionary 16.5 Cash 4.4 Industrials 13.7 Energy 10.7 Total 100.0 Information Technology 9.9 Materials 6.9 Communication Services 3.6 Real Estate 2.6 Utilities 1.4 Consumer Staples 0.0 Healthcare 0.0 Total 100.0 Market Performance Risk-Reward

Time Period: Since Inception to 30/06/2021 Time Period: Since Common Inception (1/08/2001) to 30/06/2021

Inv Bmk1 12.0 Up Period Percent 63.18 64.44

Down Period Percent 36.82 35.56 10.0 Best Month 12.79 10.21

Worst Month -23.97 -20.65 8.0 Best Quarter 17.12 21.50 Worst Quarter -28.51 -23.10 6.0

4.0

2.0

0.0 Return 0.0 3.0 6.0 9.0 12.0 15.0

Std Dev Portfolio Morningstar Australia NR AUD As of 30/06/2021

Risk Sector Exposure

Time Period: Since Inception to 30/06/2021 Portfolio Date: 30/06/2021

Inv Bmk1 Consumer Discretionary Return % pa 9.65 8.53 Consumer Staples Std Dev 12.98 13.42 Energy Max Drawdown -46.34 -47.18 Financials Healthcare Industrials Information Technology Materials Real Estate Communication Services Utilities

0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0

Portfolio S&P/ASX 200 TR AUD

Complete List of Holdings

Portfolio Date: 30/06/2021

Franking (%) (est): 63.6% | Div Yield (%): 2.6% Code Style Box Total Ret 3 Mo (Qtr-End) Portfolio Weight %

IRESS Ltd IRE Ë 40.632 4.876 Computershare Ltd CPU Ç 12.367 4.632 Brambles Ltd BXB È 8.129 4.587 Cash Account 0.009 4.367 Commonwealth Bank of Australia CBA È 15.993 4.349 Pendal Group Ltd PDL Ê 26.615 4.190 Medibank Private Ltd MPL Ê 12.857 4.177 Bapcor Ltd BAP Ë 13.485 4.155 Crown Resorts Ltd CWN Ê 1.276 4.149 Westpac Banking Corp WBC È 8.111 4.103 Holdings Ltd AZJ Ê -4.615 3.904 Australia and New Zealand Banking Group Ltd ANZ È 2.378 3.824 G8 Education Ltd GEM Í -2.899 3.808 Whitehaven Coal Ltd WHC Ë 9.915 3.723 Ltd NAB È 3.154 3.716 InvoCare Ltd IVC Î 3.211 3.637 TPG Telecom Ltd TPG È -1.106 3.447 Ltd WPL Ç -7.458 3.408 Ltd ALD Ë 14.908 3.068 Sydney Airport SYD È -6.462 3.051 Group PLC JHG Í 26.053 3.002 SCG Ç -2.837 2.478 Perpetual Ltd PPT Ê 21.400 2.445 Orora Ltd ORA Ê 9.539 2.361 PLC AMC È -0.707 2.284 Platinum Asset Management Ltd PTM Ê -1.800 1.966 Ltd S32 È 4.270 1.958 CIMIC Group Ltd CIM Ê 15.861 1.523 QBE Insurance Group Ltd QBE Ç 12.162 1.511 AGL Energy Ltd AGL Ê -15.026 1.302 As of 30/06/2021

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