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Ausbil Investment Ausbil Australian Emerging Management Limited ABN 26 076 316 473 AFSL 229722 Leaders Fund Level 27 225 George Street NSW 2000 Monthly performance update GPO Box 2525 Sydney NSW 2001 May 2021 Phone 61 2 9259 0200 Fax 61 2 9259 0222

‘Markets are riding the strong multi-year outlook Fund Characteristics for earnings driven by the economic growth cycle’ Returns1 as at 31 May 2021 Period Fund Bench- Out/Under Performance Review Return1 mark2 performance Fund performance for May 2021 was +0.57% (net of fees) versus the % % % benchmark return of +0.73%. The benchmark is represented by a 1 month 0.57 0.73 -0.15 composite, 70% of the S&P/ASX MidCap 50 Accumulation Index and 30% 3 months 7.96 8.21 -0.25 of the S&P/ASX Small Ordinaries Accumulation Index. 6 months 18.35 10.16 8.18 At a sector level, the Portfolio’s overweight positions in the Materials, FYTD 42.10 30.42 11.68 Communication Services and Utilities sectors added to relative performance. CYTD 13.98 6.76 7.22 The underweight positions in the Energy, Consumer Staples and Health 1 year 42.64 33.47 9.17 Care sectors also added value. Conversely, the overweight position in the Financials sector detracted from performance. The underweight exposure 2 years pa 16.22 14.60 1.62 to the Industrials, Consumer Discretionary, Information Technology and 3 years pa 8.26 10.59 -2.32 Real Estate sectors also detracted value. 5 years pa 10.45 11.93 -1.48 At a stock level, the overweight positions in Chalice Mines, , Uniti 10 years pa 9.02 9.26 -0.24 Group, ALS, Northern Star Resources, Corporate Travel Management and 15 years pa 7.54 6.67 0.88 contributed to relative performance. The nil positions in Since inception pa 11.35 9.64 1.71 Fisher & Paykel, EML Payments and Appen also added value. Conversely, Date: April 2002 the overweight positions in Zip Co, WiseTech Global, Alumina, Domain Holdings, Betmakers Technology, NextDC, Galaxy Resources, BlueScope Top 10 Stock Holdings Steel and Flight Centre Travel detracted from relative performance. The nil position in also detracted value. Name Fund Index2 Tilt % % % Market Review BlueScope Steel 6.12 2.70 3.42 The market delivered a strong positive month with a return of +0.7% as Bank of 5.51 1.44 4.07 measured by the Blended Benchmark (70% S&P/ASX MidCap 50 and 5.29 1.26 4.03 30% S&P/ASX Small Ordinaries Accumulation Index), building further on Boral 4.96 1.77 3.19 the +6.8% for calendar year 2021. Northern Star Resources 4.72 3.44 1.28 Looking across the sectors, Materials (+3.5%) were the best performer Zip CO 4.16 0.33 3.83 in the Blended Benchmark, reflecting strength in the metals and mining Tabcorp 4.02 2.86 1.15 market. Information Technology (-6.4%) was the worst performer on IGO 4.01 1.29 2.72 the back of a rotation to cyclical earnings in a strengthening economy. Seek 3.76 2.73 1.03 Utilities (-2.6%) were down as the market continued to punish the sector’s exposure to inflation. Domain 3.60 0.14 3.47 In global markets, (S&P/ASX 300: +2.3%) outperformed both global developed markets (MSCI World: +1.6%) and emerging markets Sector Tilts (MSCI EM: +1.1%). World markets also delivered positive returns across Sector Fund Index2 Tilt the board, with India, China and Canada all performing strongly. In the US, % % % while the S&P 500 (+0.7%) was in positive territory, the Nasdaq (-1.3%) Energy 1.73 4.68 -2.95 showed some of the drag in growth stocks. Materials 44.00 25.93 18.07 Outlook Industrials 11.38 14.07 -2.69 Consumer Discretionary 13.98 15.79 -1.81 Markets are riding the strong multi-year outlook for earnings driven by the Consumer Staples 0.00 1.94 -1.94 economic growth cycle. Massive stimulus and monetary support since the pandemic has seen the Australian economy rebound from the two-quarter Health Care 2.42 6.49 -4.07 technical recession (with pandemic contraction of -2.4% in 2020) towards Financials 11.51 10.63 0.88 a consensus growth outlook for 2021 of 4.5%, and an Ausbil forecast of Information Technology 8.01 10.22 -2.20 4.9%. Communication Services 3.35 1.63 1.73 Ausbil’s earnings outlook, set following the end of the February 2021 Utilities 0.00 1.78 -1.78 reporting season, has been well-ahead of consensus, with Ausbil’s outlook Real Estate 2.93 6.83 -3.90 for market earnings growth in FY21 at over +20%, and over +18% in FY22. Cash 0.68 0.00 0.68 With vaccines and the easing of lockdowns, the path for a return to more Total 100.00 100.00 0.00 normalised earnings was apparent, though in February Ausbil was well ahead of consensus on FY21 earnings growth by some +5%, a significant 1. Fund returns are net of fees and gross of taxes. amount. The consensus earnings outlook for both indices is only now 2. The composite benchmark is 70% S&P/ASX Midcap 50 Accumulation Index and starting to catch-up, with outlooks for 2021 growth now at +22.5% (S&P/ 30% S&P/ASX Small Ordinaries Accumulation Index. ASX 200) and +22.6% (S&P/ASX 300) for the broad market, +13.3% for mid-caps (S&P/ASX MidCap 50), and +21.3% (S&P/ASX Small Ordinaries). 1 Ausbil Investment Management Limited Level 27 225 George Street Sydney NSW 2000 Australia Toll Free 1800 287 245

Unless otherwise specified, any information contained in this publication is current as at the date of this report and is prepared by Ausbil Investment Management Limited (ABN 26 076 316 473 AFSL 229722) (Ausbil). Ausbil is the issuer of the Ausbil Australian Emerging Leaders Fund (ARSN 089 995 442) (Fund). This report contains general information only and the information provided is factual only and does not constitute financial product advice. It does not take account of your individual objectives, financial situation or needs. Before acting on it, you should seek independent financial and tax advice about its appropriateness to your objectives, financial situation and needs. Securities and sectors mentioned in this monthly report are presented to illustrate companies and sectors in which the Fund has invested and should not be considered a recommendation to purchase, sell or hold any particular security. Holdings are subject to change daily. The value of an investment and the income from it can fall as well as rise and you may not get back the amount originally invested. Past performance is not a reliable indicator of future performance. Unless otherwise stated, performance figures are calculated net of fees and assume distributions are reinvested. Due to rounding the figures in the holdings, breakdowns may not add up to 100%. No guarantee or warranty is made as to the accuracy, adequacy or reliability of any statements, estimates, opinions or other information contained herein (any of which may change without notice) and should not be relied upon as a representation express or implied as to any future or current matter. You should consider the Product Disclosure Statement which is available at www.ausbil.com.au before acquiring or investing in the fund. Source: MSCI. The MSCI information may only be used for your internal use, may not be reproduced or disseminated in any form and may not be used as a basis for or a component of any financial instruments or products or indices. None of the MSCI information is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. Historical data and analysis should not be taken as an indication or guarantee of any future performance analysis, forecast or prediction. The MSCI information is provided on an “as is” basis and the user of this information assumes the entire risk of any use made of this information. MSCI, each of its affiliates and each other person involved in or related to compiling, computing or creating any MSCI information (collectively, the “MSCI Parties”) expressly disclaims all warranties (including, without limitation, any warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall any MSCI Party have any liability for any direct, indirect, special, incidental, punitive, consequential (including, without limitation, lost profits) or any other damages. Further information is available at www.msci.com. A short notice on the COVID-19 public health event, and how it can impact investments Given the currently evolving issues around the Coronavirus (or Covid-19) globally, which has officially been designated a pandemic by the World Health Organisation, we wish to notify that, as with many firms, business may be disrupted. A public health crisis, pandemic, epidemic or outbreak of a contagious disease, such as the recent outbreak of Coronavirus (or Covid-19) in Australia, Italy, China, South Korea, the United States and other countries, could have an adverse impact on global, national and local economies, which in turn could negatively impact investment returns in any of Ausbil Investment Management Limited’s registered managed investment schemes (the Funds). Disruptions to commercial activity relating to the imposition of quarantines or travel restrictions (or more generally, an inability on behalf of authorities to contain this pandemic) may adversely impact any investment, including by delaying or causing supply chain disruptions or by causing staffing shortages. The outbreak of Coronavirus has contributed to, and may continue to contribute to, volatility in financial markets. The impact of a public health crisis such as the Coronavirus (or any future pandemic, epidemic or outbreak of a contagious disease) is difficult to predict, which presents material uncertainty and risk with respect to any investment or fund performance.

Contactus@ ausbil.com.au