Hunter Hall Global Value Limited ACN 107 462 966 Monthly Performance Report April 2015

Date Pre-Tax Net Tangible Assets Per Share Post-tax Net Tangible Assets Per Share 30.04.2015 1.3306 1.3306

Absolute and Relative Performance Compound Annual Return 1 6 1 3 5 7 Since To 30 April 2015 (%) month months year years years years inception Absolute Performance 1.1 11.1 25.4 20.2 11.7 7.3 7.7 Benchmark – MSCI World -0.9 17.1 26.2 24.5 14.2 7.3 6.6 Relative Performance 2.0 -6.0 -0.7 -4.3 -2.6 0.0 1.2 Source: Hunter Hall. Inception date: 19 March 2004. MSCI refers to the MSCI World Total Return Index, Net Dividend Reinvested, in A$. Performance figures refer to the movement in net assets per share, including share buy-backs and the reinvestment of dividends, but excluding the effect of option exercises. Past performance is no guarantee of future performance and no guarantee of future return is implied.

Top 10 Holdings Company Main Business Country Net Assets (%) Sirtex Medical liver cancer treatments Australia 12.4 M2 Telecommunications telecommunications Australia 5.0 G-Resources precious metal mining Hong Kong 3.6 Citigroup bank USA 3.5 Take Two Interactive interactive entertainment USA 2.7 Volkswagen automobiles Germany 2.6 St Barbara gold explorer and producer Australia 2.5 Bank of New York Mellon financial services USA 2.5 Yahoo digital content USA 2.5 JDS optical components USA 2.3

Top 5 Contributors Top 5 Detractors Company Contribution to Return (%) Company Contribution to Return (%) St Barbara 1.79 Take Two Interactive -0.48 M2 Telecommunications 0.56 Tribune Media -0.39 G-Resources 0.45 Prada -0.37 ICBC 0.41 Urban Outfitters -0.33 China Communications 0.37 Yahoo -0.31 Services Corp

Country Allocation Breakdown Sector Allocation Breakdown (as a percentage of net assets) (as a percentage of net assets)

Other Net liquids Utilities South Japan 6.1% 11.5% 10.5% Korea 3.6% 0.8% Consumer Net Discretionary China 5.8% Liquids Telecomm 19.3% 10.5% Services Italy 4.0% 7.5%

UKonly use personal For 1.7% Materials 7.2% Financials Australia & 16.4% New Zealand Information 25.4% USA 31.4% Technology 16.7% Industrials Health Care 4.7% 16.9%

STOCK IN FOCUS St Barbara Gold producer St Barbara Limited had a spectacular month with its share price rising 80% as result of an excellent quarterly report and the sale of its risky Gold Ridge mine in the Solomon Islands. For the quarter to 31 March 2015 the company generated cash of $40m and record gold production as a result of excellent grades and cost control at its Gwalia mine and a convincing increase in volumes at Simberi which has pushed that operation to breakeven. The company is endeavoring to increase the life of Gwalia from nine years towards 18 years and announced encouraging drilling results with one intersection of 2 meters showing 55 grams a tonne. The company also announced interesting preliminary results for its nickel and copper/zinc/silver prospects at its Centenary tenements adjacent to Independence Group’s Bentley mine. St Barbara is now in an excellent position with both of its mines generating positive cashflow. The company has excellent management, large reserves and low costs and can look forward to grinding down its debt over the next few years. If it achieves growing cashflows and reducing debt we expect the share price to continue to appreciate from its current level of about 50c, subject to the gold price staying around current levels. St Barbara has few Australian institutional shareholders with Hunter Hall being the largest at 15%. M2 Group A somewhat eventful month for our stalwart M2 Group. Following an excellent $250m acquisition of New Zealand lookalike, Call Plus, M2 dealt itself into the takeover play for iiNet, considered one of the last remaining strategic assets on the Australian telco landscape. It not only bettered the existing $1.4 billion offer by David Teoh's TPG by around $200 million but gave iiNet a 100% scrip offer including a potential fully franked dividend of $0.75. iiNet's attraction to both M2 and TPG is its sticky customer base of almost 1 million subscribers and 1.9 million services in operation. For M2, an exciting opportunity to cross sell its strong and innovative product suite to iiNet customers and for TPG a similar opportunity plus the scope to take the latter on-net. Significant synergies potentially exist for both M2 and TPG and arguably more for the latter given its substantial infrastructure. At the time of writing, we are awaiting a response from TPG who now has to sweeten its original offer to iiNet shareholders. Even if M2 is not successful it remains a good story in our view with a strong earnings trajectory ahead and a superb management team. M2 rose 14% in April. G-Resources Hong Kong-listed, Indonesian gold and silver producer, G-Resources, rose 12% after providing an excellent March 2015 quarterly update. Its Martabe mine, located on the western side of North Sumatra, achieved record gold production as a result of excellent grades, and a cash cost of about A$440 an ounce. Net cash increased by $77m in the quarter, a remarkable achievement. As a result of the strong March quarter, the company revised up its 2015 guidance. At a market capitalisation of US$820m, cash of U$445m, no debt, and largely ignored by the investment community, the stock is trading on a 2015 P/E of 7x and an 2015 EV/EBITDA of only 2.7x. The stock is dirt cheap and we added to our position following the result. Take Two Interactive Despite the lack of any adverse news, US software company, Take-Two Interactive (-7%), was the Company’s largest detractor over the month. In addition to its impressive suite of games, we see Take-Two as a beneficiary of the positive momentum for the new hardware cycle. The company has a significant net cash balance (US$507m which is equal to c25% of the company’s market value). We believe T2 has an excellent management team who are executing very well, the best creative talent in the industry, and misunderstood prospects in terms of the underlying franchises and business model. We used the share price weakness to add to our existing holding over the month, ahead of the company’s fourth quarter and fiscal year 2015 results ended March 2015, due mid May.

For personal use only use personal For Hunter Hall Global Value Limited - Contact Details Street address: Level 2, 56 Pitt St, Sydney NSW 2000 Telephone: 1800 651 674 Postal address: Reply Paid 3955, Sydney NSW 2001 0800 448 305 (New Zealand callers) Website: www.hunterhall.com.au +61 2 8224 0300 Email: [email protected] Hunter Hall Global Value Limited or any related entity does not guarantee the repayment of capital or any particular rate of return from the Company. Past performance is no guarantee of future performance. This document does not take into account a reader’s investment objectives, particular needs or financial situation. It is general information only and should not be considered investment advice and should not be relied on as an investment recommendation.