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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 November 2020 Phone 61 2 9259 0200 Fax 61 2 9259 0222

‘The much anticipated potential vaccine became Fund Characteristics a reality, earlier than expected, underpinning a Returns1 as at 30 November 2020 resurgence in economic growth’ Period Fund Bench- Out/Under Return1 mark2 performance Performance Review % % % Fund performance for November 2020 was +9.59 (net of fees) versus 1 month 9.59 7.68 1.91 the benchmark return of +7.68%. The benchmark is represented by a composite, 70% of the S&P/ASX MidCap 50 Accumulation Index and 3 months 8.96 9.07 -0.10 30% of the S&P/ASX Small Ordinaries Accumulation Index. 6 months 20.53 21.16 -0.63 At a sector level, the Portfolio’s overweight position in the Materials sector FYTD 20.07 18.39 1.68 added to relative performance. The underweight positions in the Consumer CYTD 8.08 11.13 -3.05 Staples, Health Care and Utilities sectors also added value. Conversely, 1 year 9.18 9.90 -0.72 the overweight positions in Energy and Information Technology detracted 3 years pa 4.78 8.67 -3.89 from performance. The underweight exposures to Industrials, Consumer 5 years pa 8.94 12.61 -3.66 Discretionary, Financials, Communication Services and Real Estate also 10 years pa 8.20 8.59 -0.39 detracted value. 15 years pa 7.34 6.63 0.71 At a stock level, the overweight positions in , , Corporate Since inception pa 10.66 9.34 1.33 Travel Management, Galaxy Resources, , Uniti Group, Bank of Date: April 2002 and Domain Holdings contributed to relative performance. The nil positions in Domino’s Pizza and also added value. Top 10 Stock Holdings Conversely, the overweight positions in NextDC, , Elders, Megaport, Saracen Mineral Holdings and detracted from Name Fund Index2 Tilt relative performance. The underweight positions in , REA Group, % % % Bendigo and Adelaide Bank and also detracted value. Afterpay 6.75 5.59 1.16 Market Review Lynas 6.28 0.42 5.86 Charter Hall Group 4.07 1.64 2.44 November generated a multi-decade high for monthly equity returns. While slightly underperforming the larger cap indexes, the Blended Benchmark BlueScope Steel 3.95 2.20 1.75 (70% S&P/ASX MidCap 50 and 30% S&P/ASX Small Ordinaries) still Domain Holdings 3.82 0.14 3.69 contributed a strong positive +7.7% return, on the back of a modest Worley 3.81 1.05 2.77 pullback in the golds and the technology sector. While tech and gold 3.81 1.29 2.52 were used as funding sources for tilting towards cyclicals in November, NextDC 3.78 1.31 2.47 this comes on the back of a largely tech-led performance this year which WiseTech Global 3.61 1.23 2.38 saw Information Technology deliver an annual return within the Blended ResMed Inc. 3.54 2.42 1.12 Benchmark of +53.9%. The much anticipated potential vaccine became a reality, earlier than expected, underpinning a resurgence in economic growth and driving Sector Tilts money into cyclicals and pandemic-impacted companies. Sector Fund Index2 Tilt % % % Outlook Energy 3.81 3.20 0.61 At the time of writing, the vaccine announcements had been followed Materials 30.83 20.39 10.45 by the first approval for use of the vaccine from Pfizer/BioNTech in Industrials 8.76 12.32 -3.56 the UK, underscoring the rapidly changing environment. Moreover, the Australian September quarter GDP read was published at +3.3%, Consumer Discretionary 16.02 13.61 2.41 marking a technical end to the pandemic recession, though GDP Consumer Staples 3.46 3.65 -0.19 remains below trend, and is not expected to recover in dollar terms Health Care 4.42 6.79 -2.37 until mid-2021. This outcome underscores the recovery profile that Financials 4.66 10.92 -6.26 Ausbil has predicted since the pandemic began, and has ensured the Information Technology 20.81 20.27 0.54 portfolios were well positioned ahead of the vaccine announcements Communication Services 1.67 1.92 -0.24 in order to benefit from the recent market rebound. Ausbil’s view of a Utilities 0.00 1.78 -1.78 U-shaped recovery remains, which started in the second half of 2020, Real Estate 4.07 5.17 -1.09 and should be strengthening into 2021, with a consequent recovery in earnings. While this is well supported by the data flow, a number of key Cash 1.48 0.00 1.48 assumptions underpin this view. The outlook assumes that the vaccines Total 100.00 100.00 0.00 will be efficacious, there will be no material return to wholesale lockdowns, 1. Fund returns are net of fees and gross of taxes. and that the earnings recovery that we expect to unfold in the coming 2. The composite benchmark is 70% S&P/ASX Midcap 50 Accumulation Index and reporting cycles will support increased employment. Ausbil’s outlook also 30% S&P/ASX Small Ordinaries Accumulation Index. assumes the current trade tensions with China will remain minimal in terms of actual trade impact, with a path forward for eventual resolution. 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.

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