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Ausbil Investment Management Limited Ausbil Australian Active ABN 26 076 316 473 AFSL 229722 Level 27 Equity Fund 225 George Street Sydney NSW 2000 Monthly performance update GPO Box 2525 Sydney NSW 2001 Phone 61 2 9259 0200 November 2020 Fax 61 2 9259 0222

‘November generated a multi-decade high for Fund Characteristics monthly equity returns, with the S&P/ASX 300 Returns1 as at 30 November 2020 gaining 10.2%’ Period Fund Bench- Out/Under Return1 mark2 performance Performance Review % % % Fund performance for November 2020 was +11.48% (net of fees) versus 1 month 11.48 10.23 1.25 the benchmark return of +10.23%, as measured by the S&P/ASX 300 3 months 10.48 8.27 2.21 Accumulation Index. 6 months 20.49 14.98 5.51 At a sector level, the Fund’s overweight positions in the Industrials and FYTD 17.05 12.25 4.81 Financials sectors contributed to relative performance. The underweight CYTD 3.10 0.41 2.69 exposures to the Consumer Discretionary, Consumer Staples and Utilities 1 year 0.73 -1.62 2.35 sectors also added value. Conversely, the overweight positions in the 3 years pa 7.93 7.06 0.87 Materials, Health Care and Information Technology sectors detracted from relative performance. The underweight positions in the Energy, 5 years pa 9.74 9.14 0.60 Communication Services and Real Estate sectors also detracted value. 7 years pa 7.61 7.37 0.24 At a stock level, the overweight positions in , Santos, , 10 years pa 8.60 8.01 0.59 National Bank, Corporation, QBE, Galaxy Resources and 15 years pa 7.56 6.74 0.82 contributed to relative performance. The nil positions in Newcrest 20 years pa 9.26 7.92 1.33 Mining and also added value. Conversely, the overweight Since inception pa 9.97 8.11 1.86 positions in , NextDC, Northern Star Resources, Saracen Mineral Date: July 1997 Holdings, , , CSL and detracted from relative performance. The nil holdings in Woodside Top 10 Stock Holdings Petroleum and also detracted value. Name Fund Index2 Tilt Market Review % % % November generated a multi-decade high for monthly equity returns, with CSL 8.78 7.19 1.58 the S&P/ASX 300 gaining 10.2%, largely fuelled by three separate vaccine BHP 8.44 5.97 2.47 announcements with efficacy rates in the ninetieth percentile. Domestically, 8.13 7.45 0.67 running along the market-cap spectrum, Australia’s key indices all rose, with 6.65 4.01 2.64 large-equities (S&P/ASX 30: +10.3%, S&P/ASX 100: +10.2%), mid-cap 4.18 2.51 1.67 equities (S&P/ASX MidCap 50: +6.6%), and small cap equities (Emerging Companies: +12.9% and Small Ordinaries: +10.3%) all performing solidly. ANZ Bank 4.09 3.42 0.67 The much anticipated potential vaccine became a reality, earlier than Bank 4.06 3.87 0.19 expected, underpinning a resurgence in economic growth and driving Qantas 3.87 0.54 3.33 money into cyclicals and pandemic-impacted companies. This switch of Afterpay 3.68 1.16 2.52 money, partially from growth orientated stocks into neglected cyclicals, 3.37 1.09 2.28 heralded the start of a rotation that should see a more balanced market between growth and value. The Cup cut in the official cash rate to just 0.10% added further support to the recovery. Sector Tilts Sector Fund Index2 Tilt Outlook % % % At the time of writing, the vaccine announcements had been followed by Energy 3.34 3.74 -0.40 the first approval for use of the vaccine from Pfizer/BioNTech in the UK, Materials 24.46 18.93 5.53 underscoring the rapidly changing environment. Moreover, the Australian Industrials 10.26 8.01 2.25 September quarter GDP read was published at +3.3%, marking a technical end to the pandemic recession, though GDP remains below Consumer Discretionary 4.25 8.10 -3.86 trend, and is not expected to recover in dollar terms until mid-2021. Consumer Staples 2.45 5.82 -3.38 This outcome underscores the recovery profile that Ausbil has predicted Health Care 12.53 11.27 1.26 since the pandemic began, and has ensured the portfolios were well Financials 30.46 27.68 2.78 positioned ahead of the vaccine announcements in order to benefit Information Technology 5.66 5.10 0.56 from the recent market rebound. Ausbil’s view of a U-shaped recovery Communication Services 0.00 2.60 -2.60 remains, which started in the second half of 2020, and should be Utilities 0.00 1.47 -1.47 strengthening into 2021, with a consequent recovery in earnings. While this is well supported by the data flow, a number of key assumptions underpin Real Estate 6.10 7.28 -1.19 this view. The outlook assumes that the vaccines will be efficacious, there Cash 0.50 0.00 0.50 will be no material return to wholesale lockdowns, and that the earnings Total 100.00 100.00 0.00 recovery that we expect to unfold in the coming reporting cycles will support increased employment. Ausbil’s outlook also assumes the current trade 1.Fund returns are net of fees but before taxes. 2.The benchmark is S&P/ASX 300 Accumulation Index. tensions with will remain minimal in terms of actual trade impact, with 1 a path forward for eventual resolution. 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 Active Equity Fund (ARSN 089 996 127) (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 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, , 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