ASX Listed Investment Companies November 2012

This report focusing on ASX Listed Investment Companies seeks to i) identify and capitalise on any trading opportunities that may exist across the sector & ii) assist clients seeking to broaden portfolio exposure through an investment in a diverse and professionally managed portfolio of assets (focused on Australian and International equities).

Across our universe of Listed Investment Companies (LICs), we also take a closer look at relative fund performance figures through to the period ending 31 October 2012.

Note that the Pre-Tax NTA stated below is as last reported (ie. for the month ended 31 October 2012). Implied NTA Calculation*

Pre-Tax NTA Prem/Disc Historic Price ($) Last price Pre-Tax NTA Prem/Disc FY12 DPS Market Cap Code Name 31/10/2012 to NTA (%) Yield (Last Benchmark Index 31/10/2012 ($) ($) to NTA (%) (¢)** ($m) ($) 31/10/2012 Price) %

Domestic Focus AFI Australian Foundation Inv Co Ltd 4.71 4.74 -1% 4.75 4.88 -3% 21.0 4.4 4912 ASX 200 ARG Argo Investments Limited 5.73 5.97 -4% 5.70 6.15 -7% 26.0 4.6 3584 ASX 200 MLT Milton Corporation Limited 17.04 17.55 -3% 16.74 18.07 -7% 78.0 4.7 2036 All Ords DJW Djerriwarrh Investments Limited 3.99 3.37 18% 3.97 3.47 14% 26.0 6.5 868 ASX 50 AUI Australian United Investment Company Limited6.28 6.84 -8% 6.27 7.04 -11% 28.0 4.5 667 ASX 300 BKI BKI Investment Company Limited 1.29 1.40 -8% 1.28 1.44 -11% 6.4 5.0 569 ASX 300 DUI Diversified United Investment Limited 2.72 2.98 -9% 2.67 3.07 -13% 13.0 4.9 450 ASX 300 MIR Mirrabooka Investments Limited 2.10 1.98 6% 2.06 2.04 1% 10.0 4.9 283 50% Small/50% Mid Cap WHF Whitefield Limited 3.06 3.32 -8% 2.93 3.44 -15% 17.0 5.8 222 ASX 200 Industrials WAM WAM Capital Limited 1.61 1.64 -2% 1.61 1.69 -5% 11.0 6.8 223 All Ords AMH AMCIL Limited 0.76 0.82 -7% 0.76 0.84 -10% 3.5 4.6 159 ASX 200 CTN Contango Microcap Limited 0.99 1.21 -18% 0.96 1.24 -23% 8.5 8.9 144 Small Ords WIC Westoz Investment Company Limited 1.00 1.44 -31% 1.03 1.48 -31% 4.0 3.9 131 ASX 200 ALF Australian Leaders Fund Limited 1.26 1.30 -3% 1.27 1.34 -6% 11.0 8.7 91 ASX 200 CAM Clime Capital Limited 0.99 1.12 -12% 1.00 1.13 -12% 3.8 3.8 50 All Ords Global Focus MFF Magellan Flagship Fund Limited 0.93 0.97 -4% 0.95 0.96 -2% 1.0 1.1 328 MSCI A$ PMC Platinum Capital Limited 1.01 1.12 -10% 1.02 1.11 -9% 0.0 0.0 168 MSCI A$ TGG Templeton Global Growth Fund 0.77 0.91 -15% 0.77 0.90 -16% 1.5 2.0 110 MSCI A$ NTA calculations are based on end of month figures (31/10/2012)

The key attributes we look for in an LIC:

- Dividend sustainability – It is important that an LIC has the ability to pay consistent and steady distributions to shareholders. Dividends paid by LICs are determined by management and unlike unlisted managed funds are not obliged to distribute all surplus income.

- Market liquidity – An LIC needs to have sufficient size to provide sufficient market liquidity.

- Share price premium/discount to NTA– We will target LICs that are attractively valued relative to historic levels and absolute value. While there are factors that contribute to an LIC trading above or below its NTA (including market liquidity), relative underperformance to NTA may be viewed as a trading opportunity or the chance to gain exposure to underlying holdings at a relatively cheaper level than that traded on market.

- Board/Management Experience – We look for a Board and Investment Committee with extensive market experience, a transparent investment philosophy and a consistent track record of meeting investor expectations.

- An appropriate fee schedule –Value for money and relatively low-cost management ASX Listed Investment Companies November 2012

Across our universe of Listed Investment Companies (LICs), returns (inclusive of dividends) have been challenged by volatile trading conditions, both domestically and internationally. Below we table LIC investment portfolio performance (pre-tax NTA), highlighting funds that have performed well relative to peers and respective benchmarks.

Over the 12 months to 31 October 2012, Whitefield (WHF, +18.2%), Australian Leaders Fund (ALF, +17.8%) Mirrabooka Investments (MIR,+15.4%) and Amcil (AMH ,+14.3%) produced the largest fund returns (pre-tax NTA) out of a generally strong domestic field. On the international front, Magellan Flagship Fund (MFF) was again the standout performer generating a +25.9% return.

ASX Listed Investment Companies - Annual Pre-Tax NTA Performance to 31 October 2012 Annual Returns (incl Dividends) % Market Fund Name Code Share Price Pre-Tax NTA Cap ($m) Benchmark 6 months 1Yr 3Yr 5Yr 6 months 1Yr 3Yr 5Yr Domestic Focus Australian Foundation Investment Company Limited AFI 4912 11.5% 16.9% 0.6% -1.4% 5.1% 11.0% 4.4% -0.8% ASX 200

Argo Investments Limited ARG 3584 11.4% 14.3% -1.6% -3.2% 5.3% 10.2% 2.8% -2.5% All Ords

Milton Corporation Limited MLT 2036 10.7% 16.5% 3.4% -1.7% 4.2% 10.4% 3.9% -1.9% All Ords

Djerriwarrh Investments Limited DJW 868 8.6% 13.9% 3.2% 0.1% 4.9% 11.2% 3.0% -2.2% ASX 50

Australian United Investment Company Limited AUI 667 8.1% 11.8% -0.1% -3.7% 4.3% 8.1% 2.3% -3.5% ASX 300

BKI Investment Company Limited BKI 569 8.4% 10.1% 5.4% 1.7% 3.9% 7.0% 5.1% 0.5% ASX 300

Diversified United Investment Limited DUI 450 9.4% 15.4% -0.1% -4.4% 6.4% 11.8% 2.4% -3.5% ASX 300

Mirrabooka Investments Limited MIR 283 13.6% 29.4% 6.3% 2.2% 2.5% 15.4% 8.6% 0.5% Small/Mid Cap

Whitefield Limited WHF 222 14.4% 21.0% 0.6% -4.2% 8.9% 18.2% 2.1% -4.4% ASX 200 Ind

WAM Capital Limited WAM 223 3.4% 19.8% 13.1% 3.5% 7.5% 11.4% 7.1% 2.8% All Ords

AMCIL Limited AMH 159 4.7% 16.3% 8.9% 0.9% 3.1% 14.3% 8.2% 3.6% ASX 200

Contango Microcap Limited CTN 144 -12.5% 11.5% 3.4% -7.2% -12.2% -1.0% -1.9% -6.7% Small Ords

Westoz Investment Company Limited WIC 131 0.0% 12.4% 7.0% NA 1.5% 11.4% 3.5% 1.7% All Ords

Australian Leaders Fund Limited ALF 91 9.6% 24.5% 10.9% 7.5% 5.3% 17.8% 3.4% 5.7% All Ords

Clime Capital Limited CAM 50 12.7% 18.0% 7.3% -1.3% -0.9% 4.1% 3.0% -0.5% All Ords

International Focus

Magellan Flagship Fund Limited MFF 328 12.7% 43.1% 18.4% 2.3% 0.9% 25.9% 12.4% 0.9% MSCI A$

Platinum Capital Limited PMC 168 -3.4% 4.7% -9.3% -5.4% -1.2% 4.2% -1.7% -0.5% MSCI A$

Templeton Global Growth Fund Limited TGG 110 14.6% 6.1% 0.2% -9.3% 5.1% 10.1% 0.3% -7.2% MSCI A$

Source: IRESS, Company Data, Bloomberg

*Returns are calculated assuming dividend reinvestment Australian Foundation Investment Company (AFI, +16.9%) was the best performing large cap LIC (market cap > $1bn) by share price over the past 12 months, ahead of Milton Corporation (MLT, +16.5%) and Argo Investments (ARG, +14.3%), with all three companies outperforming the ASX 200 (+10.3%) and All Ordinaries (+8.9%) indices. Over the past 5 years, AFI has been the best performing large cap returning -1.4% p.a (ASX200 -3.5%), driven by strong underlying fund performance.

Across LICs with a market cap of between $400m-$1bn, Diversified United (DUI) has been the best performing fund over 12 months returning 15.4% and yielding 4.8% based on FY12 DPS fully franked. At the smaller end, Mirrabooka (MIR) and WAM Capital (WAM) remained consistent performers over 12 months, returning 29.4% and 19.8% respectively. Both MIR and WAM have performed well over 5 years, with gains of 2.2% p.a. and 3.5%. WAM yields an attractive 6.8% ff. On the international front, Magellan (MFF) was the standout in our LIC universe, returning 43.1% over 12 months and 2.3% p.a. over a 5 year period.

Over the quarter, Contango Asset Management announced a new MidCap Income LIC with a proposed listing in December 2012. Looking to raise $200m, Contango is aiming to pay 7.2% p.a. yield on the product while preserving capital and looks to minimize overlap with existing ASX30 portfolios.

BKI announced a share purchase plan (SPP) on October 9 - shareholders had the option to acquire up to $15,000 worth of ordinary shares at a 0.25% discount to 5 day VWAP ($1.29). BKI raised $19m taking total market cap to ~$570m.

At the smaller end of the spectrum at $50m market cap, Clime Capital Ltd (CAM) has been added to our LIC universe. CAM has managed to materially close its discount to NTA (-12% vs. long term avg. -33%) over the past 12 months with share price performance of 18%. CAM announced a 1-for-20 bonus issue on October 2 citing 'continuing healthy returns'. The fund's investment philosophy is focused on identifying high recurrent yield supported by cash flows, balance sheet focus and ROE. ASX Listed Investment Companies November 2012

The table below outlines the premium/discount to Pre-Tax NTAs for each LIC as at 31 October 2012, alongside the historical averages dating back to January 2005. Across the board most LICs are trading relatively cheaper than historically has been the case.

We also look at the impact on premium/discounts by adjusting pre-tax NTA's for management fees. We capitalise annual management fees at an estimate of 8x, thus adjusting NTA's lower. This is only to be viewed as an indicative guide on highlighting the impact management fees may have on the relative value proposition, particularly for funds with management fees in excess of 1% per annum. ASX Listed Investment Companies Adj Market Share Price Pre-Tax Prem/Disc Historic Mgt Fee Adj. Pre- Prem/Disc Name Code Cap ($) NTA ($) to Pre-Tax Average (%) Tax NTA ($) to Pre-Tax ($m) 31/10/2012 31/10/2012 NTA (%) (%)* NTA (%) Domestic Focus Australian Foundation Investment Company Limited AFI 4912 4.71 4.74 -1% -1% 0.19% 4.67 1%

Argo Investments Limited ARG 3584 5.73 5.97 -4% 0% 0.17% 5.89 -3%

Milton Corporation Limited MLT 2036 17.04 17.55 -3% -2% 0.17% 17.31 -2%

Djerriwarrh Investments Limited DJW 868 3.99 3.37 18% 7% 0.37% 3.27 22%

Australian United Investment Company Limited AUI 667 6.28 6.84 -8% -6% 0.15% 6.76 -7%

BKI Investment Company Limited BKI 569 1.29 1.40 -8% -12% 0.18% 1.38 -7%

Diversified United Investment Limited DUI 450 2.72 2.98 -9% -7% 0.20% 2.93 -7%

Mirrabooka Investments Limited MIR 283 2.10 1.98 6% -4% 0.81% 1.85 13%

Whitefield Limited WHF 222 3.06 3.32 -8% -11% 0.35% 3.23 -5%

WAM Capital Limited WAM 223 1.61 1.64 -2% -16% 0.90% 1.52 6%

AMCIL Limited AMH 159 0.76 0.82 -7% -11% 0.90% 0.76 0%

Contango Microcap Limited CTN 144 0.99 1.21 -18% -26% 1.25%* 1.08 -9%

Westoz Investment Company Limited WIC 131 1.00 1.44 -31% -31% 1.00%* 1.33 -25%

Australian Leaders Fund Limited ALF 91 1.26 1.30 -3% -20% 1.00%* 1.20 5%

Clime Capital Limited CAM 50 0.99 1.12 -12% -33% 1.00%* 1.03 -4%

International Focus

Magellan Flagship Fund Limited MFF 328 0.93 0.97 -4% -13% 1.25%* 0.87 6%

Platinum Capital Limited PMC 168 1.01 1.11 -9% 12% 1.50%* 0.97 3%

Templeton Global Growth Fund Limited TGG 110 0.77 0.91 -15% -14% 1.00%* 0.84 -8%

Source: IRESS, Company Data Note: Annual management fees capitalised at 8x *Does not include any performance fee Large cap LICs (AFI -1%, ARG -4%, MLT -3%) are trading at a discount to pre-tax NTA and near historical averages which sit near flat. This discount has narrowed over the past 12 months as the companies have performed in excess of strong underlying fund performance. These companies are attractively priced at current levels for an investor looking for a longer term quality portfolio exposure at low cost and a track record of delivering dividend growth. High retained earnings positions see little risk to dividend cuts in the near term.

AUI (-8%), BKI (-8%), DUI (-9%) & WHF (-8%) are trading at sizeable discounts to Pre-tax NTA, although the gap to historical average discount has narrowed, with AUI & DUI well below historical averages. Both DJW (+18%) and MIR (+6%) trade at a significant premium to NTA, potentially reflecting high yields and dividend sustainability. Strong fund performance over the past 12 months has seen a number of LICs narrow discounts to NTA - WAM -2% (5yr average - 16%), AMH -7% (-11%), ALF -3% (-21%). Across the micro-cap sector, CTN (-18%) and WIC (-26%) continue to trade at a sharp discount.

In the past 12 months, we have seen discounts to NTA close considerably as interest in LICs has increased, particularly in the wake of the FoFA reforms and the move away from commission-based products. LICs will also be the beneficiary of investors seeking low-cost, index performance with active management to mitigate risk. Given these considerations, we expect that the sector could continue to re-rate and discounts to narrow further, particularly in the $400m-$1bn market cap range.

On the internationally focused LICs, MFF (-4%), PMC (-9%) and TGG (-15%) are trading at material discounts. PMC has historically traded at a premium to NTA, however share price performance has suffered due to poor fund performance and the ceasing of dividends due to negative retained earnings. We highlight that MFF could further narrow its discount to NTA, with key stakes in Wells Fargo and US Bancorp well-placed should US fiscal cliff negotiations be resolved. ASX Listed Investment Companies November 2012

3 Yr Pre-Tax NTA Growth Vs 3 Yr Share Price Performance

14%

MFF 12%

10%

Tax NTA Growth NTA Tax - MIR 8% AMH

WAM 3Yr Pre 3Yr

6%

BKI AFI 4% MLT WIC ALF AUI DJW ARG CAM 2% DUI WHF 3Yr Share Price Performance TGG 0% -15% -10% -5% 0% 5% 10% 15% 20%

PMC -2% CTN

-4% Source: IRESS, Company Data

Premium/Discount to NTA vs Yield

10.0%

9.0% CTN ALF

8.0% Dividend Yield

7.0% DJW WAM

WHF 6.0%

BKI DUI MIR ARG 5.0% MLT AMH AFI AUI 4.0% WIC CAM 3.0%

TGG 2.0%

MFF

1.0% Source: IRESS, Company Data

PMC Premium/Discount to Pre-Tax NTA 0.0% -40% -30% -20% -10% 0% 10% 20% 30%

*Prem/Disc to pre-tax NTA Historic Prem/Disc to NTA

Domestic Focus

AFI Australian Foundation Investment Co ALF Australian Leaders Fund Limited % % 15% 0% -5% 10% -10% 5% -15% -20% 0% -25% -5% -30% -35% -10% -40% -15% -45% Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12

Prem/Disc to NTA (%) Average +/- 1 Std Deviation Prem/Disc to NTA (%) Average +/- 1 Std Deviation

AMH AMCIL Limited ARG Argo Investments Limited % % 10% 20% 5% 15%

0% 10% -5% 5% -10% 0% -15% -20% -5% -25% -10% -30% -15% Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12

Prem/Disc to NTA (%) Average +/- 1 Std Deviation Prem/Disc to NTA (%) Average +/- 1 Std Deviation

BKI BKI Investment Company Limited CAM Clime Capital Limited % % 0 ## 0% 0%

-10% -5% -20% -10% -30% -15% -40%

-20% -50%

-25% -60% Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12

Prem/Disc to NTA (%) Average +/- 1 Std Deviation Prem/Disc to NTA (%) Average +/- 1 Std Deviation

CTN Contango Microcap Limited DJW Djerriwarrh Investments Limited ## % 15 18 % 5% 25% 0% -5% 20% -10% 15% -15% -20% 10% -25% 5% -30% -35% 0% -40% -45% -5% -50% -10% Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12

Prem/Disc to NTA (%) Average +/- 1 Std Deviation Prem/Disc to NTA (%) Average +/- 1 Std Deviation

ABN 85 125 338 785 www.evansandpartners.com.au AFSL 318075 Historic Prem/Disc to NTA

Domestic Focus

MLT Milton Corporation Limited MIR Mirrabooka Investments Limited % % 15% 20% 15% 10% 10% 5% 5% 0% 0% -5% -5% -10% -10% -15% -15% -20% Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12

Prem/Disc to NTA (%) Average +/- 1 Std Deviation Prem/Disc to NTA (%) Average +/- 1 Std Deviation

WAM WAM Capital Limited WIC Westoz Investment Company Limited % % 0% -20% -5% -10% -25% -15% -30% -20% -25% -35% -30% -35% -40% -40% -45% -45% Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Sep-09 Sep-10 Sep-11 Sep-12

Prem/Disc to NTA (%) Average +/- 1 Std Deviation Prem/Disc to NTA (%) Average +/- 1 Std Deviation

Global Focus

WHF Whitefield Limited MFF Magellan Flagship Fund Limited % % 0% 10% 5% -5% 0% -5% -10% -10%

-15% -15% -20% -20% -25% -30% -25% Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Prem/Disc to NTA (%) Average +/- 1 Std Deviation 0 Prem/Disc0 to NTA (%) ## Average +/- 1 Std Deviation

PMC Platinum Capital Limited TGG Templeton Global Growth Fund Limited % % 60% 5% 50% 0%

40% -5% 30% -10% 20% -15% 10% -20% 0% -10% -25% -20% -30% Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12

Prem/Disc to NTA (%) Average +/- 1 Std Deviation Prem/Disc to NTA (%) Average +/- 1 Std Deviation ASX Listed Investment Companies November 2012

Listed Investment Companies - One Page Reviews

• Australian Foundation Investment Company (AFI) 8

• Australian Leaders Fund (ALF) 9

• AMCIL Ltd (AMH) 10

• Argo Investments (ARG) 11

• Australian United Investment Company (AUI) 12

• BKI Investment Company (BKI) 13

• Clime Capital Ltd (CAM) 14

• Contango Microcap Ltd (CTN) 15

• Djerriwarrh Investments Ltd (DJW) 16

• Diversified United Investment Ltd (DUI) 17

• Milton Corporation (MLT) 18

• Mirrabooka Investments (MIR) 19

• WAM Capital Ltd (WAM) 20

• Whitefield Ltd (WHF) 21

• Westoz Investment Company (WIC) 22

• Magellan Flagship Fund (MFF) 23

• Platinum Capital Ltd (PMC) 24

• Templeton Global Growth Fund (TGG) 25

ASX Listed Investment Companies

Australian Foundation Investment Co (AFI) Share Price 31/10/2012 $4.71 Market Cap ($M) 4871 InvestmentInvestment Style/Strategy Style/Strategy 12 Month Price Range $3.95 - $4.85 AFICAFIC aims aims to to provide provide a steady a steady stream stream of fully of frankedfully franked Avg Weekly Volume 1,630,281 dividendsdividends and and medium medium to long to long term term capital capital growth growth through Performance (annual) 6 Mth 12 Mth 3 Yr 5 Yr investmentthrough investment in a diversified in a set diversified of quality setstocks of qualitywith stocks AFI (Share Price) 11.5% 16.9% 0.6% -1.4% with management strength and disciplined financial management strength and disciplined financial metrics. The NTA (Pre-tax) 5.1% 11.0% 4.4% -0.8% focusmetrics. is on The S&P/ASX focus 200 is on stocks S&P/ASX with a 200 ‘nursery’ stocks of withsmaller a ASX200 Accum 5.3% 10.3% 3.6% -3.5% stocks‘nursery’ with ofthe smaller capacity stocks to develop with intothe capacitymajor businesses to develop over FY10 FY11 FY12 time.into AFImajor looks businesses to target stocks over time.with good AFI looksmanagement, to target strongstocks free with cash good flow, management, consistent margins strong and free the cash ability flow, to pay Total Dividends (cents/share) 21.0 21.0 21.0 sustainableconsistent dividends. margins andWhile the the ability majority to payof assets sustainable lie in the Yield (last full year dividend) 4.5% Longdividends. Term Investment While the Portfolio, majority AFI of alsoassets has lie a Tradingin the Long Historic Dividend Per Share (¢) June Year End Portfolio,Term Investment capped at 10%Portfolio, of total AFI portfolio, also has to a take Trading advantage 25 Special Dividend ofPortfolio, shorter term capped opportunities at 10% of in total the market. portfolio, to take 20 advantage of shorter term opportunities in the market. 15 10 AssetAsset Allocation Allocation 5 AsAs at at the the 30 30 June June 2010, 2012: AFIC AFIC had had96% ~93%of capital of capital invested in 0 longinvested term equities, in long term1.5% equities,in short-term 2.2% trading in short assets-term and 2.5% FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 ortrading $115m assets in cash. and 3.2% or $251.5m in cash. NTA Data (as at end of month) 31/10/2012 As at 30 June 2012, AFI had total debt of $318.7m - Last Reported: $100m in drawn down debt and a $219m convertable NTA (Pre-Tax) $4.74 Investmentnote issue. Manager Prem/Disc to Share Price -0.6% AFIC’s investment decisions are driven by the Investment 1Yr Avg NTA Prem/Disc to Share Price -5% CommitteeInvestment with Manager day to day management of the portfolio and 5Yr Avg NTA Prem/Disc to Share Price 1% associatedAFIC’s investment research is decisions done by an are in drivenhouse investment by the team NTA vs Share Price Chart that works in close consultation with the Chairman and Investment Committee with day to day management $ Prem/Disc % Managingof the portfolio Director. and The associated Investment research Committee done is comprised by an in 6.50 15.0% 6.00 ofhouse Bruce investment Teele (Chairman), team Donthat Argus, works Ross in close Barker (MD), Terry 10.0% 5.50 Campbell,consultation John withPaterson, the Chairman Fergus Ryan, and Cathy Managing Walter. 5.0% 5.00 Director. The Investment Committee is comprised of 0.0% 4.50 Bruce Teele (Chairman), Don Argus, Ross Barker (MD), -5.0% 4.00 Terry Campbell, John Paterson, Fergus Ryan, Cathy Dividend Policy 3.50 -10.0% Walter. AFIC aims to provide fully franked dividends growing at a rate 3.00 -15.0% Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 greater than inflation and an ideal level for the conservative Dividend Policy Prem/Disc (%) NTA (Pre-Tax $) Share Price ($) investor. Dividends have been funded by realised capital gains AFIC aims to provide fully franked dividends growing at Major Shareholdings in the past. a rate greater than inflation. Dividends have been as at 31 October 2012 % funded by realised capital gains in the past. BHP Billiton 9.8% Fee Structure Commonwealth Bank of Australia 9.8% TheFee management Structure expense ratio was 0.16% for the year ending Westpac 9.3% The management expense ratio was 0.19% for the year 30 June 2010. No performance fee. Benchmark S&P/ASX 200 Wesfarmers 5.3% ending 30 June 2012. No performance fee. Benchmark Accumulation National Australia Bank 5.2% S&P/ASX 200 Accumulation. ANZ Banking Group 4.5% Telstra Corporation 4.4% Rio Tinto 4.1% Woolworths 3.6% Oil Search 2.3% Website: www.afi.com.au ABN 85 125 338 785 www.evansandpartners.com.au AFSL 318075 8 ASX Listed Investment Companies

Australian Leaders Fund Limited (ALF) Share Price 31/10/2012 $1.26 Market Cap ($M) 87 Investment Style/Strategy Investment Style/Strategy 12 Month Price Range $1.01 - $1.31 ALF is an Australian listed investment company, with a AFIC aims to provide a steady stream of fully franked Avg Weekly Volume 1,440,566 portfolio comprising of publicly traded Australian dividends and medium to long term capital growth through 6 Mth 12 Mth 3 Yr 5 Yr companies. ALF differs from traditional listed investment Performance (annual) investment in a diversified set of quality stocks with companies in its use of hedging strategies to enhance ALF (Share Price) 9.6% 24.5% 10.9% 7.5% management strength and disciplined financial metrics. The NTA (Pre-tax) 5.3% 17.8% 3.4% 5.7% returnsfocus is onand S&P/ASX manage 200 risk. stocks with a ‘nursery’ of smaller ASX200 Accum 4.0% 8.9% 3.5% -3.6% stocks with the capacity to develop into major businesses over FY10 FY11 FY12 Thetime. investment AFI looks to process target stocks has a with primary good goalmanagement, of indentifying mispricedstrong free shares, cash flow, looking consistent to buy margins good andcompanies the ability on to pay Total Dividends (cents/share) 8.0 11.0 11.0 occasionssustainable when dividends. they Whileare undervalued the majority byof assets the market. lie in the The Yield (last full year dividend) 8.7% groupLong Term also Investmentshort sells Portfolio,shares that AFI arealso fundamentally has a Trading Historic Dividend Per Share (¢) June Year End challengedPortfolio, capped and considered at 10% of total overvalued, portfolio, toproviding take advantage a natural 15 hedgeof shorter and term helping opportunities manage riskin the through market. the cycle. 10 The fund targets +3-5% outperformance on the Long Portfolio and -3-5% underperformance on the Short 5 Asset Allocation Portfolio. 0 As at the 30 June 2010, AFIC had 96% of capital invested in long term equities, 1.5% in short-term trading assets and 2.5% FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 Asset Allocation or $115m in cash. As at 30 June 2012, ALF's Net Asset Value was $85m, Long NTA Data (as at end of month) exposure 151% and Short exposure 90% - Net Exposure Last Reported: 31/10/2012 61%. Cash accounted for 20%. NTA (Pre-Tax) $1.30 Investment Manager Prem/Disc to Share Price -3.1% InvestmentAFIC’s investment Manager decisions are driven by the Investment 1Yr Avg NTA Prem/Disc to Share Price -9% TheCommittee objective with of day the to investment day management manager of the is toportfolio deliver and 5Yr Avg NTA Prem/Disc to Share Price -18% superiorassociated returns research over is done the mediumby an in house term investment within acceptable team NTA vs Share Price Chart riskthat parameters works in close while consultation preserving with the the company's Chairman and capital. $ Prem/Disc % Directors:Managing Director. J. Braitling The (Chairman Investment & Committee Chief Investment is comprised 1.80 0.0% of Bruce Teele (Chairman), Don Argus, Ross Barker (MD), Terry 1.60 -5.0% Officer), G. Wilson, J. Abernethy and J. Gosse. 1.40 -10.0% Campbell, John Paterson, Fergus Ryan, Cathy Walter. 1.20 -15.0% Dividend Policy 1.00 -20.0% Since listing in 2004, ALF has paid consistent and 0.80 -25.0% 0.60 -30.0% progressive dividends to shareholders including special 0.40 -35.0% dividendsDividend Policy in years the fund has performed well. The board 0.20 -40.0% 0.00 -45.0% isAFIC also aims committed to provide to fully active franked capital dividends management growing havingat a rate Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 completedgreater than a inflation number and of sharean ideal buybacks level for theat times conservative when Prem/Disc (%) NTA (Pre-Tax $) Share Price ($) investor. Dividends have been funded by realised capital gains shares have been undervalued by the market. ALF has a Major Shareholdings as at 31 October 2012 largein the surplus past. of franking credits - since listing in 2004, the Top 10 Long Holdings % company has paid 65.5 cents of franked dividends. BHP Billiton 7.5%

Fee Structure Rio Tinto 7.4% Fee Structure The management expense ratio was 0.16% for the year ending The fund incurs a management fee of 1% of gross assets JB Hi-Fi Ltd 6.8% 30 June 2010. No performance fee. Benchmark S&P/ASX 200 as well as a 20% performance fee on an absolute return Maybe Pharma Group 6.5% Accumulation basis (returns have to be positive and the fund needs to National Australia Bank 6.3% outperform the All Ordinaries Accumulated Index). The Jumbo Interactive 5.5% fund also attracts cost directly related to its operations. Transurban Group 5.3% Telstra Corp 5.2% ANZ Banking Group 4.3% Woodside Petroleum 4.2% Website: www.australianleaders.com.au ABN 85 125 338 785 www.evansandpartners.com.au AFSL 318075 9 ASX Listed Investment Companies

AMCIL Limited (AMH) Share Price 31/10/2012 $0.76 Market Cap ($M) 159 InvestmentInvestment Style/Strategy Style/Strategy 12 Month Price Range $0.63 - $0.77 AmcilAmcil holds holds a diversifieda concentrated portfolio but of diversified stocks in its portfolio portfolio of Avg Weekly Volume 302,600 includingstocks in both its portfolio large and includingsmall cap. bothIt seeks large to provide and small cap. Performance (annual) 6 Mth 12 Mth 3 Yr 5 Yr investorsIt seeks towith provide capital investorsgrowth over with the capital medium growth to long over term AMH (Share Price) 4.7% 16.3% 8.9% 0.9% alongthe medium with the togeneration long term of aalong stream with of fullythe generationfranked of a NTA (Pre-tax) 3.1% 14.3% 8.2% 3.6% dividends - a subordinate, but nevertheless important stream of fully franked dividends - a subordinate, but ASX200 5.3% 10.3% 3.6% -3.5% objective. The company is an opportunistic investor and nevertheless important objective. FY10 FY11 FY12 focuses its investments on companies with sound Total Dividends (cents/share) 2.0 3.5 3.5 management,The company strong is an trackopportunistic record of executioninvestor andof business focuses Yield (last full year dividend) 4.6% strategyits investments and good on prospects companies for growth. with sound management, Historic Dividend Per Share (¢) June Year End strong track record of execution of business strategy 15 and good prospects for growth. Special Dividend Asset Allocation 10 AsAsset at the Allocation 31st of December 2009, AMH had 84.5% of its portfolio invested in long term securities, 2.5% invested in the As at the 30 Jun 2012, AMH had 93% of its portfolio 5 shortinvested term intrading long termportfolio securities, and 13% 1.6% or $19m invested held in in cash. the short term trading portfolio and 4.2% or $6.8m held in 0 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 cash. Investment Manager NTA Data (as at end of month) TheInvestment Investment Manager Committee is responsible for AMH's Last Reported: 31/10/2012 investmentAMH’s investment and trading decisions decision aremaking. driven The by committee the is NTA (Pre-Tax) $0.82 comprisedInvestment of BruceCommittee Teele (Chairman), with day to Ross day Barker, management Peter of Prem/Disc to Share Price -7.3% the portfolio and associated research done by an in Barnett, Terry Campbell, Rupert Myer, Richard Santamaria 1Yr Avg NTA Prem/Disc to Share Price -10% andhouse Stan investment Wallis. The dayteam to thatday administration, works in close research consultation and 5Yr Avg NTA Prem/Disc to Share Price -9% investmentwith the Chairman management and services Managing are undertakenDirector. The by NTA vs Share Price Chart AustralianInvestment Investment Committee Company is comprised Services underof Bruce a services Teele $ Prem/Disc % agreement.(Chairman), Ross Barker, Peter Barnett, Terry Campbell, 0.90 5.0% 0.85 Rupert Myer, Richard Santamaria and Stan Wallis. 0.0% 0.80 0.75 -5.0% DividendDividend Policy Policy 0.70 -10.0% 0.65 AMHAMH considers considers the the generation generation of dividend of dividend income income as a as a 0.60 -15.0% subordinatesubordinate objective objective to generatingto generating capital capital growth. growth. AMH's 0.55 -20.0% 0.50 dividend policy is to maximise distribution of available franking -25.0% AMH's dividend policy is to maximise distribution of 0.45 credits.available Dividend franking growth credits. may Dividendvary overtime growth as the may company vary 0.40 -30.0% Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 willovertime not distribute as the capitalcompany gains will unless not frankingdistribute credits capital have Prem/Disc (%) NTA (Pre-Tax $) Share Price ($) beengains generated. unless franking credits have been generated. Major Shareholdings Fee Structure as at 31 October 2012 % FeeManagement Structure fees were 0.85% annualised to 31 Commonwealth Bank 7.3% ManagementDecember 2011. fees were No performance 0.9% annualised based to 31 fees. December Oil Search 6.3% 2009.Benchmark No performance is S&P/ASX based 200 fees. Accumulation. Benchmark is S&P/ASX 200 ANZ Banking Group 5.1% Accumulation. Transurban Group 4.7% Tox-Free Solutions 4.6% Australian Infrastructure Fund 4.3% Telstra 4.3% BHP Billiton 4.3% Westpac Banking Group 4.3% Website: www.amcil.com.au National Australia Bank 4.1%

ABN 85 125 338 785 www.evansandpartners.com.au AFSL 318075 10 ASX Listed Investment Companies

Argo Investments Limited (ARG) Share Price 31/10/2012 $5.73 Market Cap ($M) 3603 InvestmentInvestment Style/StrategyStyle/Strategy 12 Month Price Range $4.97 - $5.77 Argo’sArgo’s objective objective is tois tomaximise maximise long-term long-term returns returns to to Avg Weekly Volume 688,775 shareholdersshareholders through through a balance a balance of capital of capital and dividend and dividend growth Performance (annual) 6 Mth 12 Mth 3 Yr 5 Yr viagrowth a diversified via a diversified portfolio of portfolio long-term of investments long-term in stocks ARG (Share Price) 11.4% 14.3% -1.6% -3.2% demonstratinginvestments in quality stocks management demonstrating and prospects quality for sound NTA (Pre-tax) 5.3% 10.2% 2.8% -2.5% earnings and dividend growth. The company only invests in management and prospects for sound earnings and ASX All Ords 4.0% 8.9% 3.5% -3.6% Australian companies and while the majority of the portfolio dividend growth. The company only invests in FY10 FY11 FY12 consistsAustralian of market companies leaders, and ARG’s while strategy the majority includes of investing the in Total Dividends (cents/share) 25.0 26.0 26.0 qualityportfolio smaller consists companies of market expected leaders, to generate ARG’s strategy strong Yield (last full year dividend) 4.5% returns.includes The investing company in is quality not a speculator smaller companies but rather has a Historic Dividend Per Share (¢) June Year End value-focused,expected to generate long-term strong investment returns. philosophy driven by its stock selection criteria. The portfolio contains approximately 40 140 company's and trust investments. Special Dividend The company is not a speculator but rather has a value- 30 focused, long-term investment philosophy driven by its 20 stock selection criteria. The portfolio contains approximately 140 companies and trust investments. 10 Asset Allocation 0 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 AsAsset at the Allocation 30 June 2010, ARG had ~93% of its portfolio invested inAs long at the term 31 equities Dec 2011, and 7%ARG or had $240m 95% in ofcash its reserves.portfolio NTA Data (as at end of month) invested in long term equities and 4.1% or $140m in Last Reported: 31/10/2012 cash reserves. NTA (Pre-Tax) $5.97

Prem/Disc to Share Price -4.0% Investment Manager Investment Manager 1Yr Avg NTA Prem/Disc to Share Price -7% Board: Christopher L. Harris (Chairman), Robert T. Rich, Board: Christopher Harris (Chairman), Robert J. Patterson 1% Marina S. Darling, Ian R. Johnson and Geoffrey I. Martin. 5Yr Avg NTA Prem/Disc to Share Price (MD), Robert Rich, Marina Darling, Ian Johnson and Ian Martin Management Team: Jason Beddow (CEO), Brenton R. NTA vs Share Price Chart $ Prem/Disc % Aird, Christopher C. Hall, Andrew B. Hill, Timothy C.A 9.00 20.0% 8.50 Binks. 15.0% 8.00 7.50 10.0% DividendDividend Policy Policy 7.00 5.0% 6.50 ARGARG aims aims to to provide provide an anincreasing increasing stream stream of fully of frankedfully 6.00 0.0% dividendsfranked dividendsto shareholders. to shareholders. Dividends have Dividends historically have only 5.50 -5.0% 5.00 -10.0% beenhistorically paid out only of income been paidreceived out fromof income investments. received from 4.50 4.00 -15.0% investments. Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12

Prem/Disc (%) NTA (Pre-Tax $) Share Price ($) Fee Structure FeeThe Structure management expense ratio was 0.18% for the year Major Shareholdings Theended management 30 June 2012. expense No ratio performance was 0.17% fee. for the Benchmark: year ended as at 31 October 2012 % 30All June Ordinaries 2010. No Accumulation. performance fee. Benchmark: All Ordinaries BHP Billiton 7.2% Accumulation. Westpac 6.3% ANZ Banking Group 5.4% Wesfarmers 4.6% Commonwealth Bank 4.2% Telstra 4.1% Milton Corporation 3.7% Rio Tinto 3.7% National Australia Bank 3.5% Website: www.argoinvestments.com.au Australia United Investment Co. 3.2%

ABN 85 125 338 785 www.evansandpartners.com.au AFSL 318075 11 ASX Listed Investment Companies

Australian United Investment Company Limited (AUI) Share Price 31/10/2012 $6.28 Market Cap ($M) 668 InvestmentInvestment Style/Strategy Style/Strategy 12 Month Price Range $5.21 - $6.35 AFICAUI aimsis an to investment provide a steady company stream which of fully seeks, franked through Avg Weekly Volume 69,135 dividendsportfolio and management, medium to long to reduce term capital risk and growth improve through Performance (annual) 6 Mth 12 Mth 3 Yr 5 Yr investmentincome from in a dividendsdiversified andset of interest quality stocksover the with longer AUI (Share Price) 8.1% 11.8% -0.1% -3.7% managementterm. AUI's fundsstrength are and invested disciplined in shares financial of metrics. companies The NTA (Pre-tax) 4.3% 8.1% 2.3% -3.5% focus is on S&P/ASX 200 stocks with a ‘nursery’ of smaller listed primarily in the ASX300. The company targets ASX300 Accum 4.9% 9.9% 3.4% -3.6% stocks with the capacity to develop into major businesses over medium to long term capital growth through a FY10 FY11 FY12 time. AFI looks to target stocks with good management, conservative investment strategy and relatively low Total Dividends (cents/share) 25.5 26.5 28.0 strongturnover free. cash flow, consistent margins and the ability to pay Yield (last full year dividend) 4.5% sustainable dividends. While the majority of assets lie in the Historic Dividend Per Share (¢) June Year End LongInvestments Term Investment are purchased Portfolio, or AFI subscribed also has a forTrading on the Portfolio,basis of cappedthe directors' at 10% ofassessment total portfolio, of their to take individual advantage 30 of shorter term opportunities in the market. 25 prospects for income and growth. The directors do not 20 invest by reference to any pre-determined policy that 15 any particular proportions of the capital will be 10 Assetinvested Allocation in particular investment sectors. 5 As at the 30 June 2010, AFIC had 96% of capital invested in 0 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 longAsset term Allocation equities, 1.5% in short-term trading assets and 2.5% orAs $115m at the in 31 cash. Dec 2011, AUI had 98% of capital ($744m) NTA Data (as at end of month) invested in listed equities and 0.3% or $2.6m in cash Last Reported: 31/10/2012 assets. The groups borrowings totalled ~$99m. AUI NTA (Pre-Tax) $6.84 maintain a gearing level of between 10-12%. Investment Manager Prem/Disc to Share Price -8.2%

AFIC’s investment decisions are driven by the Investment 1Yr Avg NTA Prem/Disc to Share Price -11% Investment Manager Committee with day to day management of the portfolio and 5Yr Avg NTA Prem/Disc to Share Price -6% associatedThe Board research has day is- todone-day by responsibility an in house investment for team management of the investment portfolio. The Board NTA vs Share Price Chart that works in close consultation with the Chairman and $ Prem/Disc % Managingcomprises Director. of 5 directors: The Investment Charles Committee Goode (Chairman), is comprised 11.00 15.0% Peter Wetherall, Professor John Rose, James Craig and 10.00 of Bruce Teele (Chairman), Don Argus, Ross Barker (MD), Terry 10.0% Giselle Roux. 9.00 Campbell, John Paterson, Fergus Ryan, Cathy Walter. 5.0% 8.00 Dividend Policy 7.00 0.0% 6.00 -5.0% AUI focus on maintaining and increasing dividend 5.00 -10.0% Dividendlevels. Through Policy the GFC, AUI was one of few LICs to not 4.00 lower dividends. AUI is eligible to distribute capital 3.00 -15.0% AFIC aims to provide fully franked dividends growing at a rate Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 gains to shareholders. greater than inflation and an ideal level for the conservative Prem/Disc (%) NTA (Pre-Tax $) Share Price ($) investor. Dividends have been funded by realised capital gains Major Shareholdings inFee the Structure past. The management expense ratio was 0.13% for the year as at 31 October 2012 % ending 30 June 2011. No performance fee. Benchmark BHP Billiton 8.7% FeeS&P/ASX Structure 300 Accumulation. ANZ Banking Group 8.1% The management expense ratio was 0.16% for the year ending Commonwealth Bank 7.0% 30 June 2010. No performance fee. Benchmark S&P/ASX 200 Westpac 6.8% Accumulation Rio Tinto 6.3% National Australia Bank 6.2% Wesfarmers 6.1% Woodside Petroleum 5.2% Woolworths 4.3% Website: www.aui.com.au Diversified United Investment Co. 3.9%

ABN 85 125 338 785 www.evansandpartners.com.au AFSL 318075 12 ASX Listed Investment Companies

BKI Investment Company Limited (BKI) Share Price 31/10/2012 $1.29 Market Cap ($M) 554 InvestmentInvestment Style/Strategy Style/Strategy 12 Month Price Range $1.13 - $1.30 BKIBKI looks looks to to make make long long term term investments investments in companies, in companies, trusts Avg Weekly Volume 822,501 andtrusts interest and interestbearing securities bearing securitieswith a focus with on Australiana focus on Performance (annual) 6 Mth 12 Mth 3 Yr 5 Yr entities.Australian With entities. the objective With ofthe generating objective an of increasing generating an BKI (Share Price) 8.4% 10.1% 5.4% 1.7% incomeincreasing stream income and long stream term andcapital long growth, term BKIcapital seeks growth, to NTA (Pre-tax) 3.9% 7.0% 5.1% 0.5% invest in well-managed businesses with a profitable history BKI seeks to invest in well-managed businesses with a ASX300 Accum 4.9% 9.9% 3.4% -3.6% and with the expectation of sound dividend and distribution profitable history and with the expectation of sound FY10 FY11 FY12 growth. dividend and distribution growth. Total Dividends (cents/share) 6.3 7.0 6.4

Yield (last full year dividend) 5.0% Asset Allocation Asset Allocation Historic Dividend Per Share (¢) June Year End As at 30 June 2012, BKI had a total investment portfolio As at the 30 June 2010, BKI had a total portfolio value of value of $550m. Of which $525m was invested in long 8 $551m, 91.4% of which was invested in long term equities and Special Dividend term equities and 4.5% or $25m was held in cash and 8.6% or $47.3m in cash and cash equivalents. 6 cash equivalents. 4

Investment Manager 2 InvestmentBKI has an internal Manager Portfolio Management team to 0 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 BKIprovide has an investment internal Portfolio advisory Management services toteam the to Board provide of investmentDirectors andadvisory its Investment services to the Committee. Board of Directors The and its NTA Data (as at end of month) InvestmentInvestment Committee. Committee The makes Investment the final Committee investment makes the Last Reported: 31/10/2012 finaldecisions investment and meetdecisions regularly and meet to review regularly the to portfolioreview the and NTA (Pre-Tax) $1.40 portfolio and is comprised of Thomas Millner, Robert Millner, is comprised of Thomas Millner, Robert Millner, Prem/Disc to Share Price -7.9% AlexanderAlexander Payne Payne and and Ian Ian Huntley Huntley 1Yr Avg NTA Prem/Disc to Share Price -11%

5Yr Avg NTA Prem/Disc to Share Price -13% Dividend Policy BKI aims to generate an increasing income stream for NTA vs Share Price Chart Dividend Policy $ Prem/Disc % distribution to its shareholders in the form of fully 1.80 30.0% BKI aims to generate an increasing income stream for 1.70 franked dividends. Dividends are declared out of 20.0% distribution to its shareholders in the form of fully franked 1.60 realised profit after tax, including interest, dividends 1.50 10.0% dividends.and other Dividends income receivedare declared from out investments of realised profit but after 1.40 tax, including interest, dividends and other income received 1.30 0.0% excluding realised capital profit from any disposals of 1.20 from investments but excluding realised capital profit from -10.0% long-term investments. 1.10 1.00 any disposals of long-term investments. -20.0% 0.90 Fee Structure 0.80 -30.0% Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12

The management expense ratio was 0.18% for the full Prem/Disc (%) NTA (Pre-Tax $) Share Price ($) year ending 30 June 2012. No performance fee. FeeBenchmark: Structure S&P/ASX 300 Accumulation. Major Shareholdings The management expense ratio was 0.19% as of 30 June 2010 as at 31 October 2012 % . No performance fee. Benchmark: S&P/ASX 300 New Hope Corp 10.6 Accumulation. Commonwealth Bank 9.0 NAB 9.0 BHP Billiton 7.8 Westpac 6.7 Telstra 5.0 Wesfarmers 4.4 Woolworths 3.7 ANZ 3.5 Website: www.bkilimited.com.au ALS Ltd 3.0

ABN 85 125 338 785 www.evansandpartners.com.au AFSL 318075 13 ASX Listed Investment Companies

Clime Capital Limited (CAM) Share Price 31/10/2012 $0.99 Market Cap ($M) 47 InvestmentInvestment Style/StrategyStyle/Strategy 12 Month Price Range $0.83 - $1.00 ContangoClime invests invests in ina adiversified diversified portfolioportfolio ofof microcap 20-25 ASX ($10- Avg Weekly Volume 104,788 $350m)listed securities, stocks listed including on the ASX debt with notes the objective and hybrids, of with Performance (annual) 6 Mth 12 Mth 3 Yr 5 Yr providingthe objective regular of payment finding highof franked recurrent dividends yield and from the strong CAM (Share Price) 12.7% 18.0% 7.3% -1.3% preservationbalance sheets of the or capital business base cash of the flows. Company. A ‘business NTA (Pre-tax) -0.9% 4.1% 3.0% -0.5% cycle’ approach is used such that macro-economic factors and ASX All Ords 4.0% 8.9% 3.5% -3.6% industry rotation analysis is used in conjunction with extensive A ‘macroeconomic overlay’ approach means that FY10 FY11 FY12 companyportfolio analysis allocation to identify between the cashmost (passive)attractive andinvestment invested Total Dividends (cents/share) 3.3 3.6 3.8 opportunities(active) is strategically in the microcap managed. universe. A macroeconomic The company's Yield (last full year dividend) 3.8% portfoliooverlay isusually combined consists with of around high conviction, 80-120 stocks. value investing resulting in a stable portfolio with low Historic Dividend Per Share (¢) June Year End turnover. 6.0 Asset Allocation 5.0 AsAsset at the Allocation 30 June 2010, CTN had 97% of its $176m portfolio 4.0 invested and retained cash and equivalends of 3% or $5.6m. 3.0 As at 30 September 2012, CAM had total equity market 2.0 exposure of 66.3% ; hybrid and interest bearing 1.0 securities exposure of 16.1%; and cash and equivalents 0.0 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 Investmentexposure of Manager 17.6% ($m). Top 3 sectors by equity CTNallocation is managed were by financials Contango (15.3%), Asset Management: materials (11.1%) David NTA Data (as at end of month) Stevensand consumer (Managing discretionary Director), Stephen (10.7%). Babidge (Chief Last Reported: 31/10/2012

Investment Officer), Carol Austin (Investment Services NTA (Pre-Tax) $1.12 Investment Manager Director), Alistair Francis (Senior Portfolio Manager), Bill Prem/Disc to Share Price -11.6% LaisterCAM is (Senior ultimately Portfolio managed Manager), by ClimeAndrew Investment Mouchacca (Senior 1Yr Avg NTA Prem/Disc to Share Price -22% PortfolioManagement Manager), Ltd (CIW):Paul Davoren John Abernethy (Portfolio Manager) (Executive and 5Yr Avg NTA Prem/Disc to Share Price -27% CraigDirector, Allen CIO),(Portfolio George Manager). Whitehouse(Portfolio Manager), Vincent Chin (Senior Analyst), Adrian Ezquerro NTA vs Share Price Chart $ Prem/Disc % (Analyst), Matthew Koroi (Analyst) and Alex Hughes 2 0.0% Dividend(Analyst). Policy 1.8 -5.0% CTN have recently announced it would pay dividends 1.6 -10.0% 1.4 -15.0% amountingDividend Policyto a 6% yield on the NTA per share prevailing at 1.2 -20.0% the beginning of the financial year (7.2cps payable through 1 -25.0% CAM aims to declare and pay ordinary and preference 0.8 -30.0% FY2011).share dividends The company each may quarter. also continue The current to pay portfolio additional has 0.6 -35.0% special dividends when favourable market circumstances 0.4 -40.0% a high level of income generation from its shares and 0.2 -45.0% allow.franking Where which profits CAM or passesretained on. earnings The company are not sufficient also to 0 -50.0% Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 meetdeclares the proposed bonus share yield, issues the lower to improve dividend liquiditywill be and Prem/Disc (%) NTA (Pre-Tax $) Share Price ($) augmentedmaintains ordinaryby an equivalent dividends capital across return these payment. bonus shares (two 1 for 20 issues in FY12). Major Shareholdings as at 31 October 2012 % FeeFee StructureStructure BHP Billiton Ltd 7.0 1.25%Management of funds under fee of management 1.00% of funds for year under ended management 30 June Telstra Corporation Ltd 6.1 2009.per annum. Performance Performance fee of 15% fee of ofany 20% out ofperformance any out above McMillan Shakespeare Ltd 5.9 theperformance S&P/ASX All above Ordinaries the S&P/ASXAccumulation All Ordinaries Index. ANZ Banking Group Ltd 5.6 Accumulation Index (absolute return basis); 20% of Multiplex SITES Trust 5.3 absolute performance if the index declines over the Woolworths Ltd 5.0 period. Westpac Banking Corporation 4.9 Brickworks Ltd 4.6 Commonwealth Bank of Australia 4.1 The Reject Shop Ltd 4.1 Website: www.clime.com.au ABN 85 125 338 785 www.evansandpartners.com.au AFSL 318075 14 ASX Listed Investment Companies

Contango Microcap Limited (CTN) Share Price 31/10/2012 $0.99 Market Cap ($M) 147 InvestmentInvestment Style/StrategyStyle/Strategy 12 Month Price Range $0.88 - $1.19 ContangoContango invests invests in ina diversified a diversified portfolio portfolio of microcap of microcap ($10- Avg Weekly Volume 916,455 $350m)($10-$350m) stocks listedstocks on listed the ASX on withthe ASXthe objective with the of objective Performance (annual) 6 Mth 12 Mth 3 Yr 5 Yr providingof providing regular regular payment payment of franked of franked dividends dividends and the and CTN (Share Price) -12.5% 11.5% 3.4% -7.2% preservationthe preservation of the ofcapital the capitalbase of basethe Company. of the Company. A ‘business NTA (Pre-tax) -12.2% -1.0% -1.9% -6.7% cycle’ approach is used such that macro-economic factors and ASX All Ords 4.0% 8.9% 3.5% -3.6% industry rotation analysis is used in conjunction with extensive A ‘business cycle’ approach is used such that macro- FY10 FY11 FY12 companyeconomic analysis factors to and identify industry the most rotation attractive analysis investment is used Total Dividends (cents/share) 7.0 7.2 8.5 opportunitiesin conjunction in thewith microcap extensive universe. company The analysiscompany's to Yield (last full year dividend) 8.6% portfolioidentify usuallythe most consists attractive of around investment 80-120 stocks. opportunities in the microcap universe. The company's portfolio usually Historic Dividend Per Share (¢) June Year End consists of around 60-100 stocks. 15 Asset Allocation Special Dividend AsAsset at the Allocation 30 June 2010, CTN had 97% of its $176m portfolio 10 invested and retained cash and equivalends of 3% or $5.6m. As at 31 March 2012, CTN had total equity market 5 exposure of $215.6m, of which 48% was invested in Resources and 45% in Industrials. The group's portfolio 0 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 Investmentwas invested Manager across 85 securities with the top 20 CTNholdings is managed representing by Contango ~40% Asset of the Management: portfolio. David NTA Data (as at end of month) Stevens (Managing Director), Stephen Babidge (Chief Last Reported: 31/10/2012 Investment Manager Investment Officer), Carol Austin (Investment Services NTA (Pre-Tax) $1.21 CTN is managed by Contango Asset Management: David Director), Alistair Francis (Senior Portfolio Manager), Bill Prem/Disc to Share Price -18.3% LaisterStevens (Senior (Managing Portfolio Director, Manager), CIO), Andrew Carol Mouchacca Austin (Senior 1Yr Avg NTA Prem/Disc to Share Price -22% Portfolio(Investment Manager), Services Paul Director), Davoren (Portfolio Bill Laister Manager) (Senior and 5Yr Avg NTA Prem/Disc to Share Price -27% CraigPortfolio Allen Manager(Portfolio Manager).& Manager of the CTN Investment Portfolio), Alistair Francis (Senior Portfolio Manager), , NTA vs Share Price Chart $ Prem/Disc % Andrew Mouchacca (Senior Portfolio Manager), Paul 2.50 30.0% DividendDavoren (PortfolioPolicy Manager) and Craig Allen (Portfolio 20.0% 2.00 CTNManager). have recently announced it would pay dividends 10.0% amounting to a 6% yield on the NTA per share prevailing at 1.50 0.0% the beginning of the financial year (7.2cps payable through -10.0% Dividend Policy 1.00 FY2011). The company may also continue to pay additional -20.0% CTN aims to pay dividends amounting to a 6% yield on -30.0% 0.50 specialthe NTA dividends per share when prevailing favourable at marketthe beginning circumstances of the -40.0% allow.financial Where year profits (7.2cps or retained paid in earningsFY2011 andare not 8.5cps sufficient for to 0.00 -50.0% Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 meetFY2012). the proposed The company yield, the may lower also dividend continue will to be pay Prem/Disc (%) NTA (Pre-Tax $) Share Price ($) augmentedadditional byspecial an equivalent dividends capital when return favourable payment. market circumstances allow. Where profits or retained earnings Major Shareholdings are not sufficient to meet the proposed yield, the lower as at 31 October 2012 % Feedividend Structure will be augmented by an equivalent capital McMillan Shakespeare 2.6 1.25%return of payment. funds under management for year ended 30 June M2 Telecommunications 2.5 2009. Performance fee of 15% of any out performance above Cardno Ltd 2.3 theFee S&P/ASX Structure All Ordinaries Accumulation Index. Beadell Resources 2.3 1.25% of funds under management per annum. Silver Lake Resources 2.2 Performance fee of 15% of any out performance above Tiger Resources 2.1 the S&P/ASX All Ordinaries Accumulation Index, subject Resolute Mining 2.0 to exceeding a high water mark. FlexiGroup 2.0 Senex Energy 2.0 G8 Education 2.0 Website: www.contango.com.au ABN 85 125 338 785 www.evansandpartners.com.au AFSL 318075 15 ASX Listed Investment Companies

Djerriwarrh Investments Limited (DJW) Share Price 31/10/2012 $3.99 Market Cap ($M) 872 InvestmentInvestment Style/Strategy Style/Strategy 12 Month Price Range $3.42 - $4.02 DJW’sDJW’s approach approach is builtis built on takingon taking a medium a medium to longer to longer term Avg Weekly Volume 391,684 viewterm of view value of with value a focus with on a focusthe top on 50 the ASX top shares 50 ASXby market Performance (annual) 6 Mth 12 Mth 3 Yr 5 Yr capitalisation.shares by market DJW aims capitalisation. to provide an DJW enhanced aims to level provide of an DJW (Share Price) 8.6% 13.9% 3.2% 0.1% dividendsenhanced and level growth of dividends in capital investedand growth in the in medium capital to NTA (Pre-tax) 4.9% 11.2% 3.0% -2.2% long term. The Company uses Exchange Traded Options to invested in the medium to long term. The company uses ASX50 7.3% 12.4% 4.2% -2.4% enhance income return (typically 20-50% of portfolio covered Exchange Traded Options to enhance income return FY10 FY11 FY12 dependent on market conditions), thus concentration on (typically 20-50% of portfolio covered dependent on Total Dividends (cents/share) 26.0 26.0 26.0 stocksmarket in theconditions), S&P/ASX 50thus Leaders concentration Index with on an stocksactive options in the Yield (last full year dividend) 6.5% marketS&P/ASX is an 50 additional Leaders considerationIndex with an to active their stock options selection Historic Dividend Per Share (¢) June Year End criteria.market The is an portfolio additional consists consideration of approximately to their 50 stocks.stock selection criteria. The portfolio consists of 30 approximately 50 stocks. 25 20 Asset Allocation 15 As at the 30 June 2010, DJW had 91% of its portfolio invested Asset Allocation 10 inAs equities at the (the31 Dec short 2011, term DJW trading had portfolio ~89% of accounted its portfolio for 5 1.3%invested of the in portfolio) equities and (the cash short totalled term $70m trading or 9%portfolio of the 0 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 portfolio.accounted for 2.1% of the portfolio) and cash totalled $34m or 4.3% of the portfolio. NTA Data (as at end of month) Investment Manager Last Reported: 31/10/2012 TheInvestment Investment Manager Committee approves all investment decisions, NTA (Pre-Tax) $3.37 reviewsDJW’s investmentthe performance decisions and sets are investment driven by policies.the It is Prem/Disc to Share Price 18.4% Investment Committee with day to day management of comprised of Bruce Teele (Chairman), Ross Barker, Terry 1Yr Avg NTA Prem/Disc to Share Price 14% the portfolio and associated research done by an in Campbell, Andrew Guy and John Paterson. The day to day 5Yr Avg NTA Prem/Disc to Share Price 11% maintenancehouse investment of the investment team that portfolioworks in and close associated consultation NTA vs Share Price Chart researchwith the is Chairman undertaken and by aManaging dealing team Director. within theThe $ Prem/Disc % Company'sInvestment associated Committee entity, is comprisedAustralian Investment of Bruce Teele Company 5.50 30.0% 25.0% Services,(Chairman), in close Ross consultation Barker, Terry with Campbell,the Chairman Andrew and Guy 5.00 20.0% Managingand John Director. Paterson. 4.50 15.0% 10.0% 4.00 DividendDividend Policy Policy 5.0% 3.50 0.0% DJWDJW seeks seeks to to provide provide enhanced enhanced fully fully franked franked dividend dividend income -5.0% 3.00 throughincome its through investment, its investment, option writing option and trading writing portfolio and -10.0% 2.50 -15.0% activities.trading portfolio Dividends activities. may be sourced Dividends from maycurrent be yearsourced profits, Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 retainedfrom current profits year and profitsprofits, from retained the sale profits of investments and profits Prem/Disc (%) NTA (Pre-Tax $) Share Price ($) from the sale of investments Major Shareholdings Fee Structure as at 31 October 2012 % FeeThe Structure management expense ratio was 0.41% as at 31 BHP Billiton 10.6% TheDecember management 2011 expense on an annualised ratio was 0.37% basis. on No an annualised Commonwealth Bank 8.5% basis.performance No performance fee. Benchmark: fee. Benchmark: S&P/ASX S&P/ASX 50 50 ANZ Banking Group 7.9% Accumulation.Accumulation. Westpac 7.6% Telstra 7.2% NAB 6.7% Oil Search 4.8% Woodside Petroleum 4.2% AMP 3.3% Website: www.djerri.com.au Hastings Diversified Utilities Fund 3.1%

ABN 85 125 338 785 www.evansandpartners.com.au AFSL 318075 16 ASX Listed Investment Companies

Diversified United Investment Limited (DUI) Share Price 31/10/2012 $2.72 Market Cap ($M) 458 InvestmentInvestment Style/Strategy Style/Strategy 12 Month Price Range $2.26 - $2.77 AFICDUI aims is an to investment provide a steady company stream founded of fully infranked 1991 which Avg Weekly Volume 111,501 dividendsseeks, through and medium portfolio to long diversification term capital growthand through Performance (annual) 6 Mth 12 Mth 3 Yr 5 Yr investmentprofessional in a management, diversified set ofto quality improve stocks its incomewith from DUI (Share Price) 9.4% 15.4% -0.1% -4.4% managementdividends and strength interest and over disciplined the longer financial term metrics. within The an NTA (Pre-tax) 6.4% 11.8% 2.4% -3.5% focus is on S&P/ASX 200 stocks with a ‘nursery’ of smaller acceptable level of risk. The company takes a medium ASX300 Accum 4.9% 9.9% 3.4% -3.6% stocks with the capacity to develop into major businesses over to long term view investing in Australian equities and FY10 FY11 FY12 time. AFI looks to target stocks with good management, short term deposits. Total Dividends (cents/share) 13.0 13.0 13.0 strong free cash flow, consistent margins and the ability to pay Yield (last full year dividend) 4.8% sustainableAsset Allocation dividends. While the majority of assets lie in the Historic Dividend Per Share (¢) June Year End LongAs at Term the Investment30 Jun 2012, Portfolio, DUI had AFI ~95% also has of capitala Trading Portfolio,($496m) capped invested at 10%in listed of total equities portfolio, and to 4.5% take oradvantage $23.5m 15 of shorter term opportunities in the market. in cash and short term receivables. The groups 10 borrowings totalled $65m. DUI maintain a gearing level of between 10-12%. 5 Asset Allocation AsInvestment at the 30 June Manager 2010, AFIC had 96% of capital invested in 0 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 longThe term Board equities, has day 1.5%-to -inday short-term responsibility trading for assets and 2.5% ormanagement $115m in cash. of the investment portfolio. The Board NTA Data (as at end of month) comprises of 4 directors: Charles Goode (Chairman), Last Reported: 31/10/2012 Anthony Burgess, Stephen Hiscock and Pierre Prentice. NTA (Pre-Tax) $2.98

Investment Manager Prem/Disc to Share Price -8.7% Dividend Policy AFIC’s investment decisions are driven by the Investment 1Yr Avg NTA Prem/Disc to Share Price -12% DUI focus on maintaining and increasing dividend Committee with day to day management of the portfolio and 5Yr Avg NTA Prem/Disc to Share Price -7% associatedlevels. Through research the is doneGFC, byDUI an was in house one ofinvestment few LICs teamto not lower dividends. DUI is eligible to distribute capital NTA vs Share Price Chart that works in close consultation with the Chairman and $ Prem/Disc % Managinggains to shareholders.Director. The Investment Committee is comprised 4.50 5.0%

4.00 of Bruce Teele (Chairman), Don Argus, Ross Barker (MD), Terry 0.0% Fee Structure Campbell, John Paterson, Fergus Ryan, Cathy Walter. 3.50 The management expense ratio was 0.17% for the year -5.0% 3.00 ending 30 June 2012. No performance fee. Benchmark -10.0% S&P/ASX 300 Accumulation. 2.50 -15.0% Dividend Policy 2.00 1.50 -20.0% AFIC aims to provide fully franked dividends growing at a rate Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 greater than inflation and an ideal level for the conservative Prem/Disc (%) NTA (Pre-Tax $) Share Price ($) investor. Dividends have been funded by realised capital gains Major Shareholdings in the past. as at 31 October 2012 % BHP Billiton 9.1% Fee Structure ANZ Banking Group 8.5% The management expense ratio was 0.16% for the year ending Commonwealth Bank 8.1% 30 June 2010. No performance fee. Benchmark S&P/ASX 200 Westpac 7.2% Accumulation Woodside Petroleum 6.4% National Australia Bank 5.6% Rio Tinto 5.3% CSL Ltd 4.7% QBE Insurance Group 3.7% Website: www.dui.com.au Woolworths 3.6%

ABN 85 125 338 785 www.evansandpartners.com.au AFSL 318075 17 ASX Listed Investment Companies

Milton Corporation Limited (MLT) Share Price 31/10/2012 $17.04 Market Cap ($M) 2073 InvestmentInvestment Style/Strategy Style/Strategy 12 Month Price Range $14.24 - $17.04 MiltonMilton is isa longa long term term investor investor in a indiversified a diversified portfolio portfolio of well Avg Weekly Volume 113,545 managedof well managed companies companies and trusts withand atrusts profitable with historya profitable and Performance (annual) 6 Mth 12 Mth 3 Yr 5 Yr anhistory expectation and an of expectation increasing dividends of increasing and distributions. dividends andIn MLT (Share Price) 10.7% 16.5% 3.4% -1.7% addition,distributions. MLT invests In addition, in real property Milton invests development, in real fixedproperty NTA (Pre-tax) 4.2% 10.4% 3.9% -1.9% interest securities and liquid assets such as cash and bank bills. development, fixed interest securities and liquid assets ASX All Ords 4.0% 8.9% 3.5% -3.6% Milton hold approximately 150 investments within its such as cash and bank bills. Milton hold approximately FY10 FY11 FY12 portfolio. 150 investments within its portfolio. Total Dividends (cents/share) 71.0 76.0 78.0 MiltonMilton is isnot not a speculative a speculative investor investor and doesand doesnot sell not its sell assets its Yield (last full year dividend) 4.6% toassets increase to increaseprofit for profitdistribution for distribution to shareholders. to Capital Historic Dividend Per Share (¢) June Year End profitsshareholders. are reinvested Capital by profitsthe Company are reinvested for the benefit by the of shareholders. 120 Company for the benefit of shareholders. Special Dividend 100

Asset Allocation 80 Milton's merger with Choiseul Investments Limited 60 As(CHO) at the became 30 June effective2010, 90.5% on ($1,453m)2 December of the 2010. portfolio was 40 invested in equities, 7.2% ($116m) in cash and equivalents and 20 2.2%Asset ($36m) Allocation in other assets. 0 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 As at the 31 Dec 2011, 91% ($1,825m) of the portfolio was invested in equities, 5.9% ($117m) in cash and NTA Data (as at end of month) Investmentequivalents Manager and 1.1% ($22m) in other assets. Last Reported: 31/10/2012 MLT is internally managed by its Investment Committee, NTA (Pre-Tax) $17.55 comprisedInvestment of three Manager non-executive directors and the managing Prem/Disc to Share Price -2.9% MLT is internally managed by its Investment director. The Committee meets regularly to review the 1Yr Avg NTA Prem/Disc to Share Price -8% Committee, comprised of three non-executive directors investment portfolio and to make investment decisions within 5Yr Avg NTA Prem/Disc to Share Price -4% definedand the limits. managing Board: director. Francis Gooch The Committee(Managing Director), meets NTA vs Share Price Chart Robertregularly Millner to review (Chairman), the investment John Aitken, portfolio John Church, and Graeme to $ Prem/Disc % Crampton,make investment David Myles, decisions Ian Pollard within defined limits. Board: 25.00 15.0%

Francis Gooch (Managing Director), Robert Millner 23.00 10.0% (Chairman), John Aitken, John Church, Graeme 21.00 5.0% Crampton, David Myles, Ian Pollard 19.00 0.0% Dividend Policy 17.00 -5.0% MLT’sDividend objective Policy is to pay increasing fully franked dividends to 15.00 shareholders.MLT’s objective The companyis to pay hasincreasing sufficient fully franking franked credits to 13.00 -10.0% 11.00 -15.0% ensuredividends future to dividends shareholders. will be The fully company franked. has sufficient Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12

franking credits to ensure future dividends will be fully Prem/Disc (%) NTA (Pre-Tax $) Share Price ($) franked. Major Shareholdings FeeFee Structure Structure as at 31 October 2012 % TheThe management management expense expense ratio ratio was was0.20% 0.17% as at as31 atDecember 30 Westpac 12.4% 2009.June No2011. performance No performance fee. Benchmark: fee. Benchmark: All Ordinaries All Commonwealth Bank 8.1% Accumulation.Ordinaries Accumulation. Washington H Soul Pattinson 5.7% National Australia Bank 5.3% BHP Billiton 5.1% ALS Ltd 4.7% Wesfarmers 4.6% Woolworths 3.6% ANZ Banking Group 3.4% Website: www.milton.com.au Telstra 2.5%

ABN 85 125 338 785 www.evansandpartners.com.au AFSL 318075 18 ASX Listed Investment Companies

Mirrabooka Investments Limited (MIR) Share Price 31/10/2012 $2.10 Market Cap ($M) 289 InvestmentInvestment Style/Strategy Style/Strategy 12 Month Price Range $1.64 - $2.15 MirrabookaMirrabooka is isa listeda listed investment investment company company that aims that toaims to Avg Weekly Volume 512,140 provideprovide medium medium to tolong long term term investment investment gains gains through through Performance (annual) 6 Mth 12 Mth 3 Yr 5 Yr holdingholding core core investments investments in selected in selected small small and medium and medium sized MIR (Share Price) 13.6% 29.4% 6.3% 2.2% companiessized companies (located (located within Australia within andAustralia New Zealand) and New and to NTA (Pre-tax) 2.5% 15.4% 8.6% 0.5% provide attractive dividend returns to shareholders from these Zealand) and to provide attractive dividend returns to S&P Midcap/Small Ords -4.5% -0.5% -0.1% -7.8% investments. Of particular interest are companies with shareholders from these investments. Of particular FY10 FY11 FY12 relatively low price earnings ratios and high dividend yields. interest are companies with relatively low price Total Dividends (cents/share) 10.0 10.0 10.0 Theearnings Company ratios typically and high holds dividend between yields.50 to 80 The stocks Company Yield (last full year dividend) 4.8% dependingtypically holds on their between fit with the50 toinvestment 80 stocks aims depending and the on Historic Dividend Per Share (¢) June Year End desiredtheir fit concentration with the investment of risk within aims the and portfolio. the desired concentration of risk within the portfolio. 12 10 8 AssetAsset Allocation Allocation 6 As at the 30 June 2010, MIR had a total portfolio value of As at the 31 Dec 2011, MIR had a total portfolio value of 4 $219m,$256.234m, 93% of 92.7% which ofwas which invested was in invested long-term in equities, long-term 0.9% 2 inequities, a short term 0.3% trading in a short portfolio term and trading 5.5% orportfolio $12.2m and in cash. 6.2% 0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 or $15.9m in cash. NTA Data (as at end of month) InvestmentInvestment Manager Manager Last Reported: 31/10/2012 TheMIR’s Investment investment Committee decisions is comprised are driven of: by Terry the Campbell NTA (Pre-Tax) $1.98 (Chairman),Investment Ross Committee Barker (Managing with day Director), to day management David of Prem/Disc to Share Price 6.1% the portfolio and associated research done by an in Meiklejohn and Graeme Sinclair. The Company’s investment 1Yr Avg NTA Prem/Disc to Share Price -4% house investment team that works in close consultation decisions are made by the Investment Team and are reviewed 5Yr Avg NTA Prem/Disc to Share Price -2% bywith the the Investment Chairman Committee. and Managing Director. The Investment Committee is comprised of Terry Campbell NTA vs Share Price Chart $ Prem/Disc % (Chairman), Ross Barker (Managing Director), David 2.80 20.0% DividendMeiklejohn Policy , Ian Campbell and Graeme Sinclair. 2.60 15.0% It is the intention of the Board to pay out a reasonable fully 2.40 10.0% 2.20 5.0% frankedDividend dividends Policy to the extent that the performance of the 2.00 0.0% company may prudently allow. Dividends on occasions have 1.80 It is the intention of the Board to pay out a reasonable -5.0% been sourced from realised gains. 1.60 fully franked dividends to the extent that the 1.40 -10.0% performance of the company may prudently allow. 1.20 -15.0% Dividends on occasions have been sourced from 1.00 -20.0% Fee Structure Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 realised gains. Management expenses - 0.81% for the financial year to 30 Prem/Disc (%) NTA (Pre-Tax $) Share Price ($)

June 2009. Benchmark: S&P Midcap (50%); Small Acc (50%) Fee Structure Major Shareholdings Management expense ratio was 0.84% for the year to as at 31 October 2012 % 31 December 2011. Benchmark: S&P Midcap (50%); Australian Infrastructure Fund 6.3% Small Acc (50%) Tox-Free Solutions 5.3% ALS 5.1% Oil Search 4.5% Hastings Diversified Utilities Fund 4.5% James Hardie Industries 4.2% IRESS 3.8% Austrbrokers Holdings 3.6% Ansell 3.6% Website: www.mirra.com.au InvoCare 3.4%

ABN 85 125 338 785 www.evansandpartners.com.au AFSL 318075 19 ASX Listed Investment Companies

WAM Capital Limited (WAM) Share Price 31/10/2012 $1.61 Investment Style/Strategy Market Cap ($M) 223 InvestmentWAM invests Style/Strategy in ASX listed securities and concentrates on 12 Month Price Range $1.39 - $1.65 AFICidentifying aims to undervalued provide a steady growth stream companies of fully - frankedtypically small Avg Weekly Volume 322,250 dividendsto medium and industrial medium companies. to long term There capital are growth two through Performance (annual) 6 Mth 12 Mth 3 Yr 5 Yr investmentinvestment inapproaches a diversified which set ofare quality employed stocks to with assist in WAM (Share Price) 3.4% 19.8% 13.1% 3.5% determining investment decisions: 1) Research Driven and management strength and disciplined financial metrics. The NTA (Pre-tax) 7.5% 11.4% 7.1% 2.8% focus2) Market is on S&P/ASXDriven. 200 stocks with a ‘nursery’ of smaller ASX All Ords 4.0% 8.9% 3.5% -3.6% stocks with the capacity to develop into major businesses over Research Driven investing - extensive research, focusing on FY10 FY11 FY12 time. AFI looks to target stocks with good management, free cash flow, then rating the company’s management, strong free cash flow, consistent margins and the ability to pay Total Dividends (cents/share) 8.0 10.0 11.0 earnings growth potential, valuation, industry position and sustainable dividends. While the majority of assets lie in the Yield (last full year dividend) 6.8% catalyst for share price growth. Market Driven investing - Historic Dividend Per Share (¢) June Year End Longaims Termto take Investment advantage Portfolio, of short- termAFI also relative has a arbitrage Trading Portfolio,opportunities capped and at mispricing 10% of total in the portfolio, market. to take advantage 20 of shorter term opportunities in the market. 15 For each position taken WAM generally employs a stop loss strategy for when a company's share price falls below 10% 10 of cost price. The Company has the flexibility to short sell 5 Asset Allocation securities. We note, this has never been more than 10% of As at the 30 June 2010, AFIC had 96% of capital invested in 0 the portfolio. If the manager does not identify a catalyst FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 longunder term the equities,Research 1.5% Driven in short-termapproach or trading a trading assets and 2.5% oropportunity $115m in cash.under the Market Driven approach, we revert NTA Data (as at end of month) to cash. The average net cash position held since inception Last Reported: 31/10/2012 has been 32.1%. NTA (Pre-Tax) $1.64

-1.9% InvestmentAsset Allocation Manager Prem/Disc to Share Price AFIC’sAs at 30 investment June 2012, decisions WAM had are 54% driven of its by portfolio the Investment invested 1Yr Avg NTA Prem/Disc to Share Price -5% Committeein Equities. withCash dayand to Fixed day managementInterest made of up the 46% portfolio of the and 5Yr Avg NTA Prem/Disc to Share Price -17% associatedportfolio, totalling research $173.1m. is done by an in house investment team NTA vs Share Price Chart that works in close consultation with the Chairman and $ Prem/Disc % ManagingInvestment Director. Manager The Investment Committee is comprised 2.30 0.0% ofThe Bruce Board Teele is responsible (Chairman), for Don managing Argus, Ross market Barker risk. (MD), Terry 2.10 -5.0% Managers report directly to the Board regularly, regarding 1.90 -10.0% Campbell, John Paterson, Fergus Ryan, Cathy Walter. 1.70 -15.0% the performance of their fund. An Audit and Risk 1.50 -20.0% Committee reviews risk profiles and reports back to the 1.30 -25.0% Board on the effectiveness of internal control operations. 1.10 -30.0% 0.90 -35.0% Dividend Policy 0.70 -40.0% Dividend Policy 0.50 -45.0% WAM's intention is to provide an increasing stream of fully Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 franked dividends to shareholders providing it has Prem/Disc (%) NTA (Pre-Tax $) Share Price ($) sufficient franking credits and it is within prudent business Major Shareholdings practises. as at 31 October 2012 %

Fee Structure Alesco Corporation 2.9% FeeThe StructureManager, Wilson Asset Management Pty Ltd is paid a Ironbark Capital Ltd 2.5% Themanagement management fee ofexpense 1% p.a ratio of gross was assets.0.16% for In theaddition year endingto Century Australia Investments 2.4% 30this June it is 2010.also paid No performanceannually in arrears fee. Benchmark a performance S&P/ASX fee of 200 Emerging Leaders Investments 2.1% 20% of where the amount by which the Value of the Accumulation Breville Group 1.6% Portfolio has exceeded the increase in the All Ordinaries Accumulation Index or 20% of the value of the portfolio in Ingenia Communities Group 1.6% the event the All Ordinaries Accumulation index has fallen. RHG Ltd 1.6% CSR Ltd 1.5% Automotive Holdings Group Ltd 1.5% NEXTDC Ltd 1.5% Website: www.wamfunds.com.au ABN 85 125 338 785 www.evansandpartners.com.au AFSL 318075 20 ASX Listed Investment Companies

Whitefield Limited (WHF) Share Price 31/10/2012 $3.06 Market Cap ($M) 232 Investment Style/Strategy Investment Style/Strategy 12 Month Price Range $2.42 - $3.09 Whitefield is Australia's oldest listed investment AFICcompany, aims to listing provide in a1923, steady and stream holds of afully diversified franked Avg Weekly Volume 110,810 dividends and medium to long term capital growth through portfolio of listed Australian shares & equities. The Performance (annual) 6 Mth 12 Mth 3 Yr 5 Yr investment in a diversified set of quality stocks with portfolio is focused only on Industrial stocks, consisting WHF (Share Price) 14.4% 21.0% 0.6% -4.2% management strength and disciplined financial metrics. The of ~60 holdings , predominantly from the ASX 100. NTA (Pre-tax) 8.9% 18.2% 2.1% -4.4% focus is on S&P/ASX 200 stocks with a ‘nursery’ of smaller ASX 200 Industrials -7.0% 5.6% 0.0% -10.3% stocks with the capacity to develop into major businesses over Whitefield seeks to hold investments which are capable FY10 FY11 FY12 time. AFI looks to target stocks with good management, of providing a robust rate of investment return through (cents/share) strong free cash flow, consistent margins and the ability to pay Total Dividends 17.0 17.0 17.0 sustainablethe generation dividends. of earnings While the and majority earnings of assetsgrowth lie overin the Yield (last full year dividend) 5.6% Longmultiple Term future Investment years. Portfolio, The investment AFI also has processes a Trading Historic Dividend Per Share (¢) June Year End primarily focus on the monitoring and analysis of the Portfolio, capped at 10% of total portfolio, to take advantage 20 ofachievable shorter term future opportunities earnings inwhich the market. may be generated from investments, the risk or certainty of delivering 15 those earnings, and the potential return which may 10 progressively accrue to investors. 5 Asset Allocation As at the 30 June 2010, AFIC had 96% of capital invested in 0 Whitefield structures its investment portfolio to give FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 longemphasis term equities, to those 1.5% investments in short-term offering trading a favourableassets and 2.5% orbalance $115m of in potentialcash. return and certainty. NTA Data (as at end of month) Last Reported: 31/10/2012 Asset Allocation NTA (Pre-Tax) $3.32 InvestmentAs at 31 March, Manager the portfolio consisted of $228m in Prem/Disc to Share Price -7.8% AFIC’sinvestments investment and decisions $3.2m in are cash driven & cash by the equivalents. Investment The 1Yr Avg NTA Prem/Disc to Share Price -11% Committeefunds biggest with sectorday to dayexposures management were ofBanks the portfolio (32%), and 5Yr Avg NTA Prem/Disc to Share Price -10% associatedFinancials research (15%) and is done Industrials by an in (14%). house investment team NTA vs Share Price Chart that works in close consultation with the Chairman and $ Prem/Disc % ManagingInvestment Director. Manager The Investment Committee is comprised 5.60 0.0% 5.10 ofAll Bruce of Whitefield’s Teele (Chairman), investment Don Argus, personnel Ross Barker are employed (MD), Terry -5.0% Campbell,by White JohnFunds Paterson, Management Fergus Ryan,Pty Ltd. Cathy White Walter. Funds 4.60 4.10 -10.0% Management (and its predecessor entities and 3.60 personnel) have been responsible for the business and 3.10 -15.0% investment of Whitefield since inception. 2.60 -20.0% DividendBoard: Angus Policy Gluskie (CEO), David Iliffe, Graeme J. 2.10 1.60 -25.0% AFICGillmore, aims to Martin provide J. fullyFowler. franked Peter dividends A. Roberts growing (Company at a rate Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 greaterSecretary). than inflation and an ideal level for the conservative Prem/Disc (%) NTA (Pre-Tax $) Share Price ($) investor. Dividends have been funded by realised capital gains Major Shareholdings inDividend the past. Policy as at 30 September 2012 % To pay out close to underlying earnings. Whitefield has maintained its dividend at the same level since FY09, Commonwealth Bank 9.3% Feeand Structureexpects to maintain this rate until such time as Westpac 7.9% Theunderlying management EPS excess expense the ratio DPS was rate. 0.16% The for company the year hasending ANZ 6.9% 30excess June franking2010. No creditsperformance of ~$19m. fee. Benchmark S&P/ASX 200 National Aust. Bank 6.0% Accumulation Telstra 4.3% Fee Structure Wesfarmers 3.8% Whitefield has maintained a management expense ratio Macquarie Group 3.7% of approximately 0.35% of assets. Woolworths 3.7% CSL Ltd 3.6% AMP Ltd 2.7% Website: www.whitefield.com.au ABN 85 125 338 785 www.evansandpartners.com.au AFSL 318075 21 ASX Listed Investment Companies

Westoz Investment Company Limited (WIC) Share Price 31/10/2012 $1.00 Market Cap ($M) 129 InvestmentInvestment Style/Strategy Style/Strategy 12 Month Price Range $0.83 - $1.05 AFICWestoz aims (WIC)to provide is a Westerna steady stream Australian of fully focused franked Avg Weekly Volume 230,561 dividends"Growth" and oriented medium investment to long term company capital growth that wasthrough Performance (annual) 6 Mth 12 Mth 3 Yr 5 Yr investmentestablished in ina diversified 2005 and set listed of quality in September stocks with 2009. The WIC (Share Price) 0.0% 12.4% 7.0% n/a managementcompany has strength an absolute and disciplined return focus financial and metrics. a mandate The NTA (Pre-tax) 1.5% 11.4% 3.5% 1.7% focus is on S&P/ASX 200 stocks with a ‘nursery’ of smaller to identify undervalued companies with growth All Ords 4.0% 8.9% 3.5% -3.6% stocks with the capacity to develop into major businesses over potential on a medium to long term investment FY10 FY11 FY12 time. AFI looks to target stocks with good management, outlook. As a wholly owned subsidiary of Euroz Total Dividends (cents/share) 10.0 11.0 4.0 strongLimited, free Westoz cash flow, Funds consistent Management's margins and investment the ability to pay Yield (last full year dividend) 4.0% sustainabledecisions aredividends. leveraged While off the the majority Euroz ofSecurities assets lie in the Historic Dividend Per Share (¢) June Year End Longresearch Term andInvestment the group's Portfolio, intimate AFI also knowledge has a Trading and Portfolio,connection capped to Western at 10% of Australia. total portfolio, to take advantage 15 of shorter term opportunities in the market. *2006-2009 Dividends Pre-Listing 10 WIC has a concentrated portfolio that typically holds 10-20 stocks, primarily small caps with a market 5 Assetcapitalisation Allocation of between $100m and $1bn. The focus Asis aton the high 30 convictionJune 2010, AFICstock had selection 96% of capitalwith the invested ability in to 0 FY06 FY07 FY08 FY09 FY10 FY11 FY12 longhold term high equities, proportions 1.5% in of short-term cash should trading no suitable assets and 2.5% orinvestments $115m in cash. be identified. NTA Data (as at end of month) Last Reported: 31/10/2012 Asset Allocation NTA (Pre-Tax) $1.44 As at 31 March 2012, 44% of the portfolio was Investment Manager Prem/Disc to Share Price -30.7% allocated across Resources, 34% Industrials and held AFIC’s investment decisions are driven by the Investment 1Yr Avg NTA Prem/Disc to Share Price -31% 22% in Cash. Committee with day to day management of the portfolio and 5Yr Avg NTA Prem/Disc to Share Price -31% associated research is done by an in house investment team Investment Manager NTA vs Share Price Chart that works in close consultation with the Chairman and $ Prem/Disc % ManagingThe portfolio Director. is managed The Investment by Westoz Committee Funds is comprised 1.80 50.0% 40.0% Management, a 100% owned subsidiary of Euroz 1.60 of Bruce Teele (Chairman), Don Argus, Ross Barker (MD), Terry 30.0% Limited. Board of Directors: Peter Diamond 20.0% Campbell, John Paterson, Fergus Ryan, Cathy Walter. 1.40 (Chairman), Jay Hughes, Philip Rees and Terry Budge. 10.0% 1.20 0.0% -10.0% 1.00 Dividend Policy -20.0% -30.0% 0.80 DividendThe company's Policy dividend policy is to pay out a minimum -40.0% of 50% of realised after tax profits. FY11 DPS totalled 0.60 -50.0% AFIC aims to provide fully franked dividends growing at a rate Sep-09 Sep-10 Sep-11 11cps fully franked. greater than inflation and an ideal level for the conservative Prem/Disc (%) NTA (Pre-Tax $) Share Price ($) investor. Dividends have been funded by realised capital gains Major Shareholdings inFee the Structure past. Management fee is 1% with performance incentives of as at 30 June 2012 % 20% of returns in excess of 10% p.a. iiNet Limited 14.0% Fee Structure Automotive Holdings 11.0% The management expense ratio was 0.16% for the year ending Aurora Oil & Gas Limited 9.0% 30 June 2010. No performance fee. Benchmark S&P/ASX 200 Regis Resources 9.0% Accumulation Clough Ltd 8.0% Northern iron Ltd 7.0% Resolute Mining 5.0% Teranga Gold Corporation 3.0% Other 18.0% Website: www.westozfunds.com.au Cash 15.0%

ABN 85 125 338 785 www.evansandpartners.com.au AFSL 318075 22 ASX Listed Investment Companies

Magellan Flagship Fund Limited (MFF) Share Price 31/10/2012 $0.93 Market Cap ($M) 321 Investment Style/Strategy Investment Style/Strategy 12 Month Price Range $0.65 - $0.95 MFF focus on a portfolio of listed international and MFFAustralian focus on companies a portfolio ofwith listed outstanding international business and Australian Avg Weekly Volume 1,070,854 companies with outstanding business characteristics, at a characteristics, at a discount to their intrinsic values. Performance (annual) 6 Mth 12 Mth 3 Yr 5 Yr discount to their intrinsic values. MFF believes that, by MFF believes that, by investing in such a portfolio, MFF (Share Price) 12.7% 43.1% 18.4% 2.3% investing in such a portfolio, superior risk-adjusted investment superior risk-adjusted investment returns may be NTA (Pre-tax) 0.9% 25.9% 12.4% 0.9% returns may be generated over the medium to long term. generated over the medium to long term. MSCI A$ 1.1% 8.5% 0.7% -7.0% More than 95% of MFF's total investment assets by market More than 80% of MFF's total investment assets by value are in global multinationals (being entities that generate market value are in global multinationals (being entities June Year End FY11 FY12 50% or more of their revenue and/or have material operations FY10 inthat 15 or generate more countries 50% or outside more of the their domicile revenue of their and/or primary have Total Dividends (cents/share) 0.0 0.0 1.0 securitiesmaterial exchange), operations with in 15 a majority or more of countries the balance outside being the predominantlydomicile of their North primary American securities focused exchange),- the revenue with and a majority of the balance being predominantly North earnings split for the multinationals average about 40% USA, NTA Data (as at end of month) American focused and 7.5% China focused. Revenue and 30% Europe and 30% ROW (as at 31 Dec 2009). Last Reported: 31/10/2012 earnings split for the multinationals average about 40% $0.97 USA, 25% Europe and ~33% ROW (as at 31 March 2012). NTA (Pre-Tax) Prem/Disc to Share Price -4.3% AssetAsset Allocation Allocation 1Yr Avg NTA Prem/Disc to Share Price -12% AsAs at at the 30 31st Jun of2012, December MFF had 2009, $307m MFF had in investments its $332m portfolio at 5Yr Avg NTA Prem/Disc to Share Price -15% fullymarket invested, value including and no $64mdebt. in borrowings. NTA vs Share Price Chart InvestmentInvestment Manager Manager $ Prem/Disc % MagellanMagellan Asset Asset Management Management is the Limited investment (MAML) manager is the 1.10 10.0% 1.00 5.0% whichInvestment has been Manager. established MAML to, initially, is a wholly provide owned investment 0.90 0.0% -5.0% managementsubsidiary of services the ASX to listedMFF. InvestmentMagellan FinancialPersonnel: Group Chris 0.80 -10.0% MackayLimited. (Chairman Investment and ChiefPersonnel: Investment Chris Officer), Mackay Hamish (Chairman 0.70 -15.0% Douglassand Chief (Chief Investment Executive Officer), Officer and Hamish Managing Douglass Director), (Chief 0.60 -20.0% GeraldExecutive Stack, Officer Dom Giuliano and Managing and Nikki Director), Thomas. Directors: Gerald Stack, Dick 0.50 -25.0%

0.40 -30.0%

07 08 09 10 11 12

07 08 09 10 11 12

06 07 08 09 10 11

- - - - -

Warburton, John Ballard, Andy Hogendijk, Chris Mackay and -

------

- - - - -

Dom Giuliano and Nikki Thomas. Directors: Dick -

Apr Apr Apr Apr Apr Apr

Dec Dec Dec Dec Dec Dec

Aug Aug Aug Aug Aug HamishWarburton, Douglass. John Ballard, Andy Hogendijk, Chris Mackay Aug and Hamish Douglass. Prem/Disc (%) NTA (Pre-Tax $) Share Price ($) Dividend Policy DividendDividend payments Policy from profits, distributions and interest incomeDividend will payments be made to from MFF profits,shareholders distributions utilising franking and creditsinterest and income the benefits will be of madethe listed to MFFinvestment shareholders company structure. Tax is not be the primary factor in investment utilising franking credits and the benefits of the listed Major Shareholdings decisions.investment company structure. The MFF board would as at 31 October 2012 % consider paying partially franked dividends. Fee Structure Tesco 11.5%

The management expense ratio is 1.25% and performance fee Fee Structure McDonalds 10.6% is 10% of the absolute dollar value of the investment The management expense ratio is 1.25% and Wells Fargo 10.4% performance (net of management fee) in excess of the MSCI performance fee is 10% of the absolute dollar value of Visa 8.5% World Index ($A). the investment performance (net of management fee) in US Bancorp 8.1% excess of the MSCI World Index ($A). HCA Holdings 6.9% Bank of America 6.9% CME Group 5.6% Yum! Brands 4.8% Lowe's 4.2%

Website: www.magellangroup.com.au ABN 85 125 338 785 www.evansandpartners.com.au AFSL 318075 23 ASX Listed Investment Companies

Platinum Capital Limited (PMC) Share Price 31/10/2012 $1.01 Market Cap ($M) 166 Investment Style/Strategy Investment Style/Strategy 12 Month Price Range $0.89 - $1.08 PMC seeks to build a diversified portfolio of a broad PMC seeks to build a diversified portfolio of a broad range of Avg Weekly Volume 636,561 range of global securities whose business and growth global securities whose business and growth prospects are Performance (annual) 6 Mth 12 Mth 3 Yr 5 Yr inappropriatelyprospects are valuedinappropriately by the market. valued Screening by the software market. is Screening software is used to shortlist companies based PMC (Share Price) -3.4% 4.7% -9.3% -5.4% used to shortlist companies based on specific criteria, such as NTA (Pre-tax) -1.2% 4.2% -1.7% -0.5% hypotheseson specific regarding criteria, suchsocial, as political hypotheses or economic regarding change. social, MSCI A$ 1.1% 8.5% 0.7% -7.0% Researchpolitical analystsor economic then engage change. in Researchdetailed bottom-up analysts thenanalysis, FY10 FY11 FY12 withengage stocks in selecteddetailed with bottom a view-up to analysis, minimise with risk and stocks to deliverselected above with average a view absolute to minimise returns. risk The and portfolio to deliver is built Total Dividends (cents/share) 10.0 5.9 0.0 upabove using average this individual absolute stock returns. selection The process portfolio rather is thanbuilt pre- up Yield (last full year dividend) 0.0% determinedusing this individualasset allocations stock andselection holds approximatelyprocess rather 150 than Historic Dividend Per Share (¢) June Year End pre-determined asset allocations and holds positions (shorts account for ~20% of assets). Through the 20 Marchapproximately quarter, the 150 group positions moved (shorts to more account generic indexfor ~20% shorts 15 inof an assets). attempt minimise costs. 10

Asset Allocation 5 As at 30 Jun 2012, PMC had $160m invested in financial Asset Allocation 0 assets and $20m in cash equivalents. The currency FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 Atexposures 31 March were:2010, shorts32% in constituted European 21% currencies, of the portfolio, 47% in whilethe US geographically dollar (incl Hongassets Kongwere brokendollar), down 12% accordingly:in Asian NTA Data (as at end of month) Asia & Other (29%), Europe (24%), Nth America (22%), Japan currencies and 3% in the Australian dollar. Last Reported: 31/10/2012 (19%), Cash (6%). The group's principal exposures are in USD NTA (Pre-Tax) $1.11 (55%), Euro (17%), AUD (14%) and Yen (6%). Investment Manager Prem/Disc to Share Price -9.3% PMC delegates the investment function to Platinum 1Yr Avg NTA Prem/Disc to Share Price -10% Asset Management, an Australian based fund manager 5Yr Avg NTA Prem/Disc to Share Price 3% Investmentspecialising Managerin international equities. Platinum also NTA vs Share Price Chart PMCmanages delegates various the investmentregional and function industry to Platinum specific Assetfunds in $ Prem/Disc % 60.0% Management,addition to global an Australian portfolios based with fund a centralmanager aim specialising of 2.65 50.0% achieving absolute returns for investors. 2.45 in international equities. Platinum also manages various 2.25 40.0% regional and industry specific funds in addition to global 2.05 30.0% portfoliosDividend with Policy a central aim of achieving absolute returns for 1.85 20.0% 1.65 10.0% investors.It is PMC’s objective to smooth dividend payments over 1.45 0.0% time, however this is not guaranteed. On 12 January 1.25 2012, PMC announced that there will be no interim 1.05 -10.0% 0.85 -20.0% Dividenddividend Policydue to a negative retained earnings position Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Itfrom is PMC’s declines objective in markets to smooth and dividend derivative payments hedging over costs. time, Prem/Disc (%) NTA (Pre-Tax $) Share Price ($) howeverFuture dividend this is not payments guaranteed. remain dependant on future Major Shareholdings earnings. On 2 April 2012, PMC commenced an on as at 31 Dec 2011 % market share buyback to purchase up to 10% of issued Samsung Electronics 2.3 capital over 12 months. Fee Structure Bangkok Bank 2.2

Monthly management fee of 1.5% per annum of Portfolio Fee Structure Microsoft 2.2 Value payable to Platinum Asset Management. Performance Management fee of 1.5% per annum of Portfolio Value EcoGreen Fine Chemicals 2.2 fee of 10% if the portfolio's annual performance exceeds the payable to Platinum Asset Management. Performance Shin-Etsu Chemical 2.1 MSCI +5%. fee of 10% if the portfolio's annual performance Cisco Systems 2.1 exceeds the MSCI +5%. Johnson & Johnson 2.1 Henkel AG 1.9 BMW 1.9 Siemens AG 1.8 www.platinumcapital.com.au ABN 85 125 338 785 www.evansandpartners.com.au AFSL 318075 24 ASX Listed Investment Companies

Templeton Global Growth Fund Limited (TGG) Share Price 31/10/2012 $0.77 Market Cap ($M) 110 InvestmentInvestment Style/Strategy Style/Strategy 12 Month Price Range $0.65 - $0.80 TempletonTempleton are are fundamentally fundamentally a long a longterm terminvestment investment Avg Weekly Volume 596,565 company,company, seeking seeking capital capital growth growth from from a globally a globally diversified Performance (annual) 6 Mth 12 Mth 3 Yr 5 Yr portfoliodiversified of investment portfolio ofsecurities. investment As value securities. investors, As value TGG (Share Price) 14.6% 6.1% 0.2% -9.3% Templetoninvestors, uses Templeton a bottom uses up approach a bottom to up identify approach securities to NTA (Pre-tax) 5.1% 10.1% 0.3% -7.2% that are considered to be underpriced relative to their future identify securities that are considered to be MSCI A$ 1.1% 8.5% 0.7% -7.0% earning potential. These assets are typically held for five years underpriced relative to their future earning potential. FY10 FY11 FY12 orThese more assetsand TGG are does typically not engage held infor portfolio five years hedging. or more This Total Dividends (cents/share) 3.0 2.0 1.5 investmentand TGG does strategy not is engage a reflection in portfolio of TGG’s hedging.three underlying This Yield (last full year dividend) tenets;investment Value, strategyPatience andis a Bottom-upreflection ofAnalysis. TGG’s three 1.9% underlying tenets; Value, Patience and Bottom-up Historic Dividend Per Share (¢) June Year End Analysis. 15 Special Dividend Asset Allocation AsAsset at the Allocation 31st of December 2009, TGG had 98% of its portfolio 10 invested, retaining 2% or $3.5m in cash and equivalents. As at 31 Dec 2011, TGG had 98.4% of its portfolio 5 invested ($118m), retaining 1.6% or $0.92m in cash and cash equivalents. As at 31 Dec 2011, TGG 0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 Investmentinvestments Manager were spread over Nth America (35%), Europe (49%), Asia (14%), Middle East & Africa (0.4%) TGG’s Investment Manager is Franklin Templeton Investments NTA Data (as at end of month) Australiaand Latin Limited America ("Templeton") (1.4%). a member of the Franklin Last Reported: 31/10/2012

Templeton Investments group, a global investment NTA (Pre-Tax) $0.91 Investment Manager management organization head-quartered in San Mateo, Prem/Disc to Share Price -15.4% California.TGG’s Investment Board: David Manager Walsh (chairman), is Franklin James Templeton (Tony) Killen, 1Yr Avg NTA Prem/Disc to Share Price -18% GeoffreyInvestments Webb, Australia Gregory McGowan, Limited ("Templeton") John Harvey and a Jennifer 5Yr Avg NTA Prem/Disc to Share Price -18% Boltmember of the Franklin Templeton Investments group, a global investment management organization NTA vs Share Price Chart $ Prem/Disc % head-quartered in San Mateo, California. Board: 1.90 20.0%

DividendDavid Walsh Policy (Chairman), James Killen, Geoffrey 1.70 10.0% ItWebb, is the intention Gregory of McGowan, the Board toJohn pay Harvey out a reasonable and Michael 1.50 dividendBartlett to. the extent that the performance of the company 1.30 0.0% may prudently allow. 1.10 -10.0% Dividend Policy 0.90 -20.0% FeeIt is Structure the intention of the Board to pay out a 0.70 reasonable dividend to the extent that the 0.50 -30.0% 1% p.a. payable monthly on the value net tangible assets to Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 performance of the company may prudently allow. Templeton. No performance fee. Benchmark: MSCI World Prem/Disc (%) NTA (Pre-Tax $) Share Price ($) priceNo guidance index (AUD). has been given on the prospect of future dividend payments in FY12. Major Shareholdings as at 30 Sep 2011 % Fee Structure Microsoft 2.2 1% p.a. payable monthly on the value net tangible Sanofi-Aventis 2.2 assets to Templeton. No performance fee. Pfizer 2.2 Telenor 2.1 Samsung Electronics 2.1 Vodafone 2.0 Amgen Inc 2.0 American Express 1.9 Singapore Telecom 1.9 Website: www.tggf.com.au GlaxoSmithKline 1.8

ABN 85 125 338 785 www.evansandpartners.com.au AFSL 318075 25 GENERAL RESEARCH DISCLAIMER, WARNING & DISCLOSURES

This document is provided by Evans and Partners ABN 85 125 338 785, holder of AFSL 318075. The information is general advice only and does not take into consideration an investor’s objectives, financial situation or needs. Before acting on the advice, investors should consider the appropriateness of the advice, having regard to the investor’s objectives, financial situation and needs. If the advice relates to a financial product that is the subject of a Product Disclosure Statement (e.g. unlisted managed funds) investors should obtain the PDS and consider it before making any decision about whether to acquire the product. The material contained in this document is for information purposes only and does not constitute an offer, solicitation or recommendation with respect to the purchase or sale of securities. It should not be regarded by recipients as a substitute for the exercise of their own judgment. Investors should be aware that past performance is not an infallible indicator of future performance and future returns are not guaranteed.

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Evans and Partners does, and seeks to do, business with companies that are the subject of its research reports.

EVANS AND PARTNERS CORPORATE RELATIONSHIP DISCLOSURE

AFI: Evans and Partners have arranged, managed or co-managed a public offering of the company or its affiliates in the past 12 months. AQHHA: Evans and Partners have arranged, managed or co-managed a public offering of the company or its affiliates in the past 12 months. BENPD: Evans and Partners managed or co-managed a public offering of securities of the company or its affiliates in the past 12 months. BHP: A director of Evans and Partners Pty Ltd Advisory Board is a director of BHP Billiton Ltd. BSL: A director of Evans and Partners Pty Ltd Advisory Board is a director of BlueScope Steel Ltd. BOQ, BOQPA, BOQPC: A director of Evans and Partners Pty Ltd Advisory Board is a directorPrem/Disc of Bank of Queensland. to Share Price (31/8/2010) CNGHA: Evans and Partners managed or co-managed a public offering of securities of the company or its affiliates in the past 12 months. HBSHB: Evans and Partners managed or co-managed a public offering of securities of the company or its affiliates in the past 12 months. HHY: Evans and Partners has been appointed by the Issuer as Broker to an on-market buy-back. Accordingly, Evans and Partners is unable to give Sellers advice in respect to a sale of this security. LLC: A director of Evans and Partners Pty Ltd Advisory Board is a director of Lend Lease Corporation Ltd. MQG: MQCPA: A director of Evans and Partners Pty Ltd Advisory Board is a director of Macquarie Group Ltd. MGR: A director of Evans and Partners Pty Ltd Advisory Board is a director of Mirvac Group. NXT: Evans and Partners has been appointed as Lead Manager to the proposed IPO of the Asia Pacific Data Centre Trust by NXT and expects to receive fees for acting in this capacity. ORG: A director of Evans and Partners Pty Ltd Advisory Board is a director of Origin Energy Ltd. OOH: Evans and Partners have arranged, managed or co-managed a public offering of the company or its affiliates in the past 12 months. SAR: Evans and Partners managed or co-managed a public offering of securities of the company or its affiliates in the past 12 months. SPT: Evans and Partners acted in an advisory capacity for the bidder in relation to the proposed offer made to Spotless Group as announced 9 May 2011. SWM: A director of Evans and Partners Pty Ltd Board is a director of Seven West Media Ltd. TTSHA: Evans and Partners managed or co-managed a public offering of securities of the company or its affiliates in the past 12 months. TOX: Evans and Partners managed or co-managed a public offering of securities of the company or its affiliates in the past 12 months. WHF: Evans and Partners managed or co-managed a public offering of securities of the company or its affiliates in the past 12 months.

DISCLAIMER as at 30 June 2010

Except for any liability which cannot be excluded, Evans and Partners, its directors, employees and agents accept no liability or responsibility whatsoever for any loss or damage of any kind, direct or indirect, arising out of the use of all or any part of this material. All information is correct at the time of publication; additional information may be available upon request.

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