November 2017 Long-Only Monthly Report Portfolio performance and attribution analysis Market commentary World markets rose with technology 's 1H18 result continued its Inception p.a. FYTD Month stocks leading the US to all time cashflow positive trend with plans to Portfolio 11.37% 11.58% 2.42% highs, supported by strong economic delist from NZ exchange in early Benchmark 7.67% 5.71% 1.44% data. European markets retreated 2018. Downer wrote down $40m of due to political uncertainty in their Spotless acquisition and Top 3 and bottom 3 performing stocks Germany and Spain. China released highlighted problems with one of Top 3: Elders Limited (ELD), Monadelphous Group disappointing industrial output and their long term contracts. Earnings (MND), NextDC Limited (NXT) retail sales data. Iron ore rose 17% are expected to grow faster than to US$68 per tonne as higher grade expected for Seek due to the Bottom 3: Nanosonics Limited (NAN), Xero Limited product was in demand due to the Australian, Asian and education (XRO), Limited (OSH) Chinese government crackdown on businesses. Fortescue appointed the winter pollution. Oil rose 5% to $57 current CFO, Elizabeth Gaines as its per barrel as OPEC officially new CEO-elect. Portfolio changes extended its production restrictions Portfolio commentary Stocks joined or increased: to the end of 2018. The AUD Positives: of Limited (+1.00%): An continued its gradual decline, falling ELD - The share price rose after the Australian bank. The company's core retail banking another 1c to US76c following weak company announced its first division has outperformed peers despite the low interest October inflation. dividend in 8 years including a rate environment. The Australian market rose strongly special second half dividend. Limited (+0.50%): A global printed circuit board with mid cap stocks and overseas software designer. The company has continued to grow earners outperforming. The Federal MND - The share price rose as 1H in all product & geographic segments and reaffirmed its Government announced a Royal revenues are expected to grow 30%. FY20 targets. Commission into the banking and financial sector. NAB announced NXT - The share price rose as the 6000 job cuts and $1.5bn digital sales process for a competitor is Stocks removed or reduced: drawing to a close. Limited (-1.00%): An Australian spend over the next 3 years. Elders infrastructure monopoly. The company's share price is beat its own EBIT guidance due to Negatives: approaching our valuation target. higher livestock prices and paid its NAN - The share price corrected first dividend since 2008. following recent outperformance. .com purchased the Downer EDI Limited (-0.50%): A mining services and remaining 50.1% in its Korean OSH - The share price consolidated infrastructure construction company. The company's subsidiary SK encarsales.com for after the company made an share price is approaching our valuation target. A$244m and expectes the acquisition in the US. acquisition to be earnings accretive in FY19. NextDC is opening its XRO - The share price pulled back second Brisbane and after recent outperformance ahead data centres. of the first half results. Current portfolio: Top ten holdings Portfolio Exposures Portfolio focus Stock 30/11/2017 Major portfolio exposures were Alleron’s investment process focuses Commonwealth Bank Ltd 7.13% medical devices & services and on companies with a competitive Seek Ltd 6.15% resource stocks with less portfolio advantage and a developing organic Cochlear Ltd 6.01% weight in major banks and retailers. growth profile. An investment will be 5.27% Ltd made once an identified investment Ltd 5.01% trigger occurs. Sydney Airport Holdings Ltd 4.81% Portfolio Analysis Resmed Inc 4.39% Elders Ltd 3.42% Top 100 77.37% of fund Ltd 3.15% Ex 100 20.19% of fund Ltd 3.12%

Disclaimer: This communication is issued by Alleron Investment Management Pty Ltd ABN 71 109 874 160 AFSL 278856 Suite 301, Level 3, 161 Walker Street, North Sydney NSW 2060. This information does not constitute a recommendation, offer or solicitation to buy or sell any securities. It reflects Alleron's Model Portfolio at the end of the month stated and Alleron's views at the date of preparation. Both the Model Portfolio and Alleron's views are subject to change without notice. Past performance figures are no guarantee of future returns and exclude Alleron's fees. Date of preparation: 06 December 2017