Tyndall Unit Trusts 30 September 2014 Tyndall Wholesale SRI Equity Fund

Fund manager Structure and taxation Nikko Asset Management Limited (Nikko AM). The Fund vehicle is a Unit Trust and Portfolio Investment Entity Nikko AM is Asia’s premier global asset manager and is the only (PIE) which is priced daily. Unit holders elect their own Portfolio global investment manager in New Zealand. We actively manage Investment Rate. The Fund invests directly into tradeable capital approximately NZ$4 billion of investments for a diverse group of market securities. Whilst the majority of the return is “excluded clients, including superannuation schemes, charitable trusts, income” there will be a portion of interest income, dividends not fully KiwiSaver scheme providers, corporations and local government imputed, and certain ASX listed shares will not fit the criteria for along with providing services to financial intermediaries through trading gains/losses to be excluded. Information is provided to the wrap platforms. IRD and unit holders on an annual basis. We offer investment management services in domestic sectors (equities, fixed interest and cash) through our Auckland-based Distributions investment team and employ offshore managers to manage global At any date for any period fixed by the Manager sectors (global equities, global bonds and alternative investments). Hedging policy Fund launch AUD exposures are hedged to the NZD at the discretion of the January 2008 – a similar portfolio has been operated by Nikko AM Manager. since August 2001. Management fees and other charges Investment objective Investment management fees will be negotiated separately with Over a rolling three year period, to target a return which exceeds the each investor and invoiced outside the Fund. benchmark by 3% per annum, before fees. All Fund statutory and operating costs will be met directly by the Manager. Benchmark NZX 50 Gross, net of imputation credits. Performance fee Negotiated separately with each investor and invoiced outside the Investment process Fund. Nikko AM is an active style neutral manager with a lower risk approach to investment. Our domestic equity portfolio is Buy/sell spread constructed and managed with a blend of value and growth 0.40% / 0.40% companies, with a modest Australian exposure (maximum 20% permitted). Trustee In addition, the Fund has a negative screen to exclude liquor, Public Trust tobacco, armaments and gambling equities. Custodian Public Trust as legal custodian, BNP Paribas Fund Services Australasia Pty Limited delegated as functional custodian.

Selected investors only Participation in the Fund is limited to persons or entities who are New Zealand resident, and: (a) whose principal business is the investment of money; or (b) who, in the ordinary course of and for the purposes of their business, habitually invest money; and, consequently (or for other reasons) do not constitute "the public" for the purposes of the Securities Act 1978 (Exempt Person). Nikko AM will not therefore be required to produce a registered prospectus or an investment statement in relation to the proposed investment (such documents otherwise being required were this offer to be made to persons or entities that are not Exempt Persons), and such documents will not be produced accordingly. Investors in the Fund will be required to acknowledge their status as an Exempt Person as part of their subscription in the Fund. Investors in the Fund will also be required to undertake to Nikko AM that any transfers of interests in the Fund will only be to Exempt Persons.

This document is issued by Nikko Asset Management New Zealand Limited (Company No. 606057, FSP No. FSP22562) investment manager and promoter of the products included in this document. This information is for the use of researchers, financial advisers and wholesale clients. This material has been prepared without taking into account a potential investor’s objectives, financial situation or needs and is not intended to constitute personal financial advice, and must not be relied on as such. Recipients of this document, who are not habitual investors, or their duly appointed agent, should consult a qualified and appropriately Authorised Financial Adviser and the current Investment Statement, Prospectus or Information Memorandum. Applications to invest will only be accepted if made on an application form attached to that current Investment Statement or Information Memorandum. Past performance is not a guarantee of future performance. While we believe the information contained in this presentation is correct at the date of presentation, no warranty of accuracy or reliability is given and no responsibility is accepted for errors or omissions including where provided by a third party.

General Enquiries: [email protected] | +64 9 307 6363

Nikko Asset Management New Zealand Limited www.nikkoam.co.nz

Tyndall Unit Trusts 30 September 2014 Tyndall Wholesale SRI Equity Fund

Performance (NZD gross returns) Asset allocation Fund Benchmark Excess % % % Cash 3.2% 1 month 1.64 0.61 1.03 Australian 3 months 4.73 2.21 2.52 equities 9.0% 6 months 5.00 2.24 2.76 1 year 13.54 10.95 2.59 2 years (pa) 19.66 17.07 2.58 3 years (pa) 17.42 16.27 1.15 NZ equities 5 years (pa) 10.56 10.70 -0.14 87.8%

Fund size: $14.9 million Attribution Commentary What helped What hurt The New Zealand equity market rose over the September quarter posting three consecutive positive months for total return of 2.8%. This is Limited OW Summerset Group OW not to say the quarter lacked volatility as the market moved in a Limited UW UW reasonably wide range under the influence of both NZ election expectations and currency movements. The NZX50 outperformed the UW Transpacific Industries OW ASX200 and the MSCI World indices for the quarter as the yield sectors OW=overweight, UW=underweight, N=neutral position of utilities and telecom services increased strongly. The NZD/USD exchange rate fell around 11% over the quarter. Top 10 holdings The Fund outperformed over the quarter with underweight position in Xero Limited (XRO) contributing. XRO fell 16.9% following the Limited Limited resignation of Peter Karpas, the North American chief executive after six Spark New Zealand Limited Limited months in the position. Ryman Healthcare (RYM; -8.7%) added value F&P Healthcare Limited as the Fund was underweight. Infratil rallied strongly (+16%) following the announcement they had successfully sold their Australia energy Infratil Limited Auckland International Airport business, Lumo Energy, for A$605m, well in excess of market Ryman Healthcare Limited expectations. Meridian Energy also contributed as the stock rallied following the election result. Number of holdings in portfolio 45 Spark’s (SPK) 15% rally detracted value given the Fund’s underweight position. Summerset (SUM) also detracted as the stock sold off 17% for the quarter following a disappointing earnings announcement. SUM, Sector allocation RYM and Metlifecare (MET) are all under selling pressure due to possible comparative company listings in NZ and other sector related Fund % Index % listings in Australia. Transpacific Industries (TPI) detracted with its Consumer discretionary 10.4 13.0 price falling around 19%. TPI’s annual result disappointed and included an unexpected provision for landfill remediation. Consumer staples 2.9 2.3 During the quarter the Fund reduced the number of holdings by selling Energy 5.6 2.0 holdings in Argosy, BHP, Ebos, Nuplex Industries, National Australia Financials 5.1 13.6 Bank, Heartland NZ and Veritas Investments. The Fund also reduced its investment in TPI and Xero. The proceeds of these sales were Healthcare 18.9 15.2 invested across a number of existing holdings including Resmed, F&P Industrials 12.2 12.6 Healthcare and Contact Energy; while Fonterra, Metro Performance Glass, Scales and Eroad were added to the Fund over the quarter. Information technology 6.2 3.4 Investors have moved on from NZ politics to the implications of falling Materials 10.6 12.4 dairy prices, the pass through effect to farmers, the economy generally and the NZD. Given that Global Dairy Trade auction prices have fallen Telecommunications 9.1 10.2 around 50% from their peak, the projected Farm Gate Milk Price has Utilities 15.8 15.3 serious implications for farm profitability. This comes at a time when the RBNZ has sold the NZD and talked their book in an attempt to reduce Cash 3.2 - the exchange rate. These actions have been well timed and effective so far given the rest of the world is looking to economic strength building in the US hence interest rate increases are likely to lead to further Compliance weakness in the NZD. (bold denotes stock held in portfolio) The Fund complied with its investment mandate during the month.

Nikko Asset Management New Zealand Limited www.nikkoam.co.nz