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Ausbil Investment Management Limited Ausbil Australian ABN 26 076 316 473 AFSL 229722 Level 27 Concentrated Equity Fund 225 George Street NSW 2000 Monthly performance update GPO Box 2525 Sydney NSW 2001 Phone 61 2 9259 0200 May 2021 Fax 61 2 9259 0222

‘Markets are riding the strong multi-year outlook for Fund Characteristics earnings driven by the economic growth cycle’ Returns1 as at 31 May 2021 Period Fund Bench- Out/Under Performance Review Return1 mark2 performance Fund performance for May 2021 was +2.31% (net of fees) versus % % % the benchmark return of +2.31%, as measured by the S&P/ASX 300 1 month 2.31 2.31 0.00 Accumulation Index. 3 months 7.88 8.53 -0.65 At a sector level, the overweight positions in the Financials and Health 6 months 15.52 11.95 3.57 Care sectors added to relative performance. The underweight positions FYTD 34.01 25.66 8.35 in Communication Services, Real Estate and Utilities sectors also added CYTD 12.92 10.49 2.43 value. Conversely, the overweight positions in Energy, Industrials and 1 year 38.31 28.72 9.59 Materials sectors detracted from performance. The underweight exposure 2 years pa 14.76 9.69 5.06 to Information Technology, Consumer Discretionary and Consumer Staples also detracted value. 3 years pa 11.58 10.10 1.47 Since inception pa 11.79 9.50 2.29 At a stock level, the overweight positions in , QBE Insurance, Date: 30 Nov 2017 , , Bank and OZ Minerals contributed to relative performance. The nil positions in , , and APA Group also added value. Conversely, the overweight Top 10 Stock Holdings positions in , , Santos, Ramsay Health Care, BlueScope Steel, 2 , BHP Group, Sydney Airport and detracted from Name Fund Index Tilt relative performance. The nil position in NextDC also detracted value. % % % BHP 10.00 6.77 3.24 Market Review Commonwealth Bank 9.96 8.49 1.47 National Bank 8.57 4.27 4.31 The market delivered another positive month with a return of +2.3% as measured by the S&P/ASX 300 Accumulation Index, which is up +10.5% CSL 7.61 6.34 1.27 for calendar year 2021. Westpac Bank 6.89 4.65 2.24 Looking across the sectors, Financials (+5.7%) reflected renewed enthusiasm Aristocrat Leisure 4.24 1.26 2.98 for bank earnings, and Health Care (+3.5%) with potential earnings upside 3.67 2.20 1.47 from better operating conditions. Information Technology (-9.1%) was Macquarie Group 3.58 2.48 1.10 the worst performer on the back of a rotation to cyclical earnings in a Santos 3.51 0.61 2.90 strengthening economy. Utilities (-6.6%) were down as the market continued Qantas 3.23 0.43 2.81 to punish the sector’s exposure to inflation. In global markets, Australia (S&P/ASX 300: +2.3%) outperformed both global developed markets (MSCI World: +1.6%) and emerging markets (MSCI EM: Sector Tilts +1.1%). World markets also delivered positive returns across the board, with Sector Fund Index2 Tilt India, China and Canada all performing strongly. In the US, while the S&P % % % 500 (+0.7%) was in positive territory, the Nasdaq (-1.3%) showed some of Energy 3.51 3.32 0.19 the drag in growth stocks. Materials 27.73 20.66 7.07 Outlook Industrials 9.71 7.21 2.50 Markets are riding the strong multi-year outlook for earnings driven by the Consumer Discretionary 5.55 8.54 -2.99 economic growth cycle. Massive stimulus and monetary support since the Consumer Staples 3.21 4.99 -1.79 pandemic has seen the Australian economy rebound from the two-quarter Health Care 10.78 10.09 0.69 technical recession (with pandemic contraction of -2.4% in 2020) towards a Financials 32.84 29.98 2.87 consensus growth outlook for 2021 of 4.5%, and an Ausbil forecast of 4.9%. Information Technology 2.32 4.73 -2.40 Ausbil’s earnings outlook, set following the end of the February 2021 Communication Services 0.00 2.57 -2.57 reporting season, has been well-ahead of consensus, with Ausbil’s outlook Utilities 0.00 1.10 -1.10 for market earnings growth in FY21 at over +20%, and over +18% in FY22. Real Estate 3.08 6.80 -3.72 With vaccines and the easing of lockdowns, the path for a return to more Cash 1.28 0.00 1.28 normalised earnings was apparent, though in February Ausbil was well ahead of consensus on FY21 earnings growth by some +5%, a significant Total 100.00 100.00 0.00 amount. The consensus earnings outlook for both indices is only now starting to catch-up, with outlooks for 2021 growth now at +22.5% (S&P/ 1.Fund returns are net of fees but before taxes. ASX 200) and +22.6% (S&P/ASX 300). 2.The benchmark is S&P/ASX 300 Accumulation Index. Ausbil’s portfolios have been positioned for a clear path to recovery, but with some volatility and uncertainty along the way. We are expecting a multi- year earnings growth cycle, and we maintain the position that investors are compelled to participate. 1 Ausbil Investment Management Limited Level 27 225 George Street Sydney NSW 2000 Australia Toll Free 1800 287 245

Unless otherwise specified, any information contained in this publication is current as at the date of this report and is prepared by Ausbil Investment Management Limited (ABN 26 076 316 473 AFSL 229722) (Ausbil). Ausbil is the issuer of the Ausbil Australian Concentrated Equity Fund (ARSN 622 627 696) (Fund). This report contains general information only and the information provided is factual only and does not constitute financial product advice. It does not take account of your individual objectives, financial situation or needs. Before acting on it, you should seek independent financial and tax advice about its appropriateness to your objectives, financial situation and needs. Securities and sectors mentioned in this monthly report are presented to illustrate companies and sectors in which the Fund has invested and should not be considered a recommendation to purchase, sell or hold any particular security. Holdings are subject to change daily. The value of an investment and the income from it can fall as well as rise and you may not get back the amount originally invested. Past performance is not a reliable indicator of future performance. Unless otherwise stated, performance figures are calculated net of fees and assume distributions are reinvested. Due to rounding the figures in the holdings, breakdowns may not add up to 100%. No guarantee or warranty is made as to the accuracy, adequacy or reliability of any statements, estimates, opinions or other information contained herein (any of which may change without notice) and should not be relied upon as a representation express or implied as to any future or current matter. You should consider the Product Disclosure Statement which is available at www.ausbil.com.au before acquiring or investing in the fund. Source: MSCI. The MSCI information may only be used for your internal use, may not be reproduced or disseminated in any form and may not be used as a basis for or a component of any financial instruments or products or indices. None of the MSCI information is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. Historical data and analysis should not be taken as an indication or guarantee of any future performance analysis, forecast or prediction. The MSCI information is provided on an “as is” basis and the user of this information assumes the entire risk of any use made of this information. MSCI, each of its affiliates and each other person involved in or related to compiling, computing or creating any MSCI information (collectively, the “MSCI Parties”) expressly disclaims all warranties (including, without limitation, any warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall any MSCI Party have any liability for any direct, indirect, special, incidental, punitive, consequential (including, without limitation, lost profits) or any other damages. Further information is available at www.msci.com. A short notice on the COVID-19 public health event, and how it can impact investments Given the currently evolving issues around the Coronavirus (or Covid-19) globally, which has officially been designated a pandemic by the World Health Organisation, we wish to notify that, as with many firms, business may be disrupted. A public health crisis, pandemic, epidemic or outbreak of a contagious disease, such as the recent outbreak of Coronavirus (or Covid-19) in Australia, , China, South Korea, the United States and other countries, could have an adverse impact on global, national and local economies, which in turn could negatively impact investment returns in any of Ausbil Investment Management Limited’s registered managed investment schemes (the Funds). Disruptions to commercial activity relating to the imposition of quarantines or travel restrictions (or more generally, an inability on behalf of authorities to contain this pandemic) may adversely impact any investment, including by delaying or causing supply chain disruptions or by causing staffing shortages. The outbreak of Coronavirus has contributed to, and may continue to contribute to, volatility in financial markets. The impact of a public health crisis such as the Coronavirus (or any future pandemic, epidemic or outbreak of a contagious disease) is difficult to predict, which presents material uncertainty and risk with respect to any investment or fund performance.

Contactus@ ausbil.com.au