TRIBECA ALPHA PLUS – CLASS A: MONTHLY REPORT

July 2020

Fund overview

A long/short equity strategy aims to provide investors with positive Tribeca’s investment approach uniquely blends fundamental and returns, whatever the market conditions. It seeks to profit from share quantitative strategies that aim to identify investment opportunities price appreciation above the index in its long positions and price and generate returns above the benchmark. declines below the index in its short positions. The benefits of this approach are the significant amounts of company The Fund focuses on short selling a range of stocks with weak detail that can be unearthed and used to generate insights into its investment characteristics and reinvesting the proceeds in long future prospects and likely investment returns. positions in preferred stocks. This combination of long and short positions provides Tribeca with a large degree of flexibility and enables more active decision making.

Performance Source: Tribeca Investment Partners As at 31 July 2020

1 month 3 months 1 year 3 years 5 years 7 years 10 years Since % % % % pa % pa % pa % pa inception1 % pa Class A Units2 3.18 11.82 (2.13) 7.06 7.06 11.10 8.98 8.46 Benchmark3 0.50 7.62 (9.87) 5.37 5.15 6.78 7.39 5.57 Value added 2.68 4.20 7.74 1.69 1.91 4.32 1.59 2.89

1. Inception Date: 18 September 2006 2. Returns are based on end of month redemption prices and calculated after the deduction of ongoing fees and expenses but before tax and assume distributions are reinvested 3. S&P/ASX 200 Accumulation Index Past performance is not a guide to future performance

Fund facts Portfolio characteristics Portfolio% Index%1 Top 10 Active Weights Portfolio% Communication Services 3.5 4.1 a2 Milk Company Ltd. 2.2 Consumer Discretionary 5.3 4.0 Limited 1.0 Consumer Staples 6.2 9.8 Domain Holdings Ltd. 1.9 Energy 3.0 3.8 Ltd 3.6 Financial-x-Property Trusts 28.1 26.9 -1.5 Health Care 13.9 11.8 Limited 1.7 Industrials 8.4 7.2 Limited 1.8 Information Technology 2.4 3.6 CSL Limited 6.0 Materials 22.5 20.5 Charter Hall Group 1.8 Property Trusts 4.9 6.5 Resmed Inc 2.1 Telecommunication Services 1.7 -- Utilities -0.5 1.9 1 S&P/ASX 200 Accumulation Index Cash 0.5 -- 2 May not total due to rounding TOTAL2 100.0 100.0

Therefore, the key to returns for the next six months will be to focus

Manager commentary on sectors that are the first to emerge from forced restrictions. Our The pace of the market’s recovery slowed in July as rebound view is healthcare and toll roads, by far, would be the first to momentum waned and the spectre of a second wave of virus experience a recovery. Companies such as and Ramsey outbreaks in Australia loomed. The S&P/ASX200 Index returned 0.5% Health’s share prices have lagged that of other recovery sectors for the month. Strong recent stock price recoveries, the second despite the non-discretionary nature of their earnings. In the case of Victoria lockdown, increasing concern about the possible “fiscal cliff” Ramsey Health, there is now a meaningful backlog of elective surgery and shifting focus to the upcoming earnings season made for a more while a stronger balance sheet will enable the business to potentially cautious atmosphere. Despite the lacklustre growth of the market, take advantage of depressed asset values globally. the Tribeca Alpha Plus Fund returned 3.2%, again outperforming the The retail sector is another interesting one. Theoretically the sector market by 2.7%. will be the largest beneficiary of stimulus, and indeed some of the July’s stock market performance was characterised by a bifurcation share prices are now largely reflecting such a boost in earnings, with between outperformers and laggards. Materials (+5.8%) and the likes of JB Hi-Fi, for instance, priced at an alltime high. The key Technology (+4.6%) led the market, while Energy (-6.6%), Industrials consideration here is that for many mature retailers, such strong (-3.9%) and Healthcare (-3.8%) lagged. The defensive sectors of growth in the same store year-on-year is not likely to be repeated. Communication Services (+3.6%) and Consumer Staples (+3.5%) also Most mature retailers have been growing at low single-digits pre- performed strongly. The rallying of iron ore and gold drove Covid and the double-digit growth currently on display is clearly a outperformance of the Materials names. Energy lagged largely due to pull forward of many years of growth from the future. This is the languishing oil price, and Healthcare suffered from the particularly the case for the likes of supermarket operators. In other underperformance of CSL and a sell-off in biotech names. words, share prices are not likely to sustain at the current levels. Attribution behind the Fund’s outperformance was broad-based. We do, however, see substantial return opportunities in the REIT Outperformance was supported by long positions in: Sezzle and Zip sector, where most of the asset owners are trading at only a fraction Co – as beneficiaries of the BNPL thematic; Fortescue Metals and Oz of their underlying asset values. Some discount is warranted as the Minerals – buoyed by the ongoing rallying of gold; and ALS Limited – structural headwinds for ‘bricks & mortar’ shopping centres are which benefitted from better gold exploration outlook and a exacerbated by increased demand for online delivery. However, such revitalised balance sheet. Short positions in significant a large disparity between value and price is not justified in our view, underperformers across multiple sectors also positively contributed. particularly as real bond yields continue to fall. Detractors included long positions in and Sydney Airport, as The current market is filled with value opportunities, but we are not concerns of a second virus wave delayed hopes of a travel recovery; believers of the growth-to-value rotation or in the way that ‘value’ is , whose outlook was also dampened by the defined by many in the market. In our view, value is about finding prospect of a second wave; and TPG Telecom, retracing strong earlier quality companies that are undervalued and mispriced by the gains. A short hedging position in Netwealth also detracted from market, and that is what we seek to do. We therefore continue to performance. run a balanced portfolio with exposure to growth assets. In a low- interest rate environment, such assets will continue to gain traction Outlook as investors globally struggle to find any growth. Particularly now, With the market having processed the initial pandemic shock, our market is ripe with innovative business models, and companies investors are now trying to balance long-term fundamentals with such as Appen and Zip are likely to experience significant growth as near-term exposure to the realities of the Covid virus. Unlike many of market forecasts catch up with their strong earnings trajectory. our peers and despite the increasing rhetoric of equities looking As we navigate these uncertain times, it is more important than ever expensive, we remain positive on the Australian equity market. Our to focus on building a portfolio that is future proof, for this is the best view is that corporates will experience significant earnings recovery way to achieve sustainable returns through the ups and downs of over the next 12-24 months despite delay caused by the second wave market cycles. of virus outbreak. Economic reality is likely to be less dire than first feared with August reporting season the key catalyst to drive a re- See gsfm.com.au for more information about the Tribeca Alpha Plus rating. Fund. In addition, the very low cost of debt around the world will continue to drive asset prices and, on this basis, equities look more reasonably priced.

Important Information Investment Manager: Tribeca Investment Partners Pty Ltd ABN 64 080 430 100 AFSL 239070. Responsible Entity: Equity Trustees Limited (‘EQT’) ABN 46 004 031 298 AFSL 240975, Distribution partner: GSFM Pty Limited (‘GSFM’) ABN 14 125 715 004 AFSL 317587. This report is provided for information purposes only and is not intended to take the place of professional advice. Neither Tribeca, EQT nor GSFM give any warranty as to the accuracy, reliability or completeness of the information in this report nor do they undertake to correct any information subsequently found to be inaccurate. Opinions expressed may change without notice. This report has been prepared without taking into account the investment objectives, financial situation or particular needs of any particular person. Before making an investment decision in relation to the Fund, you should consider the appropriateness of this information having regard to your own objectives, financial situation and needs and read and consider the Fund’s product disclosure statement dated 18 April 2019 (‘PDS’). Retail investors may invest in the Fund through a licensed financial adviser or an investment platform using the PDS for that platform which can be obtained from the operator of the platform. This document is issued on 13 August 2020.