First Sentier Top 20 Index Portfolio

Quarterly Factsheet 30 June 2021 For Adviser use only

Portfolio Description Growth of AUD 10,000 Investment Since Inception The portfolio invests in the 20 largest listed on the ASX based on their market capitalisation Portfolio $15,000 Investment Strategy $14,000 The portfolio invests in the 20 largest shares listed on the ASX based $13,000 on their market capitalisation. The manager seeks to maximise efficiency through model portfolio construction and minimise $12,000 slippage through comprehensive risk management. $11,000 $10,000 Investment Objective * $9,000 To deliver performance similar to that of the 20 largest shares listed

on the ASX over rolling one year periods as measured by the

12/2019

12/2018

12/2020

03/2021

06/2021

03/2019

03/2018

09/2019

06/2019

06/2018

09/2018

03/2020 09/2020 S&P/ASX 20 Accumulation Index before fees and adjusted for 06/2020 minimum cash holdings. Risk Characteristics Period 1yr 2yr 3yr SI Portfolio standard deviation (%) 10.3 18.2 15.9 15.3 Product Overview Benchmark standard deviation (%) 10.4 18.4 16.1 15.5 Inception date 23 March 2018 Tracking error (%) 0.1 0.2 0.2 0.2 Benchmark S&P/ASX 20 Accumulation Index Portfolio Sharpe ratio 2.9 0.5 0.6 0.6 Target Asset Allocation ** Australian shares 98-99% / Cash 1-2% Information ratio -6.3 -2.0 -2.4 -2.5 Number of holdings Typically 20 Beta 1.0 1.0 1.0 1.0 Minimum investment As per platform provider Top 10 holdings Managed account fee (p.a.) *** 0.28% Stock Standard Risk Measure ANZ Bank Risk band / label 7 - Very High BHP Group Suggested time frame 7 years Commonwealth Bank CSL Performance summary (%) Period 3mth 6mth 1yr 2yr 3yr SI National Bank Net return 9.1 15.8 30.4 8.6 10.4 11.9 Rio Tinto Benchmark return 9.3 16.1 31.1 9.0 10.7 12.4 Wesfarmers Excess net return -0.2 -0.3 -0.7 -0.4 -0.4 -0.4 Westpac Bank Sector Breakdown (%) Woolworths Sector Weight Sorted alphabetically Financials 39.8 Materials 20.2 Health Care 10.5 Consumer Discretionary 7.7 Consumer Staples 5.8 Industrials 4.5 Communication Services 3.6 Real Estate 2.9 Information Technology 2.3 Energy 1.7

* Investment objective is not a forecast and returns are not guaranteed ** The target asset allocation should only be used as a guide. The portfolio managers aim to maintain each portfolio within target investment allocation ranges, however, the actual asset allocation may vary from the target investment allocation *** Additional fees and charges may apply. Please consult your platform provider Performance returns are calculated net of management fees and transaction costs. Performance returns for periods greater than one year are annualised. Past performance is not a reliable indicator of future performance. Data source: First Sentier Investors 2021 Data as at: 30 June 2021

First Sentier Top 20 Index Portfolio 30 June 2021

Market review

The Australian equity market was strong during the June quarter with investors encouraged by the resilient economic data and the roll out of the vaccine. The S&P/ASX 20 Accumulation Index climbed (+9.26%) in the June quarter.

The Real Estate sector (+17.6%) was the strongest performer followed by the Information Technology sector (+16.4%). Goodman Group (+17.6%) and Afterpay (+25.9%) led the charge in these sectors respectively. A strong third quarter trading update by Goodman Group drove the Real Estate sector with the company pointing to a material increase in “Work in Progress”.

Energy was the biggest drag on the Index with Woodside Petroleum down -7.5%. Woodside have many large scale projects that need to be funded in the future and there are some concerns with investors regarding stranded assets.

Portfolio activity

During the quarter the S&P rebalance occurred with Woolworths (WOW-AU) demerging their liquor business Endeavour (EDV-AU). EDV was removed from the ASX 20 as it did not meet the size criteria to stay in the index.

Market outlook

Domestically the economic data remains strong and the emergence of the Covid Delta strain in various states was not enough to diminish investors’ enthusiasm for equities. The housing market continues to strengthen and jobs data remains robust – the unemployment rate unexpectedly falling to a pre- pandemic low of 5.1%. The Governor of the Reserve Bank restated that economic conditions are unlikely to be solid enough to warrant a rate hike until at least 2024, at the earliest. However, some banks are now starting to lift their interest rates.

Mergers, spinoffs and acquisitions continue to be a common theme in global and domestic markets. Orocobre and Galaxy will merge in August and will create one of the largest lithium companies in the world. AGL Energy announced a demerger of their coal business. Private equity launched a bid for Sydney Airport in early July. This theme is likely to continue in the coming months.

The pace of the roll out of vaccines around the world and the rise of bond yields will continue to drive global and domestic markets. Volatility is likely to remain with the potential for more waves of the virus, lockdowns and some countries reducing stimulus while other countries continue to increase stimulus.

First Sentier Top 20 Index Portfolio 30 June 2021

Portfolio Beta measures the portfolio's sensitivity to benchmark movements. Mathematically, it is the covariance of the portfolio vs the benchmark divided by the variance of the benchmark. The covariance and variance are ex ante calculations based on current weights and historic patterns of return over the past five years. www.firstsentierinvestors.com.au

For further information

Head of Investment Sales and Key Accounts Business Development Manager - VIC/TAS Chris King +61 2 9010 5249 Jack Heinz +61 3 9225 5056 Key Account Manager - NSW Key Account Manager - QLD Angela Vincent +61 2 9010 5230 Quin Smith +61 4 5509 5505 Paul Sleiman +61 2 9010 5393 Business Development Manager – QLD Business Development Manager – NSW Julie Day +61 4 6641 3176 Justin Sultana +61 2 9010 5326 Key Account Manager - WA/SA/NT Key Account Manager - VIC/TAS Nathan Robinson +61 4 0327 2440 Nicholas Everitt +61 3 9225 5055

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