As of 30 September 2020 Market overview Global markets were weak in September; lead down by Oil (-9.5%) and global For more information on our Funds, equities (-2.9%). Positive asset classes were only sovereign bonds (despite the please contact: already low yields) and the US dollar. The poor performance by risk assets reflected fears of a relapse in global economic activity, another Covid wave in David Boyle Europe, stymied fiscal stimulus in the US, and some profit taking in the high-flying Head of Sales & Marketing tech/growth stocks. Level 25, SAP Tower 151 Queen Street, Auckland The NZ equity market finished the month down 1.6%, with the weakness New Zealand dominated by the two largest stocks – F&P Healthcare (profit taking and index changes in Australia) and the a2 Milk Company (insiders selling followed by a profit P 0800 646 833 warning). Without these two stocks, the NZ market would have been up 2.8% - E [email protected] highlighting a sharp rotation from growth stocks to Covid recovery stocks, with www.mintasset.co.nz Auckland Airport (index changes in Australia), Sky City (good result) and Fletcher Building (no obvious reason) amongst the stronger performers. Similarly, the Australian market was down 3.7% (with over half of that fall occurring on the last day of the month). Poor performers in Australia were Oil related stocks (and a2 Milk) and stronger performers were again Covid recovery sectors like Building Materials and Leisure / Entertainment. The US election and other short term global risks imply continued elevated volatility immediately ahead; however, over the next 12 months equities should outperform bonds with the earnings yield / bond yield ratio well in favour of equities; and we expect further fiscal stimulus and monetary policy to support markets. Funds at a glance 1 Month 3 Months 1 Year 5 Years Mint Australasian Equity Fund Net* -2.82% 0.19% 11.04% 15.13% Gross** -2.71% 0.53% 12.55% 16.82% Mint Australasian Property Fund Net 2.43% 11.88% -4.94% 9.84% Gross 2.52% 12.20% -3.89% 11.41% Mint Diversified Income Fund Net 0.10% 3.34% 2.18% 5.03% Gross 0.19% 3.63% 3.33% 6.32% Mint Diversified Growth Fund Net -0.88% 7.72% 14.64% -% Gross -0.78% 8.07% 16.04% -% Performance returns greater than 3 months are per annum. *Net returns are after fees and before investor tax. Net after tax performance can be found in the latest Quarterly Fund Update, available on our website. **Gross returns are before fees and excluding imputation credits. Investment team Head of Portfolio Portfolio Portfolio Portfolio Investments Manager Manager Manager Manager Anthony Halls Carlie Eve David Fyfe John Middleton Marek Krzeczkowski As of 30 September 2020 SINGLE SECTOR FUND Unit price Fund size Mint Australasian $3.9127 $290M Equity Fund 1 month 3 months 1 year 5 years -2.82% 0.19% 11.04% 15.13% Our portfolio returned -2.82% for the Net returns month. Sector Allocation The main positive contributions came from Auckland Airport (+9.9%), Ryman Healthcare (+4.8%) and Contact Energy (+6.4%). The main negative contributors were the a2 Milk Company (-17.5%) and F&P Healthcare (-9.5%). This was a very disappointing month as positive contributions from our Australian holdings fell away to negligible levels on the last day of the month as the Australian market experienced a broad sell-off that day. The a2 Milk Company did most of the damage though as a generally positive outlook statement at their result in August was undone through September, firstly by management disclosing selling, followed by a profit warning two days before the end of the month. We had reduced our a2 Milk Company and F&P Healthcare holdings late in August but in hindsight, not fast nor far Health Care – 29% enough. With their weakness late in September we bought Utilities – 15% back the stock we had sold in August. During the month, we also increased our holdings in Sky City, Summerset Group, Consumer Staples – 12% Regis Resources and Mirvac Group. Communication Services – 10% Industrials – 10% Real Estate – 8% Cash and cash equivalents – 5% Information Technology – 4% Consumer Discretionary – 4% $10,000 invested since inception Energy – 1% $38,000 $34,000 Top Holdings $30,000 a2 Milk Company Ltd. $26,000 Auckland International Airport Limited $22,000 $18,000 Fisher & Paykel Healthcare Corporation $14,000 Mainfreight Limited $10,000 Meridian Energy Limited $6,000 Ryman Healthcare Ltd. Spark New Zealand Limited Feb-12 Feb-07 Feb-08 Feb-09 Feb-10 Feb-11 Feb-13 Feb-14 Feb-15 Feb-16 Feb-17 Feb-18 Feb-19 Feb-20 Mint Australasian Equity Fund Cumulative performance. Returns are after fees and before investor tax. Fund inception: 15 February 2007. As of 30 September 2020 SINGLE SECTOR FUND Unit price Fund size Mint Australasian $2.4178 $82M Property Fund 1 month 3 months 1 year 5 years 2.43% 11.88% -4.94% 9.84% Our portfolio returned 2.43% for the Net returns month. The top contributors were holdings in Stride Property, Precinct Sub-Sector Allocation and Centuria Capital. The key detractors to performance were holdings in Lendlease, National Storage and Ingenia. The NZ listed property sector had another positive month with a monthly return of 2.6%. After a strong August, the Australian listed property sector had a weak month with a return of -1.5% (in AUD). Over the month, we participated in the Asset Plus capital raise to fund the Albany development, increased exposure to Charter Hall and Mirvac, and reduced our holding in Centuria Capital. A number of listed NZ Property entities were active over the month. Goodman Property acquired land (currently leased as yard space) next to its Savill Link industrial estate for $70m. Stride acquired an office building on Shortland Street in Auckland for $68m – the acquisition will add to the office portfolio, which Diversified REITs – 53% will eventually be transferred to a separate office fund. Argosy Real Estate Operating Companies – 18% has continued to sell assets to relieve pressure on its balance Industrial REITs – 9% sheet. Retail REITs – 5% Specialised REITs – 5% Cash and cash equivalents – 4% $10,000 invested since inception Health Care – 2% Diversified Real Estate Activities – 1% $27,000 $24,000 Top Holdings $21,000 Argosy Property Limited $18,000 Goodman Property Trust $15,000 Investore Property Ltd. $12,000 Kiwi Property Group Ltd. Precinct Properties New Zealand Ltd. $9,000 Property For Industry Limited $6,000 Stride Property & Stride Invest Mgmt. Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Dec-07 Mint Australasian Property Fund Cumulative performance. Returns are after fees and before investor tax. Fund inception: 31 December 2007. As of 30 September 2020 DIVERSIFIED FUND Unit price Fund size Mint Diversified $1.1000 $222M Income Fund 1 month 3 months 1 year 5 years 0.10% 3.34% 2.18% 5.03% Our portfolio returned 0.10% for the Net returns month. The largest positive contributions came from Listed Property Tactical Asset Allocation (+0.3%) and Fixed Income (+0.2%). This was largely offset by the negative contributions from Global Equities (-0.1%) and Australasian Equities (-0.2%). The top positive contributions were stocks in New Zealand Listed Property (Stride Property, Precinct Properties and Kiwi Property Group). Also, several holdings within Global Equities had a strong month - NIKE was up 15% following very strong Q1 results, Danaher Corporation and Thermo Fisher Scientific returned over 5%. The main negative contributors to the performance of the fund were the a2 Milk Company (following an earnings downgrade driven largely by weakness and disruption in the Diagou (C2C/B2C) trade with some unwind of pantry stocking delaying new orders), Amazon.com and Mainfreight Limited. Fixed interest – 58% During the month, we did not exit any of the existing holdings. International equities – 13% We added two issued senior bonds from Summerset Group Cash and cash equivalents – 12% and Mercury. Listed property – 10% Australasian equities – 7% $10,000 invested since inception $14,000 Top Holdings $13,000 Auckland International Airport Limited $12,000 Contact Energy Limited $11,000 Gmt Bond Issuer Ltd. iShares TIPS Bond ETF $10,000 Kiwi Property Group Ltd. Kiwibank Limited $9,000 Vector Limited Aug-15 Aug-16 Aug-17 Aug-18 Aug-19 Aug-20 Aug-14 Mint Diversified Income Fund Cumulative performance. Returns are after fees and before investor tax. Fund inception: 31 August 2014. As of 30 September 2020 DIVERSIFIED FUND Unit price Fund size Mint Diversified $1.2653 $16M Growth Fund 1 month 3 months 1 year 5 years -0.88% 7.72% 14.64% -% Our portfolio returned -0.88% for the Net returns month. The largest positive contributions came from Listed Property Tactical Asset Allocation (+0.13%) whilst Global Equities (-0.8%) were the largest detractor to the performance. The top positive contributions were Serko and NIKE. Corporate Travel software platform Serko entered the NZX50 during the month. Additionally, we since have seen Serko raise capital to fund its future growth ambitions as it continues to expand. NIKE was up 15% following very strong Q1 results. The main negative contributors to the performance of the fund were the a2 Milk Company (following an earnings downgrade driven largely by weakness and disruption in the Diagou (C2C/B2C) trade with some unwind of pantry stocking delaying new orders). In addition, global stocks within the International equities – 61% Information Technology sector that sold off following a strong Australasian equities – 14% rally in the previous quarter.