aberdeen std emerging opports fd · emerging-markets equities team of 55. kaloo and irvine, like...

Aberdeen Std Emerging Opports Fd....................................................................................................................................................................................................................................................................................

Morningstar Category Product Type Legal Type Morningstar Analyst Rating Morningstar RatingEquity Emerging Markets Retail Investment Trusts QQQ

Out of 59 funds as at 30 Jun 2020

Morningstar Take by Matthew Wilkinson 25 Jan2020

Aberdeen Standard Emerging Opportunities benefitsfrom an experienced, proven, and well-resourcedteam, although an evolving investment approach andthe strategy’s uncompetitive fees mean it no longerstands out amongst peers. Devan Kaloo and JoanneIrvine lead Aberdeen Standard’s large dedicatedemerging-markets equities team of 55. Kaloo andIrvine, like many of their colleagues, have spent themajority of their careers at the firm and their insightsare typically above-average. However, there has beensignificant personnel turnover in the Asia-Pacific regionsince the 2017 merger of Aberdeen and Standard Life,including eight combined departures in Kuala Lumpurand Hong Kong. While not all turnover has beenvoluntary, and most openings have been backfilled,the team nonetheless remains in flux and can nolonger be considered best-in-class. Encouragingly, thefirm has taken some positive steps since the merger,such as assigning sector coverage responsibilities toinvestment managers and overhauling theremuneration structure, which should improveaccountability for stock picks going forward. Addinganother element of uncertainty is an evolvinginvestment approach. Amid poor performance in 2017,the team revisited its thinking on many Chinanames--which it had long avoided because ofcorporate governance and transparency issues--andhas since added aggressively there. While it’spromising to see the team revisit existing views andbe more flexible, the shift raised concerns that theteam has become more relaxed on corporategovernance standards, notably the case with TencentHoldings. What’s more, the team’s stated effort tofocus more on stock selection has led to reined-insector/country deviations and falling active sharecompared with the MSCI Emerging Markets Index. Tothe team’s credit, performance has improved from 1Jan 2018 through 31 Dec 2019, with stock selectionin China being the primary driver. Overall, thestrategy’s tenured team is a positive, but its approachand fee level gives us pause.

Performance 30 Jun 2020

15.2

13.4

11.6

9.8

8.0

Growth of $10,000Fund$12,135

Market Index$13,327

Category$12,721

2015 2016 2017 2018 2019 YTD Annual

-3.37 11.76 17.78 -5.71 18.05 -8.64 Total Return %

0.87 8.55 1.76 5.75 8.92 15.31 Income Return %

-4.23 2.58 15.67 -11.27 8.01 -21.92 Growth Return %

NAv NAv NAv NAv NAv NAv Tax-Adj Return %

Trailing 6 Mth 1 Yr 3 Yr 5 Yr 10 Yr

Quartile * ( ( ( &.....................................................................................Total % -8.64 -4.39 2.61 3.78 5.66

Income % 15.31 15.31 9.92 7.97 4.71

Growth % -21.92 -18.28 -7.36 -4.40 0.62

Tax-Adj % NAv NAv NAv NAv NAv.....................................................................................Index % -7.89 -1.53 5.63 5.15 5.40

Category % -9.44 -4.05 4.46 4.51 4.54

3-Year Risk Measures Fund Category Index

Standard Deviation 12.30 12.42 11.70

Sharpe Ratio 0.15 0.26 0.40

R-Squared 89.02 82.86 --

Beta 0.99 0.95 --

Alpha -2.79 -1.39 --

Index: MSCI EM NR AUD

Portfolio 30 Jun 2020

Composition (30 Jun 2020) % Assets

Domestic Equity 0.00

Int'l Equity 98.83

Listed Property 0.00

Unlisted Property 0.00

Dom Fixed Interest 0.00

Intl Fixed Interest 0.00

Cash 1.17

Other 0.00

Top 10 Stock Holdings Sector % Assets

Tencent Holdings Ltd 10.51

Samsung Electronics Co Ltd

Participating Preferred

9.27

Taiwan Semiconductor Manufacturing

Co Ltd

7.90

AS SICAV I China A Share Eq Z Acc

USD

7.12

Ping An Insurance (Group) Co. of China

Ltd Class H

4.58

Housing Development Finance Corp Ltd 2.98

Naspers Ltd Class N 2.76

China Resources Land Ltd 2.54

Hong Kong Exchanges and Clearing Ltd 2.49

MercadoLibre Inc 2.43

Morningstar Style Box

Equity

Value Blend Growth

Smal

lM

idLa

rge

Large BlendThese funds own a mixture

of larger-sized growth and

value companies, or

companies which exhibit

both characteristics.

Top 5 Sector Weightings % Assets

Financial Services 23.12

Technology 21.60

Communication Services 17.98

Consumer Cyclical 10.54

Consumer Defensive 8.38

Top 5 Countries % Assets

China 36.65

India 10.92

South Korea 10.83

Brazil 7.37

Taiwan 6.82

Fees

One-time

Entry Fee/Contribution Fee 0.00%

Exit Fee/Withdrawal Fee 0.00%

Buy/Sell Spread 0.44%.....................................................................................Annual

ICR pa (30 Jun 2019) 1.55%

Performance Fee pa (30 Jun 2019) NAv

Management Fee pa 1.50%

Admin Fee pa 0.00%

Operations

Investment Details

Ticker/APIR Code 11594/ETL0032AU

Fund Inception 01 Jul 2004

Fund Status Open

Net Assets (Mil) 30 Jun 2020 $583.67

Entry Price 17 Jul 2020 $1.9868

Exit Price 17 Jul 2020 $1.9781

Purchase Information

Minimum Initial Investment $20,000

Minimum Additional Investment $5,000

Minimum Withdrawal $5,000

Switching Allowed Yes

Distributions Frequency Annually

Manager Info

Responsible Entity(RE) Aberdeen Standard

Investments Australia

RE Telephone NAv

RE Website NAv

Fund Manager Aberdeen Standard

Investments

Investment Detail | Print Date: 21 July 2020 Page 1 of 20

© 2020 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use ordistribution. Any Morningstar ratings/recommendations contained in this report are based on the full research report available from Morningstar or your adviser. Any general advice or ‘class service’ have been prepared by MorningstarAustralasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892) and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. Refer to our Financial Services Guide (FSG) for moreinformation at www.morningstar.com.au/s/fsg.pdf. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Our publications, ratings andproducts should be viewed as an additional investment resource, not as your sole source of information. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation,contact a professional financial adviser. Some material is copyright and published under licence from ASX Operations Pty Ltd ACN 004 523 782.

Ausbil Australian Active Equity....................................................................................................................................................................................................................................................................................

Morningstar Category Product Type Legal Type Morningstar Analyst Rating Morningstar RatingEquity Australia Large Growth Retail Investment Trusts QQQ


Morningstar Take by Alexander Prineas 16 Aug2019

Ausbil Australian Active Equity’s experienced portfoliomanagement and nimble approach keep it a stepahead of rivals. Paul Xiradis has skilfully managed theportfolio and the business to considerable success forover two decades--admirable tenure and stability. In2014 Ausbil became a part of New York LifeInvestment Management. Having a large insurancecompany as a parent provides financial stability,though we have noted Ausbil's product suite hascontinued to widen under NYLIM. We believe Xiradisand his team have their eye on maintaining solidperformance for their clients--Australian equitiesremain core to the business’ asset book, and itsreputation. However the group now has strategiesranging from Australian concentrated equities,sustainability, income, micro-caps, mid-cap,long/short, geared, and global small-caps, and iscontemplating further launches. These capabilitieshave been methodically built, but such wide productproliferation bears watching. The investmentexperience at Ausbil is what ensures our confidence.Xiradis is ably supported by John Grace (co-head ofequities) and Gian Pandit. Ausbil’s time-tested processbegins with chief economist Jim Chronis’macroeconomic research. This helps Xiradis and theanalyst team focus on sectors where the outlook isimproving. The analysts look for firms that they thinkare likely to have positive earnings revisions, believingthis is the key to outperformance. Xiradis’ portfolio isdiversified but tends to exhibit a cyclical bias, tosectors such as commodity stocks. The portfolio hasbeen underweight interest-rate-sensitive stocks andhas at times had a zero in REITs and infrastructure.Inevitably there are periods when the strategy's styleis unfavoured, particularly at turning points, or whencyclicals underperform. Ausbil has been able totemper the downside through its research intoearnings changes, while still benefiting on the upside.While we are watchful of product proliferation, webelieve Xiradis can manage this strategy prudentlythrough the cycle to deliver for investors.


16.0

14.5

13.0

11.5

10K


Market Index$13,329

Category$13,458

2015 2016 2017 2018 2019 YTD Annual

1.95 10.84 14.79 -7.04 27.18 -11.91 Total Return %

4.46 5.65 6.72 6.64 6.94 4.50 Income Return %

-2.55 4.68 7.35 -12.94 18.75 -15.76 Growth Return %



Quartile ( ( * * *.....................................................................................Total % -11.91 -6.65 4.82 5.86 7.71

Income % 4.50 6.32 6.76 6.60 5.20

Growth % -15.76 -12.32 -1.92 -0.85 2.28


Category % -8.38 -3.27 5.83 6.13 7.45




R-Squared 97.70 91.98 --

Beta 1.11 1.02 --

Alpha -0.51 0.72 --

Index: S&P/ASX 200 TR AUD


Composition (31 May 2020) % Assets


Int'l Equity 0.00





Cash 0.25

Other 0.00


CSL Ltd 9.41

Commonwealth Bank of Australia 8.33

BHP Group Ltd 8.33

National Australia Bank Ltd 6.41

QBE Insurance Group Ltd 4.80

Rio Tinto Ltd 4.50

Macquarie Group Ltd 3.65

Australia and New Zealand Banking

Group Ltd

3.62

Santos Ltd 3.31

Lendlease Group 3.10


Equity

Value Blend Growth

Smal

lM

idLa

rge



value companies, or





Basic Materials 23.11

Healthcare 14.46

Real Estate 6.16



Australia 100.00

Fees

One-time




ICR pa (30 Jun 2019) 0.90%

Performance Fee pa (30 Jun 2019) 0.00%


Admin Fee pa 0.00%

Operations

Investment Details

Ticker/APIR Code 6117/AAP0103AU


Fund Status Open









Distributions Frequency Semi-Annually

Manager Info

Responsible Entity(RE) Ausbil Investment

Management Limited

RE Telephone NAv

RE Website NAv

Fund Manager Ausbil Investment

Management Limited



Fidelity Australian Equities....................................................................................................................................................................................................................................................................................

Morningstar Category Product Type Legal Type Morningstar Analyst Rating Morningstar RatingEquity Australia Large Blend Retail Investment Trusts QQQQQ


Morningstar Take by Andrew Miles 21 Sep 2019

Fidelity Australian Equities is at the top of our listthanks to the talents of its adroit portfolio manager.Paul Taylor remains one of the most distinguishedinvestors in the market. He's enjoyed a long andsuccessful track record, having managed this strategysince 2003. Previously, he managed a range ofportfolios for the firm in London. Taylor is supported byone of the largest teams of fundamental analysts inthe peer group, led by director of research Viral Patel.Patel joined in June 2018 from T. Rowe Price. Therehas been elevated turnover in the analyst team in thepast four or five years, which we think has contributedto some uncharacteristic errors. It’s positive to seePatel working to remedy these issues with variousinitiatives. We’ve long admired Taylor’s patientthrough-the-cycle investment approach. He scans themarket for companies with enduring competitiveadvantages and long-term industry tailwinds. Hisunrelenting focus on structural winners andwillingness to look through transient issues has servedinvestors well. The portfolio has managed to come outon top through the resources boom, global financialcrisis, and the oil price collapse. Taylor’s portfoliotypically contains around 40 stocks. More recently, hehas decided to "barbell" the portfolio by investing inhigh-growth businesses and income-producing nameswith sturdy business models that generate ample freecash flow. He believes this carefully measured blendwill be able to negotiate the upcoming low growthenvironment. Performance was weaker in 2016-18. Asignificant position in Domino’s pizza hurt, but thestake in Wisetech Global was accretive. Still,long-term performance is excellent. Despite losing achunky institutional mandate over the last 12 months,this is still one of the largest funds at more than AUD13 billion in assets under management. The fee for thestrategy is 0.85%, with no performance fee.Ultimately, this is a reasonable cost for access to avery skilful portfolio manager at the top of his game.


16.0

14.5

13.0

11.5

10K


Market Index$13,329

Category$12,597

2015 2016 2017 2018 2019 YTD Annual

5.96 8.47 11.32 -3.86 23.19 -8.79 Total Return %

2.99 3.12 2.91 3.10 3.50 5.44 Income Return %

2.82 5.18 8.17 -6.78 19.05 -13.67 Growth Return %



Quartile & * & & &.....................................................................................Total % -8.79 -6.04 5.72 6.08 8.77

Income % 5.44 6.86 4.48 3.90 3.62

Growth % -13.67 -12.28 1.11 2.05 4.93


Category % -10.92 -7.50 3.93 4.71 6.75




R-Squared 97.77 94.65 --

Beta 0.96 0.99 --

Alpha 0.61 -1.26 --





Int'l Equity 0.00





Cash 1.92

Other 0.00



CSL Ltd 9.57

BHP Group Ltd 8.54

Coles Group Ltd 6.04

Domino's Pizza Enterprises Ltd 5.37

Suncorp Group Ltd 5.07

Goodman Group 5.00

Ramsay Health Care Ltd 4.85

Seek Ltd 4.44

Telstra Corp Ltd 3.72


Equity

Value Blend Growth

Smal

lM

idLa

rge



value companies, or






Healthcare 14.72


Real Estate 7.60


Australia 97.60

Papua New Guinea 1.81

New Zealand 0.59

Fees

One-time




ICR pa (30 Jun 2019) 0.85%



Admin Fee pa 0.00%

Operations

Investment Details

Ticker/APIR Code 12292/FID0008AU

Fund Inception 30 Jun 2003

Fund Status Open



Exit Price 17 Jul 2020 $31.8762



Minimum Additional Investment NAv

Minimum Withdrawal NAv


Distributions Frequency Quarterly

Manager Info

Responsible Entity(RE) FIL Responsible Entity

(Australia) Ltd

RE Telephone NAv

RE Website NAv

Fund Manager FIL Limited



Franklin Global Growth W....................................................................................................................................................................................................................................................................................

Morningstar Category Product Type Legal Type Morningstar Analyst Rating Morningstar RatingEquity World Large Growth Retail Investment Trusts QQQQQ


Morningstar Take by Andrew Miles 21 Mar 2020

Despite the departure of an esteemed portfoliomanager in late 2018, Franklin Global Growth remainsa high-calibre option for global equities. John Remmerttook over as head of the (mostly New York-based)team following Coleen Barbeau’s departure. He alsoassumed responsibility for managing the Australiantrust alongside Donald Huber. Remmert's appointmentwas a sensible decision; he had managed this portfoliofrom 2004 to 2006 and led the large-cap global equityteam for more than a decade. The team has alsointroduced two generalist analysts to managesuccession. Yan Lager (previously a cyclicals analyst)is transitioning to a generalist role, while PatrickMcKeegan was hired for the other position. The groupdid suffer two experienced analysts departing in 2019,but the quality of the remaining staff remains high. Weare keeping a keen eye on how the team worksthrough these changes and any impact on thestandard of research as some responsibilities areshuffled. Franklin’s process applies a long-termperspective, targeting high-quality growth companies.The team focuses on strong free cash flow, superiormanagement teams, and long-term growth prospects.There is a notable tilt to mid-cap names as these oftenhave a greater capacity to grow profits from a lowerbase. Only the highest-conviction ideas are included inthe (roughly 11 AUD billion) 35-40 stock portfolio,which pays little attention to the index. To mitigate theimpact of stock-specific risk, the portfoliomanagers/analysts consider the correlation betweenportfolio constituents’ earnings streams, regardless ofwhich sector they reside in. The portfolio exhibitshigher volatility compared with its peers and the index,but the patient approach has delivered strongrisk-adjusted returns over the long term. Performancein calendar year 2019 was particularly impressive asthe market favoured companies that delivered top-linegrowth above expectations. All up, Franklin GlobalGrowth’s competitive advantage remains, thanks to atalented team, proven investment process, andinexpensive fee.


22.0

19.0

16.0

13.0

10K


Market Index$16,603

Category$17,602

2015 2016 2017 2018 2019 YTD Annual

16.74 2.65 25.51 -3.69 35.76 11.27 Total Return %

10.83 8.69 5.16 2.65 4.29 6.02 Income Return %

3.72 -6.62 18.88 -6.19 30.20 4.56 Growth Return %

16.06 NAv NAv NAv NAv NAv Tax-Adj Return %


Quartile & & & & &.....................................................................................Total % 11.27 23.07 17.70 14.67 14.83

Income % 6.02 6.02 4.44 5.34 6.69

Growth % 4.56 15.65 12.56 8.45 7.03

Tax-Adj % NAv NAv NAv NAv NAv.....................................................................................Index % -3.60 5.18 10.76 9.37 12.36

Category % 3.88 11.56 13.56 10.74 12.11




R-Squared 81.00 83.27 --

Beta 1.15 0.91 --

Alpha 5.11 2.86 --

Index: MSCI World Ex Australia NR AUD

Portfolio 31 Mar 2020



Int'l Equity 94.86





Cash 5.14

Other 0.00


Equinix Inc 3.74

Regeneron Pharmaceuticals Inc 3.68

Visa Inc Class A 3.57

Danaher Corp 3.54

CoStar Group Inc 3.46

Verisk Analytics Inc 3.33

Synopsys Inc 3.31

Salesforce.com Inc 3.25

Aspen Technology Inc 3.24

Intercontinental Exchange Inc 3.22


Equity

Value Blend Growth

Smal

lM

idLa

rge

Large GrowthThese funds own mostly

larger-sized companies the

fund manager believes will

grow more quickly than the

sharemarket overall.


Technology 23.65


Industrials 15.69


Healthcare 12.99


United States 71.24

Switzerland 6.34

Belgium 5.33

Denmark 3.10

Netherlands 3.09

Fees

One-time




ICR pa (30 Jun 2019) 1.13%



Admin Fee pa 0.21%

Operations

Investment Details

Ticker/APIR Code 16740/FRT0009AU

Fund Inception 01 Oct 2008

Fund Status Open










Manager Info

Responsible Entity(RE) Franklin Templeton

Investments Aus Ltd

RE Telephone +61 3 96031200

RE Website www.franklintempleton.com.au

Fund Manager Franklin Templeton

Investments Aus Ltd



Investors Mutual WS Australian Share....................................................................................................................................................................................................................................................................................

Morningstar Category Product Type Legal Type Morningstar Analyst Rating Morningstar RatingEquity Australia Large Blend Wholesale Investment Trusts QQQ


Morningstar Take by Alexander Prineas 02 Aug2019

Investors Mutual Australian Share is an attractiveinvestment thanks to a savvy team and diligentinvestment approach. The consistent investmentphilosophy has served clients well since the shop wasestablished in June 1998. The shop emphasizesfundamental research, targeting well-managedcompanies with competitive advantages, predictableearnings, and cheap or reasonable prices. Portfoliopositions are determined by price targets and the levelof confidence. The low portfolio turnover andlong-term view adds tax efficiency but can mean IMLlags peers at times. For example, it will resist trendswhere it sees no fundamental underpinning. Whenshare prices plummet, IML will hold on if it believesquality and value are favourable. This means it can beslow to remove value stocks even if they are facingissues. The long-term mindset can thus result inuncomfortable periods, but it is a characteristic that allIML staffers share, and this discipline helps themavoid traps that shorter-term rivals may fall into. Thestrategy has three experienced portfolio managerswho are all savvy value investors, but their differentperspectives ensure robust debate. Senior analystDaniel Moore manages an increased 25% sleeve ofthe portfolio, gaining valuable experience for apotentially more senior role in future. That is sensiblesuccession planning given that equity earnouts forlongtime portfolio managers Anton Tagliaferro andHugh Giddy mature in 2023 and 2025, respectively.However, all three remain passionate investors. Theunderlying team has had bouts of turnover, but it hasalways been populated with smart analysts. Improvedincentivisation and a simpler business structure sinceNatixis Asset Management (France) became themajority shareholder in October 2017 appears to haveenhanced harmony at the shop. IML’s considerablefunds under management remain a watchpoint, butthere is no evidence of it affecting performance.Investors Mutual Australian Share has numerousstrengths and sturdy foundations, which will ensurepatient investors will be rewarded in the future.


16.0

14.5

13.0

11.5

10K


Market Index$13,329

Category$12,597

2015 2016 2017 2018 2019 YTD Annual

4.33 11.87 7.99 -3.77 17.29 -14.09 Total Return %

4.00 3.12 5.60 5.23 7.73 0.00 Income Return %

0.19 8.49 2.13 -8.60 8.58 -14.09 Growth Return %



Quartile ) ) ) ) &.....................................................................................Total % -14.09 -11.96 0.23 3.56 8.05

Income % 0.00 1.82 4.92 4.74 4.75

Growth % -14.09 -13.62 -4.58 -1.21 3.03


Category % -10.92 -7.50 3.93 4.71 6.75



Sharpe Ratio -0.01 0.23 0.30

R-Squared 95.20 94.65 --

Beta 0.84 0.99 --

Alpha -4.41 -1.26 --



Composition (31 Mar 2020) % Assets


Int'l Equity 0.00





Cash 7.73

Other 0.00


CSL Ltd 13.08

Telstra Corp Ltd 5.98


Aurizon Holdings Ltd 4.01

BHP Group Ltd 4.00

Amcor PLC 3.26

Tabcorp Holdings Ltd 3.09

Brambles Ltd 3.08

Westpac Banking Corp 2.99

Insurance Australia Group Ltd 2.88


Equity

Value Blend Growth

Smal

lM

idLa

rge

Large Value

These funds own mostly


fund manager believes are

overlooked by the market

and trading relatively

cheaply.



Healthcare 15.27





Australia 85.88

New Zealand 6.90

United Kingdom 5.03

United States 1.31

France 0.65

Fees

One-time




ICR pa (30 Jun 2019) 0.99%



Admin Fee pa 0.00%

Operations

Investment Details

Ticker/APIR Code 5339/IML0002AU


Fund Status Open

Net Assets (Mil) 29 May 2020 $2064.91









Manager Info

Responsible Entity(RE) Investors Mutual Limited

RE Telephone 02 92327500

RE Website www.iml.com.au

Fund Manager Investors Mutual Limited



Ironbark GCM Global Macro....................................................................................................................................................................................................................................................................................

Morningstar Category Product Type Legal Type Morningstar Analyst Rating Morningstar RatingAlternative Strategies Retail Investment Trusts

Morningstar Take by Simon Scott 19 May 2020

We have increased conviction in Ironbark GCM GlobalMacro's underlying manager, but the total fee providesa high hurdle. In April 2019, the subadvisor changedfrom K2 Advisors to Graham Capital Management, orGCM, a firm with over 25 years of quantitative tradingexperience. The portfolio changing from diversifiedalternative strategies to a quantitative macro futurestrading strategy across equities, bonds, currency, andcommodities. The GCM team is led by quantitativestrategies CIO Edward Tricker, who clearly articulatesthe philosophy of the strategy and the researchagenda. Our conviction has risen over the year in thesupport around him, which now numbers around 70across various groups. Being outside, but still close, toa major financial hub, GCM has built a strong culturewithin its campus-like headquarters. The reducedlevels of bureaucracy and ability to access keypersonnel were evident during March 2020 when thefirm's risk committee, as part of its daily meeting,decided to intervene and derisk the portfolio over anumber of days. The strategy is clearly defined,repeatable, and scalable. GCM does not aim toforecast markets, and the use of 55 markets acrossfour different component strategies that match theasset-price cycle should provide a diverse all-weatherportfolio. Fundamental data drives decision-making ina systematic manner and is a strong blend of the twoworlds. Employing a constant volatility of 10% is adifferentiator against those that average a volatilitytarget over time. Performance was solid during 2019but, as would be expected, struggled with the sharpinflection point of markets in early 2020. The strategyis down 15% since December 2019, somewhat worsethan its nearest proxy, the S&P Systematic GlobalMacro Index TR USD. We have conviction in GCM andits people and process, but the costs of this offeringare onerous. The total fee is the highest in theMorningstar Category, and it stands out as we've seena number of fee reductions in similar offerings. Someinvestors may feel this is a price worth paying, but wefeel its a high hurdle for GCM to have to overcome.


12.0

11.25

10.5

9.75

9.0


Market Index$10,961

CategoryNAv

2015 2016 2017 2018 2019 YTD Annual

0.82 1.15 3.53 -6.67 9.64 -11.02 Total Return %

0.00 0.77 2.92 0.00 0.00 0.00 Income Return %

0.82 0.37 0.51 -6.67 9.64 -11.02 Growth Return %

0.82 NAv NAv NAv NAv NAv Tax-Adj Return %


Quartile NAv NAv NAv NAv NAv.....................................................................................Total % -11.02 -6.40 -2.80 -1.04 1.42

Income % 0.00 0.00 0.00 0.73 0.37

Growth % -11.02 -6.40 -2.80 -1.78 1.04

Tax-Adj % NAv NAv NAv NAv NAv.....................................................................................Index % 0.22 0.71 1.46 1.67 2.59

Category % NAv NAv NAv NAv NAv


Standard Deviation 7.18 -- 0.17

Sharpe Ratio -0.56 -- --

R-Squared -- -- --

Beta -- -- --

Alpha -- -- --

Index: RBA Bank accepted Bills 90 Days

Portfolio

Composition (31 May 2020) % Actual % Benchmark % Minimum % Maximum


Int'l Equity 0.00





Cash 2.03

Other 97.97

NAv NAv NAv

NAv NAv NAv

NAv NAv NAv

NAv NAv NAv

NAv NAv NAv

NAv NAv NAv

NAv 0.00 35.00

NAv 0.00 200.00


Equity

Value Blend Growth

Smal

lM

idLa

rge

Fixed Income

Ltd Mod Ext

Low

Mid

Hig

h


Not Available


Not Available

Fees

One-time




ICR pa (30 Jun 2019) 1.88%



Admin Fee pa 0.00%

Operations

Investment Details

Ticker/APIR Code 5842/DEU0109AU

Fund Inception 30 Nov 1999

Fund Status Open


Entry Price 30 Jun 2020 $1.0510

Exit Price 30 Jun 2020 $1.0510







Manager Info

Responsible Entity(RE) Ironbark Asset Mgmt (Fund

Services) Ltd

RE Telephone +61 2 9418 0400

RE Website http://ironbarkam.com/

Fund Manager Graham Capital Management



Janus Henderson Tactical Income....................................................................................................................................................................................................................................................................................

Morningstar Category Product Type Legal Type Morningstar Analyst Rating Morningstar RatingBonds - Australia Investment Trusts QQ


Morningstar Take by Tim Wong 06 Mar 2020

Janus Henderson has set Tactical Income up to handlethe retirement of its highly respected senior investors.Glenn Feben and Noel Murphy are significant boots tofill, but thoughtful planning that has included thesteady ascent of team head Jay Sivapalan and asturdy process leave us confident in its prospects.Feben was one of the industry’s leading lights, and heretired at the end of 2019 alongside Murphy. Theshop’s telegraphed plans to transition theirresponsibilities have been enacted. Sivapalanascended to lead alongside Feben in August 2018, andShan Kwee arrived in early 2018 to bolster the creditranks. Sivapalan has become an increasinglyprominent decision-maker, and he is surrounded byfamiliar faces. Kwee’s quantitatively orientedbackground makes him more of unknown quantity, buthe has settled into this collegiate unit and taken onresponsibility for credit portfolios without fuss. TacticalIncome has structurally less interest-rate risk thanmost Australian bond strategies courtesy of its split,50/50 Bank Bills/Composite Index. It also has greaterfreedom to go off-benchmark into higher-octanesectors like emerging markets, loans, and high yieldand take sizable active interest-rate bets. Rapid assetsgrowth saw it expand into these riskier instruments in2017 as hybrids became a constraint. That said, theteam has been circumspect with these exposures,being careful to evaluate the prospective reward forrisk. That is not to say that they are gun-shy. Credithas been a long-standing and fruitful holding.Importantly, this hasn’t been a mindless chase foryield, as Henderson toned this allocation down whenspreads tightened during 2016-18. This vehicle’sshorter duration can handle rising interest rates betterthan more typical index-relative fare, though it alsolimits its ability to offset a bout of risk aversion. This ispar for the course for strategies like Tactical Income.Ultimately, we think this is a compelling offering,especially for investors who want modest sensitivityto broader interest-rate movements.


13.0

12.25

11.5

10.75

10K


Market Index$12,503

Category$12,040

2015 2016 2017 2018 2019 YTD Annual

2.59 2.94 3.43 2.63 2.87 2.00 Total Return %

3.89 3.34 2.61 2.93 1.02 2.64 Income Return %

-1.29 -0.41 0.79 -0.31 1.83 -0.68 Growth Return %



Quartile ) ) ) ) ).....................................................................................Total % 2.00 2.84 3.00 3.09 4.38

Income % 2.64 3.21 2.60 2.87 3.95

Growth % -0.68 -0.40 0.37 0.19 0.39


Category % 2.88 3.47 4.70 3.98 4.90




R-Squared 4.45 83.82 --

Beta 0.10 0.94 --

Alpha 1.13 -0.51 --

Index: Bloomberg AusBond Composite 0+Y TR AUD

Portfolio 30 Apr 2020



Int'l Equity 0.00





Cash 6.40

Other 0.00


Fixed Income

Ltd Mod Ext

Low

Mid

Hig

hLimited MediumThese funds own mostly

limited-duration bonds of

medium credit quality.

Bond Statistics

Average Effective Duration

Average Effective Maturity

Average Credit Quality

Average Weighted Coupon

Average Weighted Price

1.28

NAv

BBB

2.31

136.34

Fees

One-time




ICR pa (30 Jun 2019) 0.45%



Admin Fee pa 0.00%

Operations

Investment Details

Ticker/APIR Code 17406/IOF0145AU


Fund Status Open










Manager Info

Responsible Entity(RE) Janus Henderson Investors

(AUS) FM Ltd

RE Telephone NAv

RE Website www.henderson.com/australia

Fund Manager Janus Henderson Investors

(AUS) FM Ltd



Macquarie Income Opportunities....................................................................................................................................................................................................................................................................................

Morningstar Category Product Type Legal Type Morningstar Analyst Rating Morningstar RatingDiversified Credit Retail Investment Trusts QQQ


Morningstar Take by Tim Wong 27 Feb 2020

Macquarie Income Opportunities remains a finechoice, its strong and stable team fixated on building aconservative credit portfolio. This strategy does notreach quite the same heights under our revisedMorningstar Analyst Ratings framework, however, asintensifying competition particularly with respect tofees reduces Macquarie’s historic head start. Thisportfolio invests predominantly in a high-quality core ofliquid, investment-grade credit and cash, keeping itsinterest-rate duration fairly low. A longstanding andadept local credit research team handles thisallocation. CIO Brett Lewthwaite leads thisestablished, well-resourced group, with veterancolleague David Hanna a key figure handling thisstrategy. Macquarie’s measured approach has beenunflustered by major market hiccups, though this hasalso typically resulted in it lagging during credit bullruns. It’s consequently understandable that theperformance of Income Opportunities has fallen behindmost rivals over medium-term time frames. Macquariehas allocated modestly to global investment-grade,high-yield, and emerging-markets debt, bringing thesesleeves in-house in 2018. Greater integration andconviction in positions is possible, though we don’texpect immediate gains given the emerging-marketsteam was completed in 2019 and the continuedprimacy of Australian credit. The research process’rigour is highlighted in how this portfolio has avoidedany vulnerability to a downturn in the Australianeconomy, despite its material domestic creditallocation. We commend Macquarie for adopting alonger-term, more research-intensive mindset since2016, after shorter-term bets had appeared toundermine performance. Tactical calls are now moresporadic and require clearer justification. Some keyrivals have lowered their fees, so while IncomeOpportunities remains competitively priced, thisadvantage is moderated under our revised ratingsmethodology. Nonetheless, we continue to view theteam and approach favourably, meaning Macquarieremains a discernibly above-average credit offering.


13.0

12.25

11.5

10.75

10K


Market Index$12,801

Category$11,868

2015 2016 2017 2018 2019 YTD Annual

1.57 4.05 4.52 0.85 4.75 -0.90 Total Return %

2.11 2.89 4.02 2.78 3.72 3.29 Income Return %

-0.53 1.12 0.46 -1.88 0.98 -4.09 Growth Return %



Quartile ( ( ( ( (.....................................................................................Total % -0.90 0.49 2.14 2.63 4.18

Income % 3.29 4.52 3.67 3.52 4.26

Growth % -4.09 -3.89 -1.50 -0.88 -0.10


Category % 0.23 1.92 2.97 3.28 4.79




R-Squared 79.15 69.36 --

Beta 0.46 0.47 --

Alpha -0.95 -0.19 --

Index: BBgBarc Gbl Agg Corp TR Hdg AUD

Portfolio 31 May 2020



Int'l Equity 0.00





Cash 35.22

Other 0.00


Fixed Income

Ltd Mod Ext

Low

Mid

Hig

hLimited MediumThese funds own mostly

limited-duration bonds of


Bond Statistics






1.19

NAv

A

3.08

134.66

Fees

One-time




ICR pa (30 Jun 2020) 0.51%



Admin Fee pa 0.00%

Operations

Investment Details

Ticker/APIR Code 10715/MAQ0277AU

Fund Inception 19 Sep 2003

Fund Status Open






Minimum Additional Investment $500

Minimum Withdrawal $0


Distributions Frequency Monthly

Manager Info

Responsible Entity(RE) Macquarie Investment

Management Aus Ltd.


RE Website NAv

Fund Manager Macquarie Investment

Management Aus Ltd.



Magellan Global....................................................................................................................................................................................................................................................................................

Morningstar Category Product Type Legal Type Morningstar Analyst Rating Morningstar RatingEquity World Large Blend Retail Investment Trusts QQQQQ


Morningstar Take by Andrew Miles 23 Apr 2020

Magellan Global’s outstanding portfolio manager andmeticulous approach ensures this strategy remains atthe pinnacle of its peer group. The portfolio ismanaged by co-founder Hamish Douglass. During thepast decade he has proved himself as one of the mostdistinguished investors under our coverage. He issupported by a group of talented lieutenants, namelyStefan Marcionetti (comanager of Magellan GlobalTrust), Dom Giuliano (manager of the GlobalSustainable strategy), and Chris Weldon (comanagerof the High Conviction strategy). Notwithstandingsome departures in 2017, the nucleus has beenpleasingly stable. Additionally, a handpicked group ofexperts is used to help better understand monetarypolicies and geopolitical risks. Magellan’s fundamentalbottom-up approach seeks companies withsustainable competitive advantages that can growmore quickly than the overall economy. Due diligenceto identify these opportunities is painstaking andpatient. The portfolio consists of 20-40 stocks, aimingto strike a balance between high-quality growthcompanies and lower-volatility defensive stocks todeliver superior risk-adjusted returns over the longterm. There is a notable bias to US-domiciledmultinationals, IT and e-commerce platforms, andsturdy consumer franchises. Interestingly, the strategymade its first foray into Chinese Internet names(Alibaba and Tencent) during 2019. The portfolio canalso hold up to 20% in cash. Douglass has used cashshrewdly to protect the portfolio when markets havebeen skittish, leading to a downside-capture ratio ofapproximately 70%. This has contributed to anexceptional track record since inception (in 2007) toMarch 2020, thumping both the index and categorypeers. The firm’s rampant growth means it nowmanages AUD 93.9 billion, with AUD 72 billion in thisstrategy (as at 31 March 2020). Given the mega-capbias and low turnover approach, we aren’t overlyconcerned. The fee of 1.35% plus a performance fee isexpensive, but a dual hurdle on the latter iswell-structured. Ultimately, we believe Magellan hasthe ingredients for continued dominance.


20.0

17.5

15.0

12.5

10K


Market Index$16,603

Category$15,361

2015 2016 2017 2018 2019 YTD Annual

15.27 3.71 14.23 9.82 28.05 0.73 Total Return %

11.18 7.68 2.36 7.33 4.90 0.00 Income Return %

2.02 -4.73 11.44 1.98 22.08 0.73 Growth Return %



Quartile & & & & &.....................................................................................Total % 0.73 8.96 15.26 12.03 15.77

Income % 0.00 0.00 4.03 4.41 4.21

Growth % 0.73 8.96 10.68 6.96 10.71


Category % -4.50 3.05 8.69 7.78 10.84




R-Squared 76.93 86.88 --

Beta 0.76 0.94 --

Alpha 6.13 -1.36 --





Int'l Equity 84.60





Cash 15.39

Other 0.00


Microsoft Corp 7.25

Alibaba Group Holding Ltd ADR 6.08

Facebook Inc A 5.35

Alphabet Inc Class C 5.00

Starbucks Corp 4.85

Novartis AG 4.25


Reckitt Benckiser Group PLC 4.02

Nestle SA 3.73

Crown Castle International Corp 3.71


Equity

Value Blend Growth

Smal

lM

idLa

rge

Large GrowthThese funds own mostly


fund manager believes will

grow more quickly than the

sharemarket overall.





Technology 12.40

Utilities 10.17


United States 65.57

China 10.29

Switzerland 9.58

United Kingdom 4.82

Germany 3.70

Fees

One-time




ICR pa (30 Jun 2019) 1.49%



Admin Fee pa 0.10%

Operations

Investment Details

Ticker/APIR Code 15699/MGE0001AU


Fund Status Open










Manager Info

Responsible Entity(RE) Magellan Asset Management

Limited

RE Telephone 612 9235 4888

RE Website www.magellangroup.com.au

Fund Manager Magellan Asset Management

Limited



Magellan Infrastructure....................................................................................................................................................................................................................................................................................

Morningstar Category Product Type Legal Type Morningstar Analyst Rating Morningstar RatingInfrastructure - Global Retail Investment Trusts QQQQ


Morningstar Take by Andrew Miles 15 Jun 2019

Magellan Infrastructure remains one of our favourites.The team’s conservatism, patience, and thoughtfulportfolio construction should reward investors over amarket cycle. Head of infrastructure Gerald Stackleads the strategy and the seven-person team. Stackis an impressive investor and has demonstratedstock-picking prowess on this strategy since 2007.Previously, he worked at Capital Partners, gainingexperience in both equity and debt securities. Hisfastidious approach is shared by both portfoliomanagers that provide support. Ofer Karlinger and BenMcVicar joined in 2016 and 2013, respectively. Thedepth of the team allowed them to capably managethe retirement of Dennis Eager in 2017. Magellan pliesa conservative investment process, using a strictdefinition of infrastructure that results in a portfoliothat looks quite different from the benchmark. Tosatisfy the team’s lofty standards, a company mustpossess an asset that is essential for the efficientfunctioning of society and have profits that aren’toverly affected by competition, commodity prices, orsovereign risks. This prudence has helped the teamavoid names that have snared many of their peers.Californian Utility PG&E’s share price fell precipitouslyafter it filed for bankruptcy following a tragic wildfire.Similarly, Stack has dramatically reduced his positionin regulated utilities in the U.K. on concerns ofnationalisation if a Labour government is elected.Performance under Stack’s reign has been strong. Thestrategy has outperformed peers and the index sinceinception. Performance in down-markets has beenparticularly commendable: The portfolio’s defensivetendencies came to the fore in the last quarter of2018. However, investors should note, Magellan maylag when commodity-exposed names such as oil andgas pipelines rally. The total cost for this strategyincludes an expensive management fee and aperformance fee. Nevertheless, an expert teamapplying a meticulous process deserves the utmostrespect.


17.2

15.4

13.6

11.8

10K


Market Index$11,106

Category$13,168

2015 2016 2017 2018 2019 YTD Annual

10.63 6.71 17.43 -0.44 25.48 -13.49 Total Return %

2.68 7.23 8.50 4.54 3.13 0.00 Income Return %

7.63 -0.72 7.40 -4.84 21.72 -13.49 Growth Return %



Quartile ( ( * & &.....................................................................................Total % -13.49 -8.92 4.30 7.74 12.93

Income % 0.00 1.49 2.85 4.84 4.46

Growth % -13.49 -10.26 1.38 2.55 7.86

Tax-Adj % NAv NAv NAv NAv NAv.....................................................................................Index % -20.40 -16.25 -1.36 2.57 8.30

Category % -12.76 -7.17 3.52 5.76 10.74



Sharpe Ratio 0.28 0.22 -0.06

R-Squared 91.82 83.26 --

Beta 0.69 0.69 --

Alpha 4.37 3.51 --

Index: S&P Global Infrastructure NR Hdg AUD




Int'l Equity 73.31





Cash 11.53

Other 0.00


Atmos Energy Corp 6.46

Red Electrica Corporacion SA 4.96

Crown Castle International Corp 4.83

Enbridge Inc 4.69

Eversource Energy 4.67

Xcel Energy Inc 4.57

Transurban Group 4.49

Koninklijke Vopak NV 4.41

Sempra Energy 4.17

American Water Works Co Inc 3.52


Equity

Value Blend Growth

Smal

lM

idLa

rge



value companies, or




Utilities 53.14

Industrials 30.39

Energy 10.76

Real Estate 5.71


United States 46.10

Australia 14.00

Italy 8.28

Spain 8.26

Canada 6.83

Fees

One-time




ICR pa (30 Jun 2019) 1.06%



Admin Fee pa 0.10%

Operations

Investment Details

Ticker/APIR Code 15700/MGE0002AU


Fund Status Open










Manager Info

Responsible Entity(RE) Magellan Asset Management

Limited


RE Website www.magellangroup.com.au

Fund Manager Magellan Asset Management

Limited



MFS Global Equity Trust....................................................................................................................................................................................................................................................................................

Morningstar Category Product Type Legal Type Morningstar Analyst Rating Morningstar RatingEquity World Large Growth Wholesale Investment Trusts QQ


Morningstar Take by Andrew Miles 29 Feb 2020

MFS Global Equity’s shrewd team and disciplinedprocess make it an excellent choice for a coreallocation. The below-average fee sweetens the dealfurther, supporting our positive view. Roger Morleyand Ryan McAllister are the talented pairco-skippering this strategy. Morley has displayedprescient judgement during his time managing theportfolio, since 2009. McAllister was DavidMannheim’s designated successor after he ended hisillustrious career in April 2018. It’s a tough act tofollow and we are still watchful as McAllisterbroadens his knowledge of industries outside hisexpertise. He can rely on a deep pool of resourcesacross the firm, including a large group of fundamentalanalysts meticulously researching companies. Therewas also a lengthy transitional period where Morley,Mannheim, and McAllister all worked together on theportfolio, providing continuity. We’ve long been fans ofMFS’ approach. The well-worn process is disciplinedand repeatable. Rigorous fundamental researchuncovers companies that the group believe can growearnings and cash flows in a sustainable fashion.However, more borderline prospects have featured inthe 80- to 100-stock portfolio and contributed toweaker medium-term results compared with thebenchmark and MFS’ more concentrated sibling.Nevertheless, portfolio construction has been prudent,so problem stocks have usually been among thesmaller holdings. Performance has been propelled bylong-term holdings in structural growth names likeThermo Fisher Scientific, LVMH, and Visa. Notable tiltsto the consumer and healthcare sectors overcommodities can lead to performance diverging fromthe index. The portfolio tends to outperform in fallingmarkets due to the quality bias of its constituents.MFS has prioritized investors’ interest in managingcapacity. The FUM is approximately 75 billion AUD (at31 Dec 2019) and has re-opened to investors,following outflows. The combination of a judiciousteam, repeatable process, and inexpensive fee resultsin this strategy earning a place atop the podium.


19.2

16.9

14.6

12.3

10K


Market Index$16,603

Category$17,602

2015 2016 2017 2018 2019 YTD Annual

11.04 7.85 14.90 0.48 30.93 -6.92 Total Return %

7.78 10.75 11.25 9.42 10.56 0.00 Income Return %

2.18 -4.25 1.71 -8.82 17.89 -6.92 Growth Return %



Quartile ) ) ( ( &.....................................................................................Total % -6.92 0.26 8.85 9.03 13.12

Income % 0.00 0.00 6.55 8.31 5.42

Growth % -6.92 0.26 1.76 -0.21 6.74


Category % 3.88 11.56 13.56 10.74 12.11




R-Squared 95.06 83.27 --

Beta 0.98 0.91 --

Alpha -1.60 2.86 --





Int'l Equity 99.01





Cash 0.99

Other 0.00



Thermo Fisher Scientific Inc 3.45

Comcast Corp Class A 3.28

Nestle SA 2.91

Medtronic PLC 2.82

Accenture PLC Class A 2.72

Schneider Electric SE 2.59

LVMH Moet Hennessy Louis Vuitton SE 2.36

Roche Holding AG Dividend Right Cert. 2.34

Essity AB Class B 2.31


Equity

Value Blend Growth

Smal

lM

idLa

rge



value companies, or




Healthcare 21.23

Industrials 18.58



Technology 9.58


United States 52.60

France 11.14

United Kingdom 9.38

Switzerland 8.13

Germany 4.59

Fees

One-time




ICR pa (30 Jun 2019) 0.77%



Admin Fee pa 0.00%

Operations

Investment Details

Ticker/APIR Code 4532/MIA0001AU


Fund Status Open










Manager Info

Responsible Entity(RE) Equity Trustees Ltd

RE Telephone +61 3 8623 5290

RE Website www.eqt.com.au

Fund Manager MFS International Australia

Pty Ltd



OC Premium Small Companies....................................................................................................................................................................................................................................................................................

Morningstar Category Product Type Legal Type Morningstar Analyst Rating Morningstar RatingEquity Australia Mid/Small Blend Retail Investment Trusts QQQ


Morningstar Take by Ross MacMillan 12 Oct2019

An impressive portfolio manager and the dependableimplementation of a straightforward investmentprocess ensures OC Premium Small Companies retainsour conviction. Undoubtedly, the major strength of thestrategy is the high-calibre portfolio manager, RobertFrost, who displays impressive stock-picking andportfolio construction skills. Frost is also portfoliomanager on the micro-cap strategy and on the boardof Copia, the majority owner of OC FundsManagement. He is adeptly supported by a stable,experienced and knowledgeable three-personinvestment team, including two senior investmentanalysts, and an investment analyst. The investmentprocess is sensible and repeatable, with four basicsteps: initial proprietary screening, operational riskassessment (including detailed fundamentalbottom-up research), valuation, and ranking. The initialscreen typically eliminates companies fromconsideration that are unprofitable, overly complex, orsingle commodity-based mining businesses. Frostadopts a nimble, benchmark-unaware approach toportfolio construction, which results in a reasonablyconcentrated portfolio of 30-50 stocks, which tends tobe growth-orientated, through the cycle. While Frost isrestricted to a maximum of 8% of funds undermanagement in any one stock, he still has ampleflexibility in constructing the portfolio. However,turnover is high and typically tracks between 70% and80% per year. Despite disappointing short-termperformance, the strategy’s longer-term resultsremain impressive. On a trailing-returns basis to 31Aug 2019, the strategy has outperformed its equityAustralia mid/small-blend Morningstar Category indexand most peers over five and 10 years. The strategy’smanagement fee is reasonable and in line with othermanagers, but when combined with the performancefee, it results in a slightly expensive package. Thestock-picking skill of the portfolio manager andprocess consistency on display at OC Premium SmallCompanies remain positive attributes in maintainingour conviction in this strategy.


19.2

16.9

14.6

12.3

10K


Market Index$14,922

Category$16,287

2015 2016 2017 2018 2019 YTD Annual

22.31 1.17 20.32 -4.03 20.90 -11.82 Total Return %

0.39 0.93 0.86 2.90 7.93 0.00 Income Return %

21.83 0.23 19.33 -6.80 11.47 -11.82 Growth Return %



Quartile ) ) ( ( &.....................................................................................Total % -11.82 -6.25 5.14 7.55 11.55

Income % 0.00 0.29 3.70 2.52 2.03

Growth % -11.82 -6.52 1.21 4.79 9.26


Category % -7.86 0.86 7.72 9.36 9.48




R-Squared 94.15 89.28 --

Beta 1.12 0.98 --

Alpha -0.93 1.56 --

Index: S&P/ASX Small Ordinaries TR AUD




Int'l Equity 0.00





Cash 10.20

Other 0.00


Appen Ltd 6.45

Nextdc Ltd 5.48

Bapcor Ltd 4.18

Steadfast Group Ltd 4.18

Seven Group Holdings Ltd 3.56

Kogan.com Ltd 3.25

Janus Henderson Group PLC DR 3.06

Bravura Solutions Ltd 2.97

Baby Bunting Group Ltd 2.74

SeaLink Travel Group Ltd 2.71


Equity

Value Blend Growth

Smal

lM

idLa

rge

Small GrowthThese funds own mostly

smaller-sized companies

the fund manager believes

will grow more quickly than

the sharemarket overall.


Technology 22.50



Industrials 14.73



Australia 91.09

United States 5.68

New Zealand 3.23

Fees

One-time




ICR pa (30 Jun 2019) 1.20%



Admin Fee pa 0.00%

Operations

Investment Details

Ticker/APIR Code 9852/OPS0002AU

Fund Inception 08 Dec 2000

Fund Status Open










Manager Info

Responsible Entity(RE) Copia Investment Partners Ltd

RE Telephone +61 3 9602 3199

RE Website NAv

Fund Manager OC Funds Management

Limited



Perpetual W Share Plus L/S....................................................................................................................................................................................................................................................................................

Morningstar Category Product Type Legal Type Morningstar Analyst Rating Morningstar RatingEquity Australia Large Value Retail Investment Trusts QQQQQ


Morningstar Take by Michael Malseed 25 Oct2019

Perpetual Share-Plus is among our preferred long-shortAustralian equities strategies given its strongfundamental research underpinnings and high-calibreportfolio manager, but its value style has struggled inrecent times along with many of the other Perpetualstrategies. The fund was soft-closed in early 2018,meaning existing investors are able to make additionalcontributions, but it is not available to new investors.This discipline around capacity management ispleasing, although with AUD 1.1 billion in total assetsunder management as at 30 September 2019, this isone of the largest long-short strategies in theAustralian market. While size has some benefits, itlimits the opportunity set available for shorting (forexample, stocks with a market cap below AUD 800million are unlikely to have sufficient borrow availablefor this strategy to meaningfully short). Nevertheless,we think the manager’s fundamental approach is wellsuited to profiting from both long and shortopportunities among the more liquid mid- andlarge-cap Australian stocks. Portfolio managerAnthony Aboud continues to impress with his insightand analytical rigour. He has been the sole manager ofthis strategy since March 2015, having worked purelyon the short side of the ledger since early 2012. InDecember 2016, Aboud took on the additionalresponsibility of managing 50% of Perpetual IndustrialShare. While this elevates his workload, we arepleased Perpetual has provided Aboud with adedicated analyst to work on research-intensive shortideas. Share-Plus builds on the time-tested Perpetualinvestment process, where value and quality areparamount. This provides a solid foundation for longpositions but also is well suited for identifyingfundamental short opportunities. While performancehas been challenging on the long side, Aboud hasadded incremental value with successful shorts, mostrecently on Lend Lease and IOOF. Overall, while it hasbeen a challenging time for Perpetual’s value style, weremain confident in the long-term prospects of thisstrategy.


16.0

14.5

13.0

11.5

10K


Market Index$13,329

Category$11,136

2015 2016 2017 2018 2019 YTD Annual

7.14 4.47 17.12 -8.37 17.12 -10.31 Total Return %

9.38 5.47 4.93 10.59 5.01 2.13 Income Return %

-2.82 -1.30 11.52 -17.60 11.44 -12.22 Growth Return %

NAv NAv 17.48 -8.55 18.50 -10.31 Tax-Adj Return %


Quartile & & & & &.....................................................................................Total % -10.31 -6.96 2.41 4.26 9.68

Income % 2.13 4.23 6.31 5.93 6.14

Growth % -12.22 -10.82 -3.87 -1.80 3.01


Category % -14.32 -12.37 -0.02 2.16 6.20




R-Squared 88.64 93.14 --

Beta 0.87 1.00 --

Alpha -2.26 -4.64 --


Portfolio 30 Apr 2020


-25 0 25 50 75 100


Int'l Equity 14.23

Listed Property -2.79




Cash 6.76

Other 0.00


Omni Bridgeway Ltd 6.93

Flutter Entertainment PLC 5.68

CSL Ltd 5.54

Woolworths Group Ltd 5.27

Crown Resorts Ltd 4.93

BHP Group Ltd 4.66


La Francaise Des Jeux SA Ordinary

Shares

4.13

Incitec Pivot Ltd 4.13

Iluka Resources Ltd 3.87


Equity

Value Blend Growth

Smal

lM

idLa

rge

Medium BlendThese funds own a mixture

of medium-sized growth

and value companies, or








Industrials 9.05


Australia 81.56

United Kingdom 5.61

France 3.62

New Zealand 2.63

Canada 2.36

Fees

One-time




ICR pa (30 Jun 2019) 0.99%



Admin Fee pa 0.00%

Operations

Investment Details

Ticker/APIR Code 9836/PER0072AU

Fund Inception 14 Mar 2003

Fund Status Closed










Manager Info

Responsible Entity(RE) Perpetual Investment

Management Ltd

RE Telephone +61 02 9229 9000

RE Website www.perpetual.com.au/

Fund Manager Perpetual Investment

Management Ltd



PIMCO Diversified Fixed Interest W....................................................................................................................................................................................................................................................................................

Morningstar Category Product Type Legal Type Morningstar Analyst Rating Morningstar RatingBonds - Global / Australia Retail Investment Trusts QQQQQ


Morningstar Take by Tim Wong 15 Jan 2020

Investors seeking a holistic core bond strategy can begreatly confident in PIMCO Diversified Fixed Interest’sprospects. An expert team with an exacting processelevates this strategy above its peers. This is built onAustralian and global bond strategies that are leadingcapabilities in their respective domains. Rob Mead’sAustralian unit displays uncommon insight whendetermining how best to implement positions. Somestaff shuffles occurred during 2016-18, partially due totaking a more globalised approach to credit securityresearch. We haven’t observed any slippage in thecredit analysis, and at any rate the Australian unit isaccustomed to dealing with their global colleagues inmacro discussions such as interest-rate positioning.The global portfolio management team has alsosettled, welcome after distracting changes in 2014.Sachin Gupta and Andrew Balls are key figures. Theirtime in charge here isn’t the longest, but Gupta’sdisplayed a firm command of his portfolio and prudentrisk-taking mentality so far. This portfolio is a simple50/50 allocation to the firm’s Australian and globalbond capabilities. While duration won’t veer too farfrom its benchmark, exposure into high-yield,emerging markets debt and currencies, andsecuritised bonds can provide some spice, and may beparticularly susceptible to periods of capital flight. Thatsaid, PIMCO has reined in the size of its active betssince 2016, but we don’t think that the team is pullingits punches – its superior long-term track record hasbeen built on sensible decisions in the face of bothmarket promise and stress. Importantly, vigorousinternal debate remains pivotal to investmentdecisions. The starting point of low yields and tightcredit spreads makes it difficult to replicate historicalreturns in absolute terms. That said, almost all fixedinterest strategies face this challenge, and in our viewvery few of them have comparable advantages toPIMCO Diversified Fixed Interest. This strategyconsequently remains among the top picks in the field.


13.0

12.25

11.5

10.75

10K


Market Index$12,482

Category$11,757

2015 2016 2017 2018 2019 YTD Annual

2.67 5.02 4.26 2.14 7.43 2.09 Total Return %

4.18 6.89 1.94 2.18 7.85 2.00 Income Return %

-1.50 -1.92 2.25 -0.05 -0.59 0.06 Growth Return %



Quartile * & & & &.....................................................................................Total % 2.09 3.18 4.48 4.57 5.97

Income % 2.00 3.18 4.24 4.37 5.66

Growth % 0.06 -0.04 0.16 0.11 0.18


Category % 2.03 2.80 3.68 3.55 4.54




R-Squared 74.22 65.52 --

Beta 1.02 0.89 --

Alpha -0.71 -1.20 --

Index: Morningstar Aus UBS Comp/BCGA TR Hdg AUD




Int'l Equity 0.00





Cash 0.00

Other 0.00


Fixed Income

Ltd Mod Ext

Low

Mid

Hig

hExtensive MediumThese funds own mostly

extensive-duration bonds of


Bond Statistics






6.72

8.53

BBB

3.85

116.47

Fees

One-time




ICR pa (30 Jun 2019) 0.62%

Performance Fee pa (30 Jun 2019) NAv


Admin Fee pa 0.00%

Operations

Investment Details

Ticker/APIR Code 10882/ETL0016AU

Fund Inception 31 May 1999

Fund Status Open










Manager Info

Responsible Entity(RE) PIMCO Australia Management

Limited

RE Telephone NAv

RE Website NAv

Fund Manager PIMCO Australia Pty Limited



Platinum International Fund....................................................................................................................................................................................................................................................................................

Morningstar Category Product Type Legal Type Morningstar Analyst Rating Morningstar RatingEquity World Large Blend Retail Investment Trusts QQ


Morningstar Take by Matthew Wilkinson 28 Apr2020

Impressive leadership ensures our support, butPlatinum International’s patchy track record at usingits many investment tools and a weakened team leaveour conviction dimmed on this longstanding strategy.While Platinum has employed the same process since1995, its many moving parts have struggled to deliverconsistent outcomes. The process isvaluation-conscious, well-researched, and oftenthematically tilted, but it’s one where the portfoliomanagers express their views via short-selling,currency positions, net exposure and meaningfulsector and regional tilts. Their predilection to avoid thecrowded trades while looking to get ahead of the nextone precipitates significant benchmark-relative risks.Despite impressive downside protection, the processrequires many investment settings to be right toconsistently beat the benchmark. For example, a near40% underweighting the US over five years to 31 Dec2019 has proved costly. The team has also struggledto demonstrate a strong and sustainable shorting skillset. Though Kerr Neilson has relinquished hisco-portfolio manager role in 2018, he’s still heavilyinvolved as an analyst and remains a significantcoinvestor in the strategy. Andrew Clifford has been aco-portfolio manager since 2011 and provides muchstability, while Clay Smolinski was given increasingincrements of this strategy’s assets since 2017. Thecurrent breakup of assets is 70% to Clifford and 30%to Smolinski. Both exhibit impressive insights and havea wealth of experience, especially Clifford. However, alack of stability outside the top ranks has marredPlatinum. For example, portfolio manager SimonTrevett departed in 2017, as well as experiencedanalyst Curtis Cifuentes, and in 2018, long time Asiaanalyst Doug Huey departed. While we still applaudthe analyst research overall, they have slipped frombeing one of the best global equity teams in our view.The vast investment experience of the portfoliomanagers gives us confidence here, but processmissteps, team evolution and a hefty fee leave us lessenamoured.


18.0

16.0

14.0

12.0

10K


Market Index$16,603

Category$15,361

2015 2016 2017 2018 2019 YTD Annual

9.58 4.65 25.16 -8.45 17.75 -10.34 Total Return %

8.34 8.20 8.50 10.39 7.86 4.59 Income Return %

0.07 -4.36 14.32 -18.13 8.84 -14.44 Growth Return %



Quartile ) ) ) ) ).....................................................................................Total % -10.34 -4.08 3.38 4.68 7.76

Income % 4.59 4.59 7.59 7.89 6.01

Growth % -14.44 -8.47 -4.49 -3.71 1.12


Category % -4.50 3.05 8.69 7.78 10.84




R-Squared 56.82 86.88 --

Beta 0.64 0.94 --

Alpha -3.72 -1.36 --





Int'l Equity 87.15





Cash 12.59

Other 0.00


ZTO Express (Cayman) Inc ADR 3.77

Samsung Electronics Co Ltd 3.49

Amadeus IT Group SA A 3.04

Facebook Inc A 2.96

Booking Holdings Inc 2.74

Skyworks Solutions Inc 2.71

Takeda Pharmaceutical Co Ltd 2.68

Microchip Technology Inc 2.53

Sanofi SA 2.41

General Electric Co 2.40


Equity

Value Blend Growth

Smal

lM

idLa

rge



value companies, or




Technology 23.69

Industrials 15.02


Healthcare 11.18



United States 30.60

China 19.82

Japan 14.62

South Korea 6.42

Switzerland 4.28

Fees

One-time




ICR pa (30 Jun 2019) 1.35%



Admin Fee pa 0.00%

Operations

Investment Details

Ticker/APIR Code 4505/PLA0002AU

Fund Inception 30 Apr 1995

Fund Status Open










Manager Info

Responsible Entity(RE) Platinum Investment

Management Ltd


RE Website www.platinum.com.au

Fund Manager Platinum Investment

Management Ltd



Schroder Fixed Income Fund - Wholesale....................................................................................................................................................................................................................................................................................

Morningstar Category Product Type Legal Type Morningstar Analyst Rating Morningstar RatingBonds - Australia Retail Investment Trusts QQQ


Morningstar Take by Tim Wong 21 Jan 2020

Schroder Fixed Income’s judicious team remains trueto its value-oriented sensibilities, even as itincorporates more factors that can assist its portfoliotiming. This strategy is a fine option, especially inrelatively inexpensive fee vehicles. Schroder FixedIncome is benchmarked to the Bloomberg AusBondComposite Index. That said, the team can take highconviction views that pay little heed to this marker,reflecting a secondary desire to avoid absolute losses.Government, semigovernment, supranational,investment-grade credit, high-yield credit, and cashare investible, with scope to invest opportunisticallyoverseas. The valuation-driven mentality has led toelevated cash levels and relatively short interest-rateduration for several years since 2011 as yields havebroadly declined. Unfortunately, this has draggedgreatly on returns. Schroder subsequently addedshorter-term and momentum trend indicators in 2018to better grasp market sentiment and time its durationviews. There is a danger in straying too far from itsvaluation-driven roots, especially when material activebets have been a hallmark. Care is needed whenlooking at relatively short periods, but the shift tolengthen the portfolio’s duration in 2018/19 wasgrounded in macroeconomic research--we find thisheartening as it suggests a degree of repeatability.This hasn’t made up for the fallow performance run,but the process adjustments appear to sensiblybalance shorter-term factors while keeping true toSchroder’s medium term valuation proclivities.Furthermore, the experience and know-how here isreassuring. Simon Doyle has been instrumental toinstilling the long-term viewpoint and contrarian spirit.Stuart Dear has assumed more portfolio managementresponsibility from Doyle since 2018, but this smoothtransition has been facilitated by his tenure, teamstability, and the move to divide the group intospecialist units focusing on rates, credit andcurrencies. There consequently continues to be astrong investment case for Schroder Fixed Income.


13.0

12.25

11.5

10.75

10K


Market Index$12,503

Category$12,040

2015 2016 2017 2018 2019 YTD Annual

1.37 2.34 3.06 3.94 7.40 3.49 Total Return %

4.85 4.46 3.07 2.03 2.02 1.00 Income Return %

-3.39 -2.09 -0.06 1.88 5.26 2.45 Growth Return %



Quartile * & * ( (.....................................................................................Total % 3.49 4.27 5.31 4.32 5.29

Income % 1.00 2.01 2.02 2.79 3.97

Growth % 2.45 2.20 3.22 1.46 1.20


Category % 2.88 3.47 4.70 3.98 4.90




R-Squared 90.02 83.82 --

Beta 1.01 0.94 --

Alpha -0.28 -0.51 --

Index: Bloomberg AusBond Composite 0+Y TR AUD


Composition (31 May 2020) % Assets


Int'l Equity 0.00





Cash 8.16

Other 0.00


Fixed Income

Ltd Mod Ext

Low

Mid

Hig

hExtensive MediumThese funds own mostly

extensive-duration bonds of


Bond Statistics






6.52

NAv

A

3.32

NAv

Fees

One-time




ICR pa (30 Jun 2019) 0.50%



Admin Fee pa 0.00%

Operations

Investment Details

Ticker/APIR Code 10862/SCH0028AU

Fund Inception 25 Feb 2004

Fund Status Open

Net Assets (Mil) 17 Jul 2020 $2355.50







Switching Allowed No


Manager Info

Responsible Entity(RE) Schroder Investment

Management Aus Ltd


RE Website www.schroders.com.au

Fund Manager Schroder Investment

Management Aus Ltd



Vanguard Australian Property Secs Idx....................................................................................................................................................................................................................................................................................

Morningstar Category Product Type Legal Type Morningstar Analyst Rating Morningstar RatingEquity Australia Real Estate Wholesale Investment Trusts QQQ


Morningstar Take by Donna Lopata 05 Jun 2019

The combination of Vanguard’s passive equityleadership and the suitability of an index process forA-REIT exposure makes this strategy a compellingchoice. Vanguard Australian Property Securities indexaims to fully replicate the S&P/ASX 300 A-REITbenchmark. Vanguard is well-recognized for theirsophisticated indexing capabilities that help tominimise trading costs and keep tracking errormodest. Their experienced Asia-Pacific team is deeplyresourced with a headcount of 21 and a robustrisk-management focus. With its low management feeof 0.23%, the appeal of this passive strategy is strong,explaining its significant AUM of AUD 4.07 billion as at28 May 2019. The benchmark is cap-weighted andhighly concentrated with just 28 constituents,exacerbated by five large consolidations in 2018. Thetop 10 index names weigh more than 85% as atMarch 2019. Goodman Group and Scentre Group arethe largest holdings; each is over 15%. In such anarrow sector, few active managers in our coveragewere able to outperform the benchmark. It’s fair tosay, though, that there are disadvantages in beingchained to the index. GMG has enjoyed magnificentreturns of almost 230% in the five years to 30 April2019 but many active managers have had concernsabout GMG’s ability to sustain its marketcapitalisation. As an index strategy Vanguard cannottake a position on this and would feel the effects onreturns if a reverse in performance were to eventuate.Similarly, Vanguard was forced to retainUnibail-Rodamco-Westfield in this portfolio due to itssecondary ASX listing. Foreign ownership and revenuegeneration meant its URW holdings incurredwitholding tax. Whilst this is a rare situation that onlyhad a marginal effect on total returns, it is still anunexpected occurrence for A-REIT investors. Despitethese rigidities, we have strong conviction in thebenefits of an index approach for exposure toAustralian listed real estate. Coupled with Vanguard’simpressive systems we believe this strategy is aleading option in this sector.


17.2

15.4

13.6

11.8

10K


Market Index$12,507

Category$11,846

2015 2016 2017 2018 2019 YTD Annual

14.24 12.99 6.59 3.11 19.32 -20.95 Total Return %

4.93 4.81 3.18 10.26 5.99 4.06 Income Return %

8.77 7.90 3.23 -6.72 12.57 -24.53 Growth Return %



Quartile * * * * *.....................................................................................Total % -20.95 -20.74 2.22 4.66 9.22

Income % 4.06 5.75 7.05 6.14 5.71

Growth % -24.53 -25.60 -4.80 -1.57 3.18


Category % -21.40 -20.26 0.78 3.68 8.36




R-Squared 100.00 98.38 --

Beta 1.00 0.96 --

Alpha -0.11 -1.52 --

Index: S&P/ASX 300 A-REIT TR




Int'l Equity 0.00





Cash 0.00

Other 0.00


Goodman Group 23.26

Scentre Group 10.84

Dexus 9.66

Mirvac Group 8.22

GPT Group 7.82

Stockland Corp Ltd 7.60

Vicinity Centres 5.36

Charter Hall Group 4.34

Shopping Centres Australasia Property

Group

2.25

BWP Trust 1.85


Equity

Value Blend Growth

Smal

lM

idLa

rge

Medium ValueThese funds own mostly

medium-sized companies


are overlooked by the

market and trading

relatively cheaply.


Real Estate 100.00


Australia 99.00

France 1.00

Fees

One-time




ICR pa (30 Jun 2019) 0.23%



Admin Fee pa 0.00%

Operations

Investment Details

Ticker/APIR Code 4744/VAN0004AU

Fund Inception 27 Mar 1998

Fund Status Open










Manager Info

Responsible Entity(RE) Vanguard Investments

Australia Ltd

RE Telephone +61 1300655101

RE Website www.vanguard.com.au

Fund Manager Vanguard Investments

Australia Ltd



Vanguard International Property Secs Idx....................................................................................................................................................................................................................................................................................

Morningstar Category Product Type Legal Type Morningstar Analyst Rating Morningstar RatingEquity Global Real Estate Wholesale Investment Trusts QQQQ


Morningstar Take by Alexander Prineas 11 Feb2019

Vanguard International Property Securities Index offersa diversified global property portfolio, at a low cost.Vanguard’s well-executed passive approach isparticularly appealing given the low dispersion ofreturns in this sector, which makes it challenging foractive managers to beat the index. Vanguard chargesa low 0.43% annual fee (0.40% for the unhedgedversion) to track the FTSE EPRA/NAREIT Developedex-Australia Rental AUD Hedged Index. With amoderate number of names (306 at 31 Dec 2018),Vanguard can hold all or nearly all stocks in line withtheir index weights. Vanguard runs AUD 1.5 billion inthis strategy and is one of the largest index managersin the world, facilitating economies of scale andexcellent indexing capabilities. Vanguard also allowsfor some variation from the benchmark, balancing thetrade-off between tracking error and trading costs. Theportfolio is diversified across a few sectors, butcommon to most global property vehicles, industrialand office REITs take the lion’s share, at 27.6% at theend of 2018. Retail stocks make up another 21.4%. Adifferentiator is that the portfolio offers geographicdiversification by excluding Australia and emergingmarkets, limiting home bias for domestic investors.The approach has served Vanguard well over thelong-term, delivering peer-beating results, even on arisk-adjusted basis. Portfolio turnover has also beenmoderate, keeping a lid on tax and transaction costs.It’s worth noting that passive strategies have no scopeto damp risk versus the benchmark, and corporateactions of big companies could cause significantshifts. Income-focused investors should note thatcurrency hedging can cause income volatility due tohedging gains and losses. In July 2017, Vanguardelected for the Attribution Managed InvestmentTrusts, or AMIT, regime for this hedged vehicle. Thatshould help smooth income distributions, though itdoesn’t smooth out tax obligations. All up, the lowcost and diversification of Vanguard InternationalProperty Securities Index should serve long-terminvestors well.


15.2

13.9

12.6

11.3

10K


Market Index$10,122

Category$10,759

2015 2016 2017 2018 2019 YTD Annual

13.74 5.11 0.35 5.15 23.75 -19.28 Total Return %

5.01 7.32 7.47 10.18 4.07 3.15 Income Return %

8.08 -2.18 -7.02 -4.71 18.90 -22.18 Growth Return %



Quartile * * & & &.....................................................................................Total % -19.28 -13.30 2.48 4.36 9.64

Income % 3.15 4.69 6.34 6.67 5.13

Growth % -22.18 -17.67 -3.86 -2.40 4.13

Tax-Adj % NAv NAv NAv NAv NAv.....................................................................................Index % -22.50 -17.63 -1.89 1.62 8.14

Category % -19.77 -14.20 0.67 2.69 8.51



Sharpe Ratio 0.15 0.06 -0.09

R-Squared 72.03 90.50 --

Beta 0.72 0.89 --

Alpha 3.40 2.18 --

Index: FTSE EPRA Nareit Developed NR Hdg AUD




Int'l Equity 0.00





Cash 0.00

Other 0.00


Prologis Inc 5.89

Digital Realty Trust Inc 3.29

Vonovia SE 2.75

Public Storage 2.64

Equity Residential 1.95

AvalonBay Communities Inc 1.91

Welltower Inc 1.83

Alexandria Real Estate Equities Inc 1.64

Mitsubishi Estate Co Ltd 1.61

Realty Income Corp 1.58


Equity

Value Blend Growth

Smal

lM

idLa

rge

Medium ValueThese funds own mostly

medium-sized companies


are overlooked by the

market and trading

relatively cheaply.


Real Estate 99.91



United States 61.94

Japan 10.58

Germany 6.00

United Kingdom 4.21

Singapore 3.00

Fees

One-time




ICR pa (30 Jun 2019) 0.40%



Admin Fee pa 0.00%

Operations

Investment Details

Ticker/APIR Code 13426/VAN0018AU

Fund Inception 30 Sep 2005

Fund Status Open










Manager Info

Responsible Entity(RE) Vanguard Investments

Australia Ltd

RE Telephone +61 1300655101

RE Website www.vanguard.com.au

Fund Manager Vanguard Investments

Australia Ltd



Winton Global Alpha....................................................................................................................................................................................................................................................................................

Morningstar Category Product Type Legal Type Morningstar Analyst Rating Morningstar RatingAlternative Strategies – Managed Futures Retail Investment Trusts QQ


Morningstar Take by Simon Scott 08 Apr 2020

Winton Global Alpha retains strong talent and arigourous scientific investment process, but high feesdetract from its appeal. The strategy combines roughly55% in technical trend-based signals, with 45% infundamental signals that are complementary whentrend-following is not performing. Winton has beenvocal about the crowding and reduced efficacy intrend-following, and this has led to increased equityexposures and a reduction of trend-following toroughly a third in other products, but within this fundits minimum allocation is 50%. The research team hadbeen heavily rationalised over recent years but nowappears more stable, although it still lacks diversity ofexperience at the top, dominated by Winton lifers.Head of research Carsten Schmitz shifted roles in2020 and now manages a group of external tradersbrought into the Winton stable, another change in thefirm's focus, but we are comfortable in the researchbeing directed by co-CIOs David Harding and JonathanDuke. It is also pleasing to see Winton reducingorganisational barriers and give more accountability tothe individual strategy managers but is watchful thatthis doesn't create more layering in what is one of themost formal structures we have seen. After beingfrustrated with a heavy research focus on stocks,which this product cannot access, an increased focuson nontrend signals in new markets is a welcomeaddition to the 2020 research agenda. The strategyoffers a lower volatility profile than peers, so with ahigher use of nontrend models it was well-placed tomanoeuvre the trendless markets of recent years.However, in 2019 this led to it missing some largebond-led trends, and when markets fell in early 2020,the profile didn't offer protection and led it to its worstever drawdown. Transparency continues to be low, sodespite a rigourous process and talented team, wefeel that the firm is not warranted in chargingcategory-high fees whilst it transitions to competewith the top multistrategy firms. Until we gain moreclarity as to future potential drivers of returns, weprefer other offerings.


12.0

11.0

10K

9.0

8.0


Market Index$10,961

Category$8,882

2015 2016 2017 2018 2019 YTD Annual

5.16 -0.97 5.78 -0.52 0.40 -15.03 Total Return %

6.95 1.85 1.72 2.94 0.00 0.00 Income Return %

-2.20 -2.74 4.01 -3.38 0.40 -15.03 Growth Return %



Quartile ) ) ) ( ).....................................................................................Total % -15.03 -13.92 -2.98 -1.24 3.64

Income % 0.00 0.00 1.54 1.56 4.29

Growth % -15.03 -13.92 -4.45 -2.76 -0.85


Category % -5.16 -4.55 -1.69 -0.98 5.34



Sharpe Ratio -0.47 -0.02 --

R-Squared -- -- --

Beta -- -- --

Alpha -- -- --

Index: RBA Bank accepted Bills 90 Days

Portfolio

Composition (30 Jun 2020) % Actual % Benchmark % Minimum % Maximum


Int'l Equity 0.00





Cash 0.00

Other 100.00

NAv NAv NAv

NAv NAv NAv

NAv NAv NAv

NAv NAv NAv

NAv NAv NAv

NAv NAv NAv

NAv NAv NAv

NAv NAv NAv


Equity

Value Blend Growth

Smal

lM

idLa

rge

Fixed Income

Ltd Mod Ext

Low

Mid

Hig

h


Not Available


Not Available

Fees

One-time




ICR pa (30 Jun 2020) 2.04%



Admin Fee pa 0.00%

Operations

Investment Details

Ticker/APIR Code 15811/MAQ0482AU

Fund Inception 28 May 2007

Fund Status Open










Manager Info

Responsible Entity(RE) Macquarie Investment

Management Aus Ltd.


RE Website NAv

Fund Manager Winton Capital Management

Ltd.



Managed Fund Investment Detail Disclosure Statement - Advanced

Quick StatsA fund category is based on

exposure to asset classes, investment sectors, theinvestment style and market-cap allocation, and theassociated risk and return characteristics of funds. Theobjective of the classification system is to providegroupings of funds which can be reasonably considered tobe close investment alternatives and for whichperformance and other statistics such as fees arecomparable.

a qualitative assessment offive key pillars we believe will identify funds most likely tooutperform over the long term on a risk-adjusted basis(People, Process, Parent, Performance, and Price). TheAnalyst Rating operates on a five-point scale: ‘Gold’,‘Silver’, ‘Bronze’, ‘Neutral’, and ‘Negative’. ‘Under Review’means that a change at a rated fund requires furtherreview to determine the impact on the rating. ‘NotRatable’ means that either a fund has failed to providesufficient transparency to determine a rating, or that weare providing information on a new strategy whereinvestors require guidance as to suitability, but there is notyet sufficient information to rate the fund.

specific to platformversions of the relevant strategy. Australia and NewZealand funds carrying this rating have not been ratedunder the Morningstar Analyst Rating methodology. TheFlagship Fund Analyst Rating recognises that platformversions can have negotiable fees and reliablerepresentative cost data can be hard to come by. As aresult, platform versions will retain the linkage and therating of the Flagship share class.

The rating is calculated for funds withat least a three-year history based on a MorningstarRisk-Adjusted Return measure that accounts for variationin a fund’s monthly performance. The top 10% of funds ineach peer group receive 5 stars, the next 22.5% receive 4stars, the next 35% receive 3 stars, the next 22.5%receive 2 stars and the bottom 10% receive 1 star. Thepeer group is determined by the fund’s MorningstarCategory and Legal Type. The Overall Morningstar Ratingfor a fund is derived from a weighted average of theperformance figures associated with its three-, five- andten-year (for Australia) or three-and five-year (for NewZealand) Morningstar Rating metrics.

Morningstar TakeThe Morningstar Take is a summary of Morningstar’soverall opinion of the fund manager’s strategy andcapabilities in the asset class. If Morningstar has notqualitatively reviewed the manager, the PDS Objectiveand Fund Investment Strategy will appear in its place.

PerformanceThe performance data given represents past performanceand should not be considered indicative of future results.Principal value and investment return will fluctuate, sothat an investor’s shares when redeemed may be worthmore or less than the original investment.

The graph compares the growth of$10,000 in a fund with that of a capital market indexchosen by Morningstar and with that of the averagegrowth for all funds in its Morningstar peer group. Theindex is an unmanaged portfolio of specified securities.The index and the category average do not reflect anyinitial expenses however the category average returns arenet of ongoing fees. A fund’s portfolio may differ

significantly from the securities in the index.

The graph represents the fund’s total returnpercentile rank among funds in the same peer group. Theblack bar on the graph represents the quartile in which thefund-performance ranking falls. If the top quarter of thegraph is shaded, for example, the fund performed amongthe top 25% of its category that year.

Total return reflects performance without adjusting forsales charges but is adjusted to reflect all actual ongoingfund expenses and assumes reinvestment of distributions.Growth return is the percentage change in the scheme’ssoft close exit price adjusted for any capitalre-organisation. Income return is the total return lessgrowth return and reflects the level of distributions from afund. For Australian funds, performance is not adjusted fortaxation. For New Zealand PIE funds, tax credits are addedback to the performance. For New Zealand non-PIE fundsreturns are calculated net of tax. Trailing returns forperiods over one year are annualised.

Tax-Adjusted return is a pre-liquidation performancecalculation for Australian funds only that assumes thetaxed distribution amount (as opposed to the grossdistribution amount used in the total return calculation) isreinvested.

Risk Measures: Is a statistical measure of the

volatility of the fund’s return.

: A risk-adjusted measure calculated by usingstandard deviation and excess return to determine rewardper unit of risk. The higher the Sharpe Ratio, the better thefund's historical risk-adjusted performance.

: A measure of the difference between a portfolio’sactual returns and its expected performance, given itslevel of risk as measured by beta. A positive Alpha figureindicates the portfolio has performed better than its betawould predict.

: A measure of a fund's sensitive to marketmovements. If beta is greater than one, movements invalue of the fund that are associated with movements inthe value of the benchmark tend to be amplified.

: Measures the relationship between a portfolioand its benchmark. It can be thought of as a percentagefrom 1 to 100. R-squared can be used to ascertain thesignificance of a particular beta or alpha. Generally, ahigher R-squared will indicate a more useful beta figure.

FeesThe amount paid or payable

against the initial, and any subsequent, contributionsmade into a product by or for a retail client for theproduct.

The amount paid or payable onthe disposal of all interests held in a financial product.

The difference between the price atwhich you can buy a unit and sell a unit on any given day.This is a transaction cost incurred by the investor thatreflects the actual or estimated transaction costs incurredby the fund in dealing with the underlying securities.

The Indirect Cost Ratio is a ratio of the fund’smanagement costs that are not deducted directly from amember’s or product holder’s account, to the fund’s total

average net assets. Note: A dollar-based fee chargeddirectly against a member’s account, such asmanagement cost is not included in the indirect cost ratio.

The Management Expense Ratio, usually expressedas an annual percentage figure as a proportion of the NetAsset Value of the Fund, is the amount of an investor’smoney invested the Fund Manager takes each year to payfor the costs of operating and marketing the Fund.

The amount paid or payable, calculatedby reference to the performance of a product or fundabove a specified hurdle rate.

The percentage deducted from a fund'saverage net assets to pay the investment manager formanaging the fund's investments. For tiered feestructures, it is the highest fee. It is collected from theprospectus.

The percentage fee deducted for generaladministration of the fund. For tiered fee structures, it isthe highest fee.

Allowable commission amount that a fundwill pay the advisor on an ongoing basis. For tiered feestructures, it is the highest fee.

PortfolioThe graph represents a breakdown of the

fund’s holdings into general investment classes based onsurveyed data provided by the fund manager.

For equity funds the vertical axisshows the market capitalization of the stocks owned andthe horizontal axis shows investment style (value, blend orgrowth). For fixed-income funds the vertical axis showsthe average credit quality of the bonds owned, and thehorizontal axis shows interest rate sensitive as measuredby a bond’s duration (short, intermediate or long).

The largest equity exposure of afund's portfolio. Portfolio holdings information is based onthe most recent information available to Morningstar.

The Morningstar sectorstructure divides the stock universe into 129 industriesranging from semiconductors to medical equipment.These industries are classified into 41 industry groups,which are then used to construct 12 separate sectors.

The largest geographical exposure of afund’s stock assets. Country assignments are based onthe primary exchange where each stock is traded.

OperationsThe smallest investment

amount accepted by the product to establish a newaccount.

The amount required tomake subsequent investments in the product.

The smallest amount that can betaken out of the product at one time.

If it’s possible to switch betweeninvestments in the same offer document.

The number of times per year afund intends to distribute for the life of the offerdocument.



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