June 2020Totus Capital Pty Ltd (ABN 151 2 772) AFSL: 409468

Why Totus Capital? Totus is an independent investment firm managing funds on behalf of high net worth individuals,

platform unitholders and family offices

Totus manages the Totus Alpha Fund. A limited capacity ($500m soft close), absolute return offering concentrating on Long and Short equity ideas in Australia as well as the US

Diversified fundamental stock picking portfolio with emphasis on generating positive attribution fromlong book and short book

The Portfolio Manager and investors are highly aligned via significant personal investment in the fund

Experienced award winning team

Proven investment strategy that has delivered 15.8%* per annum net of fees since April 2012

Returns are uncorrelated to Australian and global share markets

*Past performance is not a reliable indicator of future performance 2

Recent Totus Developments

2018 Australian Market Neutral Fund Of The Year winner (Hedge Fund Rocks)

Over $250m of Assets Under Management (AUM)

Launched Cayman vehicle for non Australian domiciled investors

Highly experienced COO hire (Tony Hammond – started Feb 2019)

New analyst hire (Tim Warner – started June 2019)

Launched Totus Alpha Fund strategy in PDS format (April 2020)

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Award Winning Investment TeamBen McGarry (Portfolio Manager) has 19 years of financial markets experience on boththe buy and sell side of the industry. As an analyst at UBS Australia and Morgan Stanley inLondon, Ben covered a broad range of companies and sectors. Ben also qualified as aChartered Accountant with PricewaterhouseCoopers in Sydney.

Sam Granger (Portfolio Manager) joined Totus Capital in 2014, having previously workedat NAOS Asset Management as an emerging companies analyst. He holds a Bachelor ofCommerce (Liberal Studies) degree from the University of Sydney.

Tim Warner (Analyst) joined Totus Capital in 2019, having previously worked atCentennial Asset Management as an analyst for 2 years, focusing on ASX small and micro-cap companies. Tim holds a Bachelor of Chemical Engineering (Honours Class I and theUniversity Medal) degree from the University of Sydney.

4

Joanne CupplesClient Services

DistributionFinance and Operations

Investment Team

Ben McGarryCEO

Sam Granger Portfolio Manager

Ben McGarryPortfolio Manager

Tony Hammond Chief Operating

Officer

Andrew AitkenHead of

Distribution

Antonia Connolly* Bookkeeper

Organisational Chart

Kym Reynolds Executive Assistant

*Antonia works part-time

Tim WarnerAnalyst

5

6

Superior Scalable Long-Term Returns (Since inception April 2012 to May 2020 – net of fees)

Rolling (pa) Totus Alpha Fund ASX300 Accum Index Outperformance

1 -3.6% -6.5% 3.0%

2 -1.8% 1.8% -3.6%

3 9.3% 4.5% 4.9%

4 6.1% 6.0% 0.1%

5 11.2% 4.3% 6.9%

6 11.4% 5.3% 6.1%

7 15.3% 6.7% 8.6%

8 16.1% 8.2% 8.0%

Since Inception 15.8% 8.0% 7.8% $-

$50,000,000

$100,000,000

$150,000,000

$200,000,000

$250,000,000

$300,000,000

2012 2013 2014 2015 2016 2017 2018 2019 2020

Totus Alpha Fund FUM

7

Performance Quality(Since inception April 2012)

Totus Alpha Fund ASX300 Accum. Index

Alpha (per annum) 7.8%

Beta -0.12

Correlation -0.12

Sharpe Ratio 0.92 0.44

Sortino Ratio 1.76 0.63

Avg monthly return 1.32% 0.73%

Avg return in ASX up month 1.51% 2.82%

Avg return in ASX down month 0.95% -3.41%

Up months 61% 66%

Down months 39% 34%

Totus materially outperforms in down markets Totus also delivers solid returns in up markets Short book has been a consistent source of alpha generation Combination has delivered superior uncorrelated risk adjusted returns over 8 years

What is the Totus Capital Edge?

8

1.51%0.95%

2.82%

-3.41%-4.00%

-3.00%

-2.00%

-1.00%

0.00%

1.00%

2.00%

3.00%

4.00%Performance in Up Market Performance in Down Market

Average Performance in Up/Down Markets

Totus Alpha Fund ASX 300 Accum Index

Totus Alpha Fund rose in 10 out of 15 worst months since inception (April 2012)

Performance in the fifteen WORST ASX Months

9

10.4%

-1.4%

3.0%

4.1%

-4.2%

0.7% 1.0%

6.3%

1.8%

-1.0%

6.1%

-0.6%

6.1%

1.0%

-2.0%

2.1%

-20.8%

-7.8% -7.7%-6.7% -6.2%

-5.4% -5.4% -5.3%-4.5%

-3.7% -3.2% -3.0% -2.9% -2.7% -2.4%

-5.9%

Mar-20 Feb-20 Aug-15 May-12 Oct-18 Jan-16 Sep-14 Jun-15 May-13 Mar-18 Nov-14 Jan-14 Sep-15 May-17 Jun-16 Average

Totus Alpha Fund ASX 300 Index (incl. dividends)

Totus Alpha Fund rose in 10 out of 15 best months since inception (April 2012)

Performance in the fifteen BEST ASX Months

10

12.1%

2.7% 3.7%1.5%

-2.2%

-6.2%

2.7% 1.4% 1.1%

5.3%

-3.5%-1.4%

8.8%

-0.2%

-13.9%

0.8%

4.3% 4.3% 4.4% 4.4% 4.6% 4.8% 4.9% 4.9% 5.0% 5.3% 5.3%6.0% 6.4% 6.9%

9.0%

5.4%

Jul 15 Dec 16 Jul 14 Oct 15 May 20 Mar 16 Jan 20 Feb 14 Jan 13 Feb 13 Jul 13 Feb 19 Jul 16 Feb 15 Apr 20 Average

Totus Alpha Fund ASX 300 Index (incl. dividends)

Portfolio Exposure(% of net assets)

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-50%

0%

50%

100%

150%

200%

250%

300%

350%

Net exposure Gross exposure

Investment PhilosophyTotus = whole, all, entire, total, complete, every part

Markets are inefficient allowing opportunity for active stock pickers to add value In the long term prices of stocks will gravitate towards intrinsic business value, which is a function of

prospective free cash generation Bottom up, forensic analysis of financial statements (balance sheet, cashflow and profit & loss) will

identify opportunities on both the long and short side Analysing a company from the “entire, whole, complete” rather than being beholden to concepts of

“value” or “growth” generally results in optimal investment outcomes Portfolio’s designed to avoid gearing (at a net level), excessive concentration and illiquidity

This philosophy results in a portfolio of stocks with the following characteristics:

Long ShortTailwinds Headwinds

High quality earnings Low quality earnings

Cash Trash

Delivery Hype

Simple Complex

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Investment Process

Investible Universe:ASX300 + S&P 500 + select global mega caps

Screened Universe:+ Availability of borrow

Portfolio ConstructionThe bottom up research and Portfolio

construction process50-70 shorts

Researchable UniverseTotus themes then eliminates stocks

to a manageable universe of circa 300 stocks

n

Long

Screened Universe:Quant screening of market cap,

liquidity, earnings quality, Valuation

Researchable UniverseTotus themes then eliminates stocks

to a manageable universe of circa 300 stocks

Portfolio ConstructionThe bottom up research and Portfolio

construction process40- 60 longs

The investment process allows for widest universe of opportunities so that the portfolio can be protected through all market cycles

Initial Filtering

Structural Themes

Bottom Up Stock Selection

300 stocks

750 stocks

90-120 stocks

1000 stocks

13

Short

ESG Considerations for Long Investments

14

Totus Investment

s

EnvironmentalSustainable long-term business

models

SocialRespect for key stakeholders

GovernanceShareholder alignmentStrong board oversight

Transparent disclosure/accounts

Totus Long Investments

Historic Shorts and Future Opportunities

Guildford Coal

Gunns

Maverick Drilling

Linc Energy

Buccaneer Energy

Coalspur Mines

Dicksmith

Quintis

Slater & Gordon

Liquefied Natural Gas

Valeant Pharmaceuticals

Australian Careers Network

Energy World

New Century Resources

Domino's Pizza

Syrah Resources

Vocus

Retail Food Group

GetSwift

Blue Sky

BWX

Speedcast

Pioneer Credit

TeslaUber

ASX Listed

WeWork

0.1

1

10

100

1000

2011 2012 2014 2015 2016 2018 2019 2021

Peak

Mar

ket C

ap ($

b)

Historic Opportunities 15

Portfolio Construction and Positions Weight themes in portfolio based on:

- level of conviction- maturity of the theme- number and liquidity of relevant companies exposed to the theme

Rebalance portfolio and modify targets based on market conditions

Buy dips on good companies with tailwinds

Sell rallies in poor companies facing headwinds

Typically 100+ positions – (this is a guide only as to the average number of positions)

15% (net) hard limit at cost long book

5% (net) hard limit at cost short side

Gross up to 325% (average 225%)

Net < 150% (average 34%)

Listed Australian and Developed Market equities (mainly US) 16

To further refine the research effort the team identify medium to long term investment themes

Attempt to identify 5 or 6 themes on the long side and 5 or 6 themes on the short side

Examine contrasting views on the industry i.e. understand the bull vs the bear case

Assess market positioning. Where are we in the lifecycle of the theme or trend?

Assess risks to our view. Ask the question, where could we be wrong?

Structural Themes

17

Historical Portfolio examples

Theme Long/Short Long Stock Short Stock

Bricks to Clicks Long MicrosoftXero

Tech enabled cash burnersAustralian software

Global Pandemic Short Amazon Travel Agents

Structural Change Short Pizza franchisor

Traditional Media

RoyalCommission Short Netwealth Diversified financials

Fads Frauds & Failures Short

Ride shareElectric vehicle manufacturer

Unrolling roll-ups

Iron Ore Supply Disruption Long

Fortescue MetalsRio Tinto

BHP

* stocks are historical and may not represent the current portfolio

*

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Longs

Name ThemeMicrosoft Software

Smartgroup Value

Visa Cashless Society

CME Group Passive v Active

Objective Corp Owner Operator Culture

Alphabet Bricks to clicks

Facebook Bricks to clicks

Xero Software

Macquarie Group QE Beneficiary

Mastercard Cashless society

Shorts

ThemeFad Frauds & Failure

Structural Change

Balance Sheet Risk

Aggressive Accounting

Structural Change

Australian Housing

Aggressive Accounting

Earnings Risk

Royal Commission

Roll Ups

Portfolio Highlights

Disclaimer: Above represents the Totus Alpha Fund. This fund runs the same strategy and limits as the Totus Alpha Offshore Fund. *This is an indicative list and may not be in order of portfolio weighting.

*

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Short Example #1 – GetSwift

Meteoric share price rise lead to massive market capitalisation

Highly promotional ASX releases Untested management team

Internet investment chat room favourite

Customer feedback lukewarm at best

0.00

1.00

2.00

3.00

4.00

5.00

9-De

c-16

9-Ja

n-17

9-Fe

b-17

9-M

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7

9-Ap

r-17

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9-Ju

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9-Ju

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9-Au

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9-O

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9-N

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9-De

c-17

9-Ja

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b-18

85% return

Australian Financial Review – 6 Jan 18

20

Short Example #2 - Quintis

Huge cash burn, high debt

Poor corporate governance

Opaque end markets

Promotional management

Conflicted sell side research 0.00

0.50

1.00

1.50

2.00

2.50

12-F

eb-1

3

12-Ju

n-13

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12-Ju

n-16

12-O

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12-F

eb-1

7

86% return

21

Long Example #1 - Alphabet

Global leader in search

Significant un-monetised opportunities e.g. Al

Metronomic top-line and bottom-line growth

Net cash balance sheet

Material discount to Australian listed comparables 0

200

400

600

800

1000

1200

1400

1600

Oct

201

1

Jan

2012

Apr 2

012

Jul 2

012

Oct

201

2

Jan

2013

Apr 2

013

Jul 2

013

Oct

201

3

Jan

2014

Apr 2

014

Jul 2

014

Oct

201

4

Jan

2015

Apr 2

015

Jul 2

015

Oct

201

5

Jan

2016

Apr 2

016

Jul 2

016

Oct

201

6

Jan

2017

Apr 2

017

Jul 2

017

US $ AUD $

219% return24% IRR

22

Long Example #2 – Smartgroup

Trading below IPO issue price

40% discount to closest peer at entry point

The opportunity: Uncertainty around largest client renewal

Sticky customer base, significant recurring earnings

Significant insider buying from management and board0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

1-Ju

l-14

1-Se

p-14

1-N

ov-1

4

1-Ja

n-15

1-M

ar-1

5

1-M

ay-1

5

1-Ju

l-15

1-Se

p-15

1-N

ov-1

5

1-Ja

n-16

1-M

ar-1

6

1-M

ay-1

6

1-Ju

l-16

1-Se

p-16

1-N

ov-1

6

1-Ja

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1-M

ar-1

7

1-M

ay-1

7

1-Ju

l-17

1-Se

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1-N

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7

1-Ja

n-18

1-M

ar-1

8

702% return82% IRR

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Performance(net of fees)

Return (%) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec CYTD ASX300

2012 -0.08 4.13 4.07 -2.77 -1.04 -0.34 -1.92 1.02 1.26 4.17 10.28

2013 1.13 5.31 -1.06 9.21 1.84 7.21 -3.49 2.10 6.49 14.16 6.69 -0.39 60.14 19.68

2014 -0.59 1.44 1.43 -2.15 3.99 -3.02 3.70 2.02 1.02 0.87 6.14 -2.31 12.83 5.30

2015 4.60 -0.20 5.53 -4.53 -1.76 6.33 12.21 3.00 6.15 1.52 7.37 4.50 53.51 2.80

2016 0.67 -11.27 -6.15 -1.37 9.36 -1.98 8.82 2.58 -5.31 -7.08 -4.12 2.74 -14.26 11.79

2017 -2.00 -0.46 2.18 1.59 1.01 2.05 0.99 4.45 3.42 2.83 4.88 1.78 25.00 11.94

2018 3.68 4.61 -0.99 0.48 2.81 2.03 -0.02 0.40 -0.94 -4.21 0.41 -3.76 4.17 -3.06

2019 -1.10 -1.43 0.54 3.48 4.94 0.42 3.36 3.04 -1.18 -1.07 -0.14 -1.94 9.00 23.8

2020 2.71 -1.41 10.42 -13.88 -2.20 -5.83 -12.7

24

Annualised return (net of fees) 16.3%Annualised standard deviation 15.1%Reward to risk ratio 1.08

Long/Short Attribution

25*Attribution analysis is on a gross basis and does not include fees.

-100.0

0.0

100.0

200.0

300.0

400.0

500.0

600.0

Cumulative Gross Return - Long / Short / Futures Attribution*

Long Equities Short Equities Futures

Long/Short Attribution

26*Attribution analysis is on a gross basis and does not include fees. Net performance includes futures, currency and fees.

-30.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

-30.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%2Q

12

3Q12

4Q12

1Q13

2Q13

3Q13

4Q13

1Q14

2Q14

3Q14

4Q14

1Q15

2Q15

3Q15

4Q15

1Q16

2Q16

3Q16

4Q16

1Q17

2Q17

3Q17

4Q17

1Q18

2Q18

3Q18

4Q18

1Q19

2Q19

3Q19

4Q19

1Q20

Equity Long / Short Contribution to Quarterly Return*

Long (Gross) Short (Gross) Net Performance

Australia/Offshore Attribution

27*Attribution analysis is on a gross basis and does not include fees.

-100.0

0.0

100.0

200.0

300.0

400.0

500.0

600.0

Cumulative Gross Return - Onshore / Offshore / Futures Attribution*

Onshore Equities Offshore Equities Futures

Australia/Offshore Attribution

*Attribution analysis is on a gross basis and does not include fees. Net performance includes futures, currency and fees.28

-30.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

-30.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

2Q12

3Q12

4Q12

1Q13

2Q13

3Q13

4Q13

1Q14

2Q14

3Q14

4Q14

1Q15

2Q15

3Q15

4Q15

1Q16

2Q16

3Q16

4Q16

1Q17

2Q17

3Q17

4Q17

1Q18

2Q18

3Q18

4Q18

1Q19

2Q19

3Q19

4Q19

1Q20

Equity Onshore / Offshore Contribution to Quarterly Return*

Onshore (Gross) Offshore (Gross) Net Performance

29

Bear Market VolatilityS&P 500 High to Low Analysis

40.0

50.0

60.0

70.0

80.0

90.0

100.0

0 50 100 150 200 250 300 350 400 450 500 550 600

Perf

orm

ance

Sin

ce S

&P

500

High

(Bas

e: 1

00)

Days since S&P 500 High

GFC Dot Com 87 Crash Now

GFC Dot Com 87 Crash Average Now (1/5/20)Total Days - High to Low 356 638 72 355 24 to current lowTotal Decline -57% -49% -34% -46% Current low of -34%

Rally > 10% Fall > 10% Rally > 10% Fall > 10% Rally > 10% Fall > 10% Rally > 10% Fall > 10% Rally > 10% Fall > 10%Number 4 5 4 5 2 3 3 4 1 1Average % change 17% -25% 18% -23% 13% -19% 16% -22% 26% -34%Average days 22 54 68 73 4 22 31 50 28 24

30

Bear Market Recoveries

Drawdowns > 15%Total Return Annualised

Number Average % change Average daysGFC 2 -18% 79 103% 34.2%

Dot Com 1 -15% 69 53% 17.6%87 Crash 1 -20% 62 45% 14.9%

100

120

140

160

180

200

220

S&P

500

Perf

orm

ance

from

Bea

r Mar

ket L

ow (B

ase:

100

)

S&P 500 Index 3yr Peformance from Low of Bear Market

87 Crash GFC Dot Com

31

Bear Market Volatility

0

10

20

30

40

50

60

70

80

90

100

High to Low of Bear Market 3yr Recovery post Low VIX

Fund Summary

Fund Style Long Short Absolute Return

Domicile Australia

Manager Totus Alpha Management Pty Ltd

Functional Currency Australian Dollar

Inception 2 April 2012

Return since inception (net of fees) 230.8%

Prime Broker Morgan Stanley & Credit Suisse

Auditor Ernst & Young

Administrator CITCO Fund Services

Liquidity Monthly

Platforms Powerwrap, Ausmaq, Mason Stevens, Netwealth, HUB24

32

33

Currency exposure is hedged by funding foreign currency based stocks in their foreign currency: A short AUD stock will have a long AUD cash balance

A long AUD stock will have a short AUD debt balance

Foreign Currency exposure on P&L is monitored daily. Foreign currency exposures of >5% of NAV are flagged to the investment team to determine the exposure to be closed out.

The manager does have the ability to actively hedge currency but as currency forecasting is not a core competency the use of active hedging has been extremely limited since the inception of the fund.

Hedging Policy for Totus Alpha Offshore Fund

Disclaimer: Above represents the Australian Totus Alpha Fund. This fund runs the same strategy and limits as the Totus Alpha Offshore Fund

Address: Suite 1, Level 8, 139 Macquarie Street, Sydney NSW 2000

Telephone: +61 2 8072 9945Email: ir@totuscapital.com.auWeb: www.totuscapital.com.au

Disclaimer

This document is intended for general information of wholesale clients only. This document should not be passed on to any retail clients within the meaning of theCorporations Act 2001 (Cth). This document has been prepared by Totus Alpha Management Pty Ltd (ACN 155 266 734) Investment Manager of the Totus Alpha Fund(Fund). Totus Alpha Management is a Corporate Authorised Representative (CAR: 419151) of Totus Capital Pty Ltd (ABN 151 256 772) AFSL: 409468. Any information oradvice contained in this newsletter has been prepared without taking into consideration your objectives, financial situation or needs. All securities and financial productsor instruments involve risks. Past performance results are not necessarily indicative of future results and no guarantee is being made that similar returns will be achievedby the Fund. Investment in the Totus Alpha fund may not be suitable for all investors. No offer is being made hereby. Any offer relating to units in the Totus Alpha Fundshall be made only pursuant to the Information Memorandum and Constitution of the Totus Alpha Fund which outlines the risks associated with investing in the Fund aswell as other important information you must acknowledge prior to investing in the Fund.

Contact Details