nathan umapathy listed investment companies . william...

Alternative Investments: An introduction

‘Alternative Investment’ is a catch-all term applied to any investment that derives a return

through an exposure to one of the traditional asset classes, being shares, bonds, property or

cash. As such, it comprises an eclectic mix of investment strategies and structures, which

serve the common purpose of diversifying an investor’s portfolio through exposure to an asset

class that demonstrates little or no correlation to other assets in the portfolio.

(continued page 3).

Investment Highlights

As at the end of the Quarter, our key picks across pre-tax NTA and share price performance,

distribution yield (based on the previous 12 months and including Special Dividends) and

valuation were as follows. Please note that historical performance is no guarantee of future

performance.

Table 1: Quarter Highlights

It is important that clients are aware that the share price of a LIC is impacted by the oscillation

of the discount or premium to NTA, which should be taken into consideration when investing

in LICs. We therefore advise clients to view this report in conjunction with the Bell Potter

Weekly Indicative NTA. For further information please speak to your Bell Potter Adviser.

Inside this edition

� Opinion piece

� Coverage of 33 securities

Index

Table of Contents 2

Opinion Piece 3

Summary

Universe Summary 5

Investment Performance 6

Historical Gross Dividend Yield 7

Premium/Discount to NTA 8

Weekly Indicative NTA 12

Indirect Cost Ratio 15

PROFILES

Domestic Equity

Large Capitalisation 16

Large to Medium Capitalisation 21

Medium and Small Capitalisation 29

Small Capitalisation 34

Long/Short 36

Market Neutral 40

International Equity

Global 41

Country 45

Specialist Investment 46

Hybrid 49

Appendix A: Glossary of terms 51

Appendix B: Legend to Performance Measures

53

Appendix C: Disclosures 55

Liquidity 14

LISTED INVESTMENT COMPANIES.

31 October 2014

September Quarter 2014

Nathan Umapathy [email protected]

William Spraggett [email protected]

Bell Potter Securities Limited [email protected]

www.bellpotter.com.au

ABN 25 006 390 772

AFSL no. 243480

Source: Company data, Iress and Bell Potter

Pre-Tax NTA Performance (p.a.)

30-Jun-14 Large Lrg/Medium Med/Small Alternative Intl

(%) AFI CIN MIR ALF MFF

5 years 7.9 12.2 10.6 7.8 19.4

7 years 3.4 6.7 4.5 7.9 8.9

10 years 9.2 10.9 9.9 10.7 n/a

Share Price Performance (p.a.)


(%) AFI CIN MIR ALF MFF

5 years 7.9 15.2 13.1 16.7 22.1

7 years 4.5 8.3 7.0 14.7 13.6

10 years 10.5 12.2 12.8 14.6 n/a

Distribution


(%) DJW AMH MIR ALF PMC

Net Yield 5.8 7.2 7.9 7.3 4.4

Franking 100.0 100.0 100.0 100.0 100.0

Gross Yield 8.2 10.3 11.2 10.4 6.3

Valuation


(%) AUI DUI OZG NCC MFF

Current Disc/Prem -0.2 -5.1 -12.6 -13.6 -6.7

3 year avg -7.9 -8.6 -24.0 -24.0 -3.5

5 year avg -7.1 -7.7 -26.8 -26.8 -7.4

10 year avg -5.7 -6.7 n/a n/a n/a

LISTED INVESTMENT COMPANIES. 2

Table of Contents

Opinion Piece 3

Summary

Universe Summary 5

Investment Performance 6

Historical Gross Dividend Yield 7

Premium/Discount to NTA 8

Weekly Indicative NTA 12

Indirect Cost Ratio 15

LIC Profiles

Domestic Investment Focus

Large Capitalisation (AFI, ARG, DJW, AUI, CYA) 16

Large to Medium Capitalisation (MLT, BKI, CIN, DUI, WHF, AMH, CAM, FSI) 21

Medium to Small Capitalisation (WAM, MIR, WIC, WAX, OZG) 29

Small Capitalisation (CTN, ACQ) 34

Long/Short (ALF, CDM, WAA, NCC) 36

Market Neutral (WMK) 40

International Investment Focus

Global (MFF, PMC, TGG, HHV) 41

Country (AGF (china)) 45

Specialist Investment Focus

Fixed Income (HHY (wind-up)) 46

Income (ABW) 47

Activist (SNC) 48

Hybrids

Convertible Note (AFIG) 49

Preference Share (WHFPB) 50

Appendix A: Glossary of terms 51

Appendix B: Legend to Performance Measures 53

Appendix C: Disclosures 55

Liquidity 14


Opinion Piece

Alternative Investments: An introduction

Tim Bolger, Chief Operating Officer - Watermark Funds Management

The term ‘Hedge Fund’ has a tendency to hold a wide range of connotations for investors. From their beginnings in the

1960’s, to their heyday in the late 80’s and early 90’s and during their subsequent fall from grace in the late 90’s and early

00’s, hedge funds have successively been some of the best performing investment vehicles, a source of unbridled wealth

for top money managers who have attracted vast amounts of capital and the invisible force determining the fortunes of

nations, currencies and corporations.

Ironically, given the relative immaturity of the Hedge Fund industry in Australia, it was Australian born Alfred Jones who is

credited as the father of the hedge fund, launching the first iteration of the long/short equity fund in 1948. In those early

days, the central axiom for hedge funds was a simple one, focused on managing risk through the use of hedging strategies.

The modern hedge fund however is commonly considered to be a much more complicated beast, essentially providing a

broad investment mandate to allow the manager to express investment ideas across markets, asset classes and

commodities. Such exotic and unconstrained strategies must be distinguished from those that employ a simpler approach

to investing, following the same primary objective that Alfred Jones had over 60 years ago.

‘Alternative Investment’ is a catch-all term applied to any investment that derives a return through an exposure to one of the

traditional asset classes, being shares, bonds, property or cash. As such, it comprises an eclectic mix of investment

strategies and structures, which serve the common purpose of diversifying an investor’s portfolio through exposure to an

asset class that demonstrates little or no correlation to other assets in the portfolio.

Alternative equity strategies therefore seek to deliver returns that are uncorrelated to the underlying share market, using

equities and equity-based derivatives as the component assets of their portfolio. While agreed conventions for

nomenclature in the hedge-fund sector are hard to come by, in respect of alternative equity strategies one can categorise

funds in terms of their exposure to the underlying share market. Specifically, Long/Short equity strategies can be loosely

grouped into four categories:

1.Active Extension (130/30, 150/50) Funds

2.Variable Beta (directional) Funds

3.Market Neutral Funds

4.Equity Short Funds

These funds employ varying degrees of hedging as part of their investment strategy, to amplify, limit or eliminate an

investor’s exposure to movements in the broader share market, otherwise known as market ‘beta’. Further iterations of

these categories commonly found in the Australian marketplace include Event-driven and Global Macro funds.

While reducing exposure to risky assets in favour of cash is the most common means of managing risk in a portfolio,

hedging strategies allow an investor to retain an exposure to securities which offer the prospect of returns greater than an

investment in cash, while managing risk. The short-selling of securities is the principal means of hedging an investment

portfolio. In this way, a long/short investor will buy securities that are preferred to buy and short-sell over-valued securities

with weak fundamentals. In balancing the relative sizes of these investments, the investor’s exposure to the underlying

share market can be managed to a specific result. Whereas an active extension strategy will use hedging sparingly and

typically maintain an average net exposure to the share market of close to 100%, a variable beta strategy provides

flexibility to vary the net exposure of the fund according to the manager’s view on the outlook for the broader market.

Market neutral strategies on the other hand, completely hedge out exposure to the underlying share market by holding long

and short positions of equal value.

While utopia for a long/short manager will be that all positions are profitable in their own right, it is the way in which long

and short portfolios behave relative to each other when impacted by external forces, which demonstrate the power of a

long/short investment strategy. In the event of a market crash where the price of all securities falls, the investor’s losses on

a long position would be offset by the profit on the shorts which would also fall. The extent to which the investor had

hedged the investment and the relative performance would therefore dictate the profit or loss on the trade.


Opinion Piece (continued)

In a fully hedged structure like a market neutral fund, investors benefit to the extent that the long portfolio of shares that the

manager prefers, outperforms the portfolio of shares that have been sold short. In this way, the potential remains to turn a

profit in a falling market where the value of the short position falls further than that of the long.

Due to the relatively higher level of complexity associated with Long/Short strategies, they have typically been the domain

of sophisticated and institutional investors. This is true too in the context of Listed Investment Companies (LIC’s), which

are dominated by large funds employing variations of the buy and hold strategy for investing in equities. Many of the

qualities that characterise successful Long/Short investment strategies in equities render them well-equipped to meet the

key objectives of an LIC; namely, to deliver consistent portfolio returns over time and to pay a steady and growing stream

of franked dividends to shareholders.

Due to their ability to hedge out market risk, Long/Short strategies have the capacity to generate consistent returns with

lower volatility through a market cycle. In the context of an LIC, the ability to protect the company’s capital during periods

where equity market returns are poor enables the company to protect its dividend paying capacity as funded by retained

profits. This stability of returns and predictability of dividend paying capacity are of particular importance to classes of

investor to whom income and capital preservation are of paramount importance.

Like any investment, Alternative Equity Strategies have their own risk/reward dynamic and must be weighed on their

merits. Statistical analysis has shown however that returns from these strategies have little or no correlation with the

broader share market or in fact with each other. As such, they are one of the few investment options that offer investors

genuine diversification in a portfolio. Coupled with their focus on capital preservation and potential to deliver positive

returns in all markets, Alternative Equity Strategies, particularly in the context of an LIC are a worthwhile consideration.


On a Weighted Average basis, the LICs within the Bell Potter universe are trading at an average premium to pre-tax NTA of

3.8% as at 30 September 2014, higher than the prior Quarter. On an Arithmetic basis, the discount contracted to –1.0% from

-1.8% in the prior Quarter. Domestic LICs moved from a Weighted Average premium of 4.3% to a 4.5% premium in the

September Quarter. The performance and subsequent popularity of International LICs was reflected in their movement from a

4.2% discount in the June Quarter to a 4.5% discount as at 30 September 2014.

Table 4: Current Share Price Premium/Discount to NTA and Yield

�

Universe Summary

“HHY distributed a return of capital in the last 12 months

*12 month historical dividends including Special Dividends

*ICR with performance fee

ASX Code Company name

Investment

Mandate

Market

Cap

($m)

Price

($)

Pre-tax

NTA

($)

Prem/

(Disc) to

pre-tax

NTA (%)

Post-tax

NTA ($)

Prem/

(Disc) to

post-tax

NTA (%)

12 Mth

Dividend

Per Share

($)*

Net

Dividend

Yield

(%)*

Franking

(%)

Gross

Dividend

Yield

(%)*

Indirect

Cost

Ratio

(%)

Domestic Equity

AFI AFIC Large 6,462 5.95 5.66 5.1 4.80 24.0 0.220 3.7 100 5.3 0.17

ARG Argo Investments Large 5,033 7.58 7.22 5.0 6.38 18.8 0.280 3.7 100 5.3 0.15

DJW Djerriw arrh Investments Large 986 4.51 3.57 26.3 3.51 28.5 0.260 5.8 100 8.2 0.39

AUI Australian United Large 909 8.32 8.34 -0.2 7.19 15.7 0.320 3.8 100 5.5 0.11

CYA Century Australia Large 69 0.86 0.90 -4.9 0.92 -6.4 0.050 5.8 100 8.3 1.09

MLT Milton Corporation Large/Medium 2,724 4.26 4.16 2.4 3.72 14.5 0.180 4.2 100 6.0 0.13

BKI BKI Investment Large/Medium 866 1.56 1.58 -1.3 1.48 5.4 0.070 4.5 100 6.4 0.15

CIN Carlton Investments Large/Medium 723 27.30 29.89 -8.7 25.26 8.1 1.000 3.7 100 5.2 0.09

DUI Diversified United Large/Medium 585 3.41 3.60 -5.1 3.11 9.7 0.140 4.1 100 5.9 0.16

WHF Whitefield Large/Medium 322 4.22 4.34 -2.8 4.12 2.4 0.170 4.0 100 5.8 0.38

AMH AMCIL Large/Medium 211 0.90 0.87 3.4 0.81 11.1 0.065 7.2 100 10.3 0.65

CAM Clime Capital Large/Medium 78 0.96 1.04 -7.7 1.02 -5.9 0.043 4.5 100 6.4 1.74

FSI Flagship Investments Large/Medium 37 1.54 1.69 -9.1 1.61 -4.5 0.073 4.7 100 6.7 4.03

WAM WAM Capital Medium/Small 681 2.00 1.83 9.3 1.79 11.7 0.125 6.3 100 8.9 1.50

MIR Mirrabooka Medium/Small 358 2.54 2.20 15.5 2.00 27.0 0.200 7.9 100 11.2 0.64

WIC WestOz Investment Co. Medium/Small 147 1.14 1.23 -7.5 1.26 -9.2 0.090 7.9 100 11.3 3.40

WAX WAM Research Medium/Small 165 1.17 1.11 5.1 1.11 5.3 0.073 6.2 100 8.9 1.88

OZG Ozgrow th Medium/Small 70 0.20 0.22 -12.6 0.22 -11.8 0.015 7.7 100 11.0 4.42

CTN Contango Microcap Small/Micro 171 1.08 1.16 -7.5 1.12 -4.1 0.086 8.0 38 9.3 +n/a

ACQ Acorn Capital Small/Micro 44 0.87 0.95 -9.4 0.96 -9.8 0.000 0.0 0 0.0 n/a

ALF Australian Leaders Fund Long/Short 417 1.66 1.43 15.7 1.42 16.5 0.120 7.3 100 10.4 2.76

CDM Cadence Capital Long/Short 282 1.41 1.34 5.2 1.35 4.1 0.100 7.1 100 10.1 1.42

WAA WAM Active Long/Short 48 1.40 1.06 31.6 1.06 31.7 0.096 6.9 100 9.8 4.99

NCC Naos Emerging OpportunitiesLong/Short 38 1.08 1.25 -13.6 1.19 -9.2 0.053 4.9 100 6.9 4.97

WMK Watermark Market Neutral Market Neutral 85 0.98 1.02 -4.4 1.02 -4.4 0.025 2.6 100 3.7 4.76

0.0 0.01 0.0 0.0 0.01

MFF Magellan Flagship Fund Global 537 1.51 1.62 -6.7 1.43 5.5 0.020 1.3 0 1.3 1.40

PMC Platinum Capital Global 420 1.81 1.64 10.6 1.51 19.8 0.080 4.4 100 6.3 2.30

TGG Templeton Global Grow th Global 275 1.38 1.38 0.1 1.35 2.4 0.035 2.5 100 3.6 1.46

HHV Hunter Hall Global Value Global 214 1.14 1.28 -11.4 1.28 -11.4 0.065 5.7 14 6.0 1.77

AGF AMP Capital China Grow th China 292 0.78 0.99 -21.2 0.99 -21.2 0.019 2.5 0 2.5 1.97

0.0 0.01 0.0 0.0

HHY Hastings High Yield Fixed income 17 0.17 0.23 -28.3 0.23 -28.3 0.294 n/a" 0 n/a" 1.36

ABW Aurora Absolute Income 30 1.02 1.02 0.4 1.02 0.4 0.063 6.2 0 6.2 1.23

SNC Sandon Capital Activist 33 0.94 0.99 -4.9 0.99 -4.7 0.000 0.0 0 0.0 n/a

Arithmetic Average (All) -1.0 4.0 4.8 6.6 1.78

Weighted Average (All) 3.8 16.1 4.2 5.9 0.52

Weighted Average (Domestic Market Cap - Over $500m) 5.6 20.6 3.9 5.6 0.17

Weighted Average (Domestic Market Cap - Under $500m) 1.0 7.7 5.4 7.7 1.19

Weighted Average (Domestic All) 4.5 17.4 4.3 6.1 0.39

Weighted Average (International Equity) -4.5 1.9 3.0 3.7 1.77

Weighted Average (Specialist) -7.9 -7.8 40.1 40.1 1.96


Specialist


+CTN has purchased the rights of CAML(which is an assets manager) - as such the ICR is not reflective of the underlying vehicle


In the Table below, we have evaluated our LICs using the performance of both the pre-tax NTA and share price. The pre-tax NTA

data seeks to measure the performance of the underlying investments of the Fund. Whereas, the share price data measures the

performance of the security as it trades on the ASX. However, some of this terminology is a little misleading as the pre-tax NTA

actually reflects tax associated with realised capital gains (tax applicable on positions that have been exited) but not unrealised

capital gains (tax applicable on positions that have not been exited).

The measurement of a LIC’s performance is calculated after all operating expenses, provision and payment of both income and

realised capital gains tax and the reinvestment of dividends, but does not incorporate franking. LIC returns will consequently be

understated relative to the Index return given that the Benchmarks do not factor in operating costs or taxation. The performance of

Unlisted Unit Trusts are not measured on an after tax basis and are therefore, generally, not a valid comparison.

Table 5: Pre-tax NTA and Share Price Performance

In order to assess a LIC’s performance, NTA and share price need to be evaluated with respect to the relative mandate and/or

benchmark, given varying outcomes from different styles of investment. Hence, for the Domestic LICs we have categorised the

LIC’s Mandate into those with a Large, Large to Medium, Medium to Small, and Small Market Capitalisation investment focus,

Long/Short, International, and Specialist investment focuses following an analysis of the LIC’s Top 20 Holdings.

Investment Performance


CDM: In May 2011 CDM received $0.22 per CDM share of franking credits when RHG returned the majority of its assets in the form of a fully franked dividend. At the time, CDM shares were trading at $1.25. These franking credits were worth 17.6% of the CDM share price at the time and are not reflected in our performance calculations as the calculations are based on pre-tax NTA and not post-tax NTA.

Yr 1 Yr 3 Yr 5 Yr 7 Yr 10 Yr 1 Yr 3 Yr 5 Yr 7 Yr 10 Yr 1 Yr 3 Yr 5 Yr 7 Yr 10 Yr 1 Yr 3 Yr 5 Yr 7 Yr 10

Domestic Equity

AFI AFIC Large 6.0 15.6 7.9 3.4 9.2 0.1 0.8 1.1 2.0 0.8 7.4 20.1 7.9 4.5 10.5 1.5 6.1 1.2 3.3 2.3

ARG Argo Investments Large 6.5 15.5 6.8 2.2 8.1 0.6 0.7 0.0 0.8 -0.3 13.8 20.8 7.1 3.4 8.9 7.9 6.0 0.3 2.0 0.5

DJW Djerriw arrh Investments Large 4.6 13.9 5.8 1.5 7.8 -1.3 -0.9 -1.0 0.1 -0.6 8.1 18.0 8.0 4.4 9.3 2.2 4.0 1.3 3.2 1.1

AUI Australian United Large 6.4 15.5 6.8 1.6 8.9 0.7 1.1 0.2 0.4 0.7 13.8 20.9 8.0 2.8 9.7 7.9 6.9 1.3 1.6 1.5

CYA Century Australia Large 2.5 8.9 2.8 0.4 5.0 -3.2 -5.5 -3.8 -0.8 -3.2 8.3 18.0 5.5 1.1 6.0 2.4 4.0 -1.2 -0.1 -2.2

MLT Milton Corporation Large/Medium 3.9 15.1 7.3 2.8 8.2 -2.0 1.1 0.6 1.6 0.0 12.8 21.0 8.5 3.4 8.7 6.9 7.0 1.8 2.2 0.5

BKI BKI Investment Large/Medium 2.3 12.6 6.9 3.8 8.3 -3.4 -1.8 0.3 2.6 0.1 6.3 18.6 10.2 6.0 9.7 0.4 4.6 3.5 4.8 1.5

CIN Carlton Investments Large/Medium 10.7 19.4 12.2 6.7 10.9 4.8 4.6 5.4 5.3 2.5 18.9 27.7 15.2 8.3 12.2 13.0 13.7 8.5 7.1 4.0

DUI Diversif ied United Large/Medium 7.3 17.4 7.1 1.9 9.3 1.6 3.0 0.5 0.7 1.1 10.7 22.0 7.2 2.2 10.6 4.8 8.0 0.5 1.0 2.4

WHF Whitefield Large/Medium 8.7 21.2 8.3 1.9 6.7 0.7 0.5 -1.6 -1.3 -2.0 12.5 25.4 10.3 3.9 8.4 4.5 4.7 0.4 0.7 -0.3

AMH AMCIL Large/Medium 2.6 14.7 9.3 6.2 10.3 -3.3 -0.1 2.5 4.8 1.9 7.9 19.3 11.7 6.8 11.9 2.0 5.3 5.0 5.6 3.7

CAM Clime Capital Large/Medium -7.5 6.2 3.8 1.2 6.6 -13.4 -7.8 -2.9 0.0 -1.6 -7.3 11.1 9.9 0.8 6.9 -13.2 -2.9 3.2 -0.4 -1.3

FSI Flagship Investments Large/Medium 4.9 14.9 7.2 1.4 8.4 -1.0 0.9 0.5 0.2 0.2 17.3 12.8 7.8 1.9 9.4 11.4 -1.2 1.1 0.7 1.2

WAM WAM Capital Medium/Small 5.1 11.6 8.8 5.3 9.8 -0.8 -2.4 2.1 4.1 1.6 10.7 19.9 16.6 7.7 10.5 4.8 5.9 9.9 6.5 2.3

MIR Mirrabooka Medium/Small 5.7 17.1 10.6 4.5 9.9 0.9 9.9 8.4 7.9 4.7 8.2 25.5 13.1 7.0 12.8 2.3 11.5 6.4 5.8 4.6

WIC WestOz Investment Co. Medium/Small -4.0 5.5 1.1 n/a n/a -9.9 -8.5 -5.6 n/a n/a 4.9 18.2 8.1 n/a n/a -1.0 4.2 1.4 n/a n/a

WAX WAM Research Medium/Small 9.0 15.0 9.7 3.2 6.2 3.1 1.0 3.0 2.0 -2.0 8.2 27.9 17.0 7.9 8.6 2.3 13.9 10.3 6.7 0.4

OZG Ozgrow th Medium/Small -1.3 6.5 5.4 n/a n/a -7.2 -7.5 -1.3 n/a n/a 13.6 20.1 12.2 n/a n/a 7.7 6.1 5.5 n/a n/a

CTN Contango Microcap Small/Micro 2.3 5.3 1.1 -2.6 6.7 2.4 3.6 1.4 2.6 3.1 13.1 16.3 7.9 -0.7 8.9 7.2 2.3 1.2 -1.9 0.7

ACQ Acorn Capital Small/Micro n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a

ALF Australian Leaders Fund Long/Short -0.4 18.9 7.8 7.9 10.7 -6.3 4.9 1.1 6.7 2.5 2.3 26.5 16.7 14.7 14.6 -3.6 12.5 10.0 13.5 6.4

CDM Cadence Capital Long/Short 9.2 10.7 12.7 7.3 n/a 3.3 -3.3 6.0 6.1 n/a 13.5 16.6 24.7 10.8 n/a 7.6 2.6 18.0 9.6 n/a

WAA WAM Active Long/Short -2.9 6.3 4.1 n/a n/a -8.8 -7.7 -2.6 n/a n/a 22.1 19.8 13.6 n/a n/a 16.2 5.8 6.9 n/a n/a

NCC Naos Emerging Opportunities Long/Short 3.1 n/a n/a n/a n/a 3.2 n/a n/a n/a n/a 5.8 n/a n/a n/a n/a -0.1 n/a n/a n/a n/a

WMK Watermark Market Neutral Market Neutral 2.4 n/a n/a n/a n/a -0.1 n/a n/a n/a n/a -4.4 n/a n/a n/a n/a -10.3 n/a n/a n/a n/a


MFF Magellan Flagship Fund Global 25.6 28.7 19.4 8.9 n/a 8.0 9.1 10.6 8.1 n/a 7.4 34.3 22.1 13.6 n/a -10.2 14.7 13.3 12.8 n/a

PMC Platinum Capital Global 13.5 18.8 8.7 6.4 7.0 -5.4 -2.0 -1.6 3.8 1.7 22.0 27.6 5.4 4.9 3.6 3.1 6.8 -4.9 2.3 -1.7

TGG Templeton Global Grow th Global 13.9 22.0 9.1 1.2 4.3 -5.7 0.1 -2.0 -1.8 -0.9 21.8 30.4 13.6 1.4 0.5 2.2 8.5 2.5 -1.6 -0.8

HHV Hunter Hall Global Value Global 22.1 15.0 7.6 2.8 5.6 2.2 -7.2 -3.5 -0.2 0.4 27.4 21.4 11.2 3.7 5.3 7.5 -0.8 0.1 0.7 0.1

AGF AMP Capital China Grow th China 2.0 4.9 -0.8 n/a n/a -10.5 -2.0 -1.9 n/a n/a 1.7 8.4 -2.1 n/a n/a -10.8 1.5 -3.2 n/a n/a

HHY Hastings High Yield Fixed income 3.8 3.0 1.7 3.5 n/a -6.2 -7.0 -8.3 -6.5 n/a 39.2 25.4 16.7 9.6 n/a 24.8 10.8 6.1 1.2 n/a

ABW Aurora Absolute Income 2.0 4.0 n/a n/a n/a -3.9 -10.0 n/a n/a n/a 2.2 4.3 n/a n/a n/a -3.7 -9.7 n/a n/a n/a

SNC Sandon Capital Activist n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a

Investment Mandate

Specialist

ASX

Code

Pre-tax NTA Share price

ASX Listed

Investment Companies

Performance (%) Value-add+ (%) Performance (%) Value-add+ (%)


In general, the NTA has been benchmarked against the relative indices preferred by the Manager and these should be most

reflective of its mandate. The share price of each LIC, apart from International and Specialist LICs, has been benchmarked

against the All Ordinaries Accumulation Index, given this is the broadest index on the ASX and the exchange in which each LIC

trades. This is arguably a less relevant benchmark.

Our value-add columns seek to quantify the value generated by the Manager. It is the difference between the performance of the

share price and pre-tax NTA against the relevant benchmark. A positive value indicates outperformance against the Benchmark

and a negative value indicates an underperformance. We view the pre-tax NTA value-add as the most relevant measure of man-

agement performance.

Dividends are an important aspect of any investment decision. In the Graph below, we have included historical Net Dividend Yield

and Gross Dividend Yield for the LICs in our universe. Nonetheless, investors must realise that although historical yield is clearly a

key consideration when selecting a LIC, it is no guarantee of future yield.

Graph 3: Historical Dividend Yield (Net and Gross)

Investment Performance (continued)

Historical Gross Dividend Yield

0%

2%

4%

6%

8%

10%

12%

14%

AF

I

AR

G

DJW

AU

I

CY

A

MLT

BK

I

CIN

DU

I

WH

F

AM

H

CA

M

FS

I

WA

M

MIR

WIC

WA

X

OZ

G

CT

N

AC

Q

AL

F

CD

M

WA

A

NC

C

WM

K

MF

F

PM

C

TG

G

HH

V

AG

F

HH

Y*

AB

W

SN

C

Div

iden

d Y

ield

Gross Yield Net Yield *No dividend yield as HHY distributed a capital return over the last 12 months


Lrg Cap mandate Lrg/Med Cap mandate Med/Sml Cap mandate

Long/Short & Neutral

International Specialist Small

N/A

N/A

*Includes Special Dividends


We have categorised our universe of LICs according to the percentage premium or discount the share price trades at relative to

the pre-tax NTA.

Table 6: Share Price Premium/Discount versus Pre-Tax NTA

LICs often trade at a consistent premium or discount to NTA, with the standard deviation providing a measure of the range in

which a LIC’s premium/discount normally falls. By determining each LIC’s average premium/discount we can look for anomalies

between average premiums/discounts to NTA and current premiums/discounts to NTA. We have calculated each LIC’s 5-year

average (please note ABW listed on the ASX in Mar 2011, NCC in Feb 2013, WMK in July 2013, SNC in Dec 2013 and ACQ in

Apr 2014) share price premium/discount to reported pre-tax NTA as well as its standard deviation from that average, which we

portray in the below graph. Here, we are trying to convey whether or not a LIC is cheap or expensive compared to its historical

average.

Graph 4: Share Price Premium/Discount to Pre-Tax NTA Relative to 5-year Average

The average share price discount to pre-tax NTA increased to 1.4x standard deviation compared to the previous quarter of 1.2x

standard deviation. In the Large Market Capitalisation investment focus, AFI looked the most reasonably valued. LICs with Large

to Medium Capitalisation investment mandates continue to trade at substantial premiums, apart from FSI. Medium to Small and

Long/Short mandates all continue to look expensive on a historical premium/discount basis. International focused LICs have

performed exceptionally well over the past year in particular, and have traded at historical highs in comparison to their NTAs.

However, MFF is starting to show some value.

-1.0x

-0.5x

0.0x

0.5x

1.0x

1.5x

2.0x

2.5x

3.0x

AF

I

AR

G

DJW

AU

I

CY

A

MLT

BK

I

CIN

DU

I

WH

F

AM

H

CA

M

FS

I

WA

M

MIR

WIC

WA

X

OZ

G

CT

N

AC

Q

AL

F

CD

M

WA

A

NC

C

WM

K

MF

F

PM

C

TG

G

HH

V

AG

F

HH

Y

AB

W

SN

C

Sta

nd

ard

Dev

iati

on

Premium/Discount to NTA



Lrg Cap mandate Lrg-Med Cap mandate Med-Sml Cap mandate Long/Short/

Neutral International Specialist

N/A

N/A

N/A

N/A

N/A

% % %

WAA WAM Active 31.6 WAM WAM Capital 9.3 HHV Hunter Hall Global Value -10.6

DJW Djerriwarrh Investments 26.3 CDM Cadence Capital 5.2 OZG Ozgrowth -11.6

ALF Australian Leaders Fund 15.7 AFI AFIC 5.1 NCC Naos Emerging Opportunities -12.9

MIR Mirrabooka 15.5 WAX WAM Research 5.1 AGF AMP Capital China Growth -14.0

PMC Platinum Capital 10.6 ARG Argo Investments 5.0 HHY Hastings High Yield -14.0

AMH AMCIL 3.4

MLT Milton Corporation 2.4

ABW Aurora Absolute 0.4

TGG Templeton Global Growth 0.1

AUI Australian United -0.2

BKI BKI Investment -1.3

WHF Whitefield -2.8

WMK Watermark Market Neutral -4.4

CYA Century Australia -4.9

SNC Sandon Capital -4.9

DUI Diversified United -5.1

MFF Magellan Flagship Fund -6.7

CTN Contango Microcap -7.5

WIC WestOz Investment Co. -7.5

CAM Clime Capital -7.7

CIN Carlton Investments -8.7

FSI Flagship Investments -9.1

ACQ Acorn Capital -9.4

Substantial premium Approximately in line Substantial discount


In Graph 5 we have provided some context to the share price premium or discount to pre-tax NTA. Pre-tax NTA reflects realised

capital gains (tax applicable on positions that have been exited) but not unrealised capital gains (tax applicable on positions that

have not been exited).

Graph 5: Share Price Premium/Discount versus Pre-Tax NTA

Graph 6 shows the share price premium/discount against post-tax NTA. Post-tax NTA reflects realised (tax applicable on positions

that have been exited) and unrealised capital gains (tax applicable on positions that have not been exited). While this measure is

arguably less relevant, it does provide additional comparison, particularly when viewed with Graph 3. Post-tax NTA is most useful

in a wind-up scenario.

Graph 6: Share Price Premium/Discount versus Post-Tax NTA

-35.0%

-25.0%

-15.0%

-5.0%

5.0%

15.0%

25.0%

35.0%

AF

I

AR

G

DJW

AU

I

CY

A

MLT

BK

I

CIN

DU

I

WH

F

AM

H

CA

M

FS

I

WA

M

MIR

WIC

WA

X

OZ

G

CT

N

AC

Q

AL

F

CD

M

WA

A

NC

C

WM

K

MF

F

PM

C

TG

G

HH

V

AG

F

HH

Y

AB

W

SN

C

Sh

are

Pri

ce

Pre

m/D

isc

to

Po

st-

tax

NT

A

-30.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

AF

I

AR

G

DJW AU

I

CY

A

ML

T

BK

I

CIN

DU

I

WH

F

AM

H

CA

M

FS

I

WA

M

MIR

WIC

WA

X

OZ

G

CT

N

AC

Q

AL

F

CD

M

WA

A

NC

C

WM

K

MF

F

PM

C

TG

G

HH

V

AG

F

HH

Y

AB

W

SN

C

Sh

are

Pri

ce

Pre

m/D

isc

to

Pre

-ta

x

NT

A


Premium/Discount to NTA (continued)


Lrg Cap mandate Lrg-Med Cap mandate Med-Sml Cap mandate Long/Short/ Neutral

International

Specialist

Lrg Cap mandate Lrg-Med Cap mandate Med-Sml Cap mandate Long/Short/

Neutral International

Specialist


Graphs 7 & 8 show the pre-tax NTA performance of each LIC, assuming dividends are reinvested, over the past 3 and 5 years.

This is reflected by its position along the horizontal axis, with LICs further to the right having achieved higher returns. The Graphs

also highlight the share price premium or discount to pre-tax NTA at which each LIC was trading at Quarter End. This is reflected

by each LIC’s position along the vertical axis.

Graphs 7 & 8: Share Price Premium/Discount vs Pre-Tax NTA Performance

Pre-tax NTA performance is one way of reflecting the performance of a LIC’s management and the standard deviation of the

pre-tax NTA performance can be used as a measure of risk by reflecting the movement or dispersion from the average return. The

below graphs can therefore give an indication of a LIC’s risk-return over the time periods.

Graphs 9 & 10: Pre-Tax NTA Performance Standard Deviation vs Pre-Tax NTA Performance




AFIARG

DJW

AUI

CYA

MLT

BKI

CIN

DUI WHF

AMH

CAM FSI

WAM

MIR

WIC

WAX

OZG

WAA

CTN

ALF

CDM

MFF

HHV

PMC

TGG

AGF

ABW

-30%

-20%

-10%

0%

10%

20%

30%

40%

0% 5% 10% 15% 20% 25% 30% 35%

Pre

miu

m/D

isc

ou

nt

to p

re-t

ax

NT

A

3 Year pre-tax NTA return

Premium to pre-tax NTA

Discount to pre-tax NTA

AFI

ARG

DJW

AUI

CYA

MLT

BKI

CINDUI

WHF

AMH

CAM

FSI

WAM

MIR

WIC

WAX

OZG

WAA

CTN

ALF

CDM

MFF

HHV

PMC

TGG

AGF

-30%

-20%

-10%

0%

10%

20%

30%

40%

-5% 0% 5% 10% 15% 20% 25%

Pre

miu

m/D

isco

un

t to

pre

-tax

NT

A

5 Year pre-tax NTA return

AFI

ARG

DJW

AUICYA

MLT

BKI

CIN

DUI

WHF

AMHCAM

FSI

MIR

WAM

WIC

WAX

OZG

WAA

CTN

ALF

CDM

WMK

MFF

PMCTGG

HHV

AGF

HHY

XAOAI

0%

5%

10%

15%

20%

25%

0% 5% 10% 15% 20% 25% 30% 35%

3 y

ea

r p

re-t

ax

NT

A p

erf

orm

an

ce

St.

De

v.

3 year pre-tax NTA performance

AFI

ARG

DJW

AUICYA

MLT BKI

CIN

DUI WHF

AMHCAMFSI

MIRWAM

WIC

WAX

OZG

WAA

CTN

ALF

CDM

WMK

MFF

PMC TGG

HHV

HHY

XAOAI

0%

5%

10%

15%

20%

25%

0% 5% 10% 15% 20% 25%

5 y

ear

pre

-tax N

TA

perf

orm

an

ce S

t. D

ev.

5 year pre-tax NTA performance

Premium to pre-tax NTA

Discount to pre-tax NTA


LICs by their very nature can trade at either a premium or discount to pre-tax NTA. However, from a quantitative perspective, we

have noted a tendency for LICs to revert to their mean premium or discount through the Cycle. As such, investors need to be

cognisant of how a LIC trades through the Economic Cycle to ensure an investment is timed appropriately.

As noted in our reinitiation of coverage in March 2009, Large LICs (Market Cap > $500m) appear to behave differently from Small

LICs (Market Cap < $500m) through the Economic Cycle. Large LICs tend to trade at a substantial premium to pre-tax NTA in

perceivably difficult or uneasy market conditions and a lower premium to pre-tax NTA in perceivably improving market conditions.

One could argue that during uneasy market conditions investors prefer the safety of Large LICs with an established track record

and hence push them up into substantial premiums. Whereas, in more favourable market conditions, investors have a tendency to

view large LICs as a lower return investment alternative and instead favour smaller and more exotic LICs, hence driving large

LICs’ premiums lower.

Graph 11: Large Cap Focused LICs’ Average Share Price Premium/Discount to Pre-tax NTA

Small LICs tend to operate in almost an opposing fashion. In general, Small LICs trade at a larger discount to pre-tax NTA,

averaging an 11% discount over the last 8 years, which compares to the Large LICs 1% premium over the same period. Broadly

speaking, as market confidence rises, Small LICs tend to trade at a smaller discount as investors’ confidence rises. However, as

market conditions turn, these small discounts tend to turn into deep discounts.

Graph 12: Small Cap Focused LICs’ Average Share Price Premium/Discount to Pre-tax NTA




All

Ord

s A

cc

um

ula

tio

n I

nd

ex

Pre

miu

m/D

isc

ou

nt

All

Ord

s A

cc

um

ula

tio

n I

nd

ex

Pre

miu

m/D

isc

ou

nt

Market Peak (01/11/07)

Market Trough (10/03/09)

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Average�Premium/Discount All�Ords

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

2006 2007 2008 2009 2010 2011 2012 2013 2014

Average�Premium/Discount All�Ord

Market Peak (01/11/07)

Market Trough (10/03/09)


LIC Indicative NTA

LICs are only obligated to disclose their NTA at the end of each month and have 14 days to disclose this information to the

Market. This means that an investor is only able to retrospectively gauge the value of the underlying NTA and for the remainder of

the month be ignorant to the underlying value of the NTA.

Bell Potter has sought to address this gap by providing an Indicative Live NTA. We calculate the Indicative NTA by tracking the

underlying NTA each week. This is achieved by monitoring the percentage movements of the Disclosed Holdings and using an

appropriate proxy to track the movement of the remaining positions. We also adjust the NTA when the security goes

ex-dividend.

The Indicative NTA works best with LICs that have a high percentage of investments concentrated in its Top 20 Holdings, regular

disclosure of its holdings and cash position, lower turnover of its investments, and the absence of a performance fee.

Table 7: Indicative Premium/Discount to Pre-Tax NTA (as at 31 October 2014)


Investment Share Fully Diluted Ind. Indicative

ASX Code Company Name Mandate Price Pre-Tax NTA" Prem/Disc" 1 year 3 years 5 years 10 years

AFI AFIC" Large 5.93$ 5.85$ 1.4% 4.3% 0.7% 0.8% -0.1%

ARG Argo Investments Large 7.83$ 7.61$ 3.0% 0.9% -2.7% -2.2% 0.3%

DJW Djerriw arrh Investments Large 4.58$ 3.67$ 24.7% 24.0% 19.0% 16.7% 9.8%

AUI Australian United Investments Large 8.27$ 8.65$ -4.3% -4.6% -7.9% -7.1% -5.7%

CYA Century Australia Large 0.89$ 0.91$ -2.7% -5.0% -13.5% -16.5% -15.4%

MLT Milton Corporation Large/Medium 4.46$ 4.28$ 4.2% 0.7% -3.9% -4.5% -1.6%

BKI BKI Investment Large/Medium 1.60$ 1.64$ -2.5% -1.3% -6.2% -9.1% -10.7%

CIN Carlton Investments Large/Medium 28.40$ 30.97$ -8.3% -10.7% -16.5% -17.2% -14.9%

DUI Diversif ied United Investments Large/Medium 3.47$ 3.70$ -6.2% -5.6% -8.6% -7.7% -6.7%

WHF Whitef ield Large/Medium 4.24$ 4.56$ -7.0% -5.4% -8.1% -8.5% -9.9%

AMH AMCIL Large/Medium 0.91$ 0.90$ 1.4% -2.2% -9.9% -13.7% -9.7%

CAM Clime Capital" Large/Medium 0.96$ 1.05$ -8.4% -5.4% -10.4% -15.6% -15.3%

FSI Flagship Investments Large/Medium 1.53$ 1.69 ^$ -9.4% -14.0% -7.7% -6.9% -6.1%

WAM WAM Capital Medium/Small 1.95$ 1.79$ 8.8% 7.8% -0.2% -7.4% -12.1%

MIR Mirrabooka Investments Medium/Small 2.60$ 2.19$ 18.7% 12.2% 2.4% -0.7% -6.1%

WIC WestOz Investment Co. Medium/Small 1.14$ 1.18 #$ -3.6% -8.6% -19.5% -24.2% -24.2%

WAX WAM Research" Medium/Small 1.15$ 1.09$ 6.0% 5.6% -4.1% -11.9% -16.6%

OZG OzGrow th Medium/Small 0.18$ 0.21 #$ -15.1% -15.2% -24.0% -26.8% n/a

WAA WAM Active Medium/Small 1.33$ 1.04$ 27.9% 19.6% 6.4% -1.1% n/a

CTN Contango Microcap Small/Micro 1.08$ 1.16$ -6.8% -12.8% -15.9% -21.6% -23.4%

ACQ Acorn Capital Invst Fund" Small/Micro 0.84$ 0.95 ^$ -12.0% n/a n/a n/a n/a

ALF Australian Leaders Fund" Long/Short 1.61$ 1.37 ^$ 17.2% 6.9% -2.9% -9.0% -13.8%

CDM Cadence Capital" Long/Short 1.47$ 1.38 ^$ 6.8% 0.4% -3.3% -13.5% n/a

NCC NAOS Emerging Opp" Long/Short 1.09$ 1.18 ^$ -7.8% -11.4% n/a n/a n/a

WMK Watermark Market Neutral" Market Neutral 0.97$ 1.00 ^$ -2.5% n/a n/a n/a n/a

SNC Sandon Capital" Activist 0.93$ 1.01 ^$ -8.4% n/a n/a n/a n/a

MFF Magellan Flagship Fund" International 1.53$ 1.42 #$ 8.0% 2.6% -6.1% -9.9% n/a

PMC Platinum Capital International 1.75$ 1.64 ^$ 6.9% 0.6% -4.3% 2.5% 11.4%

TGG Templeton Global Grow th International 1.35$ 1.38 ^$ -2.0% -3.9% -12.6% -15.3% -14.0%

HHV Hunter Hall Global Value International 1.12$ 1.28 ^$ -12.8% -13.1% -16.2% -18.3% -18.1%

PGF PM Capital Global Opp" International 0.94$ 1.04 ^$ -9.7% n/a n/a n/a n/a

AGF AMP Capital China Grow th Asia 0.79$ 0.90 ^$ -12.8% -17.6% -21.3% -21.1% n/a

PAF PM Capital Asia Asia 0.93$ 1.00 ^$ -7.2% n/a n/a n/a n/a

Average Premium/Discount+

" The Fully Diluted Indicat ive NTA has been adjusted for options dilut ion (100% excercise) and dividends. Dividends are removed f rom the NTA once the security goes ex-date and until the receipt of the new ex-dividend NTA . # The Indicative NTA is the actual reported weekly pre-tax NTA as

we have been unable to calculate the Indicat ive NTA within a reasonable level of accuracy. ^ The Indicat ive NTA is the actual reported weekly pre-tax NTA as we have been unable to calculate the Indicative NTA within a reasonable level of accuracy.* Average premium/discounts as at end of the

previous month. +Prem/Disc does not adjust for the dilution of unexcercised options.


LIC Indicative NTA (continued)

Using the Bell Potter Indicative NTA, we calculate the effective impact on the share price if the premium or discount were to

normalise to the 1, 3, 5 and 10 year average. We have also calculated this figure on an annualised basis.

The Indicative NTA is not without error and clearly susceptible to higher turnover, tax realisation, receipt and payment of dividends

and accrued performance fees. As such, variations will occur across LICs and different market conditions. We have included the

Average Error (average of the monthly NTA less Indicative NTA), Average Absolute Error (average of the monthly NTA less

Indicative NTA on an absolute basis), and the range of Minimum and Maximum Errors over the previous 12-month period.

Table 8: Premium/Discount Normalisation and Error Tracking (as at 31 October 2014)

A number of LICs under our coverage currently have options outstanding. Options dilute the NTA when exercised and therefore

have an impact on the premium or discount.

Table 9: Dilution Effect of Outstanding Options on Indicative NTA (as at 31 October 2014)



Investment

ASX Code Company Name Mandate 1 year 3 years 5 years 10 years 1 year 3 years 5 years 10 years M in Erro r M ax Error

AFI AFIC" Large 2.9% -0.7% -0.6% -1.5% 2.9% -0.2% -0.1% -0.1% -0.5% 0.6% -2.8% 0.5%

ARG Argo Investments Large -2.1% -5.6% -5.1% -2.7% -2.1% -1.9% -1.0% -0.3% -0.3% 0.6% -1.0% 0.9%

DJW Djerriw arrh Investments Large -0.7% -5.7% -8.0% -14.9% -0.7% -1.9% -1.7% -1.6% 0.2% 0.8% -1.4% 1.4%

AUI Australian United Investments Large -0.3% -3.6% -2.7% -1.3% -0.3% -1.2% -0.6% -0.1% -0.2% 0.6% -1.3% 0.7%

CYA Century Australia Large -2.3% -10.9% -13.8% -12.7% -2.3% -3.8% -2.9% -1.4% -0.2% 0.9% -1.5% 1.7%

MLT Milton Corporation Large/Medium -3.5% -8.1% -8.7% -5.8% -3.5% -2.8% -1.8% -0.6% -0.3% 0.5% -1.0% 0.5%

BKI BKI Investment Large/Medium 1.2% -3.7% -6.6% -8.2% 1.2% -1.2% -1.3% -0.8% -0.2% 0.5% -1.1% 0.7%

CIN Carlton Investments Large/Medium -2.4% -8.2% -8.9% -6.6% -2.4% -2.8% -1.8% -0.7% -0.4% 0.4% -0.8% 0.1%

DUI Diversified United Investments Large/Medium 0.7% -2.3% -1.5% -0.5% 0.7% -0.8% -0.3% 0.0% -0.1% 0.6% -1.5% 2.3%

WHF Whitef ield Large/Medium 1.6% -1.1% -1.5% -2.9% 1.6% -0.4% -0.3% -0.3% -0.1% 0.9% -1.7% 1.3%

AMH AMCIL Large/Medium -3.7% -11.3% -15.1% -11.2% -3.7% -3.9% -3.2% -1.2% 0.3% 1.1% -1.5% 2.2%

CAM Clime Capital" Large/Medium 3.1% -2.0% -7.2% -6.9% 3.1% -0.7% -1.5% -0.7% 0.5% 0.8% -0.9% 1.3%

FSI Flagship Investments Large/Medium -4.6% 1.7% 2.5% 3.2% -4.6% 0.6% 0.5% 0.3% n/a n/a n/a n/a

WAM WAM Capital Medium/Small -1.0% -9.0% -16.3% -21.0% -1.0% -3.1% -3.5% -2.3% -1.0% 1.6% -4.0% 1.8%

MIR Mirrabooka Investments Medium/Small -6.5% -16.3% -19.4% -24.8% -6.5% -5.8% -4.2% -2.8% -0.5% 1.1% -2.3% 1.4%

WIC WestOz Investment Co. Medium/Small -4.9% -15.9% -20.5% -20.6% -4.9% -5.6% -4.5% -2.3% n/a n/a n/a n/a

WAX WAM Research" Medium/Small -0.3% -10.1% -17.8% -22.6% -0.3% -3.5% -3.9% -2.5% 0.6% 1.0% -2.2% 2.0%

OZG OzGrow th Medium/Small -0.1% -8.9% -11.7% n/a -0.1% -3.0% -2.5% n/a n/a n/a n/a n/a

WAA WAM Active Medium/Small -8.3% -21.5% -29.0% n/a -8.3% -7.8% -6.6% n/a 0.1% 0.6% -0.7% 1.1%

CTN Contango Microcap Small/Micro -6.0% -9.1% -14.8% -16.6% -6.0% -3.1% -3.1% -1.8% -1.6% 2.3% -3.9% 3.5%

ACQ Acorn Capital Invst Fund" Small/Micro n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a

ALF Australian Leaders Fund" Long/Short -10.3% -20.1% -26.2% -30.9% -10.3% -7.2% -5.9% -3.6% n/a n/a n/a n/a

CDM Cadence Capital" Long/Short -6.5% -10.2% -20.3% n/a -6.5% -3.5% -4.4% n/a n/a n/a n/a n/a

NCC NAOS Emerging Opp" Medium/Small -3.5% n/a n/a n/a -3.5% n/a n/a n/a n/a n/a n/a n/a

WMK Watermark Market Neutral" Market Neutral n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a

SNC Sandon Capital" Activist n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a

MFF Magellan Flagship Fund" International -5.4% -14.0% -17.9% n/a -5.4% -4.9% -3.9% n/a n/a n/a n/a n/a

PMC Platinum Capital International -6.3% -11.2% -4.4% 4.5% -6.3% -3.9% -0.9% 0.4% n/a n/a n/a n/a

TGG Templeton Global Grow th International -1.8% -10.5% -13.2% -12.0% -1.8% -3.6% -2.8% -1.3% n/a n/a n/a n/a

HHV Hunter Hall Global Value International -0.3% -3.4% -5.5% -5.3% -0.3% -1.2% -1.1% -0.5% n/a n/a n/a n/a

PGF PM Capital Global Opp" International n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a

AGF AMP Capital China Grow th Asia -4.8% -8.5% -8.4% n/a -4.8% -2.9% -1.7% n/a n/a n/a n/a n/a

PAF PM Capital Asia Asia n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a

* Refers to the current share price divided by the indicative pre-tax NTA as compared to the average 1, 3, 5 and 10 year Discount/Premium share price to pre-tax NTA as at end of the previous month, over the relevant t ime period of 1, 3, 5 and 10 years. * Refers to the current share price divided by the indicative pre-tax NTA as compared to the average 1, 3, 5 and 10 year Discount /Premium

share price to pre-tax NTA as at end of the previous month, annualised over the relevant t ime period of 1, 3, 5 and 10 years.

R angeA vg A bso lute

Erro rA vg Erro r

Share P rice Impact if P rem ium/ D isco unt no rmalises is

annualised+Share P rice Impact if P remium/ D isco unt no rmalises*

Share Indicative Option

ASX Code Company Name Code SOI Options Strike Price NTA^ Price Expiry 100% 70% 50% 100% 70% 50%

AFI AFIC" AFIG 1,086,070,669 2,044,325 5.09$ 5.96$ 5.86$ 116.45$ 28-Feb-17 5.85$ 5.85$ 5.85$ 1.8% 1.8% 1.8%

ARG Argo Investments n/a 664,030,760 n/a n/a 7.82$ 7.61$ n/a n/a

DJW Djerriw arrh Investments n/a 218,589,718 n/a n/a 4.58$ 3.68$ n/a n/a

AUI Australian United Investments n/a 109,250,613 n/a n/a 8.49$ 8.53$ n/a n/a

CYA Century Australia n/a 79,689,496 n/a n/a 0.89$ 0.91$ n/a n/a

MLT Milton Corporation n/a 639,543,382 n/a n/a 4.46$ 4.28$ n/a n/a

BKI BKI Investment n/a 554,875,463 n/a n/a 1.61$ 1.64$ n/a n/a

CIN Carlton Investments n/a 26,474,675 n/a n/a 28.40$ 31.05$ n/a n/a

DUI Diversif ied United Investments DUIR 171,516,421 34,303,284 3.00$ 3.47$ 3.84$ 0.31$ n/a 3.704$ 3.74$ 3.77$ -6.3% -7.2% -7.9%

WHF Whitefield n/a 76,311,353 n/a n/a 4.24$ 4.57$ n/a n/a

AMH AMCIL n/a 233,961,237 n/a n/a 0.91$ 0.90$ n/a n/a

CAM Clime Capital" CAMO 81,086,479 80,728,817 1.04$ 0.96$ 1.06$ 0.005$ 20-Oct-15 1.060$ 1.060$ 1.060$ -9.4% -9.4% -9.4%

FSI Flagship Investments n/a 24,378,198 n/a n/a 1.53$ 1.69$ n/a n/a

WAM WAM Capital n/a 340,603,969 n/a n/a 1.95$ 1.86$ n/a n/a

MIR Mirrabooka Investments n/a 141,049,941 n/a n/a 2.60$ 2.19$ n/a n/a

WIC WestOz Investment Co. WICO 129,251,273 12,119,213 1.30$ 1.14$ 1.18$ 0.015$ n/a

WAX WAM Research" WAXO 141,034,495 66,982,406 1.20$ 1.15$ 1.12$ 0.018$ 17-Jun-15 1.12$ 1.12$ 1.12$ 2.5% 2.5% 2.5%

OZG OzGrow th OZGO 360,995,026 34,478,401 0.225$ 0.18$ 0.21$ 0.007$ 31-Aug-15 0.212$ 0.212$ 0.212$ -15.1% -15.1% -15.1%

WAA WAM Active n/a 34,316,532 n/a n/a 1.33$ 1.09$ n/a n/a

CTN Contango Microcap n/a 158,881,328 n/a n/a 1.08$ 1.16$ n/a n/a

ACQ Acorn Capital Invst Fund" ACQO 50,820,001 50,820,000 1.00$ 0.84$ 0.95$ 0.018$ 24-Oct-15 0.95$ 0.95$ 0.95$ -12.0% -12.0% -12.0%

ALF Australian Leaders Fund" n/a 253,244,338 n/a 1.37$ 1.60$ 1.43$ n/a n/a

CDM Cadence Capital" CDMO 199,741,743 132,068,026 1.43$ 1.47$ 1.34$ 0.051$ 31-Aug-15 1.38$ 1.37$ 1.36$ 6.8%# 7.4%# 7.9%#

NCC NAOS Emerging Opp" NCCO 35,326,027 12,477,337 1.00$ 1.09$ 1.24$ 0.050$ 01-Feb-15 1.18$ 1.19$ 1.20$ -7.8%# -9.0%# -9.9%#

WMK Watermark Market Neutral" WMKO 87,603,797 63,716,844 1.00$ 0.97$ 1.02$ 0.003$ 31-Dec-14 1.02$ 1.02$ 1.02$ -4.9%# -4.9%# -4.9%#

SNC Sandon Capital" SNCO 35,031,968 35,006,500 1.00$ 0.93$ 1.01$ 0.012$ 24-Jul-15 1.01$ 1.01$ 1.01$ -8.4%# -8.4%# -8.4%#

MFF Magellan Flagship Fund" MFFO 355,560,627 105,639,398 1.05$ 1.53$ 1.54$ 0.505$ 31-Oct-17 1.43$ 1.45$ 1.48$ 7.2%# 5.2%# 3.7%#

PMC Platinum Capital n/a 232,190,254 n/a n/a 1.75$ 1.64$ n/a n/a

TGG Templeton Global Grow th n/a 198,987,096 n/a 1.00$ 1.35$ 1.38$ n/a n/a

HHV Hunter Hall Global Value n/a 188,917,148 n/a 1.00$ 1.12$ 1.28$ n/a n/a

PGF PM Capital Global Opp" PGFO 173,672,201 173,672,200 1.00$ 0.94$ 1.04$ 0.026$ 30-Jun-15 1.04$ 1.04$ 1.04$ -9.7% -9.7% -9.7%

AGF AMP Capital China Grow th n/a 374,593,484 n/a n/a 0.79$ 0.90$ n/a n/a

PAF PM Capital Asia PAFO 55,087,501 55,087,500 1.00$ 0.93$ 1.00$ 0.036$ 31-May-16 1.00$ 1.00$ 1.00$ -7.2% -7.2% -7.2%

^ The Indicative NTA has been adjusted for dividends once the security goes ex-date and until the receipt of the new ex-dividend NTA . # The Indicat ive NTA is the actual reported weekly or monthly pre-tax NTA as we have been unable to calculate the Indicative NTA within a reasonable level of accuracy. * Average premium/discounts as at end of

the previous month.

Eff. Prem/Disc after % Exc.NTA after % Excercised


Liquidity

Liquidity is an important characteristic to consider when making an investment. Liquidity is the ability to buy or sell a particular

security . Unfortunately, the volume traded among some LICs can be quite thin at times and may be difficult to trade larger lines

Therefore, liquidity needs to be taken into consideration when investing in this asset class. In the table below, we have a look at

the 3 year Weekly and Monthly Averages for the LICs in our coverage.

Table 10: Liquidity


Investment Shares 3 yr Average 3 yr Average 3 yr Average 3 yr Average

ASX Code Company Name Mandate On Issue Options Weekly Volume Weekly Value Monthly Volume Monthly Value

AFI AFIC" Large 1,086,070,669 2,044,325 1,592,228 8,385,203 6,899,656 36,335,880

ARG Argo Investments Large 664,030,760 - 888,640 5,672,715 3,850,775 24,581,767

DJW Djerriw arrh Investments Large 218,589,718 - 502,054 2,126,266 2,175,568 9,213,820

AUI Australian United Investments Large 109,250,613 - 51,731 360,421 224,168 1,561,826

CYA Century Australia Large 79,689,496 - 320,515 232,347 1,388,896 1,006,837

MLT Milton Corporation Large/Medium 639,543,382 - 663,248 2,521,101 2,874,074 10,924,770

BKI BKI Investment Large/Medium 554,875,463 - 988,177 1,425,047 4,282,101 6,175,204

CIN Carlton Investments Large/Medium 26,474,675 - 11,696 242,517 50,681 1,050,908

DUI Diversif ied United Investments Large/Medium 171,516,421 - 172,056 497,253 745,574 2,154,764

WHF Whitefield Large/Medium 76,311,353 - 143,689 490,696 622,653 2,126,347

AMH AMCIL Large/Medium 233,961,237 - 393,908 305,746 1,706,935 1,324,899

CAM Clime Capital Large/Medium 81,086,479 80,728,817 214,773 208,827 930,682 904,916

FSI Flagship Investments Large/Medium 24,378,198 - 59,781 78,780 259,050 341,379

WAM WAM Capital Medium/Small 340,603,969 - 1,404,197 2,530,889 6,084,852 10,967,187

MIR Mirrabooka Investments Medium/Small 141,049,941 - 271,592 592,317 1,176,900 2,566,706

WIC WestOz Investment Co. Medium/Small 129,251,273 12,119,213 477,173 + 530,234 + 2,067,748 + 2,297,680 +

WAX WAM Research Medium/Small 141,034,495 66,982,406 496,342 488,554 2,150,813 2,117,068

OZG OzGrow th Medium/Small 360,995,026 34,478,401 1,279,359 + 231,514 + 5,543,889 + 1,003,226 +

CTN Contango Microcap Small/Micro 158,881,328 - 858,050 890,133 3,718,216 3,857,242

ACQ Acorn Capital Small/Micro 50,820,001 50,820,000 1,640,579 1,828,387 7,109,175 7,923,008

ALF Australian Leaders Fund Long/Short 253,244,338 - 1,213,992 1,912,061 5,260,631 8,285,596

CDM Cadence Capital Long/Short 199,741,743 132,068,026 719,753 + 1,017,081 + 3,118,930 + 4,407,349 +

WAA WAM Active Long/Short 34,316,532 - 194,922 + 237,483 + 844,662 + 1,029,091 +

NCC Naos Emerging Opportunities Long/Short 35,326,027 12,477,337 152,899 161,786 662,560 701,075

WMK Watermark Market Neutral Market Neutral 87,603,797 63,716,844 535,989 548,265 2,322,618 2,375,815

MFF Magellan Flagship Fund International 355,560,627 105,639,398 1,866,741 + 2,191,427 + 8,089,210 + 9,496,183 +

PMC Platinum Capital International 232,190,254 - 1,151,323 1,664,253 4,989,067 7,211,762

TGG Templeton Global Grow th International 198,987,096 - 1,042,675 1,102,658 4,518,258 4,778,183

HHV Hunter Hall Global Value International 188,917,148 - 1,126,864 982,001 4,883,076 4,255,339

AGF AMP Capital China Grow th China 374,593,484 - 1,638,122 + 1,170,810 + 7,098,529 + 5,073,509 +

- -

HHY Hastings High Yield Fixed income 103070369 - 2,231,658 + 501,248 + 9,670,517 + 2,172,074 +

ABW Aurora Absolute Income 29886828 - 220,044 + 234,301 + 953,523 + 1,015,305 +

SNC Sandon Capital Activist 35031968 35,031,968 1,524,351 460,647 6,605,519 1,996,138

+ History less than 3 years


In the Graphs below, we have provided the Indirect Cost Ratio (ICR) for LICs in our coverage for the full year ending 30 June

2014. The ICR has been calculated both with and without performance fees. We are using this method of calculation to

standardise the cost ratios across our LIC universe given the many different interpretations of the Management Expense Ratio,

which is a frequently used expense calculation. ICR is generally accepted as the principal expense ratio calculation for the

Managed Funds industry.

Graph 13: Indirect Cost Ratio

In table 11, we have explored further the ICR to break out where the costs of managing an LIC are being incurred. The cost are

broken into internal expenses, which are expenses that are absorbed directly inhouse by the LIC, and external fees, which are the

investment expenses paid to an external investment manager. Please note that a number of LICs have internal investment

professionals that are employed directly to the LIC and these cost are reflected as internal expenses.

Table 11: Indirect Cost Ratio Breakdown

Indirect Cost Ratio: Fees and Expenses

Lrg Cap mandate Lrg/Med Cap mandate Med/Sml Cap mandate Long/Short/ Neutral International Specialist


N/A

0%

1%

2%

3%

4%

5%

6%

AFI

AR

G

DJW AU

I

CY

A

MLT BK

I

CIN

DU

I

WH

F

AM

H

CA

M

FSI

WA

M

MIR

WIC

WA

X

OZG CTN

AC

Q

ALF

CD

M

WA

A

NC

C

WM

K

MFF

PM

C

TGG

HH

V

AG

F

HH

Y

AB

W

SN

C

ICR

ICR - with performance fee ICR - w/out performance fee

N/A

Code Investment Companies Investment Investment Manager Indirect Cost Ratio Indirect Cost Ratio Internal

Mandate Internal/External (incl. perf. fee) (excl. perf. fee) Management Performance Performance Perf B/M Highw ater

Domestic Equity

AFI AFIC Large Internal 0.17% 0.17% 0.17% n/a n/a n/a n/a n/a

ARG Argo Investments Large Internal 0.15% 0.15% 0.15% n/a n/a n/a n/a n/a

DJW Djerriw arrh Investments Large Internal 0.39% 0.39% 0.39% n/a n/a n/a n/a n/a

AUI Australian United Large Internal 0.11% 0.11% 0.11% n/a n/a n/a n/a n/a

CYA Century Australia Large External 1.09% 1.09% 0.69% 0.40% n/a 10% All Ords + 1% Yes

MLT Milton Corporation Large/Medium Internal 0.13% 0.13% 0.13% n/a n/a n/a n/a n/a

BKI BKI Investment Large/Medium Internal 0.15% 0.15% 0.15% n/a n/a n/a n/a n/a

CIN Carlton Investments Large/Medium Internal 0.09% 0.09% 0.09% n/a n/a n/a n/a n/a

DUI Diversified United Large/Medium Internal 0.16% 0.16% 0.16% n/a n/a n/a n/a n/a

WHF Whitef ield Large/Medium Internal 0.38% 0.38% 0.38% n/a n/a n/a n/a n/a

AMH AMCIL Large/Medium Internal 0.65% 0.65% 0.65% n/a n/a n/a n/a n/a

CAM Clime Capital Large/Medium Internal 1.74% 1.74% 0.74% 1.00% n/a 20% All Ords + No

FSI Flagship Investments Large/Medium Internal 4.03% 1.19% 1.19% 0.00% 2.85% 15% UBS Bank Bill Index No

WAM WAM Capital Medium/Small External 1.50% 1.19% 0.19% 1.00% 0.31% 20% All Ords Yes

MIR Mirrabooka Medium/Small Internal 0.64% 0.64% 0.64% n/a n/a n/a n/a n/a

WIC WestOz Investment Co. Medium/Small External 3.40% 1.20% 0.20% 1.00% 2.20% 20% 10% No

WAX WAM Research Medium/Small External 1.88% 1.40% 0.40% 1.00% 0.49% 20% All Ords Yes

OZG Ozgrow th Medium/Small External 4.42% 1.29% 0.29% 1.00% 3.13% 20% 7% No

CTN Contango Microcap Small/Micro Internal n/a n/a n/a n/a n/a n/a n/a n/a

ACQ Acorn Capital Small/Micro External n/a n/a n/a n/a n/a 20% Small Ords Yes

ALF Australian Leaders Fund Long/Short External 2.76% 1.28% 0.28% 1.00% 1.48% 20% All Ords Yes

CDM Cadence Capital Long/Short External 1.42% 1.42% 0.42% 1.00% 0.01% 20% All Ords Yes

WAA WAM Active Long/Short External 4.99% 2.02% 1.02% 1.00% 2.97% 20% 0% Yes

NCC Naos Emerging Opportunities Long/Short External 4.97% 2.67% 1.42% 1.25% 2.29% 15% Small Ords Yes

WMK Watermark Market Neutral Market Neutral External 4.76% 1.81% 0.81% 1.00% 2.95% 20% RBA cash No

MFF Magellan Flagship Fund Global External 1.40% 1.40% 0.15% 1.25% n/a 10% 10% No

PMC Platinum Capital Global External 2.30% 2.30% 0.80% 1.50% n/a 10% MSCI ACWI + 5% Yes

TGG Templeton Global Grow th Global External 1.46% 1.46% 0.46% 1.00% n/a n/a n/a n/a

HHV Hunter Hall Global Value Global External 1.77% 1.77% 0.27% 1.50% n/a 15% MSCI TR Yes

AGF AMP Capital China Grow th China External 1.97% 1.97% 0.32% 1.65% n/a 20% CITIC 300 No

HHY Hastings High Yield Fixed income External 1.36% 1.36% 0.61% 0.75% n/a n/a n/a n/a

ABW Aurora Absolute Income External 1.23% 1.23% 0.23% 1.00% n/a n/a n/a n/a

SNC Sandon Capital Activist External n/a n/a n/a n/a n/a 20% RBA cash Yes

Specialist

ICR expense allocation

External Performance Fee Detail



N/A


AUSTRALIAN FOUNDATION INVESTMENT CO (AFI)Domestic Focussed Share Price and NTA Summary

Mandate: Australian listed equities Benchmark: S&P/ASX 200 Accumulation as at 30-Sep-14

Manager: Internal Indirect cost ratio wit h perf . f ee: 0.17% Share price $5.95

Listed: 1936 Indirect cost ratio w/ o ut p er f . f ee: 0.17% Pre-tax NTA $5.66

Post-tax NTA $4.80

Investment Strategy

Pre-tax NTA 5.1%

Post-tax NTA 24.0%

Historic Dividend (prior 12-mths)

Personnel Dividends (net) $0.22

Yield 3.7%

Franking 100%

Grossed up yield 5.3%

Key Information

Exposure: International/Domestic, Equities /Fixed Income/Derivatives , Cash

Style: Large /Medium/Small Cap, Balanced/Value /Grow th, Passive/Active, Long/Short Ordinary shares 1086.1m

Derivatives: Options used to generate additional income in its short-term trading portfolio. Options/other 2.1m

Cash/Debt: $70m cash, $303m debt/hybrid (30 Jun 2014) Fully diluted 1088.1m

Dividend reinvestment plan: Yes, 2.5% discount to 5 day average price post ex-date Market capitalisation 6462.1m

Other: Affiliated w ith AMCIL (AMH), Djerriw arrh (DJW) and Mirrabooka (MIR).

Performance 3-mth 6-mth 1 year 3 yr p.a. 5 yr p.a. 10 yr p.a. AFI share price v ASX All Ords

Share price*

Performance -1.5% 1.4% 7.4% 20.1% 7.9% 10.5%

Index -0.3% 0.2% 5.9% 14.0% 6.7% 8.2%

Active return -1.2% 1.2% 1.5% 6.1% 1.2% 2.3%

NTA+

Performance -0.9% -0.1% 6.0% 15.6% 7.9% 9.2%

Benchmark -0.6% 0.3% 5.9% 14.8% 6.8% 8.4%

Active return -0.3% -0.4% 0.1% 0.8% 1.1% 0.8%

Share Price and NTA Top 20 Holdings %

as at 30-Sep-14

Commonw ealth Bank 10.2

Westpac Bank 9.4

BHP Billiton 7.7

Wesfarmers 5.1

National Australia Bank 4.9

Telstra Corporation 4.5

ANZ Bank 4.2

Rio Tinto 3.5

Woolw orths 3.5

Risk/Return Indicators Exposure (Top 20) Transurban Group 2.4

Sharpe Standard Oil Search 2.4

Share price* Ratio Ratio Deviation Amcor 2.3

Year 1 0.19 0.49 7.2% Woodside Petroleum 2.1

Year 3 0.84 1.45 11.4% Santos 1.8

Year 5 0.13 0.31 11.6% AMP 1.8

NTA+ Brambles 1.7

Year 1 0.06 0.21 9.9% Origin Energy 1.7

Year 3 0.61 1.05 11.4% Computershare 1.6

Year 5 0.74 0.30 11.8% QBE Insurance Group 1.6

APA Group 1.4

% of Total 73.6

*+ M easurement of a LIC’s performance is calculated after all operat ing expenses, provision and payment of both income and capital gains tax and the reinvestment of dividends, and do not

incorporate franking. Index returns however are ent irely before any operat ing expenses or taxation. LIC returns will consequent ly be understated relat ive to the Index return.

* The shareprice bench mark has been compared against the S&P/ASX All Ordinaries Accumulation Index. + The NTA has been compared

against the S&P/ASX 200 Accumulat ion.

Premium/(Discount) share price to:

Investment Personnel: Ross Barker (MD) and Mark Freeman (CIO). Directors: Terrence Campbell

(Chairman), Ross Barker, Jacqueline Hey, John Paterson, David Peever, Fergus Ryan, Catherine

Walter, Peter Williams and Graeme Liebelt.

AFI takes a medium to longer term view of value w hich means that the aim is to buy and hold

individual stocks for the long term based on selection criteria w hich, in summary, include: formulation

and execution of the business strategy and its underlying business value; key financial indicators,

including cash flow , prospective price earnings relative to projected grow th, sustainability of

earnings and dividend yield; and corporate governance practices.

Capital Structure

Information

3,000

4,000

5,000

6,000

$3.00

$3.50

$4.00

$4.50

$5.00

$5.50

$6.00

$6.50

Oct-13 Jan-14 May-14 Sep-14

AFI ALL ORDINARIE S

Financials

Resources

Industrial

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

$2.00

$2.50

$3.00

$3.50

$4.00

$4.50

$5.00

$5.50

$6.00

$6.50

$7.00

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Prem/Disc (RHS) Pre-Tax NTA (LHS) Share Price (LHS)


ARGO INVESTMENTS (ARG)Domestic Focussed Share Price and NTA Summary

Mandate: Australian listed equities Benchmark: All Ordinaries Accumulation as at 30-Sep-14

Manager: Internal Indirect cost ratio wit h per f . f ee: 0.15% Share price $7.58

Listed: 1946 Indirect cost ratio w/ out p erf . f ee: 0.15% Pre-tax NTA $7.22

Post-tax NTA $6.38

Investment Strategy

Pre-tax NTA 5.0%

Post-tax NTA 18.8%



Yield 3.7%

Franking 100%


Key Information


Style: Large/Medium/Small Cap, Balanced/Value /Grow th, Passive/Active , Long/Short Ordinary shares 664.0m

Derivatives: Options used to generate additional income in its short-term trading portfolio. Options/other 0.0m

Cash/Debt: $127m cash, $0m Debt (30 June '14) Fully diluted 664.0m

Dividend reinvestment plan: Yes, pricing period is ex-date and 3 follow ing days VWAP Market capitalisation 5033.4m

Performance 3-mth 6-mth 1 year 3 yr p.a. 5 yr p.a. 10 yr p.a. ARG share price v ASX All Ords

Share price*

Performance 1.2% 6.2% 13.8% 20.8% 7.1% 8.9%

Index -0.6% 0.3% 5.9% 14.8% 6.8% 8.4%

Active return 1.8% 5.9% 7.9% 6.0% 0.3% 0.5%

NTA+

Performance 0.1% 0.9% 6.5% 15.5% 6.8% 8.1%

Benchmark -0.6% 0.3% 5.9% 14.8% 6.8% 8.4%

Active return 0.7% 0.6% 0.6% 0.7% 0.0% -0.3%


as at 30-Sep-14

Westpac Bank 6.8

ANZ Bank 6.0

BHP Billiton 5.6

Wesfarmers 4.8




Milton Corporation 3.3

Rio Tinto 3.1

Risk/Return Indicators Exposure (Top 20) Woolw orths 2.9

Sharpe Standard Australian United Investment 2.9

Share price* Ratio Ratio Deviation Macquarie Group 2.8


Year 3 0.84 1.70 10.0% CSL 1.7

Year 5 0.03 0.25 10.9% Santos 1.5

NTA+ Ramsay Health Care 1.5


Year 3 0.39 1.14 10.4% AMP 1.4

Year 5 0.00 0.23 10.9% Tw enty-First Century Fox 1.3

Suncorp Group 1.2

% of Total 63.2

*+ M easurement of a LIC’s performance is calculated after all operat ing expenses, provision and payment of both income and capital gains tax and the reinvestment of dividends, and do not incorporate

f ranking. Index returns ,however, are entirely before any operat ing expenses or taxation. LIC returns will consequently be understated relat ive to the Index return.

* The share price benchmark has been compared against the S&P/ASX All Ordinaries Accumulat ion Index. + The NTA has been compared

against the S&P/ASX All Ordinaries Accumulat ion Index.


Investment Personnel: Jason Beddow (MD), Christopher Hall, Brydie Lloyd-Roberts, Andy Forster,

Daniel Cuthbertson and Colin Whitehead. Directors: Ian Martin (Chairman), Robert Rich (Deputy

Chairman), Russell Higgins, Anne Brennan, Jason Beddow , Robert Patterson, Joycelyn Morton and

Roger Davis.

ARG's objective is to maximise long-term returns to shareholders through a balance of capital and

dividend grow th. The Group seeks to invest in quality companies that display sound management and

a capability to grow profitability to fund increasing dividend payments. ARG is a value orientated,

bottom-up stock picker w hose objective is to buy on price w eakness and hold for the long-term. ARG

characterises itself as moderately benchmark aw are, value driven and fundamentally based.

Capital Structure

Information

3,000

4,000

5,000

6,000

$3.60

$4.60

$5.60

$6.60

$7.60

$8.60


ARG ALL ORDINARIE S

Financials

Resources

Industrial

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

$3.00

$4.00

$5.00

$6.00

$7.00

$8.00

$9.00

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014



DJERRIWARRH INVESTMENTS (DJW)Domestic Focussed Share Price and NTA Summary




Post-tax NTA $3.51

Investment Strategy

Pre-tax NTA 26.3%

Post-tax NTA 28.5%



Yield 5.8%

Franking 100%


Key Information

Exposure: International/Domestic, Equities/Fixed Income/Derivatives , Cash

Style: Large /Medium/Small Cap, Balanced/Value/Grow th, Passive/Active, Long/Short Ordinary shares 218.6m

Derivatives: Options typically w ritten on betw een 20-50% of the Portfolio. Options/other 0.0m

Cash/Debt: $18.3m cash, $75m debt (30 Jun 2014) Fully diluted 218.6m

Dividend reinvestment plan: Suspended Market capitalisation 985.8m

Other: Affiliated w ith AMCIL (AMH), AFIC (AFI) and Mirrabooka (MIR).

Performance 3-mth 6-mth 1 year 3 yr p.a. 5 yr p.a. 10 yr p.a. DJW share price v ASX All Ords

Share price*

Performance -1.0% 2.7% 8.1% 18.0% 8.0% 9.3%

Benchmark -0.3% 0.2% 5.9% 14.0% 6.7% 8.2%

Active return -0.7% 2.5% 2.2% 4.0% 1.3% 1.1%

NTA+

Performance -1.0% -0.5% 4.6% 13.9% 5.8% 7.8%

Benchmark -0.6% 0.3% 5.9% 14.8% 6.8% 8.4%

Active return -0.4% -0.8% -1.3% -0.9% -1.0% -0.6%


as at 30-Sep-14

BHP Billiton 10.3

Westpac Bank 7.8



ANZ Bank 5.9

Oil Search 4.3


Wesfarmers 3.6

Rio Tinto 3.1

Risk/Return Indicators Exposure (Top 20) Woodside Petroleum 3.1

Sharpe Standard Santos 2.6

Share price* Ratio Ratio Deviation Woolw orths 2.6

Year 1 0.23 0.42 10.0% Brambles 2.4

Year 3 0.38 1.03 13.9% AMP 2.3


NTA+ Transurban 2.2

Year 1 -1.17 0.07 10.0% QBE Insurance Group 2.0

Year 3 -0.29 0.91 11.2% AGL Energy 1.9

Year 5 -0.36 0.12 11.4% APA Group 1.6

Mirrabooka 1.4

% of Total 76.7


incorporate franking. Index returns however are ent irely before any operat ing expenses or taxat ion. LIC returns will consequently be understated relat ive to the Index return.

* The shareprice benchmark has been compared against the S&P/ASX All Ordinaries Accumulat ion Index. + The NTA has been compared



Investment personnel: Ross Barker (MD) and Mark Freeman (CIO). Directors: John Paterson

(Chariman), Ross Barker, Peter Barnett, Graham Kraehe, Andrew Guy, Alice Williams, Graham

Goldsmith, Kathryn Fagg, and Bruce Teele

DJW invests in Australian equities w ith a focus on stocks w here there is an active options market

and/or sustainable dividend yield. The company aims to provide shareholders w ith attractive

investment returns through an enhanced level of dividends and attractive total returns over the

medium to long term. It takes a medium to longer term view of value w hich means that the aim is to

buy and hold individual stocks for the long term based on selection criteria w hich, in summary,

include: formulation and execution of the business strategy and its underlying business value; and

key financial indicators, including prospective price earnings relative to projected grow th,

sustainability of earnings and dividend yield (including franking) and balance sheet position including

gearing, interest cover and cash flow .

Capital Structure

Information

3,000

4,500

6,000

$2.80

$3.80

$4.80


DJW ALL ORDINARIE S

Financials

Resources

Industrials

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00

$4.50

$5.00

$5.50

$6.00

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Prem/Disc (RHS) Pre-Tax NTA (LHS) Share Pr ice (LHS)


AUSTRALIAN UNITED INVESTMENT CO (AUI)Domestic Focussed Share Price and NTA Summary



Listed: 1953 Indirect cost ratio w/ o ut per f . f ee: 0.11% Pre-tax NTA $8.34

Post-tax NTA $7.19

Investment Strategy

Pre-tax NTA -0.2%

Post-tax NTA 15.7%



Yield 3.8%

Franking 100%


Key Information

Exposure: International/Domestic,�Equities/Fixed�Income/Derivatives,�Cash

Style: Large/Medium/Small�Cap,�Balanced/Value/Growth,�Passive/Active,�Long/Short Ordinary shares 109.3m

Derivatives: n/a Options/other 0.0m

Cash/Debt: $60.1m cash, $99.2m Debt (30 Jun. '14) Fully diluted 109.3m

Dividend reinvestment plan: 5 day average price post ex-date. Market capitalisation 909.0m

Other: Aff iliated w ith DUI

Performance 3-mth 6-mth 1 year 3 yr p.a. 5 yr p.a. 10 yr p.a. AUI share price v ASX All Ords

Share price*

Performance 4.2% 6.3% 13.8% 20.9% 8.0% 9.7%

Benchmark -0.3% 0.2% 5.9% 14.0% 6.7% 8.2%

Active return 4.5% 6.1% 7.9% 6.9% 1.3% 1.5%

NTA+

Performance -0.6% -0.1% 6.4% 15.5% 6.8% 8.9%

Benchmark -0.6% 0.3% 5.7% 14.4% 6.6% 8.2%

Active return 0.0% -0.4% 0.7% 1.1% 0.2% 0.7%


as at 30-Sep-14

ANZ Bank 8.4

Westpac Bank 7.5


BHP Billiton 6.9


Wesfarmers 6

Rio Tinto 5.6

Woodside Petroleum 5

Diversif ied United Investment 4.2


Sharpe Standard Transurban Group 2.7

Share price* Ratio Ratio Deviation Origin Energy 2.2

Year 1 1.03 0.78 12.7% CSL 2.2

Year 3 0.91 1.23 14.0% Brambles 2

Year 5 0.17 0.26 14.3% Oil Search 1.9

NTA+ Orica 1.9

Year 1 0.22 0.25 10.1% Telstra Corporation 1.6

Year 3 0.43 0.93 12.7% Santos 1.4

Year 5 0.07 0.18 13.4% Washington H Soul Pattinson 1.4

Amalgamated Holdings 1.4

% of Total 80.6


incorporate f ranking. Index returns however are entirely before any operat ing expenses or taxat ion. LIC returns will consequent ly be understated relat ive to the Index return.


against the S&P/ASX 300 Accumulat ion Index.


Investment Personnel/Directors: Charles Goode AC (Chairman), Peter Wetherall, Frederick Grimw ade

and Jim Craig.

AUI is an investment company w hich seeks, through careful portfolio management, to reduce risk and

improve income from dividends and interest so as to maintain and grow dividend distributions to

shareholders over the long term. AUI w as founded in 1953 by the late Sir Ian Potter and The Ian

Potter Foundation Ltd is today the Company's largest single shareholder.

Capital Structure

Information

3,000

4,500

6,000

$2.00

$4.00

$6.00

$8.00

$10 .00


AUI ALL ORDINARIE S

Financials

Resources

Industrial

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

$3.00

$4.00

$5.00

$6.00

$7.00

$8.00

$9.00

$10.00

$11.00

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014



CENTURY AUSTRALIA INVESTMENTS (CYA)Domestic Focussed Share Price and NTA Summary


Manager: Perennial Value Management Indirect cost ratio wit h p erf . f ee: 1.09% Share price $0.86


Post-tax NTA $0.92

Investment Strategy

Pre-tax NTA -4.9%

Post-tax NTA -6.4%



Yield 5.8%

Franking 100%


Key Information

Exposure: International/Domestic, Equities/Fixed Income/Derivatives, Cash

Style: Large/Medium/Small Cap, Balanced/Value/Grow th, Passive/Active, Long/Short Ordinary shares 79.7m

Derivatives: Yes. Options/other 0.0m

Cash/Debt: $1.1m cash, $0 debt (30 Jun. '14) Fully diluted 79.7m

Dividend reinvestment plan: Yes, 2% discount to the 5 day-VWAP post record date Market capitalisation 68.5m

Other: No.

Performance 3-mth 6-mth 1 year 3 yr p.a. 5 yr p.a. 10 yr p.a. CYA share price v ASX All Ords

Share price*

Performance -1.1% 0.0% 8.3% 18.0% 5.5% 6.0%

Benchmark -0.3% 0.2% 5.9% 14.0% 6.7% 8.2%

Active return -0.8% -0.2% 2.4% 4.0% -1.2% -2.2%

NTA+

Performance -0.1% 0.2% 2.5% 8.9% 2.8% 5.0%

Benchmark -0.6% 0.3% 5.7% 14.4% 6.6% 8.2%

Active return 0.5% -0.1% -3.2% -5.5% -3.8% -3.2%

Returns have been calculated on the share price on an accumulation basis


as at 30-Sep-14

BHP Billiton 9.4

Westpac Bank 7.6


ANZ Bank 6.7

Telstra 5.9


Woodside Petroleum 3.4

Macquarie Group 3.4

Rio Tinto 3.1

Risk/Return Indicators Exposure (Top 10) QBE 2.9

Sharpe Standard % of Total 54.2

Share price* Ratio Ratio Deviation

Year 1 0.50 0.56 7.8%

Year 3 0.43 1.02 14.1%

Year 5 -0.13 0.08 13.9%

NTA+

Year 1 -0.71 -0.16 8.7%

Year 3 -0.83 0.45 11.6%

Year 5 -0.45 -0.11 13.7%

M easurements of a listed investment company’s performance based on pre-tax asset backing or share price represent after tax measures, and are af ter the payment of company tax on capital gains

and unfranked income. Index returns however are entirely before tax measures. Listed investment company returns will consequent ly be understated relat ive to the Index return.


against the S&P/ASX 300 Accumulation.


Investment Personnel: Perennial Value Management. Directors: Robert Turner (Chairman), Stephen

Menzies, Geoff Wilson and Ross Finley.

CYA aims to provide long-term capital grow th and income by investing in quality, undervalued

Australian companies. Companies must display f inancial strength, proven management and an

established and sustainable business model based on a strong 'bottom-up' approach.

Capital Structure

Information

3,000

4,500

6,000

$0.40

$0.65

$0.90


CYA ALL ORDINARIE S

Financials

Resources

Industrial

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

$0.00

$0.50

$1.00

$1.50

$2.00

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014



MILTON CORPORATION (MLT)Domestic Focussed Share Price and NTA Summary




Post-tax NTA $3.72

Investment Strategy

Pre-tax NTA 2.4%

Post-tax NTA 14.5%



Yield 4.2%

Franking 100%


Key Information*included a 0.4 cent special dividend

Exposure: International/Domestic,�Equities/Fixed Income/Derivatives,�Cash Capital Structure



Cash/Debt: $116.2m Cash (30 June 2014) Fully diluted 639.5m

Dividend reinvestment plan: Yes Market capitalisation 2724.5m

Performance 3-mth 6-mth 1 year 3 yr p.a. 5 yr p.a. 10 yr p.a. MLT share price v ASX All Ords

Share price*

Performance -4.1% 2.9% 12.8% 21.0% 8.5% 8.7%

Benchmark -0.3% 0.2% 5.9% 14.0% 6.7% 8.2%

Active return -3.8% 2.7% 6.9% 7.0% 1.8% 0.5%

NTA+

Performance -2.2% -1.5% 3.9% 15.1% 7.3% 8.2%

Benchmark -0.3% 0.2% 5.9% 14.0% 6.7% 8.2%

Active return -1.9% -1.7% -2.0% 1.1% 0.6% 0.0%


as at 30-Sep-14

Westpac Bank 12.8



W H Soul Pattinson 5.1

Wesfarmers 4.6

BHP Billiton 4.4

Woolw orths 3.7

ANZ Bank 3.6

Bank of Queensland 3.2

Risk/Return Indicators Exposure (Portfolio) Telstra Corporation 2.8

Sharpe Standard Bendigo and Adelaide Bank 2.6

Share price* Ratio Ratio Deviation Perpetual 2.3

Year 1 0.65 0.71 12.4% ALS 2.3

Year 3 0.81 1.28 13.6% CSL 1.7

Year 5 0.20 0.31 13.3% Brickw orks 1.7

NTA+ Suncorp Group 1.6

Year 1 -0.90 0.00 9.4% AGL Energy 1.4

Year 3 0.37 1.05 11.0% Rio Tinto 1.3


AP Eagers 1.2

% of Total 71.8

MLT is a long-term investor in companies, trusts, stapled securities and property. MLT seeks to

invest in w ell-managed companies and trusts w ith a profitable history and w ith the expectation of

sound dividend grow th. MLT is not a speculative investor and does not sell its assets to increase

prof it for distribution to shareholders. Capital profits are reinvested by the Company for the benefit of

shareholders.

Investment Personnel: Frank Gooch (MD), Sharon Johnson, Michael Borg and Michelle Wigglesw orth.

Investment Commitee: Rob Millner, Kevin Eley, John Church and Frank Gooch. Directors: Robert Millner

(Chairman), Kevin Eley, Ian Pollard, Frank Gooch, John Church and Graeme Crampton

*+ M easurement of a listed investment company’s performance is calculated after all operat ing expenses, provision and payment of both income and capital gains tax and the reinvestment of dividends,

however, does not incorporate franking. Index returns however are ent irely before tax measures. Listed investment company returns will consequently be understated relat ive to the Index return.

* The shareprice bench mark has been compared against the S&P/ASX All Ordinaries Accumulat ion Index. + The NTA has been compared



Information

3,500

4,000

4,500

5,000

5,500

6,000

$2.00

$2.50

$3.00

$3.50

$4.00

$4.50

$5.00


MLT ALL�ORDINAR IES

Financials

Materials

Staples

Energy

Industrials

HealthcareProperty

Cash

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014



BKI INVESTMENT CO (BKI)Domestic Focussed Share Price and NTA Summary



Listed: 2003 Indirect cost ratio w/ out perf . f ee: 0.15% Pre-tax NTA $1.58

Post-tax NTA $1.48

Investment Strategy

Pre-tax NTA -1.3%

Post-tax NTA 5.4%



Yield 4.5%

Franking 100%


Key Information

Exposure: International/Domestic,�Equities/Fixed�Income/Derivatives,�Cash Capital Structure



Cash/Debt: $41.0m cash, $0 debt (30 Jun ' 14) Fully diluted 554.9m

Dividend reinvestment plan: 0% discount to 5 day average price post ex-date. Market capitalisation 865.6m

Other: n/a

Performance 3-mth 6-mth 1 year 3 yr p.a. 5 yr p.a. 10 yr p.a. BKI share price v ASX All Ords

Share price*

Performance -3.2% -0.5% 6.3% 18.6% 10.2% 9.7%

Benchmark -0.3% 0.2% 5.9% 14.0% 6.7% 8.2%

Active return -2.9% -0.7% 0.4% 4.6% 3.5% 1.5%

NTA+

Performance -1.0% -1.0% 2.3% 12.6% 6.9% 8.3%

Benchmark -0.6% 0.3% 5.7% 14.4% 6.6% 8.2%

Active return -0.4% -1.3% -3.4% -1.8% 0.3% 0.1%


as at 30-Sep-14



Westpac Bank 7.4

BHP Billiton 5.5

Telstra 5.3

Wesfarmers 4.8

ANZ Bank 4.4

New Hope Corp 4.4

TPG Telecom 3.4


Sharpe Standard APA Group 2.4

Share price* Ratio Ratio Deviation Insurance Australia Group 2.2


Year 3 0.53 1.04 14.4% AGL Energy 1.9

Year 5 0.38 0.45 12.9% Suncorp Group 1.8

NTA+ Invocare 1.7

Year 1 -1.58 -0.17 9.2% ASX 1.3

Year 3 -0.60 0.81 11.0% Transurban Group 1.3

Year 5 0.11 0.23 11.2% Ramsay Health Care 1.3

ARB Corporation 1.2

% of Total 73.0

*+ M easurement of a listed investment company’s performance is calculated after all operat ing expenses, provision and payment of both income and capital gains tax and the reinvestment of dividends,

however, does not incorporate franking. Index returns however are ent irely before tax measures. Listed investment company returns will consequently be understated relat ive to the Index return.




Investment Personnel: Tom Millner (CEO), Robert Millner, Alexander Payne, Ian Huntley, Will Culbert.

Directors: Robert Millner (Chairman), Alexander Payne, David Hall, Ian Huntley

BKI invests w ith a long-term horizon in companies, trust and interest bearing securities, w ith a focus

on w ell-managed businesses w ith a profitable history and sound dividend or distribution grow th

prospects. The portfolio had been built over 15 years, prior to being acquired by BKI and listed in

2003.

Information

3,000

4,500

6,000

$0.45

$1.10

$1.75


BKI ALL ORDINARIES

Financials

Resources

Industrial

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

$0.40

$0.60

$0.80

$1.00

$1.20

$1.40

$1.60

$1.80

$2.00

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014



CARLTON INVESTMENTS (CIN)Domestic Focussed Share Price and NTA Summary




Post-tax NTA $25.26

Investment Strategy

Pre-tax NTA -8.7%

Post-tax NTA 8.1%



Yield 3.7%

Franking 100%


Key Information




Cash/Debt: $27.3m cash, $0 Debt (30 Jun. '14) Fully diluted 26.6m

Dividend reinvestment plan: No. Market capitalisation 722.8m

Other: Share buy-back currently in place.

Performance 3-mth 6-mth 1 year 3 yr p.a. 5 yr p.a. 10 yr p.a. CIN share price v ASX All Ords

Share price*

Performance 2.4% 7.3% 18.9% 27.7% 15.2% 12.2%

Benchmark -0.3% 0.2% 5.9% 14.0% 6.7% 8.2%

Active return 2.7% 7.1% 13.0% 13.7% 8.5% 4.0%

NTA+

Performance 1.0% 3.5% 10.7% 19.4% 12.2% 10.9%

Benchmark -0.6% 0.3% 5.9% 14.8% 6.8% 8.4%

Active return 1.6% 3.2% 4.8% 4.6% 5.4% 2.5%

Returns have been calculated on the share price on an accumulat ion basis


as at 30-Sep-14

Amalgamated Holdings 37.3


Westpac Bank 7.0


ANZ Bank 3.8

Wesfarmers 3.3

BHP Billiton 3.0

Telstra 2.9

AGL 2.8

Risk/Return Indicators Exposure (Top 20) Perpetual 2.2

Sharpe Standard Bank of Queensland 2.1

Share price* Ratio Ratio Deviation Bendigo & Adelaide Bank 1.7

Year 1 1.81 1.53 9.8% Gow ing Bros 1.6

Year 3 1.22 1.46 16.5% Orica 1.3


NTA+ Amcor 1.2

Year 1 1.02 0.84 8.1% Santos 1.1

Year 3 0.72 1.77 8.9% James Hardie 0.9

Year 5 0.76 0.78 10.1% Lend Lease 0.9

Rio Tinto 0.7

% of Total 88.7

*+ M easurement of a listed investment company’s performance is calculated after all operat ing expenses, provision and payment of both income and capital gains tax and the reinvestment of dividends, however,

does not incorporate franking. Index returns however are ent irely before tax measures. Listed investment company returns will consequent ly be understated relat ive to the Index return.




Directors: Mr Alan Rydge (Chairman), Mr Anthony Clark and Mr Graeme Herring.

CIN's investment strategy is to invest in established listed blue chip stocks that provide high levels of

sustainable income through fully franked dividends. It is the mandate of the LIC to only dispose of

investments through takeovers, mergers or other exceptional circumstances that may arise from time to

time.

Capital Structure

Information

3,000

3,500

4,000

4,500

5,000

5,500

6,000

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00


CI N ALL�OR DINAR IES

Financials

Resources

Industrial

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014



DIVERSIFIED UNITED INVESTMENT (DUI)Domestic Focussed Share Price and NTA Summary




Post-tax NTA $3.11

Investment Strategy

Pre-tax NTA -5.1%

Post-tax NTA 9.7%



Yield 4.1%

Franking 100%


Key Information




Cash/Debt: $6.9m cash, $64.8m Debt (30 Jun. '14) Fully diluted 171.5m

Dividend reinvestment plan: Yes. Market capitalisation 585.3m

Other: Affiliated w ith AUI

Performance 3-mth 6-mth 1 year 3 yr p.a. 5 yr p.a. 10 yr p.a. DUI share price v ASX All Ords

Share price*

Performance -0.4% 1.0% 10.7% 22.0% 7.2% 10.6%

Benchmark -0.3% 0.2% 5.9% 14.0% 6.7% 8.2%

Active return -0.1% 0.8% 4.8% 8.0% 0.5% 2.4%

NTA+

Performance -0.4% 0.4% 7.3% 17.4% 7.1% 9.3%

Benchmark -0.6% 0.3% 5.7% 14.4% 6.6% 8.2%

Active return 0.2% 0.1% 1.6% 3.0% 0.5% 1.1%


as at 30-Sep-14


ANZ Bank 8.3

Westpac Bank 8.2

BHP Billiton 7.6

CSL 5.9

Woodside Petroleum 5.7


Rio Tinto 5.0

Transurban Group 4.0


Sharpe Standard Wesfarmers 2.7

Share price* Ratio Ratio Deviation Origin Energy 2.5

Year 1 0.58 0.50 13.7% Washington H Soul Pattinson 2.0

Year 3 0.88 1.14 16.1% AMP 1.9

Year 5 0.06 0.18 15.6% Oil Search 1.9

NTA+ Computershare 1.7

Year 1 0.53 0.35 9.7% Asciano 1.7

Year 3 1.28 1.14 12.1% Mystate 1.7

Year 5 0.20 0.21 13.1% Vanguard VTS ETF 1.6

Vanguard VEU ETF 1.6

% of Total 81.4

*+ M easurement of a LIC’s performance is calculated after all operating expenses, provision and payment of both income and capital gains tax and the reinvestment of dividends, and do not

incorporate f ranking. Index returns however are entirely before any operating expenses or taxation. LIC returns will consequent ly be understated relat ive to the Index return.


against the S&P/ASX 300 Accumulation.


Directors: Charles Goode AC (Chairman), Stephen Hiscock (Non-Executive Director), Pierre Prentice

(Non-Executive Director) and Anthony Burgess (Non-Executive Director).

DUI seeks a mixture of current income and longer term capital gains w ithin acceptable levels of risk. It

takes a medium to longer term view , investing in a diversified portfolio of Australian equities, listed

property trusts and short term deposits.

Capital Structure

Information

3,000

4,500

6,000

$1.60

$2.60

$3.60


DU I ALL�ORDINAR IES

Financials

Resources

Industrial

Property

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

$1.00

$2.00

$3.00

$4.00

$5.00

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014



WHITEFIELD (WHF)Domestic Focussed Share Price and NTA Summary

Mandate: Australian listed equities Benchmark: S&P/ASX 200 Ind Accumulation as at 30-Sep-14

Manager: White Funds Management Pty Ltd Indirect cost ratio wit h per f . f ee: 0.38% Share price $4.22

Listed: 1923 Indirect cost ratio w/ o ut perf . f ee: 0.38% Pre-tax NTA $4.34

Post-tax NTA $4.12

Investment Strategy

Pre-tax NTA -2.8%

Post-tax NTA 2.4%



Yield 4.0%

Franking 100%


Key Information




Cash/Debt: $8.2m Cash, $0.0m Debt, $41.0m Hybrid (31 Mar. '14) Fully diluted 76.7m

Dividend reinvestment plan: Yes. 0-5% discount to average price post ex-date. Market capitalisation 322.0m

Other: On market Buy-Back

Performance 3-mth 6-mth 1 year 3 yr p.a. 5 yr p.a. 10 yr p.a. WHF share price v ASX All Ords

Share price*

Performance 1.4% 2.0% 12.5% 25.4% 10.3% 8.4%

Benchmark -0.2% 1.2% 8.0% 20.7% 9.9% 8.7%

Active return 1.6% 0.8% 4.5% 4.7% 0.4% -0.3%

NTA+

Performance -0.2% 0.8% 8.7% 21.2% 8.3% 6.7%

Benchmark -0.2% 1.2% 8.0% 20.7% 9.9% 8.7%

Active return 0.0% -0.4% 0.7% 0.5% -1.6% -2.0%


as at 30-Sep-14


Westpac Bank 8.7

ANZ Bank 7.4



Macquarie Group 5.2

Woolw orths 3.7

Wesfarmers 3.6

Computershare 3.1

Risk/Return Indicators Exposure (Portfolio) Brambles 2.9

Sharpe Standard CSL 2.3

Share price* Ratio Ratio Deviation Crow n Resorts 2.1

Year 1 0.52 0.95 9.0% AMP 2.0

Year 3 0.62 1.82 11.9% QBE Insurance Group 2.0

Year 5 0.05 0.49 12.1% Tw enty- First Century Fox 1.8

NTA+ Amcor 1.7

Year 1 0.60 0.45 10.6% Suncorp Group 1.6

Year 3 0.27 1.52 11.5% Invocare 1.5

Year 5 -0.51 0.33 12.0% Seven Group Holdings 1.4

Resmed 1.2

% of Total 75.4


f ranking. Index returns however are ent irely before any operating expenses or taxation. LIC returns will consequently be understated relat ive to the Index return.

* The shareprice bench mark has been compared against the S&P/ASX 200 Industrials Accumulat ion Index. + The NTA has been compared

against the S&P/ASX 200 Industrials Accumulat ion.


Investment Personnel: Angus Gluskie (Chief Executive Officer). Directors: David Iliffe (Chairman),

Angus Gluskie, Martin Fow ler and Graeme Gillmore.

WHF’s investment strategy looks closely at valuation and likely future earnings in a manner that may be

categorised as “grow th-at-a-reasonable-price". The company invests solely in securities listed on the

Australian Securities Exchange. The company aims to obtain a quantitative and qualitative portrait of the

short term, medium term and long term earnings w hich are realistically achievable for each stock as

w ell as the risk or certainty associated w ith those earnings. Analysis is undertaken both of specific

companies and the greater macro environment in w hich those companies operate.

Capital Structure

Information

3,000

3,500

4,000

4,500

5,000

5,500

6,000

$1.60

$2.10

$2.60

$3.10

$3.60

$4.10

$4.60


WHF ALL�OR DINAR IES

Fin

Ind

Disc

Stap

Tel

Mat

Hlth

Prop

Tech UtlCash

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014



AMCIL (AMH)Domestic Focussed Share Price and NTA Summary



Listed: 2000 Indirect cost ratio w/ o ut p erf . f ee: 0.65% Pre-tax NTA $0.87

Post-tax NTA $0.81

Investment Strategy

Pre-tax NTA 3.4%

Post-tax NTA 11.1%


Personnel Dividends (net)* $0.065

Yield 7.2%

Franking 100%


Key Information*included a 4c special

Exposure: International/Domestic, Equities/Fixed Income/Derivatives, Cash Capital Structure

Style: Large/Medium /Small Cap, Balanced/Value/Grow th, Passive/Active, Long/Short Ordinary shares 234.0m

Derivatives: Options occasionally used to generate additional income. Options/other 0.0m

Cash/Debt: $20.0m cash, $0m Debt (30 Jun '14) Fully diluted 234.0m

Dividend reinvestment plan: 5% discount to 5 day average price post ex-date Market capitalisation 210.6m

Other: Affiliated w ith AFIC (AFI), Djerriw arrh (DJW) and Mirrabooka (MIR).

Performance 3-mth 6-mth 1 year 3 yr p.a. 5 yr p.a. 10 yr p.a. AMH share price v ASX All Ords

Share price*

Performance -1.0% 3.9% 7.9% 19.3% 11.7% 11.9%

Benchmark -0.3% 0.2% 5.9% 14.0% 6.7% 8.2%

Active return -0.7% 3.7% 2.0% 5.3% 5.0% 3.7%

NTA+

Performance -2.2% -1.1% 2.6% 14.7% 9.3% 10.3%

Benchmark -0.6% 0.3% 5.9% 14.8% 6.8% 8.4%

Active return -1.6% -1.4% -3.3% -0.1% 2.5% 1.9%


as at 30-Sep-14

Oil Search 8.3


BHP Billiton 7.0

Westpac Banking 4.9

Santos 4.8


Brambles 4.2

Transurban Group 4.1

National Australia 3.8

Risk/Return Indicators Exposure (Top 20) QBE 3.3

Sharpe Standard CSL 3.3

Share price* Ratio Ratio Deviation Qube Holdings 3.2

Year 1 0.18 0.28 14.3% AMP 3.0

Year 3 0.40 0.91 17.1% TPG Telecom 2.2

Year 5 0.43 0.47 15.7% ResMed 2.1

NTA+ Lifestyle Communities 2.1

Year 1 -0.53 -0.07 8.9% Incitec Pivot 2.1

Year 3 -0.02 1.07 10.2% Brickw orks 2.0

Year 5 0.52 0.48 10.4% Computershare 1.9

Tox Free 1.8

% of Total 75.3

AMCIL’s concentrated portfolio covers both large and small companies. The number of companies in

the portfolio w ill usually comprise 30 to 40 stocks depending on market conditions and thematic

investment opportunities. The selection of stocks in the portfolio is based on attractive valuations as

w ell as the outlook for grow th and the competitive structure of the industry.





Investment Personnel: Ross Barker (Managing Director) and Mark Freeman (Chief Investment Officer).

Directors: Bruce Teele (Chairman), Ross Barker, Peter Barnett, Rupert Myer, Roger Brow n and Bob

Santamaria.


Information

Financials

Resources

Industrial

3,500

5,000

6,500

$0.55

$0.65

$0.75

$0.85

$0.95

$1.05


AMH ALL ORDINARIES

Financials

Resources

Industrial

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014



CLIME CAPITAL (CAM)Domestic Focussed Share Price and NTA Summary


Manager: Clime Asset Management Indirect cost ratio wit h perf . f ee: 1.74% Share price $0.96

Listed: Apr-04 Indirect cost ratio w/ out perf . f ee: 1.74% Pre-tax NTA $1.04

Post-tax NTA $1.02

Investment Strategy

Pre-tax NTA -7.7%

Post-tax NTA -5.9%



Yield* 4.5%

Franking* 100%

Grossed up yield* 6.4%

Key Information


Style: Large/Medium/Small�Cap, Balanced/Value/Growth,�Passive/Active,�Long/Short Ordinary shares 81.1m

Derivatives: The manager has the ability to use derivatives to manage excessive risk concentrations. Options/other 88.4m

Cash (Fixed Income)/Debt: Cash $37.9m, Debt $0.0m (30 Jun. '14) Fully diluted 169.5m

Dividend reinvestment plan: Yes, at 1% discount to 4-day VWAP from (and incl.) record date. Market capitalisation 77.9m

Other: n/a

Performance 3-mth 6-mth 1 year 3 yr p.a. 5 yr p.a. 10 yr p.a. CAM share price v ASX All Ords

Share price*

Performance -1.0% -4.1% -7.3% 11.1% 9.9% 6.9%

Benchmark -0.3% 0.2% 5.9% 14.0% 6.7% 8.2%

Active return -0.7% -4.3% -13.2% -2.9% 3.2% -1.3%

NTA+

Performance -1.0% -0.7% -7.5% 6.2% 3.8% 6.6%

Benchmark -0.3% 0.2% 5.9% 14.0% 6.7% 8.2%

Active return -0.7% -0.9% -13.4% -7.8% -2.9% -1.6%

Share Price and NTA Top Holdings %

as at 30-Sep-14

ANZ Bank 5.5

SMS Management & Tech 4.0

Multiplex Convertible Note 4.0

BHP Billiton 4.0

Brickw orks 3.9

NAB Notes 3.6

Woolw orths 3.5

Macquarie Perpetual Notes 3.4

The Reject Shop 3.3

Risk/Return Indicators Exposure (Net portfolio) Adelaide Brighton 3.0



Year 1 -1.30 -2.14 5.2%

Year 3 -0.24 0.64 11.6%

Year 5 0.22 0.41 13.4%

NTA+

Year 1 -2.02 -1.65 6.9%

Year 3 -0.96 0.30 8.5%

Year 5 -0.32 -0.06 9.1%


incorporate franking or the issue of opt ions. Index returns however are ent irely before any operat ing expenses or taxat ion. LIC returns will consequently be understated relat ive to the Index return.

Premium/(Discount) share price to:CAM offers investors the opportunity to invest in a value focused closed end Investment Company

managed by a top performing Australian Value Equity Manager Clime Asset Management. CAM

applies a four tier investment strategy: Acquire securities in attractive companies w hen the market

price on offer trades at a discount to their assessed value; reduce or close positions w hen the

market price is w ell above the assessment of value; ensure each investment meets a realistic

required return to ensure the risk and return of the portfolio is properly balanced to achieve returns

w ithout risking capital; seek investments w ith an enhanced yield; and maintain a high cash position

w hen prices are expensive and value is not readily available in the market.

Investment Personnel: John Abernethy (Chief Investment Officer), George Whitehouse (Portfolio

Manager). Directors: John Abernethy (Chairman), Geoff Wilson, Julian Gosse and Brett Spork

*+ The investment performance calculat ion has been impacted by the init ial uplif t associated with the 1 for 4 Renounceable Rights issue (CAM PA) issued in April 2007. However, this is offset by the

ongoing cost of the issue which has an effect ive 7.5% fully franked coupon. CAM PA converts into ordinary equity in April 2017.

Information

3,000

4,000

5,000

6,000

$0.60

$0.80

$1.00

$1.20


CA M ALL�ORDINARIES

Equities

Cash

Hybrids

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

$0.40

$0.50

$0.60

$0.70

$0.80

$0.90

$1.00

$1.10

$1.20

$1.30

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014



FLAGSHIP INVESTMENTS (FSI)Domestic Focussed Share Price and NTA Summary


Manager: EC Pohl & Co Pty Ltd Indirect cost ratio wit h p erf . f ee: 4.03% Share price $1.54


Post-tax NTA $1.61

Investment Strategy

Pre-tax NTA -9.1%

Post-tax NTA -4.5%



Yield 4.7%

Franking 100%


Key Information

Exposure: International/Domestic, Equities /Fixed Income/Derivatives, Cash

Style: Large /Medium /Small Cap, Balanced/Value/Growth, Passive/Active , Long/Short Ordinary shares 24.4m


Cash/Debt: $0.4m Cash, $0.0m Debt (30 Jun. '14) Fully diluted 24.4m


Other: On market buyback

Performance 3-mth 6-mth 1 year 3 yr p.a. 5 yr p.a. 10 yr p.a. FSI share price v ASX All Ords

Share price*

Performance 0.9% -1.6% 17.3% 12.8% 7.8% 9.4%

Benchmark -0.3% 0.2% 5.9% 14.0% 6.7% 8.2%

Active return 1.2% -1.8% 11.4% -1.2% 1.1% 1.2%

NTA+

Performance -0.9% -2.6% 4.9% 14.9% 7.2% 8.4%

Benchmark -0.3% 0.2% 5.9% 14.0% 6.7% 8.2%

Active return -0.6% -2.8% -1.0% 0.9% 0.5% 0.2%


as at 30-Sep-14



Macquarie Group 5.5

Seek 5.3

REA Group 5.0

% of Total 30.5

Risk/Return Indicators Exposure (Portfolio)

Sharpe Standard


Year 1 0.91 0.74 18.1%

Year 3 -0.07 0.45 20.2%

Year 5 0.07 0.20 17.2%

NTA+

Year 1 -0.19 0.09 10.9%

Year 3 0.15 1.07 10.5%

Year 5 0.09 0.26 10.8%

*+ M easurement of a LIC’s performance is calculated af ter all operat ing expenses, provision and payment of both income and capital gains tax and the reinvestment of dividends, and do not incorporate

f ranking. Index returns however are ent irely before any operat ing expenses or taxat ion. LIC returns will consequently be understated relative to the Index return.

* The shareprice benchmark has been compared against the S&P/ASX All Ordinaries Accumulat ion Index. + The NTA has been compared against

the S&P/ASX All Ordinaries Accumulat ion Index.


Investment Personnel: Emmanuel Pohl (Managing Director). Directors: Henry Smerdon AM (Chairman),

Emmanuel Pohl, Dominic McGann, Patrick Corrigan AM and Sophie Mitchell

FSI provides investors w ith access to a diversif ied Australian investment portfolio. It aims to maintain 90%

of available funds in equity investments w ith the balance in cash and equivalent. FSI is best suited to

investors w ith a medium to long-term time horizon. FSI’s central investment strategy is to invest in high

quality business franchises that have the ability to grow sales and earnings at rates above GDP,

producing superior investment returns over the long-term. The company adopts an active investment

strategy comprising a broad spectrum of w ell managed companies.

Capital Structure

Information

3,500

5,000

6,500

$0.85

$1.30

$1.75

$2.20


FSI ALL ORDINARIE S

Fin

Ind

DiscMat

IT

Teleco

Cash

Stapl

EngyHealth

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014



WAM CAPITAL (WAM)Domestic Focussed Share Price and NTA Summary


Manager: Wilson Asset Management Indirect cost ratio wit h per f . f ee: 1.50% Share price $2.00


Post-tax NTA $1.79

Investment Strategy

Pre-tax NTA 9.3%

Post-tax NTA 11.7%



Yield 6.3%

Franking 100%


Key Information



Derivatives: Used for arbitrage and in anticipation of a decline in the market value of that security. Options/other 0.0m

Cash (Fixed Income)/Debt: Cash $297m (30 Sept 2014) Fully diluted 340.6m

Dividend reinvestment plan: Yes, 2.5% discount to 4 day VWAP from (and including) ex-date Market capitalisation 681.2m

Other: Aff iliated w ith WAM Research (ASX code: WAX) and WAM Active (ASX code: WAA).

Performance 3-mth 6-mth 1 year 3 yr p.a. 5 yr p.a. 10 yr p.a. WAM share price v ASX All Ords

Share price*

Performance 3.1% 1.3% 10.7% 19.9% 16.6% 10.5%

Benchmark -0.3% 0.2% 5.9% 14.0% 6.7% 8.2%

Active return 3.4% 1.1% 4.8% 5.9% 9.9% 2.3%

NTA+

Performance 2.3% 1.4% 5.1% 11.6% 8.8% 9.8%

Benchmark -0.3% 0.2% 5.9% 14.0% 6.7% 8.2%

Active return 2.6% 1.2% -0.8% -2.4% 2.1% 1.6%


as at 30-Sep-14

CBA PERLS V 3.1

Century Australia 2.1

Slater & Gordon 2.0

Hunter Hall Global Value 1.9

CSG 1.7

Harvey Norman 1.5

Greencross 1.5

Automotive Holdings 1.4

Infomedia 1.2

Risk/Return Indicators Exposure (Portfolio) Sirtex Medical 1.1

Sharpe Standard Mantra Group 1.1

Share price* Ratio Ratio Deviation Hills 1.1

Year 1 0.59 0.75 9.1% IPE 1.1

Year 3 0.67 1.75 9.2% Corporate Travel Mgmt 1.1

Year 5 0.92 1.05 11.7% 3P Learning 1.1

NTA+ Energy Development 1.1

Year 1 -0.13 0.22 5.6% Westoz Investment 1.0

Year 3 -0.28 1.01 7.9% iSelect 1.0

Year 5 0.24 0.58 7.7% Credit Corp Group 1.0

Genw orth Mortgage 1.0

% of Total 28.1

*+ M easurement of a LIC’s performance is calculated af ter all operating expenses, provision and payment of both income and capital gains tax and the reinvestment of dividends, and do not

incorporate f ranking. Index returns however are ent irely before any operat ing expenses or taxation. LIC returns will consequent ly be understated relative to the Index return.


against the S&P/ASX All Ordinaries Accumulation Index.

Premium/(Discount) share price to:WAM Capital Limited (WAM) provides investors exposure to a listed investment company w ith an

actively managed diversif ied portfolio of undervalued grow th companies. These are primarily found

in the small to mid cap industrial sector. WAM also provides exposure to relative value arbitrage and

market mispricing opportunities. The investment objectives are to deliver a rising stream of fully

franked dividends, to provide capital grow th and to preserve capital. WAM has a tw o fold investment

strategy. Research Driven: extensive research, focusing on free cash flow , then rating the

company’s management, earnings grow th potential, valuation, industry position and catalyst for share

price grow th. Market Driven: aims to take advantage of short-term relative arbitrage opportunities and

mispricing in the market.

Investment Personnel: Geoffrey Wilson, Chris Stott, Martin Hickson, Matt Haupt and Tobias Yao.

Directors: Geoffrey Wilson, Matthew Kidman, James Chirnside, Paul Jensen and Lindsay Mann.

Capital Structure

Information

3,100

3,600

4,100

4,600

5,100

5,600

6,100

$1.00

$1.25

$1.50

$1.75

$2.00

$2.25


WAM ALL�OR DI NARIES

Fin

Telco

Disc

Ind

HlthITStaples

Cash�

Util

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014



MIRRABOOKA INVESTMENTS (MIR)Domestic Focussed Share Price and NTA Summary

Mandate: Australian listed equities Benchmark: S&P Midcap (50%); Small Acc (50%) as at 30-Sep-14



Post-tax NTA $2.00

Investment Strategy

Pre-tax NTA 15.5%

Post-tax NTA 27.0%



Yield 7.9%

Franking 100%


Key Information*included a 10 cent special dividend



Derivatives: Options occasionally used to generate additional income. Options/other 0.0m

Cash/Debt: $30.6m cash and $0m debt (30 Jun 2014) Fully diluted 141.0m

Dividend reinvestment plan: 2.5% discount to 5 day average price post ex-date Market capitalisation 358.3m

Other: Aff iliated w ith AMCIL (AMH), AFIC (AFI) and Djerriw arrh (DJW).

Performance 3-mth 6-mth 1 year 3 yr p.a. 5 yr p.a. 10 yr p.a. MIR share price v ASX All Ords

Share price*

Performance 0.4% -3.6% 8.2% 25.5% 13.1% 12.8%

Benchmark -0.3% 0.2% 5.9% 14.0% 6.7% 8.2%

Active return 0.7% -3.8% 2.3% 11.5% 6.4% 4.6%

NTA+

Performance -2.2% -0.8% 5.7% 17.1% 10.6% 9.9%

Benchmark 0.3% 0.2% 4.8% 7.2% 2.2% 5.2%

Active return -2.5% -1.0% 0.9% 9.9% 8.4% 4.7%


as at 30-Sep-14

Qube Holdings 3.7

Tassal Group 3.2

Ansell 3.2

Alumina 3.0

Oil Search 3.0

IRESS 2.8

InvoCare 2.6

ALS 2.4

Perpetual 2.4

Risk/Return Indicators Exposure (Top 20) Tox Free 2.3

Sharpe Standard Seek 2.2

Share price* Ratio Ratio Deviation Vocus Communications 2.1

Year 1 0.16 0.22 19.1% Equity Trustees 2.0

Year 3 0.99 1.45 15.1% Toll Holdings 2.0

Year 5 0.42 0.50 17.5% BigAir Group 2.0

NTA+ Lifestyle Communities 1.9

Year 1 -0.02 0.09 9.3% Fletcher 1.9

Year 3 1.44 1.22 10.6% ResMed 1.9

Year 5 1.27 0.58 10.4% iProperty 1.8

Freedom Foods 1.8

% of Total 48.2

*+ M easurement of a LIC’s performance is calculated af ter all operat ing expenses, provision and payment of both income and capital gains tax and the reinvestment of dividends, and do not

incorporate f ranking. Index returns however are entirely before any operating expenses or taxat ion. LIC returns will consequently be understated relative to the Index return.

* The shareprice bench mark has been compared against the S&P/ASX All Ordinaries Accumulation Index. + The NTA has been

compared against the S&P/M id-cap (50%) and S&P/Small-cap (50%)


Investment Personnel: Ross Barker (Managing Director) and Mark Freeman (Chief Investment

Officer). Directors: Terrence Campbell (Chairman), Ian Campbell, David Meiklejohn, Graeme

Sinclair, Ross Barker

MIR objectives are to provide attractive investment returns over the medium to long term through

holding core investments in selected small and medium sized companies and to provide attractive

dividend returns. MIR focuses on attractive valuations, prospects for strong grow th and the

potential to benefit from takeover activity.

Information

3,000

4,500

6,000

$ 1.00

$ 1.50

$ 2.00

$ 2.50

$ 3.00

O ct- 13 Jan-14 May-14 Sep -14

MIR ALL�OR DINAR IES

Financial

Resources

Industrial

Property

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014



WESTOZ INVESTMENT COMPANY LIMITED (WIC)Domestic Focussed Share Price and NTA Summary


Manager: Westoz Funds Management Indirect cost ratio wit h p erf . f ee: 3.40% Share price $1.14

Listed: Sep-09 Indirect cost ratio w/ out perf . f ee: 1.20% Pre-tax NTA $1.23

Post-tax NTA $1.26

Investment Strategy

Pre-tax NTA -7.5%

Post-tax NTA -9.2%



Yield 7.9%

Franking 100%


Key Information


Style: Large/Medium /Small Cap, Balanced/Value/Grow th, Passive/Active, Long/Short Ordinary shares 129.3m

Derivatives: No (allow ed but not used). Options/other 12.1m

Cash/Debt: $35.0m Cash, $0.0m Debt (30 Jun 2014) Fully diluted 141.4m


Other: Aff iliated w ith Ozgrow th (ASX code: OZG).

Performance 3-mth 6-mth 1 year 3 yr p.a. 5 yr p.a. 10 yr p.a. WIC share price v ASX All Ords

Share price*

Performance -10.5% -4.3% 4.9% 18.2% 8.1% n/a

Benchmark -0.3% 0.2% 5.9% 14.0% 6.7% 8.2%

Active return -10.2% -4.5% -1.0% 4.2% 1.4% n/a

NTA+

Performance -3.0% -8.5% -4.0% 5.5% 1.1% n/a

Benchmark -0.3% 0.2% 5.9% 14.0% 6.7% 8.2%

Active return -2.7% -8.7% -9.9% -8.5% -5.6% n/a


as at 30-Sep-14

Automotive Holdings Group 11.0

Finbar Group 9.0

Cedar Woods Properties 8.0

Mount Gibson Iron 7.0

Sundance Energy Australia 5.0

Medusa Mining 3.0

Regis Resources 3.0

Atlas Iron 3.0

Sandfire Resources 2.0

Risk/Return Indicators Exposure (Portfolio) MACA 2.0

Sharpe Standard Teranga Gold 2.0

Share price* Ratio Ratio Deviation Other 13.0

Year 1 -0.06 0.06 18.6% % of Total 68.0

Year 3 0.31 0.81 17.9%

Year 5 0.08 0.18 20.2%

NTA+

Year 1 -1.22 -0.69 11.4%

Year 3 -0.75 0.11 16.9%

Year 5 -0.46 -0.19 17.6%


incorporate f ranking. Index returns however are ent irely before any operat ing expenses or taxat ion. LIC returns will consequently be understated relat ive to the Index return.

* The shareprice bench mark has been compared against the S&P/ASX All Ordinaries Accumulat ion Index. + The NTA has been compared against the S&P/ASX All Ordinaries Accumulat ion Index.


Key Personnel: Philip Rees (Executive Director), Dermot Woods, Jay Hughes. Directors: Philip Rees,

Jay Hughes (Chairman), Terry Budge, Stephen Tucker, Dermot Woods.

WIC invests in small to medium sized companies, generally w ith some connection to Western

Australia. Its investment objective is to generate consistent positive returns over the medium term,

thereby providing a reliable stream of dividends and capital grow th for investors. A concentrated

portfolio (generally 10 to 20 stocks) is held and given the focus on Western Australia, above average

exposure to the resources sector is a feature. If suitable equity investments are not available, large

cash positions may be held from time to time.

Capital Structure

Information

3,000

3,500

4,000

4,500

5,000

5,500

6,000

$0.40

$0.50

$0.60

$0.70

$0.80

$0.90

$1.00

$1.10

$1.20

$1.30

$1.40


WIC ALL ORDINARIES

Industrials

ResourcesCash

Financials

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

2008 2009 2010 2011 2012 2013 2014



WAM RESEARCH (WAX)Domestic Focussed Share Price and NTA Summary


Manager: Wilson Asset Management Indirect cost ratio wit h p er f . f ee: 1.88% Share price $1.17


Post-tax NTA $1.11

Investment Strategy

Pre-tax NTA 5.1%

Post-tax NTA 5.3%



Yield 6.2%

Franking 100%


Key Information


Style: Large/Medium/Small Cap,�Balanced/Value/Growth,�Passive/Active,�Long/Short Ordinary shares 140.6m


Cash (Fixed Income)/Debt: Cash $59.9m (30 Sept 2014) Fully diluted 208.0m


Other: Aff iliated w ith WAM Capital (ASX code: WAM) and WAM Active (ASX code: WAA)

Performance 3-mth 6-mth 1 year 3 yr p.a. 5 yr p.a. 10 yr p.a. WAX share price v ASX All Ords

Share price*

Performance 4.5% 1.5% 8.2% 27.9% 17.0% 8.6%

Benchmark -0.3% 0.2% 5.9% 14.0% 6.7% 8.2%

Active return 4.8% 1.3% 2.3% 13.9% 10.3% 0.4%

NTA+

Performance 5.0% 4.3% 9.0% 15.0% 9.7% 6.2%

Benchmark -0.3% 0.2% 5.9% 14.0% 6.7% 8.2%

Active return 5.3% 4.1% 3.1% 1.0% 3.0% -2.0%



as at 30-Sep-14

Slater & Gordon 4.0

CSG 3.2

CBA PERLS V 2.9

Greencross 2.9


Infomedia 2.3

Sirtex Medical 2.2

Corporate Travel Management 2.2

Mantra Group 2.1

Risk/Return Indicators Exposure (Portfolio) iSelect 2.1

Sharpe Standard 3P Learning 2.0

Share price* Ratio Ratio Deviation Energy Developments 2.0

Year 1 0.25 0.43 9.9% Credit Corp Group 2.0

Year 3 1.57 1.97 12.3% Technology One 2.0

Year 5 0.98 0.92 13.8% Veda Group 1.9

NTA+ Amalgamated Holdings 1.9

Year 1 0.37 1.28 3.9% Isentia Group 1.8

Year 3 0.12 2.22 5.1% Ardent Leisure Group 1.8

Year 5 0.37 0.94 5.7% Smartgroup Corporation 1.7

Clime Investment Management 1.6

% of Total 45.3


franking. Index returns however are entirely before any operat ing expenses or taxat ion. LIC returns will consequent ly be understated relative to the Index return.



Premium/(Discount) share price to:WAX is a LIC primarily investing in small to medium industrial companies listed on the ASX. The

investment objectives are to provide a grow ing stream of fully franked dividends and to achieve a

high real rate of return, comprising both income and capital grow th w ithin risk parameters acceptable

to the Directors. WAX has a tw ofold investment strategy. Research Driven: extensive research,

focusing on free cash f low , then rating the company’s management, earnings grow th potential,

valuation, industry position and catalyst for share price grow th. Investment Driven: seeks to identify

companies that have a sustainable business model, track record of dividends, history of profits and

positive free cash f low , acceptable financial strength and attractive return on equity.


Directors: Geoffrey Wilson, Matthew Kidman, Julian Gosse, Chris Stott, Kate Thorley and John

Abernethy.

Capital Structure

Information

3,200

4,700

6,200

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$1.40

Oct�2013 Jan�2014 May�2014 Sep�2014

WAX ALL�OR DINAR IES

Disc

IT

IndFin

Cash

Stpl Hlth Util

-45%

-35%

-25%

-15%

-5%

5%

15%

25%

35%

$0.00

$0.50

$1.00

$1.50

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014



OZGROWTH (OZG)Domestic Focussed Share Price and NTA Summary

Mandate: Australian listed Benchmark: All Ordinaries Accumulation as at 30-Sep-14

Manager: Westoz Funds Management Indirect cost ratio wit h p er f . f ee: 4.42% Share price $0.20

Listed: Jan-08 Indirect cost ratio w/ out per f . f ee: 1.29% Pre-tax NTA $0.22

Post-tax NTA $0.22

Investment Strategy

Pre-tax NTA -12.6%

Post-tax NTA -11.8%



Yield 7.7%

Franking 100%


Key Information



Derivatives: No (allow ed but not used). Options/other 34.4m

Cash/Debt: $9.3m cash, $0 debt/hybrid (30 Jun 2014) Fully diluted 395.4m

Dividend Reinvestment Plan: Yes Market capitalisation 70.4m

Other: Affiliated w ith Westoz Investment Company (ASX code: WIC).

Performance 3-mth 6-mth 1 year 3 yr p.a. 5 yr p.a. 10 yr p.a. OZG share price v ASX All Ords

Share price*

Performance -3.8% 1.0% 13.6% 20.1% 12.2% n/a

Benchmark -0.3% 0.2% 5.9% 14.0% 6.7% 8.2%

Active return -3.5% 0.8% 7.7% 6.1% 5.5% n/a

NTA+

Performance -1.3% -3.8% -1.3% 6.5% 5.4% n/a

Benchmark -0.3% 0.2% 5.9% 14.0% 6.7% 8.2%

Active return -1.0% -4.0% -7.2% -7.5% -1.3% n/a


as at 30-Sep-14

Cedar Woods Properties 22.0


Tap Oil 7.0

Mount Gibson Iron 7.0

Sundance Energy 5.0

Finbar Group 4.0

Medusa Mining 3.0

Regis Resources 3.0

Teranga Gold 3.0

Risk/Return Indicators Exposure (Portfolio) Troy Resources 3.0

Information Sharpe Standard Indophil Resources 2.0

Share price* Ratio Ratio Deviation Fleetw ood Corporation 2.0

Year 1 0.58 0.54 0.18 Other 17.0

Year 3 0.41 0.81 0.20 % of Total 85.0

Year 5 0.35 0.40 0.20

NTA+

Year 1 -0.45 0.12 0.12

Year 3 0.16 0.18 0.18

Year 5 0.06 0.17 0.17


incorporate franking. Index returns however are ent irely before any operat ing expenses or taxation. LIC returns will consequent ly be understated relat ive to the Index return.

The shareprice bench mark has been compared against the S&P/ASX All Ordinaries Accumulat ion Index. + The NTA has been compared



Key Personnel: Philip Rees, Dermot Woods, Jay Hughes. Directors: Michael Jefferies, Philip Rees, Jay

Hughes (Chairman), Dermot Woods, Stephen Tucker.

OZG invests in small to medium sized companies, generally w ith some connection to Western

Australia. The group's investment objective is to generate a consistent positive return over the

medium term. OZG w ill hold a concentrated portfolio of securities and a variable but significant

amount of cash. It w ill also invest in smaller situations (sub $100m market cap) and consider unlisted

opportunities.

Capital Structure

3,000

5,000

7,000

$0.00

$0.10

$0.20

$0.30


OZG ALL ORDINARIE S

Industrial

ResourcesCash

Financials

-50%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

$0.00

$0.25

$0.50

2008 2009 2010 2011 2012 2013 2014



CONTANGO MICROCAP (CTN)Domestic Focussed Share Price and NTA Summary


Manager: Contango Asset Management Ltd Indirect cost ratio wit h perf . f ee: n/a Share price $1.08

Listed: 2004 Indirect cost ratio w/ o ut perf . f ee: n/a Pre-tax NTA $1.16

Post-tax NTA $1.12

Investment Strategy

Pre-tax NTA -7.5%

Post-tax NTA -4.1%



Yield 8.0%

Franking 38%


Key Information



Derivatives: Portfolio can buy or sell futures to manage market exposure Options/other 0.0m

Cash: $6.0m (30 Jun.'14) Debt: $0m (30 Jun. '14) Fully diluted 158.9m

Dividend reinvestment plan: Yes, 3% discount to the effective share price at record date. Market capitalisation 170.8m

Other: n/a

Performance 3-mth 6-mth 1 yr 3 yr p.a. 5 yr p.a. 10 yr p.a. CTN share price v ASX All Ords

Share price*

Performance 9.4% 9.4% 13.1% 16.3% 7.9% 8.9%

Benchmark -0.3% 0.2% 5.9% 14.0% 6.7% 8.2%

Active return 9.7% 9.2% 7.2% 2.3% 1.2% 0.7%

NTA+

Performance 1.3% -1.1% 2.3% 5.3% 1.1% 6.7%

Benchmark 1.5% -0.8% -0.1% 1.7% -0.3% 3.6%

Active return -0.2% -0.3% 2.4% 3.6% 1.4% 3.1%


as at 30-September-14

Slater & Gordon 4.2

Aff inity Education 3.2

Villa World 3.0

GBST Holdings 2.9

Iproperty Group 2.6


Tiger Resources 2.6

Village Roadshow 2.5

Austal 2.4

Risk/Return Indicators Exposure (Top 20) Mayne Pharma Group 2.4

Sharpe Standard BT Investment Mgmt 2.3

Share price* Ratio Ratio Deviation Prime Media Group 2.3

Year 1 0.66 0.59 15.6% Austbrokers Holdings 2.3

Year 3 0.15 0.60 20.9% Cedar Woods Properties 2.2

Year 5 0.06 0.14 15.6% PMP 2.1

NTA+ ERM Pow er 2.0

Year 1 0.39 -0.13 12.5% SG Fleet Group 2.0

Year 3 0.48 0.09 17.7% Enero Group 1.9

Year 5 0.16 -0.17 12.5% Infomedia 1.8

Oakton 1.8

% of Total 49.1

*+ M easurement of a LIC’s performance is calculated af ter all operating expenses, provision and payment of both income and capital gains tax and the reinvestment of dividends, and do not

incorporate f ranking. Index returns however are entirely before any operating expenses or taxation. LIC returns will consequently be understated relat ive to the Index return.

CTN invests in small and microcap ($10m - $350m at the time of acquisition) companies. Its objective

is to outperform its benchmark over the medium to long-term w hile providing for the payment of

regular franked dividends. The Manager uses the ‘business cycle’ approach to identify themes that

w ill be important drivers of performance for particular sectors and industries. The top dow n research

is combined w ith rigorous company analysis to identify stocks that are likely to deliver strong results

and out perform. The portfolio typically holds around 60 - 100 stocks.

Key Personnel: David Stevens (MD & CIO), Carol Austin, Bill Laister, Justin Farley, Paul Davoren and

Craig Allen. Directors: Mark Kerr (Chairman), David Stevens, Ian Ferres and Glenn Fow les.


against the S&P/ASX Small Ordinaries Accumulat ion Index.


Capital Structure

Information

3,000

5,000

7,000

$0.60

$0.70

$0.80

$0.90

$1.00

$1.10

$1.20

$1.30


CTN ALL ORDINARIE S

Financials

Resources

Industrial

-50%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014


+CTN has purchased the rights of CAML(which is an assets manager) - as such the ICR is not reflective of the underlying vehicle


ACORN CAPITAL INVESTMENT FUND (ACQ)Domestic Focussed Share Price and NTA Summary

Mandate: Australian listed/unlisted equities Benchmark: S&P/ASX Small Ords Accum as at 30-Sep-14

Manager: Acorn Capital Indirect cost ratio wit h perf . f ee: n/a Share price $0.87

Listed: May-14 Indirect cost ratio w/ o ut perf . f ee: n/a Pre-tax NTA $0.95

Post-tax NTA $0.96

Investment Strategy

Pre-tax NTA -9.4%

Post-tax NTA -9.8%



Yield 0.0%

Franking n/a

Grossed up yield n/a

Key Information


Style: Large/Medium/Small Cap, Balanced/Value/Growth, Passive/Active , Long/Short Ordinary shares 50.8m

Derivatives: n/a. Options/other 50.8m

Cash/Debt: $3.7m cash $0m Debt (30 Jun 2014) Fully diluted 101.6m

Dividend Reinvestment Plan: No Market capitalisation 44.0m

Other: n/a

Performance 3-mth 6-mth 1 year 3 yr p.a. 5 yr p.a. 10 yr p.a. ACQ share price v ASX All Ords

Share price*

Performance -0.6% n/a n/a n/a n/a n/a

Index 1.5% -0.8% -0.1% 1.7% -0.3% 3.6%

Active return -2.1% n/a n/a n/a n/a n/a

NTA+

Performance -3.0% n/a n/a n/a n/a n/a

Benchmark 1.5% -0.8% -0.1% 1.7% -0.3% 3.6%

Active return -4.5% n/a n/a n/a n/a n/a


as at 30-Sep-14

Servcorp 4.1

Sundance Energy Australia 3.2

Horizon Oil 2.6

Indophil Resources 2.2

Sub161 2.0

Amaysim Australia 2.0

Generation Healthcare 2.0

eServGlobal 2.0

Azure Healthcare 1.9

Risk/Return Indicators Exposure (Portfolio) Watpac 1.8

Information Sharpe Standard % of Total 23.9


Year 1 n/a n/a n/a

Year 3 n/a n/a n/a Gross Portfolio Structure

Year 5 n/a n/a n/a as at 30-Sep-14

NTA+ Listed Securities 87%

Year 1 n/a n/a n/a Unlisted Investments 5%

Year 3 n/a n/a n/a Cash 8%

Year 5 n/a n/a n/a % of Total 100.0%


incorporate f ranking. Index returns however are ent irely before any operating expenses or taxation. LIC returns will consequent ly be understated relat ive to the Index return.

* The share price benchmark has been compared against the S&P/ASX Small Ordinaries Accumulat ion Index. + The NTA has been

compared against the S&P/ASX Small Ordinaries Accumulation Index.


Investment Personnel: Barry Fairley (MD), Robert Routley, Matthew Sheehan, Paul Palumbo, David

Ransom, Karina Bader, Kylie Molinaro, Cameron Petricevic, Robert Bruce, Tony Pearce, Xing Zhang.

Directors: Barry Fairley, Robert Brow n, Judith Smith, John Steven (Chairman), David Trude.

ACQ invests in Listed and Unlisted Microcaps. The manager believe that through an in-house

research driven investment process, the pricing ineff iciencies that exist in both listed and unlisted

microcaps can be exploited to earn returns superior to those available in the broader market.

Capital Structure

1,000

2,000

3,000

$0.50

$0.75

$1.00

$1.25


ACQ ALL ORDINARIE S

Consumer Disc & Staples

IT

Financials

Industrials

Materials

Energy

Healthcare

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

$0.00

$0.25

$0.50

$0.75

$1.00

$1.25

$1.50

2010 2011 2012 2013 2014



AUSTRALIAN LEADERS FUND (ALF)Domestic Focussed Share Price and NTA Summary

Mandate: Australian listed equities, Long/Short Benchmark: All Ordinaries Accumulation as at 30-Sep-14

Manager: Watermark Funds Management Indirect cost ratio wit h per f . f ee: 2.76% Share price $1.66

Listed: Feb-04 Indirect cost ratio w/ o ut per f . f ee: 1.28% Pre-tax NTA $1.43

Post-tax NTA $1.42

Investment Strategy

Pre-tax NTA 15.7%

Post-tax NTA 16.5%



Yield* 7.3%

Franking* 100%


Key Information



Derivatives: The manager has the ability to short-sell securities. Options/other 0.0m

Cash/Fixed Income: $240.0m, Debt: $0.0m (30 Jun. '14) Fully diluted 251.7m

Dividend Reinvestment Plan: Yes, 3% discount to the 5 day VWAP from (and incl.) ex-div date. Market capitalisation 416.6m

Other: aff iliated w ith Watermark Market Neutral Fund (WMK)

Performance 3-mth 6-mth 1 year 3 yr p.a. 5 yr p.a. 10 yr p.a. ALF share price v ASX All Ords

Share price*

Performance -4.3% -0.9% 2.3% 26.5% 16.7% 14.6%

Benchmark -0.3% 0.2% 5.9% 14.0% 6.7% 8.2%

Active return -4.0% -1.1% -3.6% 12.5% 10.0% 6.4%

NTA+

Performance -5.9% -5.9% -0.4% 18.9% 7.8% 10.7%

Benchmark -0.3% 0.2% 5.9% 14.0% 6.7% 8.2%

Active return -5.6% -6.1% -6.3% 4.9% 1.1% 2.5%


as at 30-Jun-14

ANZ

Commonw ealth Bank

Rio Tinto

Wesfarmers

Primary Health Care

Origin Energy

Crow n Resorts

Tatts Group

WorleyParsons

Risk/Return Indicators Net exposure Incitec Pivot

Sharpe Standard % of Total Undi sc l ose d


Year 1 -0.52 -0.21 7.7% Gross Portfolio Structure

Year 3 1.36 1.90 12.1% as at 30-Sep-14

Year 5 0.98 0.91 13.6% Listed Securities (long) 132%

NTA+ Listed Securities (short) -97%

Year 1 -0.49 -0.57 7.6% Net exposure 35%

Year 3 0.36 1.16 13.1% Hybrids/Bonds (long) 0%

Year 5 0.09 0.25 13.9% Cash 65%

Gross Assets 100%


incorporate f ranking or the issue of opt ions. Index returns however are entirely before any operating expenses or taxat ion. LIC returns will consequent ly be understated relat ive to the Index return.



Premium/(Discount) share price to:ALF looks to invest in leading Australian companies, w ith strong business fundamentals on attractive

terms. The group has a long/short mandate that allow s the company to take advantage of both

undervalued and overvalued securities. The proceeds raised from short selling securities provides

an additional source of funding for the group. These funds are either retained in cash or re-invested

into the investment portfolio of shares w e expect to outperform.

Investment Personnel: Justin Braitling (Chief Investment Officer), Tom Richardson (Senior Analyst),

Joshua Ross (Analyst), Omkar Joshi (Analyst), Delian Entchev (Analyst). Directors: Justin Braitling

(Chairman), Julian Gosse, John Abernethy and Geoff Wilson.

Information

3,100

4,600

6,100

$1.25

$1.50

$1.75

$2.00


ALF ALL�ORDINAR IES

-50%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$1.40

$1.60

$1.80

$2.00

2006 2007 2008 2009 2010 2011 2012 2013 2014


-5% 0% 5% 10%

Util & Telco

Materials

Industrials

Health Care

Other Financials

Real Estate

Banks

Energy

Cons Staples

Cons Disc


CADENCE CAPITAL (CDM)Domestic Focussed Share Price and NTA Summary


Manager: Cadence Asset Management Indirect cost ratio wit h p erf . f ee: 1.42% Share price $1.41

Listed: Dec-06 Indirect cost ratio w/ o ut perf . f ee: 1.42% Pre-tax NTA $1.34

Post-tax NTA $1.35

Investment Strategy

Pre-tax NTA 5.2%

Post-tax NTA 4.1%


Dividends (net) $0.10

Yield 7.1%

Personnel Franking 100%


Capital Structure

Key Information Ordinary shares 199.7m

Exposure: International/Domestic,�Equities/Fixed�Income/Derivatives,�Cash Options/other 132.1m

Style: Large/Medium/Small�Cap, Balanced/Value/Growth,�Passive/Active,�Long/Short Fully diluted 331.8m

Derivatives: n/a Market capitalisation 281.6m

Cash (Fixed Income)/Debt: Cash $96.8m, Debt $0.0m (30 Jun.' 14) CDM share price v ASX All Ords

Dividend reinvestment plan: Yes, 3% discount to 4 day VWAP from (and including) ex-date

Other: n/a

Performance 3-mth 6-mth 1 year 3 yr p.a. 5 yr p.a. 10 yr p.a.

Share price*

Performance -0.3% 0.1% 13.5% 16.6% 24.7% n/a

Benchmark -0.3% 0.2% 5.9% 14.0% 6.7% 8.2%

Active return 0.0% -0.1% 7.6% 2.6% 18.0% n/a

NTA+ Top Holdings %

Performance -1.0% 0.2% 9.2% 10.7% 12.7% n/a as at 30-Sep-14

Benchmark -0.3% 0.2% 5.9% 14.0% 6.7% 8.2% Macquarie Group 7.6

Active return -0.7% 0.0% 3.3% -3.3% 6.0% n/a Gilead Sciences 5.0

Melbourne IT 4.2

Share Price and NTA Genw orth Mortgage 4.1

Henderson Group 4.0

Liquefied Natural 3.8


Retail Food Group 3.5

ANZ Bank 3.5

Iinet 3.1

Suncorp Group 2.8

Bank of Queensland 2.7

BEN Bank 2.6

Risk/Return Indicators Exposure (Net) Commonw ealth Bank 2.5

Information Sharpe Standard Flexigroup 1.9

Share price* Ratio Ratio Deviation Bluescope Steel 1.9

Year 1 0.99 0.90 10.6% Macquarie Atlas Road 1.8

Year 3 0.23 1.02 12.6% % of Total 58.7

Year 5 1.14 1.26 16.1% Gross Portfolio Structure

NTA+ as at 30-Sep-14

Year 1 0.39 0.75 7.0% Listed Securities (long) 73%

Year 3 -0.41 0.89 7.9% Listed Securities (short) 1%

Year 5 0.57 0.68 12.3% Net exposure 72%

Cash 28%

Gross Assets 100%

*+ M easurement of a LIC’s performance is calculated after all operating expenses, provision and payment of both income and capital gains tax and the reinvestment of dividends, and do not incorporate

f ranking or the issue of opt ions. Index returns however are ent irely before any operat ing expenses or taxat ion. LIC returns will consequent ly be understated relative to the Index return.

*+ In M ay 2011 CDM received $0.22 per CDM share of franking credits when RHG returned the majority o f its assets in the

form o f a fully franked dividend. A t the time CDM shares were trading at $1.25. These franking credits were worth 17.6% of

the CDM share price at the time and are not reflected in our performance calculations as the calculations are based on pre-

tax NTA and not post-tax NTA. * The share price benchmark and NTA have been compared against the S&P/ASX A ll

Ordinaries Accumulation Index.


CDM is a long-short Australian equities fund, w ith a long bias, that invests predominatly in equities

listed on the ASX. More recently, the manager has taken advatange of opportunities in the

international markets. The manager uses both fundamental and technical analysis in making investing

decisions, employing bottom up research and a disciplined 'Entry and Exit' strategy. Both strategies

seek to exploit the ineff icient f low of information through the market, individual equity momentum and

the cyclical nature of markets.

Investment Personnel: Karl Siegling, Wayne Davies, Christopher Garrard, Simon Bonouvrie. Directors:

Karl Siegling (Chairman), Wayne Davies, James Chirnside, Ronald Hancock.

3,100

4,600

6,100

$0.60

$0.80

$1.00

$1.20

$1.40

$1.60


CD M ALL�OR DI NAR IES

Div�Fin

Banks

Mat

SoftwareCons

Teleco

Financials

Energy

Insur

ServOthers

-60%

-50%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$1.40

$1.60

$1.80

2007 2008 2009 2010 2011 2012 2013 2014



WAM ACTIVE (WAA)Domestic Focussed Share Price and NTA Summary


Manager: Wilson Asset Management Indirect cost ratio wit h per f . f ee: 4.99% Share price $1.40


Post-tax NTA $1.06

Investment Strategy

Pre-tax NTA 31.6%

Post-tax NTA 31.7%



Yield 6.9%

Franking 100%


Key Information




Cash (Fixed Income)/Debt: Cash $20.2m (30 Sept 2014) Fully diluted 34.3m

Dividend reinvestment plan: Yes, 5.0% discount to 4 day VWAP from (and including) ex-date Market capitalisation $47.8m

Other: Affiliated w ith WAM Research (ASX code: WAX) and WAM Capital (ASX code: WAM).

Performance 3-mth 6-mth 1 year 3 yr p.a. 5 yr p.a. 10 yr p.a. WAA share price v ASX All Ords

Share price*

Performance 9.0% 6.7% 22.1% 19.8% 13.6% n/a

Benchmark -0.3% 0.2% 5.9% 14.0% 6.7% 8.2%

Active return 9.3% 6.5% 16.2% 5.8% 6.9% n/a

NTA+

Performance -0.1% 0.3% -2.9% 6.3% 4.1% n/a

Benchmark -0.3% 0.2% 5.9% 14.0% 6.7% 8.2%

Active return 0.2% 0.1% -8.8% -7.7% -2.6% n/a


as at 30-Sep-14


Hunter Hall Global Value 4.1

CBA PERLS V 3.8

Harvey Norman 3.1

IPE 2.4

Hills 2.4

Westoz Investment 2.3

Genw orth Mortgage 2.1

Ironbark Capital 2.1

Risk/Return Indicators Exposure (Portfolio) Coventry Group 1.9

Sharpe Standard Sunland Group 1.6

Share price* Ratio Ratio Deviation Contango Microcap 1.4

Year 1 1.11 1.32 13.7% Speedcast International 1.4

Year 3 0.54 1.50 10.7% Treasury Wine Estates 1.3

Year 5 0.55 0.73 12.6% HFA Holdings 1.2

NTA+ Regis Healthcare 1.2

Year 1 -0.99 -1.74 3.9% Aveo Group 1.2

Year 3 -0.82 0.41 6.4% Galileo Japan Trust 1.2

Year 5 -0.27 -0.04 6.2% TPG Telecom 1.1

Transfield Services 1.1

% of Total 41.2


f ranking. Index returns however are entirely before any operat ing expenses or taxat ion. LIC returns will consequently be understated relat ive to the Index return.



Premium/(Discount) share price to:WAM Active offers investors exposure to an active trading style w ith the aim of achieving a sound

return w ith a low correlation to traditional markets. The investment objectives are to deliver investors

a grow ing income stream in the form of fully franked dividends and to preserve capital in both the

short term and long term. WAA uses a Market Driven approach to investing - it aims to take advantage

of short-term relative arbitrage and mispricing in the market. The manager participates in IPO’s, rights

issues, placements, schemes of arrangement and looks for arbitrage opportunities and discount to

asset plays, along w ith other market events view ed as favourably priced.


Directors: Geoffrey Wilson, Matthew Kidman, Chris Scott, Kate Thorley and John Abernethy.

Capital Structure

Information

3,100

3,600

4,100

4,600

5,100

5,600

6,100

$0.70

$0.80

$0.90

$1.00

$1.10

$1.20

$1.30

$1.40

$1.50

$1.60


WAA ALL�ORDINAR IES

Fin

Mat

Disc

Ind

StapTelco

Cash

IT Hlth

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

$0.50

$1.00

$1.50

2009 2010 2011 2012 2013 2014



NAOS EMERGING OPPORTUNITIES (NCC)Domestic Focussed Share Price and NTA Summary

Mandate: Australian listed equities/ Long/Short Benchmark: S&P/ASX Small Ords Accum as at 30-Sep-14

Manager: NAOS Asset Management Indirect cost ratio wit h p erf . f ee: 4.97% Share price $1.08

Listed: Feb-13 Indirect cost ratio w/ out p erf . f ee: 2.67% Pre-tax NTA $1.25

Post-tax NTA $1.19

Investment Strategy

Pre-tax NTA -13.6%

Post-tax NTA -9.2%



Yield 4.9%

Franking 100%


Key Information


Style: Large/Medium/Small Cap, Balanced/Value/Growth, Passive/Active, Long/Short Ordinary shares 35.3m

Derivatives: used for investment, leverage and hedging purposes. Options/other 35.3m

Cash/Debt: $4.4m cash, $0 debt/hybrid (30 June 2014) Fully diluted 70.7m

Dividend Reinvestment Plan: Yes, 1.0% discount to 4 day VWAP preceeding (and incl.) record date. Market capitalisation 38.2m

Other: n/a

Performance 3-mth 6-mth 1 year 3 yr p.a. 5 yr p.a. 10 yr p.a. NCC share price v ASX All Ords

Share price*

Performance 2.9% 3.6% 5.8% n/a n/a n/a

Benchmark -0.3% 0.2% 5.9% 14.0% 6.7% 8.2%

Active return 3.2% 3.4% -0.1% n/a n/a n/a

NTA+

Performance 3.7% 4.2% 3.1% n/a n/a n/a

Benchmark 1.5% -0.8% -0.1% 1.7% -0.3% 3.6%

Active return 2.2% 5.0% 3.2% n/a n/a n/a


Not disclosed

Risk/Return Indicators Exposure (Top 20)

Sharpe Standard


Year 1 -0.01 0.22 8.8%

Year 3 n/a n/a n/a

Year 5 n/a n/a n/a

NTA+

Year 1 0.36 -0.09 9.5%

Year 3 n/a n/a n/a

Year 5 n/a n/a n/a


incorporate franking. Index returns however are entirely before any operating expenses or taxat ion. LIC returns will consequently be understated relat ive to the Index return.

* The share price benchmark has been compared against the S&P/ASX All Ordinaries Accumulation Index. + The NTA has been compared

against the S&P/ASX Small Ordinaries Accumulation Index.


Investment Personnel: Sebastian Evans (Managing Director), Tom Granger, Jeffrey Kim, Robert Miller.

Directors: David Rickards (Chairman), Warw ick Evans, Sebastian Evans.

NCC invests in Emerging Companies that are listed outside the S&P/ASX 100 Index. The Portfolio w ill

hold a concentrated number of positions, w hich on average w ill be 0-15 positions w hen fully

invested. Many of these Emerging Companies are often overlooked by the Market and therefore

potentially inefficiently priced. The Manager w ill carefully select investment opportunities to create a

Portfolio that seeks to exploit market ineff iciencies and structure a Portfolio w ith a disciplined and risk

controlled approach.

Capital Structure

Information

1,000

2,000

3,000

$0.50

$0.75

$1.00

$1.25

$1.50


NCC ALL ORDINARIE S

Financials

Housing Related

Media & Advertising

Health

Transport & Logistic

Others

Cash

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

$0.50

$0.75

$1.00

$1.25

$1.50

2010 2011 2012 2013 2014



WATERMARK MARKET NEUTRAL (WMK)Domestic Focussed Share Price and NTA Summary

Mandate: Australian listed equities Benchmark: RBA Cash Rate as at 30-Sep-14

Manager: Watermark Funds Management Indirect cost ratio wit h per f . f ee: 4.76% Share price $0.98

Listed: Jul-13 Indirect cost ratio w/ o ut per f . f ee: 1.81% Pre-tax NTA $1.02

Post-tax NTA $1.02

Investment Strategy

Pre-tax NTA -4.4%

Post-tax NTA -4.4%



Yield 2.6%

Franking 100%


Key Information



Derivatives: used for investment, leverage and hedging purposes. Options/other 63.7m

Cash/Debt: $85.4m cash, $0 debt/hybrid (30 Jun. '14) Fully diluted 151.0m

Dividend Reinvestment Plan: Yes, 3% discount to the 5 day VWAP from (and incl.) ex-div date. Market capitalisation 85.1m

Other: aff iliated w ith Australian Leaders Fund (ALF)

Performance 3-mth 6-mth 1 year 3 yr p.a. 5 yr p.a. 10 yr p.a. WMK share price v ASX All Ords

Share price*

Performance -6.7% -4.9% -4.4% n/a n/a n/a

Index -0.3% 0.2% 5.9% 14.0% 6.7% 8.2%

Active return -6.4% -5.1% -10.3% n/a n/a n/a

NTA+

Performance -3.8% -0.5% 2.4% n/a n/a n/a

Benchmark 0.6% 1.3% 2.5% 3.2% 3.7% 4.7%

Active return -4.4% -1.8% -0.1% n/a n/a n/a


as at 30-Jun-14

ANZ

Commonw ealth Bank

Rio Tinto

Origin Energy

Worleyparson

Intueri Education Group

Primary Health Care

Incitec Pivot

Gentrack Group

Risk/Return Indicators Net exposure Tatts Group

Sharpe Standard % of Total Undi sc l ose d


Year 1 -1.23 -0.84 9.9% Gross Portfolio Structure

Year 3 n/a n/a n/a as at 30-Sep-14

Year 5 n/a n/a n/a Listed Securities (long) 110%

NTA+ Listed Securities (short) -102%

Year 1 -0.01 -0.22 6.7% Net exposure 8%

Year 3 n/a n/a n/a Hybrids/Bonds (long) 0%

Year 5 n/a n/a n/a Fixed Interest in Cash 92%

Gross Assets 100%


incorporate f ranking. Index returns however are entirely before any operating expenses or taxation. LIC returns will consequently be understated relat ive to the Index return.


against the RBA Cash Rate.


Investment Personnel: Justin Braitling (Chief Investment Officer), Tom Richardson (Senior Analyst),

Joshua Ross (Analyst), Omkar Joshi (Analyst), Delian Entchev (Analyst). Directors: Matthew Kidman

(Chairman), Justin Braitling, John Abernethy, Rob Ferguson, Stephen van Eyk.

WMK identifies "strong" companies to invest in, or 'long', and "w eaker" companies to sell, or 'short',

w ithout being fully exposed to the volatility and risks of the broader share market. The Manager looks

to prof it from the mispricing of shares by taking advantage of the natural hedge betw een long and

short positions. The longs and shorts are approximately of equal value, w hile investors' capital is

retained in cash earning interest. The performance of WMK w ill be the interest on the cash at bank

plus the dif ference in the performance of the Long and Short portfolios.

Capital Structure

Information

1,000

2,000

3,000

$0.50

$0.75

$1.00

$1.25


WMK ALL ORDINARIE S

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

$0.50

$0.75

$1.00

$1.25

2010 2011 2012 2013 2014


-5% 0% 5% 10%

Util & Telco

Materials

Industrials

Health Care

Other Financials

Real Estate

Banks

Energy

Cons Staples

Cons Disc


MAGELLAN FLAGSHIP FUND (MFF)International Focussed Share Price and NTA Summary

Mandate: International Equities (US focus) Benchmark: MSCI World Index (AUD) as at 30-Sep-14

Manager: Magellan Asset Management Indirect cost ratio wit h p erf . f ee: 1.40% Share price $1.51

Listed: 2006 Indirect cost ratio w/ o ut p erf . f ee: 1.40% Pre-tax NTA $1.62

Post-tax NTA $1.43

Investment Strategy

Pre-tax NTA -6.7%

Post-tax NTA 5.5%



Yield 1.3%

Franking 0%


Key Information




Cash/Debt: $0.1m cash and $31m debt (30 Jun. '14) Fully diluted 461.1m


Other: n/a

Performance 3-mth 6-mth 1 year 3 yr p.a. 5 yr p.a. 10 yr p.a. MFF v MSCI World Index (AUD)

Share price*

Performance 6.3% -1.0% 7.4% 34.3% 22.1% n/a

Benchmark 5.1% 7.7% 17.6% 19.6% 8.8% 3.0%

Active return 1.2% -8.7% -10.2% 14.7% 13.3% n/a

NTA+

Performance 13.4% 11.1% 25.6% 28.7% 19.4% n/a

Benchmark 5.1% 7.7% 17.6% 19.6% 8.8% 3.0%

Active return 8.3% 3.4% 8.0% 9.1% 10.6% n/a


as at 30-Sep-14

Wells Fargo 11.8

Visa 10.6

Home Depot 9.9

Low e's 9.5

Bank of America 9.2

MasterCard 8.7

HCA Holdings 7.9

Lloyds Banking Group 5.8

US Bancorp 5.2

Risk/Return Indicators Exposure (Top 20) Wal-Mart 5.1

Information Sharpe Standard Bank of New York 4.3

Share price* Ratio Ratio Deviation State Street 3.1

Year 1 -0.63 0.22 15.8% Sainsbury J 2.4

Year 3 1.03 2.02 15.1%

Year 5 1.04 1.16 15.3%

NTA+

Year 1 1.14 1.78 12.2%

Year 3 0.97 1.92 13.0%

Year 5 1.11 1.22 12.3%

% of Total 93.5


incorporate f ranking. Index returns however are entirely before any operating expenses or taxation. LIC returns will consequent ly be understated relat ive to the Index return.

* The shareprice bench mark has been compared against the M SCI World price index in AUD. + The NTA has been compared against the

M SCI World price index in AUD.


Investment Personnel: Chris Mackay (MD & Portfolio Manager), Gerald Stack, Dom Giuliano and Nikki

Thomas. Directors: Dick Warburton (Chairman), John Ballard, Andy Hogendijk, Chris Mackay

The primary focus of the portfolio is to invest in large listed international companies assessed to have

attractive business characteristics at a discount to their assessed intrinsic values. The Directors

believe that this w ill generate superior risk adjusted returns over the medium to long term, w hile

minimising the risk of permanent capital loss.

Capital Structure

2,000

2,500

3,000

3,500

4,000

4,500

5,000

5,500

$0.60

$0.80

$1.00

$1.20

$1.40

$1.60

$1.80


MFF M SCI�Wo rld�In de x�AU D

Financials

Industrial

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$1.40

$1.60

$1.80

2008 2009 2010 2011 2012 2013 2014



PLATINUM CAPITAL (PMC)International Focussed Share Price and NTA Summary

Mandate: Absolute Return Benchmark: MSCI All Country World Net Index as at 30-Sep-14

Manager: Platinum Asset Management Indirect cost ratio wit h per f . f ee: 2.30% Share price $1.81


Post-tax NTA $1.51

Investment Strategy

Pre-tax NTA 10.6%

Post-tax NTA 19.8%



Yield 4.4%

Franking 100%


Key Information


Style: Large/Medium/Small Cap,�Balanced/Value/Growth,�Passive/Active,�Long/Short Ordinary shares 232.2m

Derivatives: Yes Options/other 0.0m

Cash/Debt: $21.0m cash, $0.0m debt (30 Jun. '14) Fully diluted 232.2m

Dividend reinvestment plan:Yes, 2.5% discount to 5 day average price post ex-date. Market capitalisation 420.3m

Other: n/a

Performance 3-mth 6-mth 1 year 3 Yr p.a. 5 yr p.a. 10 yr p.a. PMC v MSCI World Index

Share price*

Performance 5.4% 3.6% 22.0% 27.6% 5.4% 3.6%

Benchmark 5.4% 8.9% 18.9% 20.8% 10.3% 5.3%

Active return 0.0% -5.3% 3.1% 6.8% -4.9% -1.7%

NTA+

Performance 2.9% 5.1% 13.5% 18.8% 8.7% 7.0%

Benchmark 5.4% 8.9% 18.9% 20.8% 10.3% 5.3%

Active return -2.5% -3.8% -5.4% -2.0% -1.6% 1.7%


as at 31-Oct-13

Ericsson LM-B 2.6

Intesa Sanpaolo SpA 2.4

Google Inc 2.4

eBay Inc 2.1

Samsung Electronics 2.1

Intel Corp 2.1

Bank of America 2

Micron Technology 2

Sina Corp 1.9

Risk/Return Indicators Regional Exposure (30 Sept. '14) Baker Hughes Inc 1.9

Information Sharpe Standard Casino Guichard Perrachon 1.9

Share price* Ratio Ratio Deviation Carnival Group 1.9

Year 1 0.17 1.26 14.4% Bangkok Bank 1.8

Year 3 0.50 1.61 14.8% Foster Wheeler 1.7

Year 5 0.01 0.06 16.2% Jacobs Engineering 1.7

NTA+ % of Total 30.5

Year 1 -0.87 0.86 11.1%

Year 3 -0.34 1.33 11.4%

Year 5 -0.22 0.41 10.7%


incorporate franking. Index returns however are entirely before any operating expenses or taxation. LIC returns will consequent ly be understated relat ive to the Index return.

* The shareprice bench mark has been compared against the M SCI All Country World Net Index. + The NTA has been compared against

the M SCI All Country World Net Index.


Directors: Bruce Phillips (Chairman), Kerr Neilson (MD), Andrew Clifford, Bruce Coleman, Richard

Morath and Philip How ard.

PMC utilises a bottom-up, stock selection methodology and is focused on absolute returns over

returns relative to any index. Investments may be in global equities (including Australia), perceived by

the Manager as being inappropriately valued by the market. This is combined w ith screening softw are

that allow s the Company to select stocks for further evaluation based on a specif ic criteria. The

Criteria is determined by the Manager’s hypothesis regarding social, political or economic change.

These factors are intended to bring together a portfolio of stocks w ith a below average risk.

Capital Structure

2,0 00

2,5 00

3,0 00

3,5 00

4,0 00

4,5 00

5,0 00

5,5 00

$ 0.70

$ 0.90

$ 1.10

$ 1.30

$ 1.50

$ 1.70

$ 1.90

$ 2.10

O ct- 13 Jan -14 M ay-14 Sep -14

PM C M SCI �World�inde x

-20%

-10%

0%

10%

20%

30%

40%

50%

60%

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014


Asia

Europe

North�America

Japan

Africa

Russia

Australia

Cash

Shorts


TEMPLETON GLOBAL GROWTH FUND (TGG)International Focussed Share Price and NTA Summary

Mandate: Absolute return Benchmark: MSCI World index (AUD) as at 30-Sep-14

Manager: Templeton Global Equity Group Indirect cost ratio wit h perf . f ee: 1.46% Share price $1.38


Post-tax NTA $1.35

Investment Strategy

Pre-tax NTA 0.1%

Post-tax NTA 2.4%



Yield 2.5%

Franking 100%




Derivatives: none. Options/other 0.0m

Cash/Debt: $8.2m cash, $0.0 debt (30 Jun. '14) Fully diluted 199.0m

Dividend reinvestment plan: Yes. 2.5% discount to the 5 day VWAP leading up to rec date. Market capitalisation 274.6m

Other: On-market Buy-back.

Performance 3-mth 6-mth 1 year 3 yr p.a. 5 yr p.a. 10 yr p.a. TGG v MSCI World Index (AUD)

Share price*

Performance 10.1% 8.8% 21.8% 30.4% 13.6% 0.5%

Benchmark 5.5% 8.6% 19.6% 21.9% 11.1% 1.3%

Active return 4.6% 0.2% 2.2% 8.5% 2.5% -0.8%

NTA+

Performance 3.1% 3.1% 13.9% 22.0% 9.1% 4.3%

Benchmark 5.5% 8.6% 19.6% 21.9% 11.1% 5.2%

Active return -2.4% -5.5% -5.7% 0.1% -2.0% -0.9%


as at 30-Jun-14

Samsung Electronics 1.9

Microsoft 1.9

GlaxoSmithKline 1.8

Amgen 1.8

Sanof i 1.8

Roche 1.6

Comcast 1.6

Citigroup 1.5

Pfizer 1.5

Risk/Return Indicators Exposure Suntory 1.4

Sharpe Standard Forest Labs 1.4

Share price* Ratio Ratio Deviation Nissan Motor 1.4

Year 1 0.20 1.21 14.8% Morgan Stanley 1.4

Year 3 0.66 1.61 16.5% HSBC 1.3

Year 5 0.20 0.62 15.7% Nobel Biocare 1.3

NTA+ % of Total 23.6

Year 1 -1.81 1.16 8.6%

Year 3 0.02 1.64 11.2%

Year 5 -0.47 0.41 11.6%




Directors: Tony Killen (chairman), Gregory McGow an, Jennifer Johnson, Martin Warw ick, Michael

O'Brien and Joanne Daw son.

TGG’s investment process endeavours to identify undervalued equity securities through fundamental

company analysis, using a global industry focus and a long-term investment horizon. The investment

approach can be characterised by three underlying tenets: Value, Patience and Bottom-Up Analysis.

The portfolio of investments is unhedged.

Capital Structure

* The shareprice bench mark has been compared against the M SCI All Country World Net Index. + The NTA has been compared against the M SCI All Country World Net Index.

Information

3,000

3,500

4,000

4,500

5,000

5,500

$ 0.60

$ 0.80

$ 1.00

$ 1.20

$ 1.40

$ 1.60

Oct- 13 Jan-14 May-14 Sep-14

TGG MSCI �World�inde x��(AUD )

Cons� Disc

Cons�Stap

Energy

FinancialsHealthcare

IT

Industrials

Materials

Telco

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

$0.50

$0.70

$0.90

$1.10

$1.30

$1.50

$1.70

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014



HUNTER HALL GLOBAL VALUE (HHV)International Focussed Share Price and NTA Summary

Mandate: International Equities Benchmark:MSCI World Return Net Div Reinvested AUD as at 30-Sep-14

Manager: Hunter Hall Investment Management Indirect cost ratio wit h p er f . f ee: 1.77% Share price $1.14

Listed: 2004 Indirect cost ratio w/ o ut p er f . f ee: 1.77% Pre-tax NTA $1.28

Post-tax NTA $1.28

Investment Strategy

Pre-tax NTA -11.4%

Post-tax NTA -11.4%



Yield 5.7%

Franking 14%


Key Information



Derivatives: Only used to hedge against foreign currency exposure. Options/other 0.0m

Cash/Debt: $35m cash, $0m debt (30 Jun. '14) Fully diluted 188.9m


Other: Specialist fund investing in International Equities. On market Buyback in place.

Performance 3-mth 6-mth 1 year 3 yr p.a. 5 yr p.a. 10 yr p.a. HHV v MSCI World Index (AUD)

Share price*

Performance 15.3% 11.6% 27.4% 21.4% 11.2% 5.3%

Benchmark 5.5% 8.9% 19.9% 22.2% 11.1% 5.2%

Active return 9.8% 2.7% 7.5% -0.8% 0.1% 0.1%

NTA+

Performance 11.6% 12.5% 22.1% 15.0% 7.6% 5.6%

Benchmark 5.5% 8.9% 19.9% 22.2% 11.1% 5.2%

Active return 6.1% 3.6% 2.2% -7.2% -3.5% 0.4%



as at 30-Sep-14

Sirtex Medical 19.7

M2 Telecommunications 4.9

Danieli 4.2

Take Tw o Interactive 2.6

JP Morgan 2.6

Bank of New York Mellon 2.4

Prudential Financial 2.4

Alchemia 2.4

Citigroup 2.2

Risk/Return Indicators Exposure (Portfolio) JDS 2.2



Year 1 0.51 2.10 11.2%

Year 3 -0.06 1.44 12.3%

Year 5 0.01 0.54 12.7%

NTA+

Year 1 0.26 2.66 6.8%

Year 3 -0.80 1.03 11.0%

Year 5 -0.40 0.32 10.2%


incorporate franking. Index returns however are ent irely before any operating expenses or taxat ion. LIC returns will consequently be understated relat ive to the Index return.

* The shareprice bench mark has been compared against the M SCI World Acc Net Return ($A). + The NTA has been compared against the

M SCI World Acc Net Return ($A).


Investment Personnel: Peter Hall AM, James McDonald, Dr. Roland Winn, Steven Glass, Jonathan

Rabinovitz. Directors: Philip Clark (Chairman), Julian Constable, Alex Koroknay.

To outperform the MSCI in AUD by 5% pa on a rolling 5-year basis, w hile seeking to avoid significant

risk to principal. HHV is managed using a value investment philosophy based on fundamental

analysis. It primarily invests in companies listed on international stock exchanges, w ith a focus on

under-researched and undiscovered businesses. HHV has a concentrated portfolio of generally no

more than 100 stocks. It can invest up to 100% in international stocks and up to 100% of the foreign

currency exposure may be hedged primarily through short-term forw ard contracts.

Capital Structure

Information

1,000

1,100

1,200

1,300

1,400

1,500

1,600

1,700

1,800

1,900

2,000

$0.60

$0.70

$0.80

$0.90

$1.00

$1.10


HHV MS CI Wor ld Index (AUD)

Industrials

Health�Care

FinancialsCons�Discr

Utilities

Telco

IT

Others

Net�Liquids

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$1.40

$1.60

2006 2007 2008 2009 2010 2011 2012 2013 2014



AMP CAPITAL CHINA GROWTH FUND (AGF)International Focussed Share Price and NTA Summary

Mandate: China A shares Benchmark: S&P/CITIC 300 Total Return ($A) as at 30-Sep-14

Manager: AMP Capital Investors Indirect cost ratio wit h p er f . f ee: 1.97% Share price $0.78


Post-tax NTA $0.99

Investment Strategy

Pre-tax NTA -21.2%

Post-tax NTA -21.2%

Historic Distribution (prior 12-mths)

Personnel Distributions (net) $0.019

Yield 2.5%

Franking 0%


Key Information



Derivatives: May invest in futures contracts. Options/other 0.0m

Cash/Debt: Cash $0.4m, Debt $0.0m (30 Jun. '14) Fully diluted 374.6m

Dividend Reinvestment Plan: Yes Market capitalisation 292.2m

Other: Specialist fund investing in China A shares.

Performance 3-mth 6-mth 1 year 3 yr p.a. 5 yr p.a. 10 yr p.a. AGF share price v S&P/CITIC 300

Share price*

Performance 19.1% 4.0% 1.7% 8.4% -2.1% n/a

Benchmark 25.0% 26.1% 12.5% 6.9% 1.1% 12.3%

Active return -5.9% -22.1% -10.8% 1.5% -3.2% n/a

NTA+

Performance 17.9% 17.9% 2.0% 4.9% -0.8% n/a

Benchmark 25.0% 26.1% 12.5% 6.9% 1.1% 12.3%

Active return -7.1% -8.2% -10.5% -2.0% -1.9% n/a


as at 30-Sep-14

Ping An Insurance Group 4.8

China Vanke Co 4.5

CITIC Securities 4.1

China Merchants Bank 3.5

China Minsheng Banking 3.4

Kw eichow Moutai 3.3

Shanghai Pudong Development 3.0

Haitong Securities 2.6

SAIC Motor 2.4

Risk/Return Indicators Exposure (Portfolio) China CSSC Holdings 2.4

Sharpe Standard Daqin Railw ay Co 2.2

Share price* Ratio Ratio Deviation Ping An Bank Co 2.0

Year 1 -0.73 -0.09 24.6% Byd Co 2.0

Year 3 0.10 0.19 25.0% Poly Real Estate Group 1.9

Year 5 -0.21 -0.27 23.8% Sealand Securities 1.7

NTA+ Industrial Bank Co 1.7

Year 1 -2.00 -0.10 18.9% Siasun Robot & Automation Co 1.7

Year 3 -0.42 0.06 22.1% BesTV New Media Co 1.7

Year 5 -0.30 -0.20 22.7% China Avic Electronics 1.7

China Shipbuilding Industry Co 1.6

% of Total 52.0

*+ M easurement of a LIC’s performance is calculated af ter all operat ing expenses, provision and payment of both income and capital gains tax and the reinvestment of dividends, and do not incorporate

f ranking. Index returns however are entirely before any operating expenses or taxat ion. LIC returns will consequent ly be understated relat ive to the Index return.

* The shareprice bench mark has been compared against the S&P/CITIC 300 Total Return Index ($A) + The NTA benchmark has been

compared against S&P/CITIC 300 Total Return Index ($A)


Investment Personnel: Patrick Ho (Head of Great China Equities) Directors: Stephen Dunne

(Chairman), Margaret Payn and Sharon Davis.

AGF provides investors w ith access to China A shares, w hich are shares in companies listed on the

Shanghai or Shenzhen stock exchanges. AGF’s investment objectives are to achieve long term

capital grow th and to outperform the S&P/CITIC 300 Total Return Index. The fund’s manager utilises

expert investment managers and Chinese brokers to identify suitable investment opportunities. NB:

‘China A’ shares are restricted to domestic Chinese investors, qualif ied foreign institutional investors

w ho have been granted a Qualif ied Foreign Institutional Investors (QFII) Licence and approved foreign

investors.

Capital Structure

Information

300

450

600

$0.50

$0.80

$1.10


AGF S&P /C iti c300

Financials

Industrials

Cons Disc

Materials

IT

Health Care

Cons Stap

Utilities Cash

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

$0.00

$0.50

$1.00

$1.50

$2.00

2008 2009 2010 2011 2012 2013 2014



HASTINGS HIGH YIELD FUND (HHY)International Focussed Share Price and NTA Summary

Mandate: Absolute return Benchmark: 10% absolute return per annum as at 30-Sep-14

Manager: Hastings Funds Management Indirect cost ratio wit h perf f ee: 1.36% Share price $0.17

Listed: 2005 Indirect cost ratio w/ o ut per f f ee: 1.36% Pre-tax NTA $0.23

Post-tax NTA $0.23

Investment Strategy

Pre-tax NTA -28.3%

Post-tax NTA -28.3%


Personnel Dividends (net)" $0.294

Yield 178.1%

Franking 0%


Key Information

Exposure: International/Domestic, Equities/Fixed Income/Derivatives,�Cash Capital Structure


Derivatives: Cross-currency sw aps used for hedging purposes. Options/other 0.0m

Cash/Debt: $9.8m"" cash, $0.0m"" Debt (30 Jun. '14) Fully diluted 103.1m

Dividend reinvestment plan: Suspended Market capitalisation 17.0m

Other: Specialist fund investing in fixed income securities.

Performance 3-mth 6-mth 1 year 3 yr p.a. 5 yr p.a. 10 yr p.a. HHY v MSCI World Index (AUD)

Share price*

Performance 45.6% 43.4% 39.2% 25.4% 16.7% n/a

Benchmark 5.8% 6.5% 14.4% 14.6% 10.6% 6.0%

Active return 39.8% 36.9% 24.8% 10.8% 6.1% n/a

NTA+

Performance 1.7% 1.7% 3.8% 3.0% 1.7% n/a

Benchmark 2.4% 4.9% 10.0% 10.0% 10.0% 10.0%

Active return -0.7% -3.2% -6.2% -7.0% -8.3% n/a


Share Price and NTA Top Investments %

as at 31-Dec-13

Debt Securities

Cory Environmental 29.0

Maher Terminals 43.7

Equity Securities

Hyne & Son 8.1

Cash 19.2

100.0

Risk/Return Indicators Exposure (Portfolio)

Sharpe Standard


Year 1 0.83 1.24 28.6%

Year 3 0.54 1.18 18.4%

Year 5 0.30 0.70 17.7%

NTA+

Year 1 -0.91 -0.01 6.7%

Year 3 -1.51 -0.14 4.6%

Year 5 -1.47 -0.35 5.7%

M easurements of a listed investment company’s performance based on pre-tax asset backing or share price represent af ter tax measures, and are after the payment of company tax on capital gains and

unfranked income. Index returns however are entirely before tax measures. Listed investment company returns will consequently be understated relat ive to the Index return.


Key Personnel: Ross Pritchard (Chief Operating Officer) Directors: Alan Cameron (Chairman), Jim

Evans, and Anthony Masciantonio

Historically HHY has provided investors w ith exposure to high yield securities in the infrastructure and

essential services sectors. The investment strategy had been to target investments in unrated and non-

investment grade high yield securities in businesses w ith significant barriers to entry, strong financial

ratios and a proven track record. Going forw ard, the fund w ill no longer consider further investment,

and w ill return surplus cash to investors as assets are redeemed as part of an orderly run-off and

w ind up of the fund.

* The share price benchmark has been compared against the M SCI Index (AUD). + The NTA has been compared against HHY stated absolute

return for the performance calculat ion and the M SCI Accumulat ion Index (AUD) for the Risk/Return calculat ions.

"Dividend is underpinned by capital returns as assets

mature.

Information

1,000

1,175

1,350

1,525

1,700

1,875

2,050

$0.00

$0.05

$0.10

$0.15

$0.20


HHY M SCI W or ld I nd ex ( AUD)

Industrial

Transport

Waste Mgt

-60%

-50%

-40%

-30%

-20%

-10%

0%

10%

20%

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

2008 2009 2010 2011 2012 2013 2014

Prem/Di sc (RHS) Pre-Tax NT A (LHS) Share Price (LHS)


AURORA ABSOLUTE RETURN FUND (ABW)Domestic Focussed Share Price and NTA Summary

Mandate: Absolute Return Benchmark: Cash Rate as at 30-Sep-14

Manager: Fortitude Capital Indirect cost ratio wit h per f . f ee: 1.23% Share price $1.02

Listed: Mar-11 Indirect cost ratio w/ out perf . f ee: 1.23% Pre-tax NTA $1.02

Post-tax NTA $1.02

Investment Strategy

Pre-tax NTA 0.4%

Post-tax NTA 0.4%



Yield* 6.2%

Franking* 0.0%


Key Information



Derivatives: The manager has the ability to short-sell securities. Options/other 0.0m

Cash (Fixed Income)/Debt: Cash $1.3m, Debt $0.0m (30 Jun. '14) Fully diluted 29.6m


Other: n/a

Performance 3-mth 6-mth 1 year 3 yr p.a. 5 yr p.a. 10 yr p.a. ABW share price v All Ords

Share price*

Performance 1.0% -0.8% 2.2% 4.3% n/a n/a

Benchmark -0.3% 0.2% 5.9% 14.0% 4.7% 2.3%

Active return 1.3% -1.0% -3.7% -9.7% n/a n/a

NTA+

Performance 0.4% -0.8% 2.0% 4.0% n/a n/a

Benchmark -0.3% 0.2% 5.9% 14.0% 4.7% 2.3%

Active return 0.7% -1.0% -3.9% -10.0% n/a n/a

Share Price and NTA

Risk/Return Indicators

Sharpe Standard


Year 1 -0.41 -0.58 3.0%

Year 3 -0.87 0.20 3.0%

Year 5 n/a n/a n/a

NTA+

Year 1 -0.41 -1.05 1.9%

Year 3 -0.91 0.15 1.8%

Year 5 n/a n/a n/a


incorporate franking or the issue of opt ions. Index returns however are ent irely before any operat ing expenses or taxat ion. LIC returns will consequently be understated relat ive to the Index return.

* The shareprice benchmark has been compared against the RBA Cash rate. + The NTA has been compared against the RBA Cash rate.

Premium/(Discount) share price to:ABW has a long track record (unlisted) of providing consistent uncorrelated low volatility returns from

investing in Australian equities. The strategy focuses on capital preservation and generating income

from short term mispricing and arbitrage opportunities w ithin Australian equities. The strategy

achieves absolute returns by applying a mix of different investment strategies that have very little

correlation to equity indices. These investment strategies include M&A, Yield, Long/Short and

Convergence w hich tend to provide consistent annuity like returns through normal market conditions.

The manager has a strong belief that markets can be more volatile and random than expected and

hence combines these annuity like strategies w ith a long volatility options overlay. The long volatility

overlay provides returns w hen markets move strongly either up or dow n. The managers team varies

the fund’s exposure to these strategies in response to market opportunities and risk.

Investment Personnel: John Corr (CIO), Steuart Roe, Sheriden Hure, Binh Le, Andrew Ward, Tom

Gillespie. Directors: Steuart Roe, John Corr, Simon Lindsay, Oliver Morgan (Chairman, MD).

Information

2,000

2,500

3,000

3,500

4,000

4,500

5,000

5,500

6,000

$0.80

$0.90

$1.00

$1.10

$1.20


AB W ALL�ORDINARIES

-10%

0%

10%

$0.90

$1.00

$1.10

$1.20

2012 2013 2014



SANDON CAPITAL INVESTMENTS (SNC)Domestic Focussed Share Price and NTA Summary

Mandate: Australian listed Benchmark: S&P/ASX Small Ords Accum as at 30-Sep-14

Manager: Sandon Capital Indirect cost ratio wit h perf . f ee: 2.94% Share price $0.94

Listed: Dec-13 Indirect cost ratio w/ o ut perf . f ee: 2.94% Pre-tax NTA $0.99

Post-tax NTA $0.99

Investment Strategy

Pre-tax NTA -4.9%

Post-tax NTA -4.7%



Yield 0.0%

Franking n/a

Grossed up yield n/a

Key Information



Derivatives: SNC permited to invest in other types of securities, debt instruments and short sell. Options/other 35.0m

Cash/Debt: $15.95m cash, $0 debt/hybrid (30 Jun. '14) Fully diluted 70.0m


Other: na

Performance 3-mth 6-mth 1 year 3 yr p.a. 5 yr p.a. 10 yr p.a. SNC share price v ASX All Ords

Share price*

Performance 1.6% 1.1% n/a n/a n/a n/a

Index 1.5% -0.8% -0.1% 1.7% -0.3% 3.6%

Active return 0.1% 1.9% n/a n/a n/a n/a

NTA+

Performance 2.6% 3.9% n/a n/a n/a n/a

Benchmark 1.5% -0.8% -0.1% 1.7% -0.3% 3.6%

Active return 1.1% 4.7% n/a n/a n/a n/a


as at 30-Jun-14

Coventry Group 12.8


Armidale Investments 7.9

Bentham IMF Bonds 6.5

Warrnambool Cheese 5.8

Templeton Global Grow th 5.7

RNY Property 5.6

Calliden Group 5.4

Transpacif ic SPS 5.2

Risk/Return Indicators Exposure (Portfolio) Centrepoint Alliance 4.3

Sharpe Standard Crow e Horw ath Australasia 3.9

Share price* Ratio Ratio Deviation David Jones 3.6

Year 1 n/a n/a n/a Clime Capital 3.4

Year 3 n/a n/a n/a Clarius Group 3.3

Year 5 n/a n/a n/a Van Eyk Research 3.3

NTA+ Cotango Microcap 2.9

Year 1 n/a n/a n/a AMP China Grow th 2.5

Year 3 n/a n/a n/a Onthehouse 2.5

Year 5 n/a n/a n/a Acorn Capital Invmt Fund 2.2

Ingenia Communities 1.6

% of Total 96.9


incorporate f ranking. Index returns however are ent irely before any operating expenses or taxation. LIC returns will consequent ly be understated relat ive to the Index return.

* The share price benchmark has been compared against the S&P/ASX Small Ordinaries Accumulat ion Index. + The NTA has been

compared against the S&P/ASX Small Ordinaries Accumulation Index.


Investment Personnel: Gabriel Radzyminski (Managing Director). Directors: Gabriel Radzyminski

(Chairman), Paul Jensen, Matthew Kidman.

The company’s investment philosophy is to build a concentrated portfolio of undervalued securities

w here the manager believes that there are opportunities to encourage change to unlock the

securities’ intrinsic value. SNC w ill aim to deliver an absolute positive return over the medium to long

term w hile preserving capital and providing grow th.

Capital Structure

Information

3,000

5,000

7,000

$0.50

$0.75

$1.00

$1.25


SNC ALL ORDINARIE S

Financials

Industrial

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

$0.00

$0.25

$0.50

$0.75

$1.00

$1.25

$1.50

2011 2012 2013 2014



AFIC Notes (AFIG)

Price:

$114.00

Recommendation:

Buy Risk Rating:

Low

Dividend Details

Cum/ex dividend Cum div

Ex dividend date 16 Feb 15

Dividend payable 2 Mar 15

Dividend amount (net) $3.1164

Franking 0%

Dividend frequency Half Yearly

Cumulative/non cumulative Mandatory Accrued income $0.55

Redemption

Maturity date 28 Feb 17

Redemption value $100.00

Parent share price $5.95

Conversion price (optional) $5.0864

Conversion shares value $116.98

Step-up margin n/a

Estimated option value $13.00

Investment Data Securities on issue 2.22m

Market capitalisation $253.2m

Face value $100.00

Issue terms 6.25% fixed

52 week low/high $113.25/$122.00

Gross running yield 5.48%

Gross yield to maturity 0.42%

Swap rate (2.3 years) 2.81%

Trading margin (YTM-swap) -2.39%

Fair valuation margin 0.65%

Issuer Details Issuer AFIC

ASX code AFI

Franking balance (Jun 2014) $93m

Gearing (Jun 2014) 6%

Fixed Rate Debt Security view

AFIG is a redeemable convertible note issued by Australia’s largest listed

investment company (LIC). This investment is suitable for conservative investors

seeking equity exposure with a conversion option that provides the potential for

investors to participate in market upside if the AFI share price increases above the

$5.0864 conversion price (i.e. 25% premium to the AFI share price at the Dec

2011 issue date). If the AFI share price tracks the performance of the All Ords, a

compound annual return of 4.6% is required for the option to be in the money by

Feb 2017. The rally in the AFI share price to $5.95 has increased our option value

to $13, offsetting the low yield to maturity of 0.42%. Downside risk is limited by

the 6.25% fixed unfranked distribution with redemption in Feb 2017. As gearing is

only 6% post the $222m AFIG raising, AFIG redemption risk is extremely low.

Redemption details

Unless redeemed or converted earlier, AFIG will be redeemed for $100 on 28

February 2017. In addition, holders have a conversion option into AFI shares at

$5.0864 at each half yearly interest payment date.

Parent view

With a history dating back to 1928, AFI is Australia’s largest LIC with a $6.2bn

portfolio spread over 75 ASX200 companies. AFI is an active manager with an

investment philosophy built on taking a medium to longer term view of the quality

of a business. AFIC also operates a trading portfolio of short term opportunities of

up to 10% of total assets where it seeks to enhance returns by selling call and put

options. The scale of the portfolio and management style results in AFI having

one of the lowest annual management expense ratios of any LIC of 0.17% of

AUM. AFI’s investment performance has also been solid, outperforming the S&P/

ASX200 Accumulation on a 3, 5 and 10 year basis.

Security price and running yield

Fixed distributions

116.44 117.58 118.74 119.91 121.11

ExpensiveFairAttractive

$0.00

$1.00

$2.00

$3.00

$4.00

Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Jun-15

Cash

SOURCE: IRESS, BELL POTTER

$95

$100

$105

$110

$115

$120

2%

4%

6%

8%

10%

12%

Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Jun-15

Yield Price

Security Price (RHS)

Gross Running Yield (LHS)

5 Year Swap (LHS)



Whitefield Convertible Resettable Preference Shares (WHFPB)

Price:

$114.60

Recommendation:

Buy Risk Rating:

Low

Fixed Rate Reset Preference Share

Security view

In a low interest rate environment, the 7.00% fully franked coupon fixed until Nov

2018 appears compelling. The investment metrics remain attractive at $114.60

with a gross running yield of 8.73% and a gross yield to maturity of 6.63%. The

operational risk of WHF is low with its conservative investment portfolio typically

exposed to the top 100 ASX listed industrial companies, one third of which is

weighted to the 4 major banks. With no debt, the $40m WHFPB issue represents

13% of WHF’s $317m of net assets at 31 March 2014. This places WHF in a very

strong position to pay preference dividends and fund conversion / redemption.

Conversion details

At the first reset date (30 Nov 2018), if WHF wishes to amend WHFPB terms, it

needs to provide holders with details of the new terms at least 50 business days

prior to the reset date. WHF may also elect to convert or redeem WHFPB at the

reset date. The reset date also provides WHFPB holders the option to elect for

Holder Exchange, where WHF has the option to convert WHFPB into shares, or

redeem for cash. All future reset dates post 2018 will occur at 3 year intervals.

Non payment of scheduled WHFPB dividends provides investors with the right to

request Holder Exchange. Investors may also request Holder Exchange under a

Holder Trigger Event if WHF’s gearing (net debt + prefs / equity) exceeds 35%.

WHF also has a conversion right under a Gearing Event if gearing exceeds 25%.

Parent view

With a history dating back to 1923, WHF is one of Australia’s oldest listed

investment companies. WHF’s investment portfolio at 30 Sep 2014 comprised

$8m of cash and $369m of ASX listed securities across 63 industrial companies.

Security price and running yield

Dividend Details

Cum/ex dividend Cum div

Ex dividend date 24 Nov 14

Dividend payable 12 Dec 14

Dividend amount (net) $3.50

Franking 100%

Dividend frequency Half Yearly

Cumulative/non cumulative Non

Accrued income $2.14

Investment Data

Securities on issue 0.40m

Market capitalisation $45.8m

Face value $100.00

Issue terms 7.0% fully franked

52 week low/high $111.00/$117.00

Gross running yield 8.73%

Gross yield to maturity 7.11%

Swap rate (4.1 years) 3.31%

Trading margin 3.32%

Fair valuation margin 2.40%

Issuer Details

Issuer Whitefield

ASX code WHF

Franking balance (Mar 2014) $17m

Gearing (ND+Pref/E) (Mar 2014) 10%

Conversion

Exchange / reset 30 Nov 18

Conversion discount up to 3.5%

Parent share price $4.22

Conversion shares value $103.63

Step-up margin n/a

Fixed distributions

$95

$100

$105

$110

$115

$120

2%

4%

6%

8%

10%

12%

Aug-12 Nov-12 Feb-13 May-13 Aug-13 Nov-13 Feb-14 May-14 Aug-14 Nov-14 Feb-15 May-15 Aug-15

Yield Price

Security Price (RHS)

Gross Running Yield (LHS)

5 Year Swap (LHS)


$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

Aug-12 Nov-12 Feb-13 May-13 Aug-13 Nov-13 Feb-14 May-14 Aug-14 Nov-14 Feb-15 May-15 Aug-15

Cash


Franking

116.19 118.15 119.14 120.15 122.20

Attractive ExpensiveFair


Appendix A: Glossary of terms Annualised Compound Total Returns: The Annualised Compound Total Return calculates the constant yearly return that would result in the initial value of an investment reaching its present value. Active Management: Investing with the goal of outperforming a benchmark index. Balanced Investing: Investing in securities with neither a preference for Growth or Value investing. Beta: In the context of this report, a Beta is a representation of the tendency of a company’s share price to respond to swings in the Market. A Beta of 1 indicates that a company’s share price will move in line with the Market. A Beta of greater than 1 indicates that a share’s price will be more volatile than the Market. Our Market Proxy is the All Ordinaries Accumulation Index. Dilutive Security: When a company issues additional shares in itself at a price below the current value of existing shares this will have a dilutive effect. Estimated Fully Diluted NTA: Some LICs have additional securities that have the ability to convert to, or create, new ordinary securities in the Company. If a security can be converted to ordinary securities at a price lower than the LIC’s NTA, this will dilute its NTA on a per share basis. Excess Return to Risk Ratio: This ratio, also known as the Sharpe Ratio (see Sharpe Ratio for definition), provides a measure of the return of each portfolio relative to the risk taken by the Investment Manager in achieving that return. A high return is only desirable if it does not come with too much additional risk (volatility of returns - see Standard Deviation). Grossed Up Dividend Yield: Dividends paid plus any franking credits passed on to shareholders. We have focused on this measure to enable valid comparison between LICs whose dividends are franked and those that are not. Growth Investing: Investing in securities with a bias towards higher projected Earnings Per Share growth rates and Return On Equity. Indirect Cost Ratio: The ICR, as defined in the Corporations Act 2001, is the ratio of the Fund’s management costs to average net assets. In layman's terms, it covers all expenditure, excluding transaction and finance costs, in the management of the Fund. This includes management fees, performance fees, marketing, audit, legal, rent, etc. We are using this method of calculation to standardise the cost ratios across our LIC universe, given many different interpretations of the MER calculations by LICs and the inability to confirm the calculation. ICR is generally accepted as the principal expense ratio calculation for the Managed Funds industry. Net Tangible Assets (NTA): Total assets of the Company minus any intangible assets such as goodwill and trademarks, less all liabilities of the Company. This is calculated before any theoretical tax is payable if the entire portfolio was sold. The largest liability of most LICs is the Management Fee, while some LICs also provide for performance fees, should the LIC’s portfolio achieve certain benchmarks. Management fees are generally a reflection of how actively a portfolio is managed as well as its size. Option Adjusted Portfolio Return: A LIC’s calculated portfolio return over a period may be negatively impacted if there are new securities issued during a period. This is because the Manager will not have been able to generate returns off the new funds over the entire period, which will detract from the performance of the overall portfolio. Accordingly, where new securities have been issued in a LIC we will remove the impact of those securities creating an Option Adjusted Portfolio Return. Passive Management: Investing in an attempt to track the return of the underlying benchmark index. Typically a passively managed portfolio has good diversification, low turnover (good for keeping down internal transaction costs), and lower management fees. Premium/Discount to Pre-Tax NTA: While share prices of LICs are generally based around their NTA, the vagaries of supply and demand, as well as the market perception of a company's outlook, mean that a LIC’s share price may move substantially below (discount) or above (premium) its NTA. ��


Appendix A: Glossary of terms (continued) Renounceable Rights Issue: This is an offer by the LIC to shareholders to purchase more shares in the Company. Given these rights are normally issued at a discount they have an inherent value that can be traded on the ASX. Stapled Options: These are options that cannot be traded individually. They are attached to a share or similar security and this combined security must be traded in a ‘bundle’. Total Shareholder Return (TSR): Highlights total increase in the value of $100 invested in a LIC over a given period by a shareholder on the assumption that dividends are reinvested. TSR takes into account grossed up dividends paid as well as share price appreciation and may differ from share price performance in this regard. Value Investing: Investing in securities that appear to be undervalued taking in to consideration certain valuation metrics.


Appendix B: Legend to Performance Measures The following provides an explanation of each item contained within ‘our performance measures’.

Figure - Historical Performance of Pre-Tax NTA and Security Price versus the Benchmark

Performance - The Annualised Compound Total Return calculates the compound yearly return over a period, inclusive of dividends. Dividends are reinvested from the payment date using the most recent historical pre-tax NTA for the NTA performance calculation and the closing price of the security on the prepayment date for the security calculation. Where a LIC has been listed for less than three years each return has been adjusted to reflect the annualised return since its listing. Benchmark - The relevant benchmark has been selected by the Manager. In some instances, the exact Index as selected by a LIC will not be readily available. In such cases, we have determined the most appropriate surrogate index to provide readers with a reasonable guide as to the performance and volatility of that LIC’s benchmark. Active-return - Active Return is the difference between the pre-tax NTA or security price and the underlying benchmark. A positive difference indicates an outperformance versus the benchmark and a negative difference indicates an underperformance relative to the benchmark. Figure - Return and Premium/Discount to pre-tax NTA

Share Price - The light grey line highlights the total increase in the value of $100 invested by that Investment Manager over the time period (assumes dividends reinvested) on a pre-tax basis. Portfolio performance is measured in dollars on the left-hand axis of the Graph. Pre-Tax NTA - The black line provides a total increase in the value of $100 if the investor were able to liquidate the investment at the underlying Pre-Tax NTA over the time period (assumes dividends reinvested). Performance is also referenced to the left-hand axis of the Graph. Premium/Discount to Pre-Tax NTA - The light green columns represent the share price premium/discount relative to month-end pre-tax NTA and is measured as a percentage on the right-hand axis.

Performance 3-mth 6-mth 1 year 3 yr p.a. 5 yr p.a. 10 yr p.a.

Share price*

Performance 3.9% -6.0% -14.7% 5.4% -0.6% 6.9%

Index 1.9% -9.6% -11.4% 8.5% -2.1% 6.3%

Active return 2.0% 3.6% -3.3% -3.1% 1.5% 0.6%

NTA+

Performance 3.4% -7.8% -7.8% 9.0% 0.1% 7.4%

Benchmark 2.1% -9.7% -10.5% 7.6% -2.3% 6.2%

Active return 1.3% 1.9% 2.7% 1.4% 2.4% 1.2%

-30%

-20%

-10%

0%

10%

20%

30%

-$50

$0

$50

$100

$150

$200

$250

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011



Risk/Return Indicators

Information Sharpe Standard Tracking

Share price* Ratio Ratio Deviation Error

Year 1 0.18 -0.02 16.4% 15.0%

Year 3 -0.40 -0.62 33.2% 30.2%

Year 5 0.16 -0.18 32.1% 30.5%

NTA+

Year 1 2.21 0.99 11.4% 3.1%

Year 3 -0.60 -0.56 29.2% 7.2%

Year 5 -0.65 -0.33 25.8% 10.1%

Appendix B: Legend to Performance Measures (continued) Figure 3 - Risk Return Indicators Information Ratio - This Ratio is a measure of the risk adjusted return of the LIC. It is defined as the Active Return divided by the Tracking Error. Active Return is the difference between the return of the security and the return of a selected benchmark index. The Tracking Error is the standard deviation of the Active Return. Sharpe Ratio - This Ratio provides a measure of the return of each LIC’s portfolio relative to the risk taken by the Investment Manager in achieving that return. A high return is only desirable if it does not come with too much additional risk (volatility of returns - see Standard Deviation). A Sharpe Ratio is calculated by subtracting a selected Risk Free Rate (Aust. Govt 10-year Bond yield) from a return, and dividing that by the Standard Deviation of that return. Standard Deviation: This is a measure of the dispersion of a portfolio’s returns around its average return. A data set that has many monthly returns a long way from the average return will have a greater standard deviation than a set of monthly returns that are close to the average. In the context of this report, we calculate the average monthly return of each LIC, as represented by changes in its NTA, and from this we can calculate a standard deviation from its average. Theoretically, a LIC that achieves the exact same return every month would have a standard deviation of zero. Tracking Error: This measures how much the return of a portfolio deviates from the return of its benchmark index. A data set that has a low Tracking Error means that its returns are closely tracking the Portfolio’s benchmark. Tracking Error is the standard deviation of the differences between the return of the portfolio and the return of the benchmark. ��


Appendix C: Disclosures

� WAM Research (WAX): WAX announced an Equity Raising on 28 October 2013. WAM paid a service fee equal to 1.0% (excluding GST) of the Application Monies provided. Bell Potter Securities and its Advisers shared in this Fee.

� Australian Leaders Fund (ALF): ALF announced an Equity Raising on 24 October 2013. ALF paid a service fee equal to 1.25% (excluding GST) of the Application Monies provided. Bell Potter Securities and its Advisers shared in this Fee.

� WAM Capital (WAM): WAM announced an Equity Raising on 14 October 2013. WAM paid a stamping fee equal to 1.0% (excluding GST) of the Application Monies provided. Bell Potter Securities and its Advisers shared in this Fee.

� Watermark Market Neutral Fund (WMK): WMK listed on 18 July 2013. WMK paid a stamping fee equal to 1.0% (excluding GST) of the Application Monies provided with valid Application Forms bearing a Licensee’s stamp to the extent Shares were allotted. Bell Potter Securities and its Advisers shared in this Fee.

� Clime Capital (CAM): CAM announced a Renounceable Right Issue on 13 February 2013. CAM paid a stamping fee equal to 1.0% (excluding GST) of the Application Monies provided with valid Application Forms bearing a Licensee’s stamp to the extent Shares were allotted. Bell Potter Securities and its Advisers shared in this Fee.

� Cadence Capital (CDM): CDM announced an Equity Raising on 14 January 2013. CDM paid a stamping fee equal to 2.0% (excluding GST) of the Application Monies provided with valid Application Forms bearing a Licensee’s stamp to the extent Shares were allotted. Bell Potter Securities and its Advisers shared in this Fee.

� Australian Leaders Fund (ALF): ALF announced an Equity Raising on 19 December 2012. ALF paid a stamping fee equal to 1.0% (excluding GST) of the Application Monies provided with valid Application Forms bearing a Licensee’s stamp to the extent Shares were allotted. Bell Potter Securities and its Advisers shared in this Fee.

� Cadence Capital (CDM): CDM announced an Equity Raising on 20 September 2012. CDM paid a stamping fee equal to 2.0% (excluding GST) of the Application Monies provided with valid Application Forms bearing a Licensee’s stamp to the extent Shares were allotted. Bell Potter Securities and its Advisers shared in this Fee.

� WAM Capital (WAM): WAM announced an Equity Raising on 23 July 2012. WAM paid a stamping fee equal to 1.0% (excluding GST) of the Application Monies provided with valid Application Forms bearing a Licensee’s stamp to the extent Shares were allotted. Bell Potter Securities and its Advisers shared in this Fee.

� PM Capital Global Opportunities Fund (PGF): Bell Potter Securities was a Joint Lead Manager of the PM Capital Global Opportunities Fund IPO on 12 December 2013. PGF paid a service fee equal to 1.25% (excluding GST) of the Application Monies provided with valid Application Forms bearing a Licensee’s stamp to the extent Shares were allotted. Bell Potter Securities and its Advisers shared in this Fee.

� Platinum Capital (PMC): Bell Potter Securities was a Co-Manager of the Platinum Capital Placement in November 2013 and received a fee for the service.

� Watermark Market Neutral Fund (WMK): WMK announced a Placement on 24 March 2014. WMK paid a stamping fee equal to 1.0% (excluding GST) of the Application Monies provided with valid Application Forms bearing a Licensee’s stamp to the extent Shares were allotted. Bell Potter Securities and its Advisers shared in this Fee.

� Clime Capital (CAM): CAM announced a Placement on 20 March 2014. CAM paid a service fee equal to 1.5% (excluding GST) of the Application Monies provided with valid Application Forms bearing a Licensee’s stamp to the extent Shares were allotted. Bell Potter Securities and its Advisers shared in this Fee.

� Future Generation Investment Fund (FGX): FGX paid a service fee equal to 1.82% (excluding GST) of the Application Monies provided with valid Application Forms bearing a Licensee’s stamp to the extent Shares were allotted. Bell Potter Securities and its Advisers shared in this Fee.

� PM Capital Asia (PAF): PAF paid a service fee equal to 1.50% (excluding GST) of the Application Monies provided with valid Application Forms bearing a Licensee’s stamp to the extent Shares were allotted. Bell Potter Securities and its Advisers shared in this Fee.

� Acorn Capital Investment Fund (ACQ): Bell Potter Securities was a Joint Lead Manager of the Acorn Capital Investment Fund IPO on 1 May 2014, but did not receive a Corporate Fee for this Service. ACQ paid a service fee equal to 1.5% (excluding GST) of the Application Monies provided with valid Application Forms bearing a Licensee’s stamp to the extent Shares were allotted. Bell Potter Securities and its Advisers shared in this Fee.

� Global Value Fund (GVF): GVF paid a service fee equal to 2.50% (excluding GST) of the Application Monies provided with valid Application Forms bearing a Licensee’s stamp to the extent Shares were allotted. Bell Potter Securities and its Advisers shared in this Fee.

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