Page 3 - SMA changes rationale_Professional Moderate

price and gold mining companies, the latter which trades a significant discount to both the gold price
and long-term historical differences.

Lynas Rare Earths (LYC) – Bought – the company explores, develops, mines, and processes rare earth
minerals which are used in an ever-widening source of applications. The company’s main asset is in
WA whilst processing is largely done offshore. Outside of China, Lynas is one of the largest miners and
processes of rare earths in the world. Current applications for rare earths include industrial processes,
glass manufacturing, automotive emission control, energy storage, electronics, lighting, and medical.
The stock is trading cheaply versus our assessed valuation.

Flinders Emerging Companies – Sold – whilst our conviction here remains for now, the reduction in
growth assets in favour of defensive assets, has pushed the allocation to this fund below levels we
would consider material enough to retain in this portfolio.

Resolution Capital Global Property Securities – Switched – as noted above on currency, we have
switched from the unhedged currency option here to the currency hedged option, maintaining our
conviction in Resolution Capital’s long-standing approach and highly experienced team.
MFG Core Infrastructure – Sold – whilst our conviction remains here, we favour a high conviction and
deeply fundamental approach in this asset class going forward given the market and economic
backdrop. MFG largely uses a quantitative approach with a highly diversified portfolio.

ATLAS Infrastructure Australian Feeder Fund Hedged – Bought – our conviction here is one of the
highest in the peer group. We like the concentrated, high conviction, index agnostic approach here
from one of the largest investment teams in the peer group. The strong risk focus provides a counter-
balance to the highly concentrated portfolio, whilst the team can and does benefit from insights from
its parent which is a large direct infrastructure investor/adviser.

Franklin Australian Absolute Return Bond – Sold – our conviction here remains, but we prefer a
dedicated focused approach to attractively priced Australian credit securities in the forward period
whilst also preferring that interest rate exposure (ie. duration) be obtained in the portfolio via
specialist managers (eg. Western, Brandywine) given the continued heightened volatility in this part
of the market.

Yarra Enhanced Income – Bought – our conviction here is high and this is currently our preferred
manager in the Australian credit peer group. We like the large and highly experienced team here
along with the very strong support provided by their macroeconomic function and their use of other
investment teams internally. We also like the in-depth fundamentally driven credit research and the
consistent levels of income.

Realm Short Term Income – Bought – this is our best pick in the enhanced cash / short-term bond
peer group and has been included in the portfolio as part of the increase in defensive assets discussed
above. Their highly experienced team uses a risk-first approach to investing along with highly active
trading in seeking to deliver strong risk adjusted returns. The fund aims to deliver an after fee return
of 1.5-2% per annum over the RBA cash rate over a rolling three-year period.

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Advisory Services Pty Ltd (ABN 30 008 587 595) AFSL #234656. This document contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to
consider your financial situation and needs before making any decisions based on this information.