Page 3 - Private Wealth Best of Breed Moderate

China growth continued to disappoint with weak export data, elevated levels of youth unemployment, soft manufacturing data, with consumers and
domestic investors remaining overly cautious. Foreign investors grew more impatient with the China reopening efforts, wanting to see significantly
more stimulus from Chinese authorities with only minor stimulus provided in the quarter.

Europe remained under pressure from a cost-of-living perspective as energy and food costs remained high given the ongoing impacts of the Russia/
Ukraine conflict and central banks obliged on the inflation fighting front with more rate rises. China’s slow reopening also heavily impacted Europe
given demand and export/import headwinds.

Japan performed well in the quarter with the country finally having what looks to be a more sustainable inflation and economic growth outlook.

Closer to home, we saw a surprise Federal Budget surplus, higher than expected increase in award and minimum wages, and Australian residential
property prices moving higher yet again as “fear of missing out” crept back in following the RBA’s April rate pause and the misguided talk early in the
quarter that the rate hiking cycle may be done.

Geopolitical risks rose as China and the West continued with trade and economic sanctions / restrictions whilst Taiwan, semiconductors (chips), and
military exercises in the South China sea risked further escalation in tensions. The Russia / Ukraine conflict continued with still no end in sight, whilst
social unrest in France worsened with violent street protests.

US equities were the highlight in the quarter, as technology stocks performed exceptionally well with a very narrow seven stocks doing all the heavy
lifting. This came after US March quarter company reporting season was better than expected and US headline inflation fell faster than expected
providing a boost that the US central bank may be close done on the rate hiking front. In contrast, bonds struggled in the quarter as yields rose
strongly (prices fell) with investors turning their attention to a “higher for longer” mantra on rates.

Portfolio update
The Portfolio return for the June quarter was strong in the absolute sense, but the return fell a little short of the benchmark given the very narrow rally
from a handful of US technology names and bonds coming under pressure again as yields rose strongly (prices down).

Drivers of positive relative performance included our allocation to and selection within Australian mid-sized companies and our positioning and
investment selection within bonds. In contrast, drivers of negative relative performance included positioning and investment selection within global
equities and property & infrastructure.

On the asset allocation side, our overweight to global equities versus Australian equities assisted returns whilst our positioning to global mid-sized
companies and emerging markets detracted as a handful of US stocks pulled US large companies ahead. Our overweight to infrastructure relative to
property also detracted as property outperformed infrastructure for the first time in a while, assisted by falling US inflation and investors finding some
value in property following a tough 12-18 months. Our overweight to bonds versus cash also detracted from returns as bond yields rose (prices fell)
whilst cash rates continued to increase. However, our positioning to lower interest rate duration did provide some downside protection in bonds.

On the investment selection side, global equities detracted the most from relative returns in the absence of a significant overweight to US equities and
technology stocks. Pleasingly, a stellar return from GQG provided a buffer from the weaker relative returns from AB, Bell, and Martin Currie, though
Martin Currie did provide outperformance versus the emerging market benchmark. Both global listed property and listed infrastructure managers
underperformed their respective benchmarks adding to the asset class underperformance. Our longer interest rate duration managers
underperformed their benchmarks whilst lower duration managers provided some outperformance.

On an absolute basis, the best and worst performing investments were as follows:

Top 3:
1. GQG Partners Global Equity
2. T. Rowe Price Global Equity
3. AB Global Equities
Bottom 3:

1. Western Asset Australian Bond
2. MFG Core Infrastructure Fund
3. Western Asset Global Bond

Portfolio Changes
There were no changes to the portfolio during the June quarter as we remained comfortable with positioning and selection in the forward period.

Market Outlook
Whilst we remain cautious on the short-term outlook given central bank action clearly aimed at crushing excess demand, we remain constructive on
the medium-term outlook as higher interest rates punishes speculative behaviour whilst rewarding patient, selective, and valuation-focused behaviour.
Tougher economic backdrops do bring about both risks and opportunities, with the latter usually playing out through the demise of weaker companies
and strengthening of quality companies.