Page 2 - Best of Breed Assertive_March 2023

Performance history

$100,000 invested since 24/03/2022
$110000

$100000

Mar 22 Sep 22 Mar 23
24/03/2022 - 31/03/2023 Powered by data from FE fundinfo
Portfolio
Benchmark
Managed portfolio holdings³

Holding Asset class Allocation (%)
AB Global Equities Fund International Equities 9.0
Bell Global Emerging Companies Fund - Class B International Equities 7.0
Bennelong Twenty20 Aust Share Australian Equities 8.0
Cash Account Cash 2.0
Flinders Emerging Companies Fund - Class A Australian Equities 7.0
Franklin Australian Absolute Return Bond Fund - I Class International Fixed Interest 3.0
GQG Partners Global Equity Fund - Z Class International Equities 9.0
Legg Mason Brandywine Global Income Optimiser Fund Class B International Fixed Interest 3.0
Legg Mason Western Asset Australian Bond Fund - Class M Australian Fixed Interest 4.0
Martin Currie Emerging Markets Fund - Class M International Equities 8.0
MFG Core Infrastructure Fund International Equities 8.0
Resolution Capital Global Property Securities Fund (Unhedged) Class M Property 5.0
Solaris Core Australian Equity Fund (Performance Alignment) Australian Equities 7.0
T.Rowe Price Global Equity - M Class International Equities 10.0
Western Asset Global Bond Fund – Class M International Fixed Interest 3.0
Yarra Emerging Leaders Fund - Class A Australian Equities 7.0

Quarterly manager commentary

Market Update
The March quarter was largely a positive one for investment markets, but it felt like we went through ten rounds in the ring to get there.

It was a tale of three completely different months with wild swings in investor sentiment and expectations the driving force of investment markets.

January started off with a bang, in stark contrast to December returns, with investors feeding on any positive news they could get their hands on. This
included but wasn’t limited to: European energy crisis averted (a milder winter and the US provider support via their strategic petroleum reserves); US
company quarterly reporting season came through better than expected (though weaker than the same time last year); China reopening, which began
in November, continued supporting outlook for global supply chains and Chinese demand; and the changing interest rate dynamic (flipped to dovish)
as the US central bank shifted to smaller rate hike increments (ie. 0.75% to 0.50% in December 2022 and 0.5% to 0.25% in February). That resulted in
equities and property powering ahead (ie. monthly gains more akin to annual returns) and bonds producing one of their best months in over a year. It
all seemed too much too soon, but no one was complaining after a year like 2022.

That positive sentiment spilled into the early part of February but was short-lived as concerns arose regarding the pace and evenness of China
reopening in the absence of reasonable to significant government / central bank stimulus and western central bank rhetoric turned more hawkish as
they moved to put a lid on animal spirits by reminding investors that they still have a long way to go bring inflation under control. That hawkish tone
sent investor sentiment packing as expectations of a “soft landing” or a central bank pause very quickly disappeared and not helped by opportunistic
profit taking following an unusually strong January.

That negative sentiment carried into March until we saw US banks come under pressure as a crisis of confidence hit Silicon Valley Bank and a few
others, either linked to the technology / crypto sector or smaller regional banks. Interestingly, this wasn’t GFC mark II given bad debts remain incredibly
low and banks generally well capitalised. It was a function of a sector under pressure (ie. technology sector) as the irrational exuberance of the Covid
period washed out, a concentrated relatively affluent, customer based, and terrible treasury management by the banks themselves. US regulators