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Holding Asset class Allocation (%)
Westpac Banking Corporation Cap Note 3-Bbsw+3.20% Perp Non-Cum Red T-0 Australian Equities 5.1
Westpac Banking Corporation Cap Note 3-Bbsw+3.40% Perp Non-Cum Red T-0 Australian Equities 5.2
Westpac Banking Corporation Ordinary Fully Paid Australian Equities 1.4
Woodside Energy Group Ltd Ordinary Fully Paid Australian Equities 1.5

Quarterly manager commentary

Market Update
The December quarter saw a strong period for markets locally and globally, providing a positive end to a very tough calendar year where almost
nothing worked outside of cash and private assets (which have yet to be revalued).

The positive quarter in markets was driven by improvements (or no worsening) of risks surrounding central bank policy tightening, inflation, and China
lockdowns, with investors comfortable enough to dip their toes back in the water with plenty of assets showing valuation appeal.

Whilst central banks continued tightening policy in the quarter by raising rates and shrinking their balance sheets, many did slow the pace of
tightening in addition to comments that seemed to indicate that they had done most of the heavy lifting.

That was somewhat confirmed by inflation data in the US abating whilst leading economic indicators continued to weaken, resulting in rising
recessionary concerns for 2023. Housing markets locally and globally capitulated, with data worsening, whilst consumption and labour markets
remained way too strong for any sort of central bank pivot, Investors can only hope.

President Xi of China was re-appointed, now as their “leader for life”, delivering a speech that the West interpreted as being hostile to non-China
interests. Not long after that event, China swiftly moved meaningfully to a COVID reopening plan with restrictions easing over the quarter, finally giving
investors comfort that this reopening would be sustained. This put a rocket under Chinese assets, and Asian and emerging market assets more
broadly, which had been under significant pressure for the better part two years as China lockdowns persisted.

There was no major new or positive news out of Russia / Ukraine with fighting continuing. Further agreements were made to let more agricultural
products out through the Black Sea thus assisting global supply constraints whilst the European proposed price caps on Russian oil were adopted by
the G7 countries.

Lastly, new leaders came to power in the UK and Brazil, with the UK debacle one for the history books whilst Brazil moved back to the Left. In the US,
the Republicans won the balance of power in the House, largely as expected, giving President Biden a much harder path from which to lead.

Portfolio update
Portfolio returns for the December quarter were positive and would have been stronger had it not been for the month of December where negative
investor sentiment returned. The Portfolio outperformed the benchmark as Australian equities significantly outperformed global equities, Australian
listed property rebounded very strongly, and the hybrid portfolio outperformed the broader bond market.

On the asset allocation side, our large weighting to Australian equities contributed to returns boosted by a rising Australian dollar which also assisted
other parts of the portfolio. The allocation to Australian listed property contributed to returns strongly as the asset class rebounded sharply to cap off
a tough year for the asset class. Hybrid securities outperformed both cash and bonds, boosting returns on the defensive side of the portfolio.

On the investment selection side, relative returns were hurt by investment selection within Australian equities as utilities and materials sectors rallied
strongly, whilst investment selection within global equities and hybrid securities assisted returns, particularly within the latter.

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

Top 3:
Rio Tinto
Suncorp Group
BHP Group
Bottom 3:
Magellan Financial Group
Downer EDI
Ventia Services Group
Portfolio Changes
During the quarter, CBA PERLS VII was called (or matured), with the proceeds used to purchase a new hybrid security in CBA PERLS XIII. The addition of
this security increased both the yield and maturity of the hybrid portfolio.

There were no others changes to the portfolio during the quarter.