Page 1 - SMA changes rationale_Specialist Growth (Assertive)

SMA Portfolio Change

Specialist Growth SMA (Assertive)

Corporate Action – Purchasing Additional Shares in NEXTDC (NXT)

As at 29 April 2024

Our Specialist Growth (Assertive) SMA currently holds shares in NEXTDC (NXT). The company
has recently announced a capital raise for further expansion.

Our view:

This raise comes just short of 12 months since NXT’s last capital raising for an expansion. The
stock price has risen significantly since then, and this capital raise is double the size of last
years. NXT is seeing already strong demand for their services increasing at a rapid rate and
need capital in order to grow into this demand pipeline.

The rapid growth of A.I. processing and development has resulted in a very large demand spike
for data centres and has rapidly accelerated growth in total market size. Historically data centre
demand was driven by data moving to the cloud and digitisation, but A.I. has added further
tailwinds. This expansion will allow NXT to help meet their increasing contract demands, as
well as support their future development pipeline. We view this as yet another positive update
for the business. Management also reaffirmed their existing guidance as part of the
announcement.

The raise also comes at a good time for NXT given the strong share price performance. This is
a good indication of strong capital allocation skills within the management team. NXT has built
a supportive institutional investor base, which is proven by the strong support for the
institutional component of the capital raise which was 99% subscribed.

Investors who choose not to take up the offer will see significant dilution as a result of the large
raise. The Offer Price represents a 6.8% discount to the share price prior to announcement of
the offer, providing an attractive entry point without brokerage.

Action: Participate in Capital Raise

Given our conviction in NXT, our positive view on the expansion, and the discount on offer, we
will be participating in the capital raise via funds currently sitting in cash within the SMA,

therefore increasing our existing exposure to NXT.

Eligible investors are entitled to 1 share per 6 shares owned at a price of $15.40 per new NXT

share.