Page 4 - Private Wealth Specialist Growth Moderate PDF Factsheet

Individual asset classes were affected by rising bond yields and/or a rising US dollar (falling Australian dollar). Australian equities and currency hedged
global equities both fell in the period as investors pared back expectations for US rate cuts in 2025 which could weaken the economic backdrop and
put lofty earnings expectations at risk. The currency moves were so severe that global equities unhedged saw exceptionally strong returns for the
quarter whilst emerging markets were also boosted by the surge in Chinese equities early in the period. Australian listed property fell sharply in
contrast to unhedged global listed property and infrastructure which had a healthy quarter, with infrastructure the pick over property.

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

Top 3:

iShares Core S&P 500 ETF

iShares Global 100 ETF

Transurban Group

Bottom 3:

Ventia Services Group

BHP Group Limited

Metcash Limited

Portfolio changes during the quarter:
There were three changes to the portfolio in the period as previously communicated.

The Ardea Real Outcome ETF was sold following a period of review where we lost some conviction in the strategy. The Franklin Australian Absolute
Return Bond ETF was purchased with the proceeds, a strategy where we’ve had long held conviction in both process and team. Both strategies have
rather unconstrained approaches, but differ in the process and instruments used with Ardea investing in government bonds solely whilst Franklin
predominantly holds corporate debt.

A review of the Australian direct stocks held in the portfolio resulted in two changes. GQG Partners Inc and TPG Telecom Ltd were sold, and Worley Ltd
and Idp Education Ltd were purchased. We lost conviction in TPG, and some patience, seeking better growth opportunities elsewhere. GQG traded
well above our valuation target and whilst business risks rose given the growth and size of their funds under management. Worley and Idp Education
were stocks we’d been monitoring for some time and saw attractive entry points for potential capital upside given share price weakness over the last
6-12 months.

Market Outlook
The consensus outlook remains rather positive for now, with recession averted in 2024 and renewed optimism regarding a potential US economic
renaissance. However, investors will need to deal with the implications of tariffs, particularly any inflationary effects, and a gargantuan US government
debt position, a significant part of which needs refinancing in 2025 whilst another US$2 trillion is added to the pile this year!

With less rate cuts on the table in 2025 than previously expected, company earnings will be closely watched as lofty valuations create increasing room
for disappointment. Whilst all-in yields on bonds remain very attractive, the absence of significant rate cuts will mean less impetus for capital gains with
the likelihood of heightened bond volatility remaining.

Unassailable US dollar strength remains problematic, particularly for emerging markets where valuations remain somewhat supportive, whilst the
macro outlook for Europe looks increasingly dire and investors eagerly await action on Chinese stimulus announcements.

Considering this, we remain cautious and well diversified in our approach for now. But also stand ready to take advantage of market mispricings as
they arise.