Page 1 - SMA changes rationale. Specialist Income Assertive
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SMA Portfolio



               Change Rationale







               Specialist Income Assertive




               As at 31 August 2023



               Below is a summary of the recent change to the portfolios:

               Following a review of your Specialist Income Assertive portfolio (85% growth assets), we have
               reconfirmed our conviction in the current weights of each investment (i.e., allocation to each
               investment).

               Our review identified the need to make a change to one of the direct stocks currently in the portfolio.
               Details below.


               Sold Magellan Financial Group (MFG)

               Magellan Financial Group (MFG) is a funds management business based in Sydney, offering
               investment funds across global equities, infrastructure, and Australian equities. We have had MFG
               under review for some time, but we had retained the holding as we expected significant dividend
               distributions to be paid over the course of this year. The stock is now up almost 8% year -to-date and
               has paid three large dividends in the last 9 months including a recent $0.30 special dividend.

               We expect that Magellan’s Funds Under Management is likely to stabilise at current levels, however
               from here growth will be hard to achieve and is highly uncertain. The lack of growth will also weigh on
               dividends going forward, and we expect that dividends are likely to fall from currently high levels.

               Given our rationale for retaining the stock has now been realised, and our weakening outlook for
               MFG, we see better opportunities for both capital growth and above-market dividend yield elsewhere.
               We have sold MFG to reallocate to a better opportunity.


               Purchased APA Group (APA) and increased cash allocation

               MFG was held above our target weight, but we have purchased our replacement APA at our target
               weight. The excess cash you received from selling MFG has been retained in your SMA cash account.

               APA Group (APA), formerly Australian Pipeline Trust, owns an unparalleled network of gas transmission
               and distribution infrastructure across Australia. APA operates over 15,000km of natural gas pipelines,
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