Select Growth Portfolio - Current Portfolio Holdings as at 30 September 2014

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1 Select Growth Portfolio - Current Portfolio Holdings as at 30 September 2014 ASSET CLASS Examples of Managers Select Growth Portfolio Cash n/a 6.7% Australian Fixed Interest Ardea 3.5% International Fixed Interest n/a 0.6% Credit CQS, Kapstream 2.5% Total - Cash & Fixed Interest 13.3% Australian Property SG Hiscock, Phoenix 0.9% International Property n/a 0.0% Infrastructure Infrastructure Capital 5.7% Agribusiness Macquarie, FourWinds 4.5% Total - Property & Infrastructure 11.1% Australian Equities Allan Gray, Denning Pryce, Perpetual, Acorn 8.5% International Equities Ellerston, Platinum, Wingate, First State 9.8% Global Resources Lion Selection, Bell Asset 1.6% Global Gold Equities Baker Steel, GDX, GDXJ 14.9% Private Equity Direct Holdings 2.8% Regional Specialists AMP, J O Hambro, Platinum, ishares 12.0% Sector Specialists 1.7% Total Equities 51.3% Hedge Funds 36 South, Bennelong 3.5% Diversified Hedge Funds AQR 2.9% Managed Futures Aspect, AQR 5.3% Commodities Gold, Merricks 4.0% Other Alternatives 0.0% Total Alternatives 15.7% NET EXPOSURE TOTAL^ 91.4% ^ The total exposure may not sum to 100% due to any direct derivative investments (such as options and futures). P: F: E: info@selectfunds.com.au selectip.com.au Page 1

2 Key Managers by Sector Cash & Fixed Interest Ardea Australian Inflation Linked Bond Fund Ardea is a boutique Australian Inflation Linked Bond (ILB) Manager investing in Government and Semi- Government ILB s. They are a longer term, fundamentally driven, value investor with a focus on liquidity and diversification. We expect inflation to surprise on the upside over the next few years and so favour inflation linked bonds over nominal bonds. CQS Multi Asset Credit Fund CQS are a London based hedge fund manager founded in 1999 by Australian Michael Hintze. CQS have 250 staff globally and manage US$11 billion, mostly in credit related strategies. The Multi-Asset Credit Fund is a long only fund with a broad mandate to invest globally in credit securities. Initially the fund will focus on acquiring assets from motivated sellers in Europe. Kapstream Absolute Return Income Fund The fund invests in a portfolio of short term investment grade credit with an overlay of absolute return strategies to take advantage of the manager s macro views. The manager has the flexibility to invest across a wide range of assets and strategies and has performed well over its short history in a market where many of its peers have struggled to protect capital. Property & Infrastructure SG Hiscock Property Income Fund The Fund invests in Australian listed property securities and aims to provide a more balanced exposure to Australian REITS than mainstream funds which tend to be dominated by the large cap stocks such as Westfield. The manager has a long track record of investing in property securities and we believe that a diversified portfolio of well selected property trusts can offer particularly attractive returns over the next few years. Cromwell Phoenix Property Securities Fund This Fund invests in a concentrated Portfolio of Australian Listed Property Trusts (AREITS). We believe that AREITS offer outstanding absolute returns, and that the experience of this manager coupled with their flexible benchmark unaware approach should deliver solid long term results. Infrastructure Capital Group (ICG) ICG manages two unlisted infrastructure funds. The Energy Infrastructure Trust (EIT) owns a diversified range of power generating (steam, gas, wind and coal) assets, gas pipelines and energy-related port infrastructure across Australia. The Diversified Infrastructure Trust has a holding in EIT, a 100% stake in the Stadium Australia Group (ANZ Stadium in Sydney), port infrastructure assets and a terrestrial fibre optic cable project in Western Australia. The manager s strength has been their sourcing of attractive, well-priced (typically not subject to market tender process) and lowly geared infrastructure assets. Macquarie Pastoral Fund This fund invests in pastoral land in selected regions of Australia, primarily focused on the production of sheep and cattle for the domestic and export markets. The manager has assembled a portfolio of high quality properties which benefit from economies of scale and have the potential for improvements in efficiency through targeted capital investment and corporatised management. Phaunos Timber Fund The Phaunos Timber Fund is a London listed global timber which provides geographic diversity along with diversification of maturity. The listed stricture provides liquidity and is run by an experienced team at FourWinds Capital Management with solid return objectives for a defensive asset class. P: F: E: info@selectfunds.com.au selectip.com.au Page 2

3 Equities Allan Gray Australia Equity Fund The Allan Gray Australia Equity Fund invests in Australian equities using a long term, fundamental and contrarian approach, which appeals to our investment values. Philosophically, Allan Gray believe the market is not always efficient or rational and that investors place too much emphasis on the latest short-term news, overlooking the long-term fundamental prospects of a business. This enables them to purchase companies very cheaply. They are benchmark unaware and can invest across the full market cap spectrum. Lazard Select Australian Equity Fund Lazard are an active value manager investing in a concentrated portfolio (25 45 holdings) of companies from the ASX 200 Index they believe are underpriced, with the aim to beat the index by 3% over rolling 3 year periods. Their primary stock-selection screen identifies companies that are trading at discounts relative to their assessment of intrinsic value, using fundamental analysis. The team has many years of experience investing in this strategy and we are attracted to their disciplined analytical approach to value stock picking and committed sector bets. Denning Pryce Equity Income Fund Denning Pryce are a Sydney based manager who specialise in strategies combining listed equities with options. Their Equity Income Fund aims to deliver a 10% p.a. income distribution from a combination of dividends and option premium, with half the volatility of the equity market. We believe that returns for equities over the next few years are likely to be subdued, and that an income focused strategy is likely to be relatively more successful. Perpetual SHARE-PLUS Long-Short Fund The fund invests in large capitalisation Australian equities, using fundamental bottom up stock picking to identify candidates for the long and short portfolios. We believe the Portfolio Manager will deliver outperformance over the medium term in what we expect to be range-bound markets. Acorn Capital Microcap Trust Acorn Capital is a specialist investment manager focused solely on the microcap sector of the Australian share market. The pricing of microcap companies is relatively inefficient, providing the opportunity for excess returns. Acorn makes investment decisions based on relative value against a peer group with in-depth fundamental research both at the sector and company level. We believe they have a strong investment edge, being one of Australia s few microcap specialists. Platinum International, Platinum Japan, Platinum European, Platinum Capital Platinum is an international equity manager, targeting out-of-favour stocks. The manager is absolute-return focused and utilises short-selling and cash to manage volatility. We believe that global equity markets will remain choppy over the next few years and that Platinum will be able to benefit from these range bound markets by opportunistically buying and shorting stocks and indices. Wingate Global Equity Income Fund Wingate is a high conviction international equity manager that focuses on large, high quality companies from around the globe. The manager is absolute-return focused, and aims to deliver strong returns over the medium to long-term by investing in quality companies with an income bias, complemented by the use of options. We believe that global equity markets will remain volatile over the short to medium term and that this manager should benefit from such range bound markets. CFS Emerging Markets Fund The Fund invests in emerging market equities and is managed by First State who is considered best of breed. The manager employs extensive research and a fundamental bottom up stock picking approach to identify growth companies that are reasonably valued with strong brand franchises. First State prefers companies with conservative balance sheets and strong corporate governance and in doing so have outperformed the MSCI Emerging Markets Index. P: F: E: info@selectfunds.com.au selectip.com.au Page 3

4 Ellerston Global Equity Managers Fund The Managers invests in Global Equities, and utilises fundamental bottom-up stock picking with a top-down macro view. The Manager is absolute return focused and allocates capital opportunistically around the world. The fund has protected capital well in the current bear market, and the Manager s long term track record is exceptional. Lion Selection Group LST is a mining investment company with a strong gold focus. The management team have proven in the past to be focused on investor s long term best interests. Lion has progressed from a listed investment company to an early stage strategic investor with a diversified investment portfolio ranging from junior explorers through to producing miners; in companies with projects in Australia, Africa and South East Asia. Global Mining Investments Trust The Fund is managed by Bell Asset Management and provides exposure to a globally diversified portfolio of large cap companies in the mining, energy and agricultural sectors. The manager is style neutral and whilst their valuations are similar to the benchmark the qualitative characteristics of the portfolio are far superior. Baker Steel Gold Fund The Fund has a long only precious metal equity strategy managed by London-Sydney based Baker Steel. The aim is to provide exposure to an out of favour sector which typically does not move in line with mainstream assets. It invests principally in equities of gold and precious metal companies globally, but with an ability to have up to 50% of net asset value invested in gold and precious metal bullion and futures. Market Vectors Gold Miners ETF (GDX) and Market Vectors Junior Gold Miners ETF (GDXJ) GDX and GDXJ are US ETF's which seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the NYSE Arca Gold Miners Index and the Market Vectors Junior Gold Miners Index respectively. They provide a diversified exposure to publicly traded companies worldwide involved primarily in the mining for gold. JO Hambro Asia ex-japan Fund This fund provides exposure to Asia with a concentrated benchmark unaware approach, focusing on quality Asian companies. The manager is experienced, and has managed both long only and long/short strategies over the last 13 years. JO Hambro is owned by the ASX listed BT Investment Management. AMP China Growth Fund AMP has one of the only QFII licensed in Australia. The Fund aims to provide long term capital growth to the China A share market; which are shares in companies listed on China s Shanghai or Shenzhen stock exchanges. The listed structure currently trades at a discount to NAV allowing the Portfolios to have the potential for additional returns through its exposure to one of the cheapest markets in the world. ishares MSCI Japan ETF The ETF seeks to provide investment results that correspond to the price and yield performance of publicly traded securities in the Japanese market, as measured by the MSCI Japan Index. Alternatives 36 South Cullinan Fund Cullinan is a global fund focussed on an inflation surprise thematic. The strategy is implemented by purchasing long-dated out of the money put options (and to a lesser extent writing covered options) across a diversified range of markets, where the manager sees value in terms of potential upside / performance in an inflationary environment. The Fund aims to deliver multiples of CPI if current global government stimulus leads to a breakout of inflation in the future, and is held as a means of gaining low cost portfolio insurance against this outcome. P: F: E: info@selectfunds.com.au selectip.com.au Page 4

5 36 South Kohinoor Core Fund The Fund is a global macro fund with returns predicated on the managers ability to identify attractive pricing in options markets based on technical factors, sentiment, volatility and fundamentals. Kohinoor offers the potential for lowly-correlated returns from volatility and inflation sources as well as the identification of mis-priced options across a range of markets. Bennelong Long Short Australian Equities Fund The fund invests in large capitalisation Australian equities, using fundamental bottom up stock picking to identify candidates for the long and short portfolios. We believe that the manager s approach is particularly suited to an environment where equity markets are subdued and there is a wide divergence of individual stock returns. AQR DELTA Fund The fund operates a hedge fund beta strategy which is diversified and market neutral in its own right and has exposure to nine underlying strategies. The fund aims to capture the risk and return streams from traditional hedge fund strategies focusing on liquidity, risk management, transparency and appropriate leverage and without the double-layer of fees paid otherwise through a fund of hedge funds. CFS Aspect Diversified Fund Aspect Capital is a systematic trading manager. Its focus is on trend-following strategies, implemented across a wide range of liquid of futures markets, within a risk controlled environment. The manager aims to capitalise on medium term trends in equity, fixed income, currency and commodity markets. The manager has generated lowly correlated returns and tends to perform well in periods of market stress. Merricks Soft Commodities Fund The objective of the Fund is to find outstanding investment opportunities in the Soft Commodities sector and to also take advantage of mispricing between commodities. All investments are based on bottom up fundamental research and the Fund limits directional exposure of its investments through a strict process of portfolio construction and risk management. Gold Bullion ETF The GOLD ETF is held on the belief that gold and gold stocks perform an essential function in a diversified portfolio. Gold bullion acts as a hedge against inflation and protects against USD weakness. It also performs as a defensive holding in uncertain and deflationary financial markets, and is an important element in a diversified portfolio. Important Information Disclaimer: Information in this communication should be assumed to be confidential. If you received it in error, please tell us immediately and return it. Any legal privilege is not waived. This communication does not take into account any particular person s objectives, financial situation or needs. Investors should seek professional advice before making investment decisions. Neither past performance nor volatility is a reliable indicator of what may happen in the future. Neither capital nor returns is guaranteed. Past performance is calculated pre-tax and after fees and expenses, assumes distribution reinvestment but does not take into account inflation. P: F: E: info@selectfunds.com.au selectip.com.au Page 5