Fund review Cromwell Phoenix Property Securities Fund

Transcription

1 Fund review Cromwell Phoenix Property Securities Fund P 1-7 ISSUE DATE: About this Review SECTOR PROPERTY SECURITIES AUSTRALIAN (ACTIVE) TOTAL S RATED IN THIS SECTOR 19 About this Fund NAME CROMWELL PHOENIX PROPERTY SECURITIES APIR PDS OBJECTIVE SIZE RESPONSIBLE ENTITY CRM8AU A TOTAL RETURN (AFTER FEES) IN EXCESS OF THE BENCHMARK OVER ROLLING THREE YEAR PERIODS WHILE DELIVERING LOWER TOTAL RISK (AS MEASURED BY THE VOLATILITY OF RETURNS) OVER THIS PERIOD. $87.1M CROMWELL S MANAGEMENT LTD COMMENCED APRIL 28 RETAIL FEE (MER) WHOLESALE FEE (MER) STRUCTURE AVAILABILITY About the Fund Manager MANAGER.97% P.A..97% P.A. RETAIL/WHOLESALE PHOENIX PORTFOLIOS PTY LTD OWNERSHIP 45% CROMWELL PROPERTY /55% STAFF ASSETS MANAGED IN THIS SECTOR $347M YEARS MANAGING THIS ASSET CLASS 7 Investment team TEAM SIZE DEDICATED TO THIS 2 PORTFOLIO MANAGER STUART CARTLEDGE TEAM TURNOVER RATIO (2 YEARS) % Investment process BENCHMARK TARGETED ADDED VALUE TRACKING ERROR (P.A.) S&P ASX 3 A-REIT ACCUMULATION INDEX RETURN ABOVE MEDIAN MANAGER/INDEX; TOTAL RISK BELOW MEDIAN MANAGER/INDEX NOT TARGETED TYPICAL STOCK NUMBERS 2 TYPICAL CAPITALISATION BIAS STOCK ACTIVE POSITION LIMITS SECTOR ACTIVE POSITION LIMITS MID/SMALL MAX WEIGHT TO SINGLE NAME OF 2% NO FORMAL CONSTRAINT BUT ACTIVELY MONITORED GLOBAL PROPERTY SECURITIES EXPOSURE -1% CASH EXPOSURE -2% Fund rating history MARCH 214 MARCH 213 MARCH 212 HIGHLY RECOMMENDED HIGHLY RECOMMENDED HIGHLY RECOMMENDED What this Rating means The Highly Recommended rating indicates that Lonsec has very strong conviction the financial product can generate risk adjusted returns in line with relevant objectives. The financial product is considered a preferred entry point to this asset class or strategy. Fund risk characteristics LOW MODERATE HIGH CAPITAL VOLATILITY RISK CONCENTRATION RISK CORPORATE RISK Risk categories are based on Lonsec s qualitative opinion of the risks inherent in the product s asset class and the risks relative to other products in the relevant Lonsec sector universe. What is this Fund? The Cromwell Phoenix Property Securities Fund ( the Fund ) aims to invest in a diverse portfolio of property and property like securities that have an understandable business models, have good governance practices, and who are assessed as trading below the Phoenix Portfolio ( the Manager s) assessment of intrinsic value. The main valuation tool used by the Manager is the dividend discount model, with the key input being the team s assessment of each security s normalised or mid-cycle earnings and balance sheet. Lonsec would broadly characterise the Fund s style as having a value bias. The Fund does not have an explicit performance objective, outside of returning above its benchmark and the median of its peer group, and generating its return with lower total risk than the index and the median of its peer group. There are two characteristics of the Fund that Lonsec believes differentiates it from many peers. The first is the Fund s relatively low stated capacity of.5% of the market capitalisation of its benchmark, the second is the Fund s benchmark unaware approach to portfolio construction. The combination of these factors means the portfolio is likely to contain significant active positions versus peers, including meaningful positions in smaller, ex-benchmark stocks. Investors should note that the Fund s investment universe includes stocks with property like characteristics, including infrastructure stocks, property development companies and preference shares. In addition the mandate includes the provision to hold up to 2% of the portfolio in cash and invest in offshore listed vehicles. We strongly recommend that potential investors read the product disclosure statement or investment statement. Lonsec Research Pty Ltd ABN AFSL No This information must be read in conjunction with the warning, disclaimer, and disclosure at the end of this document. This report supersedes all prior reports.

2 P 2-7 ISSUE DATE: The Fund s benchmark unaware approach and wider investment universe means its return pattern may differ significantly from its benchmark at different parts of the market cycle. The maximum holding in any one stock in the portfolio is 2%. This ensures a level of diversification in the Fund, although Lonsec notes it also forces the Fund to be underweight Westfield Group, whose current benchmark weight is around 24%, regardless of its qualitative characteristics and valuation potential. The Fund typically holds around 2 stocks and Lonsec expects longer-term portfolio turnover to be 45-6% p.a., which is in line with the Lonsec peer average. Lonsec notes that the base management fee of.97% p.a. is one of the highest in the Lonsec assessed peer group. That said, Lonsec also notes the Fund has a lower capacity limit and higher return objective than most peers, which provides some justification for the higher fee. Using this Fund This is General Advice only and should be read in conjunction with the Disclaimer, Disclosure and Warning on the final page. While the Fund will seek to invest in companies that deliver reliable long-term cash flows, it is also subject to equity market risk. This means movements (both positive and negative) in the share prices of the underlying securities in the portfolio will affect the Fund s returns. Investors should therefore be aware that the Fund may experience periods of negative returns and that there is a risk of potential capital loss being incurred on their investment. As a long only Australian property securities product, the Fund would form part of the growth component of a balanced portfolio. The Fund is suitable for medium and high risk profile investors with a 5+ year investment time horizon. Lonsec notes that in general, Australian listed property funds tend to exhibit relatively high levels of concentration risk, reflecting the concentrated nature of the benchmark. That said, Lonsec notes the Manager s benchmark unaware investment approach mitigates this risk to some extent relative to many peers. The Fund is suitable for use as both a standalone product or as part of a core-satellite strategy (with the core being either a passive index position or a direct stock holding in Westfield Group). The Manager has the ability to take significant active positions away from the A-REIT index. Investors should therefore be aware that the Fund has the potential to deliver returns that deviate materially from the benchmark. Changes since previous Lonsec review There have been no material changes to the Manager s investment team or process since the last review. Over the past year the Fund has experienced reasonably strong cash inflows, with assets under management within this strategy growing to $35 million. Given current market levels, this means the Manager believes it has around $1 million in capacity available within the strategy. Lonsec Opinion of this Fund People and resources The Fund is managed by a team of two investment professionals. While there are larger teams amongst some peers in the sector, Lonsec considers the quality of the investment professionals to be high. The team is led by Portfolio Manager Stuart Cartledge. Cartledge has 25 years of industry experience and was previously Head of Property Securities at Citigroup Asset Management. Lonsec considers Cartledge to be one of the best portfolio managers in Lonsec s peer group and believes he has an exceptionally strong understanding of the Australian listed property sector. Lonsec s current ranking is contingent on his continued involvement in the Fund. Cartledge is supported by Research Analyst Richard Fakhry, who is also an equity holder in the business (1%). Lonsec considers Fakhry to also be a strong investment professional who is suitably qualified for this role. The team has been stable since 29 when Fakhry joined the team. Lonsec views this positively. There is significant key person risk in Cartledge, although to some extent this is mitigated by Cartledge having a significant equity stake in the boutique. Research and portfolio construction The Manager s investment process is largely based on stock specific, bottom-up research, which takes a medium to long-term time horizon. All stocks are analysed using a standard qualitative and quantitative template allowing for effective comparison across the sector. Overall Lonsec believes it is logical, thorough, and disciplined. Lonsec believes that the formal assessment of agency risk and corporate governance is a particularly attractive feature of the process, given some of the poor management practices that were exposed in the A-REIT sector during the Global Financial Crisis. In addition to its own fundamental research, the investment team is able to leverage off the research team of the Cromwell Property Group, which Lonsec considers to be a slight competitive advantage. This input is formalised through regular monthly meetings of the Investment Strategy Group involving senior members across Cromwell. Portfolio construction is logical and relatively transparent, with active positions being largely driven by stock valuations. The Manager will also consider stock liquidity when deciding portfolio weights. Lonsec considers this to be important, particularly given the Fund s ability to take

3 P 3-7 ISSUE DATE: relatively large positions in some of the smaller and less liquid companies. The Manager adopts a high conviction, benchmark unaware, approach to management of the Fund. Lonsec believes this best ideas conviction is a positive characteristic for managers receiving fees for active management and is not always evident across Lonsec s peer group. Cartledge is ultimately accountable for all stock selection decisions within the Fund. Lonsec views this single point of accountability positively. Risk management Much of the risk management within the Fund is embedded within the stock selection process, namely the team s focus on identifying companies that are understandable, have strong corporate governance, and its use of mid cycle valuation assumptions. At a portfolio level, the 2% maximum holding in any one stock ensures a higher level of diversification than the current benchmark, where Westfield Group represents over 25% by market capitalisation. Outside of this there are no formal constraints on portfolio construction. Lonsec notes in particular there are no constraints on sector positioning within the Fund. Whilst this practice is consistent with the Fund s benchmark unaware approach, Lonsec believes it also has the potential to leave the portfolio vulnerable to unintended macro-economic risks. Consistent with the benchmark unaware approach, no consideration is given to tracking error in portfolio construction. The Fund is typically fully invested but has the ability to hold up to 2% in cash. The Manager would only have significant cash holdings if valuation levels were extreme and cash represented the most attractive investment alternative. Lonsec notes positively the Fund cannot hold a position in the Cromwell Property Group, so as to avoid conflict of interests. Funds under Management Phoenix Portfolios is among the more modest managers in the Australian property securities peer group, with total FUM of $45m in the A- REIT sector as at 31 December 213. Of this total amount, around $35m is run with an index unaware approach, while $1m is managed in a more traditional index aware approach. Lonsec believes this level of FUM leaves the Manager relatively well placed to outperform, versus some Lonsec peers who are currently managing high levels of FUM. The Manager estimates the total capacity for the index unaware strategy to be around.5% of the total market capitalisation of its benchmark, which currently equates to around $45m. Lonsec views the capacity discipline shown by the firm positive and believes it represents a strong competitive advantage relative to peers. Lonsec acknowledges there are some advantages in having large levels of assets under management (AUM), such as access to management and priority access to deal flow. However as a general rule, Lonsec believes managers which with large level of AUM are at a disadvantage relative to those with smaller levels. This is particularly the case when investing in small capitalisation or less liquid stocks. Performance The Fund has an impressive long term performance track record, outperforming its benchmark (S&P/ASX 3 A-REIT Accumulation Index) and Lonsec Peer Group average by a material margin over all time periods assessed to December 213. The Fund also met its stated performance objective to provide a return above the median manager or index; while taking total risk below median manager or index. Over the three year period to December 213, the Fund outperformed the index by 8.17% p.a., versus the Lonsec peer group average of.94% p.a.. Over the year to December 213, performance has also been strong, outperforming the benchmark by 6.9% versus the Lonsec peer group average of.96%. Positive contributors include positions in Macquarie Atlas Roads, Folkstone, and Sydney Airport. Detractors included positions in Investra Office Trust and Charter Hall Retail. Lonsec notes that in the past, the Manager s process has allowed it to buy deeply discounted stocks due to a heavy sell-off of the sector during the global financial crisis. In the past two years the sector has re-rated and companies have generally improved their capital structures and policies around paying sustainable dividends. Thus Lonsec believes this opportunity set has somewhat diminished, and it is less likely that the Manager will continue posting such large excess returns going forward. The Fund s volatility (as measured by Standard Deviation) over all periods assessed to December 213 has been below that of the Fund s benchmark. While the Tracking Error of the Fund is not specifically targeted, for all periods assessed to December 213, Lonsec notes that as expected, this figure has generally been higher than the Lonsec peer group average given the Fund s benchmark unaware nature. Overall Lonsec maintained the Fund s rating as Highly Recommended following its most recent review. The Fund benefits from a strong and disciplined investment approach, underpinned by a highly regarded Portfolio Manager, Stuart Cartledge. In addition Lonsec believes the low capacity limit set by the Manager to be a competitive advantage of the Fund. That said, investors should note that this is one of the most expensive options in the Lonsec peer group.

4 P 4-7 ISSUE DATE: People and resources About the Responsible Entity The Responsible Entity of the Fund is Cromwell Funds Management Ltd, which is a fully owned subsidiary of Cromwell Property Group. Cromwell Property Group is both a property trust and funds manager and is a stapled security listed on the ASX (ASX: CMW). About the Fund Manager The underlying investment manager, Phoenix Portfolios is an Australian based boutique investment management firm established in 26. The company is owned by Portfolio Manager Stuart Cartledge (45%), Richard Fakhry (1%), and the ASX listed Cromwell Property Group (45%). The company researches, analyses and invests in property, infrastructure and other property related securities. Phoenix Portfolios has outsourced all noninvestment functions to specialist providers, enabling the investment team to focus solely on investment activities. Phoenix Portfolios benefits from the support of the broader Cromwell Property Group in areas such as marketing and distribution, investment strategy and legal and compliance. Size and experience Phoenix Portfolios Investment Team Name Position Years industry / firm STUART CARTLEDGE PORTFOLIO 25/7 MANAGER RICHARD FAKHRY RESEARCH ANALYST 1/4 Team structure The Phoenix Portfolios team includes two members who are Stuart Cartledge and Richard Fakhry. Both members are responsible for the research of stocks, with Cartledge directly accountable for the overall portfolio contributions to the research process are also made by the broader Cromwell Property Group which has considerable insights into direct property markets. Greg Lander, who is a registered property valuer and is employed by Cromwell Property Group as a property analyst in the capital transactions team, works closely with the Phoenix Portfolios investment team. His role is largely in supporting the research effort and co-ordinating the input of Cromwell Property Group s acquisition and direct property teams. These inputs enable the Phoenix Portfolios investment team to obtain broad market feedback on the Australian direct property market. Moreover, Cromwell Property Group s sales and marketing staff are also able to provide guidance on the property funds management industry in Australia. This is important given the high percentage of A-REIT earnings that stem from funds management activities. Investment Strategy Group consists of three senior executives of the Cromwell Property Group and the Phoenix investment team. The group meets monthly to discuss and provide feedback on performance, key stock positions and any changes to the portfolio. Research approach Overview INVESTMENT UNIVERSE 75 NO. OF STOCKS FULLY MODELED 47 NO. OF STOCKS PARTIALLY MODELED 12 KEY SCREENS LIQUIDITY, BALANCE SHEET, EPS TOP-DOWN 1% BOTTOM-UP 9% Research inputs Company financial reports Meetings with company Property inspections Macroeconomic inputs Direct real estate research and industry contacts Valuation approach PRIMARY SECONDARY DIVIDEND DISCOUNT MODEL SUM OF THE PARTS (NET ASSET VALUE) The Manager uses a Dividend Discount Model (DDM) as the primary valuation metric. The discount rate used in the DDM is based on the Capital Asset Pricing Model (CAPM) and is a function of the Australian 1-year government bond yield, a market risk premium and each stock s Beta. A Sum of the Parts (SOTP) calculation is utilised as a secondary valuation metric and provides a cross check to the DDM. The SOTP calculation sums the following components: Trust Assets valued based on an adjustment to the book values of investment property and coinvestment stakes Corporation EBITDA multiples are applied to our corporate earnings forecasts on a divisional basis Both valuation frameworks provide flexibility to carry out what if type analysis using a variety of valuation and multiple adjustments. Portfolio construction The Portfolio Manager is ultimately accountable for all stock selection decisions within the Fund. Portfolio construction is heavily skewed towards stocks with the most attractive valuations, although liquidity is also a major consideration when deciding portfolio weights. Stock specific risk, agency score, corporate activity, earnings revision, portfolio construction guidelines, and the stock valuations are used to devise the stock ratings. The following table shows the valuation matrix used by the Manager to assist portfolio construction.

5 P 5-7 ISSUE DATE: Portfolio construction matrix Medium Large Cap ($1b) Cap ($5m) Small Cap ($25m) GOOD VALUE (TOP THIRD OF RANKINGS) 1-2% 5-1% 1-5% MEDIUM VALUE -1% -5% -2% POOR VALUE (BOTTOM THIRD OF RANKINGS) % % % Short-term momentum signals are also used to assist with the timing of buying and selling stocks. These signals include price momentum and earnings revisions. Some of the other factors that will impact on portfolio positions include transaction costs and corporate activity. Risk limits and monitoring The Fund s portfolio risk guidelines are clearly designed to ensure the Fund remains well diversified and Tracking Error is not considered. The Fund currently only invests in vehicles listed on the Australian Stock Exchange and cash and does not invest in unlisted securities. The Fund can invest up to 1% in offshore listed vehicles, although the Manager is not researching global stocks at present, and offshore investment is unlikely in the short term. Being benchmark unaware, the Fund does not have any limit on its allocation to non-index stocks. The Fund s key risk limits are outlined in the table below. Risk limits NUMBER OF STOCKS APPROXIMATELY 2 STOCKS MAXIMUM STOCK POSITION 2% EX-ANTE TRACKING ERROR DESIRED TURNOVER RANGE NOT TARGETED 3-6% P.A. CASH MAX 2%. Stock valuations are re-calculated daily and the portfolio is monitored in real time. A formal meeting occurs weekly during which the portfolio is reviewed, position-by-position, to ensure it adequately reflects the team s investment insights. Risks An investment in the Fund carries a number of standard investment risks associated with investment markets. These include performance, liquidity, counterparty, market and tax risks. These and other risks are outlined in the PDS and should be read in full and understood by potential investors. Lonsec considers the following to be the major risks: Equity market Investments in equity markets are subject to numerous factors which may have an impact on the performance of an investment (both positive and negative). Unexpected changes in economic, technological, structural, regulatory or political conditions can have an impact on the returns of all investments within a particular market. Derivatives The Manager has scope, via its PDS, to implement various derivative strategies with the objective of mitigating equity market risks. Lonsec does not expect this to be a widely adopted strategy and will generally be restricted to using futures as a method of investing residual cash balances. Derivatives cannot be used to leverage the Fund. Derivatives have never been used since Fund s inception.

6 RELATIVE PERFORMANCE (%) OUTPERFORMANCE RATIO (%) DEC-8 DEC-9 DEC-1 DEC-11 DEC-12 DEC-13 VALUE ($) PERFORMANCE (%) Cromwell Phoenix Property Securities Fund P 6-7 ISSUE DATE: Quantitative performance analysis annualised after-fee % returns as at YR 3 YR 5 YR 7 YR PERFORMANCE (% PA) n/a n/a STANDARD DEVIATION (% PA) n/a n/a EXCESS RETURN (% PA) n/a n/a OUTPERFORMANCE RATIO (%) n/a n/a WORST DRAWDOWN (%) n/a n/a TIME TO RECOVERY (MTHS) 4. n/a n/a n/a SHARPE RATIO n/a n/a INFORMATION RATIO n/a n/a TRACKING ERROR (% PA) n/a n/a BENCHMARK: S&P/ASX 3 PROPERTY TRUSTS ACCUMULATION INDEX : AVERAGE OF LONSEC RATED AUSTRALIAN A-REIT S, : CROMWELL PHOENIX PROPERTY SECURITIES Growth of $1, since inception Snail trail chart over three years RELATIVE RISK (%) START 5 END CROMWELL PHOENIX PROPERTY SECURITIES S&P ASX 3 A-REIT (SECTOR) AUD (TG) AUD BENCHMARK: S&P ASX 3 A-REIT (SECTOR) AUD (TG) AUD Risk-return chart over three years Outperformance consistency Y 2Y 3Y 5Y 7Y RISK (%) S LONSEC AVERAGE CROMWELL PHOENIX PROPERTY SECURITIES S&P ASX 3 A-REIT (SECTOR) AUD (TG) AUD ALL MARKETS UP MARKETS DOWN MARKETS BENCHMARK: S&P ASX 3 A-REIT (SECTOR) AUD (TG) AUD

7 ISSUE DATE: Glossary Absolute Return Top line actual return, after fees Excess Return Return in excess of the benchmark return (Alpha) Standard Deviation Volatility of monthly Absolute Returns Tracking Error Volatility of monthly Excess Returns against the benchmark (the Standard Deviation of monthly Excess Returns) Sharpe Ratio Absolute reward for absolute risk taken (outperformance of the risk free return (Bank Bills) / Standard Deviation) Information Ratio Relative reward for relative risk taken (Excess Returns / Tracking Error) Worst Drawdown The worst cumulative loss ( peak to trough ) experienced over the period assessed Time to Recovery The number of months taken to recover the Worst Drawdown Outperformance Ratio Measure of consistency of excess returns Active Share The level to which the Fund s stock holdings differ from the Fund s benchmark/index. External research suggests that a level exceeding 6% is indicative of active management. About Lonsec Lonsec Research Pty Ltd (Lonsec) is an investment research house with specialist areas of expertise, that was originally established in 1994 and the current entity was registered on 23 June 211. From 1 July 211, Lonsec became a fully owned subsidiary of Lonsec Fiscal Holdings Pty Ltd, a privately owned and independent entity with a multi-brand strategy of providing leading financial services research and investment execution. Lonsec believes that professional financial advisers need informed opinions on the best investment strategies and financial products to provide real value for their clients. To meet this need, Lonsec has in place an experienced research team, which draws on a robust research process to undertake in-depth assessment of managed fund products Analyst disclosure & certification Analyst remuneration is not linked to the research or rating outcome. Where financial products are mentioned, the Analyst(s) may hold the financial product(s) referred to in this document, but Lonsec considers such holdings not to be sufficiently material to compromise the rating or advice. Analyst holdings may change during the life of this document. The Analyst(s) certify that the views expressed in this document accurately reflect their personal, professional opinion about the matters and financial product(s) to which this document refers. Date prepared: March 214 Analyst: Nicholas Thomas Release authorised by: Peter Green P 7-7 LONSEC STRONGLY RECOMMENDS THIS DOCUMENT BE READ IN CONJUNCTION WITH THE RELEVANT PRODUCT DISCLOSURE STATEMENT OR INFORMATION STATEMENT Important notice: This document is published by Lonsec Research Pty Ltd ABN , AFSL No (Lonsec). Please read the following before making any investment decision about any financial product mentioned in this document. Disclosure at the date of publication: Lonsec receives a fee from the fund manager or product issuer(s) for researching the financial product(s) set out in this document, using comprehensive and objective criteria. Lonsec may also receive a fee from the fund manager or product issuer(s) for subscribing to research content and other Lonsec services. Lonsec s fee is not linked to the rating(s) outcome. Lonsec does not hold the product(s) referred to in this document. Lonsec s representatives and/or their associates may hold the product(s) referred to in this document, but details of these holdings are not known to the Analyst(s). Disclosure of Investment Consulting services: Lonsec receives fees for providing investment consulting advice to clients, which includes model portfolios, approved product lists and other financial advice and may receive fees from this fund manager or product issuer for providing investment consulting services. The investment consulting services are carried out under separate arrangements and processes to the research process adopted for the review of this financial product. For an explanation of the process by which Lonsec manages conflicts of interest please refer to the Conflicts of Interest Policy which is found at: Warnings: Past performance is not a reliable indicator of future performance. Any express or implied rating or advice presented in this document is a class service (as defined in the Financial Advisers Act 28 (NZ)) or limited to General Advice (as defined in the Corporations Act 21(Cth)) and based solely on consideration of the investment merits of the financial product(s) alone, without taking into account the investment objectives, financial situation and particular needs ( financial circumstances ) of any particular person. It is not a personalised service (as defined in the Financial Advisers Act 28 (NZ)) and does not constitute a recommendation to purchase, redeem or sell the relevant financial product(s). Before making an investment decision based on the rating(s) or advice, the reader must consider whether it is personally appropriate in light of his or her financial circumstances, or should seek independent financial advice on its appropriateness. If our advice relates to the acquisition or possible acquisition of particular financial product(s), the reader should obtain and consider the Investment Statement or Product Disclosure Statement for each financial product before making any decision about whether to acquire a financial product. Lonsec s research process relies upon the participation of the fund manager or product issuer(s). Should the fund manager or product issuer(s) no longer be an active participant in Lonsec s research process, Lonsec reserves the right to withdraw the document at any time and discontinue future coverage of the financial product(s). Disclaimer: This document is for the exclusive use of the person to whom it is provided by Lonsec and must not be used or relied upon by any other person. No representation, warranty or undertaking is given or made in relation to the accuracy or completeness of the information presented in this document, which is drawn from public information not verified by Lonsec. Financial conclusions, ratings and advice are reasonably held at the time of completion but subject to change without notice. Lonsec assumes no obligation to update this document following publication. Except for any liability which cannot be excluded, Lonsec, its directors, officers, employees and agents disclaim all liability for any error or inaccuracy in, misstatement or omission from, this document or any loss or damage suffered by the reader or any other person as a consequence of relying upon it. Copyright 214 Lonsec Research Pty Ltd (ABN , AFSL No ) (Lonsec). This report is subject to copyright of Lonsec. Except for the temporary copy held in a computer's cache and a single permanent copy for your personal reference or other than as permitted under the Copyright Act 1968 (Cth), no part of this report may, in any form or by any means (electronic, mechanical, micro-copying, photocopying, recording or otherwise), be reproduced, stored or transmitted without the prior written permission of Lonsec. This report may also contain third party supplied material that is subject to copyright. Any such material is the intellectual property of that third party or its content providers. 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