@InvestorDailyAU

DELEGATE WORKBOOKSydney | 31 October 2017

WELCOME NOTE AGENDA8:15AM Registration

9:15AM Opening remarks from the chair

GLOBAL EQUITIES

9:20AM Global diversification – you are doing it all wrong

9:45AM Global investing: (buying) more than megatrends

10:10AM A world of opportunity

10:35AM Morning break

AUSTRALIAN EQUITIES

11:05AM Hunting for alpha

11:30AM Vertium Asset Management – striving to deliver more income with less risk and greater returns

11:55AM Auscap Asset Management – the long and the short of it

12:20PM Lunch

FIXED INCOME

1:20PM Bonds – a premium opportunity

ALTERNATIVE INVESTMENTS

1:45PM Absolute return investing with a difference

2:10PM Afternoon break

PROPERTY STRATEGIES

2:35PM How to deliver much-needed property diversification into the world’s fastest growing region

3:00PM Commercial property: options outside residential

3:25PM Closing remarks

3:30PM Close of event

ON BEHALF of Momentum Media, the publisher of InvestorDaily, welcome to the second annual InvestorDaily Asset Strategy Forum. In a shifting and difficult business environment, it has never been more important for financial advisers to add value. Remaining at the forefront of cutting edge investment strategies that produce robust and diversified client portfolios is one of the key ways advisers can build trust and help create wealth.

We have partnered with some of the most exciting investment managers and strategists on the scene. The forum’s partners may present differing investment philosophies but they are united in their commitment to their craft and their passion for good advice.

We are delighted that you have joined us at the InvestorDaily Asset Strategy Forum and I look forward to catching up with you during the event.

Aleks VickovichAleks Vickovich

APN Property Group Limited (APN) is a specialist real estate investment manager that actively manages real estate funds on behalf of institutional and retail investors.

APN’s approach to real estate investment is based on a “property for income” philosophy. This philosophy remains central to APN’s four businesses (Real Estate Securities, Industria REIT, Convenience Retail REIT and Direct Funds).

APN has significant experience in managing real estate investments. Focusing exclusively on real estate over many years provides a depth of understanding which enables APN to deliver value to investors.

www.apngroup.com.au

EVENT PARTNERS

Arnhem Investment Management is a boutique fund manager focused on delivering value through in-depth industry structure analysis and company research. With over 150 years of combined investment experience, the research team continues to deliver industry leading expertise. The founding members of the investment team have been managing equities together since 2000. Arnhem’s industry approach to investment is based on the understanding that sustainable earnings growth is the critical determinant of superior long-term equity outperformance. Industry structure and a company’s relative position within that structure, is a key driver of this outperformance.

www.arnhem.com.au

Auscap Asset Management Limited is a value-based equities manager founded in 2012. Auscap is the responsible entity and investment manager for the Auscap Long Short Australian Equities Fund. The fund targets attractive absolute returns through disciplined, patient, long and short investing.

The fund’s portfolio is high conviction and typically invested in 25-45 positions. The fund is long biased, however may be net long, short or neutral depending on the opportunity set at the time. The fund may also hold cash to be in a position to take advantage of compelling investment opportunities as they arise.

www.auscapam.com

EVENT PARTNERS

Dalton Street Capital is a boutique absolute return investment manager who has partnered with Prodigy Investment Partners, a multi-boutique investment firm established in June 2014. The Dalton Street Capital investment strategy is based on mathematically established principles of behavioural finance and rigorous logic. This approach provides investors with strong absolute returns and low correlation to traditional asset classes. The founding partners, Alan Sheen and Nick Selvaratnam bring 45 years’ combined investment experience to the partnership.

www.daltonstreetcapital.com

FIIG is Australia’s largest fixed income specialist with over 19 years’ experience dedicated to providing fixed income expertise and solutions to Australian investors. Our specialist Adviser Services team provides a streamlined and efficient service accessing the global bond market, which can be integrated to save advisers time and money. With timely and predictable income essential to your clients, FIIG Adviser Services provides administration, reporting and technology essential to the smooth running of your practice. Our dedicated adviser services team is on hand to provide support with product information, education, and account services to ensure that both your practice and your clients are maximising the fixed income opportunity.

www.fiig.com.au

Cromwell Property Group (ASX: CMW) is a Global Real Estate Investment Manager. As at 30 June 2017, Cromwell had a market capitalisation of $1.7 billion, a direct property investment portfolio in Australia valued at $2.4 billion, and total assets under management of $10.1 billion across Australia, New Zealand and Europe.

Cromwell’s performance is underpinned by quality income producing Australian assets with strong tenant covenants, long weighted average lease expiries and fixed rental increments. The group also has a long-term target of delivering 20 per cent of earnings from funds management.

www.cromwellpropertygroup.com

DALTON STREET CAPITAL

EVENT PARTNERS

Montgomery Investment Management is a boutique equities specialist known for its highly disciplined, bottom-up, value style of investing. Subsidiary Montgomery Global Investment Management offers two unconstrained, high conviction strategies that have no bias to geography, sector or market capitalisation.

What is common between both strategies is a focus on the characteristics that make a business extraordinary, being high quality businesses with bright prospects bought at the right price that offer resilience to a portfolio, which are accompanied by a focus on the preservation of capital through the ability to hold cash or to short-sell. The investment team has excellent international investment experience, having worked for highly regarded and well recognised fund managers in the United States.

www.montinvest.com/advisers

Based in Sydney, Australia, and founded in 1999, Peters MacGregor Capital Management is a value-focused investment manager specialising in global equities.

We employ a value-based investment style. We use a bottom-up stock picking approach with a strong focus on valuation-based stock selection methodology. We seek to identify and capitalise on investment opportunities through stringent security level analysis in order to identify great companies, with great management, that are trading at great prices.

www.flindersinvest.com.au www.petersmacgregor.com

Flinders Investment Partners is a boutique investment management partnership with Prodigy Investment Partners. The Flinders Emerging Companies Fund provides investors with an actively managed portfolio of listed small and emerging Australian companies. The three founding partners bring combined experienced of 60 years to the Flinders Emerging Companies Fund. Importantly, Flinders’ financial success is directly aligned to investors’ interests. The experience and successful track record of the Flinders investment team and the in-depth level of proprietary research and analysis, makes Flinders one of the top quality investment managers in Australian small and emerging companies.

www.vertium.com.au

EVENT PARTNERS

ASX operates at the heart of Australia’s financial markets. It is among the world’s top 10 exchange groups and is the global leader in A$ and NZ$ financial markets.

We are a fully integrated exchange across multiple asset classes. This includes offering access to domestic and international equities, fixed income, infrastructure and property products through listed, traded and post-trade structures. This enables our retail, SMSF trustee and financial planning clients a simple and cost-effective way to build diversified investment portfolios.

ASX advocates for regulations that support end-investors, promote the growth and integrity of the market, and strengthen Australia’s global competitiveness.

www.asx.com.au

EVENT SUPPORTER

Vertium Asset Management is a specialist Australian equity income investment manager focused on meeting the needs of investors in the lead-up to and during retirement. Led by seasoned investor and company founder, Jason Teh, the team combines the extensive Australian equities investment management experience of professional investors who share a quality and value investment philosophy.

Their flagship strategy, the Vertium Equity Income Fund, has been designed for investors looking for lower-risk equity market exposure or those drawing down on their savings, such as retirees. The portfolio comprises quality Australian companies with attractive valuations that pay consistent and sustainable distributions.

SESSION NOTES: PLEASE ENSURE YOU DOWNLOAD THIS WORKBOOK AS A PDF BEFORE ENTERING NOTES AND SAVE AFTER EACH SESSION

9:20AM – 9:45AM

Theo Maas joined Arnhem in February 2007 from ABN AMRO in Amsterdam which he joined in 1995. He was previously a portfolio manager in the global equities team based in the Netherlands, and was the lead

portfolio manager for the ABN AMRO Technology and Telecom Funds since their inception in 1998. Theo joined AAAM in 1995 as a portfolio manager in the global fixed income team, where he was responsible for the German

Bond Fund. Theo holds a Masters degree in Finance & Investments from the University of Groningen (1994) and in 2001 received his CFA designation.

THEO MAASPortfolio Manager, Global SMA, Arnhem Investment Management

GLOBAL DIVERSIFICATION – YOU ARE DOING IT ALL WRONGWith Australian equity portfolios heavily skewed in financials, resources and REITs, many investors are seeking to reduce this sector concentration risk by diversifying into international equities – failing to realise that MSCI-benchmarked global investment funds may actually introduce further sector concentration risk to their overall portfolios. Often these investments also fail to generate the growth opportunities investors are really looking for.

In this presentation, Arnhem Investment’s Portfolio Manager Theo Maas offers strategies to build a genuinely diversified and growth-oriented global portfolio for your clients, as well as discussing his best stock picks in high growth sectors such as healthcare and technology.

GLOBAL EQUITIES

SESSION NOTES: PLEASE ENSURE YOU DOWNLOAD THIS WORKBOOK AS A PDF BEFORE ENTERING NOTES AND SAVE AFTER EACH SESSION

9:45AM-10:10AM

Andrew Macken joined Montgomery in March 2014 after spending nearly four years at Kynikos Associates LP in New York as a senior member of the research team. Prior to this, Andrew was a management consultant

at Port Jackson Partners Limited in Sydney for nearly four years, focusing on strategy for clients in Australia and abroad.

Andrew holds a Master of Business Administration

(Dean’s List) from the Columbia Business School in New York. Andrew was a member of the elite Applied Value Investing program, the basis of which stems from the teachings of Benjamin Graham and David Dodd at the Columbia Business School in the 1920s.

ANDREW MACKENChief Investment Officer and Lead Portfolio Manager, Montgomery Global Investment Management

GLOBAL INVESTING: (BUYING) MORE THAN MEGATRENDSBRICS, crypto-currency, driverless cars, artificial intelligence; the world is forever changing and there are many emerging businesses which are leading the charge in redefining the field of play. However, can investors simply generate wealth in uncertain times by backing a megatrend? Or is this a virtual reality? We at Montgomery Global think differently. Not only are we interested in revolutionary tailwinds, we are also importantly focused on business quality and more significantly, what we are paying for it. We see stock prices as a set of market implied expectations, and believe that with a more challenging landscape ahead for equities, owning resilient businesses at the right prices is the best way to build investor wealth and preserve capital.

GLOBAL EQUITIES

SESSION NOTES: PLEASE ENSURE YOU DOWNLOAD THIS WORKBOOK AS A PDF BEFORE ENTERING NOTES AND SAVE AFTER EACH SESSION

10:10AM-10:35AM

Nathan Bell has over 20 years’ investment experience. Before joining Peters MacGregor, he worked for nine years at Intelligent Investor. That included over four years as Portfolio Manager, which included being a

member of the Compliance Committee. Nathan contributes regularly to the financial press

and regularly appears on Sky Business. He graduated

from Flinders University with a Bachelor of Economics and subsequently completed a Graduate Diploma of Applied Investment and Management. Nathan is a CFA Charterholder.

NATHAN BELLHead of Research, Peters Macgregor Capital Management

A WORLD OF OPPORTUNITYWhat’s worked over the past eight years is unlikely to work over the next eight. Interest rates are increasing and high valuations mean the major equity markets are highly unlikely to produce satisfactory returns.

But while many investors are busy trying to predict the next financial crisis, we’ve been buying undervalued, growing businesses around the globe.

Join Head of Research, Nathan Bell, as he explains why it’s time to leave the herd, and how two businesses currently held in the Peters MacGregor Global Equity portfolio should increase their value despite the unwinding of experimental monetary policies.

GLOBAL EQUITIES

SESSION NOTES: PLEASE ENSURE YOU DOWNLOAD THIS WORKBOOK AS A PDF BEFORE ENTERING NOTES AND SAVE AFTER EACH SESSION

11:05AM-11:30AM

Andrew began his career in investment management in 1999. Before establishing Flinders, Andrew was Senior Investment Manager with the institutional focused fund manager Contango Asset Management

(1999-2014). He was the Portfolio Manager of the Small Companies Fund (2009 – 2014) and specialised in the analytical coverage of a range of sectors. His analytical experience has focused on the emerging

companies through his involvement in dedicated products in both the small and microcap universe.

ANDREW MOUCHACCAPartner and Portfolio Manager, Flinders Investment Partners

HUNTING FOR ALPHAFor a long time Australians have favoured the large cap blue-chip names over their smaller counterparts. However, the investment environment has changed and growth is increasingly getting harder to find. The blue-chip names that may have served well in the past are structurally challenged to produce the attractive returns for investors going forward. At the same time, the Australian small cap market has been a consistent source of alpha for well over two decades. Being a specialised small cap manager, we would argue an active approach is the best way to exploit the opportunities in this part of the market. In this session, we would like to discuss the reasons for an active approach and why the Flinders Investment Partners team possesses all the right ingredients to deliver attractive returns from investments in this part of the market. We would also address some of the misnomers and leave you with some thoughts about the future opportunities.

AUSTRALIAN EQUITIES

SESSION NOTES: PLEASE ENSURE YOU DOWNLOAD THIS WORKBOOK AS A PDF BEFORE ENTERING NOTES AND SAVE AFTER EACH SESSION

11:30AM-11:55AM

JASON TEHChief Investment Officer, Vertium Asset Management

VERTIUM ASSET MANAGEMENT – STRIVING TO DELIVER MORE INCOME WITH LESS RISK AND GREATER RETURNS Investing for accumulators and retirees is very different. Each has different financial needs and objectives. Hence, investment strategies must change over their lifetime to deliver appropriate investment outcomes.

Suitable for pre-retirees, retirees or those looking for lower-risk equity market exposure, Vertium invests its equity income portfolio in quality Australian companies with attractive valuations that pay consistent and sustainable distributions. Relative to the Australian share market, the team aims to deliver investors more income, less risk and greater investment returns.

AUSTRALIAN EQUITIES

Jason Teh founded Vertium Asset Management in 2017 and has around 20 years’ Australian equity investment management experience. He leads Vertium’s investment team and is responsible for the firm’s investment

philosophy, process and portfolio management.Before establishing Vertium, Jason was a Senior

Portfolio Manager at Investors Mutual. He was the architect of the Investors Mutual Equity Income Fund,

which he successfully managed for almost six years. As the second-longest serving employee at Investors Mutual spanning over 16 years, he had a variety of roles including managing a share of the Investors Mutual Australian Share Fund and as an Equity Analyst and Senior Quantitative Analyst.

SESSION NOTES: PLEASE ENSURE YOU DOWNLOAD THIS WORKBOOK AS A PDF BEFORE ENTERING NOTES AND SAVE AFTER EACH SESSION

11:55AM-12:20PM

JENNIFER HERBERTSenior Distribution Manager, Auscap Asset Management

AUSCAP ASSET MANAGEMENT – THE LONG AND THE SHORT OF IT The Australian share market is highly concentrated, a dozen large companies make up nearly half of the ASX200. There is also a significant sector skew to segments of the economy which are likely to face strong headwinds in the coming years. As an index agnostic long short value manager, Auscap can take advantage of Australia’s changing economy and avoid the risks associated with index concentration. Using long and short positions, together with an unconstrained cash balance and a disciplined value-based investment philosophy Auscap aims to deliver long-term compounding returns to investors.

AUSTRALIAN EQUITIES

Jennifer Herbert has over 20 years’ experience in the financial services industry. Prior to joining Auscap as a Senior Distribution Manager, from 2014 to 2017 Jennifer was a Key Account Manager for Magellan Asset

Management where she was responsible for launching and managing Magellan’s ASX listed product suite. From 2012 to 2014 Jennifer established a recruitment company that was subsequently incorporated into

Sheffield Haworth. Prior to this she was an Executive Director at Goldman Sachs where she worked in the Equities team from 2005 to 2012, having previously had experience at Deutsche Bank, SBC Warburg (now UBS) and Macquarie Bank. Jennifer has a Bachelor of Science and a Masters of Nutrition & Dietetics from the University of Sydney. She also has various accreditations from the ASX and SFE.

SESSION NOTES: PLEASE ENSURE YOU DOWNLOAD THIS WORKBOOK AS A PDF BEFORE ENTERING NOTES AND SAVE AFTER EACH SESSION

1:20PM-1:45PM

SIMON MICHELLHead of Intermediaries, FIIG Securities

BONDS – A PREMIUM OPPORTUNITY The Aussie corporate bond market has matured to the point that individual investors can extract the full amenity of an institutional marketplace. Learn how your premium corporate, NFP and UHNW clients can take advantage of opportunities through direct access to the corporate bond market.

FIXED INCOME

Simon has spent over 30 years in fixed income markets. Initially providing product solutions to wholesale middle market clients, he joined FIIG in Sydney 10 years ago. After establishing FIIG’s Term Deposit team he grew the Sydney

Fixed Income team before establishing FIIG’s intermediary business servicing professional advisers and their clients.

Since 2010, Simon has been growing and developing FIIG’s intermediary service offering as well as managing

FIIG’s relationships with dealer groups, family offices, private banks, accountants and stockbrokers.

After launching FIIG Adviser Services in 2015, Simon, as Head of Intermediaries drives the growth and strategy of FIIG’s Adviser Services and oversees a dedicated team of specialists. He attends, and is a speaker at, industry seminars and conferences for financial professionals and provides market updates and fixed income expertise to AAP and Sky Business news channel.

SESSION NOTES: PLEASE ENSURE YOU DOWNLOAD THIS WORKBOOK AS A PDF BEFORE ENTERING NOTES AND SAVE AFTER EACH SESSION

1:45PM-2:10PM

NICK SELVARATNAMCo-Founder, Portfolio Manager, Dalton Street Capital

ABSOLUTE RETURN INVESTING WITH A DIFFERENCE While the current stock market boom has some investors rejoicing, it doesn’t appear as though their level of anxiety has abated much of late. This being the case, it is little wonder that “absolute return” investing is currently getting so much attention. Most private investors’ number one priority is capital preservation and maintaining their spending power. Yet when constructing investment portfolios, we would argue disproportionate allocation is made towards relative return strategies vs. absolute return strategies. This obsession of focusing on relative returns is underpinned by a well-known behavioural bias called relative thinking, which is well documented by the work of psychologists such as Daniel Kahneman and Amos Tversky. By taking an absolute approach towards risk and return, we believe a portfolio outcome can be engineered that can protect investors against some of these behavioural biases and ultimately deliver the goal of capital preservation and growth irrespective of market conditions.

ALTERNATIVE INVESTMENTS

Nick has 25 years’ experience in investment markets. As the Managing Director and Head of Equities at Credit Suisse, Nick had overall responsibility for Australian equities across Sales, Trading, Research, Prime Services,

Derivatives and (jointly) Equity Capital Markets. Nick was also a member of the Australian Country Management Committee, Head of Australian Equities Management Group, Member of the Asian Equities

Operating Committee, and a Responsible Manager at Credit Suisse.

Prior to Credit Suisse, Nick was Managing Director and Head of Equities Research, and a member of the Country Management Committee at Goldman Sachs.

Nick is a qualified Chartered Accountant having worked at Deloitte, and graduated as a Civil Engineer.

SESSION NOTES: PLEASE ENSURE YOU DOWNLOAD THIS WORKBOOK AS A PDF BEFORE ENTERING NOTES AND SAVE AFTER EACH SESSION

2:35PM-3:00PM

CORRINE NGPortfolio Manager, Asian Real Estate Securities, APN Property Group

HOW TO DELIVER MUCH-NEEDED PROPERTY DIVERSIFICATION INTO THE WORLD’S FASTEST GROWING REGION This session will focus on how investors can reduce ‘home bias’ in their portfolios by diversifying property exposure into Asian commercial real estate via APN’s Asian REIT Fund. Our income-focused fund provides exposure to prime commercial real estate in the three global gateway markets of Asia – Singapore, Hong Kong and Japan. This strategy has proven to deliver a strong yield via a stable income stream, whilst lowering volatility of returns – a key benefit of diversification.

PROPERTY STRATEGIES

Corrine Ng joined APN Property Group as a Portfolio Manager for the Asian REIT Fund in February 2015. Corrine has over 15 years of experience in property and REIT investment in Australia, Asia and the North American markets.

Prior to joining APN, Corrine worked for Goldman Sachs Asset Management and Aviva Investors in New York as a key member of the respective Global Real Estate Securities teams.

In the earlier part of her career in Australia, Corrine worked at Challenger Group and HSBC Asset Management as an Investment Analyst. She was also a part of Urbis’s Property Economics Division where she advised on retail real estate projects throughout Asia.

SESSION NOTES: PLEASE ENSURE YOU DOWNLOAD THIS WORKBOOK AS A PDF BEFORE ENTERING NOTES AND SAVE AFTER EACH SESSION

3:00PM-3:25PM

HAMISH WEHLHead of Retail Funds Management, Cromwell Property Group

COMMERCIAL PROPERTY: OPTIONS OUTSIDE RESIDENTIAL When it comes to investing, Australians have a love affair with property, as it has the ability to provide both a capital and an income return to investors. Whilst private investors appreciate the importance of diversifying a share portfolio across many stocks, they often don’t apply the same methodology to their property portfolio, focusing instead on residential. Investing in commercial property offers individuals a number of additional benefits. Unlike residential property, where you need to invest hundreds of thousands of dollars, investors can gain exposure to an array of property funds - open or fixed terms, across different property fund managers, ultimately increasing the diversification of their portfolio - for a fraction of this investment. Learning from the past, and taking into account the various benefits and risks, we believe including quality commercial property in an investment portfolio can preserve capital, provide a stable return and ultimately build wealth.

PROPERTY STRATEGIES

Hamish Wehl joined Cromwell in 2009 as a Financial Analyst preparing forecasts for the listed group, before moving across to focus solely on the Funds Management arm of Cromwell.

As Head of Retail Funds Management, Hamish is responsible the Group’s retail investor relations and unlisted funds strategy. He has direct responsibility for all the group’s unlisted retail managed funds. Prior to joining Cromwell, Hamish

worked in London for a private European multi-strategy real estate investment firm having previously worked for Pitcher Partners (Johnston Rorke) for four years in Brisbane.

Hamish is a Chartered Accountant, holds a Masters of Philosophy in Real Estate Finance from Cambridge University and has a Bachelor of Business Management and Commerce from University of Queensland.