The Asian Masters Fund (AUF) is a leading ASX-listed investment trust which seeks to achieve an attractive total return for investors through exposure to a diversified portfolio of Asia ex-Japan equities. This September 2017 Quarterly Investment Update provides investors with an analysis of the key characteristics and drivers of AUF’s performance over the third quarter (Q3).

PORTFOLIO COMMENTARYAll data is as at 30 September 2017 and in Australian dollar (AUD) terms, unless otherwise indicated.

AUF’s net tangible asset (NTA) performed strongly in the third quarter of 2017, providing a total NTA return of 2.9%, contributing to a 16.9% increase over the year to 30 September (including dividends).AUF’s exposure to the Chinese markets contributed positively to its performance. The Wells Fargo China Equity Fund was the best performer, returning 8.4% over the quarter. Meanwhile, China A-Share managers NCC (up 5.5%), Cephei (up 5.2%) and APS (up 3.2%) also made positive contributions to AUF’s performance.The Asian Opportunities Absolute Return Fund, managed by Rays Capital, delivered a strong result of 7.2%, while regional consumer specialist manager Arisaig also performed well with a return of 6.4% over the quarter. Meanwhile, manager selection in India was positive as Steadview, AUF’s Indian manager, outperformed the declining Indian market. While Steadview grew by 3.1%, the Indian market fell by 1.6% over the quarter. Anda, AUF’s Korean specialist manager, also outperformed in a Korean market hampered by geopolitical tensions, declining 1.3%.The small cap specialists in AUF’s portfolio detracted from the fund’s overall performance during the quarter, as Prusik lost 6.1% and Asia New Stars declined 0.7%.At Walsh & Company, we remain positive on the outlook for Asia ex-Japan equities and believe that they appear well-placed to continue their strong performance. The region has rallied strongly this year, however returns were driven largely by expectations of faster earnings growth. As a result, valuations remain low in comparison to developed market equities. While the US Federal Reserve (Fed) has indicated that it will raise rates and begin normalising its balance sheet, the pace of monetary tightening is expected to be gradual and indicates continuing strength in the US economy.

COMPANY FACTS

ASX ticker AUF

Asset class Asia ex-Japan equities

Structure Listed investment company

Inception December 2007

Currency AUD (unhedged)

NTA $1.32

Market capitalisation $171 million

Shares outstanding 132 million

ONGOING FEES

Investment Management fee 1.10% p.a.*

*Inclusive of GST, does not include underlying fund manager fees. For more information on ongoing fees and costs associated with the product, please refer to Section 1 of the Replacement Prospectus dated 22 July 2016.

UNDERLYING MANAGERS

MANAGER WEIGHT**

Wells Fargo China Equity Fund 12.6%

Steadview Capital Fund 10.9%

ANDA Korea Active Return Fund 10.8%

Arisaig Asia Consumer Fund 9.2%

Cephei QFII China Absolute Return Fund 8.1%

AllianceBernstein Asia ex-Japan Fund 7.6%

Asian Opportunities Absolute Return Fund 7.5%

Prusik Asian Smaller Companies Fund 7.4%

JPMorgan Taiwan Fund 6.8%

Asia New Stars No.1 Fund 6.4%

APS China A-Share Fund 5.1%

NCC China A-Share Fund 5.0%

Komodo Fund 1.8%

Cash* 0.8%

* Excludes any cash held by underlying investment managers. ** Figures may not reconcile due to rounding.

DIVIDENDS ANNOUNCED (LAST 12 MONTHS)

August 2017 1.1 cents per share (fully franked)

May 2017 (special dividend) 5.0 cents per share (fully franked)

February 2017 1.1 cents per share (fully franked)

PERFORMANCE AS AT 30 SEPTEMBER 2017

3 months 6 months 1 year 2 years pa 3 years pa 5 years pa Since inception pa

Share price total return* 0.4% 8.2% 8.8% 4.4% 10.3% 10.8% 5.2%

NTA total return* 2.9% 11.2% 12.1% 4.9% 10.8% 12.1% 5.9%

*Performance numbers are total returns, with gross dividends reinvested. All returns beyond one year are annualised.

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01 ASIAN MASTERS FUND | QUARTERLY INVESTMENT UPDATE | September 2017

SEPTEMBER 2017QUARTERLY INVESTMENT UPDATE

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MARKET REVIEWAsia ex-Japan equities continued their strong performance over the quarter driven by positive investor sentiment around the global economy, a weaker US dollar (USD) and higher commodity prices. The MSCI Asia ex-Japan Index rose 4.4%, with all markets also delivering positive returns in local currency terms. Returns in Australian dollars (AUD) were lower, and in a few cases negative, as the AUD appreciated against all Asian currencies over the third quarter.

Of the best performing markets, the Chinese markets performed well off the back of strong economic data, with gross domestic product (GDP) growth reported at 6.9% year-on-year (YoY). The MSCI China Index gained 12.3% due in large part to internet-related stocks, while A-Shares (up 5.7%), H-Shares (up 5.1%) and Hong Kong (up 6.3%) also performed strongly over the third quarter.

Elsewhere in Asia, Thailand gained 7% as strong macroeconomic data including better-than-expected second quarter GDP growth of 3.7% YoY and ample liquidity supported the market during this time.

Meanwhile, Vietnam (up 2.6%), Philippines (up 1.5%), Taiwan (up 1.3%) and Singapore (up 0.5%) yielded positive returns over the quarter both in AUD and local currency terms. On the other hand, India (down 1.6%), Korea (down 2%) and Indonesia (down 3.5%) all posted negative returns in AUD terms. This was due to currency depreciation despite each market’s benchmark indices reaching record highs during the quarter. Specifically, Indian equities rose early in the third quarter, however some gains were lost due to soft second quarter corporate earnings releases as well as disappointing Q2 GDP growth of 5.7% YoY. Korean equities, meanwhile, remained subdued amid rising geopolitical tensions with their neighbour, North Korea.

The best performing sectors over the quarter were real estate (up 10%), information technology (up 8.2%) and energy (up 7.7%). On the other hand, utilities (down 0.1%), industrials (down 1.7%), consumer staples (down 3.7%) and telecommunication services (down 4.5%) all underperformed and posted negative returns.

TOP 10 HOLDINGSIndicative look-through stock exposure derived from portfolio of underlying funds:

COMPANY COUNTRY WEIGHT

1 Samsung Electronics Co Ltd Korea 3.9%

2 Alibaba Group Holding Ltd China 1.4%

3 Tencent Holdings Ltd China 1.4%

4 Page Industries Ltd India 1.2%

5 IndusInd Bank Ltd India 1.1%

6 Yes Bank Ltd India 1.1%

7 Eicher Motors Ltd India 1.0%

8 China Construction Bank Corp China 1.0%

9 KB Financial Group Inc Korea 0.9%

10 TSMC Ltd Taiwan 0.9%

02 ASIAN MASTERS FUND | QUARTERLY INVESTMENT UPDATE | September 2017

SECTOR ALLOCATION

* Excludes any cash held by underlying investment managers. ** Figures may not reconcile due to rounding.

38.1%34.4%

19.2%9.8%

15.9%17.4%

10.6%13.4%

4.3%11.5%

3.6%2.6%2.6%

0%1.5%

1.1%

0.7%

0.5%2.6%

4.2%

2.6%0.2%

0.8%

0.8%

1.3%

0%

0%

0%

China

India

Korea

Taiwan

Hong Kong

Indonesia

Vietnam

Philippines

Pakistan

Thailand

Singapore

Malaysia

Other

Cash*

AUF Weight**

MSCI Asia ex-Japan Index Weight**

COUNTRY ALLOCATION

Information technology

Financials

Consumer discretionary

Consumer staples

Industrials

Materials

Energy

Utilities

Real estate

Telecommunication services

Cash*

Health care

23.8%32.0%

18.6%22.8%

14.2%4.3%

14.0%9.4%10.5%

7.1%5.6%4.5%5.4%

2.1%1.9%

1.8%

1.8%

1.7%

0.8%0%

4.5%

6.1%

4.1%

3.0%

AUF Weight**

MSCI Asia ex-Japan Index Weight**

IMPORTANT INFORMATIONThis document has been prepared by Walsh & Company Asset Management Pty Limited (ABN 89 159 902 708, AFSL 450 257), as Investment Manager of Asian Masters Fund Limited (Company) (ABN 90 127 927 584).

This document may contain general advice. Any general advice provided has been prepared without taking into account your objectives, financial situation or needs. Before acting on the advice, you should consider the appropriateness of the advice with regard to your objectives, financial situation and needs. The past performance of the Company is not a guarantee of the future performance of the Company.

This document may contain statements, opinions, projections, forecasts and other material (forward looking statements), based on various assumptions. Those assumptions may or may not prove to be correct. The Investment Manager does not make any representation as to the accuracy or likelihood of fulfilment of the forward looking statements or any of the assumptions upon which they are based. Actual results, performance or achievements may vary materially from any projections and forward looking statements and the assumptions on which those statements are based. Readers are cautioned not to place undue reliance on forward looking statements and the Investment Manager assumes no obligation to update that information.

The Investment Manager gives no warranty, representation or guarantee as to the accuracy or completeness or reliability of the information contained in this document. The Investment Manager does not accept, except to the extent permitted by law, responsibility for any loss, claim, damages, costs or expenses arising out of, or in connection with, the information contained in this document. Any recipient of this document should independently satisfy themselves as to the accuracy of all information contained herein.

MSCI Asia ex Japan Index source: MSCI. Neither MSCI nor any other party involved in or related to compiling, computing or creating the MSCI data makes any express or implied warranties or representations with respect to such data (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to any such data. Without limiting any of the foregoing, in no event shall MSCI, any of its affiliates or any third party involved in or related to compiling, computing or creating the data have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages. No further distribution or dissemination of the MSCI data is permitted without MSCI’s express written consent.

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03 ASIAN MASTERS FUND | QUARTERLY INVESTMENT UPDATE | September 2017

INVESTMENT OBJECTIVEAUF seeks to provide investors with long-term exposure to Asia ex-Japan equities while maintaining broad diversification. Further, it aims to achieve a high, real rate of return on invested capital, within acceptable risk parameters.

INVESTMENT STRATEGYAUF aims to invest in a diversified portfolio of underlying funds managed by highly experienced Asian equity fund managers that have strong investment track records in both bull and bear markets. The Fund invests in both regional (i.e. Asia ex-Japan) funds and single country funds.

RISKS Like all investments, an investment in the Fund carries risks that may result in the loss of the invested income or principal. In addition to the general risks of investing, specific risks associated with investing in the Fund include, but are not limited to, the Asian markets’ equity risk, sovereign risk and currency risk. For further information about the risks of investing in the product see Section 3 in the Prospectus.

ABOUT WALSH & COMPANY The Walsh & Company Group is a Sydney based specialist global fund manager established in 2007. The Group has approximately $5 billion of assets under management across global equities, residential and commercial property, private equity, fixed income and sustainable and social investments.

We provide investors access to unique investment strategies not readily accessible to investors and focus on building high quality, diversified portfolios.

CONTACTAdam Coughlan Head of Distribution T: (02) 8662 9792 E: adam.coughlan@walshandco.com.au

NSW/WA Emmanuel Vergara Key Account Manager T: (02) 9432 3023 E: emmanuel.vergara@walshandco.com.au

VIC/TAS/SA Charlie Wapshott Key Account Manager T: (03) 9411 4066 E: charlie.wapshott@walshandco.com.au

NSW/QLD Reuban Siva Business Development Manager T: (02) 8662 9790 E: reuban.siva@walshandco.com.au