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Performance - $10k since inception

Portfolio Benchmark

1300 880 160Intelligentinvestor.com.au

Intelligent Investor Equity Growth Portfolio

Monthly Update31 May 2020

Performance to 31 May 2020 (after fees)

1 mth 3 mths 6 mths 1 yr 2 yrs 3 yrs 4 yrs S.I. (p.a)

Intelligent Investor Equity Growth Portfolio 3.5% 0.9% –7.4% 0.8% 2.6% 4.4% 5.1% 7.5%

S&P ASX 200 Accumulation Index 4.4% –9.9% –14.6% –6.7% 1.8% 4.3% 6.0% 5.5%

Excess to Benchmark –0.8% 10.8% 7.2% 7.5% 0.8% 0.0% –0.9% 2.0%

Asset allocation as at 31 May 2020

Consumer Discretionary 23.4%

Information Technology 21.8%

Communication Services 16.4%

Cash 10.0%

Industrials 7.3%

Real Estate 7.1%

Financials 5.1%

Health Care 4.4%

Materials 3.3%

Energy 1.3%

Top 5 holdings as at 31 May 2020

Frontier Digital Ventures (FDV) 7.6%

Audinate (AD8) 5.9%

Pinnacle Investment Mmgt Group (PNI) 5.2%

RPMGlobal Holdings (RUL) 5.2%

Star Entertainment Group (SGR) 5.1%

Performance of $10,000 since inception as at 31 May 2020

Intelligent Investor Equity Growth Portfolio S&P ASX 200 Accumulation Index

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M O N T H L Y U P D A T E 3 0 A P R I L 2 0 2 0About UsWith a 20-year track record of beating the market, clear and straightforward language, and an ‘open book’ approach to stock research and analysis, Intelligent Investor offers actionable, reliable recommendations on ASX-listed stocks.

In 2014, Intelligent Investor became a part of the InvestSMART family, extending our expertise to even more Australian investors seeking quality analysis and advice.

Portfolio overviewThe Intelligent Investor Equity Growth Portfolio is a concentrated portfolio of 10 - 35 Australian-listed stocks. The Portfolio invests in a mix of large, mid and small cap stocks, focusing on highly profitable industry leaders that have long-term opportunities to reinvest profits at high rates of return.

As contrarian value investors, producing safe and attractive returns in the stock market means sticking to a disciplined and repeatable process. We do this by patiently waiting for overreactions in share prices, so we can buy at a large discount to our estimate of intrinsic value.

Investment objectiveTo achieve a return of 1% above the S&P/ASX 200 Accumulation Index per annum over five year rolling periods by investing in a diverse mix of Australian equities and cash.

Who manages the investment?Nathan Bell, has over 20 years of experience in portfolio management and research and is supported by our Investment Committee, chaired by Paul Clitheroe. Nathan returned to Intelligent Investor in 2018 as Portfolio Manager, having previously been with Intelligent Investor for nine years, spending five of those as Research Director. Nathan has a Bachelor of Economics and subsequently completed a Graduate Diploma of Applied Investment and Management. Nathan is a CFA Charterholder.

Key Fund Details

INVESTMENT CATEGORY

A portfolio of individually-selected Australian Equities

INVESTMENT STYLE

Active Stock Selection, Value Investing Approach

BENCHMARK

S&P/ASX 200 Accumulation Index

INCEPTION DATE

1 July 2015

SUGGESTED INVESTMENT TIMEFRAME

5+ years

NUMBER OF STOCKS

10 - 35

INVESTMENT FEE

0.60% - 0.97% p.a.

PERFORMANCE FEE

N/A

MINIMUM INITIAL INVESTMENT

$25,000

STRUCTURE

Professionally Managed Account (PMA)

SUITABILITY

Suitable for investors who are seeking domestic equity exposure with a growing stream of dividends to offset inflation

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M O N T H L Y U P D A T E 3 1 M A Y 2 0 2 0

On the flipside, Newhope Coal ’s share price fell

13% as its share price continues to bounce around

without making any progress, while Sydney Airport

fell 7%, as expectations for a slow recovery in

international travel increase.

Frontier Digital Ventures ’ share price also fell 5%

despite the increased likelihood that its 30% stake

in Zameen (Pakistan’s version of realestate.com.au)

will be acquired in the next couple of years at a high

price.

In a quiet month of transactions, we added pub

owner ALE Property. ALE owns many properties

that are rented at below-market rates and ripe for

development over the next decade, which should

ensure steady growth in distributions and handy

capital gains as pubs reopen.

If you have any questions, as always, please call us on

1300 880 160 or email us at info@intelligentinvestor.

com.au.

Intelligent Investor Equity Growth Portfolio 31 May 2020 update

All businesses are loosely functioning disasters,

and some are profitable despite it. At 30,000 feet,

the world is beautiful and orderly. On the ground,

it’s chaotic and confusing. Nothing ever goes to

plan. Surprises lurk around every corner. Things

are constantly breaking. Someone is always upset.

Mistakes are made daily. Expecting anything less

is being out of touch with reality. And remember,

just because you’re now a ware of it doesn’t change

reality. It was that way before, you just didn’t

realize it.

— Brent Beshore

The fund increased 3.5% this month compared to the

index’s 4.4% return. There wasn’t much stock-specific

news during the month, but massive government and

central bank stimulus programs along with receding

Covid-19 infections in many countries has sent share

prices skyward.

With valuations for high growth stock in particular

largely recovering back to their peaks, it will be

interesting to see how the market performs later

in the year when high valuations collide with slow

economic recoveries, high unemployment and less

stimulus.

With several economies starting to reopen after

strict lockdowns it ’s perhaps not surprising that more

cyclical names were the month’s best performers.

EML, which will benefit as shopping centres reopen,

led the way, increasing 30%. Flight Centre increased

19%, auto retailer Bapcor 17%, and Seek and James

Hardie Industries both increased 16%.

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Important informationThis document has been prepared by InvestSMART Funds Management Limited (ABN 62 067 751 759, AFSL 246441) (InvestSMART), the responsible entity of the [Intelligent Investor Equity Growth Portfolio] (Fund) and issuer of units in the Fund.

While every care has been taken in the preparation of this document, InvestSMART makes no representations or warranties as to the accuracy or completeness of any statement in it. To the maximum extent permitted by law, neither InvestSMART, its directors, employees or agents accept any liability for any loss arising in relation to this document.

This document is not an endorsement that this portfolio is appropriate for you and should not be relied upon in making a decision to invest in this product. You should always consider the relevant disclosure document (including Product Disclosure Statement, Investment Menu, and Financial Services Guide along with any accompanying materials) and/or seek professional advice before making any investment decision. Disclosure documents for financial products offered by InvestSMART can be downloaded from the InvestSMART website or obtained by contacting 1300 880 160.

The document provides general financial information only. InvestSMART has NOT considered your personal objectives, financial situation and needs when preparing this document. You should consider your individual objectives, financial situation and needs and seek professional advice where necessary before making any investment decision.

Past performance is not a reliable indicator of future performance. InvestSMART does not assure nor guarantee the performance of any financial products offered.

InvestSMART, its associates and their respective directors and other staff each declare that they may, from time to time, hold interests in securities that are contained in this investment product.

Intelligent Investorsupport@investsmart.com.au

www.intelligentinvestor.com.auPO Box 744, QVB NSW 1230

1300 880 160