THE WEALTH CONNECTION

Investment & Portfolio Review

Date: 9/05/2019
Review Period: 1/01/2019 to 31/03/2019
Author: Nathan Hancock

1. Quarterly Review

1.1 Lonsec Report [See Appendix 1.]

[Summary]

1.2 Quarterly Asset Allocation changes

[Summary]

Defensive

Benchmark Ranges Last Qtr. This Qtr. Change

Australian Shares 8% 5-11 8.0 7.0 -1.0
International Shares 8% 5-11 8.0 8.0 -
Domestic Property 4% 1-7 4.0 4.0 -
International Property 0%
Listed Infrastructure 0%
Australian Fixed Interest 28% 19-39 27.5 27.5 -
International Fixed Interest 27% 16-36 27.0 27.0 -
Cash 25% 15-35 25.5 26.5 +1.0
Growth 20% 20% 19%
Defensive 80% 80% 81%

Conservative

Benchmark Ranges Last Qtr. This Qtr. Change

Australian Shares 16% 12-22 16.0 15.0 -1.0
International Shares 16% 12-22 16.0 16.0 -
Domestic Property 6% 3-9 6.0 6.0 -
International Property 0%
Listed Infrastructure 2% 0-6 2.0 2.0 -
Australian Fixed Interest 26% 17-37 25.5 25.0 -0.5
International Fixed Interest 24% 13-33 24.0 24.5 +.05
Cash 10% 0-20 10.5 11.5 +1.0
Growth 40% 40% 39%
Defensive 60% 60% 61%
Balanced

Benchmark Ranges Last Qtr. This Qtr. Change

Australian Shares 23% 16-30 23.0 22.0 -1.0
International Shares 26% 18-34 26.0 26.0 -
Domestic Property 6% 3-9 6.0 6.0 -
International Property 2% 0-5 2.0 2.0 -
Listed Infrastructure 3% 0-6 3.0 3.0 -
Australian Fixed Interest 18% 10-28 17.5 17.5 -
International Fixed Interest 17% 8-24 17.0 17.0 -
Cash 5% 0-15 5.5 6.5 +1.0
Growth 60% 60% 59%
Defensive 40% 40% 61%

Growth

Benchmark Ranges Last Qtr. This Qtr. Change

Australian Shares 32% 22-42 32.0 31.0 -1.0
International Shares 36% 26-46 36.0 36.0 -
Domestic Property 7% 4-10 7.0 7.0 -
International Property 2% 0-5 2.0 2.0 -
Listed Infrastructure 3% 0-6 3.0 3.0 -
Australian Fixed Interest 10% 5-15 9.5 9.0 -0.5
International Fixed Interest 8% 4-12 8.0 8.5 +0.5
Cash 2% 0-10 2.5 3.5 +1.0
Growth 80% 80% 79%
Defensive 20% 20% 21%

High Growth

Benchmark Ranges Last Qtr. This Qtr. Change

Australian Shares 41% 31-51 41.0 40.0 -1.0
International Shares 47% 37-57 47.0 47.0 -
Domestic Property 7% 4-10 7.0 7.0 -
International Property 2% 0-5 2.0 2.0 -
Listed Infrastructure 3% 0-6 3.0 3.0 -
Australian Fixed Interest 0%
International Fixed Interest 0%
Cash 0% 0-10 0.0 1.0 +1.0
Growth 100% 100% 99%
Defensive 0% 1%
 1.3 Portfolio list performance previous quarter [See Appendix 2.]

[Summary]

1.4 Agreed Model Portfolio actions

[Summary]

2. Annual Review [Complete 30 June]

2.1 Portfolio list performance previous year [See Appendix 3.]

[Summary]

2.2 Changes to investments in Model

[Summary]

2.3 Portfolio actions to take

[Summary]
APPENDIX
1. LONGSEC REPORT
2. MODEL PORTFOLIO LIST PERFORMANCE
(QUARTER)
3. MODEL PORTFOLIO LIST PERFORMANCE
(ANNUAL)
1. LONGSEC REPORT
 2. Model Portfolio List Performance (Quarter)
Investment Return
Managed Portfolio
Quarterly Benchmark
Investment APIR Code Quarterly Return Variance Lonsec Recommendation
Return
Domestic Equities
Allan Gray Australia Equity Fund Class A Units ETL0060AU 7.26% 9.41% -2.15% Recommended
Bennelong ex-20 Australian Equities Fund BFL0004AU 9.26% 0.00% 9.26% Recommended
Colonial First State Wholesale Small Companies - Core CMI0111AU 10.80% 10.80% 0.00% Recommended
IML Australian Share Fund IML0002AU 8.12% 9.41% -1.29% Highly Recommended
Vanguard Australian Shares Index Fund VAN0002AU 9.34% 9.41% -0.07% Highly Recommended
International Equities
Aberdeen Emerging Opportunities Fund ETL0032AU 9.31% 6.90% 2.41% Investment Grade
9.15% 9.15% 0.00% Investment Grade
Lazard Global Small Cap Fund (W Class) LAZ0012AU
Magellan Global Fund MGE0001AU 12.95% 11.94% 1.01% Recommended
MFS Global Equity Trust MIA0001AU 14.00% 11.94% 2.06% Recommended
Vanguard Wholesale International Shares Index Fund (Hedged) VAN0105AU 9.24% 9.24% 0.00% Highly Recommended
Domestic Property
Vanguard Property Securities Index Fund VAN0004AU 5.39% 5.48% -0.09% Highly Recommended
UBS Property Securities Fund SBC0816AU 7.72% 5.48% 2.24% Investment Grade
International Property
Resolution Capital Global Property Securities Fund WHT0015AU 3.81% 0.00% 3.81% Highly Recommended
Infrastructure
Magellan Infrastructure Fund MGE0002AU 6.91% 0.00% 6.91% Highly Recommended
Domestic Fixed Interest
BT Fixed Interest Wholesale Trust RFA0813AU 2.56% 0.00% 2.56% Recommended
Kapstream Wholesale Absolute Return Income Fund HOW0052AU 1.39% 0.00% 1.39% Recommended
BetaShares Australian Bank Senior Floating Rate Bond ETF (QPON) QPON 1.65% 0.00% 1.65% Recommended
International Fixed Interest
PIMCO Global Bond Fund - Wholesale Class ETL0018AU 1.99% 1.81% 0.18% Highly Recommended
Vanguard International Fixed Interest Index (Hedged) VAN0103AU 1.41% 1.43% -0.02% Highly Recommended
Cash
BetaShares Australian High Interest Cash ETF (AAA) AAA 0.49% 0.00% 0.49% Recommended
Generic Cash 0.26% 0.26% 0.00%

Listed Portfolio
Quarterly
Investment APIR Code Quarterly Return Variance Lonsec Recommendation
Benchmark Return
Domestic Equities
Commonwealth Bank Ltd (CBA) CBA $70.97 $70.64 $0.33 Investment Grade
Westpac Banking Corporation (WBC) WBC $24.48 $26.18 ($1.70) Investment Grade
Wesfarmers Ltd (WES) WES $30.65 $34.48 ($3.83) Investment Grade
$32.39 $39.05 ($6.66) Investment Grade
Telstra Ltd (TLS) TLS
BHP Ltd (BHP) BHP $11.55 $13.11 ($1.56) Investment Grade
Transurban Group Ltd (TCL) TCL $6.65 $7.30 ($0.65) Investment Grade
Sydney Airports Group (SYD) SYD 7.26% 9.41% -2.15% Recommended
Allan Gray Australia Equity Fund Class A Units ETL0060AU 9.26% 0.00% 9.26% Recommended
Bennelong ex-20 Australian Equities Fund BFL0004AU 10.80% 10.80% 0.00% Recommended
Colonial First State Wholesale Small Companies - Core CMI0111AU 8.12% 9.41% -1.29% Highly Recommended
IML Australian Share Fund IML0002AU 9.22% 9.29% -0.07% Highly Recommended
SPDR ASX 200 ETF (STW) STW $70.97 $70.64 $0.33 Highly Recommended
International Equities
Aberdeen Emerging Opportunities Fund ETL0032AU 9.31% 6.90% 2.41% Investment Grade
Lazard Global Small Cap Fund (W Class) LAZ0012AU 9.15% 9.15% 0.00% Investment Grade
Magellan Global Fund MGE0001AU 12.95% 11.94% 1.01% Recommended
MFS Global Equity Trust MIA0001AU 14.00% 11.94% 2.06% Recommended
iShares Global 100 ETF (IOO) IOO -20.15% 0.00% -20.15% Recommended
Domestic Property
SPDR S&P/ASX 200 Listed Property Fund (SLF) SLF 5.16% 5.32% -0.16% Recommended
UBS Property Securities Fund SBC0816AU 7.72% 5.48% 2.24% Investment Grade
International Property
Resolution Capital Global Property Securities Fund WHT0015AU 3.81% 0.00% 3.81% Highly Recommended
Infrastructure
Magellan Infrastructure Fund MGE0002AU 6.91% 0.00% 6.91% Highly Recommended
Domestic Fixed Interest
BT Fixed Interest Wholesale Trust RFA0813AU 2.56% 0.00% 2.56% Recommended
Kapstream Wholesale Absolute Return Income Fund HOW0052AU 1.39% 0.00% 1.39% Recommended
BetaShares Australian Bank Senior Floating Rate Bond ETF (QPON) QPON 1.65% 0.00% 1.65% Recommended
Vanguard Australian Fixed Interest Index ETF (VAF) VAF 3.02% 0.00% 3.02% Recommended
International Fixed Interest
PIMCO Global Bond Fund - Wholesale Class ETL0018AU 1.99% 1.81% 0.18% Highly Recommended
Vanguard International Fixed Interest Index (Hedged) VAN0103AU 1.41% 1.43% -0.02% Highly Recommended
Cash
BetaShares Australian High Interest Cash ETF (AAA) AAA 0.49% 0.00% 0.49% Recommended
Generic Cash 0.26% 0.26% 0.00% 0

Managed Passive Portfolio

Quarterly
Investment APIR Code Quarterly Return Variance Lonsec Recommendation
Benchmark Return
Domestic Equities
SPDR ASX 200 ETF (STW) STW 9.22% 9.29% -0.07% Highly Recommended
BetaShares - Managed Risk Australian Share Fund (AUST) AUST 7.58% 9.29% -1.71% Recommended
IML Australian Share Fund IML0002AU 8.12% 9.41% -1.29% Highly Recommended
Vanguard Australian Shares Index Fund VAN0002AU 9.34% 9.41% -0.07% Highly Recommended
International Equities
BetaShares - Managed Risk Global Share Fund (WRLD) WRLD 9.48% 11.94% -2.46% Recommended
Magellan Global Fund MGE0001AU 12.95% 11.94% 1.01% Recommended
Vanguard Wholesale International Shares Index Fund (Hedged) VAN0105AU 9.24% 9.24% 0.00% Highly Recommended
Domestic Property
Vanguard Australian Property Securities Index Fund VAN0004AU 5.39% 5.48% -0.09% Highly Recommended
International Property
Vanguard International Property Securities Index Fund VAN0018AU 6.07% 6.06% 0.01% Recommended
Infrastructure
Magellan Infrastructure Fund MGE0002AU 6.91% 0.00% 6.91% Highly Recommended
Domestic Fixed Interest
Kapstream Wholesale Absolute Return Income Fund HOW0052AU 1.39% 0.00% 1.39% Recommended
Vanguard Australian Fixed Interest Index Fund VAN0001AU 3.01% 0.00% 3.01% Highly Recommended
International Fixed Interest
Vanguard International Fixed Interest Index (Hedged) VAN0103AU 1.41% 1.43% -0.02% Highly Recommended
Cash
BetaShares Australian High Interest Cash ETF (AAA) AAA 0.49% 0.00% 0.49% Recommended
Generic Cash 0.26% 0.26% 0.00% 0

Managed Passive Portfolio

Quarterly
Investment Quarterly Return Variance Lonsec Recommendation
Benchmark Return
Alternative
Atrium Evolution Series Diversified - AEF 5 COL0029AU 3.47% 3.47% 0.00% Recommended
Atrium Evolution Series Diversified - AEF 7 COL0030AU 5.64% 5.64% 0.00% Recommended
Atrium Evolution Series Diversified - AEF 9 COL0031AU 6.86% 6.86% 0.00% Recommended
 3. Model Portfolio List Performance (Annual)

Investment Return
Managed Portfolio
Annual Benchmark Lonsec
Investment APIR Code Annual Return Variance
Return Recommendation
Domestic Equities
Allan Gray Australia Equity Fund Class A Units ETL0060AU
Bennelong ex-20 Australian Equities Fund BFL0004AU
Colonial First State Wholesale Small Companies - Core CMI0111AU
IML Australian Share Fund IML0002AU
Vanguard Australian Shares Index Fund VAN0002AU
International Equities
Aberdeen Emerging Opportunities Fund ETL0032AU
Lazard Global Small Cap Fund (W Class) LAZ0012AU
Magellan Global Fund MGE0001AU
MFS Global Equity Trust MIA0001AU
Vanguard Wholesale International Shares Index Fund (Hedged) VAN0105AU
Domestic Property
Vanguard Property Securities Index Fund VAN0004AU
UBS Property Securities Fund SBC0816AU
International Property
Resolution Capital Global Property Securities Fund WHT0015AU
Infrastructure
Magellan Infrastructure Fund MGE0002AU
Domestic Fixed Interest
BT Fixed Interest Wholesale Trust RFA0813AU
Kapstream Wholesale Absolute Return Income Fund HOW0052AU
BetaShares Australian Bank Senior Floating Rate Bond ETF (QPON) QPON
International Fixed Interest
PIMCO Global Bond Fund - Wholesale Class ETL0018AU
Vanguard International Fixed Interest Index (Hedged) VAN0103AU
Cash
BetaShares Australian High Interest Cash ETF (AAA) AAA
Generic Cash

Listed Portfolio
Quarterly Benchmark Lonsec
Investment APIR Code Quarterly Return Variance
Return Recommendation
Domestic Equities
Commonwealth Bank Ltd (CBA) CBA
Westpac Banking Corporation (WBC) WBC
Wesfarmers Ltd (WES) WES

Telstra Ltd (TLS) TLS

BHP Ltd (BHP) BHP
Transurban Group Ltd (TCL) TCL
Sydney Airports Group (SYD) SYD
Allan Gray Australia Equity Fund Class A Units ETL0060AU
Bennelong ex-20 Australian Equities Fund BFL0004AU
Colonial First State Wholesale Small Companies - Core CMI0111AU
IML Australian Share Fund IML0002AU
SPDR ASX 200 ETF (STW) STW
International Equities
Aberdeen Emerging Opportunities Fund ETL0032AU
Lazard Global Small Cap Fund (W Class) LAZ0012AU
Magellan Global Fund MGE0001AU
MFS Global Equity Trust MIA0001AU
iShares Global 100 ETF (IOO) IOO
Domestic Property
SPDR S&P/ASX 200 Listed Property Fund (SLF) SLF
UBS Property Securities Fund SBC0816AU
International Property
Resolution Capital Global Property Securities Fund WHT0015AU
Infrastructure
Magellan Infrastructure Fund MGE0002AU
Domestic Fixed Interest
BT Fixed Interest Wholesale Trust RFA0813AU
Kapstream Wholesale Absolute Return Income Fund HOW0052AU
BetaShares Australian Bank Senior Floating Rate Bond ETF (QPON) QPON
Vanguard Australian Fixed Interest Index ETF (VAF) VAF
International Fixed Interest
PIMCO Global Bond Fund - Wholesale Class ETL0018AU
Vanguard International Fixed Interest Index (Hedged) VAN0103AU
Cash
BetaShares Australian High Interest Cash ETF (AAA) AAA
Generic Cash

Managed Passive Portfolio

Investment APIR Code

Domestic Equities
SPDR ASX 200 ETF (STW) STW
BetaShares - Managed Risk Australian Share Fund (AUST) AUST
IML Australian Share Fund IML0002AU
Vanguard Australian Shares Index Fund VAN0002AU
International Equities
BetaShares - Managed Risk Global Share Fund (WRLD) WRLD
Magellan Global Fund MGE0001AU
Vanguard Wholesale International Shares Index Fund (Hedged) VAN0105AU
Domestic Property
Vanguard Australian Property Securities Index Fund VAN0004AU
International Property
Vanguard International Property Securities Index Fund VAN0018AU
Infrastructure
Magellan Infrastructure Fund MGE0002AU
Domestic Fixed Interest
Kapstream Wholesale Absolute Return Income Fund HOW0052AU
Vanguard Australian Fixed Interest Index Fund VAN0001AU
International Fixed Interest
Vanguard International Fixed Interest Index (Hedged) VAN0103AU
Cash
BetaShares Australian High Interest Cash ETF (AAA) AAA
Generic Cash

Managed Passive Portfolio

Quarterly Benchmark Lonsec
Investment Quarterly Return Variance
Return Recommendation
Alternative
Atrium Evolution Series Diversified - AEF 5 COL0029AU
Atrium Evolution Series Diversified - AEF 7 COL0030AU
Atrium Evolution Series Diversified - AEF 9 COL0031AU