All Star Funds// All Star KFM Income Fund Kaplan Funds Management July 2013

1. All Star Funds// All Star KFM Income Fund Kaplan Funds Management July 2013

2. Disclaimer Past performance is not necessarily indicative of future performance. This document has been prepared and issued by Ventura Investment Management Limited, ABN 49 092 375 258, AFSL 253045 (Ventura). Equity Trustees Limited ABN 46 004 031 298, AFSL 240975 (EQT) is the responsible entity of the Ventura and All Star series of funds. Information contained in this document is of a general nature only. It is not intended as advice, as it does not take into account your individual objectives, financial situation or needs. Investment can only be made on an application form attached to the Product Disclosure Statement (PDS) or through an IDPS operator. Copies of the PDS are available from Ventura or your financial planner.

3. Contents • Investment Overview/Environment • Portfolio Mix & Activity • Buy & Write Positioning & Returns • Property Trusts • Hybrids • Utilities • Performance

4. Investment overview - KFM Investment Environment • QE tapering –liquidity withdrawal • China credit squeeze-growth withdrawal • Economy ill prepared for mining slowdown, policy failure. • Combination of above creates a challenging environmentfor an economy in a transition phase • Stimulus from interest rates & currency to continue • Weak economy will cap the US linked rise in government bond yields. All Star KFM Income Fund - Investment changes • De-risked portfolio over past 6 months • Reduced buy & writes • Reduced utilities • More defensive mix in property trusts • Improved hybrid yields • Increased cash/taking profits • Currently gradually rebuilding buy & write exposure as volatility returns after equity market correction • Delivered strong FY13 performance of 10.6% (net) with low volatility of 3.8%.

5. Investment Sectors Sector attributes and positioning • Buy & Writes: high volatility & low equity valuation • Positioning: underweight/low volatility but rising/equity valuations moderate • Interest Rate Securities: good credit & wide spreads & redeemable structures • Positioning: overweight/good credit/wide spreads/acceptable structures • Utilities: regulated businesses & asset growth • Positioning: underweight/growing regulatory risk/bond yield sensitive • Property Trusts: leasing model & quality assets & NTA discount • Positioning: neutral/yields normalised/price near NTA

6. Portfolio Mix Sector allocation (30 June 2013) Sector ranges

7. Portfolio Activity Active sector management (6 months to 30 June 2013) • De-risked portfolio over last 6 months with reduction in buy & write equities exposure and reduction in utilities. Buy & writes reduced by 11% from Feb-Apr and then increased 5% in June.

8. Buy & Write Exposure Buy & Writes/highest risk sector /Active Management • Risk reduction into rising equities market with low volatility • Recently re-building buy & write positions following equities correction and lift in volatility

9. Buy & Write Returns – dividend focus Buy & Write – looking attractive again

10. Buy & Write Returns – dividend focus Buy & Write – looking attractive again

11. Share Price & Volatility Buy & Write looking attractive again-CBA volatility rising & share price correction ahead of Aug 13 dividend CBA Vol

12. Share Price & Volatility Buy & Write looking attractive again-TLS volatility rising & share price correction ahead of Aug 13 dividend TLS Vol

13. Property Trusts Security selection – property trusts • Switched into SCP - by exiting MGR, DXS, LEP and reduced CPA • Rationale: lower risk with higher yield and higher discount to NTA • Maintain property trust weighting at neutral- suitable for current environment. Shopping Centres Australasia Property Group (SCP)- 2.5% weight • Spun out of WOW comprised of 69 shopping centres (subregional, neighbourhood and standalone) • Bought $1.40 listing price (7.4% yield), now trading at $1.61 (6.4% yield) Inclusion assessment: • Primarily a yield play based on 7.4% fixed yield being attractive in a falling interest rate environment with WOW credit. • WOW paying 61% of gross rent, 15 yr leases plus 2 year rental guarantee on vacancies. Forecast risk low. • Limited rental growth but priced at 11% discount to NTA, young portfolio with little capex.

14. Property Trusts Sector Premium to NTA- less attractive

15. Hybrids Security selection – hybrids & corporate bonds • Strategic preference for high margin floating rate hybrids in current environment. • High fixed margins help protect returns as rates fall and the floating rate structure benefits if rates rise. • Quality credit offering good margins. Basel III triggers acceptable/remote • Exited low return sub notes after good rally (WOWHC -4.6% yield to maturity) • Replaced with: SUNPD -285bps, NABPA -320bps, MQGPA -400bps (5.6%-6.7% yield) • SUNPD: 10 yr, Basel III tier 2 Sub Note, non-viability trigger/capital risk at $2.50 • NABPA: 6 yr, Basel III tier 1 Conv. Pref, CET1 & non-viability trigger/capital risk $6.00 • MQGPA: 6 yr, Basel III tier 1 Conv. Pref, non-viability trigger/capital risk $8.00 • Listed Hybrid & Corporate Bond Market Capitalisation $37bn, $600m per month turnover

16. Utilities Security selection – utilities • Reduced DUE & SKI after strong rally, total reduction 3% • Environment of QE tapering to pressure bond yields higher. • Utilities valuations more sensitive to bond yields/however utilities offer relatively high yields of around 6.5% - 7.5% justifying mild underweight position. • Manager favours buy & writes for investment allocation SKI & DUE share prices (2 year returns: 50% SKI, 39% DUE)

17. Performance Performance 30 June 2013 (net of fees) JP to update Inception : July 2007 APIR Code: VEN0007AU | Fees: MER 0.75%pa | Expense Recovery 0.10%pa | Performance Fee 15.38% above 1yr Interest Rate Swap

18. Performance Fund performance with 1/3rd volatility of S&P/ASX200 Fund vol 4.2% ASX vol 13..3% 18

19. Performance Portfolio yield Sector attribution 3 years June 2013 Yield by sector Portfolio Yield Margin above bank bills 19

20. Questions

21. Thank You