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Disclaimer

This presentation has been prepared by Watermark Global Leaders Fund Limited (Company) and Watermark Funds Management Pty Ltd (together Watermark). The information contained in this presentation is for information purposes only and has been prepared for use in conjunction with a verbal presentation and should be read in that context. The information contained in this presentation is not investment or financial product advice and is not intended to be used as the basis for making an investment decision. Please note that, in providing this presentation, Watermark has not considered the objectives, financial position or needs of any particular recipient. Watermark strongly suggests that investors consult a financial advisor prior to making an investment decision. This presentation is strictly confidential and is intended for the exclusive benefit of the institution to which it is presented. It may not be reproduced, disseminated, quoted or referred to, in whole

• r in part, without the express consent of Watermark.

No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation. To the maximum extent permitted by law, none of Watermark, its related bodies corporate, shareholders or respective directors, officers, employees, agents or advisors, nor any other person accepts any liability, including, without limitation, any liability arising out of fault or negligence for any loss arising from the use of information contained in this presentation. This presentation includes “forward looking statements”. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of Watermark and its officers, employees, agents or associates that may cause actual results to differ materially from those expressed or implied in such statement. Actual results, performance or achievements may vary materially from any projections and forward looking statements and the assumptions on which those statements are based. Watermark assumes no obligation to update such information. This presentation is not, and does not constitute, an offer to sell or the solicitation, invitation or recommendation to purchase any securities and neither this presentation nor anything contained in it forms the basis of any contract or commitment. The Company’s offer of securities is made pursuant to a prospectus issued by the Company and dated 27 October 2016, which describes the terms

• f the offer (Offer Document). This Offer Document is available at www.wfunds.com.au . Prospective investors should consider the Offer Document in deciding whether to acquire securities under

the offer. Prospective investors who want to acquire securities under the offer will need to complete an application form that is in or accompanies the Offer Document. This presentation does not constitute an offer to sell, or a solicitation of an offer to buy, any securities in the United States. None of the securities discussed in this presentation have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (Securities Act) or the securities laws of any state or other jurisdiction of the United States, and may not be offered or sold in the United States except in compliance with the registration requirements of the Securities Act and any other applicable securities laws or pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and any other applicable securities laws. NOT FOR DISTRIBUTION IN THE UNITED STATES

Watermark Global Leaders Fund Limited

• The Company aims to achieve attractive returns that are:
• Uncorrelated to traditional asset classes.
• Relatively low volatility compared with the share market.
• The fund is expected to be largely hedged with long and short

portfolios of roughly equal value and composition, with the

• bjective to minimise market risk, industry risk and currency risk.
• Watermark is an experienced Australian manager with a strong

track record implementing market neutral strategies of this nature.

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Watermark Funds Management

• The

Company’s Portfolio will be managed by Watermark Funds Management Pty Ltd (Watermark).

• Watermark has a strong track record across its three long/short portfolios.

Its flagship fund, Australian Leaders Fund Limited, has delivered a 14% p.a. return since its inception in 2004.

• Watermark’s market neutral funds have typically delivered returns that are

negatively correlated to the Australian share market.

• Watermark is a specialist long/short equity investor with a team of eight

investment professionals who have deep expertise across a range of industries.

• Watermark’s CIO has been a professional investor for over 25 years, with

12 years managing hedge funds.

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Past performance is not indicative of future performance and the performance of the Company could be significantly different to the performance of other portfolios managed in the past by the Manager. There can be no certainty that the performance of the Company will be similar to the historic performance of WMK and WMNT.

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Australian Managers Amongst the Best Globally

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0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 5.5 6 6.5 7 7.5 8 8.5 9 9.5 10 10.5 11 11.5 12 12.5 13 13.5 14 14.5 15 15.5 16 16.5 17 17.5 18 18.5 19 19.5 20 20.5 21 21.5 22 22.5 23 23.5 24 24.5 25

Returns %

Watermark Market Neutral Fund Ltd Henderson Perpetual Bennelong Ellerston Watermark Market Neutral Trust Regal

Bennelong Long Short Equity Fund, Ellerston Australian Market Neutral Fund, Henderson Absolute Return Aus Equity Fund, Perpetual Pure Equity Alpha Fund, Regal Tasman Market Neutral Fund, Watermark Market Neutral Trust.

Using the Preqin database of 453 global market neutral funds WMNT is ranked:

• 20th for annualised return since inception
• 23rd for Sortino Ratio
• 22nd for Sharpe Ratio

This chart displays a normal distribution of the annualised net returns for 453 market neutral strategies in the Preqin database as at the date of the prospectus. It is not a forecast and does not represent the future behaviour of the Company. Past performance is not indicative of future performance and the performance of the Company could be significantly different to the performance of other portfolios managed in the past by the Manager. There can be no certainty that the performance of the Company will be similar to the historic performance of WMK/WMNT.

Justin Braitling – CIO

Justin has over 25 years’ experience investing in Australian and international securities. Prior to establishing Watermark in 2003, Justin spent 10 years as an investment analyst and portfolio manager with the successful equities team at Bankers Trust. Justin is the Chairman

• f Australian Leaders Fund Ltd and a director.

Tom Richardson – Portfolio Manager

Tom is responsible for coverage of Basic Industries. He joined Watermark in December 2009. Prior to this, Tom began his career as an Investment Analyst with Renaissance Asset Management in 2006. Tom holds a Bachelor of Aerospace Engineering from the University of Sydney and is a CFA charterholder.

Simon Felton – Portfolio Manager (new)

Simon is responsible for coverage of Industrials. He joined Watermark in September 2016. He was previously an investment analyst at Platinum Asset Management for 12 years. Prior to this he was a lawyer at Blake Dawson Waldron specialising in mergers and acquisitions. Simon holds a Bachelor of Commerce and Bachelor of Laws from the University of New South Wales and is a CFA charterholder.

Joshua Ross – Investment Analyst

Joshua is responsible for coverage of the Consumer sectors. He joined Watermark in April 2010. He holds a Bachelor of Applied Finance and a Bachelor of Commerce (Accounting) from Macquarie University. Joshua is a CFA charterholder.

Omkar Joshi – Investment Analyst

Omkar is responsible for coverage of Financials. He joined Watermark in October 2013 after completing an accounting cadetship with KPMG and having worked as an equity research analyst in Credit Suisse's banks team. Omkar holds a Bachelor of Commerce (High Distinction) from the University of New South Wales. Omkar is a CFA and CMT charterholder.

Delian Entchev – Investment Analyst

Delian is responsible for coverage of the Technology, Media and Telecommunications sectors. He joined Watermark in August 2014. Prior to this, he was undertaking a cadetship with UBS as an Equity Research Analyst. Delian holds a Bachelor of Commerce (High Distinction) from the University of New South Wales.

Nick Cameron – Investment Analyst

Nick is responsible for coverage of the Healthcare sector. He joined Watermark in March 2015. He began his career in finance with KPMG in 2008, before moving into research roles with Credit Suisse and Deutsche Bank. Prior to joining the Watermark Nick was an investment analyst at GenesisCare. Nick has completed bachelor degrees in Science and Biotechnology and holds a PhD from Griffith University in the fields of Molecular Biology and Neuroscience.

The Watermark Investment Team

Tim Bolger– Chief Operating Officer

Tim is responsible for all non-investment functions at Watermark, including operations, distribution, marketing and compliance. Tim joined the Manager in 2014. He brings extensive experience in the development, marketing and distribution of investment and insurance products throughout Australia and internationally. Prior to joining the Manager, Tim was a Director of Distribution at Bennelong Funds

• Management. Tim holds a Bachelor of Arts and a Diploma in Law.

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• 40
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10 20 30 40 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 Long Portfolio Short Portfolio Gross Spread

How is Watermark different?

• In a market neutral strategy, returns are almost entirely dependent on the security

selection skills of the manager.

• The Manager is an experienced short seller.

7 Average Spread of 14%

Bars represent the gross return of ALF’s Long and Short Portfolios for each financial year ending on 30 June 2008 to 30 June 2016. Gross portfolio returns reflect the aggregate change in value of the Long and Short Portfolios and are calculated as a sum of the aggregate change in value (realised and unrealised) of positions in each portfolio in each financial year. The gross returns do not take account of fees and costs. The yellow line represents the ‘gross spread’ or difference between the gross return of the Long and Short Portfolios in each financial year. Neither the gross portfolio returns nor the ‘gross spread’ reflect returns on ALF shares over the relevant periods. For example, the gross portfolio returns do not take account of the relative size of ALF’s Long and Short Portfolios capital that is allocated to each portfolio nor the return on ALF’s cash holdings. Past performance information given in this chart relates to the portfolios of ALF and is given for illustration purposes only. It should not be relied upon as (and is not) an indication of future performance of the Company’s Portfolio. The actual results of the Company’s Portfolio could differ materially from those referred to in this chart, including because of the different strategies to be adopted by the Manager in connection with the Company’s Portfolio. Investors are reminded that when the market performs strongly, a market neutral portfolio will not have exposure to a positive market return as market risk is minimised. In such instances, a market neutral portfolio may underperform as it will have limited correlation to the positive market movement.

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Strong international performance

28% Spread

Index has been chosen for comparison purposes only. This chart is not intended to be an indication of future performance of any asset class, index or the Portfolio. The performance of the Long and Short Portfolios above is based on gross monthly returns and excludes management fees and other costs.

WMK’s international portfolio has delivered a 22.6% return after expenses in 15 months.

Investment Strategy

• Undertake detailed, fundamental research of global securities. We

employ an institutional approach to security selection that is both repeatable and transparent. This process is based on:

• Rigorous company engagement.
• Detailed qualitative and quantitative analysis for our proprietary

scorecard.

• Disciplined, risk-adjusted valuation methodology.
• Long/short portfolios are constructed independently, around the

best individual investment ideas, giving rise to a clear quality and value bias.

• Alpha is also created at a sector level, through industry ‘tilts’ that

align with our bottom up fundamental sector views.

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The Structure of a Market Neutral Fund

• Shareholder’s capital is retained in

cash earning interest.

• The long portfolio is funded from

short proceeds.

• As the long and short portfolios are of

equal value, the fund is fully hedged against share market movements.

• Fund

returns emerge from the

• utperformance of the long portfolio
• ver the short plus interest on cash.

‘Winners’ and ‘Losers’ within industries

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Materials Financials Healthcare TMT Consumer Industrials

L S L S L S L S L S L S

The winner and loser stocks referred to in the following pages are examples. They are provided solely to illustrate the Manager’s investment philosophy and process. They are not to be taken as any indication that the Company will invest in the example stocks or that the Company’s investments will perform in a similar fashion. Past performance is not indicative of future performance.

Financials

Sector is structurally challenged

1) Low policy rates continue to put pressure on net interest margins, profitability and returns. 2) Banks rely on credit growth, which is moderate at best. As rates normalise over time, the impact on asset quality will be exacerbated due to elevated leverage in the economy. 3) Regulatory pressures continue to build with higher capital requirements and litigation risks on the horizon.

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How we are positioned

• 1. ING and ABN are strong retail banks, well capitalised and

compliant with onerous capital requirements.

• 2. RBS’s margins are exposed to declining rates, material

exposure in ‘bad bank’ and further litigation charges to come.

• 3. Canadian banks are the most leveraged banks in the world

(20x), undercapitalised and poorly provisioned.

SHORT LONG

Canadian banks have outperformed

1 2 3 1 2 3 4

1) The mining sector has partially recovered following Chinese stimulus. Debt sustainability is a key risk in coming years. 2) An OPEC managed market should support oil prices for the medium term, however Big Oil is structurally challenged. 3) Large over-capacity in many heavy industries will depress returns for some time.

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How we are positioned

• 1. Industrial metals preferred over bulk commodities.

Preference for zinc, nickel and gold.

• 2. Big Oil is challenged through a dividend commitment

unsuited to their business model. Mid tier companies to outperform.

• 3. Downstream returns to fall as capital is redeployed

from upstream.

SHORT LONG 1 2 3 1 2 3

E&P performed relatively well, miners have struggled

Basic Industries

Commodity price rebound drives sector rally

100 200 300 400 500 600 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Brent Oil Energy Majors 200 400 600 800 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Industrial Commodity Prices MSCI Mining

Drug pricing & biosimilar risks hurt pharma/biotech

1) The US election campaign shed light on price gouging among biopharmaceutical and generic drug manufacturers. 2) Biosimilar pricing, adoption and interchangeability risks are

• underestimated. Pace of innovation and M&A acceleration

needed to reverse depressed biopharmaceutical valuations. 3) Medical Devices have become a ‘safehaven’ with limited exposure to the US election outcomes, stable growth and potential for further consolidation.

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How we are positioned

• 1. Longs: Merck provides exposure to innovative immuno-
• ncology therapies, a diversified portfolio and restructuring
• upside. Ionis’ pipeline setback was an attractive entry point.
• 2. Shorts: Novo-Nordisk is price gouging in diabetes, has

biosimilar exposure and a concentrated portfolio. Grifols has underinvested, is levered and has a disadvantaged portfolio.

• 3. Prefer owning innovative companies (CELG, MRK, IONS, AGN)

and selling commoditised concentrated portfolios (NOVO, GRF).

SHORT LONG

Marked sub-sector divergence in Healthcare

1 2 3 1 2 3

Healthcare

70 80 90 100 110 120 Jan-16 Apr-16 Jul-16 Oct-16 S&P 500 US Pharma US Biotech US Health Equipment

Technology-Media-Telecom (TMT)

Tech is leading the market; media/telco struggling

1) Semiconductor shares are expensive pushed up by M&A. Analog has high barriers to entry and structural growth. Conversely, logic is pressured by enterprise shifting to cloud, and competition. 2) Structural pressures remain in media as digital share of ad spend

• rises. Content remains king, but competition is heating up as

distribution companies move upstream to protect margins. 3) Telcos are struggling as broadband and mobile penetration matures, deflationary trends continue in shift from voice to data. Convergence is now starting to happen.

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How we are positioned

• 1. Long analog semis exposed to content growth. Short logic as

shift to cloud drives down returns.

• 2. Long undervalued content – Music. Short vulnerable

distribution businesses – TV Networks and Satellite TV.

• 3. Long telcos in ‘recovering’ markets and short telcos which are
• verearning or under competitive threat.

SHORT LONG

Internet shares account for half market growth

1 2 1 2 3 3

Auto, Manufacturing & Distribution

Car makers are out of favour given peak cycle concerns and costs for developing electric/autonomous vehicles. While the ‘internet of things’ & ‘industrial internet’ will drive productivity, they will also be highly disruptive. Distribution & logistics is adapting to rapid growth of e-

• commerce. Amazon now diversifying from retail targeting

industrial (B2B).

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How we are positioned

BMW highly profitable, model renewal pending, cheap at 8 times earnings. Tesla great car but not yet sustainably profitable, Solar City bails-out related party, balance sheet compromised. United Technologies leading aerospace & elevator (Otis) supplier, highly profitable, innovative jet engine winning share; Kone elevators – pressure on China profitability. Deutsche Post DHL (e-commerce beneficiary, Amazon a customer) vs. WW Grainger (losing business to Amazon).

SHORT LONG

Autos underperformed global mkts over 3 years

1 2 3 1 2 3

Industrials

75 80 85 90 95 100 105 110 115 2013 2014 2015 2016 Global Autos MSCI World

Consumer

Sector is expensive with limited pockets of growth

Buffet-style consumer companies are fully exploited, record valuations after deep cost-cutting and inflated margins. Online is structurally changing the retail landscape, half of online sales growth is being captured by Amazon. Traditional bricks & mortar retailers are investing heavily in online often cannibalising in-store sales. Chinese consumption and growth of the middle class hit by anti- corruption crack-down, starting to show green-shoots.

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How we are positioned

Pernod Ricard exposure to affluent Chinese consumer, unique brand portfolio, disciplined investment in building brand. H&M (Short) aggressive store rollout, poor trends in North America and China, weak online offering. Kroger disciplined pricing, best in class analytics and customer loyalty, attractive valuation.

SHORT LONG

10 15 20 25 30 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 MSCI World Consumer Staples MSCI World Consumer Discretionary

Consumer shares have re-rated post GFC (P/E)

1 2 3 1 2 3

Why Market Neutral?

• An active strategy – It is the opinion of the Directors that returns from shares could

be low in the medium term. Investors will not be able to rely on a rising share

• market. Instead they need to find a manager who can create value through an

active investment process.

• A hedge - All asset classes have benefited from excess liquidity leaving asset prices

and risks at elevated levels. In our view, diversification may not always protect you. There are few ways of avoiding market risk other than to hold cash or to hedge.

Why International Securities?

• A broader universe to identify mispriced ‘winners’ and ‘losers’.
• Watermark has established a strong track record in international shares.
• This is the only locally managed global market neutral fund on offer.

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International Performance Since Inception

Top 20 Longs Top 20 Shorts

Company Name Company Name

Ionis Pharmaceuticals, Inc. First Quantum Minerals Ltd. Merck & Co., Inc. King Digital Entertainment Plc Ambarella, Inc. Glencore plc Groupe Eurotunnel SE Repsol SA NXP Semiconductors NV Novo Nordisk A/S Class B Contact Energy Limited Grifols, S.A. Class A Wells Fargo & Company ITV plc Nintendo Co., Ltd. Synergy Resources Corporation Melco Crown Entertainment Limited StarHub Ltd Vivendi SA Kingfisher Plc

Top Performing International Positions - WMK

Performance of WMK International holdings since inception. The above table does not reflect the likely weightings of/positions in the Company’s portfolio. It is provided as an example only – it is not to be taken as an example of the optimal portfolio allocation, now or in the future.

Important Dates

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27 October 2016 Lodge the prospectus with ASIC / lodge Appendix 1A with ASX 7 November Offer Opens 2 December 2016 Broker Firm Offer closes 9 December 2016 Priority and General Offers close 16 December 2016 Allocation and holding statements dispatched 21 December 2016 Trading commences on ASX

Company name Watermark Global Leaders Fund Limited Investment Manager Watermark Funds Management ASX Codes Shares and Options WGF and WGFO Investment Strategy Global Equity Market Neutral Offer Price $1.10 per ordinary share Issue Size Min/Maximum/Overs $40m/$110m/$150m Offer Open 10 Nov 16 Offer Close Broker Firm 2 Dec 16 General Offer/Priority Offer 9 Dec 16 Shares Trading 21 Dec 16 Options Conditions 1 option per ordinary share Strike Price, Expiry $1.10, 16 Nov 2018 Investment Fees Management Fee 1.2% (plus GST) per annum Performance Fee 20% (plus GST) out-performance v RBA Cash Rate Syndicate Corporate Advisor Seed Partnerships Joint Lead Managers Taylor Collison Morgans CIMB Morgan Stanley Ord Minnett CBA Board Members: Rohan Hedley (Chairman/Independent Director) Philip Howard (Independent Director) Justin Braitling (Non-independent Director) Tim Bolger (Non-independent Director)

Terms of the Offer

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Authorised Intermediary and Joint Lead Manager

Hamish Nairn Taylor Collison Tel +61 8 8217 3908 hnairn@taylorcollison.com.au

Other Joint Lead Managers

Phillip Lee Hamish Head Ross Baildon Nathan Taylor Morgan CIMB Morgan Stanley Ord Minnett Commonwealth Securities Ltd Tel: +61 411 130 514 Tel: +61 422 621 888 Tel: +61 7 3214 5509 Tel: +61 2 9117 5057

philip.lee@morgans.com.au hamish.head@morganstanley.com rbaildon@ords.com.au Nathan.taylor@cba.com.au

Investment Manager

Justin Braitling Tom Richardson Simon Felton Tim Bolger Watermark Funds Management Watermark Funds Management Watermark Funds Management Watermark Funds Management CIO / Portfolio Manager Deputy Portfolio Manager Deputy Portfolio Manager COO Tel: 02 9252 0225 Tel: 02 9252 0224 Tel: 02 8047 7746 Tel: 02 9251 8227

braitling@wfunds.com.au richarson@wfunds.com.au felton@wfunds.com.au bolger@wfunds.com.au

Corporate Adviser

Chris Donohoe Will Spraggett Mary-Ann Baldock Seed Partnerships Seed Partnerships Seed Partnerships Tel: +61 413 315 631 Tel: + 61 400 535 577 Tel: +61 412 579 713

chris@seedpartnerships.com will@seedpartnerships.com mary-ann@seedpartnerships.com

More Information

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APPENDICES

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LONG PORTFOLIO SHORT PORTFOLIO Merck Grifols Vivendi Royal Bank of Scotland China Mobile Hennes & Mauritz Inpex Corporation Bank of Montreal Wells Fargo Canadian Imperial Bank of Commerce Royal Dutch Shell Advanced Micro Devices Inc Nokia Exxon Mobil Corp Novartis Boliden Hess Corporation IBM ING Groep Wal-Mart Stores

Largest Positions in WMK’s International Portfolio

WMK International holdings as at prospectus date. The above table does not reflect the likely weightings of/positions in the Company’s

• portfolio. It is provided as an example only – it is not to be taken as an example of the optimal portfolio allocation, now or in the future.

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Out of Favour Under Earning Deep Value In favour Over Earning Blue Sky Fads

Contrarian Momentum Create Value Destroy Value

Superior Returns Profitable Growth Well Managed Structurally Challenged Accounting Irregularities Poorly Managed

LONG SHORT

Investment Ideas

The above graphic is an example of how the Manager may conduct its research processes in seeking to identify investment ideas. This is provided as an example only and should not be taken as an indication of the sole research process undertaken, now or in the future.

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Concentration Active Factor Risk Hedge Liquidity Manage Financial Leverage Operating Leverage Volatility PORTFOLIO

PORTFOLIO RISK MONITOR RISK ADJUSTED VALUE

Company Risk Score

Risk Management Framework

Proprietary Risk Tools

• Portfolio monitor
• Short interest database
• Liquidity screen
• Beta analysis
• Bloomberg Portfolio Analysis