Small Companies Fund JAMES DOUGHERTY PORTFOLIO MANAGER July 2013 - PowerPoint PPT Presentation

MACQUARIE INVESTMENT MANAGEMENT | Teleconference Series Macquarie Australian Small Companies Fund JAMES DOUGHERTY PORTFOLIO MANAGER July 2013 FOR LICENSED ADVISER USE ONLY - NOT FOR DISTRIBUTION TO RETAIL INVESTORS

IMPORTANT NOTICE For licensed adviser use only - not for distribution to retail investors This information has been prepared by Macquarie Investment Management Limited ABN 66 002 867 003 AFS Licence 237492 (MIML), the issuer of units in the Macquarie Australian Small Companies Fund ARSN 119 853 566 (Fund). This information is confidential and is provided to licensed financial advisers and professional advisers only. It is not to be distributed to, or disclosed to retail clients. The information may be based on assumptions or market conditions and may change without notice. The information in this presentation is provided for general information purposes only and does not take into account the investment objectives, financial situation or needs of any person. It should not be relied upon in determining whether to invest in the Fund. In deciding whether to acquire or continue to hold an investment in the Fund, an investor should consider the Fund’s product disclosure statement. The product disclosure statement is availab le on our website at macquarie.com.au/pds or by contacting us on 1800 814 523. Past performance information is for illustrative purposes only and is not indicative of future performance. This presentation may include forward-looking statements that represent opinions, estimates and projections, which may not be realised. We believe the information provided herein is reliable, as of the date hereof, but do not warrant its accuracy or completeness. Certain parts of this presentation may have been obtained or are based upon information obtained from third parties which may not have been checked or verified. Investments in the Fund are not a deposits with, or other liabilities of, Macquarie Bank Limited or of any other member of the Macquarie Group and are subject to investment risk, including possible delays in repayment and loss of income and principal invested. Neither Macquarie Bank Limited nor any other member of the Macquarie Group guarantees the performance of the Fund or the repayment of capital from a Fund, or any particular rate of return. FOR LICENSED ADVISER USE ONLY - NOT FOR DISTRIBUTION TO RETAIL INVESTORS PAGE 2

Agenda 01 2Q13 update 4 02 Economic and market backdrop 7 03 Positioning and performance 13 04 Contact details 17 FOR LICENSED ADVISER USE ONLY - NOT FOR DISTRIBUTION TO RETAIL INVESTORS

01 2Q13 update FOR LICENSED ADVISER USE ONLY - NOT FOR DISTRIBUTION TO RETAIL INVESTORS

Macquarie Australian Small Companies Fund 2Q13 performance As at 30 June 2013 (post fees) Fund (%) Benchmark (%) Variance (%) 3 months -14.59 -14.85 +0.26 1 Year -1.19 -5.32 +4.13 Quarterly net returns 25% Macquarie Australian Small Companies Fund 20% 15% S&P/ASX Small Ordinaries Accumulation Accumulation Index 10% Net return 5% 0% -5% -10% -15% -20% -25% 3Q 2012 4Q 2012 1Q 2013 2Q 2013 Source: Iress, Macquarie Investment Management, June 2013 FOR LICENSED ADVISER USE ONLY - NOT FOR DISTRIBUTION TO RETAIL INVESTORS PAGE 5

Macquarie Australian Small Companies Fund 2Q13 performance attribution Top five contributors and detractors over the quarter Top contributors Top detractors Next DC Oceanagold Henderson Group Buru Energy Breville Group Transfield Services JB Hi-fi Macmahon Holdings Navitas Limited Tiger Resources FOR LICENSED ADVISER USE ONLY - NOT FOR DISTRIBUTION TO RETAIL INVESTORS PAGE 6

02 Economic and market backdrop FOR LICENSED ADVISER USE ONLY - NOT FOR DISTRIBUTION TO RETAIL INVESTORS

Key events 2Q13  China reported GDP growth in 1Q13 of 7.7%yoy (vs expectations of 8.0%yoy)  US Federal Reserve signalled its asset purchase program could be moderated by late 2013  People’s Bank of China let tight liquidity in the interbank market continue for longer than expected  RBA eased the cash rate 0.25% in May, Australian U/E rose to 5.7% in June FOR LICENSED ADVISER USE ONLY - NOT FOR DISTRIBUTION TO RETAIL INVESTORS PAGE 8

US yield curve steepening Shifts in the US yield curve over the past 12 months Source: Bloomberg, CIMB June 2013 FOR LICENSED ADVISER USE ONLY - NOT FOR DISTRIBUTION TO RETAIL INVESTORS PAGE 9

Prospect of QE tapering had an immediate effect on $A and Gold $A / US$ Gold (USD/oz) 1.1 1800 1.05 1600 USD/oz AUDUSD 1 1400 0.95 1200 0.9 Jul 12 Sep 12 Jan 13 Mar 13 May 13 Nov 12 Jul 12 Sep 12 Nov 12 Jan 13 Mar 13 May 13 Source: Iress, Macquarie June 2013 FOR LICENSED ADVISER USE ONLY - NOT FOR DISTRIBUTION TO RETAIL INVESTORS PAGE 10

Chinese Government targeting slower, stable growth China 1-week interbank SHIBOR Rate Source: UBS, Datastream, July 2013 FOR LICENSED ADVISER USE ONLY - NOT FOR DISTRIBUTION TO RETAIL INVESTORS PAGE 11

Concerns over a transitioning Australian economy Capital investment by sector Australian unemployment rate Source:ABS, BofA Merill Lynch Global Research June 2013 FOR LICENSED ADVISER USE ONLY - NOT FOR DISTRIBUTION TO RETAIL INVESTORS 12 PAGE 12

03 Positioning and performance FOR LICENSED ADVISER USE ONLY - NOT FOR DISTRIBUTION TO RETAIL INVESTORS

Macquarie Australian Small Companies Fund Positioning As at 30 June 2013 Segment aware Sector positions Resources Industrials LPTs Utilities ASX Small Ordinaries Index 100% T elecommunication Services Macquarie Australian Small Information T echnology Companies Fund 75% LPT s Financials & Property ex LPT s 50% Health Care Consumer Staples 25% Consumer Discretionary Industrials 0% Materials Macquarie Australian Small ASX Small Ords Index Energy Companies Fund 0% 10% 20% 30% 40% Percentage of portfolio Source: Macquarie Investment Management June 2013 FOR LICENSED ADVISER USE ONLY - NOT FOR DISTRIBUTION TO RETAIL INVESTORS PAGE 14

Macquarie Australian Small Companies Fund Largest stock overweights As at 30 June 2013 4% 3% Overweight 2% 1% 0% echnology Mount Gibson Senex Energy Flexigroup Ainsworth echnology Navitas Carsales.com AWE Limited HGG Group BC Iron Game One Iron T T Source: Macquarie Investment Management, 30 June 2013 15 FOR LICENSED ADVISER USE ONLY - NOT FOR DISTRIBUTION TO RETAIL INVESTORS PAGE 15

Macquarie Australian Small Companies Fund Performance Since Since Fund 3 months 1 year 3 years 5 years strategy inception 1 Post fee as at 30 June 2013 (%) (%) (% pa) (% pa) inception 2 (% pa) (% pa) Fund performance 3 -14.59 -1.19 5.23 -1.32 1.26 9.25 S&P/ASX Small Ordinaries -14.85 -5.32 -2.00 -5.65 -2.45 4.10 Accumulation Index Variance +0.26 +4.13 +7.23 +4.34 +3.71 +5.16 Source: Macquarie Investment Management. Past performance is not a reliable indication of future performance. 1. The inception date of the Fund is 7 July 2006. 2. The Fund invests wholly into the Macquarie Small Companies Fund (Underlying Fund), which commenced on 18 February 1998. 3. The performance figures from 7 July 2006 are the actual returns of the Fund. 4. The performance figures before 7 July 2006 are the returns after fees for the Underlying Fund with the results adjusted to include the effect of the management fee of 0.923% pa and the performance fee of the Fund (which has been removed but applied to the Fund up until February 2012). FOR LICENSED ADVISER USE ONLY - NOT FOR DISTRIBUTION TO RETAIL INVESTORS 16 PAGE 16

04 Contact details FOR LICENSED ADVISER USE ONLY - NOT FOR DISTRIBUTION TO RETAIL INVESTORS

Business Development Team NSW ACT Cameron Farrar Benjamin Price Head of National Sales Head of National Accounts and Researcher Relations P (02) 8237 5438 M 0425 317 203 P (02) 8237 4243 M 0414 973 494 E cameron.farrar@macquarie.com E benjamin.price@macquarie.com NSW VIC TAS Jimmy Byrne Haydn Scott Business Development Manager Business Development Manager P (02) 8232 0604 M 0422 429 865 P (03) 9635 9679 M 0408 902 427 E jimmy.byrne@macquarie.com E haydn.scott@macquarie.com QLD VIC SA WA Raegan Williams Alana Grist Business Development Manager Business Development Manager P (07) 3233 5220 M 0417 448 473 P (03) 9635 8035 M 0417 455 831 E raegan.williams@macquarie.com E alana.grist@macquarie.com Jessica Chen NSW ACT Joel Lewis VIC SA WA TAS Business Development Associate Business Development Associate P (02) 8237 6835 P (03) 9635 8392 E jessica.chen2@macquarie.com E joel.lewis@macquarie.com VIC SA WA TAS QLD Rani Singh Sam Bishop Business Development Officer Business Development Officer P (03) 9635 9292 P (07) 3233 5221 E rani.singh@macquarie.com E sam.bishop@macquarie.com FOR LICENSED ADVISER USE ONLY - NOT FOR DISTRIBUTION TO RETAIL INVESTORS PAGE 18

Thank you Thank you for dialling in to the Macquarie Australian Small Companies Fund update We hope to speak to you during our next Teleconference Series in October 2013 Look out for our next monthly update email for more information Information on the funds in this month’s Teleconference Series can be found at the Macquarie Investment Management website: macquarie.com.au/mim Fund flyers Thought leadership Fund performance reports Product Disclosure Statements FOR LICENSED ADVISER USE ONLY - NOT FOR DISTRIBUTION TO RETAIL INVESTORS PAGE 19