PetersMacGregorCapitalManagementLimited(ABN77087181600AFSL225984)P+6129332213Wpetersmacgregor.comEservice@petersmacgregor.comSuite1801A,WestfieldTower2,101GraftonStreet,SydneyNSW2022,Australia

GLOBALFUNDPDSUPDATE

DearInvestor,

WearewritingtonotifyyouofanimportantchangetoourProductDisclosureStatement(PDS)with

regardstoourabilitytoutilisecashwithintheportfolio.OurcurrentPDSrestrictscashto0-20%of

theportfolio,withtheabilityforthemanagertomovebeyondthatrangeforriskmanagement

purposesortotofundintendeddistributionsorpotentialredemptions.Inshort,wearerelaxingthis

range,bringingbackgreaterflexibilitythroughrevertingto0-100%equitiesand0-100%

cash.Basically,beingabletoholdanylevelofcashwhenwebelieveitprudentfromarisk

managementperspectiveorwhereweareunabletoidentifyandholdappropriatecompaniesat

pricesthatmeetourtime-tested,strictvaluecriteria.TheamendedPDSisavailableatourwebsite

atwww.petersmacgregor.comorbyclickinghere.

Long-terminvestorswillrecallwehistoricallyoperatedwiththisverybroadmandatebutinrecent

yearstightenedthecashbandto0-20%tobetterreflectourrecentexperienceinmarketsofhaving

ampleopportunitiesinwhichtoinvest.

Thepastyearhasbeenexceedinglychallenginginmarkets,asyou’llappreciate,withuncertaintyand

volatilityrising.Inadditiontoanincreasinglyprecariousbroadmacroenvironment,investorsmust

contendwithadisruptivelandscapeformanybusinesses,andcorporatebalancesheetsthathave

balloonedwithdebt.

We’verecentlytakenthedecisiontomateriallyincreasecashintheportfolioforriskmanagement

purposes.Overtime,weexpecttobemostlyinvested,mostofthetime.Butaswehavelearnedin

ourdecadesofexperienceinmanagingthroughmultiplemarketcycles,thekeytoearning

respectablereturnsthroughthefullcycleisprotectingandpreservingcapitalduringthemajor

downdrafts.

Inordertomanageriskwithinthispresentmarketenvironment,wehavemovedoutsideofour0%–

20%targetcashrange.Thiswillprovideuswiththeopportunitytoredeployintogreatcompanies

withgreatmanagementatattractivepricesbeforetoolong.Atthistimewefeelitprudentand

appropriatetoamendourPDStoprovideultimateflexibility.

Whilethischangegivesusgreaterflexibilityintermsofcash,wenotethattherearenochangesto

thecoreinvestmentphilosophy,strategyorprocessofseekingtoidentifyandownadiverse

portfolioofhigh-qualitybusinesseswithgreatmanagementteamsatattractiveprices.Thenatureof

PetersMacGregorCapitalManagementLimited(ABN77087181600AFSL225984)P+6129332213Wpetersmacgregor.comEservice@petersmacgregor.comSuite1801A,WestfieldTower2,101GraftonStreet,SydneyNSW2022,Australia

themarketenvironmentintermsofthecombinationoftheeconomicrisks,agreaterrateofchange

inthefortunesforindividualcompanies,corporatebalancesheetsthatarestretched,andthe

‘starting’valuationsoftoday–inourview–willreallyplaytoastrictvalue-orientedinvestment

philosophyintheyearsahead.Beingabletorotateinandoutofappropriately/inappropriately

pricedcompanies–withoutbeingundulyconcernedaboutholdingexcesscashforperiodsoftimein

between–willlikelybeakeydifferentiatorthathelpsgeneratestrongoutperformanceoverthelong

term.

Pleasecontactuson(02)93322133oremailservice@petersmacgregor.comtoaddressany

questionsorconcernsyoumayhave.

Thankyouforyourcontinuedtrustandwewishyouasafeandhappyfestiveseason.

Yourssincerely,

LWaynePetersMichaelHaddad

ChiefInvestmentOfficerPortfolioManager