Welcome. My name is Geoff Wilson. Thank you for joining us. This is the virtual shareholder presentation. The investment team has just been around Australia, meeting and communicating with our shareholders, and explaining how we buy undervalued growth companies and some of the insights into how we manage the portfolios of the listed investment companies on your behalf. Also, you'll be hearing from the Future Generation team, which we're very proud to be associated with. It's both FGX and FGG. They're incredible investment vehicles that provide you exposure to the best quality Australian fund managers while actually giving back to the community. Remember, the various listed investment companies that we manage on your behalf are your companies. If you have any questions or any suggestions, please feed them back to us. I'd now like to pass you over to the people that are managing the money on your behalf, the investment team. Thank you. Hi, my name's Damien Boey. I'm the Portfolio Strategist working in the WAM Income Maximiser, ticker WMX. WAM Income Maximiser is a relatively new fund that invests across equity and debt. It is designed to basically deliver you a dividend income, which is at least 2.5% above the RBA cash rate, while also generating capital growth. What I want to share with you today are three things about the fund. Firstly, despite extraordinary uncertainty, it is actually going very well. We are outperforming benchmark. Most importantly, we are providing that dependable stream of returns and income that investors need during uncertain times. The second point is that we are doing this by effectively coding the macro cycle and the uncertainty that people feel so that we can generate investment insights that are robust and consistent across different investment universes. Thirdly, we feel that we are able to decompose risk and understand the investment universe through a different lens or a series of different lenses. What this shows us is that investing is complex, but we are actually able to do this effectively on behalf of the retail investor. On the first point, investing in uncertain times. The first chart shows you our measure of uncertainty. As you can see, after Liberation Day, uncertainty has gone off the charts. It has since settled back down, but nevertheless remained very high. The right-hand set of charts shows you how the Income Maximiser has performed relative to its own benchmark. We're pleased to say that it actually has outperformed by about 1.5% since we reached full deployment of the capital. We've obviously done this through active management. I want to highlight how consistent and stable the returns have actually been. Importantly, we are now generating a running yield on the portfolio, i.e., the interest and dividend income that we are earning from the underlying securities. The weighted average of that is about 4.6%. On top of that, we have profit and capital reserves that are equivalent to about 4.7% of the net tangible assets of the company. We are very much on track to deliver you the dividend guidance given before. How are we doing this? We are doing this by basically codifying a lot of the macro cycle and the uncertainty that people feel. I've given a little illustration here as to how we do this, going from the debt side of the portfolio through to the equity side. It's one way that we do this, among many. What I've got on the two left-hand charts are some charts about interest rates and where we think they are likely to go in the near term across different horizons. The top left-hand chart shows you where we think short-term interest rates are going to go. That is, if I look out over the next three years, where do I think the interest rate should be? The second chart on the bottom shows you where longer-term interest rates are likely to gravitate to. The top chart is basically telling us that short-term interest rates are too low. Whereas the market is convinced that the RBA will keep cutting rates, we are of the view that actually the economy is likely to recover very strongly, that inflation is likely to be very sticky. As a result of that, we are very fast approaching the point where there is two-way risk to interest rates, up and down, and that deserves a higher short-term bond yield. On the longer-term perspective, most people regard the neutral rate for the economy to be between 3% to maybe 3.6%. That's quite a bit below the current bond yield, which is above 4%. You can see here that short-term interest rates are likely to rise. Longer-term interest rates are either likely to stay flat or fall. We are in what we call a bear flattening regime, where short-term interest rates rise more than long-term interest rates do. The table on the right-hand panel shows you how we would position historically for such an environment. It's called a bear flattener. In the bear flattening environment, what you tend to see are that mining stocks do very well. On the flip side, the stocks that don't do very well are typically more defensive exposures, such as consumer staples or health care. The bottom chart there, the pie chart, shows you how we've currently positioned our equity portfolio. It is at least a quarter made up of resources stocks. We are overweight. We do look at risk in a number of different ways. The next set of charts basically shows you the different dimensions of risk that investors are actually taking when they buy any security. Are we buying something which is commodity exposed? Are we buying something which is more credit exposed? High-quality, low-quality type borrowers? Are we making a duration decision? That is, are we taking a view about interest rates short-term or long-term? Are we taking on too much equity risk in terms of are equities too expensive or cheap? Are different sleeves of the equity universe likely to do well or poorly? For example, some investors are momentum investors, where they'll just follow the trend. Other investors are value investors, where basically they'll take a contrarian view and say that the future is anchored and that the valuations need to gravitate towards that anchor point. A third lot of investors actually don't care about the valuation starting point. They're much more just interested in the longer-term growth profile of a stock, the growth investor. The fourth investor is the quality investor, who's basically concerned about what could go wrong in the future, the hiccups that could be there on the journey. They buy companies with higher profitability, payout safety, or growth. These are the different dimensions of risk that we look at the world through. What we can identify right now is that taking on commodity exposure is more likely to give you the best reward to risk than to look at those really defensive quality companies. We have a number of signals that have obviously gone into this, but it's very consistent with the analysis that we presented earlier, translating interest rate views through to stock selection. The reason why we say this is simply to point out that investing is complicated. We do need a sophisticated set of tools to be able to view the world and implement our recommendations. We think that this is something that is very hard to do at an individual level. It's hard to replicate. This is one of the key strengths of WMX, that it does strive to give you diversified sources of outperformance. Thanks very much for your time. Hi, my name is Sam Koch, and I work at Wilson Asset Management as a Senior Investment Analyst in the small to mid-caps team. I'm here to talk to you about our big call. Our big investment call is that small caps will outperform the broader market. If you go back to late 2021, early 2022, inflation was rising around the world, and central banks were rapidly raising rates to try and bring that under control. Ever since then, over the last three to four years, small caps have underperformed the market. It makes a lot of sense. Small caps are typically more leveraged to their domestic economy, typically perceived as being slightly riskier investments, so require a more buoyant market to outperform. They're typically less capitalized as well. However, we would put it that we're firmly in a rate-cutting cycle at the moment. This sets up small caps to start to outperform. If you go back to August, when companies were reporting their FY 2025 results, small caps really started to outperform the broader market. That was because they had slightly better results and slightly better outlook statements as well. You saw that with consensus EPS revisions being less bad than feared. If you couple that with a really attractive relative valuation perspective, then the starting point for small caps to outperform is there. We're picking apart the opportunity here into four key subsectors. You've got rate-cut beneficiaries, technology, mining industrial services, and catalyst-driven ideas. Firstly, on the rate-cut beneficiaries, there's probably no better company leveraged to rates falling than Autosports Group, the ticker is ASG. Autosports Group has triple leverage to falling rates. They're Australia's largest luxury car dealership group. They have stakes in BMW, Audi, and Mercedes, and a number of Chinese brands as well. As rates come down, consumers have more disposable income to be buying things like luxury cars. They also have the opportunity to participate in their finance and insurance packages as rates have fallen. That's actually quite a high-margin revenue stream for ASG. Lastly, as rates have fallen, ASG needs less debt to service that larger inventory balance. For every 25 basis point rate reduction, you see a $2 million benefit in earnings for ASG. Secondly, you've got Megaport in the technology bucket. Megaport is a clear beneficiary of the boom in AI spending. They have a number of connections to data centers globally. If anyone's trying to leverage the opportunity that artificial intelligence presents, they're going to be connecting through Megaport. We see this company outperforming the rest of the technology sector. Thirdly, Service Stream in the mining and industrial services space has been benefiting as the economy has been picking up as a whole. That has meant that there's been more work for them to perform. They've recently secured a $1.6 billion pipeline of work with the Department of Defense. We believe that the company will wrap their arms around it and continue to grow that from here. Lastly, in the catalyst-driven ideas is TUI Tuas Singapore. TUI is the clear challenger in the local telco market in Singapore. They've been winning share from the incumbents as the number four player and have recently raised capital to buy the number three player, really growing their market share rapidly. We believe that the market is underestimating the opportunity from extracting synergies post that deal. That's it. That's our big call, that small caps will outperform the broader market. The recipe for success is there. You've got valuations that are attractive. You've got it firmly in a rate-cutting cycle. The outlook is slightly more positive than expected as well. Thanks for joining. Please feel free to reach out at any point in time. We're always happy to chat ideas and the portfolio as a wh ole. Good morning. I'm Anna Milne, Deputy Portfolio Manager at Wilson Asset Management. Today, I want to talk to you about why real estate is back in vogue. In WAM Leaders, we look at the world through three key pillars: macroeconomics, fundamentals, and positioning. The macro sets the weather. These are large-cap stocks tied to cycles, whether it be commodities, credit, or GDP. When these cycles move, it drags the stocks with them. That is why we monitor cycles very closely. Fundamentals are what keeps us grounded, meeting the companies, assessing the headwinds or tailwinds, and the likelihood of earnings upgrades or downgrades. Lastly, positioning. Markets aren't mechanical. They are, in fact, very emotional. With emotion comes mispricing. We see a lot of opportunities in stocks being mispriced. This is why we focus on positioning. Now, let's tie this process into real estate investment trusts, or REITs. At a macro level, it's been a tough few years. Valuations have turned. Interest costs have risen. Sentiment collapsed as a result. Things are turning. When things turn in real estate, they turn slowly and then very quickly. We believe we're right at the start of this turn. Fundamentally, if we step back and look at the big forces at play in Australia, there is a chronic demand and supply imbalance, in a positive way for the sector. We see this as lasting all the way to FY 2030 and beyond. It exists across all of the subsectors. From a retail perspective, e-commerce has just reshaped the way we use malls. There are no more being built despite foot traffic increasing year after year. Some say the office is dead. That is anything but the case in prime office land. In prime Sydney, Brisbane, and Melbourne, you cannot find continuous floors of space because there is such high demand for these assets. In industrial, a lot of the really high-end supply is actually being converted to housing and data centers. As a result of this, the demand and supply imbalance has grown even greater. From a positioning perspective, because equities have done so well and real estate valuations have declined, multi-asset managers are having to weigh up having overweight equities exposure and underweight property exposure. They're having to rebalance this. We're starting to see this dynamic play out through recent transactions. We expect this will be a tailwind for valuations over the coming years. When we put together the macro, the fundamentals, and the positioning, it all lines up really well for the real estate sector. Now, let's bring this to life with three examples, starting with Goodman Group. Goodman Group is our largest REITs position in the fund. There are a few reasons for this. It was only a couple of years ago where Goodman Group was an industrial landlord. Now, it's one of the largest AI infrastructure players, certainly in Australia, if not the world. The beauty of its model is that it is not cyclical. When there are concerns about credit or macro, AI just stands out. It is a clear theme that is here to stay. Some worry about an AI bubble, which is absolutely justified. Goodman Group has prime sites in prime global cities. They have the partnerships. They have the customers. They have the funding. We believe this is a very low-risk play for a very high-return theme. Secondly, Mirvac. Mirvac is a housing proxy on the ASX. When you combine the RBA cash rate cuts with the government's new 5% deposit first homeowner scheme, you can debate whether this is good policy or not. What we do know for sure is that it will be positive for Mirvac' s ability to sell and settle both master plan community lots and apartments. Not only is this going to be a really strong year for both sales, for residential sales, but also margins. Residential margins are bottoming and improving. You can find this with quite negative sentiment on the name, given it has been a rocky margin recovery. We believe Mirvac i s well primed for a recovery over the coming 12 months. Lastly, I wanted to mention GPT Group. GPT has undergone a transformation over the last couple of years under new management. They were previously considered a passive, sleepy REIT vehicle. Now, they are anything but. They're transforming their business and really growing their funds management side. We believe GPT is a great proxy for the increased level of transactions that we're seeing in the market. Those are our top three holdings: Goodman Group, Mirvac Group, and GPT Group. Overall, we believe REITs are very well placed over the coming 12 months. When the REIT cycle turns, it turns slowly and then very quickly. We believe we're at the very start of that turn and are positioned accordingly. Thank you. Hello, everyone. My name is William Liu, and I'm a Deputy Portfolio Manager for the WAM Global Fund, ticker WGB. I'm incredibly excited to be here with you today to share with you some of the insights from our investment process and how we're navigating the current global equity landscape. To refresh you on our investment process, WAM Global is focused on finding undervalued growth opportunities with a catalyst. We can invest all over the world, and we're looking to find the best opportunities across Asia, Europe, and the U.S. We especially like finding companies with long-term compound earnings growth potential. We find strong long-term earnings are the best predictor of share price appreciation over the longer term. Our big investment core over the next 12 months is that AI will drive a productivity boom, and there are huge opportunities outside of the infrastructure layer. What do I mean by this? Where are we now? Currently, the market is obsessed about the AI infrastructure layer. Data centers, chips, and power at a massive scale are highly topical in today's market. That is fair, given that they are the enablers of generative AI to function. If you look at the capital expenditure of the four largest hyperscalers: Microsoft, Meta, Amazon Web Services, and Google, it's increased almost fourfold over the last five years. It's expected to reach $364 billion in this year alone. That is unprecedented in scale. That number is likely to increase again next year. It shows the focus and the amount of capital that is going into this space. Power demand in the U.S. over the last 20 years has largely been flat. That is due to the adoption of energy-efficient technologies. Power demand over the next 20 years is projected to increase 40% - 50%. That is still likely conservative. Data centers are highly power-intensive. We're seeing new frontier technologies, such as autonomous vehicles and robotics. That's only going to drive power demand higher. Utilities, which has previously been one of the most boring sectors in the global equity universe, are suddenly now a growth sector. The AI infrastructure layer is an important component of the opportunity. However, we do note expectations. Valuations are very high in this space. We're being very selective and disciplined in finding the right opportunities and finding the right companies which satisfy our investment criteria. We're also focused, more importantly, on what happens next. AI is going to drive a huge productivity boom. Data centers, chips, and power alone do not do that. We're looking for opportunities of companies who are early in the AI adoption curve and are using this technology effectively and integrating it into their workflows. To give you a sense of how meaningful a productivity boom can be for our economy, the closest analogy we can think of is if we look back to the 1990s. Between 1989 and 1994, cumulative productivity increased 4%. At the same time, the stock market increased 52%, which is a fair and reasonable outcome. In the mid-1990s, we saw Netscape introduced, which is one of the first internet service providers and the main browser at the time. We witnessed an almost threefold increase in productivity in the subsequent five years, and the stock market appreciated 250%. We're not expecting the same thing to happen this time around, given the starting point of valuations, but we also know what happened in 2000. It's important to highlight the risk management and the prudency in investing behind these frontier technologies. It does show you the impact of a productivity boom, what it means for companies' values, and what it means for the growth of those companies over the longer term. We're positioned in early AI adopters, and we're really focused on finding companies with three key characteristics. Firstly, companies with leading technology stacks, which are ready to integrate AI into their systems. Secondly, companies which are deeply embedded into their customer workflows and trusted providers. Finally, companies with unique access to data, with contextualized data especially, that is a competitive advantage for them. We own a number of companies with these characteristics across the portfolio. Let me move on to how the WGB portfolio is positioned. We're positioned in the best companies across the different layers of the technology stack. We have the enablers, which is the AI data infrastructure that we talk about. We also have the customized silicon and the software infrastructure stack. Finally, the adopters, which is the application software, will enable the productivity boom that's about to come. These are the companies which can improve the quality of service for a lower cost, automate tasks, and provide real value and new revenue models for their customers in the years to come. Today, I want to talk to you about three stocks. Starting with Quanta, which is a critical enabler of the data of AI infrastructure in today's market. I talked about how power is a critical bottleneck for data centers. In the U.S., the electricity grid has been significantly underinvested in for multiple decades. We're at a critical juncture right now where there's a catch-up period. We're seeing a significant amount of money spent to modernize the grid in anticipation for data center demand and the electricity requirements that are still to come. If you look at the U.S. electricity grid, over 70% of the transmission lines are over 25 years old. Of the larger power transformers, the average age is close to 40 years old. The infrastructure is aged, and there's a massive race to try and catch up and rebuild that infrastructure to be competitive in today's market. Quanta Services is one of the only companies which solve this problem. They provide physical infrastructure solutions to the utility companies and modernize the grid. They're in a golden age. In fact, this is reflected in their backlog, which gives us confidence of the earnings visibility for the years to come. I met the CFO in London at a presentation. She highlighted one of the things that resonated to me was she talked about how over the last 10 years, Quanta Services has compounded earnings at an average growth rate of 25%. This is despite being in an environment where power demand was essentially flat. Now that power demand is going up and inflecting upwards, we believe Quanta Services is going to be much more well positioned. There's significant earnings growth opportunities to come, and that's going to be a big tailwind for this business. The second company I want to talk to you about today is Synopsys. Synopsys is a leading electronic design automation software provider. They are one of the largest in the space. They provide mission-critical software for verification, design, and testing. They are an important part of the semiconductor supply chain. In fact, they are one of the key enablers of NVIDIA to be able to design its GPUs and high-performance compute units. We think the opportunity for Synopsys is threefold. Firstly, we're seeing increased research and development expenditure into chip design and complex chip design, and that's only going to continue. Secondly, we're starting to see Synopsys embed artificial intelligence across its products. This is helping its customers innovate quicker and find productivity savings, and that's going to be a significant tailwind for them. Finally, Synopsys recently integrated an asset called Ansys, and that's going to lead to a silicon-to-solution opportunity, which is a huge addressable market for the business. We expect positive updates there to come. The third stock I want to talk to you about today is SAP, which is the leading enterprise application services provider listed in Germany. They are mission-critical for their clients, and the customers trust SAP with their most important data for everyday operations in their business. In fact, over 70% of the world's transactions touch an SAP system, and you can see how crucial they are within the ecosystem. SAP has already launched a generative AI agent, and they're going to have a unique capability to have unique data sources, business contexts, and their trusted service provider who are embedded in the customer workflows. That's going to allow them to develop AI and going to create a significant earnings opportunity for them. In fact, they're putting their money where their mouth is, and SAP internally have targeted over EUR 500 million in savings within their own company as a result of AI implementation. We believe the company is incredibly well positioned. They're going to be the ones who are going to increase the productivity of its customers by automating tasks with the right business context, and this is going to lead to a huge value proposition for their customers. That is a great sign for us. I hope those three stock examples give you a bit of a reflection on how the WGB portfolio is positioned, particularly in the context of AI. We remain focused and disciplined in investing in undervalued growth companies with a catalyst, and we remain focused on finding companies with that earnings growth potential. We're staying away from areas of frothiness in the market where valuations and expectations are high. We're also conscious of the risk that AI can present and looking at avoiding companies with AI disruption risk. I hope that gives you an idea of how we're navigating the global equity landscape. We believe artificial intelligence is going to be a generational opportunity. We are also being disciplined in terms of how we're evaluating the best opportunities. We think the productivity boom is yet to come. We're laser-focused on finding the best companies who will enable that future trend to come. Hi all. My name is Jacob Grover. I work on the WAM Alternative Assets portfolio, the ticker for which is WMA. We invest across a range of alternative asset classes, such as private equity, real estate, infrastructure, private debt, agriculture, and water. You've heard in some of these other updates about some of the equity portfolios that we manage and fixed income here at Wilson Asset Management. Where does WMA fit in? When Wilson Asset Management had the unique window to take over a portfolio of alternative assets or private market investments, we jumped at the opportunity. We understood, like many, that alternative assets are a natural complement to fixed income and equity positions, creating strong diversification benefits and smoother portfolio returns across market cycles. Alternative assets also provide investors with strong protection against inflation and interest rate movements. They're typically uncorrelated to the movements of listed markets. Super funds and large institutions have understood this for decades and have allocated a portion of their portfolio to private markets or alternative assets alongside their fixed income and equity positions. Retail investors have largely been locked out of the space, with investments being inaccessible, illiquid, and incredibly complex to navigate. This is where WMA steps in and provides a solution for retail investors. The Wilson Asset Management, or WMA portfolio, is composed using the expertise of Wilson Asset Management alongside our specialist investment partners who are best in class and have a key competitive advantage in their niche. As a listed investment company, WMA provides access to any retail investor with as little as $500 in a brokerage account via the ASX. Being listed on the ASX also means that investors get daily liquidity compared to the underlying illiquid nature of the holdings in the portfolio. In this way, WMA provides you with the expertise, the access, and the liquidity to navigate alternative assets. We understand the role that alternative assets play in a portfolio, and we understand how WMA unlocks this for retail investors. Why now? There's one asset class in particular in our portfolio that we're particularly excited about and that we've been rapidly increasing our exposure to over the last six months, and that is real estate. As our large-cap team spoke to in their update, Australian Real Estate Investment Trusts, or REITs, as we call them, are primed for growth off the back of strong property fundamentals, improved investor sentiment, and many of them still trading at NTA or at a slight discount when typically they trade at large premiums. In the unlisted real estate space, we're seeing the same strong property fundamentals that they're seeing in the listed space, but valuations are yet to catch up. We still haven't seen the impact of interest rate cuts throughout 2025. This creates a significant opportunity for WMA as a disconnect appears between listed and unlisted real estate valuations. You can see this on the chart on screen. You can also see on screen the disconnect is the widest it's almost been in a decade. We see significant upside for WMA's real estate holdings as unlisted markets catch up to listed valuations and as both markets push higher based off strong property fundamentals, improved investor sentiment, and a lower cost of debt. Real estate makes up approximately 11% of the portfolio as at August 2025, and we're steadily increasing that exposure towards a long-term target of 20%. We hold several high-quality healthcare real estate assets, such as Marucci d'Or Private Hospital, which is due to open on the Sunshine Coast next year, alongside several growth or opportunistic-style real estate assets, such as the Julius Avenue Life Sciences Campus. This building is a one-of-a-kind, purpose-built science research and testing facility, which is currently leased by the CSIRO and Sydney Water. We acquired it at a 66% discount to its replacement cost. Because of the extensive relationships we have in the institutional market and with our investment partners, we've been able to co-invest on this asset, which means that every WMA shareholder is essentially a co-owner of this unique building. The real estate holdings that we have in the portfolio were already primed for growth off the back of the active management and expertise of our investment partners and a return to market leasing and market valuations. Adding to that, the opportunity for valuations to push higher off strong property fundamentals, improved investor sentiment, and a lower cost of debt creates significant upside for our portfolio. Real estate isn't the only asset class that we're excited about here at WMA. Behind me or on screen, you can see over 160 high-quality businesses and assets that we hold in the portfolio. In private equity, we invest in high-quality businesses such as Oro Group, a provider of cybersecurity, network, and cloud solutions, and HCA, or Healthcare Australia, Australia's largest staffing provider to the aged care, disability, and healthcare sectors. Both these businesses have seen increased valuations recently as the improvements made by our private equity partners have translated to increased earnings and better business performance. In infrastructure, investments across transport, renewable energy and gas, and storage have provided the WMA portfolio with strong inflation-protected income and will continue to do so throughout market cycles. Assets like Sunshine Coast Airport have high barriers to entry, a diverse range of income sources, and are expected to benefit from development opportunities and platform growth. In private debt, we only lend to high-quality businesses with strong balance sheets and healthy cash flows, businesses like Velocity Frequent Flyer or Icon Group. Importantly, in our private debt portfolio, we're diversified across shorter-duration fixed-rate loans and longer-duration floating-rate loans. What this means is that our portfolio will perform regardless of the interest rate environment. In the water market, the government continues to buy back water entitlements at a premium to market valuations, reducing supply. After a dry first half of the year and with continued demand for Australian agriculture, the spot price of the water currently is almost double what it was compared to last year. This continues to drive strong income for our portfolio. Now, this is just a snapshot here on this screen of some of the high-quality businesses and unique assets that you gain access to as a WMA shareholder. WMA is the only listed investment company on the ASX that provides retail investors with access to an institutional-quality, diversified portfolio of alternative assets across the range of asset classes that you can see in the pie chart on screen. The construction of the portfolio has enabled us to buy assets and investments that are backed by long-term investment themes and multi-decade tailwinds, which we believe will drive stronger and better performance across market cycles. The construction of the portfolio also allows us, alongside our specialist investment partners, to deliver absolute returns for our shareholders, as well as a growing stream of fully-franked dividends. With a dividend yield of 6% grossed up to 8.2%, including franking, and a share price discount to NTA in the low teens, which basically means you're buying a dollar of assets for $0.90, we see WMA as a compelling investment opportunity for those looking to increase the resilience and diversification of their overall investment portfolio. Thanks so much. Hi. My name is Martyn McCathie, Investment Specialist at Wilson Asset Management. As part of my role with Wilson Asset Management, I assist our Founder and Chief Investment Officer, Geoff Wilson, and our Chief Financial Officer, Jesse Hamilton, with the management of WAM Strategic Value, ASX ticker WAR. Listed in 2021, WAM Strategic Value was the group's eighth listed investment company. The investment process of WAM Strategic Value involves identifying and capitalizing on discount asset opportunities, predominantly LICs and LITs trading at a discount to NTA parity. Investing in discount assets can provide investors with reduced volatility as you're investing in assets that are already trading at a discount to their intrinsic value, uncorrelated returns when compared to the traditional equity markets, given alpha can be generated from the underlying investments that we hold, and also a closing of the share price discount to NTA. Collectively, that will provide investors with strong risk-adjusted returns over the long term. As a listed investment company specialist with almost three decades of managing and investing in listed investment companies, we believe this gives us a unique insight into identifying and exploiting discount asset opportunities. The LIC and LIT sector has, however, been out of favor for the last couple of years. We've seen consolidation in the sector, with a number of LICs and LITs converting, merging with other entities, or delisting completely. To offset that, we have seen very few new issuances into the market. We and you invest in LICs and LITs because of the structural benefits. Pleasingly, we're starting to see a return to favor for the LIC and LIT structure. Calendar year to date, we have seen six new issuants come to market. Net, we've seen expansion within the sector for the first time since 2018. Unsurprisingly, my big investment call for the next 12 months is that share price discounts to NTA will narrow across the LIT and LIC sector. The catalyst for closing discounts can be very investment-specific. Anyone who's invested in discount assets or LICs and LITs trading at a discount to NTA will know that discounts don't eradicate overnight. We believe there are two macro components that could drive investor sentiment back towards the LIC and LIT structure. Firstly, falling or plateauing interest rates. As you can see on the graph, as interest rates have risen, discounts in LICs and LITs have widened. Investors considering investment in LICs and LITs have to consider the risk-free rate when making an investment or moving out or reallocating capital. The other component that I think will drive a return to diversified products like LICs and LITs is a return to fundamental investing and outperformance from active management. As we can see on the right-hand side of the graph, single stocks like CBA have materially outperformed indices and diversified portfolios. We believe that the market is prime for a return to fundamental active management. Diversified portfolios like LICs and LITs will benefit as investors reallocate capital. Accessing LICs and LITs is relatively simple. You can buy and sell them through the ASX with intraday liquidity. Assessing the value of an LIC and LIT and the opportunity set presented by discounts to NTA does require work. With work, however, we believe, comes great reward. Investors who buy discount assets will benefit over time for the investment portfolio, for the underlying investments, and the narrowing of share price discount to NTA. This will enhance returns over the long term, but also enhance yield as you hold the company through the investment period. Within the WAM Strategic Value investment process, we actively manage our investments. One of the investments that I wanted to highlight today was Perpetual Investment Company, ASX ticker PIC. PIC has been in and out of the WAM Strategic Value portfolio four times since we listed back in 2021, as we've taken advantage of the share price discount to NTA as it's approached 10% and trimmed or exited our position as the share price discount to NTA narrows as it has at the moment. Geoff has often referred to the WAM Strategic Value investment process as being twofold: the carrot and the stick. We work alongside boards, management teams, and alongside shareholders of investee companies with a common goal of realizing intrinsic value for shareholders. Occasionally, our advice isn't listened to, and we would have to resort to activist-style campaigns. We're currently running two active campaigns: Pengana International Equities (PIA) and Platinum Capital (PMC). Today, I wanted to go through an example of a campaign that's recently concluded: PAI, Platinum Asia. WAM Strategic Value first invested in PAI back in April 2023 as the share price discount to NTA exceeded 15%. We believed that the board and the management team of Platinum would have to look at strategies to realize intrinsic value for shareholders. Throughout 2023, we materially increased our investment, taking advantage as the share price discount to NTA oscillated. Fast forward to April 2024, the board of PAI enacted a strategy to convert the company into an active ETF structure, allowing investors to exit their investment at close to NTA parity. The transaction concluded in August of this year, and WAM Strategic Value and other investors had their shares in PAI converted to PAXX, an active ETF run under the same strategy. Following the conversion, we and other shareholders were able to exit our investment at NTA parity. Hopefully, this overview and the examples we've shared with you today have provided you with insights to the investment process for WAM Strategic Value. Thank you. Hi, my name's Lee Hopperton. I'm the Chief Investment Officer for Future Generation. I'm just going to spend a few minutes today reminding you about how our model works, how we're currently positioned in our portfolios, and our dual objectives, which are to do well for shareholders by offering diversified, differentiated portfolios that are complementary to what you might own elsewhere. Also do good and how we support the communities in which we all operate, in particular, young people. First, the model. We manage $1.4 billion in two investment companies. They are Future Generation Australia and Future Generation Global. They're funds of funds. We invest with other asset managers. Those asset managers are some of the most respected in the world. They're also very generous in that for our shareholders, they waive all management fees and performance fees. It's that generosity that enables us to give 1% of assets each year to good causes without impacting the returns that our shareholders receive. The companies are overseen by very highly credentialed boards and investment committees. It's the who's who of Australia's corporate and investing world and includes our founder, Geoff Wilson. What do you get as an investor? You get a highly diversified portfolio. There are 16 fund managers in Future Generation Australia and 16 in Future Generation Global. They're diversified by number, but they're also diversified by the ways in which they invest and style. We've got growth managers and value managers, quant managers, long-short managers, large-cap managers, small-cap managers, many different types of strategies. It's that diversification, which is the secret sauce that enables us to deliver on our objective, which is to give our shareholders market or better returns, but with much lower volatility than the market. That's a measure of risk. They're diversified, but they're also differentiated. If we look at how we're currently positioned, Future Generation Australia is very underweight the largest 20 companies in the ASX, in particular, the banks. It's got a big overweight towards medium and smaller-sized companies. That strategy has been working very well for us in recent months. Future Generation Global is also overweight medium and smaller-sized companies. It's underweight technology. It's underweight the U.S., and it's overweight Europe. The market's very highly concentrated at the moment, particularly in Australia in a few bank stocks and around the world in what you may have heard of as the Mag 7. We offer some diversification from that, from the way that these portfolios are differentiated. Let's turn and look at what you get right now. Both companies are offering attractive dividend yields in the range of 7% - 8%. That includes the value of the franking credits that they pay. Both pay fully-franked dividends. They're both also trading at discounts. Now, those discounts have been narrowing over recent months. That discount narrowing supports the share price, but it also means that you can still buy into these companies at a value that's below their intrinsic worth. We think that's very attractive. We often speak to our shareholders, and one of the things they say they value is reliable income. Both companies have strong track records of continually increasing their dividends, fully-franked dividends over time. They've both got very strong profit reserves, which means if we do enter more challenging markets, those dividend payments should be fairly resilient. You get a great income stream, a very diversified portfolio of managers, many of which you may not have heard of or are unable to access as a retail investor. Some of them are only open to institutions, for example, and a diversified portfolio, a way that's complementary to other things you may own elsewhere. That's the investment proposition. Our second objective is to do good, and we're supporting communities, in particular, young people in communities in Australia. Future Generation Australia has recently announced a new lineup of social impact partners. They're supporting young people who are facing adversity. They've experienced neglect or abuse or having a difficult time. Future Generation Global supports youth mental health initiatives and, interestingly enough, touches 5 million young people each year. We're having real impact. We're offering a very structured way of giving to those causes and also a very transparent way in which we can report on that impact. We have an award-winning impact measurement system. We believe we can deliver on both of our objectives: doing well for our shareholders and doing good for the community. This is all possible only because of the generosity of our shareholders and our service providers who waive their fees. Thank you for your attention. If you have any questions, we'd enjoy being in contact. Please let us know. Thank you.