OPHIR HIGH CONVICTION FUND

DATE OF ISSUE: 10 MARCH 2021

ASX: OPH

www.ophiram.com

INVESTMENT UPDATE AND NAV REPORT – FEBRUARY 2021

The Ophir High Conviction Fund seeks to provide investors with a concentrated exposure to a high quality portfolio of listed companies outside the S&P/ASX 50. Employing an extensive investment process that combines a rigorous company visitation schedule and fundamental bottomup analysis, the Fund aims to identify businesses operating within structural growth sectors with the ability to meaningfully grow and compound earnings over time. Typically, the majority of businesses within the portfolio will already have well-established business models with large or growing end markets and a clearly identifiable pipeline of future growth opportunities. As a concentrated portfolio, the Fund seeks to identify the very best of these opportunities in order to ensure each portfolio position delivers a meaningful impact on overall portfolio returns.

Net Per Annum Return Net Return Fund Size ASX Code Since Inception (to 28 Feb 21) Since Inception (to 28 Feb 21) (at 28 Feb 21) ASX:OPH 18.7% 160.2% $645.8m

FEBRUARY 2021 PORTFOLIO SNAPSHOT

NET ASSET VALUE (NAV) PER UNIT

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$275K
Ophir High Conviction Fund $260,245
As at 28 February 2021 Amount $235K
NAV $3.24
Unit Price (ASX:OPH) $3.55 $195K
To access NAV prices for the Ophir High
Conviction Fund (ASX:OPH), historical ASX $155K
announcements and performance history,
please visit www.ophiram.com $115K ASX Mid-Small Index [1] $182,851
$75K
Jul 2015 Jan 2016 Jul 2016 Jan 2017 Jul 2017 Jan 2018 Jul 2018 Jan 2019 Jul 2019 Jan 2020 Jul 2020 Jan 2021
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Chart represents the value of $100,000 invested since inception after all fees and before tax and assuming distributions are reinvested in the Fund. Performance of the Fund is calculated using Net Asset Value (NAV), not the market price. Please note past performance is not a reliable indicator of future performance.

INVESTMENT PERFORMANCE

1 The Fund’s benchmark is the S&P/ASX Mid-Small Index, being the composite benchmark of 50% of the S&P/ASX MidCap 50 Accumulation Index and 50% of the S&P/ASX Small Ordinaries Accumulation Index.

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Since Inception (p.a) 5 Years p.a. 3 Years p.a. 1 Year 3 Month 1 Month
Ophir High Conviction Fund 23.4% 18.7% 15.6% 22.3% 1.6% 0.3%
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Benchmark	11.4%	12.7%	7.9%	19.1%	2.5%	0.1%
Value Add (Gross)	12.0%	6.0%	7.7%	3.2%	-0.9%	0.2%
Fund Return (Net)	18.7%	15.6%	12.1%	18.1%	1.3%	0.2%
ASX:OPH Unit Price Return	n/a	n/a	n/a	47.9%	0.0%	1.4%

Performance figures are calculated using the Net Asset Value (NAV) of the Fund as at 28 February 2021, not the market price. Benchmark is the ASX Mid-Small Accumulation Index. Inception date of the Fund is 4 August 2015. Past performance is not a reliable indicator of future performance.

TOP 5 PORTFOLIO HOLDINGS (ALPHABETICAL)

Company	Industry	ASX Code
Afterpay Touch Group Corporate Travel Management	Information Technology Consumer Discretionary Services	APT CTD
Credit Corp Group	Financial Services	CCP
IDP Education	Consumer Discretionary Services	IEL
Tyro payments	Technology	TYR
Average Portfolio Market Cap		$7.6bn

KEY INFORMATION

Responsible Entity	The Trust Company (RE Services) Limited
Manager	Ophir Asset Management Pty Ltd
Portfolio Managers	Andrew Mitchell & Steven Ng
Fund Inception	4 August 2015
Fund Size	$645.8M
Number of Stocks	15-30
Cash Distributions	Annually
Investment Objective	Outperform benchmark (after fees) over
	long term (5+ yrs)

INVESTMENT UPDATE AND NTA REPORT - FEBRUARY 2021

ALLOCATION OF INVESTMENTS

PORTFOLIO SECTOR EXPOSURES (as at 28 February 2021)

Sector	28 February 2021
Materials	6.6%
Financials	17.7%
Health Care	7.2%
Communication Services	8.5%
Consumer Staples	4.4%
Information Technology	18.9%
Industrials	2.6%
Consumer Discretionary	24.8%
Utilities	0.0%
Real Estate	3.4%
Energy	1.3%
[Cash]	4.6%
	100%

MARKET COMMENTARY

Share markets started February on a bullish tone as investors focussed on the global rollout of vaccines, still low interest rates across the world and a big bazooka USD$1.9tril fiscal stimulus in train from US President Biden.

This saw many major equity indices up over 5% midmonth before falling back into low single digits by month end courtesy of some major, and quite jarring, moves in bond markets. ‘Real’ yields in bond markets headed sharply higher over the month in both Australia and the U.S., triggering a pullback in equities, particularly in those companies with longer ‘duration’ of cash flows that typically comprise growth orientated sectors. The Aussie market finished up +1.5% (ASX200 total return) which was only marginally beaten by the small cap part of the market +1.6% (Small Ords total returns).

Overall, in the wash up, equities in February saw a continuation of the themes that have been playing out since vaccine news first hit the airwaves in November last year. That is, outperformance of ‘value’ over ‘growth’, cyclicals over defensives, small cap over large cap and ‘out and about’ over ‘stay at home’ stocks. This could be most clearly seen by some wide sector divergence with Financials (+5.2%) and Materials (+7.3%), key value and cyclical sectors, drastically outperforming IT (-8.9%) and Utilities (-8.0%), key growth and defensive sectors.

This all happened amongst the best Aussie equities reporting season seen in decades. Profit ‘beats’ resoundingly trounced ‘misses’ and FY21 earnings forecasts were ratcheted up by record amounts with around 20% growth now expected at a market level.

Despite the strong results the market reaction was muted though, suggesting it was poised for good news and further upside may be hard won.

PORTFOLIO COMMENTARY

During February, the Ophir High Conviction Fund’s investment portfolio returned +0.2% (net of fees) versus the index which returned +0.1%. Since its inception in August 2015, the Fund has returned 18.7% p.a. (net of fees) while the index has returned 11.4% p.a. since inception.

During February the Ophir High Conviction Fund’s ASX listing provided a total return of +1.4% for the month.

Whilst we don’t read too much at all into any one month’s performance, the Fund’s performance in February highlights that we tend to generate performance primarily through bottom-up stock picking, and not over reliance on any one investing style. We outperformed during the month despite the two styles we are most often associated with, ‘growth’ and ‘quality’ both underperforming -- particularly growth -- both domestically and internationally.

We think we are likely in an environment where COVID beneficiaries, particularly those at the growthier end of the spectrum, will have to beat estimates by significant margins and still have room to expand to the top of their valuation trading ranges to find material support in the market. This argues for caution investing in the ‘growth at any price’ end of the market and we certainly have been making sure we are not overpaying for growth at present across our funds.

In key stock moves for the month it was no surprise that our ‘out and about’ companies found the most price support, including the travel (e.g. Corporate Travel Management) and education orientated (e.g. IDP Education) names, whilst our higher growth technology focussed businesses (e.g. Afterpay) and those with gold exposure were out of favour as bond yields rose.

Corporate Travel Management, the provider to travel management solutions to the global corporate travel market, provided one of the more pleasing results, up 5.4% on the day and +17.8% over the rest of the month. The company provided an interesting insight into how bookings recovered over the second half of 2020 with Australia and New Zealand booking recovering to 70% of the prior year when borders were opened in December. New Zealand activity remained above 100% in the December 2020 half compared to the same time in the prior year. This does highlight that corporate travel may not be as permanently impaired as some may think in a post-COVID world.

INVESTMENT UPDATE AND NTA REPORT - FEBRUARY 2021

ANZ – case study in activity recovery

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ANZ total booking comparison % vs 2019
100% 05 Jul2020 06 Jul2020 07 Jul2020 08 Jul2020 09 Jul2020 10 Jul2020 11 Jul2020 12 Jul2020 13 Jul2020 14 Jul2020 15 Jul2020 16 Jul2020 17 Jul2020 18 Jul2020 19 Jul2020 20 Jul2020 21 Jul2020 22 Jul2020 23 Jul2020 24 Jul2020 25 Jul2020 26 Jul2020 27 Jul2020 28 Jul2020 29 Jul2020 30 Jul2020 31 Jul2020 2020Aug01 2020Aug02 2020Aug03 2020Aug04 2020Aug05 2020Aug06 2020Aug07 2020Aug08 2020Aug09 2020Aug10 2020Aug11 2020Aug12 2020Aug13 2020Aug14 2020Aug15 2020Aug16 2020Aug17 2020Aug18 2020Aug19 2020Aug20 2020Aug21 2020Aug22 2020Aug23 2020Aug24 2020Aug25 2020Aug26 2020Aug27 2020Aug28 2020Aug29 2020Aug30 2020Aug31 2020Sep01 2020Sep02 2020Sep03 2020Sep04 2020Sep05 2020Sep06 2020Sep07 2020Sep08 2020Sep09 2020Sep10 2020Sep11 2020Sep12 2020Sep13 2020Sep14 2020Sep15 2020Sep16 2020Sep17 2020Sep18 2020Sep19 2020Sep20 2020Sep21 2020Sep22 2020Sep23 2020Sep24 2020Sep25 2020Sep26 2020Sep27 2020Sep28 2020Sep29 2020Sep30 2020Oct01 2020Oct02 2020Oct03 2020Oct04 2020Oct05 2020Oct06 2020Oct07 2020Oct08 2020Oct09 2020Oct10 2020Oct11 2020Oct12 2020Oct13 2020Oct14 2020Oct15 2020Oct16 2020Oct17 2020Oct18 2020Oct19 2020Oct20 2020Oct21 2020Oct22 2020Oct23 2020Oct24 2020Oct25 2020Oct26 2020Oct27 2020Oct28 2020Oct29 2020Oct30 2020Oct31 2020Nov01 2020Nov02 2020Nov03 2020Nov04 2020Nov05 2020Nov06 2020Nov07 2020Nov08 2020Nov09 2020Nov10 2020Nov11 2020Nov12 2020Nov13 2020Nov14 2020Nov15 2020Nov16 2020Nov17 2020Nov18 2020Nov19 2020Nov20 2020Nov21 2020Nov22 2020Nov23 2020Nov24 2020Nov25 2020Nov26 2020Nov27 2020Nov28 2020Nov29 2020Nov30 2020Dec01 2020Dec02 2020Dec03 2020Dec04 2020Dec05 2020Dec06 2020Dec07 2020Dec08 2020Dec09 2020Dec10 2020Dec11 2020Dec12 2020Dec13 2020Dec14 2020Dec15 2020Dec16 2020Dec17 2020Dec18 2020Dec19 2020Dec20 2020Dec21 2020Dec22 2020Dec23 2020Dec24 2020Dec25 2020Dec26 2020Dec27 2020Dec28 2020Dec29 2020Dec30 2020Dec31 2021Jan01 2021Jan02 2021Jan03 2021Jan04 2021Jan05 2021Jan06 2021Jan07 2021Jan08 2021Jan09 2021Jan10 2021Jan11 2021Jan12 2021Jan13 2021Jan14 2021Jan15 2021Jan16 2021Jan17 2021Jan18 2021Jan19 2021Jan20 2021Jan21 2021Jan22 2021Jan23 2021Jan24 2021Jan25 2021Jan26 2021Jan27 2021Jan28 2021Jan29 2021Jan30 2021Jan31 2021Feb01 2021Feb02 2021Feb03 2021Feb04 2021Feb05 2021Feb06 2021Feb07 2021Feb08 2021Feb09 2021Feb10 2021Feb11 2021Feb12 2021Feb13 2021Feb14 100.00% December 20:
90% 90.00% borders opened
80% 80.00% temporarily
70% 70.00%
60% 60.00%
50% 14 day moving average50.00%
40% 40.00%
30% 30.00%
20% 20.00%
10% 10.00%
0% -
Jul 2020 Aug 2020 Sep 2020 Oct 2020 Nov 2020 Dec 2020 Jan 2021 Feb 2021
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Source: Corporate Travel Management presentation

INVESTMENT UPDATE AND NTA REPORT - FEBRUARY 2021

INVESTMENT PHILOSOPHY

INVESTMENT OBJECTIVE

The Fund seeks to provide Unitholders with a concentrated exposure to a high quality portfolio of listed companies outside the S&P/ASX 50. Employing an extensive investment process that combines a rigorous company visitation schedule and fundamental bottom-up analysis, the Fund aims to identify businesses operating within structural growth sectors with the ability to meaningfully grow and compound earnings over time. The Fund aims to generate long-term returns in excess of the Benchmark (after fees and before tax) and provide consistent, sustainable returns for Unitholders.

INVESTMENT PROCESS

Ophir employs a fundamental, bottom-up research approach aimed at identifying businesses with the ability to meaningfully grow and compound earnings over time. Typically, the investment process will look to uncover businesses that are operating within, or about to enter, a period of structural growth and are generating cash or have a clearly identifiable pathway toward free cash flow generation. In order to identify these opportunities, the Ophir investment team spend a considerable amount of time understanding the quality of the business and the environment in which it operates.

ABOUT OPHIR ASSET MANAGEMENT

Ophir Asset Management is a specialist small and mid-cap equities investment manager established by founders Andrew Mitchell and Steven Ng in 2012. The business currently manages approximately $2.0bn in capital across two investment strategies on behalf of institutional superannuation funds, family offices, private wealth groups and individual investors. The investment team comprises 12 investment professionals drawn from a diverse range of backgrounds working across all Ophir funds.

ABOUT THE PORTFOLIO MANAGERS

Senior Portfolio Managers Andrew Mitchell and Steven Ng co-founded Ophir Asset Management in 2012 after previously managing capital together at Paradice Investment Management. Under their stewardship, the fund managed by Andrew and Steven at Paradice was the top performing equities fund in Australia from 2007-2011 versus the fund manager surveys (inclusive of the GFC). At Ophir, Andrew and Steven are Senior Portfolio Managers for the Ophir Opportunities Fund, Ophir High Conviction Fund and Ophir Global Opportunities Fund.

KEY INVESTOR CONTACTS

INVESTOR ADMIN QUERIES

Boardroom Pty Limited (Registry)

T: 1300 737 760 E: [email protected]

INVESTOR & ADVISER INFORMATION

George Chirakis (Chief Executive) T: 02 8006 5476 E: [email protected]

The Trust Company (RE Services) Limited ABN 45 003 278 831 AFSL 235150 (Responsible Entity) is the responsible entity of Ophir High Conviction Fund (the Fund). This document has been prepared by Ophir Asset Management Pty Ltd ABN 88 156 146 717 AFSL 420 082 (Ophir), the investment manager of the Fund and is authorised for release by The Trust Company (RE Services) Limited as responsible entity and the issuer of units in the Trust. The information is of general nature only and has been prepared without taking into your account your objectives, financial situation or needs. Before making an investment decision, you should consider obtaining professional investment advice that takes into account your personal circumstances and should read the current product disclosure statement (PDS) of the Fund. Neither the Responsible Entity nor Ophir guarantees repayment of capital or any particular rate of return from the Fund. All opinions and estimates included in this document constitute judgements of Ophir as at the date of the document and are subject to change without notice. Past performance is not a reliable indicator of future performance. Ophir accepts no liability for any inaccurate, incomplete or omitted information of any kind or any losses by using this information.

CONTACT DETAILS

George Chirakis (Chief Executive) T: 02 8006 5476

E: [email protected]

www.ophiram.com

INVESTMENT UPDATE AND NTA REPORT - FEBRUARY 2021

AI assistant

OPHIR HIGH CONVICTION FUND Net Asset Value 2021

65501_rns_2021-03-09_767492bc-b1b8-4122-9dfc-c3f3959b507f.pdf