WAM ALTERNATIVE ASSETS LIMITED — Net Asset Value 2016

Dec 12, 2016

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13 December 2016

Dear Shareholder

Blue Sky Alternatives Access Fund Limited (ASX:BAF) – Net Tangible Assets (‘NTA’) per share for November 2016

BAF is pleased to report a pre-tax NTA increase to $1.0804 per share, a gain of 0.3% for the month.

During November BAF raised approximately $47 million through a 1 for 3 non-renounceable entitlement offer. This additional capital has increased the Alternatives Fund’s pre-tax net assets to approximately $185 million. The entitlement offer was raised at a slight premium to NTA and accordingly (after costs) was the main contributor to the increase in pre-tax NTA for the month. Increases in two student accommodation funds were also recorded following valuation reviews.

BAF commenced deployment of the entitlement offer proceeds in November, with $16.75 million invested into three assets:

• Blue Sky Water Fund ~ $11.0 million invested to maintain the Water Fund as a cornerstone position for the Alternatives Fund, and take advantage of current attractive buying opportunities in the Australian water entitlement market;

• Blue Sky Private Equity aCommerce Fund 2 ~ a $2.5 million allocation to a follow-on venture capital funding round into existing portfolio company aCommerce Group Limited; and

• Cove Property Group 441 Ninth Avenue Trust ~ a $3.25 million initial investment (65% first call of a $5.0 million total commitment) into the second asset acquired by Blue Sky’s joint venture with Cove Property Group. This trust has acquired a Manhattan office tower in a A$400 million transaction, which it will redevelop into a Class A office tower within a five-minute walk of Penn Station, Hudson Yards and Manhattan West.

With a range of attractive investment opportunities in the pipeline, the Alternatives Fund remains on track to deploy the capital raised from the entitlement offer within the previously announced estimate of 3-5 months.

As part of the Alternatives Fund’s half year accounting process, and in accordance with its valuation policy, annual independent valuation reviews are currently being completed across a range of funds in private equity, venture capital and private real estate. The result of these reviews will be reflected in December 2016 NTA.

Yours faithfully

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Andrew Champion Executive Director

I mportant note

BSAAF Management Pty Ltd ABN 82 168 923 279 has prepared the information in this document. This document has been prepared for the purpose of providing general information only, without taking account of any particular investor’s objectives, financial situation or needs. It is not an offer or invitation for subscription or purchase, or a recommendation of any financial product and is not intended to be relied upon by investors in making an investment decision. Past performance is not a reliable indicator of future performance.

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MONTHLY UPDATE NOVEMBER 2016

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NET TANGIBLE ASSETS – AS AT 30 NOVEMBER 2016[1]

Net Tangible Assets (NTA) per share (pre-tax) $ 1.0804 Net Tangible Assets (NTA) per share (post-tax) $ 1.0641

1. NTA figures in this report are unaudited.

NET TANGIBLE ASSETS – SINCE INCEPTION

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1.10
3.0 cent fully franked dividend
1.08
1.06
1.04 5.0 cent fully
franked dividend
1.02
1.00 options exercised
0.98
0.96
0.94
0.92
0.90
16 June 2014
(date of listing)
Aug-14 Nov-14 Feb-14 May-15 Aug-15 Nov-15 Feb-15 May-16 Aug-16 Nov-16
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FUND PERFORMANCE[3]

Period	Pre-Tax	Post-Tax
1 month	0.32%	0.93%
3 months	2.83%	3.95%
6 months	4.98%	5.75%
12 months	8.88%	9.72%

1. Includes NTA growth, dividends and franking credits.

SECTOR WEIGHTINGS

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Cash Private Equity
18.7% 14.2% Private Equity &
Venture Venture Capital
Capital
5.9%
Other
Real Estate Real Assets
7.6%
Student Water Fund Private Real Estate
Accommodation 22.8%
Projects
13.8%
Residential Other Cash
Development Real
Projects Assets
9.9% 7.0%
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PORTFOLIO VALUATION[2]

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Current value ($’m) % of Portfolio
PRIVATE EQUITY AND VENTURE CAPITAL
Private Equity $26.05 14.2%
Venture Capital $10.91 5.9%
Subtotal $36.96 20.1%
REAL ASSETS
Water Fund $41.94 22.8%
Other Real Assets $12.88 7.0%
Subtotal $54.82 29.8%
PRIVATE REAL ESTATE
Residential Development Projects $18.22 9.9%
Student Accommodation Projects $25.40 13.8%
Other Real Estate $14.00 7.6%
Subtotal $57.62 31.3%
Cash $34.45 18.7%
GRAND TOTAL $183.85 100.0%
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1. Figures in this report are unaudited. The current value for each investment in the table above is consistent with the Alternatives Fund’s investment valuation policy, which may be found at blueskyfunds.com.au/alternativesfund. Note that the total value of the investment portfolio will not directly reconcile to the NTA due to the impact of interest revenue, management fees, accrued performance fees, etc.

ABOUT THE ALTERNATIVES FUND

Blue Sky Alternatives Access Fund Limited (‘Alternatives Fund’) is a listed investment company that invests in a diverse range of alternative assets including:

• Private equity and venture capital;

• Real assets;

• Private real estate; and

• Hedge funds.

The Alternatives Fund is the only listed investment company on the Australian Securities Exchange (‘ASX’) that allows investors to make a strategic allocation to a diverse portfolio of directly managed alternative assets.

The Alternatives Fund is listed on the ASX under the code BAF.

OBJECTIVES OF THE ALTERNATIVES FUND

The primary objectives of the Alternatives Fund are to:

• Deliver long term absolute returns to shareholders, comprised of both capital appreciation and a dividend yield (franked to either 100% or the maximum extent possible);

• Provide investors with access to a diverse range of alternative assets; and

• Provide investors with the ability to invest in alternative assets through an ASX listed structure that is more readily accessible and liquid than is typical for many alternative assets.

MANAGER OF THE ALTERNATIVES FUND

BSAAF Management Pty Limited (‘Manager’) is the manager of the Alternatives Fund. All investments made by the Manager on behalf of the Alternatives Fund are directly managed by wholly owned subsidiaries of Blue Sky Alternative Investments Limited (ASX:BLA) (‘Blue Sky’).

Blue Sky has $2.4 billion in assets under management and a ten year track record of generating overall returns to investors in its funds of 16.7% p.a. (net of fees, since inception).[4]

Important Notice: BSAAF Management Pty Ltd ACN 168 923 279 (‘Manager’) has prepared the information in this announcement. This announcement has been prepared for the purposes of providing general information only and does not constitute an offer, invitation, solicitation or recommendation with respect to the purchase or sale of any securities in the Alternatives Fund nor does it constitute financial product or investment advice nor take into account your investment objectives, taxation situation, financial situation or needs. An investor must not act on the basis of any matter contained in this announcement in making an investment decision but must make its own assessment of the Alternatives Fund and conduct its own investigations and analysis. Past performance is not a reliable indicator of future performance. Further, forward looking statements, including projections, guidance on future earnings, opinions and estimates in this announcement (‘Forward Looking Statements’) are based on assumptions and contingencies which are subject to change, as are statements about market and industry trends, which are based on interpretations of current market conditions. These statements are also subject to known and unknown risks and uncertainties many of which are outside the control of the Manager or the Alternatives Fund. Forward Looking Statements are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance.

1. Assets under management as at 30 September 2016. Overall returns to investors in Blue Sky managed funds are equity weighted to 30 June 2016. For more details, please refer to BLA’s regular ASX announcements on the investment performance of its funds. Please also note that past performance is not a reliable indicator of future performance.

FURTHER INFORMATION

Executive Director: Andrew Champion

Executive Director contact: achampion@blueskyfunds.com.au Website: blueskyfunds.com.au/alternativesfund Investor enquiries: investorservices@alternativesfund.com.au Phone: +61 7 3270 7500

MONTHLY UPDATE NOVEMBER 2016

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During November the pre-tax NTA of the Alternatives Fund increased by 0.35 cents per share, or 0.32%, to $1.0804.

As previously announced, the 1 for 3 non-renounceable entitlement offer to raise approximately $47 million (before offer costs) was successfully completed during November.

This additional capital has increased the Alternatives Fund’s pre-tax net assets to approximately $185 million. The entitlement offer was raised at a slight premium to NTA and accordingly (after costs) was the main contributor to the increase in pre-tax NTA for the month. Increases in two student accommodation funds were also recorded following valuation reviews.

The Alternatives Fund commenced deploying proceeds of the entitlement offer during November, investing $16.75 million into three assets within the Private Equity and Venture Capital, Real Assets and Private Real Estate asset classes.

INVESTMENT PERFORMANCE

• Blue Sky Water Fund

The Blue Sky Water Fund was flat for the month of November, after the market value of the majority of the Water Fund’s water entitlements remained relatively unchanged from last month.

The Water Fund also received further water allocation volume throughout November, which is expected to be the final allocation for this Water Year (12 months ended 30 June 2017). Although the spot price of water allocation has been steady over recent months, the Water Fund sees upside potential throughout the summer irrigation season. The Water Fund is expected to declare its interim dividend during the month of December and is expected to be received by the Alternatives Fund in January 2017.

• Student Accommodation Fund V

The Blue Sky Student Accommodation Fund V is progressing well and in line with Blue Sky’s investment thesis, with development approval received and contractors on site in early 2017. The project is developing a ~574 bed purpose-built student accommodation facility immediately adjacent to the University of Melbourne. The current construction program targets an opening date of January 2018, in time for the first semester of the 2018 academic year.

In accordance with the Alternatives Fund’s valuation policy, an independent valuation review of the Student Accommodation Fund V was completed in November, being 12 months since the Alternatives Fund’s initial investment. Following the independent review, a 4.5% uplift in carrying value has been recognised.

• Student Accommodation Fund VI

The Alternatives Fund also reviewed the carrying value of its investment in the Student Accommodation Fund VI during November, after development approval was received and construction commenced. Accordingly, a 5.0% uplift in the carrying value of this fund has been recognised.

The Blue Sky Student Accommodation Fund VI will develop and operate a ~546 bed purpose-built student accommodation facility in the Brisbane suburb of Toowong, in close proximity to the University of Queensland.

HALF-YEAR INDEPENDENT VALUATION REVIEWS

Independent external reviews are currently being conducted for a number of funds as part of the Alternatives Fund’s half year end process and in accordance with its investment valuation policy. These include:

• several Private Equity investments including Aquila, Vinomofo and THR1VE (a VC2014 portfolio company);

• a number of residential development investments, many of which are anticipated to exit in the short term; and

• Cove Property Group’s first project at 2 Rector Street, Manhattan, which is on track to complete its repositioning works on time and on budget by the end of CY2017.

MONTHLY UPDATE NOVEMBER 2016

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NEW INVESTMENTS

• Blue Sky Water Fund

The Alternatives Fund deployed $11.0 million into the Blue Sky Water Fund during November, an investment which maintains the Water Fund’s position as a cornerstone allocation for the Alternatives Fund.

The Water Fund is well positioned to take advantage of select buying opportunities following the very wet winter this year, and the Alternatives Fund continues to maintain strong conviction around the long term yield and capital gain opportunity in relation to this allocation.

• Blue Sky Private Equity aCommerce Fund 2

The Alternatives Fund invested $2.5 million into the Blue Sky Private Equity aCommerce Fund 2 during November. This fund will be the sole investor in a US$10.0 million follow-on venture capital round into aCommerce Group Limited, the largest end-to-end e-commerce solutions provider in South-East Asia.

With a deeply experienced management team and operations in Thailand, Philippines and Indonesia, aCommerce provides robust localised e-commerce solutions for over 175 leading global brands and retail clients. aCommerce’s product offering facilitates rapid market penetration for its clients through providing an outsourced solution for services such as local language e-commerce website design, localised marketing, channel management, warehousing, delivery, logistics, customer care and cross-border management. aCommerce experienced robust growth in 2016 with the business growing top-line revenue by 101%.

This investment provides aCommerce with additional runway prior to an expected Series B venture capital financing in 2017 and provides the Alternatives Fund with an opportunity to follow its initial $1.0 million investment into the aCommerce Fund 1.

• Cove Property Group 441 Ninth Avenue Trust

The Alternatives Fund’s final investment in November was a $3.25 million allocation (being a 65% first call of a total $5.0 million commitment) into the Cove Property Group (‘Cove’) 441 Ninth Avenue Trust. This trust has acquired a building located at 441 Ninth Avenue in Manhattan.

The transaction value for the asset exceeds A$400 million, with the majority of the equity for this transaction being provided by a blue chip US institutional investor.

441 Ninth Avenue is an existing eight storey building located within a five-minute walk of Penn Station, Hudson Yards and Manhattan West. Cove plans to fully redevelop the property into a Class A office tower in one of Manhattan’s most rapidly expanding submarkets, an area which has already begun to benefit from a projected US$20 billion of private and public capital expenditure, and welcomed an influx of global blue chip tenants.

Cove is a Blue Sky joint venture established in 2015 to acquire and manage institutional quality commercial real estate with an initial focus on investment opportunities in New York City.

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MONTHLY UPDATE NOVEMBER 2016

SUMMARY OF CURRENT INVESTMENTS

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Amount Date % allocated Anticipated
Fund name invested [5] invested [6] capital Target IRR [7] exit [8] Description
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PRIVATE EQUITY & VENTURE CAPITAL
PRIVATE EQUITY
Early Learning Fund	4,000,000	Jun-14	3.0%		CY17	Holds equity in Foundation Early Learning Limited, a premium Australian child care operator.
Wild Breads Fund	2,000,000	Jun-14	1.5%		CY17 - CY18	Holds equity in Wild Breads Pty Ltd, a leading business in the rapidly growing artisan and specialty bread category in Australia.
Hospital Pharmacy Services Fund	3,500,000	Dec-14	2.6%		CY17	Holds equity in Hospital Pharmacy Services Pty Ltd, Australia's largest outsourced hospital and oncology pharmacy business.
Origo Education Fund	1,500,000	Jun-15	1.1%		CY19 - CY20	Holds equity in Origo Education, a rapidly growing Australian business providing digital and print education instructional materials to in the United States of America, Australia, Canada and New Zealand.
Hotels Fund	6,000,000	Jun-15	4.5%		CY19 - CY20	Holds equity in the GM Hotels, a portfolio of three freehold and seven long-term leasehold hotels in South Australia.
Aquila Fund	4,000,000	Dec-15	3.0%		CY19 - CY20	Holds equity in Aquila, an Australian retail business focusing on the men’s footwear and smart casual fashion segment.
Digital Outdoor Advertising Fund	2,110,595	Feb-16	1.6%		CY20 - CY21	Holds equity in a US-based business which will construct, own and operate a network of digital billboards in a major US metropolitan market.
Wild Breads Convertible Note Fund	750,000	Aug-16	0.6%		CY17 - CY18	A fund to provide follow-on expansion capital into Wild Breads Pty Ltd, a leading business in the rapidly growing artisan and specialty bread category in Australia.
Hospital Pharmacy Services Fund B	1,000,000	Sep-16	0.7%		CY17	A fund to provide follow-on capital into Hospital Pharmacy Services Pty Ltd, Australia's largest outsourced hospital and oncology pharmacy business, to acquire a market-leading pharmacy services business.
Total Private Equity	24,860,595		18.5%	25.0% - 30.0%

1. Total capital deployed to date, inclusive of follow-on investments and net of capital returned.

2. Date of initial investment.

3. These figures represent the Manager’s general expectations as to the returns the relevant asset class can generate over time. These figures are not intended to represent a forecast or guidance and do not take into account the performance to date of the existing portfolio of investments or the Manager’s view on the likely future performance of any one or more specific assets. 8. These dates reflect the most recent information provided to the Manager by the manager of the relevant fund. An exit in this context generally refers to a disposal of the underlying fund assets by the fund’s manager rather than the disposal by the Alternatives Fund of its investment (for which there is typically no secondary market or redemption mechanism). These dates are subject to change at the discretion of the relevant fund’s manager taking into account factors including investment performance and prevailing market conditions.

4. Important Notice: BSAAF Management Pty Ltd ACN 168 923 279 (‘Manager’) has prepared the information in this announcement. This announcement has been prepared for the purposes of providing general information only and does not constitute an offer, invitation, solicitation or recommendation with respect to the purchase or sale of any securities in the Alternatives Fund nor does it constitute financial product or investment advice nor take into account your investment objectives, taxation situation, financial situation or needs. An investor must not act on the basis of any matter contained in this announcement in making an investment decision but must make its own assessment of the Alternatives Fund and conduct its own investigations and analysis. Past performance is not a reliable indicator of future performance. Further, forward looking statements, including projections, guidance on future earnings, opinions and estimates in this announcement (‘Forward Looking Statements’) are based on assumptions and contingencies which are subject to change, as are statements about market and industry trends, which are based on interpretations of current market conditions. These statements are also subject to known and unknown risks and uncertainties many of which are outside the control of the Manager or the Alternatives Fund. Forward Looking Statements are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance.

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MONTHLY UPDATE NOVEMBER 2016

SUMMARY OF CURRENT INVESTMENTS (CONT.)

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Amount Date % allocated Anticipated
Fund name invested [5] invested [6] capital Target IRR [7] exit [8] Description
VENTURE CAPITAL
A fund to invest in a diversified portfolio of venture capital investments, including Parcel Point/ Fluent
VC2014 Fund 4,000,000 Jun-14 3.0% CY20
Retail, Shoes of Prey, Vinomofo, THR1VE and Eloquii.
Holds equity in Shoes of Prey, a rapidly growing fashion footwear company that has developed a unique
Shoes of Prey Fund 1,000,000 Oct-15 0.7% CY20
platform enabling customised women’s footwear to be manufactured and sold ‘on demand’.
Vinomofo Fund 3,000,000 Dec-15 2.2% CY19 - CY20 Holds equity in Vinomofo, Australia's leading pure-play online wine retailer.
aCommerce Fund 1,305,664 Jul-16 1.0% CY20 Has an interest in aCommerce, the largest provider of outsourced e-commerce solutions in South East Asia.
A fund to provide follow-on capital into aCommerce, the largest provider of outsourced e-commerce
aCommerce Fund II 2,500,000 Nov-16 1.9% CY20
solutions in South East Asia.
Total Venture Capital 11,805,664 8.8% 30.0%
Total Private Equity & Venture Capital 36,666,259 27.3%
REAL ASSETS
WATER RIGHTS
Water Fund 35,000,000 Jun-14 26.1% Open-ended Invests in a diversified portfolio of agricultural water entitlements, largely in the Southern Murray-Darling Basin.
Total Water Rights 35,000,000 26.1% 10.0% - 14.0%
OTHER REAL ASSETS
Holds equity in Gundaline Pty Ltd, the owner and operator of a large-scale irrigated cropping business east
Agriculture Fund 4,365,000 Jun-14 3.3% CY20
of Hay in NSW.
Holds the freehold property and business assets comprising Hillston Citrus, an irrigated citrus orchard
Agriculture Fund II 4,000,000 Oct-15 3.0% CY22
near Hillston in NSW.
Holds equity in Water Utilities Group, which owns and operates a portfolio of high-quality water
Water Utilities Australia Fund II 2,500,000 Oct-14 1.9% CY18
infrastructure assets.
Livestock Opportunity Fund 1,000,000 Jun-16 0.7% CY22 - CY23 To hold equity in certain unique elements of the Australian livestock value chain.
Total Other Real Assets 11,865,000 8.8% 15.0%
Total Real Assets 46,865,000 34.9%
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1. Total capital deployed to date, inclusive of follow-on investments and net of capital returned.

2. Date of initial investment.

3. These figures represent the Manager’s general expectations as to the returns the relevant asset class can generate over time. These figures are not intended to represent a forecast or guidance and do not take into account the performance to date of the existing portfolio of investments or the Manager’s view on the likely future performance of any one or more specific assets. 8. These dates reflect the most recent information provided to the Manager by the manager of the relevant fund. An exit in this context generally refers to a disposal of the underlying fund assets by the fund’s manager rather than the disposal by the Alternatives Fund of its investment (for which there is typically no secondary market or redemption mechanism). These dates are subject to change at the discretion of the relevant fund’s manager taking into account factors including investment performance and prevailing market conditions.

4. Important Notice: BSAAF Management Pty Ltd ACN 168 923 279 (‘Manager’) has prepared the information in this announcement. This announcement has been prepared for the purposes of providing general information only and does not constitute an offer, invitation, solicitation or recommendation with respect to the purchase or sale of any securities in the Alternatives Fund nor does it constitute financial product or investment advice nor take into account your investment objectives, taxation situation, financial situation or needs. An investor must not act on the basis of any matter contained in this announcement in making an investment decision but must make its own assessment of the Alternatives Fund and conduct its own investigations and analysis. Past performance is not a reliable indicator of future performance. Further, forward looking statements, including projections, guidance on future earnings, opinions and estimates in this announcement (‘Forward Looking Statements’) are based on assumptions and contingencies which are subject to change, as are statements about market and industry trends, which are based on interpretations of current market conditions. These statements are also subject to known and unknown risks and uncertainties many of which are outside the control of the Manager or the Alternatives Fund. Forward Looking Statements are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance.

MONTHLY UPDATE NOVEMBER 2016

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SUMMARY OF CURRENT INVESTMENTS (CONT.)

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Amount Date % allocated Anticipated
Fund name invested [5] invested [6] capital Target IRR [7] exit [8] Description
PRIVATE REAL ESTATE
RESIDENTIAL DEVELOPMENT INVESTMENTS
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Regina Street Greenslopes Trust	1,000,000	Jun-14	0.7%		2H FY17	A residential development of 61 apartments (29 one bedroom and 32 two bedroom) in the South Brisbane suburb of Greenslopes.
Logan Road Greenslopes Trust	1,000,000	Aug-14	0.7%		2H FY17	A residential development of 53 apartments (12 one bedroom, 36 two bedroom and 5 three bedroom) in the South Brisbane suburb of Greenslopes.
Main Street Kangaroo Point Trust	2,000,000	Aug-14	1.5%		2H FY17	A residential development of 105 apartments (25 one bedroom, 72 two bedroom and 8 three bedroom) in the Central Brisbane suburb of Kangaroo Point.
Grantson Street Windsor Trust	1,000,000	Aug-14	0.7%		2H FY17	A residential development of 65 apartments (2 one bedroom, 49 two bedroom and 14 three bedroom) in the North Brisbane suburb of Windsor.
Duke Street Kangaroo Point Trust	2,000,000	Sep-14	1.5%		1H FY18	A residential development of 125 apartments (46 one bedroom, 75 two bedroom and 4 three bedroom) in the Central Brisbane suburb of Kangaroo Point.
Flora Street Greenslopes Trust	1,000,000	Jun-15	0.7%		1H FY18	A residential development of 107 apartments (15 one bedroom, 84 two bedroom and 8 three bedroom) in the South Brisbane suburb of Greenslopes.
19 Railway Terrace Milton Trust	2,000,000	Sep-15	1.5%		1H FY18	A residential development of 82 apartments (10 one bedroom, 64 two bedroom and 8 three bedroom) in the Brisbane suburb of Milton.
Wellington Road East Brisbane Trust	2,000,000	Sep-15	1.5%		1H FY18	A residential development of 71 apartments (17 one bedroom, 46 two bedroom and 8 three bedroom) in the Brisbane suburb of East Brisbane.
Wellington Road East Brisbane Trust II	1,000,000	Nov-15	0.7%		2H FY18	The second stage of the Wellington Road East Brisbane development, consisting of 75 apartments (17 one bedroom, 50 two bedroom and 8 three bedroom).
High Street Lutwyche Trust	1,000,000	Nov-15	0.7%		2H FY18	A residential development of 59 apartments (15 one bedroom, 41 two bedroom and 3 three bedroom) in the North Brisbane suburb of Lutwyche.
Retirement Living Fund	3,000,000	Jun-16	2.2%		CY21	A project to develop a multi-stage independent living retirement precinct in Brisbane.
Total Residential Development investments	17,000,000		12.7%	20.0% - 25.0%

1. Total capital deployed to date, inclusive of follow-on investments and net of capital returned.

2. Date of initial investment.

3. These figures represent the Manager’s general expectations as to the returns the relevant asset class can generate over time. These figures are not intended to represent a forecast or guidance and do not take into account the performance to date of the existing portfolio of investments or the Manager’s view on the likely future performance of any one or more specific assets. 8. These dates reflect the most recent information provided to the Manager by the manager of the relevant fund. An exit in this context generally refers to a disposal of the underlying fund assets by the fund’s manager rather than the disposal by the Alternatives Fund of its investment (for which there is typically no secondary market or redemption mechanism). These dates are subject to change at the discretion of the relevant fund’s manager taking into account factors including investment performance and prevailing market conditions.

4. Important Notice: BSAAF Management Pty Ltd ACN 168 923 279 (‘Manager’) has prepared the information in this announcement. This announcement has been prepared for the purposes of providing general information only and does not constitute an offer, invitation, solicitation or recommendation with respect to the purchase or sale of any securities in the Alternatives Fund nor does it constitute financial product or investment advice nor take into account your investment objectives, taxation situation, financial situation or needs. An investor must not act on the basis of any matter contained in this announcement in making an investment decision but must make its own assessment of the Alternatives Fund and conduct its own investigations and analysis. Past performance is not a reliable indicator of future performance. Further, forward looking statements, including projections, guidance on future earnings, opinions and estimates in this announcement (‘Forward Looking Statements’) are based on assumptions and contingencies which are subject to change, as are statements about market and industry trends, which are based on interpretations of current market conditions. These statements are also subject to known and unknown risks and uncertainties many of which are outside the control of the Manager or the Alternatives Fund. Forward Looking Statements are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance.

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MONTHLY UPDATE NOVEMBER 2016

SUMMARY OF CURRENT INVESTMENTS (CONT.)

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Amount Date % allocated Anticipated
Fund name invested [5] invested [6] capital Target IRR [7] exit [8] Description
STUDENT ACCOMMODATION INVESTMENTS
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Student Accommodation Fund	1,500,000	Dec-14	1.1%		CY20 - CY22	A project to develop and operate a purpose-built, 286 bed student accommodation precinct in the Brisbane suburb of Woolloongabba, close to several large tertiary education institutions.
Student Accommodation Fund II	5,000,000	Mar-15	3.7%		CY20 - CY22	A project to develop and operate a purpose-built, 733 bed student accommodation precinct in the Brisbane suburb of South Brisbane, close to several large tertiary education institutions.
Student Accommodation Fund III	6,000,000	Jun-15	4.5%		CY20 - CY22	A project to develop and operate a purpose-built, 789 bed student accommodation precinct on La Trobe Street in the Melbourne CBD and in close proximity to six university campuses.
Student Accommodation Fund IV	3,500,000	Jun-15	2.6%		CY20 - CY22	A project to develop and operate a purpose-built, 415 bed student accommodation precinct on Waymouth Street in Adelaide’s West End, close to Uni SA, Adelaide Uni and a new $3b health and biomedical precinct.
Student Accommodation Fund V	3,000,000	Nov-15	2.2%		CY20 - CY22	A project to develop and operate a purpose-built, 574 bed student accommodation precinct on Peel Street, North Melbourne opposite the University of Melbourne Parkville Campus.
Student Accommodation Fund VI	2,500,000	May-16	1.9%		CY22	A project to develop and operate a purpose-built, 546 bed student accommodation precinct in the Brisbane suburb of Toowong, a short distance from the University of Queensland.
Total Student Accommodation investments	21,500,000		16.0%	13.0% - 18.0%

1. Total capital deployed to date, inclusive of follow-on investments and net of capital returned.

2. Date of initial investment.

3. These figures represent the Manager’s general expectations as to the returns the relevant asset class can generate over time. These figures are not intended to represent a forecast or guidance and do not take into account the performance to date of the existing portfolio of investments or the Manager’s view on the likely future performance of any one or more specific assets. 8. These dates reflect the most recent information provided to the Manager by the manager of the relevant fund. An exit in this context generally refers to a disposal of the underlying fund assets by the fund’s manager rather than the disposal by the Alternatives Fund of its investment (for which there is typically no secondary market or redemption mechanism). These dates are subject to change at the discretion of the relevant fund’s manager taking into account factors including investment performance and prevailing market conditions.

4. Important Notice: BSAAF Management Pty Ltd ACN 168 923 279 (‘Manager’) has prepared the information in this announcement. This announcement has been prepared for the purposes of providing general information only and does not constitute an offer, invitation, solicitation or recommendation with respect to the purchase or sale of any securities in the Alternatives Fund nor does it constitute financial product or investment advice nor take into account your investment objectives, taxation situation, financial situation or needs. An investor must not act on the basis of any matter contained in this announcement in making an investment decision but must make its own assessment of the Alternatives Fund and conduct its own investigations and analysis. Past performance is not a reliable indicator of future performance. Further, forward looking statements, including projections, guidance on future earnings, opinions and estimates in this announcement (‘Forward Looking Statements’) are based on assumptions and contingencies which are subject to change, as are statements about market and industry trends, which are based on interpretations of current market conditions. These statements are also subject to known and unknown risks and uncertainties many of which are outside the control of the Manager or the Alternatives Fund. Forward Looking Statements are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance.

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MONTHLY UPDATE NOVEMBER 2016

SUMMARY OF CURRENT INVESTMENTS (CONT.)

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Amount Date % allocated Anticipated
Fund name invested [5] invested [6] capital Target IRR [7] exit [8] Description
OTHER REAL ESTATE INVESTMENTS
To hold the freehold title to a 3,479m [2] single-tenant industrial manufacturing, distribution and office facility
Darra Industrial Income Fund 2,000,000 Dec-14 1.5% CY18
sited on a 7,254m [2] land holding in the Brisbane suburb of Darra.
Cove Property Group 2 Rector Street A project to acquire, reposition and lease up a 26 storey building at 2 Rector Street in the Financial District,
6,974,473 Feb-16 5.2% CY23
Trust Manhattan, New York.
Cove Property Group 441 Ninth A trust to acquire and redevelop an existing eight storey building at 441 Ninth Avenue, Manhattan, New
3,250,000 Nov-16 2.4% CY21
Avenue Trust York.
Total Other Real Estate Investments 12,224,473 9.1% 13.0% - 18.0%
Total Private Real Estate 50,724,473 37.8%
Total portfolio 134,255,733 100.0%
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1. Total capital deployed to date, inclusive of follow-on investments and net of capital returned.

2. Date of initial investment.

3. These figures represent the Manager’s general expectations as to the returns the relevant asset class can generate over time. These figures are not intended to represent a forecast or guidance and do not take into account the performance to date of the existing portfolio of investments or the Manager’s view on the likely future performance of any one or more specific assets. 8. These dates reflect the most recent information provided to the Manager by the manager of the relevant fund. An exit in this context generally refers to a disposal of the underlying fund assets by the fund’s manager rather than the disposal by the Alternatives Fund of its investment (for which there is typically no secondary market or redemption mechanism). These dates are subject to change at the discretion of the relevant fund’s manager taking into account factors including investment performance and prevailing market conditions.

Important Notice: BSAAF Management Pty Ltd ACN 168 923 279 (‘Manager’) has prepared the information in this announcement. This announcement has been prepared for the purposes of providing general information only and does not constitute an offer, invitation, solicitation or recommendation with respect to the purchase or sale of any securities in the Alternatives Fund nor does it constitute financial product or investment advice nor take into account your investment objectives, taxation situation, financial situation or needs. An investor must not act on the basis of any matter contained in this announcement in making an investment decision but must make its own assessment of the Alternatives Fund and conduct its own investigations and analysis. Past performance is not a reliable indicator of future performance. Further, forward looking statements, including projections, guidance on future earnings, opinions and estimates in this announcement (‘Forward Looking Statements’) are based on assumptions and contingencies which are subject to change, as are statements about market and industry trends, which are based on interpretations of current market conditions. These statements are also subject to known and unknown risks and uncertainties many of which are outside the control of the Manager or the Alternatives Fund. Forward Looking Statements are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance.

MONTHLY UPDATE NOVEMBER 2016

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TIMELINE – EXIT HORIZON FOR ALL INVESTMENTS[8]

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2H FY17	Regina Street Greenslopes Trust
	Main Street Kangaroo Point Trust
	Grantson Street Windsor Trust
	Logan Road Greenslopes Trust
CY17	Wild Breads Fund
	Wild Breads Convertible Note Fund
	Early Learning Fund
	Hospital Pharmacy Services Fund
	Hospital Pharmacy Services Fund B
1H FY18	Duke St Kangaroo Point Trust
	Wellington Road East Brisbane Trust
	Flora Street Greenslopes Trust
	19 Railway Terrace Milton Trust
2H FY18	High Street Lutwyche Trust
	Wellington Road East Brisbane Trust II
CY18	Darra Industrial Income Fund
	Water Utilities Australia Fund II
CY19-20	Origo Education Fund
	Hotels Fund
	Aquila Fund
	Vinomofo Fund
CY20	Student Accommodation Fund
	VC2014 Fund
	Agriculture Fund
	Shoes of Prey Fund
	aCommerce Fund
	aCommerce Fund II
CY20 - CY22	Student Accommodation Fund II
	Student Accommodation Fund III
	Student Accommodation Fund IV
	Student Accommodation Fund V
	Student Accommodation Fund VI
	Digital Outdoor Advertising Fund
CY21	Retirement Living Fund
	Cove Property Group 441 Ninth Avenue Trust
CY22	Agriculture Fund II
CY23	Cove Property Group 2 Rector Street Trust
	Livestock Opportunity Fund
Open-ended	Water Fund

1. These dates reflect the most recent information provided to the Manager by the manager of the relevant fund. An exit in this context generally refers to a disposal of the underlying fund assets by the fund’s manager rather than the disposal by the Alternatives Fund of its investment (for which there is typically no secondary market or redemption mechanism). These dates are subject to change at the discretion of the relevant fund’s manager taking into account factors including investment performance and prevailing market conditions.

Important Notice: BSAAF Management Pty Ltd ACN 168 923 279 (‘Manager’) has prepared the information in this announcement. This announcement has been prepared for the purposes of providing general information only and does not constitute an offer, invitation, solicitation or recommendation with respect to the purchase or sale of any securities in the Alternatives Fund nor does it constitute financial product or investment advice nor take into account your investment objectives, taxation situation, financial situation or needs. An investor must not act on the basis of any matter contained in this announcement in making an investment decision but must make its own assessment of the Alternatives Fund and conduct its own investigations and analysis. Past performance is not a reliable indicator of future performance. Further, forward looking statements, including projections, guidance on future earnings, opinions and estimates in this announcement (‘Forward Looking Statements’) are based on assumptions and contingencies which are subject to change, as are statements about market and industry trends, which are based on interpretations of current market conditions. These statements are also subject to known and unknown risks and uncertainties many of which are outside the control of the Manager or the Alternatives Fund. Forward Looking Statements are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance.