Sestante has made a number of changes across its Dynamic and ESG Focus Dynamic Managed Accounts, including changes to Australian equity allocations and the replacement of a global equities manager within the ESG portfolios. Sestante Dynamic Managed Accounts What changed All portfolios sold their holding in Bennelong Ex 20 Australian Equities, with the allocation redirected to iShares Core S&P/ASX 200 ETF (IOZ) and First Sentier Australian Small Companies. Bennelong Ex 20 has underperformed over the past 18 months and we do not believe market conditions over the next six to 12 months will favour Bennelong's investment approach. We have maintained exposure to the ex-100 segment of the Australian market through First Sentier Australian Small Companies, which we believe provides a more style-neutral and defensive option. In most portfolios, approximately 40% of the former Bennelong allocation has been directed to First Sentier Australian Small Companies, with the remainder allocated to IOZ. Due to the relatively small holding, the Conservative portfolio purchased IOZ only. Portfolio trades Investment Conservative ModeratelyConservative Balanced Assertive Aggressive Bennelong Ex 20 -1.3% -3.0% -4.6% -6.7% -8.3% First Sentier Small Companies – +1.2% +1.8% +2.7% +3.3% iShares Core S&P/ASX 200 ETF (IOZ) +1.3% +1.8% +2.8% +2.0% +5.0% Sestante ESG Focus Dynamic Managed Accounts What changed The Ironbark Royal London Concentrated Global Share Fund has been removed from all ESG Focus portfolios and replaced with the AXA IM Sustainable Equity Fund. The manager recently purchased two tobacco stocks for the portfolio. The Investment Committee determined that these investments did not meet the ESG Focus screens and therefore decided to replace the fund. In the Sestante ESG Focus Conservative portfolio, an additional 4% was reallocated between Australian and international fixed income to bring the portfolio into line with its asset allocation ranges. Portfolio trades Investment Conservative ModeratelyConservative Balanced Assertive Aggressive Ironbark Royal London Concentrated Global Share Fund -4.0% -5.4% -7.4% -9.6% -9.8% AXA IM Sustainable Equity Fund +4.0% +5.4% +7.4% +9.6% +9.8% More information For more information about these portfolio changes, please contact Andrew Davies or Joel Sasim. Questions or enquiries? If you have any questions, please contact us or email [email protected]. Sales enquiries Vilma Attanasio Director of Sales & Distribution 0411 262 921 | [email protected] Portfolio ChangesNews