Antipodes Global Investment : Quarterly Shareholder Update

For personal use only

16 November 2021

By Electronic Lodgement

Market Announcements Office

ASX Ltd

20 Bridge Street

SYDNEY NSW 2000

Dear Sir/Madam,

Antipodes Global Investment Company Limited (ASX: APL) - Quarterly Shareholder Update

Please find attached a copy of the quarterly shareholder update for the quarter ending 30 September 2021.

For further information, please contact 1300 010 311.

Authorised by:

Calvin Kwok

Company Secretary

T 1300 010 311 E [e-mail]

Level 35, 60 Margaret Street, Sydney, NSW 2000 Australia Antipodes Global Investment Company Limited ABN 38 612 843 517

www.antipodespartners.com

For personal use only

Quarterly shareholder update 30 September 2021

Contents

Letter from the chairman	3
Market commentary	4
Company commentary	5
Performance analysis	6
Portfolio positioning	8
Feature: Frontier Communications Corporation	10
Outlook	13
onlyAppendix	18
use
Further information
1300 010 311
[e-mail]
antipodespartners.com/apl

Australia Head Office	UK Office
Antipodes Partners Limited	Antipodes Partners Limited
L vel 35, 60 Margaret St	6th Floor, Nova North
Sydney NSW 2000	11 Bressenden Place
Australia	London SW1E 5BY UK
personal
Disclaimer
For

Antipodes Partners Limited (ABN 29 602 042 035, AFSL 481 580) ('Antipodes Partners', 'Antipodes') is the investment manager of Antipodes Global Investment Company Limited ABN 38 612 843 517 ('APL' or the 'Company'). Antipodes Global Investment Company (ACN 612 843 517) is the issuer of the shares in the Company under the Offer Document. Any offer or sale of securities are made pursuant to definitive documentation, which describes the terms of the offer ('Offer Document') available at www.antipodespartners.com/apl. Any potential investor should c nsider the relevant Offer Document before deciding whether to acquire, or continue to hold units in, an investment. Past performance is for illustrative purposes only and is not indicative of future performance. This communication is for general information only and was prepared for multiple distribution. This communication is not, and does not constitute, an offer to sell or the solicitation, invitation or recommendation to purchase any securities and neither this communication nor anything contained in it forms the basis of any contract or commitment. Prospective investors who want to acquire under the offer will need to complete an application form that is in or accompanies the Offer Document. The Offer Document is an important document that should be read in its entirety before deciding whether to participate in the offer. Prospective investors should rely only on information in the Offer Document and any supplementary or replacement document. Prospective investors should contact their professional advisers with any queries after reading the Offer Document. Whilst APL and Antipodes Partners believe the information contained in this communication is reliable, no warranty is given as to its accuracy, reliability or completeness and persons relying on this information do so at their own risk. Subject to any liability which cannot be excluded under the relevant laws, APL and Antipodes Partners disclaim all liability to any person relying on the information contained in this communication in respect of any loss or damage (including consequential loss or damage), however caused, which may be suffered or arise directly or indirectly in respect of such information. The information is not intended as a securities recommendation or statement of opinion intended to influence a person or persons in making a decision in relation to investment. The information in this communication has been prepared without taking account of any person's objectives, financial situation or needs. Any persons relying on this information should obtain professional advice before doing so. The issuer is not licensed to provide financial product advice. Please consult your financial adviser before making a decision. Any opinions and forecasts reflect the judgment and assumptions of APL and Antipodes Partners and its representatives on the basis of information at the date of publication and may later change without notice. Any projections contained in this presentation are estimates only and may not be realised in the future. The information is not intended as a securities recommendation or statement of opinion intended to influence a person or persons in making a decision in relation to investment. Unauthorised use, copying, distribution, replication, posting, transmitting, publication, display, or reproduction in whole or in part of the information contained in this communication is prohibited without obtaining prior written permission from APL and Antipodes Partners. The Zenith Investment Partners ("Zenith") Australian Financial Services License No. 226872 rating (Antipodes Global Investment Company Limited rating issued May 2019) referred to in this document is limited to "General Advice" (as defined by the Corporations Act 2001) for Wholesale clients only. This advice has been prepared without taking into account the objectives, financial situation or needs of any individual. It is not a specific recommendation to purchase, sell or hold the relevant product(s). Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs. Investors should obtain a copy of, and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website. Zenith usually charges the product issuer, fund manager or a related party to conduct Product Assessments. Full details regarding Zenith's methodology, ratings definitions and regulatory compliance are available on our Product Assessment's and at http://www.zenithpartners.com.au/RegulatoryGuidelines

2 Antipodes Global Investment Company Limited ASX: APL | Quarterly shareholder update | 30 September 2021

Letter from the chairman

Dear fellow shareholders,

Welcome to the latest Company quarterly update, a comprehensive review of the Company's quarterly investment performance to 30 September 2021, together with a portfolio update and market outlook by Antipodes Partners Limited (Antipodes), the

onlyManager of the Company's portfolio of assets.

The update starts with commentary from Antipodes on the overall market during the past quarter in order to provide shareholders with context about the performance of the Company's portfolio.

The Company commentary section follows and is important this quarter as it provides an important update on the scheme of arrangement (Scheme) that, if implemented, will result in APL Shareholders exchanging their shares in APL for units in Antipodes Global Shares (Quoted Managed Fund) (AGX1), an existing open-ended active ETF quoted on the ASX, for which Antipodes Partners Limited is investment manager. The number of units received for each APL Share will be based on APL's net tangible assets relative to AGX1's net asset value immediately prior to implementation. APL Shareholders are encouraged

useto read the Scheme Bookletavailable on the Scheme website.

Pleasingly during the quarter and off the back of strong FY21 Company results, the Company paid a final dividend of $0.04 per hare (100% franked) on 30 September 2021. This resulted in the full year FY21 dividend of $0.06 per share, up 33% on the

$0.045 per share in FY20.

This is followed by a summary of the Company's portfolio performance and portfolio positioning. The feature article for the

quarter is on Frontier Communications Corporation. Antipodes see Frontier as a rare find in the telco space in the US. The personalopportunity represents a blend of special situation pricing (post-bankruptcy), an attractive fiber-to-the-home ("FTTH") business

nd growth opportunity matched with a world-class management team.

Finally, the Outlook section provides insights into the recent rise in bond yields globally off the back of increased concerns about i flation, an update on China and a reminder of the reasons for the portfolio's underweight in the US and overweight in Europe.

We hope you enjoy the update, part of the Company's drive to improve communication with our shareholders. We also hope that you are enjoying the new fortnightly newsletter called 'The Good Value Briefing' that provides a timely update to

hareholders from Antipodes on the portfolio and markets. These should be in your email inbox and the latest version of which can also be found on the Company website.

Yours sincerely,

Jonathan Trollip

Chairman

For

3 Antipodes Global Investment Company Limited ASX: APL | Quarterly shareholder update | 30 September 2021

economic effects of the COVID-19pandemic, while recognising concerns over rising country debt. Meanwhile China (-13.3%in USD) was rarely out of the headlines with events there weighing heavily on Chinese equities. In August China announced a five-yearplan to tighten regulation for much of its economy with multiple industries facing a regulatory crackdown. Private tutoring for profit was banned; under 18's had access to computer games severely limited; large technology companies had tighter regulations and fines imposed. In addition, as part of China's focus on reducing debt levels, it allowed property company Evergrande to be on the brink of collapse. Naturally, there have been some worries of contagion.

In the Eurozone (-1.6%in USD), inflation continued to dominate headlines and drive market sentiment as supply chain bottlenecks and shortages continued to put pressure on prices across the bloc. German inflation in September hit the highest level for nearly 30 years, with levels in Spain and France also breaking records. The UK is bracing itself for possible interest rate rises at the end of this year following an announcement by the Bank of England. As anticipated by the markets, the German election outcome was less than clear cut. It is likely that the centre-leftSPD will form a three-waycollation government that includes the Green Party, resulting in a slight leftward shift in policies.

Elsewhere, the USD strengthened (DXY +1.9%) and Gold (-0.7%)was a little weaker. Brent Crude (+8.2%) continued its rally supported by OPEC+ keeping their supply control and economies re-opening.

Market commentary

The third quarter saw global equities up (+1.1% in USD, +2.8% in AUD). Increased volatility in September saw most of the gains from earlier in the quarter wiped out. During the quarter the market's focus shifted towards the impact of continued inflationary pressures, spiking oil and gas prices, the outlook for Fed tapering, and China's growth trajectory following recent events impacting its regulatory landscape,

onlyproperty sector and power prices.

Central banks globally sounded a more cautious note over the management of inflationary pressures than in previous quarters as more muted growth coupled with continued supply chain pressures and disruption drove up prices. Higher energy costs also contributed to these price rises. Moves to tighten monetary policy were sounded by the US Federal Reserve and the Bank of England, while the European Central Bank issued a mixed message around its

usetapering plans.

During this period investors exhibited a bias for Energy and Financials, with surging oil prices and with sovereign yields increasing, whilst Materials and Consumer Discretionary

nderperformed.

US equities (+0.3% in USD) reacted to news out of the Fed that interest rate rises will be likely in 2024, earlier than the

personalmarket had been pricing in. Over the quarter, US Energy and Financial sectors outperformed whilst the Communication

Services sector underperformed. Confidence increased as the $1t bipartisan infrastructure bill passed the Senate in August, which includes about $550b in new federal spending over the next five years. In a further reopening of the economy, the US announced the November removal of the travel ban for fully vaccinated passengers from over 30 countries including China, India, Brazil and most European

tates.

Asian equities (-4.6% in USD) were impacted by several events over the quarter. In Japan (+4.6% in USD) the newly

lected prime minister, regarded as an uncontroversial choice, promised more government stimulus to counter the

Figure 1: Region-sector valuation heat-map1 - Composite multiple vs world - Z-score (Sep 1996 - Sep 2021)

For

0.0

2.1

(0.8)

(2.0)

(0.8)

All

	(0.8)			0.3			0.2			1.6			(1.0)			2.6			0.3			(0.6)			(1.8)			(0.9)			(2.0)		World
																																	North
	(0.2)			1.9			0.6			2.2			(0.9)			2.5			0.0			1.2			(1.4)			0.3			(1.3)
																						America
																																	Western
	(0.2)			0.4			0.4			(0.3)			(0.8)			2.6			0.1			0.3			(1.5)			(0.9)			(1.6)
																						Europe
																																	Japan/
	0.7			(1.7)			(0.1)			(0.5)			(0.1)			2.3			(1.1)			(2.2)			(0.8)			(2.3)			(1.4)		Korea/
																																	Taiwan
	(0.0)			0.2			0.9			(0.5)			(0.3)			1.0			0.8			(1.2)			(1.7)			(1.2)			(1.6)		Emerging
																						Markets
	Energy		Materials		Hardware		Software		Pharma		Devices/		Staples		Domestic		Comm-		Property		Financials
				and					and									cyclical		unications		and Infra-
												Life
				Industrials					Internet															structure
												Sciences
						Expensive														Cheap

Source: Antipodes, FactSet

1 The Antipodes region-sector valuation heat-map provides a more granular illustration of valuation clustering across sectors and regions. Cell colouring indicates the degree to which a sector's composite multiple

relative to the world is above or below its 25-year relative trend (expressed as a Z-Score, the number of standard deviations from the mean). The warmer the colour, the greater the relative composite multiple versus history; vice versa for the cooler blues, with extremes highlighted by the boldest of colours. Composite of forward PE, EV/Sales, EV/Operating Capital Employed (including goodwill) and cyclically adjusted PE and EV/EBIT for industrials, with EV based measures replaced with PB and cyclically adjusted P/Pre-provision profits for financials.

4 Antipodes | Quarterly shareholder update | 30 September 2021