Bentley Capital : CBG Fund June 2016 Quarterly Report

MARKET ANNOUNCEMENT CBG Fund June 2016 Quarterly Report

Friday, 29 July 2016

The June 2016 Quarterly Report from CBG Asset Management Limited (CBG) on the performance of its CBG Australian Equities Fund (Wholesale) (CBG Fund) is attached.

As at 30 June 2016, Bentley had ~$4.85 million (31.2% of its net assets) invested in the CBG Fund (31 March 2016: ~$6.32 million (38.3%).

About the CBG Fund 1

The CBG Fund is a wholesale fund not open to retail investors. The objective of the fund is to outperform the S&P/ASX 200 Accumulation Index over the medium term. The Investment Manager is "style neutral" and invests in growth stocks, value stocks, stocks with maintainable dividend yields and special situations.

CBG Fund details as at 30 June 2016:

• The equity weighting was 93.65% (31 March 2016: 92.8%);

• 85.7% of the equity portfolio is invested in companies contained within the S&P/ASX 200 Index (31 March 2016: 85.9%) with the balance of 14.3% invested in companies outside of the S&P/ASX 200 Index (31 March 2016: 14.1%); and

• The equity portfolio contained 45 holdings (31 March: 46 holdings).

CBG Australian Equities Fund - Performance

Returns To:	1mth	3mths	6mths	1yr	2yrs	3yrs	Since Inception
30 June 2016	(%)	(%)	(%)	(%)	(% p.a.)	(% p.a.)	(% p.a.)
CBG Fund	-4.2%	-0.2%	-7.4%	2.0%	3.2%	9.2%	9.3%
ASX / S&P 200 Accumulation Index	-2.5%	3.9%	1.1%	0.6%	3.1%	7.7%	7.8%

FOR FURTHER INFORMATION:

Farooq Khan Victor Ho

Chairman Company Secretary

T | [phone] T | [phone]

E | [e-mail] E | [e-mail]

1 Based on information provided by CBG Asset Management Limited.

www.bel.com.au

BENTLEY CAPITAL LIMITED A.B.N. 87 008 108218

Level 2, 23 Ventnor Avenue, West Perth, Western Australia 6005

ASX Code: BEL T | [phone] F | [phone] E | [e-mail]

The CBG Australian Equities Fund (Wholesale)

June quarter 2016

28 July 2016

The Directors of Bentley Capital Limited Level 2, 23 Ventnor Avenue, West Perth Western Australia 6005

In the June quarter of 2016, the CBG Australian Equities Fund (Wholesale) returned -0.2%, compared to the S&P/ASX 200 Accumulation Index return of 3.9%.

For the twelve months to 30 June 2016, the fund returned 2.0%, compared to the benchmark return of 0.6%. Over the three year period to 30 June 2016, the fund returned 9.2% per annum, outperforming the benchmark return of 7.7% per annum.

International equity markets largely generated positive returns in the June quarter, despite volatility associated with the Brexit vote. Australian equities outperformed, assisted by a strong performance for the resources sector and a 25bp reduction in the official cash rate to 1.75% in May. The fund remains underweight the resources sector given a high degree of earnings uncertainty and consequently the fund did not participate in the rally for this sector. The reduction in the cash rate followed a negative -0.2% inflation figure for the March quarter, which brought year rolling inflation to 1.3%, well below the RBA's 2%-3% target range.

Across the Australian equity market industry sectors in the June quarter, resources (+11.5%), AREITs (+9.3%) and consumer discretionary (+4.4%) led the gains, while insurance (-3.6%), staples (-3.6%) and banks (+0.9%) underperformed.

Returns across international equity markets were: S&P 500 (+1.9%); Shanghai Composite (-2.5%); Nikkei 225 (-7.1%) as the yen rallied strongly post the Brexit vote; German DAX (+-2.9%); FTSE 100 (+5.3%) given GBP depreciation with 70-80% of revenues generated offshore; NZX 50 (+1.6%).

Net performance history (%)

Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec	Year total
2016	-6.0	-4.7	3.5	0.1	4.1	-4.2	-7.4%
2015	3.7	6.6	-0.3	-2.4	0.2	-6.8	5.4	-5.7	-0.3	5.0	3.4	2.5	10.4%
2014	-2.3	5.8	1.8	0.8	0.2	-1.5	3.6	1.0	-5.1	3.9	-1.2	2.2	9.3%
2013	4.9	5.6	-1.3	5.6	-3.5	-2.6	5.6	1.9	3.7	4.2	-1.1	1.3	26.6%
2012	6.2	3.5	1.6	1.2	-8.6	0.5	3.5	1.6	1.0	4.3	0.8	3.8	20.1%
2011	0.6	3.1	1.3	-1.2	-2.5	-3.7	-0.9	-3.7	-11.2	7.8	-3.6	-3.6	-17.3%
2010	-5.7	1.6	7.6	-0.4	-11.4	-3.2	7.5	-1.3	7.4	1.9	-1.0	5.2	6.4%
2009	-3.1	-0.7	4.9	2.8	2.2	2.9	7.3	6.7	7.0	0.4	1.7	4.2	42.3%
2008	-12.3	0.2	-5.4	4.1	0.8	-7.8	-5.7	1.7	-16.3	-17.7	-5.0	2.7	-48.2%
2007	3.6	0.2	3.9	4.5	2.7	2.3	-0.2	-3.2	8.7	5.0	-3.7	-3.6	21.4%
2006	1.2	3.2	3.9	4.4	-2.9	0.0	-0.3	2.9	4.8	6.1	3.3	4.6	35.5%
2005	0.8	0.7	-0.9	-3.8	2.5	1.9	5.5	2.1	4.7	-3.4	2.2	2.2	15.1%
2004	0.9	2.3	2.7	-2.8	0.6	2.6	2.1	2.3	3.9	6.3	5.4	1.5	31.2%
2003	-2.2	-6.9	0.4	4.6	-1.8	4.0	7.5	11.2	6.7	6.9	-1.4	5.4	38.3%
2002	0.7	1.2	-2.2	-4.0	2.6	-4.4	1.1	-0.6	-0.9	-6.5%

CBG Asset Management Limited ABN 12 098 327 809 AFS Licence No. 246790

Level 3, 8-10 Loftus Street, Sydney NSW 2000

Tel: [phone] Web: www.cbgam.com.au Email: [e-mail]

1

The CBG Australian Equities Fund (Wholesale)

Performance relative to the benchmark (net of fees)

Fund (%)	Index (%)	Outperformance (%)
3 months	-0.2	3.9	-4.1
1 year	2.0	0.6	+1.4
3 years annualised	9.2	7.7	+1.5
5 years annualised	7.6	7.4	+0.2
Since inception annualised	9.3	7.8	+1.2
Since inception total return	253.3	189.7	+63.6

Inception date: 9 April 2002

The benchmark is the S&P/ASX 200 Accumulation Index.

Fund commentary

Stocks which contributed positively to performance in the June quarter included Class (CL1), which returned 42.1%. CL1 is the dominant provider of cloud based SMSF administration software in Australia. While only c25% of total SMSF administration is now occurring on cloud based platforms, this service is growing rapidly at the expense of desktop solutions providing a strong growth platform for the business. CL1 also recently launched "Class Portfolio" which is tailored for accountants working on family trusts.

CL1 believes this product has strong cross selling opportunities and better ability to increase pricing than Class Super.

Eureka Group (EGH) also contributed positively, returning 27.4%. EGH is a provider of affordable rental accommodation to retirees. During the quarter, the company announced the acquisition of 4 further sites, in addition to a partnership with not-for-profit care provider, Blue Care, which will complement EGH's existing product offering. By offering Blue Care's services to residents, EGH is likely to retain residents for longer as their care needs increase with age.

Stocks which detracted from performance in the June quarter included Henderson Group (HGG), which returned -20.1% as the Brexit vote reduced confidence in UK and European equity market returns and increased the likelihood of near term outflows. Henderson is a globally diversified funds management business, although European equities have been a key source of recent inflows. The business also has a small UK property funds management business, accounting for 4.5% of assets under management.

BT Investment Management (BTT) returned -16.9% in the quarter for similar reasons to Henderson Group. UK equities are a key competency of BTT's J O Hambro Capital Management (Hambros) subsidiary, accounting for 50% of the assets under management of Hambros. The fund had reduced its position in BTT over the past 12 months and reduced it further post the Brexit vote.

CBG Asset Management Limited ABN 12 098 327 809 AFS Licence No. 246790

Level 3, 8-10 Loftus Street, Sydney NSW 2000

Tel: [phone] Web: www.cbgam.com.au Email: [e-mail]

2

The CBG Australian Equities Fund (Wholesale)

Top 15 Holdings as at 30 June 2016

ASX Code	Stock Name	Fund weight	ASX200 weight
1	CBA	COMMONWEALTH BANK OF AUSTRALIA	10.8%	9.3%
2	WBC	WESTPAC BANKING CORPORATION	7.9%	7.1%
3	TCL	TRANSURBAN GROUP	5.9%	1.8%
4	MQA	MACQUARIE ATLAS ROADS GROUP	5.4%	0.2%
5	ANZ	ANZ BANKING GROUP LIMITED	4.7%	5.1%
6	HGG	HENDERSON GROUP	3.9%	0.2%
7	MFG	MAGELLAN FINANCIAL GROUP	3.8%	0.2%
8	SYD	SYDNEY AIRPORT	3.7%	1.1%
9	AIA	AUCKLAND INTERNATIONAL AIRPORT LTD	3.5%	0.0%
10	NAB	NATIONAL AUSTRALIA BANK LIMITED	3.5%	4.9%
11	DUE	DUET GROUP	3.1%	0.4%
12	APA	APA GROUP	3.0%	0.8%
13	LLC	LENDLEASE GROUP	2.9%	0.5%
14	ACX	ACONEX LIMITED	2.5%	0.1%
15	EGH	EUREKA GROUP HOLDINGS LIMITED	2.4%	0.0%
Total			67.0%	31.7%

CBG Asset Management Limited ABN 12 098 327 809 AFS Licence No. 246790

Level 3, 8-10 Loftus Street, Sydney NSW 2000

Tel: [phone] Web: www.cbgam.com.au Email: [e-mail]

3