Investors Mutual Australian Share Fund

1 Monthly MovementsS&P 500+ Stoxx + 300 Accum+ + Ore+ ForthemonththeUSS&P500gained+3. 3%, whilethetechheavyNASDAQ indexsurgeda further+5. 7%. Otherglobalsharemarketsweremixed,heldbac kbyongoingthreatsoftradetariffsbyPreside ntTrump- asa resultEuropeanandmostAsianmarketsendedin negativeterritory. ThestrongerUSdollarisalsoforcingmanyemer gingmarketcentralbanks suchasIndonesia sandTurkey s- toratchetuptheirinterestratestosupportth eircurrencyagainsttheUSdollar. Thisissappinginvestorconfidenceintheecon omicgrowthprospectsofmanyoftheworld 7%againsttheUSDtoa 20monthlow,withinvestorsformingtheviewth attheRBAwillhavetowaitlongertoraiserates asthemajorbanksareforcedtomakeoutofcycle adjustmentstocoverhigherfundingcostspart lycausedbytheUSrateincrease. Inaddition, +1. 4%, hittingnewten-yearhighsastheFY18reportin gseasonhitfullgear. suchasintheBankingandUtilitiessectors. TheHealthcareandTechnologysectorsprovide dthemainhighlightsfortheIndustrialsector ofthemarketinthisearningsseason,whileman ycompaniesintheResourcesectoralsopostedg oodprofitresultsthankstomuchstrongeroila ndcoalpricesanda ,CSLralliedstronglyafterdeliveringanothe rstrongresult.

2 Thiswasdrivenbyastrongperformanceacrossi tsproductportfolioasthecompanycontinuest ogainmarketsharefromitscompetitors. CSLcontinuestoinvestheavilyinR&Dandthisr esultwasanotherexampleofthesignificantea rningsgrowththecompanyhasbeenabletodeliv erasit continuestolaunchnewproducts. MaynePharmasimilarlyhada strongmonthgaining+20%afterdeliveringa resultwhichshoweda morerationalpricingregimeintheUSgenerics market. TheTelcosectorreboundedstronglyafternews ofthe$15billionmergerbetweenTPGandVodafo neasTelstrashares(tradingexdivfollowingi ts11cpsdividend)gained+13%overthemonthin whatinvestorshopewillbecomea morerationalpricingenvironmentinthemobil eindustryoncethemergeris solidmonthgaining+1. 9%, whichcomparesfavourablywiththebenchmark sgainof+1. 4%. TheFundwashelpedbya goodmonthfrommanyofourcoreindustrialhold ingsincludingCSL,Telstra,Brambles,SparkI nfrastructure,Tabcorp, Wealsotoppedupongoodqualitycompaniessuch asOricaandAurizonaswebelievethatthesecom panies,whilecurrentlyoutoffavour, reflectattractivevalueandarewellposition edtodowelloverthenext3- 5 WiththebroaderASX300marketnowat10-yearhi ghsandwithmanyvaluationslookingfull,were maincautious.

3 WecontinuetolooktousethecashintheFundtob uygoodqualityindustrialnamesthat,inourvi ew,aretradingatreasonablevaluations,that webelievearewellpositionedtodowellinthen ext3 to5 years.^% Performance per annum. *Fund returns are calculated net of management fees, and assuming all distributions are re-invested. Investors should be aware that past performance is not indicative of future performance. Returns can be volatile, reflecting rises and falls in the value of underlying investments.**The benchmark for this Fund is the S&P/ASX 300 Accumulation Index (ASX300)1 month3 months1 Year3 years^5 Years^Since inception^Income+ + + + + + + + + + + + *+ + + + + + **+ + + + + + MutualAustralian Share FundMonthly report August 2018 Fund status:OPENFund informationAPIRIML0002 AUInception30 June 1998 Size$ BApplication(Ex)$ (Ex)$ Investment horizon4-5 yearsDistributionsSemi-annuallyManagersA nton Tagliaferro, Hugh Giddy & Daniel Moore*As per IFSA StandardLevel of Franking (%)* Global sharemarketshad another positive month, despite mixed performances across global bourses The Australian sharemarketedged up a further + , despite increased volatility due to FY18 reporting season We continue to exercise a selective approach given the fairly full valuation of many stocksActive Sector WeightsPortfolio top holdingsASXCodeCSLCSLC ommonwealth BankCBAW estpacWBCN ational Australia BankNABT elstraTLSI nsurance Australia GroupIAGC lydesdale BankCYBB ramblesBXBBHP BillitonBHPAGL EnergyAGLS ince Incept.

4 Cumulative Perf. Fund vs Benchmark*Since Incept. Risk Return Fund vs Benchmark*Disclaimer: Whiletheinformationcontainedinthisreport hasbeenpreparedwithallreasonablecare, securitiesrecommendation. Thisinformationdoesnotaccountforyourinve stmentobjectives,particularneedsorfinanc ialsituation. InvestorsMutualLimited(AFSL229988)is ,dated21 September2017orthroughIDPS productsthatincludetheseFunds. , 551 FundBenchmarkNumber of stocks53300 Portfolio Turnover*21%N/AAnnualised Tracking (STD DEV) since inception Beta (since inception) RecommendedZenithRecommendedInvestors MutualAustralian Share FundMonthly report August 2018 Source: IML*Annualised avg rolling portfolio turnover since inception, IFSA Standard*Benchmark = S&P/ASX 300 Accumulation Index, Source: IML*Benchmark = S&P/ASX 300 Accumulation Index, Source: FactsetGrowth of $1000 invested at StapleReal EstateInformation TechnologyIndustrialsEnergyTelecommunica tion ServicesHealth CareConsumer 08/2018