Announcement PDF Monthly Investment Update November 2024 10 Dec 2024 The Manager ASX Market Announcements ASX Limited Exchange Centre Level 4, 20 Bridge Street Sydney NSW 2000 Dear Shareholders, Please find attached Hearts and Minds Investments Limited’s November Investment Update. If you would like to receive these monthly investment updates via email please subscribe here. We are also excited to introduce our new interactive investor hub. This platform offers the latest company announcements and provides an opportunity for shareholders to ask questions, share comments, and offer feedback. We invite you to sign up and join the conversation. For and on behalf of the board, Eryl Baron Company Secretary Hearts and Minds Investments Limited ACN 628 753 220 A: 12.04A Chifley Tower, 2 Chifley Square, Sydney NSW 2000 | W: HM1.com.au | E: ir@hm1.com.au | P: 1300 737 760 or +61 2 9290 9600 Monthly Investment Update November 2024 Investment Objective Provide a concentrated portfolio of long-only positions in 25-35 global securities based on the highest conviction ideas from respected fund managers. The Company forgoes any investment fees and instead donates to leading Australian medical research organisations. Pre-Tax NTA $3.62 Post-Tax NTA $3.40 Share Price $3.06 Portfolio Commentary As expected, US election results were the primary driver of market performance in November. Donald Trump’s presidential victory and the fact that the Republican party secured a majority in both chambers of Congress increased expectations that the next government’s policies will increase American exceptionalism in the economy and markets. US equity markets were boosted by the prospect of further tax cuts, expansionary fiscal policy, and the implementation of a more nationalist trade policy. Domestically exposed US small caps were seen as the main beneficiaries and were up strongly over the month. The healthcare sector underperformed due to concerns about the new administration’s less friendly stance towards the pharma industry. The Q3 earnings season was also moderately positive for US equities, with earnings per share growth ahead of expectations. Global equities registered a 5% gain in AUD terms for the month. Outside US markets, the election result was met with some caution. Emerging markets underperformed developed markets by 9%. Chinese equities declined due to concerns about a future trade conflict as well as an emerging consensus that the previously announced government support measures are not yet sufficient to overcome the domestic real estate and confidence crisis. The US dollar rally also had a small impact on the relative performance of markets in November and again assisted the HM1 portfolio. The perception that Trump’s fiscal plans could be inflationary and potentially cut short the Federal Reserve’s rate-cutting cycle led to the strong consecutive monthly gains for the dollar. (ASX: HM1) Investment Performance p.a. (Since inception 14 Nov 2018) Latest Dividend (Half-yearly) Fully Franked Dividend Yield1 11.9% 7.5cps 4.9% Cash Weighting 3% Profits Reserve 58cps (At 30 June 2024) Available Franking Credits 2 (At 30 June 2024) 42cps Cumulative Medical Research Funding $70m The HM1 portfolio was up 8% for the month outperforming major markets due to a strong performance on some of our key holdings, notably, Zillow, Block, Telix, Brookfield and Corpay. The continued strong investment performance has seen HM1 pre-tax investment returns of 36% over the last 12 months. HM1’s annualised pre-tax investment return since inception in November 2018 is 11.9% per annum. HM1 paid an increased half-yearly fully franked dividend of 7.5 cents per share on 17 October 2024 bringing total dividends paid since inception of 60.5 cents per share. As promised in last month’s report, here is a recap of the Sohn Hearts & Minds Conference, held in Adelaide on 15 November 2024, along with the stocks pitched during the event. It was a fascinating mix of presentations. A big thank you to Gary Weiss, David Wright and Michael Walsh for their invaluable contributions to our Conference Fund Manager Selection Committee. We were able to secure an interesting and diverse group of bright minds from around the world to pitch a fascinating and compelling group of stocks. These stocks are now all in the portfolio and it will be exciting to see how they perform over the coming year. 1Annualised fully franked dividend of 15.0cps divided by share price on 30 November 2024. 2Represents the level of future dividends (expressed as cents per share) that can be fully franked. All figures as at 30 November 2024 unless otherwise stated. Fund inception 14 Nov 2018. This communication has been prepared by Hearts and Minds Investments Limited (ABN 61 628 753 220). In preparing this document the investment objectives, financial situation or particular needs of an individual have not been considered. You should not rely on the opinions, advice, recommendations and other information contained in this publication alone. This publication has been prepared to provide you with general information only. It is not intended to take the place of professional advice and you should not take action on specific issues in reliance on this information. Past performance is not a reliable indicator of future performance. Monthly Investment Update November 2024 HM1 Investment Performance Investment Performance 1 month 6 months 1 year 3 years per annum Investment Performance 8.1% 20.9% 36.8% 1.9% Since Inception per annum 11.9% MSCI World Index (AUD) 5.2% 12.6% 27.6% 10.2% 12.9% HM1 Investment Performance is calculated after expenses and before taxes. The comparator is the MSCI World price index in AUD . Source: Citco Fund S erv ices and www.msci.com. Inception 14 Nov 2018. Dividends Dividend Payments Dividends – fully franked FY21 FY22 FY24 FY24 FY25 (Half Yearly) 12.0cps 13.5cps 13.5cps 14.0cps 7.5cps Top 10 Core Portfolio Holdings Represents 51% of total portfolio holdings (in alphabetical order) Conference Portfolio Holdings Represents 26% of total portfolio holdings (in alphabetical order) All figures as at 30 November 2024 unless otherwise stated. Fund inception 14 Nov 2018. This communication has been prepared by Hearts and Minds Investments Limited (ABN 61 628 753 220). In preparing this document the investment objectives, financial situation or particular needs of an individual have not been considered. You should not rely on the opinions, advice, recommendations and other information contained in this publication alone. This publication has been prepared to provide you with general information only. It is not intended to take the place of professional advice and you should not take action on specific issues in reliance on this information. Past performance is not a reliable indicator of future performance. Monthly Investment Update November 2024 News from the HM1 Network In the latest episode of the Hearts & Minds Podcast, we sit down with Professor Jane Butler to discuss her groundbreaking research into spinal cord injuries. Jane shares her inspiring journey, from aspiring pilot to Senior Principal Research Scientist at NeuRA, and her passion for understanding how the brain and nervous system control movement and vital functions like breathing. You can listen to the episode here. As promised in last month’s report, here is a recap of the Sohn Hearts & Minds Conference that was held in Adelaide on 15 November 2024, including all the stocks pitched. The event featured a captivating mix of presentations. We brought together an interesting and diverse group of brilliant minds from around the world to pitch a compelling selection of stocks. These stocks are now part of the portfolio, and it will be exciting to watch how they perform over the coming year. Ahead of the Sohn Hearts & Minds Conference, HM1 Chair Chris Cuffe and Chief Investment Officer Charlie Lanchester shared with The Australian their target of growing the fund to over $1.5 billion within the next five years. An extension of the original Sohn Hearts & Minds initiative, HM1 continues to make a profound impact—this year, it will contribute $12 million to medical research charities, alongside the funds raised through the conference. You can read the full article here. At the recent Sohn Hearts & Minds Conference, Professor Jason Kovacic, Director and CEO of the Victor Chang Cardiac Research interviewed Professor Alex Brown who leads the Indigenous Genomics programs at The Kids Research Institute Australia and The Australian National University and is head of a new NSW Government funded Precision Medicine for Public Health project. The $1.4 million project will fill a critical gap in precision medicine by engaging and empowering Aboriginal communities on a large scale. Read a summary of the interview here. Among the 11 picks for 2025, there were no Artificial Intelligence, chipmakers or data centres in sight. While these trends were easily the hottest thing in international sharemarkets, our Conference Fund Managers for the year ahead are betting on a different assortment of companies to capture investor attention next year. While there are a few mega-caps on the list, there are also stocks many would never have heard of. You can read insights from The Sydney Morning Herald here. Disclaimer: This communication has been prepared by Hearts and Minds Investments Limited (ABN 61 628 753 220) and may contain general information relating to HM1 securities. The general information should not be considered financial advice. HM1 is not licensed to provide financial product advice. The information does not consider the investment objectives, financial situation, or particular needs of any individual. The information is current as at the date of preparation and is subject to change. HM1 does not guarantee repayment of capital or any rate of return on HM1 securities. An investment may achieve a lower-than-expected return and investors risk losing some, or all, of their principal investment. Past performance is not a reliable indicator of future performance. This document may not be reproduced or copies circulated without prior authority from Hearts and Minds Investments Limited. Monthly Investment Update November 2024 Core Fund Managers Conference Fund Managers Designated Beneficiaries Pro-Bono Service Providers Disclaimer: This communication has been prepared by Hearts and Minds Investments Limited (ABN 61 628 753 220) and may contain general information relating to HM1 securities. The general information should not be considered financial advice. HM1 is not licensed to provide financial product advice. The information does not consider the investment objectives, financial situation, or particular needs of any individual. The information is current as at the date of preparation and is subject to change. HM1 does not guarantee repayment of capital or any rate of return on HM1 securities. An investment may achieve a lower-than-expected return and investors risk losing some, or all, of their principal investment. Past performance is not a reliable indicator of future performance. This document may not be reproduced or copies circulated without prior authority from Hearts and Minds Investments Limited.