Full Report MLC Wholesale Inflation Plus - Conservative Portfolio

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1 Fund Overview About the Fund Aims to deliver a return of 3.5% pa above inflation (before fees and tax) over 3 year periods by limiting the risk of negative returns over this time frame. This careful risk management approach means there may be times when the portfolio doesnt achieve its return objective. In most circumstances the portfolio is expected to provide a positive return over 3 year periods, although there will sometimes be negative returns over shorter periods. For additional information on the portfolio please view our page for this portfolio Important Announcements 16 Jan 2014 Performance fee for Low Correlation strategy Key Information APIR Code MLC0921AU Status Onsale Product Size Unavailable Commencement Date 1 Oct 2013 The performance fee is included in the investment fee below. The actual performance fee charged in future periods may vary from period to period. Further information on the Low Correlation strategy is available on mlc.com.au/lcs/ Fund Breakdown By Asset Class as at 30 Jun 2015 The information displayed reflects the actual asset allocation based on the holdings within the fund at the effective date. Enhanced Cash 30.2% Australian Fixed Interest 25.7% Multi-Asset Class Real Return Strategies 14.6% Defensive Global Shares - Unhedged 9.1% Low Correlation Strategy 5.9% Global Bank Loans 5.1% Australian Inflation-Linked Bonds 5.0% Emerging Market Shares (unhedged) 2.4% Cash 1.1% Global Shares (hedged) 0.8% Other 0.2% Asset Class Target Actual Investment Amount Enhanced Cash 31.0% 30.2% $3,022 Australian Fixed Interest 26.0% 25.7% $2,574 Multi-Asset Class Real Return Strategies 13.5% 14.6% $1,457 Defensive Global Shares - Unhedged 10.0% 9.1% $908 Low Correlation Strategy 6.0% 5.9% $588 Global Bank Loans 5.0% 5.1% $505 Australian Inflation-Linked Bonds 5.0% 5.0% $498 Emerging Market Shares (unhedged) 2.5% 2.4% $242 Cash 0.0% 1.1% $108 Global Shares (hedged) 1.0% 0.8% $81 Other 0.0% 0.2% $18 Total 100.0% 100.0% $10,000 Page 1 of 13

2 By Manager as at 30 Jun 2015 Asset Class Manager Percentage Investment Amount Australian Fixed Interest Antares 25.7% $2,574 Australian Inflation-Linked Bonds Antares 5.0% $498 Cash Cash 1.1% $108 Defensive Global Shares - Unhedged International Value Advisors 9.1% $908 Emerging Market Shares (unhedged) Capital International 2.4% $242 Enhanced Cash Antares 30.2% $3,022 Global Bank Loans Shenkman Capital 5.1% $505 Global Shares (hedged) MLC Investment Management 0.8% $81 Low Correlation Strategy MLC Alternative Strategies 5.9% $588 Multi-Asset Class Real Return Strategies Pyrford 4.4% $438 Ruffer 10.2% $1,019 Other Other 0.2% $18 Total 100.0% $10,000 By Industry as at 30 Jun 2015 Other 88.9% Telecommunication Services 0.6% Financials 2.9% Health Care 0.6% Information Technology 1.7% Energy 0.5% Consumer Discretionary 1.5% Information Technology 0.3% Industrials 1.4% Real Estate Investment Trusts (REITs) 0.1% Materials 0.8% Utilities 0.1% Consumer Staples 0.7% Industry Percentage Investment Amount Other 88.9% $8,891 Financials 2.9% $288 Information Technology 1.7% $175 Consumer Discretionary 1.5% $146 Industrials 1.4% $137 Materials 0.8% $77 Consumer Staples 0.7% $73 Telecommunication Services 0.6% $58 Health Care 0.6% $56 Energy 0.5% $46 Information Technology 0.3% $30 Real Estate Investment Trusts (REITs) 0.1% $12 Utilities 0.1% $12 Total 100.0% $10,000 Page 2 of 13

3 By Country as at 30 Jun 2015 Australasia 68.1% North America 16.7% United Kingdom 5.1% Developed Europe (ex U.K.) 4.4% Developed Asia 3.6% Emerging Asia 1.2% Latin America and the Caribbean 0.5% Africa/Middle East 0.2% Emerging Europe 0.1% Country Percentage Investment Amount Australasia 68.1% $6,815 North America 16.7% $1,673 United Kingdom 5.1% $506 Developed Europe (ex U.K.) 4.4% $440 Developed Asia 3.6% $360 Emerging Asia 1.2% $118 Latin America and the Caribbean 0.5% $51 Africa/Middle East 0.2% $24 Emerging Europe 0.1% $14 Total 100.0% $10,000 Stock Holdings Top Stocks for Fund as at 31 May 2015 This information is currently unavailable. Top Stocks by Asset Class as at 31 May 2015 This information is currently unavailable. Performance Historical Performance Absolute Fund Returns as at 30 Jun 2015 Returns for periods one year or greater are calculated on an annualised basis. All returns are calculated using end of month redemption prices assuming all distributions are reinvested and are net of management fees which may include administration fees, issuer fees and investment fees and prior to any individual tax considerations, and do not allow for initial entry fees. The returns outlined below represent historical performance only and is not an indication of future performance. The value of an investment may rise or fall with changes in the market. Returns are calculated in accordance with FSC Standard No 6. 3 month 6 month 1 Year 3 Years 5 Years 10 Years Since Inception 1 Oct 2013 Fund Performance 0.2% 3.6% 8.5% N/A N/A N/A 7.1% Growth -3.8% -0.5% 3.5% N/A N/A N/A 3.0% Distribution 4.0% 4.1% 5.0% N/A N/A N/A 4.1% Page 3 of 13

4 Annual Distributions Period CPU Franking Level Assessable Income Non-Assessable Income 2014/ % / % Commentaries Fund Commentary As at 30 June 2015 The portfolio produced a return of 0.3% in the quarter and 9.2% in the year to 30 June 2015 (before fees and tax). Page 4 of 13

5 The portfolios objective is to deliver a return of 3.5% pa above inflation (before fees and tax) over 3 year periods by limiting the risk of negative returns over this time frame. The portfolio has not yet been available for 3 years; however, in the past year the portfolio has achieved a return of 8.1% above inflation (before fees and tax). Contributors to performance Key contributors to performance for the quarter are in the following table. Returns are before fees and tax. For the quarter The portfolios allocation to cash performed positively with a return of 0.7%. The manager, Antares, outperformed the market benchmark. The portfolios Australian non-government bonds also performed positively, generating a return of 0.7% during the quarter. The manager, Antares, outperformed the market benchmark. Global bank loans were another positive performer for the quarter, generating a solid return of 1.9%. The return was driven by strong demand from investors, low volumes of bonds maturing in the next 2 to 3 years and falling yields for bonds with BB credit ratings. For the year The defensive global shares delivered a very strong return of 22.3% for the year. Defensive global share manager IVA generated exemplary results considering their increasingly defensive positioning. The multi-asset real return strategy delivered a strong return of 13.6% buoyed by benchmark unconstrained stock selection and flexible asset allocation. The cash allocation within the portfolio was increased over the year and performed positively, generating a return of 3.0%. The manager, Antares, outperformed the market benchmark. positioning Changes in asset allocation this quarter These changes increased the portfolios defensive positioning before the increase in volatility in share and bond markets towards the end of the quarter: reduced the allocation to Australian shares by 3% and Australian inflation-linked bonds by 7%, and increased the allocation to defensive global shares by 2%, multi-asset real return strategy by 1.5%, emerging markets strategy by 0.5%, low correlation strategy by 1%, cash by 1.5%, Australian non-government bonds by 0.5% and global bank loans by 3%. The rationale for these changes is outlined below. Potential risk or opportunity Risk of a market correction Risk of a rise in interest rates Change in the portfolio and reason The portfolio is managed with a strong focus on capital preservation. In todays highly uncertain investment environment risk control is critically important. Therefore we are placing a greater emphasis on risk control as opposed to return generation. High share market returns in the March quarter increased market risk looking forward. Therefore early in the quarter we made further reductions to the Australian shares allocation and increased the allocation to defensive global shares and the low correlation strategy. This reallocation significantly reduced the portfolios exposure to risk prior to the adverse market environment in June which was made worse by the uncertainty about the ability of Greece to meet its loan obligations and remaining in the eurozone together with Chinas sharp share market reversal. If this volatility persists, the US Federal Reserve could delay the commencement of interest rate rises and we may see further monetary stimulus in the eurozone and Japan to restore market confidence. This has the potential to result in resumption of the strong return environment. However we continue to be concerned about stretched share market valuations and the continuing high levels of debt in the global economy. There are particular vulnerabilities for Australia flowing from slower and less investment intensive growth in China. Therefore we continue to maintain the portfolios defensive positioning. While we value the inflation protection of inflation-linked bonds, the decline in yields to extremely low levels in the first quarter of 2015 increased their risk so we reduced allocations. Scenarios in which there is clear risk include Early re-leveraging and Sovereign yield re-rating. We have halved the allocation to Australian inflation-linked bonds and redirected the money to cash, Australian non-government bonds, which has a short term to maturity, and global bank loans, which are largely floating rate securities. Key asset allocation positions that are unchanged this quarter Page 5 of 13

6 Asset class or strategy Role in the portfolio Performance implications Foreign currency exposure Defensive global shares, risk management, low correlation and multi-asset real return strategies No direct allocation to long duration traditional bonds Foreign currency exposure has provided an opportunity to limit risk in adverse environments, permitting the portfolio to hold a higher allocation to shares than would otherwise be the case. This risk reduction impact comes from the tendency of global share markets and the AUD to move in the same direction. By having an exposure to foreign currencies (for example, by not hedging some of our overseas assets to the AUD) we can help insulate our portfolios against some losses when share markets fall. Foreign currency exposure is therefore an important diversifier of risk for the portfolio. We expect it will help generate more robust returns in a number of difficult potential scenarios for which there are currently few other opportunities for diversification. While the significant fall in the AUD was positive for the portfolios returns, it does weaken the potential future diversification benefit of foreign currency exposure. We have therefore partially hedged the risk of renewed AUD strength via options in our risk management strategy. This position reduces the risk of significant negative returns if the AUD rises. Our significant foreign currency exposure is intended to reduce the portfolios vulnerability to negative returns in a number of adverse scenarios, including an Australian stress scenario. We also consider scenarios in which the AUD rises, including Extended quantitative easing and Sovereign yield re-rating. However, in many scenarios we expect the AUD to fall further, particularly if share prices fall sharply. For the last few years share market returns, supported by unusually low interest rates, have been strong and have tended to run ahead of actual company earnings. In these circumstances, we need to keep some powder dry by investing more defensively. This requires that we limit exposure to significant negative returns and wait for more favourable conditions in which to seek higher returns. Investing in these strategies rather than just share markets helps protect the portfolio in weak global growth scenarios such as Developed market austerity, Recession, Stagnation and an Australian stress scenario. The portfolio has limited vulnerability to changes in bond interest rates. This is reflected in the following positions: no direct exposure to long duration traditional bonds exposure to short duration Australian non-government bonds, global bank loans (largely floating rate bonds) and cash. The AUD rose slightly in the last three months. However, over the past year our foreign currency exposure worked well, helping offset volatile share market returns. These positions may mean the portfolios returns will be lower if share markets produce strong returns. However, we consider this positioning is appropriate given the current risk level and the increased protection it provides if adverse scenarios occur. By avoiding the risks of traditional bonds, we have been able to increase the portfolios exposure to other risks, which have delivered better returns. Australian inflation-linked bonds Government bonds, a traditional source of diversification, still have very low yields. They offer limited potential for both real returns and diversification. At their present valuations, these arent attractive investments for the portfolio. We seek to deliver returns higher than the rate of inflation, which is a moving target. While the forces of deflation are currently strong, we are concerned about an eventual rise in inflation. Unlike traditional bonds, inflation-linked bond returns move with changes in inflation and can therefore help provide protection against unexpected rises in inflation in scenarios such as Stagflation and Inflation shock. However, inflation-linked bonds (like all bonds) are still exposed to the risk that the interest rate on the bond may rise. In May we halved the portfolios exposure to Australian inflation-linked bonds because yields had declined to extremely low levels resulting in an increase in their risk. Inflation linked bonds were weak in the last quarter, particularly in June after we halved the portfolios exposure. Note: - Please refer to the Market commentary for an overview of what happened in domestic and global markets over the quarter. - Fund commentary for this fund will be updated two to three weeks after the end of the month Market Commentary As at 30 June 2015 Returns to 30 June 2015* Asset class 3 mth (%) 1yr (%) 3yr (%) 5yr (%) Australian Shares Global shares (hedged) Global shares (unhedged) Page 6 of 13

7 Emerging markets Australian property securities Global property securities Australian bonds Global bonds (hedged) Global high yield bonds (hedged) Inflation-linked bonds Cash Sources: MLC Investment Management. *Annualised returns except for 3 month. Benchmark data includes S&P ASX 200, ACWI $A Hedged - Global Shares Strategy, MSCI AC World Index in $A (Gross), MSCI Emerging Markets in $A (Gross), S&P/ASX 300 A-REIT, FTSE EPRA/NAREIT Developed Index $A Hedged (Gross), Bloomberg AusBond Composite 0+ yrs, Barclays Global Aggregate ($A Hedged) (Gross), WR Huff - BCGA US Corp HY BB/B ($A Hedged), BLOOMBERG AusBond Inflation Govt 0+ yrs, BLOOMBERG AusBond Bank Bill. The June 2015 quarter was a difficult period for investors, as market returns were broadly negative. Australian shares, global shares (unhedged), listed property and some categories of bonds all lost ground. However, one year returns remain in positive territory, especially global shares (hedged and unhedged) and Australian listed property. Market weakness was most pronounced in June as concerns intensified that Greece could default on its end of month loan repayment to the International Monetary Fund and eventually leave the eurozone. Those concerns proved to be well placed as Greece did fail to repay the loan. Uncertainty was compounded by the Greek governments unexpected decision to hold a referendum early in July regarding the terms of a proposed bailout package. The volatility caused by Greece occurred against a backdrop of modest expansion by the global economy. A rebound in US growth after the weather impacted the first quarter, strong growth in the UK, and signs of improving economic conditions in some of the major European economies, as well as in Japan where the unemployment rate reached a 20 year low, were offset by lower than expected growth in China. Policy stimulus remains in place in many parts of the global economy to provide necessary support. As in Australia, China has had to reduce interest rates and implement bank lending reforms. Substantial quantitative easing (QE) programs are already in place in Europe and Japan. In contrast, in the US the negative return in the quarter for some categories of bonds reflects market expectations of a rate hike by the US Federal Reserve, possibly as early as September Individual share market performances diverged in local currency terms. European markets were predictably among the weakest due to the re-emergence of Greece as a source of uncertainty, with Germany and France falling by 8.5% and 4.8% respectively. The US S&P500 Index was down by 0.2%. Japans ambitious QE program and investors expectation the weaker yen will help the economy continues to support the Nikkei Index, which was up 5.4% in the quarter. Aggressive monetary policy easing in China in response to weaker than expected economic data contributed to the Shanghai Index rising by 14.1%. However, at the time of writing early in July, the Shanghai market had fallen 13.8% since 30 June Australias share market also lost ground over the quarter with the S&P/ASX200 Accumulation Index falling 6.5%. The weakest sectors were Consumer Staples, due to profit warnings by Woolworths and Metcash, and the banks as investors grew increasingly cautious about potential increases in capital requirements, slower prospective earnings and dividend growth, and high valuations. Another cut in interest rates by the Reserve Bank of Australia in early May helped improve market sentiment temporarily, but it was insufficient to offset the concerns for both the slower growth in China and uncertainty over Greece. Page 7 of 13

8 MLC Investment Process MLC Investment Philosophy These four beliefs are the foundation of our business: We can manage uncertainty about the future by considering many possible market environments. We are risk managers, not risk avoiders. We are responsible for all aspects of our portfolios. We will never be complacent. We believe that by applying this philosophy, we can deliver more reliable returns to our investors. Our approach to investing - the way we design, construct, implement and manage our portfolios - is built around this philosophy. Design Our portfolios focus on what affects investor outcomes the most - asset allocation. Each asset class has its own risk and return characteristics. We allocate money between asset classes based on the following beliefs: Risk cant be avoided, but can be managed. Key to MLCs investment approach is our unique Investment Futures Framework. It guides our forward-looking approach to managing risk. Read more about the Framework. In an unpredictable and constantly changing world, we use the Framework to help continually identify the very wide range of potential market scenarios both good and bad that could occur. The Framework also helps us analyse how these scenarios could affect the risks and returns of the asset classes in the portfolios. Our investment experts use the insights from this analysis to work out the combination of asset classes that will best achieve a portfolios objective. This helps us prepare our portfolios for future market ups and downs. Risks and returns vary through time. Our Investment Futures Framework shows us how the potential risks and returns of each asset class could change over the next three to seven years. With this information we can adjust our portfolios asset allocations to reduce the risk or improve the return potential of the portfolios. Diversification matters Asset classes perform differently in different market conditions. Investing in many asset classes helps us smooth out the overall portfolio returns, as we can offset the ups and downs of each asset class. Page 8 of 13

9 Managing the Managers - Manager Selection Finding the best businesses to invest in around the world is a specialist skill. We look for investment managers who can demonstrate a sustainable competitive edge. We also ask our managers to build portfolios that reflect their best ideas. Our approach to identifying exceptional investment managers involves: maintaining a clear-cut view on what constitutes an exceptional investment manager e.g. a logical and robust investment process applied through different market environments; the right people and experience to apply their process. meeting regularly with investment managers and individuals in the firm to get a better understanding of how the investment manager operates, and analysing the investment managers' portfolios to ensure they are investing the way they say they are. Specialist managers Our process typically results in the appointment of managers that specialise in a particular investment style or asset class, rather than managers who favour an overall approach. The theory behind this is that it's easier to be good at one discipline than a number of them. Manager access Through MLC, our investors can access investment managers who typically only deal with institutional investors. This gives more access to a wider selection of the best managers in the world, not just those in Australia. We look at past performance, we dont rely on it When selecting managers, we look beyond brand and past performance. As markets move in cycles, certain market conditions will suit different types of managers at different times. This means even the best managers will experience low performance if market conditions dont suit their approach, and isn't a reason to terminate a manager. Managing the Managers - Customised Mandates We typically appoint investment managers who specialise in particular asset classes and investment styles, and assign each one of them a specific mandate. This approach encourages them to focus on their areas of expertise and build a portfolio of only their best or highest conviction ideas - companies the managers believe will provide better returns than other companies and the market overall. The benefits include: Higher expected long-term after-tax returns from tailored high conviction portfolios Insulation from transactions initiated by other investors within a larger investment pool, and Transaction costs and capital gains tax are reduced both day-to-day and when manager changes occur. Tax aware investing Australia has different tax laws to the rest of the world. We select and assign mandates to investment managers we believe can generate strong-after tax returns over the long term. Unconstrained approach We give our global managers the freedom to find the best investments anywhere in the world. This truly global perspective ensures we make the most of our managers expertise for our investors. Page 9 of 13

10 Managing the Managers - Manager Blending Why blend managers? We blend managers with different, but complementary, insights into investment markets. This diversification gives managers the freedom to run with their convictions without having much impact on the overall risk of the portfolio. And, by selecting only the best managers, who will each peak at different times, long-term returns shouldnt be diluted by combining several different managers. Determining each managers allocation Each asset class strategy we design has a desired risk and return profile. This is used as the basis for determining the appropriate combination of managers to achieve that profile. Determining the allocation to each manager starts with our judgement based on intimate knowledge of each managers investment approach. Data analysis is then used to test the proposed combinations. Analysing manager portfolios We use an analytical tool which contains details of every security in each managers portfolio and their characteristics. This helps us to monitor the managers style and ensures theyre consistent with the strategys objective. We use this information to confirm the combination of managers who best meet the objectives of the portfolios. Implementation We have a team of investment professionals dedicated to portfolio implementation. Their key jobs include: managing daily cash flows to ensure asset allocations and manager weights are kept in balance managing transitions that result from strategy changes structuring investment vehicles to facilitate efficient outcomes, and ensuring the portfolio is implemented in a tax-efficient manner. Rebalancing and managing cash flows We apply a disciplined rebalancing approach to keep each portfolio within 2% of its target asset allocation. This means investors can be confident the original characteristics of the portfolio are retained. Reducing costs Implementing changes within the portfolios will result in associated costs. However, our experience in transition management helps us to keep these costs down so our investors returns are higher. Ongoing Review Ongoing research We actively research asset classes and seek new opportunities to increase returns and reduce risk in our investments. Manager review activities We continuously review current and potential managers to ensure we have the best combination to manage our portfolios. Manager changes Just as a sustainable competitive edge is what attracts us to a certain manager, the loss of this edge can lead to a managers removal. Structural changes to our investment strategy may also lead to changes to the manager line-up. Page 10 of 13

11 MLC's Multi-Manager Credentials A market leader Weve been providing multi-manager investment portfolios for more than 25 years. Rather than just delivering good returns over a single period or timeframe, our strategies have consistently delivered strong peer-relative returns on an after-tax and after-fees basis. A history of innovation We continually review and refine our investment solutions. This culture of innovation is driven by our determination to design investment portfolios which help our investors achieve their financial goals. Scale Diversifying across a wide range of some of the worlds best investment managers and implementing the strategy efficiently takes significant scale and resources. As at 31 March 2010 we had approximately A$50 billion funds under management making us the largest multi-manager in Australia. Who uses MLC? Our investment process is used by some of Australias largest companies and by over one million Australians. Page 11 of 13

12 Manager Profiles Manages Australian cash, inflation-linked securities and nominal bonds, since 1991 Stable team of experienced investment professionals Located in Sydney, Australia Manages global shares and emerging markets shares for MLC since Over 75 years of investment management experience. Investment offices in 7 countries. Based in Los Angeles, USA. A total of 46 portfolio managers and 128 research analysts. Manages defensive global shares for MLC (since 2012) Founded in October 2007, IVA is an investment advisory firm independently owned and managed by five partners, all of whom worked together previously. The team is based in New York, USA. IVA offers a cautious and opportunistic approach to global value investing that has been practised by its two Managers for over forty years combined. These are a very diverse group of assets that arent like the mainstream assets of cash, fixed income or shares. Some examples include hedge funds, infrastructure, and gold. Alternative investments are usually included in portfolios to increase diversification and provide returns that arent strongly linked with the performance of mainstream assets. The Other category includes currency positions, money that is transitioning between managers and securities that have not been classified by asset class. Manages a multi-asset real return strategy for MLC, since 2012 Based in London, UK Pyrford has been managing Global Absolute Return assets since 1988 Manages a multi-asset class real return strategy for MLC, since Origins dating back to Employs 85 professionals. Based in London, UK Manages global banks loans for MLC, since Origins dating back to a pioneer firm in the leveraged finance market Majority of company owned by the investment team Located in New York and Connecticut, USA and London, UK Employs 28 investment professionals Page 12 of 13

13 Information in this report does not take into account your objectives, financial situation or needs. Before acting on the information you should consider whether it is appropriate to your situation. You should consider the relevant Product Disclosure Statement before making a decision about the product. Past performance is not a reliable indicator of future performance. Please also see Advice Warning and Important Information. MLC Limited (ABN AFSL ) is the issuer of: MLC MasterKey Investment Bond MLC Nominees Pty Ltd (ABN AFSL Trustee of The Universal Super Scheme ABN ) is the issuer of: MLC MasterKey Business Super (including MLC MasterKey Personal Super), MLC MasterKey Superannuation, MLC MasterKey Super, MLC MasterKey Super Fundamentals, MLC MasterKey Allocated Pension, MLC MasterKey Pension, MLC MasterKey Pension Fundamentals, MLC MasterKey Term Allocated Pension MLC Investments Limited (ABN , AFSL number ) is the issuer or operator of: MLC Investment Trust, MLC MasterKey Investment Service, MLC MasterKey Investment Service Fundamentals, MLC MasterKey Unit Trust, MLC Investments Limited also trades as MLC Private Investment Consulting. NULIS Nominees (Australia) Limited (ABN AFSL ): trustee of the MLCS Superannuation Trust ABN is the issuer of Navigator Eligible Rollover Fund ABN ; trustee of the MLC Superannuation Fund ABN is the issuer of MLC Wrap Super and MLC Navigator Retirement Plan. Navigator Australia Limited (ABN AFSL ) is the Operator and issuer of: MLC Wrap Investments, MLC Wrap Self Managed Super and MLC Navigator Investment Plan. You are only authorised to use the data and content for the purpose of research, validation and monitoring of your personal investments. You may not redistribute the data and content to any other person under any circumstances Morningstar, Inc. All rights reserved. The data and content contained herein are not guaranteed to be accurate, complete or timely. Neither Morningstar, nor its affiliates nor their content providers will have any liability for use or distribution of any of this information. To the extent that any of the content above constitutes advice, it is general advice that has been prepared by Morningstar Australasia Pty Ltd ABN: , AFSL: (a subsidiary of Morningstar, Inc.), without reference to your objectives, financial situation or needs. Before acting on any advice, you should consider the appropriateness of the advice and we recommend you obtain financial, legal and taxation advice before making any financial investment decision. If applicable investors should obtain the relevant product disclosure statement and consider it before making any decision to invest. Some material is copyright and published under licence from ASX Operations Pty Limited ACN ("ASXO"). DISCLOSURE: Employees may have an interest in the securities discussed in this report. Please refer to our Financial Services Guide (FSG) for more information at Page 13 of 13