1. RG 97 Why invest with MLC? A presentation to Client Name Date
Presented by
Firstname Surname
Jobtitle/Position

2. Expertise and insight Award-winning investment expertise
Insight-led investing
MLC is one of Australia’s most experienced investment managers.
Our multi-asset investment approach is market-leading.
It combines:
A unique, forward-looking approach that tests how our portfolios will behave in more than 50 possible scenarios, and
We’ve successfully managed multi-asset funds for more than 30 years.
Expert analysis of this information to develop important insights about risk and return that make a difference to investors’ portfolios
Zenith and Professional Planner Winner of Real Return Fund Manager 2014 and 2016
Lonsec and Money Management Winner Asset Allocator of the Year 2016

3. Risk management and innovation
Focus on managing risk
Intelligent innovation
We aim to generate returns by carefully controlling the future risks our multi-asset portfolios may be exposed to.
We’re always looking for innovative ways to generate returns and manage risk in our multi-asset portfolios.
Our unique strategies include alternative strategies, like our private equity strategy and our Low Correlation Strategy.
Both of these strategies use underlying investments that incur indirect costs.
Our investment approach gives us insight into future sources of both return and risk. With this information, we can make decisions about asset allocation so our portfolios are robust in many different environments.

4. MLC’s performance

5. Important information about risk and return
All investments come with a level of risk. Different investment strategies have different levels of risk, depending on the assets that make up the strategy.
When considering an investment, it’s important to understand that:
its value, and returns, will vary over time
investments that potentially have higher long-term returns usually have higher levels of short-term risk
returns aren’t guaranteed and you may lose some of your money, and
future returns may differ from past returns.

6. MLC Horizon 4 Strong long-term performance in super
If 30 years ago you’d invested $10,000 in MLC Horizon 4, you’d have increased the value of your investment more than six times.
Performance of $10,000 invested in MLC Horizon 4
Sub-prime mortgage
crisis and Global
Financial Crisis
Dec 2007
Britain votes to exit
European Union
Jun 2016
9/11 terror
attacks
Sep 2001
Japanese
earthquake
Mar 2011
Russian
annexation
of Crimea
Mar 2014
Share markets
crash worldwide
Oct 1987
Berlin Wall falls Nov 1989
Gulf War begins
Aug 1990
Collapse of Soviet Union
Dec 1991
Kobe, Japan
Earthquake
Jan 1995
Euro started
trading
Jan 1999
Donald Trump elected US President Nov 2016
$66,289
Investment in MLC Horizon 4 – Balanced Portfolio in MLC MasterKey Superannuation Gold Star. Returns are net of fees and tax. Source: NAB Asset Management Services Limited. Past performance is not indicative of future performance.

7. MLC Horizon 4 Solid performance compared with peers in super
Performance against median of MLC Horizon 4 – Balanced Portfolio to 30 June 2017
Performance is for rolling periods from 30 April 2001 to 30 June 2017 for MLC Horizon 4 Balanced Portfolio in MLC MasterKey Super Fundamentals. The peer universe is the Morningstar Superannuation Universe, which includes retail, government and industry funds. Returns are net of fees and tax.
Source: NAB Asset Management Services Limited. Past performance is not indicative of future performance.

8. MLC Horizon 4 Solid performance compared with peers in super
Excess return compared with median for MLC Horizon 4 - Balanced Portfolio over three year periods
At 31 July 2017 for MLC Horizon 4 Balanced Portfolio in MLC MasterKey Super Fundamentals. The peer universe is the Morningstar Superannuation Universe, which includes retail, government and industry funds. Returns are net of fees and tax.
Source: NAB Asset Management Services Limited. Past performance is not indicative of future performance.

9. MLC Wholesale Inflation Plus – Assertive Portfolio Strong long-term performance
If you invested in MLC Wholesale Inflation Plus – Assertive Portfolio when the fund began in 2005, you’d have almost doubled your money
Performance of $10,000 invested in MLC Wholesale Inflation Plus - Assertive Portfolio
Sub-prime mortgage
crisis and Global
Financial Crisis
Dec 2007
Japanese
earthquake
Mar 2011
Russian
annexation
of Crimea
Mar 2014
Britain votes to exit European Union
Jun 2016
Donald Trump elected US President Nov 2016
Kevin Rudd
elected Australian
PM Nov 2007
Julia Gillard
becomes first female
Australian PM Jun 2010
$19,314
Source: NAB Asset Management Services Limited. Returns are net of fees and taxes. Past performance is not indicative of future performance.

10. Competitive performance from MLC Horizon super portfolios
Performance of MLC Horizon portfolios in MLC MasterKey Super Fundamentals compared with peers
Returns are above median over all periods.
MLC Horizon portfolios 4 and 6 are first quartile over all periods.
To 30 June 2017
3 years
5 years
10 years
MLC Horizon 2 Q1 Q2
MLC Horizon 3
MLC Horizon 4
MLC Horizon 5
MLC Horizon 6
Peer universe is the Morningstar Superannuation Universe, which includes retail, government and industry funds.
Source: Morningstar Direct with MLC MasterKey Super Fundamentals’ returns provided by MLC. Returns are net of fees and tax. Past performance is not indicative of future performance.

11. Solid performance from MLC Horizon Wholesale portfolios
Performance of MLC Horizon Wholesale portfolios compared with peers
Most portfolios’ returns are above median over almost every period.
To 30 June 2017
3 years
5 years
10 years
MLC Horizon 2 Q1
MLC Horizon 3 Q2
MLC Horizon 4
MLC Horizon 5 Q3
MLC Horizon 6
The peer universe is the MLC Morningstar Wholesale universe.
Source: Morningstar Direct. Returns are net of fees and tax. Past performance is not indicative of future performance.

12. MLC Inflation Plus portfolios Aiming for above-inflation returns, even when markets are weak
Each portfolio is tracking well against its objective.
MasterKey Super Fundamentals Portfolio
Objective
Portfolio return before fees and taxes (% pa)
Excess return against objective (% pa)
MLC Inflation Plus - Conservative Portfolio
Inflation plus 3.5% pa (before fees) over 3 years
5.4
0.3
MLC Inflation Plus - Moderate Portfolio
Inflation plus 5% pa (before fees) over 5 years
6.7*
-0.3
MLC Inflation Plus -
Assertive Portfolio
Inflation plus 6% pa (before fees) over 7 years
11.1
3.0
*Return is for three years as a five year return is not yet available.
The returns for the portfolios, net of MLC’s fees and taxes, are:
MasterKey Super Fundamentals as at 30 June 2017 (returns net of fees and tax)
1 year (%)
3 year (% pa)
5 year (% pa)
7 year (% pa)
10 year (% pa)
MLC Inflation Plus - Conservative Portfolio
3.6%
3.9% -
MLC Inflation Plus - Moderate Portfolio
4.9%
5.0%
MLC Inflation Plus - Assertive Portfolio
6.6%
7.4%
9.5%
8.3%
4.8%
Returns as at 30 June 2017.
Source: NAB Asset Management Services Limited. Past performance is not indicative of future performance.

13. Why does MLC use investment strategies that incur indirect costs?

14. Why does MLC use strategies that incur indirect costs?
Costs and fees are just one aspect we consider when assessing strategies for our portfolios.
Each strategy has a distinct function:
Private equity: to increase diversification and produce returns above listed share markets, including during short-term market volatility. In the long term, this helps increase portfolio returns.
LCS: to increase diversification and reduce return volatility, especially in weak share markets. In the long term, this helps smooth out portfolio returns.
In our multi-asset portfolios, two of the strategies that incur direct costs are our private equity strategy and our Low Correlation Strategy (LCS). Note that our private equity strategy is not included in MLC’s Wholesale funds.
These are ‘alternative’ (ie not mainstream) strategies, which generally have higher fees than mainstream strategies.
Each has performed its function, and met its benchmarks most of the time, over the longer term, even when indirect costs are taken into account.
We invest in these strategies because we believe that net of fees, they’ll have a positive impact on a portfolio’s return or risk outcome.

15. MLC’s private equity strategy in super Consistent long-term returns above global share markets, even when indirect costs are taken into account
MLC global private equity strategy vs global shares (hedged): rolling 7 year returns to 30 June 2017
One of the objectives of MLC’s private equity strategy is to outperform global shares over seven year periods
Source: NAB Asset Management Services Limited. Private equity returns are net of indirect costs but before other fees and tax. Past performance is not a reliable indicator of future performance.
Global shares (hedged) is the MSCI All Countries World Index (hedged)

16. MLC’s private equity strategy in super A cushion to returns in weak share markets
MLC global private equity strategy return vs global shares (hedged) Returns over one year rolling periods to 30 June 2017
Global financial crisis
Global shares (hedged) is MSCI All Countries World Index hedged. MSCI Word Index hedged prior to July 2002.
Source: NAB Asset Management Services Limited. Private equity returns are net of indirect costs but before other fees and tax. Past performance is not a reliable indicator of future performance.

17. Low Correlation Strategy in super* and Wholesale products
Performance that’s largely independent of global share markets, helping to smooth portfolio returns
Performance of Low Correlation Strategy compared with global shares (before fees and tax)
LCS avoids the big upward and downward swings of share markets, helping to smooth portfolio returns
*Excluding MySuper.
Source: NAB Asset Management Services Limited. Low Correlation Strategy returns are net of indirect costs but before other fees and taxes. Past performance is not a reliable indicator of future performance.
Global Shares is the MSCI All Country World Index

18. Longer-term total returns for MLC’s alternative strategies are convincing
Private equity has delivered impressive long-term returns, above those of global share markets, after indirect costs.
Even after indirect costs, LCS has provided higher returns than cash.
Total returns for cash, LCS, global shares and MLC’s private equity strategy
Source: NAB Asset Management Services Limited. The returns for LCS and private equity are net of indirect costs but before other fees and taxes. Past performance is not indicative of future performance.
Cash is the Bloomberg AusBond Bank Bill .

19. Contribution to returns of alternative strategies MLC Inflation Plus Moderate Portfolio in super
In the year to 30 June 2017:
Private equity contributed 0.76% to the portfolio’s return.
LCS contributed 0.34% to the portfolio’s return.
Source: NAB Asset Management Services Limited. Returns are after indirect costs but before other fees and taxes. Past performance is not indicative of future performance.

20. Contribution to returns of alternative strategies MLC Horizon 4 Balanced Portfolio in super
In the year to 30 June 2017:
LCS contributed 0.16% to the portfolio’s return.
Private equity contributed 1.13% to the portfolio’s return.
Source: NAB Asset Management Services Limited. Returns are after indirect costs but before other fees and taxes. Past performance is not indicative of future performance.

21. Contribution to returns of alternative strategies MySuper
In the year to 30 June 2017:
Private equity contributed 0.69% to the portfolio’s return.
JANA Alternative Beta Strategy contributed 0.1% to the portfolio’s return.
Source: NAB Asset Management Services Limited. Returns are after indirect costs but before other fees and taxes. Past performance is not indicative of future performance.

22. Contribution to returns of alternative strategies MLC Wholesale Inflation Plus Moderate Portfolio
In the year to 30 June 2017, the Low Correlation Strategy contributed 0.36% to the portfolio’s return.
LOW CORRELATION STRATEGY
Source: NAB Asset Management Services Limited. Returns are after indirect costs but before other fees and taxes. Past performance is not indicative of future performance.

23. Contribution to returns of alternative strategies MLC Wholesale Horizon 4 Balanced Portfolio
In the year to 30 June 2017, the Low Correlation Strategy contributed 0.14% to the portfolio’s return.
LOW CORRELATION STRATEGY
Global List Property
Source: NAB Asset Management Services Limited. Returns are after indirect costs but before other fees and taxes. Past performance is not indicative of future performance.

24. More information RG 97 adviser site: mlc.com.au/rg97 Updated FAQ
Resources to support client conversations about:
what the RG 97 changes are
how MLC invests
the value of our investment management approach, and
the benefits of using investment strategies that incur indirect costs.

25. Important information
This information is provided by MLC Investments Limited (ABN , AFSL ), Responsible Entity and Issuer of the MLC Wholesale Horizon 4 Balanced Portfolio and MLC Wholesale Inflation Plus - Moderate Portfolio (MLC) and NULIS Nominees (Australia) Limited (ABN , AFSL ), Trustee and Issuer of the MLC Super Fund (ABN: ABN ) (NULIS).
MLC and NULIS are members of the National Australia Bank Limited (ABN , AFSL ) (NAB) group of companies (NAB Group). NAB does not guarantee or otherwise accept any liability in respect of any financial product referred to in this presentation. MLC and NULIS may use the services of NAB Group companies where it makes good business sense to do so and will benefit customers.
This information is directed to and prepared for Australian residents only.
This information may constitute general advice. It has been prepared without taking account of an investor’s objectives, financial situation or needs and because of that an investor should, before acting on the advice, consider the appropriateness of the advice having regard to their personal objectives, financial situation and needs.
You should obtain a Product Disclosure Statement (PDS) relating to the financial products mentioned in this communication issued by MLC or NULIS and consider it before making any decision about whether to acquire or continue to hold these products. A copy of the PDS is available upon request by phoning the MLC call centre on or on our website at mlc.com.au or mlcinvestmenttrust.com.au.
Past performance is not a reliable indicator of future performance. The value of an investment may rise or fall with the changes in the market.
MLC and NULIS rely on third parties to provide certain information and are not responsible for its accuracy. MLC and NULIS are not liable for any loss arising from any person relying on information provided by third parties.

26. Important information
Bloomberg Finance LP. and its affiliates (collective, “Bloomberg”) do not approve or endorse any information included in this material and disclaim all liability for any loss or damage of any kind arising out of the use of all or any part of this material.
The funds referred to herein are not sponsored, endorsed, or promoted by MSCI Inc. (“MSCI”), and MSCI bears no liability with respect to any such fund.
The Professional Planner | Zenith Fund Awards are determined using proprietary methodologies. Fund Awards were issued October 7, 2016 and are solely statements of opinion and do not represent recommendations to purchase, hold or sell any securities or make any other investment decisions. Fund Awards are current for 12 months from the date awarded and are subject to change at any time. Fund Awards for previous years are referenced for historical purposes only.
Neither Morningstar nor any of its information providers can or do guarantee the accuracy, completeness, timeliness, or correct sequencing of any of the information available through the Morningstar Direct application, including, but not limited to information originated by Morningstar, licensed by Morningstar from its information providers, or gathered by Morningstar from publicly available sources. There may be delays, omissions, or inaccuracies in the information. Neither Morningstar nor its information providers shall have any liability, contingent or otherwise for the accuracy, completeness, timeliness, or correct sequencing of the information or for any decision made or action taken by anyone in reliance upon the information or Morningstar Direct or for interruption of any data, information, or any other aspect of Morningstar Direct.
Neither Morningstar nor its information providers make any representations about the suitability of the information, software, products, or services contained in or available through or in conjunction with Morningstar Direct. All such information, software, products, and services are provided "as is" without warranty of any kind.

27. Thank you