Plum Investment Menu - Plum€¦ · Investment Menu Preparation date Issued by The Trustee The Fund...

Plum SuperInvestment Menu

The FundIssued by The TrusteePreparation dateMLC Super FundABN 70 732 426 024

NULIS Nominees (Australia) LimitedABN 80 008 515 633AFSL 236465

30 September 2017

This menu gives you information about the investments availablethrough Plum Super.

A financial adviser can help you decide which investment option isright for you.

The information in thisdocument forms part of thePlum Super Product

4Investing with Plum

5Things to consider before you invest

14Choosing your path Disclosure Statement(PDS), dated 30 September15Your investment options2017. Together with theInsurance Guide and FeeBrochure, these documentsshould be consideredbefore making a finaldecision about whether toinvest. They are availablewhen you log into plum.com.au

The information in this document is general information only and doesn't take into account your objectives, financial situation orindividual needs. Because of that, before acting on this information, you should consider its appropriateness, having regards toyour objectives, financial situation and needs. For more information please contact us, speak with your financial adviser or go tothe online copy of this document on plum.com.au

Information in this document may change from time to time. Updates in relation to information that are not materially adversemay be made available on plum.com.au but you may not be directly notified of these updates. You may, however, obtain a papercopy of these change communications on request free of charge by contacting us.

Please read the latest applicable Product Disclosure Statement and any incorporated materials before making any decision abouta product.

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Contents

We provide a broad rangeof investment options andyou can choose anycombination of these toreally put your investmentplan into action.

Our Investment Menu has beendeveloped to suit all levels ofinvestment knowledge and experience.You can choose from a broad range ofinvestment options, includingpre-mixed, diversified and single-sectoroptions.

We believe the best way to manage ourportfolios is to employ the skills ofmultiple specialist investmentmanagers. We’ve appointed the NABGroup’s retail multi-asset managementbusiness, NAB Asset ManagementServices Limited (NSL) to advise on andmanage our investment options. Ourinvestment experts have extensiveknowledge and experience at designingand managing portfolios using amulti-manager investment approach.

While NSL’s name has changed throughtime, it’s the same team of investmentexperts that’s been advising on andmanaging our portfolios for decades.

Investing with usOur portfolios have different investmentobjectives because we know everyonehas different ideas about how theirmoney should be managed.

Our portfolios make sophisticatedinvesting straightforward.

We structure our portfolios to delivermore reliable returns in many potentialmarket environments. And, as ourassessment of world markets changes,we evolve the portfolios to manage newrisks and capture new opportunities.

We use specialist investment managersin our portfolios. Our investmentexperts have the experience andresources to find some of the world’sbest managers from around the world.Our investment managers may bespecialist in-house managers, externalmanagers or a combination of both.

Selecting investmentoptionsWe’ve appointed JANA InvestmentAdvisers Pty Ltd (JANA) to advise us onour Investment Menu. It is one of theleading investment consultants inAustralia with over A$350 billion fundsunder advice and A$80 billion fundsunder management (at 30 June 2017).JANA is partly owned by NationalAustralia Bank Limited (NAB).

The Investment Menu is regularlyreviewed by a committee ofexperienced investment professionals.

A number of factors are taken intoconsideration when choosing theinvestment options for the InvestmentMenu. These may include theinvestment objective, fees, externalresearch ratings and the performanceof the investment options and ourability to efficiently administer theinvestment option. The selection ofinvestment options issued by companieseither wholly or partially owned by NABGroup is done on an arm’s-length basisin line with the Trustee’s ConflictsManagement Policy.

Investor Profile ToolFor greater insight into how yourmoney is managed, including whereyour money is invested, how yourinvestments are performing and theinvestment fees and costs charged,log in to plum.com.au

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Investing with Plum

Before you do any investing, there aresome things you need to consider,including the level of risk you areprepared to accept.

Factors that will affect your decisioninclude:

your investment goalsthe savings you'll need to reach yourgoalsyour age and how many years youhave to investwhere other parts of your wealth areinvestedthe return you may expect from yourinvestments, andhow comfortable you are withinvestment risk.

Investment RiskEven the simplest investment comeswith a level of risk. Differentinvestments have different levels of risk,depending on the assets that make upthe investment.

While the idea of investment risk canbe confronting, it’s a normal part ofinvesting. Without it, you may not getthe returns you need to reach yourfinancial goals. This is known as therisk/return trade-off.

Many factors influence an investment’svalue. These include, but aren’t limitedto:

market sentimentchanges in inflationgrowth and contraction in Australianand overseas economieschanges in interest ratesdefaults on loanscompany specific issuesliquidity (the ability to buy or sellinvestments when you want to)changes in the value of theAustralian dollar

changes in Australian laws and thoseof overseas jurisdictions, anda counterparty not meeting itsobligations eg when buyingsecurities the seller may not deliveron the contract by failing to providethe securities.

VolatilityThe value of an investment with ahigher level of risk will tend to rise andfall more often and by greater amountsthan investments with lower levels ofrisk, that is, it is more volatile. Periodsof volatility can be unsettling and mayoccur regularly. You may find itreassuring to know that, ofteninvestments that produce higher returnsand growth in value over long periodstend to be more volatile in the shortterm.

By accepting that volatility will occur,you’ll be better able to manage yourreaction to short-term movements. Thiswill help you stay true to your long-terminvestment strategy.

When considering your investment, it’simportant to understand that:

its value will vary over timeinvestments with higher returnpotential usually have higher levelsof riskreturns aren’t guaranteed, and youmay lose some of your moneyprevious returns shouldn’t be usedto predict future returns, andyour final super balance may notprovide for an adequate retirement.

Diversify to reduce volatilityand other risksDiversification – investing in a range ofinvestments – is a sound way to reduceshort-term volatility of a portfolio’sreturns. That’s because different typesof investments perform well in differenttimes and circumstances. When someare providing good returns, others maynot be.

Portfolios can be diversified acrossdifferent asset classes, industries andcountries as well as across investmentmanagers with different approaches.

The more you diversify, the less impactany one investment can have on youroverall returns.

One of the most effective ways ofreducing volatility is to diversify acrossa range of asset classes.

Diversification across asset classesis just one way of managing risk.Please refer to the Investmentapproaches section for moreinformation.

A financial adviser can help youclarify goals, assist with creating afinancial plan which helps youmanage risk and consider issuessuch as:

how many years you have toinvestthe savings you'll need to reachyour goalsthe return you may expect fromyour investment, andhow comfortable you are withvolatility.

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Things toconsider beforeyou invest

Types of assetsAsset classes are generally grouped as defensive, growth or alternatives (which can be both defensive and growth) becauseof their different characteristics.

Multi-asset portfolios include defensive, growth and alternative assets because they generally perform differently. For example,defensive assets may be in a portfolio to provide returns when share markets are weak. And growth assets may be includedbecause of their potential to produce higher returns than cash in the long term. However, in some market conditions all typesof assets may deliver low or negative returns at the same time.

The main differences between these types of assets are:

AlternativesGrowthDefensive

A very diverse group of assets andstrategies. Some examples include

Shares, unlisted property andproperty securities.

Cash and fixed income securities.Asset classesincluded

private assets and hedge funds.Because alternatives are diverse,they may be included in defensiveor growth assets.

To provide returns that aren’tstrongly linked with those of

To provide long-term capitalgrowth.

To stabilise returns.How they aregenerally used

mainstream assets. They may beincluded for their defensive orgrowth characteristics.

Expected to produce returns andvolatility that aren’t strongly linked

Expected to produce higherreturns, and be more volatile, thandefensive assets over the long term.

Expected to produce lower returns,and be less volatile, than growthassets over the long term.

Risk and returncharacteristics

to mainstream assets such asshares. Risk and returncharacteristics of differentalternative investments can varysignificantly.

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Asset classesAsset classes are groups of similar typesof investments. Each class has its risksand benefits, and goes through its ownmarket cycle.

A market cycle can take a couple ofyears or many years as prices rise, peak,fall and stabilise. Through investing forthe long term, at least through a wholemarket cycle, you can improve yourchance of benefiting from a period ofstrong returns and growth to offsetperiods of weakness.

The illustration below shows indicativeexpectations of returns and volatilityfor the main asset classes over a wholemarket cycle. But each market cycle isdifferent, so unfortunately it isn’tpossible to accurately predict asset classreturns or their volatility. Depending onthe conditions at the time, actualreturns could be significantly differentfrom those shown.

Here are the main asset class risks andbenefits.

CashCash is generally a low risk investment.

Things to consider:

Cash is often included in a portfolioto meet liquidity needs and tostabilise returns.The return is typically all income andis referred to as interest or yield.Cash is usually the least volatile typeof investment. It also tends to havethe lowest return over a marketcycle.The market value tends not tochange. However, when you investin cash, you’re effectively lendingmoney to businesses or governmentsthat could default on the loans,resulting in a loss on yourinvestment.Many cash funds invest in fixedincome securities that have a veryshort term until maturity.

Fixed income (including TermDeposits)

When investing in fixed income, you’reeffectively lending money to businessesor governments. Bonds are a commonform of fixed income security.

Things to consider:

Fixed income securities are usuallyincluded in a portfolio for theirrelatively stable returncharacteristics.Returns typically comprise interestand changes in the market value ofthe security. Interest rates and valuestend to move in opposite directions.Therefore when interest rates rise,market values can fall and wheninterest rates fall, market values canrise.While income from fixed incomesecurities usually stabilises returns,falls in their market value may resultin a loss on your investment. Marketvalues may fall due to concern aboutdefaults on loans or an increase ininterest rates. When interest ratesare low, the risk of rates rising andmarket values falling, is greatest.There are different types of fixedincome securities and these will havedifferent returns and volatility.Investing in fixed income securitiesoutside of Australia may expose yourportfolio to movements in exchangerates.

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Unlisted property

Investing in unlisted property gives yourportfolio exposure to property assetsthat aren’t traded on listed exchanges.Investments may be through unlistedproperty trusts or direct ownership.

Things to consider:

Property is usually included in aportfolio for its growthcharacteristics.Returns typically compriseincome (such as rental income) andchanges in value.Returns are driven by many factorsincluding the economic environmentin various countries.Because unlisted property isn’t listedon an exchange, determining itsvalue for a fund’s unit price can bedifficult and may involve aconsiderable time lag. This alsomeans unlisted property returnsdon’t exhibit as much volatility asREITs and listed shares.Unlisted property is illiquid whichmakes it difficult for an investmentmanager to buy or sell. Investing outside Australia mayexpose your portfolio to movementsin exchange rates.

Property securities

Investing in property securities givesyou exposure to listed propertysecurities in Australia and around theworld. These are also referred to as RealEstate Investment Trusts (REITs).

Things to consider:

Property securities areusually included in a portfolio fortheir growth characteristics.Returns typically comprise income(such as distributions from REITs) andchanges in REIT values.Returns are driven by many factorsincluding the economic environmentin various countries.The global REIT market is far morediversified than the Australian REITmarket.Property securities returns can bevolatile.Investing outside Australia mayexpose your portfolio to movementsin exchange rates.

Australian shares

This asset class consists of investmentsin companies listed on the AustralianSecurities Exchange (and otherregulated exchanges). Shares are alsoknown as equities.

Things to consider:

Australian shares can be volatile andare usually included in a portfolio fortheir growth characteristics.The Australian share market is lessdiversified than the global marketbecause Australia is currentlydominated by a few industries suchas Financials and Resources.Returns usually comprise dividendincome and changes in share prices.Dividends may have the benefit oftax credits attached to them (knownas franking or imputation credits).Returns are driven by many factorsincluding the performance of theAustralian economy.

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Global shares

Global shares consist of investments incompanies listed on securitiesexchanges around the world.

Things to consider:

Global shares can be volatile and areusually included in a portfolio fortheir growth characteristics.The number of potential investmentsis far greater than in Australianshares.Returns usually comprise dividendincome and changes in share prices.Returns are driven by many factorsincluding the economic environmentin various countries.When you invest globally, you’re lessexposed to the risks associated withinvesting in just one economy.Investing outside Australia meansyou’re exposed to movements inexchange rates.

Alternatives

These are a very diverse group of assets.Some examples include private assets,hedge funds, real return strategies,gold, listed infrastructure securities andunlisted infrastructure.

Things to consider:

Because alternatives are diverse, theymay be included in a portfolio fortheir defensive or growthcharacteristics.Alternative investments are usuallyincluded in portfolios to increasediversification and provide returnsthat aren’t strongly linked with theperformance of mainstream assets.Investment managers includealternative investments in a portfoliobecause they generally expect thereturn and diversification benefits ofalternative investments to outweighthe higher costs that tend to beassociated with them.Some alternative strategies aremanaged to deliver a targetedoutcome. For example, real returnstrategies aim to produce returnsthat exceed increases in the costs ofliving (ie inflation).For some alternatives, such as hedgefunds, derivatives may be usedextensively and it can be less obviouswhat assets you’re investing in thanwith other asset classes.Some alternative investments areilliquid, which makes them difficultto buy or sell.To access alternative investments yougenerally need to invest in amanaged fund that, in turn, investsin alternatives.Because most alternative investmentsaren’t listed on an exchange,determining their value for a fund’s

unit price can be difficult and mayinvolve a considerable time lag.Alternatives invested outside ofAustralia may expose your portfolioto movements in exchange rates.

Private assets

Investing in private assets gives yourportfolio exposure to assets that aren’ttraded on listed exchanges. An exampleof this is an investment in a privatelyowned business.

Things to consider:

Private assets are alternative assetsthat are usually included in aportfolio for their growthcharacteristics.Returns are driven by many factorsincluding the economic environmentin different countries.Private assets can be volatile and cantake years to earn a positive return.Private assets may be included in aportfolio to provide higher returnsthan share markets in the long run,and to increase diversification.Private assets are illiquid whichmakes them difficult to buy or sell.To access private assets you generallyneed to invest in a managed fundthat invests in private assets.Because private assets aren’t listedon an exchange, determining theirvalue for a fund’s unit price can bedifficult and may involve aconsiderable time lag.

Investment approachesInvestment managers have differentapproaches to selecting investments.There are generally two broadapproaches: passive and activemanagement.

Passive management

Passive, or index managers, chooseinvestments to form a portfolio whichwill deliver a return that closely tracks

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a market benchmark (or index). Passivemanagers tend to have lower costsbecause they don’t require extensiveresources to select investments.

Active Management

Active managers select investments theybelieve, based on research, will performbetter than a market benchmark overthe long term.

They buy or sell investments when theirmarket outlook alters or theirinvestment insights change.

The degree of active managementaffects returns. Less active managerstake small positions away from themarket benchmark and more activemanagers take larger positions.Generally, the larger an investmentmanager's positions, the more theirreturns will differ from the benchmark.

Active managers have differentinvestment styles that also affect theirreturns. Some common investmentstyles are:

Bottom-up – focuses on forecastingreturns for individual companies,rather than the market as a whole.Top-down – focuses on forecastingbroad macroeconomic trends andtheir effect on the market, ratherthan returns for individualcompanies.Growth – focuses on companies theyexpect will have strong earningsgrowth.Value – focuses on companies theybelieve are undervalued (their pricedoesn’t reflect earning potential).Core – aims to produce competitivereturns in all periods.

Ethical investing

We have an Environment, Social andGovernance Risk Management Policy(ESG Policy), which applies to MySuper.The ESG Policy, available onplum.com.au, outlines the processes in

place to assess ESG factors for MySuper,including consideration of ESG factorsin investment decisions; monitoring ofinvestment managers to assess howthey identify, evaluate and manage ESGfactors within their portfolios on anongoing basis; and maintaining aresearch program in relation to ESGthemes and trends.

For other investment options, we expectthe active investment managers toconsider any material effect ESG factorsmay have on the returns from theirinvestments, however we don’t requirethem to.

Investment techniquesInvestment managers may use differentinvestment techniques that can changethe value of an investment. Some of themain investment techniques areexplained below.

Derivatives

Derivatives may be used in any of theinvestment options. Derivatives arecontracts that have a value derived fromanother source such as an asset, marketindex or interest rate. There are manytypes of derivatives including swaps,options and futures. They are a commontool used to manage risk or improvereturns.

Some derivatives allow investmentmanagers to earn large returns fromsmall movements in the underlyingasset’s price. However, they can loselarge amounts if the price movement inthe underlying asset is unfavourable.

Risks particular to derivatives includethe risk that the value of a derivativemay not move in line with theunderlying asset, the risk thatcounterparties to the derivative may notbe able to meet payment obligationsand the risk that a particular derivativemay be difficult or costly to trade.

Investment managers have derivativespolicies which outline how derivativesare managed.

Currency management

If an investment manager invests inassets in other countries, their returnsin Australian dollars will be affected bymovements in exchange rates (as wellas changes in the value of the assets).

A manager of international assets maychoose to protect Australian investorsagainst movements in foreign currency.This is known as ‘hedging’.Alternatively, the manager may chooseto keep the assets exposed to foreigncurrency movements, or ‘unhedged’.

This exposure to foreign currency canincrease diversification in a portfolio.

Gearing

Gearing can be achieved by using loans(borrowing to invest), or throughinvesting in certain derivatives, such asfutures.

Gearing magnifies exposure to potentialgains and losses of an investment. As aresult, you can expect largerfluctuations (both up and down) in thevalue of your investment compared tothe same investment which is notgeared.

Investment managers can take differentapproaches to gearing. Some changethe gearing level to suit differentmarket conditions. Others maintain atarget level of gearing.

It’s important to understand thepotential risks of gearing, as well as itspotential benefits. When asset valuesare rising by more than the costs ofgearing, the returns will generally behigher than if the investment wasn'tgeared. When asset values are falling,gearing can multiply the capital loss.

If the fall is dramatic there can be evenmore implications for gearedinvestments. For example, where the

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lender requires the gearing level to bemaintained below a predeterminedlimit, if asset values fall dramatically,the gearing level may rise above thelimit, forcing assets to be sold whenvalues may be continuing to fall. In turn,this could lead to more assets having tobe sold and more losses realised.Withdrawals (and applications) may besuspended in such circumstances,preventing you from accessing yourinvestments at a time when values arecontinuing to fall.

Although this is an extreme example,significant market falls have occurredin the past. Recovering from such fallscan take many years and the gearedinvestment’s unit price may not returnto its previous high.

Other circumstances (such as the lenderrequiring the loan to be repaid for otherreasons) may also prevent a gearedinvestment from being managed asplanned, leading to losses.

You need to be prepared for all typesof environments and understand theirimpact on your geared investment.

Short selling

Short selling is used by an investmentmanager when it has a view that anasset’s price will fall. The managerborrows the asset from a lender, usuallya broker, and sells it with the intentionof buying it back at a lower price. If allgoes to plan, a profit is made. The keyrisk of short selling is that, if the priceof the asset increases, the loss could besignificant.

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Considering an investment optionThe information below explains terms used in the profiles for each investment option in the Investment Menu.

ExplanationTerms used in investmentoption profiles

Describes what the investment option aims to achieve over a certain timeframe. Most investmentoptions aim to produce returns that are comparable to a benchmark (see below for more informationon benchmarks). The returns of an investment option should be judged against its objective.

Investment objective

The investment objective for MySuper aims to achieve a return ‘after investment fees and taxes’. Thismeans the investment fee and indirect cost ratio (shown in Section 6 of the PDS) and investmentearnings taxes have been deducted from returns when setting the investment objective and comparingperformance against it. The administration fees, other costs, and other taxes listed in Section 6 and 7of the PDS have not been deducted.

Some investment options aim to achieve a return ‘before fees and taxes’. This means the taxes, fees,and costs, other than the indirect cost ratio, listed in Section 6 and 7 of the PDS have not been deductedfrom returns when setting the investment objective and comparing performance against it.

Other investment objectives aim to achieve a return ‘after fees’. This means the investment fee andindirect cost ratio (shown in Section 6 of the PDS) have been deducted from returns when setting theinvestment objective and comparing performance against it. The administration fees, other costs, andtaxes listed in Section 6 and 7 of the PDS have not been deducted.

Describes how the investment option is managed.How the investmentoption is managed

Suggests why you may be interested in investing in this particular investment option. Your own personalobjectives and circumstances will also affect your decision.

The investment optionmay be suited to you if ...

Investment managers suggest minimum timeframes for each investment option. Investing for theminimum suggested time or longer improves your chances of achieving a positive return. However,investing for the minimum time doesn’t guarantee a positive return outcome because every marketcycle is different. Your personal circumstances should determine how long you hold an investment.

Minimum suggested timeto invest

Shows the proportion of an investment option that’s invested in each asset class. The range showsthe minimum and maximum amount that may be held in each asset class at any time.

Asset allocation

Benchmarks are usually market indices that are publicly available. Shares are often benchmarkedagainst a share market index and fixed income against a fixed income market index. Other benchmarkscan be based on particular industries (eg mining), company size (eg small caps) or the wider market(eg S&P/ASX 200 or the MSCI World Index). Benchmarks for multi-asset portfolios may be:

Benchmark

made up of a combination of market indices weighted according to the asset allocation (commonlyknown as composite benchmarks), ora single measure, such as inflation. A common index of inflation, which is the rise in the cost ofliving, is the Consumer Price Index (CPI).

When comparing returns to a benchmark you should consider:

whether the investment option’s return is calculated before or after fees and tax are deductedthe period over which the return should be measured, andthat an investment option is unlikely to achieve its objective in all market environments.

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ExplanationTerms used in investmentoption profiles

The Trustee uses the Standard Risk Measure (SRM) to help you compare investment risk across theinvestment options offered. The SRM is based on industry guidance and is the estimated number ofnegative annual returns over any 20 year period. The SRM is not a complete assessment of investmentrisk, for instance it doesn't:

Standard Risk Measure(Estimated number ofnegative annual returns)

detail the size a negative return could be or the potential for a positive return to be less than amember requires to meet their objectivecapture the risk of the investment manager not meeting its investment objective,ortake into account the impact of administration fees and tax, which would increase the chance ofnegative return.

Members should still ensure they are comfortable with the risks and potential losses associated withtheir chosen investment. Information on how the SRM is calculated, log into plum.com.au

Estimated number of negative annual returns in any20 year periodRisk labelRisk

band

Less than 0.5Very low1

0.5 to less than 1Low2

1 to less than 2Low to medium3

2 to less than 3Medium4

3 to less than 4Medium to high5

4 to less than 6High6

6 or greaterVery high7

Shows the costs of investing in each investment option, including investment fees, buy-sell spreads,and where applicable, indirect costs (including performance related costs), transaction costs, borrowingcosts and property operating costs.

Fees and costs

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MySuperMySuper is a diversified investmentoption designed to meet the needs ofmost members of the Fund. MySuper isbroadly diversified within asset classes,across asset classes and acrossunderlying investment managers.

If you don’t make an investment choice,your super money will go into MySuper.Or, you can choose an investmentoption from one of the following ‘paths’which are designed to suit your level ofinvolvement and investmentknowledge.

Path one - simple choice(and other investmentoptions)There is a range of diversifiedinvestment options in Path one so youcan select an expected risk and returnprofile to meet your needs.

At the lower end of the risk and returnpotential is the conservative option,which invests mainly in defensive assetssuch as fixed interest and cash. At thehigher end of the risk and returnpotential is the aggressive option, whichinvests mainly in growth assets such asshares.

This comprehensive series of investmentoptions means, wherever you are in lifeyou can choose an investment solutionto suit you.

These options are actively managed andbroadly diversified within asset classes,across asset classes and acrossunderlying investment managers.

Investing in Path one is an easy way togain access to sophisticatedinvestments. This way you canimplement your financial plan withconfidence.

Path two - flexible choiceThe investment options in Path twomainly consist of single-sectorinvestment options plus somediversified options. Single-sectorinvestment options cater for peoplelooking for a complete asset classsolution.

Some options in this path are managedon an active basis while others follow aspecific market index and aim toprovide similar returns to the market.

We also offer the Cash Fund, whichinvests in deposits with banks.

You should have some understandingof investments, including the differencebetween the main asset classes andwhether you prefer an active or passivemanagement approach before electingan investment option in this path.

Path three - specialistchoiceWe recognise some members may wantextra investment options. To help giveyou this choice, you can select frominvestment options in Path three whichtarget specific asset class sectors orinvest using a particular investmentstyle.

You should have a strong understandingof investment risks before selecting aninvestment option in this path. Werecommend you seek financial adviceas greater investment experience isgenerally required for investing in thispath.

You should carefully consider therisks of investing your entireaccount balance in a single-sectorinvestment option and whether thisrepresents adequate diversification.For more information, refer to the'Diversify to reduce volatility andother risks' section of thisInvestment Menu.

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Choosingyour path

MySuper

To outperform the CPI + 3% pa after investment fees and taxes over rolling 10 year periods.Investment objective

MySuper is a multi-asset portfolio managed by our investment experts with investment advicefrom JANA. JANA is one of Australia’s leading investment consulting businesses for large corporatesuperannuation funds and is partly owned by the National Australia Bank group.

How the investment option ismanaged

The portfolio has a strong bias to growth assets and some exposure to defensive assets. Theallocations to these assets are actively managed within defined ranges in accordance with ourview of how economic and market conditions might unfold.

The portfolio is broadly diversified across mainstream asset classes, with some exposure to privateand alternative assets and strategies. It uses both passive and active investment managers. Thesemanagers invest in many companies and securities in Australia and overseas.

All aspects of our approach to investing, outlined earlier, are used in the portfolio.

The investment option may besuited to you if...

you want long-term capital growth, andyou understand and accept there can be moderate to high fluctuations in the value of yourinvestment.

6 yearsMinimum suggested timeto invest

A135963-0917

Defensiveassets

Growth assets%

%

Asset class Benchmarkasset

allocation (%)

Ranges(%)

Cash %

Australian fixed income %

Global fixed income (hedged) %

Alternatives and other(defensive)

%

Total defensive assets % –%

Australian shares %

Global shares (hedged) %

Global shares %

Unlisted property %

Property securities %

Private assets %

Alternatives and other (growth) %

Total growth assets % –%

Benchmark asset allocationand ranges

The portfolio will be managedwithin these ranges.

The benchmark asset allocationand ranges may change overtime. The most up-to-dateinformation is available bylogging into plum.com.au

A combination of market indices, weighted according to the asset allocation.Benchmark

5 - Medium to high, between 3 and 4 years in 20 yearsStandard Risk Measure(Estimated number of negativeannual returns)

0.46% pa of your balance in this investment option.Investment fee1

Entry/Exit 0.05%/0.05% of any amount moved in or out of this investment option.Buy-sell spreads

AmountAll costs below are calculatedbased on your balance in thisinvestment option.

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Your investmentoptions

0.23% paEstimated Indirect Cost Ratio(ICR)1

This is made up of:Estimated performance relatedcosts (0.09% pa)Estimated other indirect costs(0.14% pa)

0.13% paEstimated Net transactioncosts1 and 2

These are the transaction coststhat have not been recovered bya buy-sell spread or have notbeen included in the ICR above.

0.03% paEstimated Borrowing (gearing)costs1

0.02% paEstimated Property operatingcosts1

1 This amount reduces the net return on the investment option. Please refer to the PDS and Fee Brochure for further informationabout these fees and costs, including how they are calculated.2 The estimated Gross transaction cost for the financial year to 30 June 2017 is 0.17% pa. Any difference between this amountand the Net transaction cost in the table above is due to amounts recovered by a buy/sell spread or amounts included in theICR.

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Your investmentoptions

Path one- simple choice

National Asset ManagementServices Limited (NSL) is theinvestment manager of yourPath one investmentoptions.

NSL's approach to investing

Our investment approach can besummarised as follows:

NSL believes it is possible to reducerisk and outperform over the longterm by taking advantage ofoccasional large divergences fromfair value in investment markets.Through diligent hands-on research,it is possible to select managerscapable of outperforming over thelong term. While above-averageability in security selection is aprerequisite in most asset classes,managers must also exhibit adisciplined process and style and thisshould be reflected in the qualitiesand mindset of its personnel.To be of real value, research needsto be implemented with fullcommitment and not sit on thefence.

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Pre-mixed Conservative


Aims to provide limited ups and downs in investment value by investing primarily in defensiveassets.


The investment option may besuited to you if ...

you want to invest with a bias to defensive assets, with some exposure to growth assets.preserving your capital is an important but not overriding concern.






3 - Low to medium, between 1 and 2 years in 20 yearsStandard Risk Measure(Estimated number of negativeannual returns)





This is made up of:Estimated performance relatedcosts (0.05 pa)Estimated other indirect costs(0.17% pa)






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Pre-mixed Cautious

To outperform the CPI + 2.5% pa after investment fees and taxes over rolling 5 year periods.Investment objective

Aims to provide a balanced mix of assets, steady long-term returns and moderate investmentvolatility.



you want to invest in an approximately equal mix of defensive and growth assets.you want a portfolio with some long-term growth potential and can tolerate some changes invalue.






4 - Medium, between 2 and 3 years in 20 yearsStandard Risk Measure(Estimated number of negativeannual returns)











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Pre-mixed Moderate


Aims to invest proportionately more in growth assets than defensive assets to achievemedium-to-high long-term returns, with moderate to high volatility.



you want to invest with a bias to growth assets.you want a portfolio with a bias towards long-term capital growth potential and can toleratemoderate to large changes in value.

















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Pre-Mixed Assertive


Aims to invest primarily in growth assets with limited exposure to fixed income investments,accepting higher volatility to seek higher returns over the long term.


The investment option may besuited to you if ..,

you want to invest with a strong bias to growth assets.you want a portfolio with a strong bias towards long-term capital growth potential and cantolerate moderate to large changes in value.






6 - High, between 4 and 6 years in 20 years.Standard Risk Measure(Estimated number of negativeannual returns)











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Pre-mixed Aggressive


Aims to invest wholly in growth assets, accepting high volatility to seek higher long-term returns.How the investment option ismanaged


you want to invest in growth assets.you want a portfolio focused on long-term capital growth potential and can tolerate largechanges in value.






6 - High, between 4 and 6 years in 20 yearsStandard Risk Measure(Estimated number of negativeannual returns)











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Path two- flexible choice

Cash Fund

To outperform the Reserve Bank of Australia's Cash Rate Target over rolling 1 years before feesand taxes.


The fund invests in deposits with banks (100% National Australia Bank as at 30 September 2017)and may also invest in other comparable high quality securities.


you want to invest in a low risk cash portfolio.The investment option may besuited to you if ...

No minimumMinimum suggested timeto invest

100% CashBenchmark asset allocation

Reserve Bank of Australia's Cash Rate Target Benchmark

2 - Low, between half and 1 years in 20 yearsStandard Risk Measure(Estimated number of negativeannual returns)











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Diversified Fixed Interest

To outperform the composite benchmark of 50% Bloomberg AusBond Composite Bond Index (AllMaturities) and 50% Barclays Global Aggregate Index (hedged into Australian Dollars) before feesand taxes over rolling 3 year periods.


The fund is diversified across different types of fixed income securities in Australia and aroundthe world. The securities are predominately investment grade and typically longer dated. The


average term to maturity is normally in the range of three to six years. Foreign currency exposureswill generally be substantially hedged to the Australian dollar. As a result of capital restructuresof bond issuers, the Fund may have an incidental exposure to shares from time to time.

you want to invest in a defensive portfolio that’s actively managed and diversified across investmentmanagers, countries, bond sectors and securities.


3-5 yearsMinimum suggested timeto invest

50% Australian fixed incomeBenchmark asset allocation

50% Global fixed income

Bloomberg AusBond Composite Bond Index (All Maturities) Benchmark

Barclays Global Aggregate Bond Index (hedged into Australian dollars)












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Diversified Property Securities

To outperform the composite benchmark of 75% S&P/ASX 300 A-REIT Accumulation Index and25% FTSE EPRA/NAREIT Global Developed Index (hedged into Australian Dollars) before fees andtaxes over rolling 5 year periods.


The fund invests primarily in Australian property securities, including listed REITs and companiesacross most major listed property sectors. It does not normally invest in direct property, but mayhave some exposure to property securities listed outside of Australia from time to time.


you want to invest in an actively managed property securities portfolio that invests in Australia,with some global exposure, and diversifies across property sectors and REITs.



75% Australian listed propertyBenchmark asset allocation

25% Global listed property

Composite benchmark of 75% S&P/ASX 300 A-REIT Accumulation Index and Benchmark

25% FTSE EPRA/NAREIT Global Developed Index (hedged into Australian Dollars)

7 - Very high, greater than 6 years in 20 yearsStandard Risk Measure(Estimated number of negativeannual returns)











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Australian Property Securities – Index

To track the S&P/ASX 300 A-REIT Accumulation Index before fees and taxes over rolling 5 yearperiods.


The fund invests primarily in Australian listed property securities, including listed Real EstateInvestment Trusts and companies across most major listed property sectors. It does not normally


invest in direct property, and may have some exposure to property securities listed outside ofAustralia from time to time. The fund may invest in securities that have been removed, or areexpected to be included in the index.

you want to invest in a passively managed property securities fund that invests in Australia, withsome global exposure and diversified across property sectors and REITs.




S&P/ASX 300 A-REIT Accumulation IndexBenchmark












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Australian Shares

To outperform the S&P/ASX 300 Accumulation Index before fees and taxes over rolling 5 yearperiods.


The fund invests primarily in companies listed (or expected to be listed) on the Australian SecuritiesExchange, and is typically diversified across major listed groups. The Trust may have small exposureto companies listed outside of Australia from time to time.


you want to invest in an actively managed Australian share portfolio that’s diversified acrossinvestment managers, industries and companies.



100% Australian sharesBenchmark asset allocation

S&P/ASX 300 Accumulation IndexBenchmark

7 - Very High, greater than 6 years in 20 yearsStandard Risk Measure(Estimated number of negativeannual returns)











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Australian Shares - Index

To track the S&P/ASX 300 Accumulation Index over rolling 5 years before investment fees andtaxes.


The fund invests primarily in companies listed on the Australian Securities Exchange (and otherregulated exchanges), and is typically diversified across major listed industry groups. It may have


a small exposure to companies listed outside of Australia from time to time. The fund may investin securities that have been removed, or are expected to be included in the index.

you want to invest in an Australian share fund that’s diversified across investment managers,industries and companies.





7- Very high, greater than 6 years in 20 yearsStandard Risk Measure(Estimated number of negativeannual returns)











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International Shares

To outperform the MSCI All Country World Index (net dividends reinvested) before fees and taxesover rolling 5 year periods.


The fund invests primarily in companies listed (or expected to be listed) on share markets anywherearound the world, and is typically diversified across major listed industry groups. Foreign currencyexposures will generally not be hedged to the Australian dollar.



you want to invest in an actively managed global share portfolio that's diversified acrossinvestment managers, countries (developed and emerging), industries and companies.you're comfortable having foreign currency exposure.


100% Global sharesBenchmark asset allocation

MSCI All Country World Index (net dividends reinvested)Benchmark












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International Shares - Index

To track the MSCI World Index (ex Aust, net dividends reinvested) before fees and taxes overrolling 5 year periods.


The fund invests primarily in companies listed on share markets anywhere around the world, andis typically diversified across major listed industry groups. The fund may invest in securities thathave been removed, or are expected to be included in the index.


Foreign currency exposures will generally not be hedged to the Australian dollar.


you want to invest in a global share fund that's diversified across investment managers,industries and companies. you're comfortable having foreign currency exposure.



MSCI World Index (ex Aust, net dividends reinvested)Benchmark












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International Shares - Index (hedged)

To track the MSCI World Index (ex Aust, net dividends reinvested) before fees and taxes overrolling 5 year periods.


The fund invests primarily in companies listed (or expected to be listed) on share markets anywherearound the world, and is typically diversified across major listed industry groups. The fund mayinvest in securities that have been removed, or are expected to be included in the index.


Foreign currency exposures will generally be substantially hedged to the Australian dollar.


you want to invest in a global share fund that's diversified across investment managers,industries and companies.you don't want foreign currency exposure.


100% Global shares (hedged)Benchmark asset allocation

MSCI World Index (ex Aust, net dividends reinvested)Benchmark












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Cautious - Index Plus


The fund has an approximately equal exposure to growth and defensive assets. The allocationsto these assets are actively managed within defined ranges, in accordance with our changing viewof potential risks and opportunities in investment markets.


The fund is broadly diversified across mainstream asset classes. It uses mainly passive investmentmanagers for growth assets and active managers for defensive assets. These managers invest inmany companies and securities in Australia and overseas.


you want a diversified fund that has similar weightings to defensive and growth assets you want to rely largely on the market for returnsyou want some long-term capital growth, andyou understand that there can be moderate to large fluctuations in the value of your investment.




The benchmark asset allocationand range may change overtime. The most up to dateinformation is available bylogging intoplum.com.au












1 This amount reduces the net return on the investment option. Please refer to the PDS and Fee Brochure for further informationabout these fees and costs, including how they are calculated.

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2 The estimated Gross transaction cost for the financial year to 30 June 2017 is 0.20% pa. Any difference between this amountand the Net transaction cost in the table above is due to amounts recovered by a buy/sell spread or amounts included in theICR.

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Moderate - Index Plus


The fund has a strong bias to growth and some exposure to defensive assets. The allocations tothese assets are actively managed within defined ranges, in accordance with our changing viewof potential risks and opportunities in investment markets.




you want a diversified fund that invests mainly in growth assetsyou want to rely largely on the market for returnsyou want long-term capital growth, andyou understand and accept that there can be large fluctuations in the value of your investment.




The benchmark asset allocationand range may change overtime. The most up to dateinformation is available atplum.com.au












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Assertive - Index Plus


The fund invests primarily in growth assets with a small exposure to defensive assets. The allocationsto these assets are actively managed within defined ranges, in accordance with our changing viewof potential risks and opportunities in investment markets.




you want a diversified fund that invests predominately in growth assetsyou want to rely largely on the market for returnsyou want long-term capital growth, andyou understand that there can be large fluctuations in the value of your investment.



The portfolio will be managedwithin these ranges.The benchmark asset allocationand range may change overtime. The most up to dateinformation is available atplum.com.au











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Path three- specialist choice

Australian Fixed Interest

To outperform the Bloomberg AusBond Composite Bond Index (All Maturities) before fees andtaxes over rolling 3 year periods.


The fund invests predominately in Australian fixed income and includes investments in creditsecurities sovereign bonds and cash. The securities are predominately investment grade andtypically longer dated.


you want to invest in a defensive fund that’s actively managed and diversified across investmentmanagers, bond sectors and securities


3-5 yearsMinimum suggested timeto invest

100% Australian fixed incomeBenchmark asset allocation

Bloomberg AusBond Composite Bond Index (All Maturities) Benchmark












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International Fixed Interest

To outperform the Barclays Global Aggregate Index (hedged into Australian dollars) before feesand taxes over rolling 3 year periods.


This fund is designed to deliver broad exposure to international fixed income markets. Fixedincome refers to securities that have a relatively stable flow of income. Fixed income securities


that deliver variable income like inflation-linked bonds. Foreign currency exposures will generallybe substantially hedged to the Australian dollar.


you want to invest in a portfolio that's actively managed and diversified across global fixedincome securities, bond sectors and countries.you don't want foreign currency exposure.

3 - 5 yearsMinimum suggested timeto invest

100% Global fixed incomeBenchmark asset allocation

Barclays Global Aggregate Bond Index (hedged into Australian dollars)Benchmark

3 - Low to medium, between 1 and 2 years in 20 yearsStandard Risk Measure(Estimated number of negativeannual returns)











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Australian Property Securities

To outperform the S&P/ASX 300 A-REIT Accumulation Index before fees and taxes over rolling 5year periods.


The fund is diversified across a variety of property sectors including commercial, retail and industrialsectors predominantly in the Australian market.


Investing in listed property securities provide a higher level of liquidity than investing directly inproperty.

you want to invest in an active Australian property securities fund.The investment option may besuited to you if ...



S&P/ASX 300 A-REIT Accumulation IndexBenchmark












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Australian Shares - Small Companies

To outperform the S&P/ASX Small Ordinaries Index before fees and taxes over rolling 5 yearperiods.


A small companies fund invests only in companies with a small market capitalisation. In theAustralian share market, this represents any stock listed outside the top 100 shares on the AustralianStock Exchange (ASX)


you want to invest in a smaller companies Australian shares fund.The investment option may besuited to you if ...



S&P/ASX Small Ordinaries IndexBenchmark












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Australian Shares - Ethical

To outperform the S&P/ASX 300 Accumulation Index over rolling 5 year periods.Investment objective

Ethical investing takes into account attributes other than solely the financial return potential ofparticular investments in the Australian market. An ethical investment policy may include, for


example, a decision to avoid certain industries or to positively favour investing in other industriesseen as more ethical or socially responsible.

you want to invest in an Australian shares fund that invests in socially responsible companies.The investment option may besuited to you if ...















The investment manager currently selected to manage the Australian Shares - Ethical option makes decisions about thecompanies it invests in using two main steps:

Ethical ExclusionsThey don't invest in companies that derive a material proportion of their revenue from the manufacturer or sale of alcohol ortobacco, the operation of gambling facilities or the manufacture of gambling equipment, uranium extraction or the manufactureof weapons or armaments.

SRI ScreeningCompanies remaining after the ethical exclusions are then subject to Socially Responsible Investing (SRI) screening to evaluatehow their business practices impact society and the environment. The SRI screening involves three steps:

1. Negative screens: Companies are rated on their positive environmental or social impacts and practices in relation to anumber of criteria including human rights, labour standards, the environment, corporate governance, animal rights andgenetically modified organisms.

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2. Positive screens: Companies are rated on their positive environmental or social impacts and practices in relation to a numberof criteria including renewable energy, waste (direct and downstream), corporate governance, use of quality andenvironmental management systems, and employee health and safety.

3. Universe inclusion: Scores from all negative and positive screens are then combined. Companies that score positively becomeallowable investments while companies with negative scores are excluded.

If the manager becomes aware that the fund is invested in a company that no longer meets the screen standards, the investmentwill be sold as soon as practicable in an orderly manner.

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International Shares - Neutral

To outperform the MSCI All Country World Index (net dividends reinvested) before fees and taxesover rolling 5 year periods.


A neutral fund is one which has no specific investmentstyle bias. The investment manager aimsto produce competitive returns through periods characterised by value and growth stylemomentums. A neutral-style fund is also known as a core-style fund. This fund invests in stockslisted on global stock exchanges.


Foreign currency exposures will generally not be hedged to Australian dollars.


you want to invest in an actively managed global share portfolio that's diversified acrossinvestment managers, countries (developed and emerging), industries and companies. you're comfortable having foreign currency exposure.



MSCI All Country World Index (net dividends reinvested)Benchmark












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International Shares - Emerging Markets

To outperform the MSCI Emerging Markets Free Index (net dividends reinvested) before fees andtaxes over rolling 5 year periods.


An emerging markets fund invests in countries that are considered emerging markets, such asRussia, Brazil, China, India, South Korea and Thailand. They generally represent a higher risk to


members. This fund invests in stocks listed on the stock exchanges of countries classified asemerging markets. Foreign currency exposures will generally not be hedged to Australian dollars.


you want to invest in an actively managed, global share portfolio that’s diversified acrossinvestment managers, countries, industries and companies with a focus on investing in emergingmarkets.you’re comfortable having foreign currency exposure.



MSCI Emerging Markets Index (net dividends reinvested)Benchmark










0.00%paEstimated Property operatingcosts1


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Diversified Shares - Geared

To provide growth over the long-term through a portfolio of growth assets, which focuses onAustralian and global shares. The portfolio will increase the amount of capital invested throughthe use of borrowing (with an effective exposure to growth assets of 130 per cent).


A geared growth fund increases the exposure to growth assets by borrowing against the equityheld in the pool of assets. Gearing increases an investor’s overall investment exposure and willlead to increased volatility and the magnification of both positive and negative returns.


This fund predominantly invests in Australian and international growth shares.


you want a portfolio focussed on long-term capital growth.you want to gear a portfolio of growth assets but don't want the burden of obtaining andmanaging your own loan.you expect growth in the assets' value to exceed the costs of gearing.you're comfortable with the risks of gearing including extra volatility and increased risk ofcapital loss.




The benchmark asset allocationand range may change overtime. The most up to dateinformation is available atplum.com.au


MSCI All Countries World Index (net dividends)

MSCI World Index (net dividends reinvested, hedged into Australian dollars)










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Australian Shares - Income

Aims to deliver a growing tax advantaged income stream from a portfolio with a focus on AustralianIndustrial shares that have the potential to provide future growth in dividends.


This fund focuses on achieving a growing income stream by investing in Australian shares. Itsstrategy helps reduce transaction costs and provides tax effective returns to members. This fundinvests in shares listed on the Australian Stock Exchange (ASX).


you want to invest in shares in Australian companies that are expected to deliver a growingdividend stream over time.




N/ABenchmark












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For more information call theTrustee from anywhere in Australiaon 1300 557 586 or contact yourfinancial adviser.

Postal address

Plum SuperGPO Box 63Melbourne Vic 3001

Registered office

Ground Floor, MLC Building105-153 Miller StreetNorth Sydney NSW 2060

plum.com.au

JANA Investment Advisers Pty Ltd ABN 97 006 717 568 AFSL 230693 and NAB Asset Management Services Limited ABN 38 055638 474 AFSL 230687 have given written consent to be named and quoted in the PDS and this Investment Menu, and to theinclusion of statements made by them. As at the date of the PDS, these consents have not been withdrawn. NULIS Nominees(Australia) Limited ABN 80 008 515 633 AFSL 236465. Part of the National Australia Bank Group of Companies. An investmentwith NULIS Nominees (Australia) Limited is not a deposit or liability of, and is not guaranteed by National Australia Bank LimitedABN 12 004 044 937 AFSL 230686 (NAB). NAB does not guarantee or otherwise accept any liability in respect of this product.OBJA117790-0917

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