March 2017

1. March 2017 Changes to Australian shares strategies in MLC’s multi-asset portfolios This material is not for circulation to retail investors.

2. Important information This information is provided by MLC Investments Limited (ABN 30 002 641 661 AFSL 230705) as Responsible Entity and NULIS Nominees (Australia) Limited (ABN 80 008 515 633, AFSL 236465) as trustee of the MLC MasterKey and Fundamentals Super and Pension and MLC MasterKey Business Super products which are a part of the MLC Super Fund (ABN 70 732 426 024 (together “MLC” or “we”), all members of the National Australia Bank Limited (ABN 12 004 044 4397, AFSL 230 686) group of companies, 105–153 Miller Street, North Sydney 2060. An investment in any product offered by a member company of the National Australia Bank group of companies does not represent a deposit with or a liability of the National Australia Bank Limited (ABN 12 004 044 937) or its subsidiaries. This presentation has been prepared for licensed financial advisers only. This document must not be distributed to “retail clients” (as defined in the Corporations Act 2001 (Cth)) or any other persons.  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. Investors should obtain a Product Disclosure Statement or other disclosure document relating to any financial product which is issued by MLC, and consider it before making any decision about whether to acquire or continue to hold the product. A copy of the Product Disclosure Statement or other disclosure document is available upon request by phoning the MLC call centre on 132 652 or on our website at mlc.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. Any projection or other forward looking statement (‘Projection’) in this document is provided for information purposes only. No representation is made as to the accuracy or reasonableness of any such Projection or that it will be met. Actual events may vary materially. MLC relies on third parties to provide certain information and are not responsible for its accuracy. MLC is not liable for any loss arising from any person relying on information provided by third parties. While MLC has taken all reasonable care in producing this communication, subsequent changes in circumstances may occur and impact on its accuracy. The investment managers are current as at the date this communication was prepared. Investment managers are regularly reviewed and may be appointed or removed at any time without prior notice to you. The funds affected by these changes The following funds are affected by the changes to the MLC multi-asset portfolios’ strategies. These funds appear on MLC’s platforms, in addition to a number of external platforms: MySuper MLC Horizon 2 Capital Stable Portfolio MLC Index Plus Conservative Growth Portfolio MLC Wholesale Horizon 3 Conservative Growth Portfolio MLC Horizon 3 Conservative Growth PortfolioMLC Index Plus Balanced Portfolio MLC Wholesale Horizon 4 Balanced Portfolio MLC Horizon 4 Balanced Portfolio MLC Index Plus Growth Portfolio MLC Wholesale Horizon 5 Growth Portfolio MLC Horizon 5 Growth Portfolio MLC Wholesale Horizon 6 Share Portfolio MLC Horizon 6 Share Portfolio MLC Wholesale Horizon 7 Accelerated Growth Portfolio MLC Horizon 7 Accelerated Growth Portfolio

3. What’s changed? • Passive Australian shares mandates have been moved to quantitative, enhanced index approaches: • In MLC Index Plus we've replaced Vanguard’s Australian shares passive mandate with Redpoint and BlackRock’s quantitative, enhanced index approaches. • In MLC Horizon and MySuper portfolios we've altered Redpoint’s passive Australian shares mandate to their quantitative, enhanced index approach. BlackRock is already a manager in these portfolios.

4. Why we’re making these changes • We actively manage our portfolios and work constantly to improve them. • We believe we can slightly improve the return potential of our multi-asset portfolios by replacing passive Australian shares mandates with approaches that aim to outperform the share market index. • Our two quantitative-based investment managers, Redpoint and BlackRock, provide our portfolios with diversity of investment processes and insights, while reducing exposure to any manager-specific risks. • Both managers have low risk approaches, relative to the market. • These managers systematically analyse companies using quantitative data techniques to outperform the share market index. How may clients benefit? • Increased diversification through the addition of another manager. • Slightly improved return potential for our multi-asset portfolios.

5. Australian shares manager exposures • We tailor exposures to Australian shares managers and approaches based on the objectives of the portfolio. Source: JANA Corporate Investment Services Limited.

6. Who are the managers? • Redpoint manages more than $7 billion in assets (at 31/01/17). • Redpoint is a boutique partner of NAB Asset Management. • We’ve been monitoring Redpoint’s additional ‘enhanced index’ capability since we appointed them as a passive index manager three years ago. • We now have confidence in Redpoint’s enhanced index capability to use this low ‘active’ risk, higher return-seeking approach to select Australian companies for our portfolios. • Redpoint’s investment management approach is dynamic, applying a range of strategies to enhance returns by taking small positions away from the benchmark. • Redpoint’s low turnover, low cost approach helps reduce the impact of transaction costs and taxation.

7. Who are the managers? • BlackRock has used its quantitative approach to manage MLC portfolios, since their appointment a year ago. • BlackRock manages more than $7 trillion in assets across the world (at 31/12/16). • BlackRock takes a quantitatively-based, active approach to investing that systematises fundamental stock selection. They look for companies that: • are relatively cheap eg compared to other companies in the industry sector • have higher earnings quality eg sustainable, cash-based earnings • positive earnings direction • have positive market signals eg fluctuations in demand can create liquidity and result in outperformance. • Each day BlackRock analyses the latest data for every company in the index. They then take small overweight positions in the companies that have a better overall outlook, and small underweights where the outlook is not so good. • The large number of small active positions means large moves in a single stock have less effect on the overall return. It also helps minimise the risk taken, or deviation from the passive index benchmark, while aiming to outperform.

8. Are there fee implications? • There’s no impact on fees from these changes for the following funds because they have fixed investment fees: • MLC Wholesale Horizon 3 to 7 portfolios in the MLC Investment Trust and MLC MasterKey Unit Trust • MLC Index Plus portfolios • MLC MySuper • There’s a negligible impact on fees from these changes for the following funds because they have variable investment fees: • MLC Horizon 2 to 7 portfolios available in MLC MasterKey superannuation and pension platforms • Investment fees are available in the Fund Profile Tool on mlc.com.auandmlcinvestmenttrust.com.au • For further information regarding fees please refer to the product PDS.

9. What’s the communication plan?