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Plum SuperPlum Personal Plan Investment Menu

Preparation date 1 July 2017

Issued by the Trustee NULIS Nominees (Australia) Limited ABN 80 008 515 633 AFSL 236465

The Fund MLC Super Fund ABN 70 732 426 024

This menu gives you information about the investments available through Plum Super.

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

Contents

The information in this document forms part of the Product Disclosure Statement (PDS) dated 1 July 2017.

Together with the Your Superannuation Explained guide and Fee Definitions Flyer, these documents should be considered before making a final decision to invest. They are available when you log in to plum.com.au

Investing with us 4

Things to consider before you invest 5

Choosing your path 13

Your investment options 14

Other information 52

Investing with us

We provide a broad range of investment options and you can choose any combination of these to really put your investment plan into action.

Our Investment Menu has been developed to suit all levels of investment knowledge and experience. You can customise your investment mix by choosing from a range of diversified or single-sector investment options with different management approaches.

JANAWe’ve appointed JANA to advise us on our Investment Menu. It is one of the leading investment consultants in Australia with over A$400 billion funds under advice and A$80 billion funds under management (at 31 December 2016). JANA is a wholly-owned subsidiary of National Australia Bank (NAB).

JANA employs experts in putting together portfolios for people. They structure portfolios to deliver more reliable returns in many potential market environments. And, as their view of world markets changes, they evolve the portfolios to manage new risks and capture new opportunities.

They have both internal investment management expertise, and the experience and resources to find some of the world’s best investment managers.

And they provide regular insight and updates on the performance of the investment options.

Selecting investment optionsOur Investment Menu is regularly reviewed by a committee of experienced JANA investment professionals.

A number of factors are taken into consideration when investment options are selected for the Investment Menu. These include the performance of the investment option, the investment objective, fees and how easy the investment option is to administer. The selection of investment options issued by the NAB Group is done on an arm’s-length basis in line with the Trustee’s Conflicts Management Policy.

Investor Profile Tools

For greater insight into how your money is managed, including where your money is invested, how your investments are performing and the investment fees and costs charged, log in to plum.com.au

Things to consider before you invest

Types of assetsAsset classes are generally grouped as either defensive or growth or alternatives (which can be both defensive and growth) because of 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 included because of their potential to produce higher returns than cash in the long term. However, all types of assets may deliver low or negative returns in some market conditions.

The main differences between defensive and growth assets are:

Defensive Growth Alternatives

Assets classes included Cash and fixed income securities

Shares and property securities

A very diverse group of assets and strategies. Some examples include private assets and hedge funds. Because alternatives are diverse, they may be included in defensive or growth assets.

How they are generally used

To stabilise returns To provide long-term capital growth and income

To provide returns that aren’t strongly linked with those of mainstream assets. They may be included to stabilise returns or to included to stabilise returns or to provide long-term capital growth.

Risk and return characteristics

Expected to produce lower returns, and be less volatile, than growth assets over the long term

Expected to produce higher returns , and be more volatile, than defensive assets over the long term

Expected to produce returns and volatility that aren’t strongly linked to mainstream assets such as shares.

Asset classesAsset classes are groups of similar types of investments. Each class has its risks and benefits, and goes through its own market cycle.

A market cycle can take a couple of years or many years as prices rise, peak, fall and then bottom out. Through investing for the long term, at least through a whole market cycle, you can improve your chance of benefiting from a period of strong returns and growth to potentially offset periods of weakness.

Market cycles are different every time so you need to be prepared for all sorts of return outcomes when investing.

Here are the main asset class risks and benefits.

Cash

Cash is generally a low risk investment.

Things to consider:

• Cash is often included in a portfolio to meet liquidity needs and to stabilise returns.

• The return is typically interest which may also be referred to as yield.

• Cash is usually the least volatile type of investment. It also tends to have the lowest return over a market cycle.

• The market value tends not to change. However, when you invest in cash, you’re effectively lending money to businesses or governments that could default on the loans, resulting in a loss on your investment.

• Many cash funds invest in fixed income securities that have a very short term until maturity.

Fixed income (including term deposits)

When investing in fixed income, you’re effectively lending money to businesses or governments. Bonds are a common form of fixed income securities.

Things to consider:

• Fixed income securities are usually included in a portfolio for their relatively stable return characteristics.

• Returns typically comprise interest income and changes in the market value of the security. Interest rates and values tend to move in opposite directions. therefore when interest rates rise, market values can fall and when interest rates fall, market values can rise.

• While income from fixed income securities usually stabilises returns, falls in their market value may result in a loss on your investment. Market values may fall due to factors such as an increase in rates or concern about defaults on loans.

• There are different types of fixed income securities and these will have different returns and volatility.

• Fixed income securities denominated in foreign currencies will be exposed to movements in exchange rates.

Property

Investing in property will give your portfolio exposure to listed property securities in Australia and around the world. These are referred to as Real Estate Investment Trusts (REITs).

Things to consider:

• Property securities are usually included in a portfolio for their growth characteristics.

• Returns typically comprise distribution income and changes in REIT values.

• Returns are driven by many factors including the economic environment in various countries.

• Property securities can be volatile.

• Investing outside Australia means you’re exposed to movements in exchange rates.

• Australian property securities are dominated by only a few REITs and provide limited diversification.


Australian shares

This asset class consists of investments in companies listed on the Australian Securities Exchange (and other regulated exchanges). Shares are also known as equities.

Things to consider:

• Australian shares can be volatile and are usually included in a portfolio for their growth characteristics.

• The Australian Share market is less diversified than the global market because it is dominated by a few industries such as Financials and Resources.

• Returns usually comprise dividend income and changes in share prices.

• Dividends may have tax credits attached to them (known as franking or imputation credits).

• Returns are driven by many factors including the performance of the Australian economy.

Global shares

Global shares consist of investments in companies listed on securities exchanges around the world.

Things to consider:

• Global shares can be volatile and are usually included in a portfolio for their growth characteristics.

• The number of potential investments is far greater than in Australian shares.

• Returns usually comprise dividend income and changes in share prices.

• Returns are driven by many factors including the economic environment in various countries.

• When you invest globally, you’re less exposed to the risks associated with investing in just one economy.

• Investing outside Australia means you’re exposed to movements in exchange rate.

Private assets

Investing in private markets gives your portfolio exposure to assets that aren’t traded on listed exchanges. An example of this is an investment in a privately owned business.

Things to consider:

• Private assets are alternative assets that are usually included in a portfolio for their growth characteristics.

• Returns are driven by many factors including the economic environment in different countries.

• Private assets can be volatile and can take years to earn a positive return.

• Private assets may be included in a portfolio to provide higher returns than share markets in the long run, and to increase diversification.

• Private assets are illiquid which makes them difficult to buy or sell.

• To access private assets you generally need to invest in a managed fund that invests in private assets.

• Because private assets aren’t listed on an exchange, determining their value for a fund’s unit price can be difficult and may involve a considerable time lag.

Alternatives

These are a very diverse group of assets. Some examples include Private assets, hedge funds, real return strategies, infrastructure, and gold.

Things to consider:

• Because alternatives are diverse, they may be included in a portfolio for their defensive or growth characteristics.

• Alternative investments are usually included in portfolios to increase diversification and provide returns that aren’t strongly linked with the performance of mainstream assets.

• The investment manager believes that return and diversification benefits of including alternative investment sin a portfolio are generally expected to outweigh the higher costs that tend to be associated with them.

• Some alternative strategies are managed to deliver a predetermined outcome. For example, real return strategies aim to produce returns that exceed increases in the costs of living (i.e. inflation).

• For some alternatives, such as hedged funds, it can be less obvious what assets you’re investing in than with other asset classes.

• Some alternative investments are illiquid, which makes them difficult to buy or sell.

• To access alternative investments you generally need to invest in a managed fund that, in turn, invests in alternatives.

• Because most alternative investments aren’t listed on an exchange, determining their value for a fund’s unit price can be difficult and may involve a considerable time lag.

• Alternatives invested outside of Australia may expose your portfolio to exchange rate.

Investment approachesInvestment managers have different approaches to selecting investments. There are generally two broad approaches: passive and active management.

Passive management

Passive, or index managers, choose investments to form a portfolio which will deliver a return that closely tracks a market benchmark (or index). Passive managers tend to have lower costs because they don’t require extensive resources to select investments.

Active management

Active managers select investments they believe, based on research, will perform better than a market benchmark over the long term.

They buy or sell investments when their market outlook alters or their investment insights change.

The degree of active management can vary. Active managers may deliver returns quite different to the benchmark.

Active managers have different investment styles and these affect their returns. Some common investment styles are:

• Bottom-up – focuses on forecasting returns for individual companies, rather than the market as a whole.

• Top-down – focuses on forecasting broad macroeconomic trends and their effect on the market, rather than returns for individual companies.

• Growth – focuses on companies they expect will have strong earnings growth.

• Value – focuses on companies they believe are undervalued (their price doesn’t reflect earning potential).

• Core – aims to produce competitive returns in all periods.

Ethical investingWe have an Environment, Social and Governance Risk Management Policy (ESG Policy), which applies to MySuper. The ESG Policy, available on plum.com.au, outlines the processes in place to assess ESG factors for MySuper, including consideration of ESG factors in investment decisions; monitoring of investment managers to assess how they identify, evaluate and manage ESG factors within their portfolios on an ongoing basis; and maintaining a research program in relation to ESG themes and trends.

The ESG Policy does not require any specific methodology in assessing ESG factors, nor does it require any specific factor to be taken into account.

For other investment options, we expect the active investment managers to consider any material effect ESG factors may have on the returns from their investments, however we don’t require them to.


Gearing

Gearing can be achieved by using loans (borrowing to invest), or through investing in certain derivatives, such as futures.

Gearing magnifies exposure to potential gains and losses of an investment. As a result, you can expect larger fluctuations (both up and down) in the value of your investment compared to the same investment which is not geared.

Investment managers can take different approaches to gearing. Some change the gearing level to suit different market conditions. Others maintain a target level of gearing.

It’s important to understand both the potential risks of gearing, as well as its potential benefits. When asset values are rising by more than the costs of gearing, the returns will generally be higher than if the investment wasn’t geared. When asset values are falling, gearing can multiply the capital loss.

If the fall is dramatic there can be even more implications for geared investments. For example, the lender requires the gearing level to be maintained below a predetermined limit. If asset values fall dramatically, the gearing level may rise above the limit, forcing assets to be sold when values may be continuing to fall.

In turn, this could lead to more assets having to be sold and more losses realised. Withdrawals (and applications) may be suspended in such circumstances, preventing you from accessing your investments at a time when values are continuing to fall.

Investment techniquesInvestment managers may use different investment techniques that can change the value of an investment. Some of the main investment techniques are explained below.

Derivatives

Derivatives may be used in any of the investment options. Derivatives are contracts that have a value derived from another source such as an asset, market index or interest rate. There are many types of derivatives including swaps, options and futures. They are a common tool used to manage risk or improve returns.

Some derivatives allow investment managers to earn large returns from small movements in the underlying asset’s price. However, they can lose large amounts if the price movement in the underlying asset is unfavourable.

Investment managers, have derivatives policies which outline how derivatives are managed.

Currency management

If an investment manager invests in assets in other countries, their returns in Australian dollars will be affected by movements in exchange rates (as well as changes in the value of the assets).

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

The exposure to foreign currency can increase diversification in a portfolio.

Although, this is an extreme example, significant market falls have occurred in the past. Recovering from such falls can take many years and the geared investment’s unit price may not return to its previous high.

Other circumstances (such as the lender requiring the loan to be repaid for other reasons) may also prevent a geared investment from being managed as planned, leading to losses.

You need to be prepared for all types of environments and understand their impact on your geared investment.

Short selling

Short selling is used by an investment manager when it has a view that an asset’s price will fall. The manager borrows the asset from a lender, usually a broker, and sells it with the intention of buying it back at a lower price. If all goes to plan, a profit is made. The key risk of short selling is that, if the price of the asset increases, the loss could be significant.

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

Term used in profiles Explanation

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

How the investment option is managed Describes how the investment option is structured and managed.

The investment option may be suited to you if …

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

Minimum suggested time to invest Investment managers suggest minimum time frames for each investment option. Investing for the minimum 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 market cycle is different. Your personal circumstances will determine how long you hold an investment.

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

Benchmark Benchmarks are usually market indices that are publicly available. Shares are often benchmarked against a share market index and fixed interest against a fixed interest market index. Other benchmarks can be based on particular industries (eg mining), company size or the wider market (eg S&P/ASX200 or the MSCI World Index).

Benchmarks for multi-asset portfolios may be:

• made up of a combination of market indices weighted according to the asset allocation (commonly known as composite benchmarks), or

• a single measure, such as inflation. A common index of inflation, which is the rise in the cost of living, 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 deducted, and

• the period over which the return should be measured, and

• that an investment option is unlikely to achieve its objectives in all market environments.


Term used in profiles Explanation

Estimated number of negative annual returns over any 20 year period (Standard Risk Measure)

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

• detail the size a negative return could be or the potential for a positive return to be less than a member requires to meet their objectives

• capture the risk of the investment manager not meeting its investment objective

• take into account the impact of administration fees and tax which would increase the change of a negative.

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

Risk band Risk label Estimated number of negative returns in any 20-year period

1 Very low Less than 0.5

2 Low 0.5 to less than 1

3 Low to medium 1 to less than 2

4 Medium 2 to less than 3

5 Medium to high 3 to less than 4

6 High 4 to less than 6

7 Very high 6 or greater

Fees and costs Shows the costs of investing in each investment option, including investment fees, buy-sell spreads, and, where applicable, performance fees and indirect costs.

MySuperMySuper is a diversified investment option designed to meet the needs of most members of the Fund. MySuper is broadly diversified within asset classes, across asset classes and across underlying investment managers.

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

Path one – simple choice (and Other investment options)There is a range of diversified investment options in Path one so you can select an expected risk and return profile to meet your needs.

At the lower end of the risk and return potential is Pre-mixed Conservative option, which invests mainly in defensive assets such as fixed interest and cash. At the higher end of the risk and return potential is Pre-mixed Aggressive option, which invests mainly in growth assets such as shares.

This comprehensive series of investment options means, wherever you are in life you can choose an investment solution to suit you.

These options are actively managed and broadly diversified within asset classes, across asset classes and across underlying investment managers.

Investing in Path one is an easy way to gain access to sophisticated investments. This way you can implement your financial plan with confidence.

Choosing your path

Path two – flexible choiceThe investment options in Path two mainly consist of single-sector investment options plus some diversified options. Single-sector investment options cater for people looking for a complete asset class solution.

Some options in this path are managed on an active basis while others follow a specific market index and aim to provide similar returns to the market.

We also offer the Cash Fund which invests in deposits with banks.

You should have some understanding of investments, including the difference between the main asset classes and whether you prefer an active or passive management approach before electing an investment option in this path.

Path three – specialist choiceWe recognise some members may want extra investment options. To help give you this choice, you can select from investment options in Path three which target specific asset class sectors or invest using a particular investment style.

You should have a strong understanding of investment risks before selecting an investment option in this path. We recommend you seek financial advice as greater investment experience is generally required for investing in this path.

You should carefully consider the risks of investing your entire account balance in a single-sector investment option and whether this represents adequate diversification. For more information, refer to the ‘Diversify to reduce volatility and other risks’ section of this Investment Menu.

MySuper

MySuper

Investment objective To outperform inflation, measured by the CPI, by 3% p.a. after investment fees and taxes, over any 10 year period.

How the investment option is managed

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


• you want long-term capital growth; and

• you understand and accept there can be moderate to high fluctuations in the value of your investment.

Minimum suggested time to invest

6 years

Asset allocation and ranges

The portfolio will be managed within these ranges.

The benchmark asset allocation and ranges may change over time. The most up to date information is available at plum.com.au.

Asset class Benchmark asset

allocation (%)

Ranges (%)

Cash 5%

Australian fixed income 11%

Global fixed income 7%

Alternatives and other (defensive)

7%

Total defensive assets 30% 15–45%

Australian shares 28%

Global shares (hedged) 8%

Global shares (unhedged) 17%

Property 5%

Global private assets (hedged)

5%

Alternatives and other (growth)

7%

Total growth assets 70% 55–85%

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

Estimated number of negative annual returns (Standard Risk Measure)

5 - Medium to high, between 3 and 4 years in 20 years

Indicative investment fee

Actual fees may be different to the estimates shown.

Investment fee (% pa) 0.46

Buy-sell spreads Entry/Exit (%) 0.05/0.05

Estimated indirect cost ratio (% pa)


0.09

Your investment options

Defensive assets

Growth assets

70%

%

Path one– simple choice

JANA and MLC are the investment managers of your Path one investment options.

JANA’s approach to investingJANA’s investment approach can be summarised as follows:

• JANA believes it is possible to reduce risk and outperform over the long term by taking advantage of occasional large divergences from fair value in investment markets.

• Through diligent hands-on research, it is possible to select managers capable of outperforming over the long term. While above-average ability in security selection is a prerequisite in most asset classes, managers must also exhibit a disciplined process and style and this should be reflected in the qualities and mindset of its personnel.

• To be of real value, research needs to be implemented with full commitment and not sit on the fence.

MLC’s approach to investing

For over 25 years, MLC have been designing portfolios to help investors achieve their goals.

The four key aspects of MLC’s investment approach are:

1. Portfolio design

MLC portfolios focus on what affects investor outcomes the most — asset allocation. Each asset class has its own risk and return characteristics. MLC allocate money between asset classes based on the following beliefs:

• Risk can’t be avoided but can be managed

To manage portfolio risk in different environments, MLC consider how economic and market conditions might unfold. Their investment experts then work out the combination of asset classes that they believe will achieve a portfolio’s objective in the changing conditions. This helps them prepare a portfolio for future market ups and downs.

• Risks and returns vary through time

MLC’s analysis of how economic and market conditions might develop shows them how the potential risks and returns of each asset class could change over the next three to seven years. With this information they can adjust a portfolio’s asset allocations to reduce the risk or improve the return potential of the portfolio.

• Diversification matters

Asset classes perform differently in different market conditions. Investing in many asset classes helps MLC smooth out the overall portfolio returns, as they can offset the ups and downs of each asset class.

2. Managing the portfolio

MLC portfolios have different investment objectives. That’s why their investment experts select a different mix of assets and investment managers for each. MLC’s investment managers may be specialist inhouse managers, external managers or a combination of both. They research hundreds of investment managers from around the world and select from the best for their portfolios. They then combine them in their portfolios so they complement each other. This multi-manager approach helps to reduce risk and deliver more consistent returns.

You can find out about MLC’s current investment managers in the Fund’s Annual Report on plum.com.au

3. Ongoing review

To make sure the portfolios are working hard for investors, MLC continuously review and actively manage them. They may adjust the asset allocation, investment strategies and managers. This is because their assessment of the future market environment may have altered or because they have found better ways to balance risk and return in the portfolios.

4. Portfolio implementation

MLC deliver better returns by avoiding unnecessary costs. They do this by carefully managing cash flows and changes in their portfolios. Their knowledge of domestic tax requirements means their portfolios are sensitive to the needs of Australian investors.


Pre-mixed Conservative

Investment objective To outperform the CPI + 2% pa after investment fees and taxes over rolling 5 year periods.


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


• 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 years





allocation (%)

Ranges (%)

Cash 14%

Fixed income 50%

Alternatives and others (defensive)

6%




Global shares 7%

Property 3%

Private assets 1%

Alternatives and others (growth)

7%




3 - Low to medium, between 1 and 2 years in 20 years






0.14

Diversified

Defensive assets

Growth assets

30%

%

Pre-mixed Cautious

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


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


• you want to invest in an approximately equal mix of defensive and growth assets.

• you want a portfolio with some long-term capital growth potential and can tolerate some changes in value.


5 years





allocation (%)

Ranges (%)

Cash 8%

Fixed income 36%


6%




Global shares 12%

Property 4%

Private assets 4%


7%




4 - Medium, between 2 and 3 years in 20 years






0.23

Defensive assets

Growth assets

50%

%


Pre-mixed Moderate





• 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 tolerate moderate to large changes in value.


6 years





allocation (%)

Ranges (%)

Cash 5%

Fixed income 18%


7%




Global shares 17%

Property 5%

Private assets 5%


7%










0.26

Defensive assets

Growth assets

70%

%

Pre-mixed Assertive



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


• 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 can tolerate moderate to large changes in value.


7 years





allocation (%)

Ranges (%)

Fixed income 8%

Alternatives and others (defensive)`

7%



Global shares (hedged) 11.5%

Global shares 22%

Property 5%

Private assets 5.5%


7%

Total growth assets 85% 65-95%



6 - High, between 4 and 6 years in 20 years






0.27

Defensive assets

Growth assets

85%

%


Pre-mixed Aggressive



Aims to invest wholly in growth assets, accepting high volatility to seek higher long-term returns.


• you want to invest in growth assets.

• you want a portfolio focussed on long-term capital growth potential and can tolerate large changes in value.


7 years





allocation (%)

Ranges (%)




Global shares 27%

Property 5%

Private assets 6%


2%










0.30

Growth assets

100%

JANA Conservative



This portfolio is designed to provide investors with a diversified portfolio that is weighted towards the traditionally more stable asset classes of cash and fixed interest.





3 years





allocation (%)

Ranges (%)

Cash 12%

Fixed income 49%


6%




Global shares 7%

Property 7%

Private assets 1%


6%


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








0.28

Diversified

Defensive assets

Growth assets

33%

%


JANA Cautious



This portfolio is designed to provide investors with a diversified portfolio that is equally mixed between the traditionally more stable asset classes of cash and fixed interest and those assets which have traditionally provided higher levels of overall return, namely property and shares.



• you want a portfolio with some long-term capital growth potential and can tolerate moderate changes in value.


5 years





allocation (%)

Ranges (%)

Cash 7%

Fixed income 34%


6%




Global shares 12%

Property 9%

Private assets 5%


6%










0.31

Defensive assets

Growth assets

53%

%

JANA Moderate



This portfolio is designed to provide investors with a diversified portfolio that is weighted towards the asset classes which have traditionally provided a higher level of overall return, namely property and shares, but also maintains a significant weighting to the traditionally more stable asset classes, namely cash and fixed interest.





6 years





allocation (%)

Ranges (%)

Cash 5%

Fixed income 15%


7%




Global shares 17%

Property 9%

Private assets 5%


6%

Total growth assets 73% 55– 85%









0.29

Defensive assets

Growth assets

73%

%


JANA Assertive



This portfolio is designed to provide investors with a diversified portfolio that is weighted towards the asset classes which have traditionally provided a higher level of overall return, namely property and shares.





7 years





allocation (%)

Ranges (%)

Fixed income 7%


7%




Global shares 21%

Property 9%

Private assets 6%


6%










0.30

Defensive assets

Growth assets

86%

%

JANA Aggressive



This portfolio is designed to provide investors with long-term growth through a diversified property and shares portfolio.





7 years





allocation (%)

Ranges (%)




Global shares 26%

Property 9%

Private assets 6%


3%










0.13

Growth assets

100%


MLC Conservative



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





3 years





allocation (%)

Ranges (%)

Cash 12%

Fixed income 49%


6%




Global shares 7%

Property 7%

Private assets 1%


6%










0.19

Diversified

Defensive assets

Growth assets

33%

%

MLC Cautious



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



• you want a portfolio with some long-term capital growth potential and can tolerate some changes in value.


5 years





allocation (%)

Ranges (%)

Cash 7%

Fixed income 34%


6%




Global shares 12%

Property 9%

Private assets 5%


6%










0.31

Defensive assets

Growth assets

53%

%


MLC Moderate








6 years





allocation (%)

Ranges (%)

Cash 5%

Fixed income 15%


7%




Global shares 17%

Property 9%

Private assets 5%


6%










0.33

Defensive assets

Growth assets

73%

%

MLC Assertive



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





7 years





allocation (%)

Ranges (%)

Fixed income 7%


7%




Global shares 21%

Property 9%

Private assets 6%


6%










0.33

Defensive assets

Growth assets

86%

%


MLC Aggressive



Aims to invest wholly in growth assets, accepting high volatility to seek higher long-term returns.





7 years





allocation (%)

Ranges (%)




Global shares 26%

Property 9%

Private assets 6%


3%










0.35

Growth assets

100%

Path two– flexible choice

Cash

Cash Fund

Investment objective To outperform the Reserve Bank of Australia’s Cash Rate Target over rolling 1 years before fees and taxes.


The Fund invests in deposits with banks (100% National Australia Bank as at 31 March 2017).


• you want to invest in a low risk cash portfolio.


No minimum

Asset allocation 100% Cash

Benchmark Reserve Bank of Australia’s Cash Rate Target


1 - Very low, less than 0.5 year in 20 years




Buy-sell spreads Entry/Exit (%) 0.00 / 0.00


n/a


Fixed Interest

Diversified Fixed Interest

Investment objective To outperform the composite benchmark of 50% Bloomberg AusBond Composite Bond (All Maturities) Index and 50% Barclays Global Aggregate Index (hedged into Australian dollars) over rolling 3 years before fees and taxes.


The fund is diversified across different types of fixed interest securities in Australia and around the 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 exposures will generally be substantially hedged to the Australian dollar. As a result of capital restructures of 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 investment managers, countries, bond sectors and securities.


3 – 5 years

Asset allocation 50% Australian fixed income

50% Global fixed income

Benchmark Bloomberg AusBond Composite Bond (All Maturities) Index Barclays Global Aggregate Bond Index (hedged into Australian dollars)








n/a

Property

Diversified Property Securities

Investment objective To outperform the composite benchmark of 75% S&P/ASX 300 A-REIT Accumulation Index and 25% FTSE EPRA/NAREIT Global Developed Index (hedged into Australian Dollars) over rolling 5 years before fees and taxes.


The fund invests primarily in Australian property securities, including listed REITs and companies across most major listed property sectors. It does not normally invest in direct property, but may have 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.


7 years

Asset allocation 75% Australian listed property

25% Global listed property

Benchmark S&P/ASX 300 A-REIT Accumulation Index

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


7 - Very high, greater than 6 years in 20 years






0.07


Australian Property Securities – Index

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


The fund invests primarily in Australian listed property securities, including listed Real Estate Investment Trusts and companies across most major listed property sectors. It does not normally invest in direct property, but may have some exposure to property securities listed outside of Australia from time to time. The fund may invest in securities that have been removed, or are expected to be included in the index.


You want to invest in a passively managed property securities portfolio that invests in Australia, with some global exposure and diversified across property sectors and REITs.


7 years










n/a

Australian Shares

Australian Shares

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


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


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


7 years

Asset allocation 100% Australian shares

Benchmark S&P/ASX 300 Accumulation Index








0.12


Australian Shares – Index

Investment objective To track the S&P/ASX 300 Accumulation Index over rolling 5 years before investment fees and taxes.


The fund invests primarily in companies listed on the Australian Securities Exchange (and other regulated 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 invest in 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 industries and companies.


7 years










n/a

International Shares


Investment objective To outperform the MSCI All Country World Index (net dividends reinvested) over rolling 5 years before fees and taxes.


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


• you want to invest in an actively managed global share portfolio that’s diversified across investment managers, countries (developed and emerging), industries and companies.

• you’re comfortable having foreign currency exposure.


7 years

Asset allocation 100% Global shares

Benchmark MSCI All Country World Index (net dividends reinvested)








0.04


International Shares – Index

Investment objective To track the MSCI World Index (ex Aust) Net Dividends Reinvested over rolling 5 years before investment fees and taxes.


The fund invests primarily in companies listed on share markets anywhere around the world, and is typically diversified across major listed industry groups. The fund may invest in securities that have 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 industries and companies.



7 years


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








n/a

International Shares – Index (hedged)

Investment objective To track the MSCI World Index (ex Aust) net dividends reinvested hedged into Australian dollars over rolling 5 years before investment fees and taxes.


The fund invests primarily in companies listed (or expected to be listed) on share markets anywhere around the world, and is typically diversified across major listed industry groups. The fund may invest 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 industries and companies.

• you don’t want foreign currency exposure.


7 years

Asset allocation 100% Global shares (hedged)

Benchmark MSCI World Index (ex Aust) net dividends reinvested hedged into Australian dollars.








n/a


Cautious – Index Plus

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


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

The fund is broadly diversified across mainstream asset classes. It uses mainly passive investment managers for growth assets and active managers for defensive assets. These managers invest in many 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 returns

• You want some long-term capital growth, and

• You understand that there can be moderate to large fluctuations in the value of your investment.


4 years





allocation (%)

Ranges (%)

Cash 6%




2%

Total defensive assets 51% 40-60%



Global shares 13%

Global listed property 3%


4%


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








n/a

Diversified

Defensive assets

Growth assets

49%

%


Moderate – Index Plus



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



• you want a diversified fund that invests mainly in growth assets

• you want to rely largely on the market for returns

• you want long-term capital growth, and

• you understand and accept that there can be large fluctuations in the value of your investment.


5 years





allocation (%)

Ranges (%)

Cash 3%




2%



Global shares (hedged) 16.5%

Global shares 16%



4%

Total growth assets 68.5% 60-80%









n/a

Defensive assets

Growth assets

68.5%

%

Assertive – Index Plus



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



• you want a diversified portfolio that invests predominately in growth assets

• you want to rely largely on the market for returns

• you want long-term capital growth, and

• you understand that there can be large fluctuations in the value of your investment.


6 years





allocation (%)

Ranges (%)

Cash 2%




1%

Total defensive assets 17% 5-25%



Global shares 23%











n/a

Defensive assets

Growth assets

79%

%


Australian Fixed Interest

Investment objective To outperform the Bloomberg AusBond Composite Bond (All Maturities) index over rolling 3 years before investment fees and taxes.


The fund invests predominately in Australian fixed interest and includes investments in credit securities sovereign bonds and cash. The securities are predominately investment grade and typically longer dated.


• You want to invest in a defensive fund that’s actively managed and diversified across investment managers, bond sectors and securities.


3 – 5 years

Asset allocation 100% Australian fixed income

Benchmark Bloomberg AusBond Composite Bond (All Maturities) Index






Buy-sell spreads Entry/Exit (%) 0.00 / 0.00


n/a

Path three– specialist choice

Fixed Interest

International Fixed Interest

Investment objective To outperform the Barclays Global Aggregate Bond Index (hedged into Australian dollars) over rolling 3 years before fees and taxes.


This fund is designed to deliver broad exposure to international fixed interest markets. Fixed interest refers to securities that have a relatively stable flow of income. Fixed interest securities that deliver variable income like inflation-linked bonds. Foreign currency exposures will generally be substantially hedged to the Australian dollar.


• you want to invest in a portfolio that’s actively managed and diversified across global fixed income securities, bond sectors and countries.

• you don’t want foreign currency exposure.


3 – 5 years

Asset allocation 100% Global fixed income

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








n/a

Property

Australian Property Securities

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


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

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


• you want to invest in an active Australian property securities fund.


7 years










n/a


Australian Shares

Australian Shares – Small companies

Investment objective To outperform the S&P/ASX Small Ordinaries Accumulation Index over rolling 5 years before fees and taxes.


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


• you want to invest in a smaller companies Australian shares fund.


7 years


Benchmark S&P/ASX Small Ordinaries Accumulation Index






Estimated Performance fee (% pa) 0.15

Total (% pa) 1.38



n/a


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

• Ethical Exclusions

They don’t invest in companies that derive a material proportion of their revenue from the manufacturer or sale of alcohol or tobacco, the operation of gambling facilities or the manufacture of gambling equipment, uranium extraction or the manufacture of weapons or armaments.

• SRI Screening

Companies remaining after the ethical exclusions are then subject

to SRI screening to evaluate how 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 a number of criteria including human rights, labour standards, the environment, corporate governance, animal rights and genetically modified organisms.

2. Positive screens: Companies are rated on their positive environmental or social impacts and practices in relation to a number of criteria including renewable energy, waste (direct

and downstream), corporate governance, use of quality and environmental management systems, and employee health and safety.

3. Universe inclusion: Scores from all negative and positive screens are then combined. Companies that score positively become allowable 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 screening standards, the investment will be sold as soon as practicable in an orderly manner.

Australian Shares – Ethical

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


Ethical investing takes into account attributes other than solely the financial return potential of particular 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 industries seen as more ethical or socially responsible.


• you want to invest in an Australian shares fund that invests in socially responsible companies.


7 years











n/a


International Shares – Neutral

Investment objective To outperform the MSCI All Country World Index (net dividends reinvested) over rolling 5 years before fees and taxes.


A neutral fund is one which has no specific investment- style bias. The investment manager aims to produce competitive returns through periods characterised by value and growth style momentums. A neutral-style fund is also known as a core-style fund. This fund invests in stocks listed 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 across investment managers, countries (developed and emerging), industries and companies.



7 years


Benchmark MSCI All Country World Index (net dividends reinvested)








n/a

International Shares – Emerging Markets

Investment objective To outperform the MSCI Emerging Markets Index (Free) Index (net dividends reinvested) over rolling 5 years before fees and taxes.


An emerging markets fund invests in countries that are considered emerging markets, such as Russia, 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 as emerging 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 across investment managers, countries, industries and companies with a focus on investing in emerging markets.



7 years


Benchmark MSCI Emerging Markets (Free) Index (net dividends reinvested)






Estimated Performance fee (% pa) 0.12

Total (% pa) 1.56



n/a


Alternatives

Diversified Shares – Geared

Investment objective To provide growth over the long-term through a portfolio of growth assets, which focuses on Australian and global shares. The portfolio will increase the amount of capital invested through the 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 equity held in the pool of assets. Gearing increases an investor’s overall investment exposure and will lead 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 and managing 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 of capital loss.


10 years





allocation (%)

Alternatives and others (defensive) 2%

Total defensive assets 2%



Global shares 25%

Private assets 8%

Alternatives and other (growth) 5%

Total growth assets 128%

Borrowing 30%









0.26

Growth assets

128%

Australian Shares – Income

Investment objective Aims to deliver a growing tax advantaged income stream from a portfolio with a focus on Australian Industrial 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. Its strategy helps reduce transaction costs and provides tax- effective returns to members. This fund invests in shares listed on the Australian Stock Exchange (ASX).


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


7 years


Benchmark n/a








n/a

Leaving your employerWhen you leave your employer and transfer to the Plum Personal Plan, your investment options will be transferred to the nearest suitable option as outlined below.

Option not available in the Plum Personal Plan

Nearest suitable option in the Plum Personal Plan

JANA essentials – Cash Cash Fund

JANA essentials – Conservative JANA Conservative

JANA essentials – Cautious JANA Cautious

JANA essentials – Moderate JANA Moderate

JANA essentials – Assertive JANA Assertive

JANA essentials – Aggressive JANA Aggressive

JANA Cash Fund Cash Fund

JANA Plus Conservative JANA Conservative

JANA Plus Cautious JANA Cautious

JANA Plus Moderate JANA Moderate

JANA Plus Assertive JANA Assertive

JANA Plus Aggressive JANA Aggressive

MIC Conservative Pre-mixed Conservative

MIC Moderate Pre-mixed Moderate

MIC Global Shares International Shares – Index

MIC Australian Shares Australian Shares – Index

Conservative Pre-mixed Conservative

Cautious Pre-mixed Cautious

Moderate Pre-mixed Moderate

Assertive Pre-mixed Assertive

Aggressive Pre-mixed Aggressive

Cash option Cash Fund

Australian Shares option Australian Shares

Global Shares (unhedged) option International Shares

Global Shares (hedged) option International Shares

Property option Diversified Property Securities

Fixed Interest option Diversified Fixed Interest

Other information

Contact usFor more information visit plum.com.au or call us from anywhere in Australia on 1300 55 7586, between 8am and 7pm AEST (8pm daylight savings time) Monday to Friday.

Postal address

Plum Super GPO Box 63 Melbourne VIC 3001

Registered office

Plum Super Ground Floor, MLC Building 105-153 Miller Street North Sydney NSW 2060

JANA and MLC have given written consent to be named and quoted in the PDS and this Investment Menu, and to the inclusion 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 investment with NULIS Nominees (Australia) Limited is not a deposit or liability of, and is not guaranteed by, NAB. A117802-0517

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