Retirement Lifestyle Sustainer Strategy Product Profile

The Retirement Lifestyle Sustainer Strategy (the Strategy) is a diverse investment portfolio, dynamically allocating to domestic and global assets based on the prevailing market environment. The Strategy seeks to achieve a modest growth return and a consistent level of income within a pre-defined risk framework.

Strategy Objective The Strategy’s objective is to deliver absolute returns whilst managing total risk as Portfolio Facts assessed by volatility. The Strategy aims to achieve an income return in line with the Performance • Growth: CPI + RBA Cash Rate and a growth return in line with the Reserve Bank of Australia’s Objective • Income: RBA Cash + Consumer Price Inflation (CPI). Typical Risk • Medium Profile and • 5–7 years Investment Investment Process Horizon Typical Investors • Actively enjoying Utilising our proprietary Market Regime Indicator (MRI), the Strategy will dynamically retirement allocate to assets based on the current market environment. This seeks to achieve the • Spending return objective within a defined risk framework, as measured by volatility. Investments Investment • Fit for purpose may include Australian and global listed securities; Australian and global fixed income Features investments • Market regime aware and cash; and alternative investments such as commodities, infrastructure, property dynamic asset allocation and managed futures. • Explicit equity protection The Strategy uses a range of derivatives for currency and risk management. Asset Allocation • Australian Equities = 33%; (indicative normal min = 4.5%; max = 43% allocation and • International Equities = full range over 17%; min = 0%; max = 25% Why Invest With Us? market cycle) • Property/Infrastructure = 10%; min = 0%; max = 17% Purpose Built for Retirement — The Strategy is part of a series of solutions that • Diversifying Assets = 18%; acknowledges investor behaviours and lifestyle aspirations differ through various min = 6%; max = 28% stages of retirement and market cycles. The Strategy is purposely designed for • Cash and Fixed Income = 22%; min = 8%; max = 89.5% investors who are active in their retirement years.

Investment Process — Our portfolio construction combines a unique and differentiated blend of quantitative rigor and fundamental perspective to generate a specific outcome rather than broad exposures to markets. Strategy Facts Performance January 2014 Global Presence with Local Insights — The Strategy is managed by our ISG team who have Inception developed and implemented investment solutions for our clients since 1982. Management Fee 0.75% p.a.

Plan for Your Future. Not a Future. Retirement Lifestyle Sustainer Strategy

Figure 1: Portfolio Building Blocks Frequency of Implementation Contribution to Portfolio Strategic Asset Allocation (SAA): Fit-for-Purpose Investments Yearly Long term contributor The choice of underlying investments, the SAA, is the primary driver of the Strategy’s to performance long-term investment performance. Selected investments have characteristics associated with capital preservation, regular and stable income, inflation offset, capital growth 1 and/or drawdown mitigation. Dynamic Asset Allocation: Right Assets for the Current Environment Weekly A key risk management Our proprietary macro indicator, the MRI, is designed to identify the level tool to de-risk to defensive of risk aversion among investors across global markets. The MRI reading assets in times of stress determines the market’s preference for risky assets and adjusts the portfolio 2 exposures accordingly. Tactical Asset Allocation (TAA) Monthly Short term contributor Our TAA approach is designed to, on a monthly basis, tactically tilt to asset classes that to relative performance we identify as being overvalued or undervalued. This is designed to add alpha to the portfolio by continually assessing the current market environment and positioning the 3 portfolios to take advantage of these misvaluations. Equity Risk Management Daily Primary risk Our Targeted Volatility Trigger (TVT) is a key risk management tool that is designed to mitigation tool systematically adjust the portfolios’ exposure to equities. In periods of heightened volatility, TVT will significantly reduce the portfolios equity exposure. Conversely, when volatility 4 begins to fall, TVT will progressively increase the equity exposure back to normal levels.

Investment Team SSGA Australia Dan Farley, CIO, Investment Solutions Group (“ISG”), State Street Global Advisors, Australia, Limited (“SSGA leads a team of over 70 dedicated investment professionals Australia”) is the Australian office of SSGA and was established in strategy and research, portfolio management and in 1989. Our local office in Sydney provides a broad range of fiduciary services. Located in key investment centers in investment strategies to Australian, New Zealand and Asia Boston, Sydney, London, Dublin, Paris, Tokyo and Hong Pacific based clients. We are one of Australia’s largest asset Kong, the ISG provides perspective on every region, issue managers and are part of SSGA’s network of global investment and client type. As at 31 December 2014, the ISG managed centres. SSGA Australia is staffed with portfolio management, in excess of US$219 billion for our clients. The mission of business development, risk and operational professionals who our ISG is to engage with our clients, listen carefully and are committed to unwavering client service through an deliver actionable investment solutions. investment culture built on experience and skill. Mark Wills, Head of ISG, Asia Pacific is based in Sydney and is supported by a dedicated team across the region. The local ISG How to Invest team are able to tap into more than 400 global investment Managed Investment Schemes professionals, risk, regulatory and compliance specialists within SSGA. The strategy is available via the SSgA Retirement Lifestyle Sustainer Fund (the Fund). Interest in the Fund is generally only available to residents of Australia. Eligible investors SSGA: Invest With A Global Leader should read the Product Disclosure Statement and Information For nearly four decades, SSGA has been committed to helping Booklet and can apply by completing the application form our clients, and those who rely on them, achieve financial available on ssga.com. Additional Know-Your-Client security. We partner with many of the world's largest, most information may also be required. sophisticated investors and financial intermediaries to help For any questions in relation to initial applications them reach their goals through a rigorous, research-driven please contact us on +612 9240-7600. investment process spanning both indexing and active disciplines. With trillions1 in assets, our scale and global reach Separately Managed Accounts offer clients unrivaled access to markets, geographies and asset For more information please contact your local SSGA classes, and allow us to deliver thoughtful insights and sales representative. innovative solutions. 1 Assets under management were US$2.4 trillion as of 31 March 2015. SSGA is the investment management arm of State Street Corporation.

State Street Global Advisors 2 Retirement Lifestyle Sustainer Strategy

Meet the Key Team Members Mark Wills Head of Investment Solutions Group, Asia Pacific ex-Japan Dan Farley, CIO Mark is Head of the ISG in Asia Pacific and is responsible for Investment Solutions Group developing and implementing tactical and strategic multi asset Dan is the Chief Investment Officer for SSGA’s ISG and is class solutions for institutional clients in the region. responsible for the management and development of asset allocation strategies for institutional clients worldwide. Previously Mark worked at Goldman Sachs JBWere in His responsibilities include the design and management of Australia, where he held a number of roles, most recently Liability Driven Investments, tactical asset allocation and as an Executive Director in Transition Management. overlay strategies. Mark has earned a Bachelor of Economics from Macquarie Dan holds a BSBA from Stonehill College and an MBA from University and a Masters of Business in Applied Finance from Bentley College, and has earned the Chartered Financial the University of Technology. Analyst designation. He is a member of CFA Institute and the Edwin Kwok, CFA Boston Securities Analyst Society. Intermediate Portfolio Manager Rafiq Choudhury Edwin is an Intermediate Portfolio Manager in the ISG and Senior Portfolio Manager his responsibilities include portfolio management, tactical Raf is a Senior Portfolio Manager in the ISG and is responsible for views and implementation. managing a range of strategies from Strategic AssetAllocation to Prior to joining SSGA, Edwin worked at First State Investments Absolute Return and equity risk reduction strategies. in Singapore and Colonial First State Global Asset Management Prior to joining SSGA, Raf worked at both ABN Amro and JP in Sydney. Edwin has been awarded the Chartered Financial Morgan Chase. Raf graduated from Durham University with a Analyst (CFA) designation. He also holds a Bachelor of Law and BSc (Hons) in Business and Finance and obtained a Masters in a Bachelor of Science (Physics) from The University of New Investment Management from Cass Business School London. South Wales.

VT Alaganar, CFA, Ph.D. Investment Strategist VT is an Investment Strategist in the ISG based in Sydney. He obtained his MBA from the University of Wisconsin-Milwaukee under a Fulbright Fellowship from Sri Lanka. After earning a PhD in Finance from this university in 1990, VT worked as an Assistant Professor in Finance at Hofstra University in Long Island, New York, and the School of Finance and Economics at the University of Technology, Sydney. He earned his Chartered Financial Analyst designation in 1997.

State Street Global Advisors 3 Retirement Lifestyle Sustainer Strategy

ssga.com

For institutional use only. Not for use with the public. Asset Allocation is a method of diversification which positions assets among major investment categories. Asset Allocation may be used in an effort to manage risk Issued by State Street Global Advisors, Australia, Limited (ABN 42 003 914 and enhance returns. It does not, however, guarantee a profit or protect against 225) (“SSGA Australia”) the holder of an Australian Financial Services Licence (AFSL loss. Investments in issuers in different countries are often denominated in Number 238276). SSGA Australia’s Responsible Entity, State Street Global Advisors, different currencies. Changes in the values of those currencies relative to the Australia Services Limited (ABN 16 108 671 441) (“SSGA, ASL”) holds an Australian Strategy’s base currency may have a positive or negative effect on the values of Financial Services Licence (AFSL Number 274900) pursuant to Section 913B of the the Portfolio’s investments denominated in those currencies. The Strategy may, Corporations Act 2001. Registered office: Level 17, 420 George Street, Sydney, NSW but will not necessarily, invest in currency exchange contracts or other currency- 2000, Australia. Telephone: +612 9240-7600. Facsimile: +612 9240-7611. related transactions (including derivatives transactions) to reduce exposure to References to the SSgA Retirement Lifestyle Sustainer Fund ("the Fund") in this different currencies. These contracts may reduce, take or eliminate some or all of document are references to the managed investment scheme domiciled in Australia, the benefit that the Strategy may experience from favorable currency fluctuations. promoted by SSGA Australia, in respect of which SSGA, ASL is the Responsible Investing in commodities entail significant risk and is not appropriate for all investors. Entity. Investing involves risk including the risk of loss of principal. Risk associated Commodities investing entail significant risk as commodity prices can be extremely with equity investing include stock values which may fluctuate in response to the volatile due to wide range of factors. A few such factors include overall market activities of individual companies and general market and economic conditions. movements, real or perceived inflationary trends, commodity index volatility, Investing in foreign domiciled securities may involve risk of capital loss from international, economic and political changes, change in interest and currency unfavorable fluctuation in currency values, withholding taxes, from differences in exchange rates. generally accepted accounting principles or from economic or political instability in Derivative investments may involve risks such as potential illiquidity of the markets other nations. Investments in emerging or developing markets may be more volatile and additional risk of loss of principal. and less liquid than investing in developed markets and may involve exposure to This material is of a general nature only and does not constitute personal advice. It economic structures that are generally less diverse and mature and to political does not constitute investment advice and it should not be relied on as such. It does systems which have less stability than those of more developed countries. Investing not take into account any investor’s particular investment objectives, strategies, in REITs involves certain distinct risks in addition to those risks associated with tax status or investment horizon. We encourage you to consult your tax or financial investing in the real estate industry in general. Equity REITs may be affected by advisor. There is no representation or warranty as to the current accuracy of, nor changes in the value of the underlying property owned by the REITs, while mortgage liability for, decisions based on such information. Past performance is not a reliable REITs may be affected by the quality of credit extended. REITs are subject to heavy indicator of future performance. cash flow dependency, default by borrowers and self-liquidation. REITs, especially mortgage REITs, are also subject to interest rate risk (i.e., as interest rates rise, This communication is directed at institutional and wholesale clients only. The the value of the REIT may decline). Although bonds generally present less short- products and services to which this communication relates are only available to such term risk and volatility risk than stocks, bonds contain interest rate risks; the risk persons and persons of any other description (including retail clients) are not entitled of issuer default; issuer credit risk; liquidity risk; and inflation risk. This effect is to rely on this communication. usually pronounced for longer-term securities. Any fixed income security sold or The whole or any part of this work may not be reproduced, copied or transmitted redeemed prior to maturity may be subject to a substantial gain or loss. or any of its contents disclosed to third parties without SSGA Australia’s express written consent.