Supplementary Product Disclosure Statement › content › dam › mlc › documents › ... · This is a Supplementary Product Disclosure Statement (SPDS) that supplements the information

This is a Supplementary Product Disclosure Statement (SPDS) that supplements the information containedin the MLC MasterKey Unit Trust Product Disclosure Statement (PDS) dated 1 October 2019 and shouldbe read in conjunction with the PDS.

Please read this SPDS carefully to make sure you understand the changes described and how they affectyou.

Changes to the Product Disclosure StatementEffective 13 December 2019, the following investment options are only available to investors that have an existing holding in that investmentoption. These investment options will terminate on 2 March 2020.

ARSNInvestment Option

ARSN 093 198 817National Australia Balanced Fund

ARSN 093 198 602National Australia Dividend Imputation Fund

ARSN 093 198 684National Australia Monthly Income Fund

ARSN 093 198 513National Australia Property Fund

ARSN 112 925 274MLC Horizon 1 Bond Portfolio(Only available through MLC MasterKey Investment Service)

For more information

For more information please call MLC between 8am and 6pm (AEST/AEDT) Monday to Friday, on 132 652 or contact your financial adviser.

Postal address

PO Box 200North Sydney NSW 2059

MLC MasterKey Unit TrustSupplementary Product Disclosure StatementPreparation date 25 November 2019

Tel 132 652Fax 02 9964 3334mlc.com.au


Issuer MLC Investments Limited (MLC)ABN 30 002 641 661 AFSL 230705

MLC Investments Limited (MLC) ABN 30 002 641 661 AFSL 230705. Part of the National Australia Bank (NAB) Group of Companies. An investment with MLC is not adeposit or liability of, and is not guaranteed by, NAB.

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JA13

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https://www.mlc.com.au/

MLC MasterKey Unit TrustProduct Disclosure Statement (PDS)

ABN 30 002 641 661AFSL 230705

Issued byMLC Investments Limited (MLC)

Preparation date1 October 2019

This information is general and doesn’ttake into account your personal financial

situation or individual needs.A financial adviser can help you decide

which investment options are right for you.

Contents

4Investing with MLC

5About the MLC MasterKey Unit Trust

6Things to consider before you invest

12Investing in MLC investment options

49Additional information you need to know

53Fees and other costs

The purpose of this ProductDisclosure Statement is to giveyou the information you needwhen investing in one or moreof the MLC MasterKey UnitTrust investment options.If you’re investing through MLCMasterKey Investment Service,MLC MasterKey InvestmentService Fundamentals or anyother Investor Directed PortfolioService, you’ll need to read thecorresponding FinancialServices Guide.

The information in this document is general information only and doesn't take into account your personal financial situation orindividual needs. Because of this you should consider the appropriateness of this information having regard to your personal objectives,financial situation and needs. A financial adviser can help you decide if one or more of the MLC MasterKey Unit Trust investmentoptions is the right product for you.

MLC Investments Limited (MLC) is the responsible entity of each of the investment options offered through this Product DisclosureStatement (PDS). MLC is part of the National Australia Bank (NAB) Group of Companies. An investment with MLC is not a deposit orliability of, and is not guaranteed by, NAB.

References within the PDS to 'we', 'us' or 'our' are references to MLC, unless otherwise stated.

The information in this PDS may change from time to time. Any updates that aren’t materially adverse will be available at mlc.com.au.You can obtain a paper copy of any of these changes at no additional cost by contacting us.

If we make changes to MLC MasterKey Unit Trust or the investment options, we’ll notify you of changes that are material. We mayprovide this information to you by mail, email or by making the information available on mlc.com.au. We’ll let you know wheninformation about your account has been made available online. If you prefer to receive updates about your account by mail, please letus know.

References to mlc.com.au in the online copy of this document link directly to the additional information available.

This offer is made in Australia in accordance with Australian laws, and your account will be regulated by these laws.

Any statement made by a third party or based on a statement made by a third party in this PDS has been included in the form andcontext in which it appears with the consent of the third party, which has not been withdrawn as at the date of this document.

MLC MasterKey Unit Trust Product Disclosure Statement | 3




MLC is the trustee and responsible entityfor all the investment options in the MLCMasterKey Unit Trust.

As the responsible entity, we’reresponsible for all aspects of operation,including administration of the assetsand investment policy.

The MLC Group of Companies has $142billion funds under management andadministration (as at 30 June 2019) onbehalf of individual and corporateinvestors in Australia.

The MLC Group of Companiesprovides super, pension, investment andinsurance solutions and works closelywith you and your financial adviser tohelp grow and protect your wealth.

Who you go through life withmakes all the difference

MLC has been looking after theinvestment needs for generations ofAustralians - helping them enjoy a futurefilled with the best of today.

Our experience has taught us the rightsolution for each investor is unique andtheir needs change over time.

We specialise in creating a diverse rangeof investment solutions so you can growyour wealth the way you want to.

And, we’ll continually enhance ourproducts and services to make the mostof changing investment opportunities.

Investing with us

We believe the best way to manage ourportfolios is to employ the skills ofmultiple specialist investment managers.We’ve appointed the NAB Group’smulti-asset management business, MLCAsset Management Services Limited toadvise on and manage our investmentoptions. Our investment experts haveextensive knowledge and experience atdesigning and managing portfolios usinga multi-manager investment approach.

While MLC Asset Management's name haschanged through time, it’s the same teamthat’s been advising on and managing ourportfolios for decades.

Our portfolios have different investmentobjectives because we know everyone hasdifferent ideas about how their moneyshould be managed.

Our portfolios make sophisticatedinvesting straightforward.

Our investment experts structure ourportfolios to deliver more reliable returnsin many potential market environments.And, as their assessment of world marketschanges, our portfolios are evolved tomanage new risks and capture newopportunities.

We use specialist investment managersin our portfolios. Our investment expertsresearch hundreds of investmentmanagers from around the world andselect the managers they believe are thebest for our portfolios. Our investmentmanagers may be specialist in-housemanagers, external managers or acombination of both.

Importantly, we stay true to the objectivesof our portfolios so you can keep on trackto meeting your goals.

The Fund Profile Tool

This easy to use, interactive tool willgive you greater insight into how yourmoney is managed including whereyour money is invested, how yourinvestments are performing and theinvestment fees and costs charged.For the latest information on the MLCportfolios goto mlc.com.au/fundprofiletool

4 | MLC MasterKey Unit Trust Product Disclosure Statement

Investing with MLC

https://www.mlc.com.au/fundprofile/flow/fundProfile?execution=e1s1

Whether investing for the long or shortterm, the MLC MasterKey Unit Trust helpsbring your goals to life.

Whatever your needs, our extensive rangeof investments means you can build theportfolio you want.

Looking out for your interests

In this document we outline how wemanage your money, the benefits andrisks of investing and the fees you’ll bepaying.

This will help you decide whether theinvestment you’re considering is right foryou.

If you need any further details, pleasespeak with your financial adviser or callus on 132 652.

Who can invest

You can only invest in the MLCMasterKey Unit Trust if you’re:

an existing investor invested directlyin an MLC investment option

an existing investor invested directlyin a National investment option

an existing MLC MasterKey InvestmentService investor, or

applying for the MLC Cash Fundthrough the MLC MasterKeyInvestment Service Fundamentals.

If you only hold a National investmentoption you can’t switch to an MLCinvestment option and you can onlyswitch to the same fee option of anotherNational investment option.

MLC-Platinum Global Fund

Additional information on theMLC-Platinum Global Fund is providedin accordance with ASIC’s RegulatoryGuide 240. The additional information isincluded in the Investment Portfoliosection on pages 40 to 46.

The investment options

The investment options are categorised as the MLC investment options and the National investment options.

National investment optionsMLC investment options

National diversified portfolios (pages 33-34)MLC Horizon portfolios (pages 14-32)

National asset class funds (page 47)MLC asset class funds (pages 35-46)

MLC Cash Fund (page 48)

The investment options are Registered Managed Investment Schemes governed by their respective constitutions. The investmentoptions may access investment managers via other funds operated by MLC and through other managers’ pooled investments.The investment options may also hold direct assets.


About the MLCMasterKey Unit Trust

Before you invest, there are some things you need to consider, including howmuch risk you're prepared to accept.

This is determined by various factors,including:

your investment goals

the savings you'll need to reach thesegoals

your age and how many years you haveto invest

where your other assets are invested

the return you may expect from yourinvestments, and

how comfortable you are withinvestment risk.

Investment risk

All investments come with some risk.Some investment options will have morerisk than others, as it depends on anoption’s investment strategy and assets.

The value of an investment with a higherlevel of risk will tend to rise and fall moreoften and by greater amounts thaninvestments with lower levels of risk, ieit’s more volatile.

While it may seem confronting,investment risk is a normal part ofinvesting. Without it, you may not get thereturns you need to reach yourinvestment goals. This is known as therisk/return trade-off.

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

market sentiment

changes in inflation

growth and contraction in Australianand overseas economies

changes in interest rates

defaults on loans

company specific issues

liquidity (the ability to buy or sellinvestments when you want to)

changes in the value of the Australiandollar

investments and withdrawals by otherinvestors

changes in Australian and overseaslaws, and

a counterparty not meeting itsobligations eg when buying securities,the seller may not deliver on thecontract by failing to provide thesecurities.

Volatility

Periods of volatility can be unsettling andmay occur regularly. You may find itreassuring to know that, ofteninvestments that produce higher returnsand growth over long periods tend to bemore volatile in the short term.

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 choosing your investment, it’simportant to understand that:

its value and returns will vary over time

assets with higher long-term returnpotential usually have higher levels ofshort-term risk

returns aren’t guaranteed, and you maylose some of your money, and

future returns will differ from pastreturns.


Things to considerbefore you invest

Diversify to reduce volatilityand other risks

Diversification – investing in a range ofinvestments – is a sound way to reducethe short-term volatility of a portfolio’sreturns. That’s because different types ofinvestments perform well in differenttimes and circumstances. When some areproviding good returns, others may notbe.

Portfolios can be diversified acrossdifferent asset classes, industries,securities and countries, as well as acrossinvestment managers with differentapproaches.

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 across arange of asset classes.

Diversification across asset classes isjust one way of managing risk. Ourmulti-asset portfolios diversify acrossasset classes and investmentmanagers. Please refer to the 'Ourapproach to investing' in the'Investing in MLC investment options'section for more information.

A financial adviser can help you clarifygoals and assist with creating afinancial plan which helps you managerisk and consider issues such as:

how many years you have to invest

the savings you'll need to reach yourgoals

the return you may expect fromyour investments, and

how comfortable you are withvolatility.

Types of assets

Asset classes are generally grouped as defensive, growth or alternatives based on their different characteristics.Multi-asset portfolios are usually invested across all these groups because each has different return and volatility characteristics.For example, defensive assets may help to provide returns in a portfolio when share markets are weak. On the other hand, growthassets may be included in a portfolio because of their potential to produce higher returns than cash in the long term. However, in some market conditions, all types of assets may move in the same direction, delivering low or negative returns at thesame time.The main differences between these types of assets are:

AlternativesGrowthDefensiveA very diverse group of assets andstrategies. Some examples includeprivate assets and hedge funds.Because alternatives are diverse, theymay be defensive or growth assets.

Shares and listed property securities.Cash and fixed income securities.Asset classesincluded

To provide returns that aren’t stronglylinked with those of mainstreamassets. They may be included for theirincome, defensive or growthcharacteristics.

To provide long-term capitalgrowth and income.

To generate income and stabilisereturns.

How they aregenerally used

Expected to produce returns andvolatility that aren’t strongly linked tomainstream assets such as shares. Riskand return characteristics of differentalternative investments can varysignificantly.

Expected to produce higher returns,and be more volatile, than defensiveassets over the long term.

Expected to produce lower returns, andbe less volatile, than growth assetsover the long term.

Risk and returncharacteristics


Asset classes

Asset 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 of yearsor many years as prices rise, peak, fall andstabilise. Through investing for the longterm, at least through a whole marketcycle, you can improve your chance ofbenefiting from a period of strong returnsand growth to offset periods of weakness.

The illustration on this page showsindicative returns and volatility for themain asset classes over a whole marketcycle. But each market cycle is different,so unfortunately it isn’t possible toaccurately predict asset class returns ortheir volatility. Depending on theconditions at the time, actual returnscould be significantly different from thoseshown.

Here are the main asset class risks andbenefits.

Cash

Cash is generally a low risk investment.

Things to consider:

Cash is often included in a portfolio tomeet liquidity needs and stabilisereturns.

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 have thelowest return over a market cycle.

The market value tends not to change.However, when you invest in cash,you’re effectively lending money tobusinesses or governments that coulddefault on the loans, resulting in a losson your investment.

Many cash funds invest in fixed incomesecurities that have a very short termuntil maturity.

Fixed income

When investing in fixed income you’reeffectively lending money to businessesor governments. Bonds are a commonform of fixed income security. Fixedincome is also known as fixed interest.

Things to consider:

Fixed income securities are usuallyincluded in a portfolio for theirrelatively stable return characteristics.

Returns typically comprise interest andchanges in the market value of the fixedincome security. Fixed incomesecurities’ values tend to move inopposite directions to interest rates. Sowhen interest rates rise, fixed incomesecurities’ values tend to fall and wheninterest rates fall, values can rise.Short-term fixed income securities aregenerally less sensitive to interest ratechanges than longer-term securities.

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 rates arelow, the risk of rates rising and marketvalues falling, is greatest.

There are different types of fixedincome securities and these will havedifferent returns and volatility.

Investing in fixed income securitiesoutside Australia may expose yourportfolio to movements in exchangerates.

Indicative volatility

Lower Higher

Higher

Shares

Fixed income

Indi

cati

ve re

turn

s

Listed property securities

Cash

Indicative returns and volatility over a market cycle

Defensive alternatives

Growth alternatives

Private assets

Source: MLC Asset Management Services Limited



Listed property securities

Property securities are listed on sharemarkets in Australia and around theworld. Listed property securities are alsoreferred to as Real Estate InvestmentTrusts (REITs).

Things to consider:

Listed property securities areusually included in a portfolio for theirincome and 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.

Listed property securities' returns canbe volatile.

Investing outside Australia may exposeyour portfolio to movements inexchange rates.

Australian shares

This asset class consists of investmentsin companies listed on the AustralianSecurities Exchange (and other regulatedexchanges). Shares are also known asequities.

Things to consider:

Australian shares can be volatile andare usually included in a portfolio fortheir growth and incomecharacteristics.

The Australian share market is lessdiversified than the global marketbecause Australia is currentlydominated by a few industries such asFinancials and Resources.

Returns usually comprise dividendincome and changes in share prices.

Dividends may have the benefit of taxcredits attached to them (known asfranking or imputation credits).

Returns are driven by many factorsincluding the performance of theAustralian economy.

Global shares

Global shares consist of investments incompanies listed on securities exchangesaround the world.

Things to consider:

Global shares can be volatile and areusually included in a portfolio for theirgrowth characteristics.

The number of potential investmentsis far greater than in Australian shares.

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 for theirdefensive or growth characteristics.

Alternative investments are usuallyincluded in portfolios to increasediversification and provide returns thataren’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 often associated withthem.

Some alternative strategies aremanaged to deliver a targeted outcome.For example, real return strategies aimto produce returns exceeding increasesin the costs of living (ie inflation).

For some alternatives, such as hedgefunds, derivatives may be usedextensively and it can be less obviouswhich assets you’re investing incompared to other asset classes.

Some alternative investments areilliquid, which makes them difficult tobuy or sell.

To access alternative investments yougenerally need to invest in a managedfund that, in turn, invests inalternatives.

Because most alternative investmentsaren’t listed on an exchange,determining their value for a fund’sunit price can be difficult and mayinvolve a considerable time lag.

Alternatives invested outside Australiamay expose your portfolio tomovements in exchange rates.

Private assets

Investing in private assets gives yourportfolio exposure to assets that aren’ttraded on listed exchanges.

An example of this is an investment in aprivately owned business.

Things to consider:

Private assets are alternative assets thatare usually included in a portfolio fortheir growth characteristics.

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 returns thanshare markets in the long run, and toincrease diversification.

Private assets are illiquid which makesthem difficult to buy or sell.

To access private assets you generallyneed to invest in a managed fund thatinvests in private assets.

Because private assets aren’t listed onan exchange, determining their valuefor a fund’s unit price can be difficultand may involve a considerable timelag.


Investment approaches

Investment managers have differentapproaches to selecting investments,which invariably results in differentreturns. No single investment approachis guaranteed to outperform all others inall market conditions.

There are generally two broad approaches:passive and active management.

Passive management

Passive, or index managers, chooseinvestments to form a portfolio whichwill deliver a return that closely tracks amarket 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 over thelong term.

They buy or sell investments when theirmarket outlook alters or investmentinsights change.

The degree of active management affectsreturns. Less active managers take smallpositions away from the marketbenchmark and more active managerstake larger positions. Generally, the largeran investment manager's positions, themore their returns will differ from thebenchmark.

Active managers have differentinvestment styles that also affect theirreturns. Some common investment stylesare:

Bottom-up – focuses on forecastingreturns for individual companies, ratherthan the market as a whole.

Top-down – focuses on forecastingbroad macroeconomic trends and theireffect on the market, rather thanreturns for individual companies.

Growth – focuses on companies theyexpect will have strong earningsgrowth.

Value – focuses on companies theybelieve are undervalued (their pricedoesn’t reflect earning potential).

Income – focuses on generating aregular income stream throughselecting companies, trusts and othersecurities they believe will deliverincome, or through using derivativesand other strategies.

Core – aims to produce competitivereturns in all periods.

Ethical investing

Investment managers may take intoaccount labour standards, environmental,social or ethical considerations whenmaking decisions to buy or sellinvestments. At MLC, we expect ouractive investment managers to considerany material effects these factors mayhave on the returns from theirinvestments, however we don’t requirethem to. We don’t expect our passiveinvestment managers to consider thesefactors.

Investment techniques

Our investment experts and investmentmanagers may use different investmenttechniques that can change the value ofan investment.

Some of the main investment techniquesare explained below.

Derivatives

Derivatives may be used in any of theinvestment options.

Derivatives are contracts that have a valuederived from another source such as anasset, market index or interest rate. Thereare many types of derivatives includingswaps, options and futures. They are acommon tool used to manage risk orimprove returns.

Some derivatives allow investmentmanagers to earn large returns from smallmovements in the underlying asset’sprice. However, they can lose largeamounts if the price movement in theunderlying asset is unfavourable.

Risks particular to derivatives include therisk that the value of a derivative may notmove in line with the underlying asset,the risk that counterparties to thederivative may not be able to meetpayment obligations and the risk that aparticular derivative may be difficult orcostly to trade.

Investment managers, including MLC,have derivatives policies which outlinehow derivatives are managed.Information on MLC’s derivatives policyis available atmlc.com.au/derivativesforinvestments

Currency management

If an investment manager invests inassets in other countries, its returns inAustralian dollars will be affected bymovements in exchange rates (as well aschanges 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 choose to keep theassets exposed to foreign currencymovements, or ‘unhedged’.

Returns from exposure to foreigncurrency can increase diversification ina portfolio.

Gearing

If an investment manager uses gearingextensively for a particular investmentoption, we’ve made a note of it in theirinvestment option profile.

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 larger fluctuations(both up and down) in the value of yourinvestment compared to the sameinvestment which is not geared.



https://www.mlc.com.au/personal/nav_footer/mlc-investments-and-navigator-derivatives-policy

Investment managers can take differentapproaches to gearing. Some change thegearing level to suit different marketconditions. Others maintain a target levelof gearing.

It’s important to understand the potentialrisks of gearing, as well as its potentialbenefits. When asset values are rising bymore than the costs of gearing, the returnswill generally be higher than if theinvestment wasn't geared. When assetvalues are falling, gearing can multiplythe capital loss. If the fall is dramaticthere can be even more implications forgeared investments. For example, wherethe lender requires the gearing level to bemaintained below a predetermined limit,if asset values fall dramatically, thegearing level may rise above the limit,forcing assets to be sold when values maybe continuing to fall.

In turn, this could lead to more assetshaving to be 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 occurred inthe past. Recovering from such falls cantake 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 types ofenvironments and understand theirimpact on your geared investment.

Short selling

If an investment manager uses shortselling extensively for a particularinvestment option, we’ve made a note ofit in their investment option profile.

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, usually

a broker, and sells it with the intention ofbuying it back at a lower price. If all goesto plan, a profit is made. The key risk ofshort selling is that, if the price of theasset increases, the loss could besignificant.

Assessing performance

An investment option’s performanceshould be judged against its investmentobjective.

Most investment objectives aim toproduce returns that are comparable to abenchmark. Benchmarks used as ameasure of performance are usuallymarket indices that are publicly available.

Shares are often benchmarked against ashare market index and fixed incomeagainst a fixed income market index.Other benchmarks can be based onparticular industries (eg mining),company size (eg small caps) or the widermarket (eg S&P/ASX 200 or the MSCIWorld Index).

Benchmarks for multi-asset portfoliosmay be:

made up of a combination of marketindices weighted according to the assetallocation (commonly known ascomposite benchmarks), or

a single measure, such as inflation. Acommon index of inflation, which isthe rise in the cost of living, is theConsumer Price Index (CPI).

When comparing returns to a benchmarkyou should consider:

whether the investment option’s returnis calculated before or after fees arededucted

the period over which the return shouldbe measured, and

that an investment option is unlikelyto achieve its objective in all marketenvironments.


When you’re invested in an MLC portfolio,your money is with Australia’s mostexperienced multi-manager.

MLC Horizon portfolios

The MLC Horizon portfolios are activelymanaged portfolios designed to deliverreturns higher than their benchmarks,while reducing risk when our investmentexperts consider risks are too high.

Each MLC Horizon portfolio has adifferent asset allocation, made up ofgrowth and defensive assets, which isexpected to deliver a different level ofvolatility and return. You can choose theportfolio with the asset allocation thatsuits your investment needs.

And you’ll always know where yourmoney’s invested because the portfolio’smix of assets is managed within definedranges.

National diversified portfolios

These portfolios are only for existinginvestors in the National investmentoptions.

MLC asset class funds

You may decide to tailor your investmentstrategy using our asset class funds.

These funds invest in one asset class andsuit investors looking for a completeinvestment solution for that asset class.

National asset class funds

These asset class funds are only forexisting investors in the Nationalinvestment options.

Cash

We also offer the MLC Cash Fund as a cashoption.


Investing in MLC investment options

Our approach to investing

For over 30 years our investment expertshave been designing portfolios using amulti-manager approach, to helpinvestors achieve their goals.

The four key aspects of this investmentapproach are:

1. Portfolio design

Our multi-asset portfolios focus on whataffects investor outcomes the most —asset allocation.

Each asset class has its own risk andreturn characteristics. Money is allocatedbetween asset classes based on thefollowing beliefs:

Risk can’t be avoided, but can bemanaged

Key to the investment approach is aunique Investment Futures Framework(Framework). The Framework guides ourforward-looking approach to managingrisk.

In an unpredictable and constantlychanging world, the Framework helpscontinually identify the very wide rangeof potential market scenarios - both goodand bad - that could occur.

The Framework also helps our investmentexperts analyse how these scenarios couldaffect the risks and returns of the assetclasses in the portfolios.

You can find more information on ourInvestment Futures Frameworkat mlc.com.au/futuresframework

The insights from this analysis are usedto work out the combination of assetclasses that they believe will best achievea portfolio’s objective.

This helps us prepare our portfolios forfuture market ups and downs.

Risks and returns vary through time

The Framework shows how the potentialrisks and returns of each asset class couldchange over the next three to sevenyears.

With this information our portfolios’ assetallocations are adjusted to reduce theirrisk or improve their return potential.

Diversification matters

Asset classes perform differently indifferent market conditions.

Investing in many asset classes helpssmooth out the overall portfolios' returns,as asset class ups and downs can offsetone another.

2. Managing the portfolio

Our portfolios have different investmentobjectives. That’s why our investmentexperts select a different mix of assetsand investment managers for each.

The investment managers may bespecialist in-house managers, externalmanagers or a combination of both.

Our investment experts researchhundreds of investment managers fromaround the world and select the managersthey believe are the best for our portfolios.

They are then combined in our portfoliosso they complement each other.

This multi-manager approach helps toreduce risk and deliver more consistentreturns.

You can find out about our currentinvestment managersat mlc.com.au/investmentmanagers

3. Ongoing review

To make sure our portfolios are workinghard for our investors, our investmentexperts continuously review and actively

manage them.

This includes adjusting the assetallocation, investment strategies andmanagers.

This may be because our investmentexperts' assessment of the future marketenvironment has altered or becausethey've found new ways to balance riskand return in our portfolios.

4. Portfolio implementation

We deliver better returns by avoidingunnecessary costs. Our investmentexperts help us do this by carefullymanaging cash flows, tax and changes inour portfolios.


https://www.mlc.com.au/content/dam/mlc/documents/pdf/investments/653363_mlcs_market_leading_investment_process.pdf

https://www.mlc.com.au/adviser/investments/investment-approach/our-managers

MLC Horizon 1 Bond PortfolioARSN 112 925 274(Only available through MLC MasterKey Investment Service)

Aims to outperform the benchmark, before fees, over 2 year periods. The return is also expected to be higherthan cash investments.

At the same time, the portfolio aims to preserve your investment over 1 year periods.

Investment objective

Investment markets are the main driver of the portfolio’s investment returns. The portfolio’s benchmarkallocation to investment markets is shown in its benchmark asset allocation and ranges below. The benchmarkasset allocation is invested in defensive assets.

How the investment option ismanaged

Our investment experts actively look for opportunities to provide better returns, or less risk, than those generatedby the benchmark asset allocation and to manage the portfolio’s exposure to the risks of investing in markets.Our investment experts do this by:

Adjusting the allocations to the asset classes away from the benchmark asset allocation, while aiming toremain within the defined ranges shown below.

Researching and selecting a broad range of fixed income sectors and strategies.

Researching hundreds of investment managers from around the world and selecting the managers they believeare the best for the portfolio. These active investment managers choose many securities in Australia andoverseas for investment.

The portfolio uses all aspects of our approach to investing, outlined earlier.

The investment option may besuited to you if...

you want a portfolio of fixed income securities that is predominantly investment grade and has an averageterm to maturity that’s normally up to 1.25 years

you want an actively managed portfolio that’s diversified across investment managers, types of fixed income,countries, and securities, and

preservation of your investment is important but you understand there are risks of investing in fixed income.

2 yearsMinimum suggested time toinvest

Asset class Ranges (%)

Cash 30% 0-60%Australian fixed income 42% 20-70%Global fixed income 28% 15-50%

Defensive assets 100%

Benchmark asset allocation (%)

Benchmark asset allocationand ranges

The portfolio's asset allocation willmove around the benchmark assetallocation, while remaining withinthe ranges for the asset classes,defensive and growth assets.

The benchmark asset allocationand ranges may change over time.The most up-to-date informationis availableat mlc.com.au/fundprofiletool

In addition, foreign currency exposures from global fixed income will be substantially hedged to the Australiandollar.

A combination of market indices, weighted according to the benchmark asset allocation. Details of the portfolio’scurrent benchmark are available at mlc.com.au/fundprofiletool

Benchmark


MLC Horizonportfolios



MLC Horizon 1 Bond PortfolioARSN 112 925 274(Only available through MLC MasterKey Investment Service)

Less than 1 year in 20 yearsEstimated number of negativeannual returns

Fees and costsof the investment option

Management costs:

1.74% paManagement feeOther fees & costs also apply. Formore information please refer tothe Fees and other costs and the

1.74% paTOTAL

Up to 5% (per contribution)Contribution fee

Additional explanation of fees andcosts sections of this PDS.

Generally calculated on the last day of August, November, February and May and paid within 14 days. Our currentpractice is to generally distribute all of the net taxable income of the Fund to investors for each financial year(including any net capital gains and net gains on currency management). While the Fund is an Attribution

Income distribution

Managed Investment Trust (AMIT), we have the discretion to accumulate income (instead of distributing all ofthe income) and if we do so, the accumulated income will be reflected in the unit price.

However, we intend to continue our current practice to distribute all of the income (including any capital gains)for each financial year. We'll notify you if this changes.


MLC Horizon 2 Income PortfolioARSN 087 940 592Aims to outperform the benchmark, before fees, over 3 year periods.

We aim to achieve this by actively managing the portfolio. This includes changing the portfolio’s assetallocation to reduce risk if market risk is high. As a result of reducing the allocation to higher risk assets,there may be smaller losses than the benchmark in weak or falling markets and potentially lower returns


than the benchmark in strong markets.

While the portfolio isn’t managed to achieve a particular return above inflation, an average return of 3.5%pa above inflation (before fees) is consistent with historical long-term returns from investment markets,using an asset allocation similar to the portfolio's. More information about long-term investment marketreturns is provided below.

Investment markets are the main driver of the portfolio’s investment returns. The portfolio’s benchmarkallocation to investment markets is shown in its benchmark asset allocation and ranges below. Thebenchmark asset allocation has a strong bias to defensive assets and some exposure to growth assets.


Our investment experts actively look for opportunities to provide better returns, or less risk, than thosegenerated by the benchmark asset allocation and to manage the portfolio’s exposure to the risks of investingin markets. Our investment experts do this by:

Adjusting the allocations to the asset classes away from the benchmark asset allocation, while aimingto remain within the defined ranges shown below.

Researching and selecting a broad range of mainstream asset classes, and including some exposure toalternative assets and strategies.

Researching hundreds of investment managers from around the world and selecting the managers theybelieve are the best for the portfolio. These investment managers, who are mainly active managers,choose many companies and securities in Australia and overseas for investment.



you want a diversified portfolio that invests mainly in defensive assets

you want to rely largely on the market for returns

preserving your investment is an important but not overriding concern, and

you want to receive a regular income stream with some tax advantages.



Cash 11% 0-25%Fixed income 49% 30-75%Defensive alternatives and other

8% 0-15%

Growth alternatives and other

3% 0-15%

Listed property securities 7% 0-15%Global shares 7% 0-25%Australian shares 15% 0-25%

Defensive assets 68% 58-78%Growth assets 32% 22-42%





In addition, most global assets are hedged to the Australian dollar. For benchmark currency hedging levelsfor global assets please refer to mlc.com.au/fundprofiletool





MLC Horizon 2 Income PortfolioARSN 087 940 592A combination of market indices, weighted according to the benchmark asset allocation. Details of theportfolio’s current benchmark are available at mlc.com.au/fundprofiletool

Benchmark

The graph below shows how broad the range of investment market returns have been over more than100 years. It illustrates that historically the longer the investment time period the narrower the range ofreturns.

Long-term investment marketreturns

Ranges of returns for the portfolio's benchmark asset allocation based on investment market returnsfrom 1900 to 2019 (before fees)

90%

70%

50%

30%

10%

-10%

-30%

-50%

Middle 95% of returns Lowest 2.5% of returns

1 year 3 years 5 years 10 years 15 years 20 years

Highest 2.5% of returns

% p

a

Time period Highest return

Middle return

Lowest return

Most of the returns are between

1 year return (%) 39% 7% -14% 26% and -4%

20 years return (% pa) 15% 7% 4% 14% and 5%

Source: Calculated by MLC Asset Management Services Limited using the benchmark asset allocation as at 30June 2019 and investment market data from Global Financial Data, Inc. and FactSet.

These historical ranges of returns are for investment markets weighted according to the portfolio’sbenchmark asset allocation. Historical returns aren’t a reliable indicator of the portfolio’s future investmentreturns.

As the portfolio relies largely on investment markets to generate returns, it’s impossible to predict theactual return the portfolio will deliver in future.

Between 2 and 3 years in 20 yearsEstimated number of negativeannual returns


Management costs:


0.07% paIndirect costs

This is made up of:

0.03% paPerformance related costsAdditional explanation of fees and0.04% paOther indirect costscosts sections of this PDS.1.83% paTOTAL


Generally calculated on the last day of August, November, February and May and paid within 14 days. Ourcurrent practice is to generally distribute all of the net taxable income of the Fund to investors for eachfinancial year (including any net capital gains and net gains on currency management). While the Fund is

Income distribution

an Attribution Managed Investment Trust (AMIT), we have the discretion to accumulate income (insteadof distributing all of the income) and if we do so, the accumulated income will be reflected in the unit



MLC Horizon 2 Income PortfolioARSN 087 940 592price. However, we intend to continue our current practice to distribute all of the income (including anycapital gains) for each financial year. We'll notify you if this changes.



MLC Horizon 3 Conservative Growth PortfolioARSN 097 221 077Aims to outperform the benchmark, before fees, over 3 year periods.




While the portfolio isn’t managed to achieve a particular return above inflation, an average return of 4.25%pa above inflation (before fees) is consistent with historical long-term returns from investment markets,using an asset allocation similar to the portfolio's. More information about long-term investmentmarket returns is provided below.

Investment markets are the main driver of the portfolio’s investment returns. The portfolio’s benchmarkallocation to investment markets is shown in its benchmark asset allocation and ranges below. Thebenchmark asset allocation has an approximately equal exposure to growth and defensive assets.








you want a diversified portfolio that has similar weightings to defensive and growth assets


you want some long-term capital growth, and

you understand that there can be moderate to large fluctuations in income and the value of yourinvestment.




8% 0-15%


5% 0-15%







In addition, some global assets are not hedged to the Australian dollar. For benchmark currency hedginglevels for global assets please refer to mlc.com.au/fundprofiletool




MLC Horizon 3 Conservative Growth PortfolioARSN 097 221 077A combination of market indices, weighted according to the benchmark asset allocation. Details of theportfolio’s current benchmark are available at mlc.com.au/fundprofiletool

Benchmark


Long-term investmentmarket returns

Ranges of returns for the portfolio's benchmark asset allocation based on investment market returnsfrom 1900 to 2019 (before fees)Ranges of returns for the portfolio’s benchmark asset allocation based on investment market returns from 1900 to 2019 (before fees)

90%

70%

50%

30%

10%

-10%

-30%

-50%1 year 3 years 5 years 10 years 15 years 20 years

Middle 95% of returns Lowest 2.5% of returnsHighest 2.5% of returns

% p

a


Middle return

Lowest return


1 year return (%) 45% 8% -19% 31% and -7%


Source: Calculated by NSL using the benchmark asset allocation as at 30 June 2018 and investment market data from Global Financial Data, Inc. and FactSet.

A14

798

4-0

819






Management costs:



This is made up of:




Income distribution

an Attribution Managed Investment Trust (AMIT), we have the discretion to accumulate income (instead




MLC Horizon 3 Conservative Growth PortfolioARSN 097 221 077of distributing all of the income) and if we do so, the accumulated income will be reflected in the unit price.

However, we intend to continue our current practice to distribute all of the income (including any capitalgains) for each financial year. We'll notify you if this changes.


MLC Horizon 4 Balanced PortfolioARSN 087 944 625Aims to outperform the benchmark, before fees, over 4 year periods.

We aim to achieve this by actively managing the portfolio. This includes changing the portfolio's assetallocation to reduce risk if market risk is high. As a result of reducing the allocation to higher risk assets,there may be smaller losses than the benchmark in weak or falling markets and potentially lower returns



While the portfolio isn't managed to achieve a particular return above inflation, an average return of 4.75%pa above inflation (before fees) is consistent with historical long-term returns from investment markets,using an asset allocation similar to the portfolio's. More information about long-term investmentmarket returns is provided below.

Investment markets are the main driver of the portfolio’s investment returns. The portfolio’s benchmarkallocation to investment markets is shown in its benchmark asset allocation and ranges below. Thebenchmark asset allocation has a strong bias to growth assets and some exposure to defensive assets.








you want a diversified portfolio that invests mainly in growth assets


you want long-term capital growth, and

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




5% 0-15%


8% 0-15%












MLC Horizon 4 Balanced PortfolioARSN 087 944 625A combination of market indices, weighted according to the benchmark asset allocation. Details of theportfolio’s current benchmark are available at mlc.com.au/fundprofiletool

Benchmark




90%

70%

50%

30%

10%

-10%

-30%



% p

a


Middle return

Lowest return


1 year return (%) 52% 9% -27% 38% and -11%



A14

7985

-081

9






Management costs:



This is made up of:




Income distribution

an Attribution Managed Investment Trust (AMIT), we have the discretion to accumulate income (instead



MLC Horizon 4 Balanced PortfolioARSN 087 944 625of distributing all of the income) and if we do so, the accumulated income will be reflected in the unit price.




MLC Horizon 5 Growth PortfolioARSN 087 944 438Aims to outperform the benchmark, before fees, over 5 year periods.




While the portfolio isn’t managed to achieve a particular return above inflation, an average return of 5.25%pa above inflation (before fees) is consistent with historical long-term returns from investment markets,using an asset allocation similar to the portfolio's. More information about long-term investmentmarket returns is provided below.

Investment markets are the main driver of the portfolio’s investment returns. The portfolio’s benchmarkallocation to investment markets is shown in its benchmark asset allocation and ranges below. Thebenchmark asset allocation invests predominantly in growth assets with a small exposure to defensive


assets.







you want a diversified portfolio that invests predominantly in growth assets







4% 0-15%


9% 0-15%









MLC Horizon 5 Growth PortfolioARSN 087 944 438In addition, some global assets are not hedged to the Australian dollar. For benchmark currency hedginglevels for global assets please refer to mlc.com.au/fundprofiletool

A combination of market indices, weighted according to the benchmark asset allocation. Details of theportfolio’s current benchmark are available at mlc.com.au/fundprofiletool

Benchmark




% p

a

90%

70%

50%

30%

10%

-10%

-30%




Middle return

Lowest return


1 year return (%) 56% 10% -31% 42% and -14%


A13

4782

-081

9




Approximately 5 years in 20 yearsEstimated number of negativeannual returns


Management costs:



This is made up of:







MLC Horizon 5 Growth PortfolioARSN 087 944 438Generally calculated on the last day of August, November, February and May and paid within 14 days. Ourcurrent practice is to generally distribute all of the net taxable income of the Fund to investors for eachfinancial year (including any net capital gains and net gains on currency management). While the Fund is

Income distribution

an Attribution Managed Investment Trust (AMIT), we have the discretion to accumulate income (insteadof distributing all of the income) and if we do so, the accumulated income will be reflected in the unitprice. However, we intend to continue our current practice to distribute all of the income (including anycapital gains) for each financial year. We'll notify you if this changes.


MLC Horizon 6 Share PortfolioARSN 097 220 945Aims to outperform the benchmark, before fees, over 5 year periods.

We aim to achieve this return while keeping volatility (movements up and down in value) at levels similarto the benchmark.

While the portfolio isn't managed to achieve a particular return above inflation, an average return of 5.5%pa above inflation (before fees) is consistent with historical long-term returns from investment markets,using an asset allocation similar to the portfolio's. More information about long-term investment


market returns is provided below.

Investment markets are the main driver of the portfolio’s investment returns. The portfolio’s benchmarkallocation to investment markets is shown in its benchmark asset allocation and ranges below. Thebenchmark asset allocation is invested in growth assets with minimal exposure to defensive assets.








you want a portfolio that invests in growth assets, primarily shares



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



Cash 0% 0-5%Defensive alternatives and other

2% 0-7%


10% 0-15%









Benchmark






MLC Horizon 6 Share PortfolioARSN 097 220 945The graph below shows how broad the range of investment market returns have been over more than100 years. It illustrates that historically the longer the investment time period the narrower the range ofreturns.



% p

a

90%

70%

50%

30%

10%

-10%

-30%




Middle return

Lowest return


1 year return (%) 64% 11% -35% 47% and -17%



M15

380

1-0

819






Management costs:



This is made up of:



Generally calculated on the last day of May and paid within 14 days. Our current practice is to generallydistribute all of the net taxable income of the Fund to investors for each financial year (including any netcapital gains and net gains on currency management). While the Fund is an Attribution Managed Investment

Income distribution

Trust (AMIT), we have the discretion to accumulate income (instead of distributing all of the income) andif we do so, the accumulated income will be reflected in the unit price. However, we intend to continue ourcurrent practice to distribute all of the income (including any capital gains) for each financial year. We'llnotify you if this changes.


MLC Horizon 7 Accelerated Growth PortfolioARSN 102 215 725Aims to outperform the benchmark, before fees, over 5 year periods.

We aim to achieve this return while keeping volatility (movements up and down in value) at levels similarto the benchmark.

While the portfolio isn't managed to achieve a particular return above inflation, an average return of 6.25%pa above inflation (before fees) is consistent with historical long-term returns from investment markets,using an asset allocation similar to the portfolio's. More information about long-term investment


market returns is provided below.

Investment markets are the main driver of the portfolio’s investment returns. The portfolio’s benchmarkallocation to investment markets and gearing level are shown in its benchmark asset allocation and rangesbelow. The benchmark asset allocation is invested in growth assets with minimal exposure to defensive


assets.

Our investment experts actively look for opportunities to provide better returns, or less risk, than thosegenerated by the benchmark asset allocation and to manage the portfolio’s exposure to the risks ofinvesting in markets. Our investment experts do this by:





The portfolio has a target gearing level of 30%. This means for every $1,000 you have invested, the portfoliotargets borrowings of $300. The actual gearing level changes every day as a result of market movements.That’s why the portfolio’s actual gearing level is monitored against its target and the borrowings are regularlymoved back to the target level. To maintain the target gearing level, we may need to adjust the borrowingsas well as buy and sell assets. This increased trading will incur transaction costs and realise taxable gainsand losses. The actual gearing level may move significantly away from the target, without prior notice toyou, for reasons including:

significant market volatility

legislative changes

accessing borrowings, including any lender imposed requirement to repay borrowings, and

changes to gearing costs.

Current gearing levels are available on mlc.com.au


you want to gear a portfolio of growth assets (primarily shares) but don’t want the burden of obtainingand managing your own loan


you want long-term capital growth

you expect growth in the assets’ value to exceed the costs of gearing, and

you’re comfortable with the risks of gearing including extra volatility and increased risk of capital loss.





MLC Horizon 7 Accelerated Growth PortfolioARSN 102 215 725


Defensive alternatives and other

2% 0-7%


5% 0-15%

Listed property securities 0% 0-15%Global shares 71% 50-85%Australian shares 52% 40-65%Gearing* (30%) (23-30%)






*If asset values fall dramatically (such as in unusually adverse market conditions), the portfolio's gearinglevel may rise above 30%.



Benchmark





% p

a

90%

70%

50%

30%

10%

-10%

-30%



Middle return

Lowest return


1 year return (%) 83% 13% -46% 59% and -26%


A13

5628

-081

9








MLC Horizon 7 Accelerated Growth PortfolioARSN 102 215 725Approximately 6 years in 20 yearsEstimated number of negative

annual returns


Management costs:



This is made up of:




Income distribution

Trust (AMIT), we have the discretion to accumulate income (instead of distributing all of the income) andif we do so, the accumulated income will be reflected in the unit price.




National Australia Monthly Income FundARSN 093 198 684

(only for existing investors in the National investment options)

Aims to provide regular monthly income and the potential for some growth over the medium to long term.Investment objective

Invests in a diversified portfolio of income-producing assets. The fund will primarily have exposure toAustralian shares, property securities and fixed income assets. The fund is diversified within these assetclasses and across investment managers. These managers invest in many companies and securities.



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

you want to receive a regular income stream with some tax advantages, and

you want a portfolio with some long-term capital growth potential and can tolerate moderate to largevolatility in returns.


Target asset allocation 50%Australian fixed income

The target asset allocation maychange over time.

15%Australian property securities

35%Australian shares – dividend imputation

We may adjust the targetallocation within these ranges

45–55%Defensive assets

45-55%Growth assets



Management costs - Entry fee option:


1.63% paTOTAL

Up to 1.75% (per contribution)Contribution feeAdditional explanation of fees and

Management costs - Nil entry fee option:costs sections of this PDS.1.99% paManagement fee

1.99% paTOTAL

N/AContribution fee

We’ll calculate and distribute income within 14 days of the end of each month other than June using therates set at the beginning of each quarter. The rates are set based on an estimate of the portfolio’s expectedincome for the year and distributions made to date. We'll set the rate for June each year at 0% while the

Income distribution

Fund is an Attribution Managed Investment Trust (AMIT).

At the end of the financial year if we’ve paid you:

less than your share of the portfolio’s actual income, we’ll pay a further distribution as additional units.This distribution is based on the number of units you hold at 30 June or,

more than your share of the portfolio’s actual income, the difference will be reflected in your AMITMember Annual Statement (AMMA Statement) as a return of capital.


National diversified portfolios

National Australia Balanced FundARSN 093 198 817 (only for existing investors in the National investment options)

Aims to grow your wealth for a high level of expected volatility.Investment objective

The fund is actively managed and broadly diversified within asset classes, across asset classes and acrossinvestment managers. These managers invest in many companies and securities around the world.



you want to invest mainly in growth assets




Target asset allocation 3%Cash

The target asset allocation maychange over time.

15%

8%

Australian fixed income

Global fixed income (hedged)

4%Listed property securities

28%Australian shares

16%Global shares (unhedged)

12%Global shares (hedged)

14%Alternatives and other

We may adjust the targetallocation within these ranges

22–42%Defensive assets

58–78%Growth assets



Management costs - Entry fee option:



This is made up of:



Management costs - Nil entry fee option:

2.55% paManagement fee


This is made up of:

0.05% paPerformance related costs

0.07% paOther indirect costs

2.67% paTOTAL

N/AContribution fee

Generally calculated on the last day of September, December, March and June and paid within 14 days.Income distribution


National diversifiedportfolios

MLC Australian Share Fund ARSN 087 945 293

MLC Property Securities FundARSN 087 944 652

Aims to outperform the S&P/ASX 200 Total ReturnIndex, before fees, over 5 year periods.

Aims to outperform the S&P/ASX 300 A-REIT TotalReturn Index, before fees, over 5 year periods.


The fund invests primarily in companies listed (orexpected to be listed) on the Australian SecuritiesExchange (and other regulated exchanges), and is

The fund invests primarily in Australian propertysecurities, including listed Real Estate InvestmentTrusts and companies across most major listed


typically diversified across major listed industryproperty sectors. It doesn’t invest in direct property,groups. It may have a small exposure to companiesbut may have some exposure to property securitieslisted outside of Australia from time to time.listed outside Australia from time to time.

Foreign currency exposures will generally besubstantially hedged to the Australian dollar.


you want to invest in an actively managedAustralian share portfolio that’s diversified

you want to invest in an actively managed listedproperty securities portfolio that invests in Australia,

across investment managers, industries andcompanies

with some global exposure, and diversifies acrosslisted property sectors and Real Estate InvestmentTrusts you want long-term growth in the value of your

investment and some income, andyou want income and long-term growth in the valueof your investment, and you understand that there can be very large

fluctuations in income and the value of yourinvestment.

you understand that there can be fluctuations inincome and the value of your investment.

S&P/ASX 200 Total Return IndexS&P/ASX 300 A-REIT Total Return IndexBenchmark

Between 6 and 7 years in 20 yearsBetween 6 and 7 years in 20 yearsEstimated number of negativeannual returns

7 years7 yearsMinimum suggested time toinvest


Management costs:Management costs:

1.96% paManagement fee1.85% paManagement feeOther fees & costs also apply. Formore information please refer tothe Fees and other costs and the

1.96% paTOTAL1.85% paTOTAL

Up to 5% (per contribution)Contribution feeUp to 5% (per contribution)Contribution fee

Additional explanation of fees andcosts sections of this PDS.


MLC asset classfunds

MLC Australian Share Fund ARSN 087 945 293

MLC Property Securities Fund ARSN 087 944 652

Generally calculated on the last day of August,November, February and May and paid within 14 days.Our current practice is to generally distribute all of the

Generally calculated on the last day of August,November, February and May and paid within 14 days.Our current practice is to generally distribute all of the

Income distribution

net taxable income of the Fund to investors for eachnet taxable income of the Fund to investors for eachfinancial year (including any net capital gains and netfinancial year (including any net capital gains and netgains on currency management). While the Fund is angains on currency management). While the Fund is anAttribution Managed Investment Trust (AMIT), weAttribution Managed Investment Trust (AMIT), wehave the discretion to accumulate income (instead ofhave the discretion to accumulate income (instead ofdistributing all of the income) and if we do so, thedistributing all of the income) and if we do so, theaccumulated income will be reflected in the unit price.accumulated income will be reflected in the unit price.However, we intend to continue our current practiceHowever, we intend to continue our current practiceto distribute all of the income (including any capitalto distribute all of the income (including any capitalgains) for each financial year. We'll notify you if thisgains) for each financial year. We'll notify you if thischanges.changes.



MLC IncomeBuilderARSN 087 944 287Aims to provide an income stream (excluding capital gains) that grows each year, by investing primarilyin Australian shares.


The fund invests primarily in Australian companies that have the potential to provide future growth individends.


The fund is expected to generate tax-efficient returns by:

investing in companies expected to have high franking levels, and

carefully managing the realisation of capital gains.

The fund is expected to provide returns consistent with investing in a broad range of Australian companies.

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



You can assess performance based on the annual growth in dividends received from the underlyingcompanies.

Benchmark



Management costs:


1.90% paTOTAL

Up to 5% (per contribution)Contribution feeAdditional explanation of fees andcosts sections of this PDS.

Generally calculated on the last day of August, November, February and May and paid within 14 days.Income distribution

The May distribution will be paid in two parts. The first part includes all income such as dividends, interestand non-assessable amounts. You may request to have it paid to your bank account or as additional units.The second part of the distribution is the net taxable realised gains accumulated by the Fund. This is onlypaid as additional units.

Our current practice is to generally distribute all of the net taxable income of the Fund to investors foreach financial year (including any net capital gains and net gains on currency management). While theFund is an Attribution Managed Investment Trust (AMIT), we have the discretion to accumulate income(instead of distributing all of the income) and if we do so, the accumulated income will be reflected in theunit price.



MLC-Vanguard Australian Share Index FundARSN 087 939 919Aims to match the return of the S&P/ASX 200 Total Return Index, before taking into account fees andexpenses.


The fund will hold most of the securities in the Index, allowing for individual security weightings to varymarginally from the Index from time to time. The fund may invest in securities that have been, or areexpected to be, included in the Index.



you want to invest in a portfolio of Australian shares that produces similar returns to the market

you want long-term growth in the value of your investment and some income, and

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


S&P/ASX 200 Total Return Index Benchmark



Management costs:


1.40% paTOTAL



Income distribution

an Attribution Managed Investment Trust (AMIT), we have the discretion to accumulate income (insteadof distributing all of the income) and if we do so, the accumulated income will be reflected in the unit price.




MLC Global Share FundARSN 087 943 682Aims to outperform the MSCI ACWI Net Index ($A), before fees, over 5 year periods.Investment objective

The fund invests primarily in companies listed (or expected to be listed) on share markets anywhere aroundthe 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 investmentmanagers, countries (developed and emerging), industries and companies

you want long-term growth in the value of your investment

you understand that there can be very large fluctuations in income and the value of your investment,and

you’re comfortable having foreign currency exposure.


MSCI ACWI Net Index ($A)Benchmark



Management costs:


2.10% paTOTAL



Income distribution




MLC-Platinum Global FundARSN 087 940 065 (only for existing investors in this fund)

Aims to provide capital growth over the long-term through searching out undervalued listed investmentsaround the world.


The valuation of assets is provided by the custodian, NAB. The assets are valued using the latest availablemarket values from independent data providers and administrators.

Valuation of assets

We provide monthly performance and annual reports for the MLC-Platinum Global Fund which are availableon mlc.com.au

Periodic reporting

The fund primarily invests in listed securities. The fund will ideally consist of 70 to 140 securities thatthe investment manager, Platinum Investment Management Limited trading as Platinum Asset Management(Platinum), believes to be undervalued by the market. Cash may be held when undervalued securities

Investment strategy

cannot be found. Platinum may short sell indices that it considers overvalued. Platinum doesn’t engagein short selling of securities.

Platinum may use derivatives for risk management purposes to protect the fund from either being investedor uninvested, and to take opportunities to increase returns (eg to gain access to markets not readilyavailable to foreign investors, to build a position in selected companies or issues of securities as a short-termstrategy to be reversed when physical positions are purchased, and to create short index positions).

The fund’s currency exposure is actively managed.

This fund is considered a hedge fund by the Australian Securities and Investments Commission becauseit uses some sophisticated investment techniques. More information about this fund is available on theFund Profile Tool on mlc.com.au/fundprofiletool

Investment returns

In Platinum’s opinion, investing in a broad range of companies whose business and growth prospects arebeing inappropriately valued by the market provides a foundation for long-term investment returns.

Investment return assumptions

Investing in the shares of a company is a claim on the underlying profits of a company’s business. Insimple terms, investment returns are determined by amongst other things:

initial valuation

subsequent performance of the business, and

valuation of the company at the end of the period.

The assessment of a company’s future prospects is a very significant and challenging part of the day-to-dayprocess of investing. Not only do general economic conditions play a part, but issues such as the behaviourof competitors, technological change, government regulation and management decisions all have a bearingon the future outcomes for a company. Also understanding the future valuation that a company will attractis no simple task as often this can change quite dramatically with changes in growth rates of earnings.

Diversification guidelines and limits

The fund will have a minimum 65% net equity exposure.

Risks of strategy

You could lose money by investing in the fund and the fund could underperform other investments.Performance may differ significantly from industry benchmarks such as indices issued by MSCI. Youshould expect the fund’s unit price and total return to fluctuate within a wide range. The fund’s performancecould be affected by:






Investment manager risk: The fund’s performance depends on the expertise and investment decisionsof Platinum. Platinum’s opinion about the intrinsic worth of a company or security may be incorrect, thefund’s investment objective may not be achieved and the market may continue to undervalue the securitiesheld by the fund.

Market risk: Security prices may decline over short or extended periods due to general market conditions,including but not limited to, inflation, foreign currency fluctuations and interest rates.

Portfolio asset risk: Investments in equity and equity related securities generally have greater pricevolatility risk than debt securities. The value of securities held in a fund may decline because of the qualityof a company’s management, financial condition, operations and the general health of the sector in whichthe company operates. Share markets can experience exceptionally high levels of volatility affecting thevalue of the securities traded in those markets.

Derivative risk: Investments in derivatives may cause losses associated with changes in market conditions,such as fluctuations in interest rates, equity prices or exchange rates and, changes in the value of a derivativemay not correlate perfectly with the underlying asset. Derivative transactions may be highly volatile andcan create investment leverage, which could cause the fund to lose more than the amount of assets initiallycontributed to the transaction. As Over-the-Counter (OTC) derivatives are customised instruments, thefund may be unable to liquidate the derivate contract at a fair market price within a reasonable timeframe.

Short selling risk: Short selling can be seen as a form of leverage and may magnify the gains and lossesachieved in the fund. While short selling may be used to manage certain risk exposure in the fund, it mayalso have a significantly increased adverse impact on its return. Losses resulting from a short positionmay exceed the amount initially.

Currency risk: Investing in assets denominated in a currency other than Australian dollars may causelosses resulting from exchange rate fluctuations. Platinum may not hedge or any hedging strategiesemployed may not be successful.

Foreign issuer risk: Investments in foreign companies may decline in value because of sovereign, political,economic or market instability; the absence of accurate information about the companies; risks ofunfavourable government actions such as expropriation and nationalisation. Such securities may be lessliquid, more volatile, and harder to value. In times of market disruptions (including but not limited tomarket closures), security prices may be delayed or unavailable. Some countries may have different legalsystems, taxation regimes, auditing and accounting standards with less governmental regulation andtransparency. These risks may be higher when investing in emerging markets.

Liquidity risk: The fund may not be able to purchase or sell a security in a timely manner or at desiredprices or achieve its desired weighting in a security.

Counterparty risk: This is the risk of loss resulting from a counterparty not meeting its obligations dueto a dispute over terms, or the insolvency, financial distress or bankruptcy of a counterparty used byPlatinum.

Global pandemic risk: Health pandemics could significantly affect the industries the fund invests in, aswell as the normal operations of financial markets and the operation of Platinum’s counterparties.

General regulatory and tax risk: This is the risk that a government or regulator may introduce regulatoryand/or tax changes, or a court makes a decision regarding the interpretation of the law, which affects thevalue of a fund’s assets or the tax treatment of a fund and its investors. These changes are monitored byPlatinum and action is taken, where appropriate, to facilitate the achievement of the investment objectivesof the fund. However, Platinum may not always be in a position to take such action.



Risk management strategyPlatinum has a Risk Management Policy which is based on the relevant Australian/New Zealand RiskManagement Standards, ASIC and Australian Securities Exchange (ASX) Corporate Governance Council’sCorporate Governance Principles and Recommendations incorporating a structured approach to managingand reviewing risk.

Platinum may use derivatives for risk management purposes.

Platinum manages risk associated with currency exposure through the use of hedging devices (eg foreignexchange forwards, swaps, non-deliverable forwards and currency options) and cash foreign exchangetrades.

The Investment Manager is Platinum Investment Management Limited trading as Platinum AssetManagement (Platinum) which is based in Australia.

Investment manager

Investment management experienceQualificationsPortfolio manager

13 years, 13 years with PlatinumBComClay Smolinski

The portfolio manager has stock research responsibilities and has ultimate responsibility for theMLC-Platinum Global Fund’s portfolio construction. Investment analysts within the Platinum investmentteam not identified above may share portfolio management responsibilities with the portfolio manager.The level of their portfolio management responsibilities will vary from time to time and will be determinedby Platinum’s Chief Investment Officer. The portfolio manager has responsibility for the implementationof the investment strategy of the fund. The portfolio manager spend as much time as required to accomplishthe investment objectives of the fund.

There have been no adverse regulatory findings against any of the portfolio managers of Platinum.

MLC has appointed Platinum under an Investment Management Agreement. MLC can terminate Platinumat any time by giving 12 months’ notice. This appointment is on an arms-length basis and this agreementincludes no unusual or materially onerous terms.

The MLC-Platinum Global Fund is a managed investment scheme registered with ASIC. MLC InvestmentsLimited is the responsible entity, administrator and issuer of units in the MLC-Platinum Global Fund. Weare responsible for ensuring that the MLC-Platinum Global Fund is operated in accordance with the

Fund structure

constitution and the Corporations Act 2001.

As the responsible entity, we outsource a number of tasks associated with the operation of theMLC-Platinum Global Fund. These arrangements are documented in agreements which describe the termson which services will be provided.

We regularly monitor the provision of services by all relevant parties to ensure compliance with thesearrangements.




Flow of investment money

Investor

MLC Investments Limited (Responsible entity and administrator)

MLC-Platinum Global Fund

NAB (custodian)

The custodianKey Service providers for theMLC-Platinum Global Fund NAB is the custodian of the MLC-Platinum Global Fund. The custodian’s role is to perform services such

as holding the assets of the Fund, providing asset valuations reporting on the MLC-Platinum Global Fund’sassets. The custodian does not issue interests in, or guarantee the performance of the MLC-Platinum GlobalFund.

We have appointed NAB under a custody agreement. We may terminate the agreement at any time byproviding not less than 120 days’ written notice.

The custodian has no supervisory role in relation to the operation of the MLC-Platinum Global Fund andis not responsible for protecting your interests. The custodian has no liability or responsibility to you forany act done or omission made in accordance with the terms of the custody agreement. The custodianmakes no statement in this PDS and has not authorised or caused the issue of it.

The auditor

Ernst & Young is the auditor.

Fees paid to related companies

We use the services of related companies where it makes good business sense to do so and will benefit ourcustomers.

Amounts paid for these services are always negotiated on an arms-length basis.

Appointments of these companies are made in accordance with the requirements of the NAB GroupConflicts of Interest Policy. The responsible entity, custodian and administrator are NAB group companiesand are all based in Australia.

Unit holder’s liability

We own the assets on behalf of the investors. The Fund’s constitution limits unitholder’s liability to theirinvestment in the MLC-Platinum Global Fund. However, we cannot give an absolute assurance that yourliability to the MLC-Platinum Global Fund or any of its creditors is limited in all circumstances, as theissue has not been finally determined by a superior court.



Valuation PolicyValuation, location and custodyof assets The valuation of the assets is provided by NAB in accordance with our Asset Valuation Policy (Valuation

Policy) and the custody agreement between us and NAB. We ensure that all asset valuations are determinedin accordance with product disclosure statements, trust constitution, relevant legislation, standards,guidelines and the directives of the Valuation Policy.

Asset allocation types and ranges

The MLC-Platinum Global Fund invests in international listed equities (Global Shares) in developing andemerging markets and may also hold a tactical allocation of cash from time to time.

The asset allocation ranges are as follows:

65-100%Global shares

0-35%Cash

0-35%Derivatives

The MLC-Platinum Global Fund invests in companies across the globe including emerging markets andfrontier markets. This information is provided in the quarterly report mailed to investors in the fund.Generally, the MLC-Platinum Global Fund will very seldom invest more than 5% of its total Net AssetValue (NAV) in the securities of a single issuer.

The geographical location of invested positions in the MLC-Platinum Global Fund are:

Europe

North America

Asia

Japan

South America

Australia

These may vary from time to time without prior notice to you.

The MLC-Platinum Global Fund primarily invests in international equities. It may make investments incompanies that may not be readily liquidated within 10 days, at the desired price or at the value ascribedto that asset in calculating its most recent NAV.

Liquidity

In addition to the above:

the fund’s total market exposure to any one company or trust cannot exceed 5% of the marketcapitalisation of that company or trust, and

the market value of securities held or sub-underwritten in any one company or trust at the time ofpurchase is not to exceed 10% of the market value of the MLC-Platinum Global Fund.

The MLC-Platinum Global Fund does not use leverage, other than what is disclosed in the derivatives andshort selling sections below.

Leverage

Platinum may use derivatives:Derivatives

for risk management purposes;

to take opportunities to increase returns;

to create a short position in a security; and




to aid in the management of fund cash flows (eg some stock markets require

pre-funding of stock purchases that may be avoided through the use of derivatives).

Types of derivatives used

Platinum currently uses the following derivatives: futures, options, swaps (currency and equity), creditdefault swaps and related instruments. Platinum uses both OTC and exchange traded derivatives (ie thosetraded on a registered derivatives exchange).

Criteria for engaging derivative counterparties

OTC derivative transactions may only be entered into with counterparties that we have approved.

Consideration is given to the financial position and credit rating of the counterparty.

Counterparties are engaged through standard market contracts such as ISDA Master Agreements.

Trading OTC derivatives generally requires the lodgement of collateral (also known as ‘credit support’,such as a margin or guarantee) with the counterparty. This gives rise to counterparty risk. Financialtransactions that are conducted via the OTC market generally carry greater counterparty risk than securitiestraded on a recognised exchange (where the other party to the transaction is the exchange’s clearing house).

Platinum may engage in short selling of indices but does not engage in short selling of securities.Short selling

Rationale

The rationale behind short selling is to profit from a fall in the price of a particular index.

Risks

In taking a short position, Platinum expects the asset to depreciate although there is a risk that the assetcould appreciate. Unlike a long security, losses can exceed the amount initially invested.

Risk management

The risks associated with short selling are managed in the same way as the risks associated with holdinga long security, that is, thorough research, daily reporting and ongoing monitoring of positions held.

Short selling example (loss)

Platinum short sells via a futures contract 1,000 contracts of ABC index @ $100 and closes the positionwhen the contract price rises to $120 by entering into an equal and opposite trade.

Total income/ cost ($)MultiplierContract price($)

No ofcontracts

Trade

1,000,000101001,000Opening sell

(200)Borrowing Cost andCommission

250Interest receivable

(1,200,000)101201,000Closing buy

199,950Loss



Short selling example (profit)

Platinum short sells via a futures contract 1,000 contracts of ABC index @ $100 and closes the positionwhen the contract price falls to $80.

Total income/cost ($)MultiplierContractprice ($)

No ofcontracts

Trade

1,000,000101001,000Opening sell

(200)Borrowing cost andcommission

250Interest receivable

(800,000)10801,000Closing buy

200,050Profit

All complete withdrawal requests received before we close off processing for the day (generally 3 pmSydney time) will usually be processed using the unit price for that business day (which is calculated asat the end of the day). See the section under ‘Additional information you need to know’ for more information

Withdrawals

on accessing your money and buying and selling investments.

MSCI All Country World Net Index ($A).Benchmark



Management costs:


2.23% paTOTAL



Income distribution


However, we intend to continue our current practice to distribute all of the income (including any capitalgains) for financial each year. We'll notify you if this changes.



National Australia Dividend ImputationFundARSN 093 198 602

National Australia Property FundARSN 093 198 513(only for existing investors in the Nationalinvestment options) (only for existing investors in the National

investment options)

Aims to provide a tax-efficient income stream andgrowth over the long term.

Aims to provide an income stream and growth over timefrom a portfolio of listed property securities.


Primarily invests in a range of shares listed on theAustralian Securities Exchange with a bias to those whichare expected to deliver an income stream with some tax

The fund invests primarily in Australian propertysecurities, including listed Real Estate Investment Trustsand companies across most major listed property sectors.

How the investmentoption is managed

advantages through the benefits of dividend imputation.It doesn't invest in direct property, but may have someexposure to property securities listed outside of Australiafrom time to time.

Foreign currency exposures will be substantiallyhedged to the Australian dollar.

The investment optionmay be suited to you if...

you want to invest in an actively managed Australianshare portfolio that’s diversified across industries andcompanies

you want to invest in an actively managed propertysecurities portfolio that invests in Australia, with someglobal exposure, and diversifies across listed propertysectors and Real Estate Investment Trusts you want long-term growth in the value of your

investment and some income, andyou want income and long-term growth in the valueof your investment, and you understand that there can be very large

fluctuations in income and the value of yourinvestment.

you understand that there can be fluctuations inincome and the value of your investment.

7 years7 yearsMinimum suggestedtime to invest

Between 6 and 7 years in 20 yearsBetween 6 and 7 years in 20 yearsEstimated number ofnegative annual returns


Management costs - Entry fee option:Management costs - Entry fee option:

1.98% paManagement fee1.98% paManagement feeOther fees & costs alsoapply. For more informationplease refer to the Fees and


Up to 4% (per contribution)Contribution feeUp to 4% (per contribution)Contribution feeother costs and the

Management costs - Nil entry fee option:Management costs - Nil entry fee option:Additional explanation offees and costs sections of 2.55% paManagement fee2.55% paManagement feethis PDS.


N/AContribution feeN/AContribution fee

Generally calculated on the last day of September,December, March and June and paid within 14 days.

Generally calculated on the last day of September,December, March and June and paid within 14 days.

Income distribution


National asset class funds

MLC Cash FundARSN 087 940 467Aims to outperform the Reserve Bank of Australia’s Cash Rate Target, before fees, over 1 year periods.Investment objective

The fund invests in deposits with banks (including National Australia Bank) and other comparable highquality securities. It’s possible, from time to time, for a high proportion of the fund to be invested insecurities issued by one bank.


MLC Investments Limited guarantees the value of your investment in the MLC Cash Fund.

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

Reserve Bank of Australia’s Cash Rate TargetBenchmark

No minimumMinimum suggested time toinvest

Less than 1 year in 20 yearsEstimated number of negativeannual returns


Management costs:


1.06% paTOTAL

NilContribution feeAdditional explanation of fees andcosts sections of this PDS.

Income is generally calculated daily and is paid within 14 days of the last day of August, November, Februaryand May.

Income distribution


Cash

If you’re investing through MLCMasterKey Investment Service, MLCMasterKey Investment ServiceFundamentals or any other InvestorDirected Portfolio Service, you’ll needto read your corresponding FinancialServices Guide for transactioninformation.

Eligibility

You or your financial adviser may give usinstructions, directions or requests for theinvestment options to be acquired.

This offer is made in Australia in line withAustralian laws and will be regulated bythese laws.

Receiving distribution income

Distributions are generally calculatedbased on the investment option’s netincome at the end of the distributionperiod divided by the number of units onissue 1.

Most investment options will generallydistribute income throughout the year.

You can manage this income by:

reinvesting it in the same investmentoption

investing in the MLC Cash Fund (onlyavailable if you are invested in a MLCinvestment option), or

having it paid into your bank account.

Distributions paid are based on thenumber of units you hold at the end of adistribution period, except for the MLCCash Fund where distributions paid arealso based on the time spent in theinvestment option.

We have the ability to accumulate income(instead of distributing all of the income)where the Fund is an Attributed ManagedInvestment Trust (AMIT) (see furtherunder 'AMIT Regime' section). Theaccumulated income will be reflected inthe unit price. We currently intend tocontinue to distribute all of the incomefor the year for relevant Funds. We'llnotify you if this changes.

Investing in the investment options mayresult in a different income and taxoutcome to investing in assets directly.For example, as an investor in theinvestment options your returns may beimpacted by other investors' investmentapplications and withdrawals, whichrequire the investment options to buyand sell assets.

Adding to your account

If you already have an investment in theMLC MasterKey Unit Trust or through anInvestor Directed Portfolio Service youcan add or change your investments,however some restrictions may apply.

You can make one-off investments bydirect debit, or cheque.

You can also set up a Regular InvestmentFacility for monthly investments fromyour bank account.

We can only process additionalinvestments when we receive all requiredinformation. Investments we can’tprocess will be held in trust for up to 30days. Any interest earned during this timewill be kept by MLC.

® Registered to BPAY Pty Ltd ABN 69 079137 518

Accessing your money

You can request a partial or fullwithdrawal from your account at anytime.

You can also set up a Regular WithdrawalFacility for monthly payments to yourbank account.

You can elect to increase your regularinvestment or withdrawal facilityannually at either a rate of 1% to 5% or10% per annum.

Switching

A switch is a withdrawal from oneinvestment option and an investment inone or more other investment options.

If you hold a direct investment in anyMLC investment option you can switchto another MLC investment option.

If you hold a direct investment in anyNational investment option you can onlyswitch to the same fee option of anotherNational investment option.

Before you switch, please make sure youhave the latest copy of this ProductDisclosure Statement available onmlc.com.au or you can request a papercopy by calling us.

1 Distributions in the National Australia Monthly Income Fund are based on a nominated payment rate.


Additional informationyou need to know


Buying and selling investments

Usually, if you’re buying or selling units,we’ll process your request on the sameday.

We may refuse or vary the terms forprocessing a request in certaincircumstances. The consequences are thatthere are times when your instructionmay not be able to be actioned. The unitprices for a withdrawal will be thoseeffective at the time that units areactually redeemed.

We may also change our processes andprocedures.

All complete transaction requestsreceived before we close off processingfor the day (generally 3 pm Sydneytime) will usually be processed usingthe unit price for that business day(which is calculated as at the end ofthe day).

Resolving complaints

If you have a complaint, we can usuallyresolve it quickly over the phoneon 132 652, or if you’d prefer to put yourcomplaint in writing you can email us orsend us a letter. We’ll conduct a reviewand provide you a response in writing.For more information, visit mlc.com.au/complaint

If you’re not satisfied with our resolution,or we haven’t responded to you in 45days, you can lodge a complaint with theAustralian Financial ComplaintsAuthority (AFCA).

AFCA provides an independent financialservices complaint resolution processthat’s free to consumers. You can contactAFCA in writing to GPO Box 3,Melbourne, VIC 3001, at theirwebsite (afca.org.au), by emailat [email protected], or by phone on 1800 931 678 (free call).

If you're invested via an IDPS you shouldcontact your IDPS operator about anycomplaint you may have.

Units and unit prices

When money is paid into your account,units are allocated to your account andwhen money is paid out, units arededucted from your account.

The value of your account is based on:

the number of units in your choseninvestment option, and

the prices of those units.

The overall value of your account willchange according to the unit prices andthe number of units you hold.

We calculate the unit prices as at the endof each business day and use robust unitpricing practice to do this.

Each unit price will reflect theperformance of the underlying assets,income earned, fees, expenses and taxespaid and payable.

The performance of the underlying assetsis influenced by movements ininvestment markets such as local andoverseas share markets, bond andproperty markets.

If you’d like a copy of our unit pricingpolicy, please call us. Our unit pricingphilosophy is available on mlc.com.au

Unitholders' liability

The investment options’ underlyingassets are owned by MLC on behalf ofinvestors. The investment options’constitutions limit unitholders’ liabilityto their investment in the investmentoption. However, we cannot give anabsolute assurance that your liability tothe investment option or any creditor ofthe investment options (for gearedinvestment options) is limited in allcircumstances, as the issue has not beenfinally determined by a superior court.

Can you change your mind?

The right to ‘cool off’ doesn’t apply.


Additionalinformation youneed to know

https://www.mlc.com.au/adviser/nav_top/contact-us

http://afca.org.au/

mailto:[email protected]


Privacy

We collect your personal informationfrom you directly wherever we can, butin some cases we may collect it from thirdparties such as your financial adviser. Wedo this to determine your eligibility andto administer the product. If personalinformation is not provided, we may notbe able to provide you the product, oradminister it appropriately. We maycollect information about you becausewe're required or authorised by law tocollect it. There are laws that affectfinancial institutions, including companyand tax law, which require us to collectpersonal information. For example, werequire personal information to verifyyour identity under Anti-MoneyLaundering law.

We may disclose your personalinformation to other NAB Groupmembers, and to external partiesincluding MLC Limited for purposes thatinclude: account management, productdevelopment and research. For moreinformation referto mlc.com.au/privacynotification. Forthese reasons, we may also need to shareyour information with organisationsoutside Australia - a list of those countriesisat nab.com.au/privacy/overseas-countries-list.We, other NAB Group members, and MLCLimited may use your personalinformation to contact you aboutproducts and for marketing activities. Youcan let us know at any time if you nolonger wish to receive these directmarketing offers by contacting us.

More information about how we collect,use, share and handle your personalinformation is in our Privacy Policy(mlc.com.au/privacy), including how toaccess or correct information we collectabout you and how to make a complaintabout a privacy issue. Contact us for apaper copy or if you have any questionsor comments.

Information we may need fromyou

We’re required to know who you are andmay ask you to provide information anddocuments to verify your identity or geta better understanding about you, yourrelated parties and your transactions.You’ll need to provide this in thetimeframe requested. If we’re concernedthat processing a request may cause us tobreach our legal obligations (such asanti-money laundering and sanctions),we may delay or refuse your request,restrict access to funds or close youraccount (where permissible under anyapplicable law).

Tax considerations

Investing in a managed investmentscheme is likely to have tax consequencesfor you. The unit price of units issuedbefore a distribution will include incomeaccumulated in the investment option.The income that has been accumulatingwill generally be distributed. You maypotentially have taxation liabilities onthat income. Depending on an investor’scircumstances, a revenue or capital gainor loss may arise when units in theinvestment option are sold, switched orredeemed. Because this PDS is not a taxguide and tax laws are complex andchange from time to time, we stronglyrecommend that you obtain professionaltax advice in relation to your ownpersonal circumstances. This applieswhether you are an Australian residentor a non-resident for tax purposes.

As tax is complex, we recommend thatyou contact your registered tax agentor the Australian Tax Office atato.gov.au


https://www.mlc.com.au/content/dam/mlc/documents/pdf/help/mlc_insurance_privacy_notification_flyer.pdf

https://www.nab.com.au/common/privacy-policy/overseas-countries

https://www.mlc.com.au/personal/nav_footer/privacy-policy/mlc-privacy-policy

AMIT Regime

A new regime for the taxation of managedinvestment trusts (AMIT regime) wasintroduced on 5 May 2016.

The AMIT regime is designed to providegreater flexibility for managed funds andfairness for their investors.

We have elected for the AMIT regime toapply to the funds from the 2017/18financial year and later years of income.

Under the AMIT regime, investors aretaxed on income that is attributed tothem on a 'fair and reasonable basis' foreach financial year.

Under the AMIT regime it’s not necessaryfor a fund to distribute all its income(including capital gains) to ensure thatthe fund doesn’t pay tax. Instead, we havethe discretion to accumulate income1 inthe fund and it would be reflected in theunit price. Taxable income is attributedto investors, even if a fund doesn’tdistribute its income.

However, we intend to continue ourcurrent practice of distributing all of afund’s income (including any capitalgains) to our investors each financial year.We'll notify you if this changes.

The details of the taxable incomeattributed to you will be set out in anAMIT Member Annual Statement (AMMAStatement), which will contain all

necessary tax information. The taxpayable (if any) depends on yourindividual tax profile and applicable taxrate.

If you disagree with our attribution oftaxable income, you can object to theCommissioner of Taxation. If you decideto take this course, it is important thatyou obtain professional tax and legaladvice. The Constitution of each Trustprovides for you to give us notice beforemaking an objection, so please do so andwe'll work with you to try to resolve theissue.

Keeping you informed

We'll provide you with the followinginformation so you can stay informedabout your investments and any materialchanges that may arise:

quarterly statements of your accountwith details of investments held andtransactions made over the reportingperiod as well as distribution detailsand performance information

an annual tax statement (or AMMAstatement if applicable) which willprovide details of the share of incomedistributed or attributed to you, asapplicable, during the financial year toassist you in completing your tax return

a distribution statement with detailsof distributions paid to your NationalAustralia Monthly Income Fund

confirmation of any one-offinvestment, switch or withdrawaltransactions you make on your account

an Annual Financial Report containingthe financial statements for theinvestment options, and

information in relation to any materialchanges to MLC MasterKey UnitTrust or the investment options.

We may provide this information to youby mail, email or by making theinformation available on mlc.com.au.We'll let you know when informationabout your account has been madeavailable online. If you prefer to receiveupdates about your account by mail,please let us know.

mlc.com.au allows you to update youraccount details and track yourinvestments online

1 This power of accumulation does not apply to the National Australia Monthly Income Fund, National Australia Balanced Fund, NationalAustralia Property Fund, National Australia Dividend Imputation Fund or the MLC Cash Fund.


Additionalinformation youneed to know



DID YOU KNOW?Small differences in both investmentperformance and fees and costs canhave a substantial impact on yourlong term returns.

For example, total annual fees andcosts of 2% of your account balancerather than 1% could reduce yourfinal return by up to 20% over a 30year period (for example, reduce itfrom $100,000 to $80,000).

You should consider whetherfeatures such as superior investmentperformance or the provision ofbetter member services justify higherfees and costs.

You may be able to negotiate to paylower contribution fees andmanagement costs where applicable.Ask the fund or your financialadviser.

TO FIND OUT MOREIf you'd like to find out more, or seethe impact of the fees based on yourown circumstances, the AustralianSecurities and InvestmentsCommission (ASIC) website(www.moneysmart.gov.au) hasa managed funds fee calculator to helpyou check out different fee options.

If you have a MLC MasterKeyInvestment Service account, MLCMasterKey Investment ServiceFundamentals account, or (or anyother Investor Directed PortfolioService) account, you’ll also need torefer to the corresponding FinancialServices Guide.If you’re investing in the MLCMasterKey Unit Trust through anInvestor Direct Portfolio Service (IDPS),you’ll only be charged managementcosts of each investment option onceif these fees are also disclosed in theIDPS Financial Services Guide.

This document shows fees and other coststhat you may be charged. These fees andcosts may be deducted from your money,from the returns on your investment orfrom the assets of the managedinvestment scheme as a whole.

Taxes are set out in another part of thisdocument.

You have two different payment options:

(a) to pay contribution fees upfront, atthe time when you make eachinvestment into the fund, or

(b) to pay contribution fees later (forexample, on the termination of yourinvestment or by way of otherincreased fees).

Note: You may pay more in total fees ifyou choose to pay contribution fees later.

You should read all the information aboutfees and costs because it is important tounderstand their impact on yourinvestment.

Fees and costs for each investment optionare set out on pages 61 to 62 and in theInvestment portfolio section on pages 14to 48.

On the following pages, all fees andcharges are shown inclusive of Goods andServices Tax and net of Reduced InputTax Credits (where available).


Fees andother costs

https://www.moneysmart.gov.au

Fees and costs for each investment option are set out in the investment portfolio section of this document. It is important that youunderstand these fees and costs when choosing an investment option.

MLC investment options

How and when paidAmountType of fee or cost

Fees when your money moves in or out of the MLC MasterKey Unit Trust

Not applicableNilEstablishment fee

The fee to open your investment

The contribution fee is calculated as a percentageof each amount invested and deducted from yourmoney before it is invested.

0–5%

The contribution fee you pay for specificinvestment options is shown in the Investmentportfolios section on pages 14 to 48.

Contribution fee1

The fee on each amountcontributed to your investment

A lower contribution fee can be negotiated withyour financial adviser.1

MLC will only charge a maximum contribution feefor the MLC investment options of 5% percontribution.

There is no withdrawal feeNilWithdrawal fee

The fee on each amount you takeout of your investment

Not applicableNilExit fee

The fee to close your investment


Fees and othercosts



Management costs1,2

The fees and costs for managing your investment

Management fees are reflected in the daily unitprice for each investment option.

Management fees range between 1.06% pa and2.23% pa.

Management fees3

The amount you pay for specific investmentoptions is shown in the Investment portfoliosection on pages 14 to 48.

Management fees may be increased up to amaximum of 3.08% pa.

A fee refund may apply depending on thecombined account balances you and any eligiblelinked investor have in MLC MasterKeyaccounts.1 The fee refund is detailed in the‘Additional explanation of fees and costs’ sectionon page 59.

Indirect costs are reflected in the daily unit pricesfor each investment option.

Indirect costs range between 0.00% pa and 0.10%pa.

Indirect costs

The amount you pay for specific investmentoptions is shown in the Investment portfoliosection on pages 14 to 48.

Service fees4

Not applicableNilSwitching fee

The fee for changing investmentoptions

1 See the Additional explanation of fees and costs section for further information.2 Rounded to two decimal places.3 This fee includes an amount payable to a financial adviser. See 'Financial adviser remuneration' section in Additional explanation offees and costs for further information about adviser remuneration.4 Other service fees may apply. See the Additional explanation of fees and costs section.


National investment options


Entry Fee OptionNil Entry Fee Option

Fees when your money moves in or out of the MLC MasterKey Unit Trust

Not applicableNilNilEstablishment fee

The fee to open yourinvestment

The contribution fee is calculatedas a percentage of each amountinvested and deducted from your

0-4%

The contribution fee you pay forspecific investment options isshown in the Investment

Nil


Contribution fee1

The fee on each amountcontributed to yourinvestment money before it is invested.

A lower contribution fee can benegotiated with your financialadviser.1

portfolios section onpages 14 to 48.

An additional contribution fee(maximum of 2.25%) may becharged if switching from the

portfolios section onpages 14 to 48.

Monthly Income Fund to anotherNational investment option.

MLC will only charge a maximumcontribution fee for the Nationalinvestment options of 4% percontribution.

There is no withdrawal feeNilNilWithdrawal fee

The fee on each amountyou take out of yourinvestment

Not applicableNilNilExit fee

The fee to close yourinvestment


Fees and othercosts

National investment options


Entry Fee OptionNil Entry Fee Option

Management costs1,2

The fees and costs for managing your investment

Management fees are reflected inthe daily unit price for eachinvestment option.

Management fees range between1.63% pa and 1.98% pa


Management fees range between1.99% pa and 2.55% pa


Management fees3

portfolios section onportfolios section onpages 14 to 48.pages 14 to 48.

Management fees (less recoverableexpenses) may be increased up toa maximum of 2.00% pa.

Management fees (less recoverableexpenses) may be increased up toa maximum of 2.00% pa

A fee refund may apply dependingon the combined account balancesyou and any eligible linked

A fee refund may apply dependingon the combined account balancesyou and any eligible linked

investor have in MLC MasterKeyinvestor have in MLC MasterKeyaccounts.1accounts.1

The fee refund is detailed in theAdditional explanation of fees andcosts’ section on page 59.

The fee refund is detailed in theAdditional explanation of fees andcosts’ section on page 59.

Indirect costs are reflected in thedaily unit prices for eachinvestment option.

Indirect costs range between0.00% pa and 0.12% pa

The amount you pay for specificinvestment options is shown inthe Investment portfolio section

Indirect costs range between0.00% pa and 0.12% pa

The amount you pay for specificinvestment options is shown inthe Investment portfolio section

Indirect costs

on pages 14 to 48.on pages 14 to 48.

Service fees4

Not applicableNilNilSwitching fee

The fee for changinginvestment options

1 See the Additional explanation of fees and costs section for further information.2 Rounded to two decimal places.3 This fee includes an amount payable to a financial adviser. See 'Financial adviser remuneration' section in Additional explanation offees and costs for further information about adviser remuneration.4 Other service fees may apply. See the Additional explanation of fees and costs section.


Example of annual fees and costs

This table gives an example of how the fees and costs in the MLC Horizon 4 Balanced Portfolio for the MLC MasterKey Unit Trust canaffect your investment over a 1 year period. You should use this table to compare this product with other managed investment products.

BALANCE OF $50,000 WITH A CONTRIBUTION OF $5,000 DURING YEAR 1EXAMPLE – MLC HORIZON 4 BALANCEDPORTFOLIO

For every additional $5,000 you put in, you will be charged between $0 and $250.0–5%Contribution fees2

And, for every $50,000 you have in the MLC Horizon 4 Balanced Portfolio you willbe charged $995 each year.

1.99%PLUS Management costs2

$945+$50=$995

1.89%0.10%1.99%

Management feeIndirect costsTotal

If you had an investment of $50,000 at the beginning of the year and you put inan additional $5,000 during that year, you would be charged fees of from:

EQUALS cost of MLC Horizon 4 BalancedPortfolio

$995 to $1,245*

What it costs you will depend on the investment option you choose and the feesyou negotiate.

* Additional fees may apply:

Establishment fee — $0And, if you leave the managed investment scheme early, you may also be charged exit fees of 0% of your total account balance ($0 forevery $50,000 you withdraw)

1 This example assumes the $5,000 contribution occurs at the end of the year.2 These costs include an amount payable to a financial adviser. See Additional explanation of fees and costs for further informationabout adviser remuneration.

This table gives an example of how the fees and costs in MLC IncomeBuilder for the MLC MasterKey Unit Trust can affect your investmentover a 1 year period. You should use this table to compare this product with other managed investment products.

BALANCE OF $50,000 WITH A CONTRIBUTION OF $5,000 DURING YEAR 1EXAMPLE – MLC INCOMEBUILDER

For every additional $5,000 you put in, you will be charged between $0 and $250.0–5%Contribution fees2

And, for every $50,000 you have in the MLC IncomeBuilder you will be charged$950 each year.

1.90%PLUS Management costs2

If you had an investment of $50,000 at the beginning of the year and you put inan additional $5,000 during that year, you would be charged fees of from:

EQUALS cost of MLC IncomeBuilder

$950 to $1200*

What it costs you will depend on the investment option you choose and the feesyou negotiate.

*Additional fees may apply:

Establishment fee — $0And, if you leave the managed investment scheme early, you may also be charged exit fees of 0% of your total account balance ($0 forevery $50,000 you withdraw)

1 This example assumes the $5,000 contribution occurs at the end of the year.2 These costs include an amount payable to a financial adviser. See Additional explanation of fees and costs for further informationabout adviser remuneration.


Fees and othercosts

Fee refund

The fee refund is based on the combinedaccount balances you, and any eligiblelinked investor have, in MLC MasterKeyaccounts.

Calculated on your monthly accountbalance and paid quarterly, the fee refundis:

0.17% pa for combined accountbalances of between $200,000 and lessthan $400,000

0.32% pa for combined accountbalances $400,000 and over.

Your holding in the MLC Cash Fund isincluded in the total balance used tocalculate your refund. However there isno refund paid for the MLC Cash Fund.

To receive the fee refund, your accountmust be open at the time the refund ispaid. The fee refund is subject to change.

Management costs

The management costs are fees and costsfor investing the assets of eachinvestment option.

The management costs do not includebuy/sell spreads, borrowing costs ortransaction costs.

Management costs are made up of theManagement fee and indirect costs (whereapplicable).

Management fee

The Management fee includes feescharged by MLC, fees paid to investmentmanagers appointed directly by MLC andother expenses incurred in operating theinvestment option such as custody costs,registry costs, auditing fees and tax returnfees.

These costs and expenses are notcurrently an additional cost to you norare they recovered from the respectiveinvestment option. We may decide in thefuture to recover other expenses directlyfrom the investment option in additionto the Management fee.

The Management fee also includes anyasset based commissions payable to yourfinancial adviser. Please see page 64 forfurther information about adviserremuneration.

Indirect costs

The investment options may also incurcosts and expenses that won’t be chargedas a Management fee but are expected toreduce the net return of the investmentoption. These indirect costs are reflectedin the daily unit price and any reportingon the performance of each investmentoption.

Indirect costs may be made up of:

Performance related costsPerformance related costs are amountsthat investment managers may chargewhen their performance exceeds aspecified level. This is independent ofthe overall performance of investmentoption and therefore the amounts maybe payable to the investment managerseven if investment option itselfproduces negative performance.Different performance related costsmay be charged by differentinvestment managers and will varydepending upon the investmentmanagers’ performance.

Other indirect costsInclude any other investment managerexpense recoveries and managementcosts of underlying investmentmanagers.

Indirect costs are reflected in the dailyunit price and any reporting on theperformance of the investment option.They may vary from time to time and aresubject to change for a variety of reasons,including performance or when changesare made to the asset allocation of theinvestment option. You will not be givenadvance notice of any changes to indirectcost amounts. You should referto mlc.com.au for updated amounts.

Where applicable, the indirect costs foreach investment option are set out in theinvestment option profile section of thisPDS. The amounts are based on actualcosts incurred for the previous financialyear and involve estimates whereinformation was unavailable at the datethat the PDS was issued. For all MLCinvestment options, the previousfinancial year end date is 31 May 2019.For National investment options thefinancial year end date is 30 June 2019.

A breakdown of performance related costsand other indirect costs are shown foreach investment option where these costsapply. Where we expect that indirect costsare likely to be materially different fromthe amounts set out in the PDS, we havenoted this in the applicable investmentoption profiles.

Importantly, past indirect costs are not areliable indicator of future indirect costs.


Additional explanationof fees and costs


Transaction costs

When assets in an investment option, orin underlying investments, are bought orsold, costs such as brokerage, stamp dutyand settlement costs are incurred. Costsmay also be incurred when the marketprocess for purchasing assets causes theprice paid to be higher than the value ofthe assets immediately after the purchasetransaction, for example, where bid/askspreads are incurred.

Some or all of these costs may berecovered by a buy-sell spread which is acost you may incur when you buy or sellunits in the investment option.

Any transaction costs not recovered by abuy-sell spread reduce the net return ofthe investment option. These amountsare reflected in the daily unit price andany reporting on the performance of theinvestment option.

The table on page 61 sets out the total(gross) transaction costs incurred by eachinvestment option, the amount oftransaction costs that have beenrecovered by a buy/sell spread and theremaining amounts that have reducedthe return of the investment option (nettransaction costs).

The transaction cost amounts are basedon actual costs incurred for the previousfinancial year and involve estimateswhere information was unavailable at thedate that the PDS was issued. For MLCinvestment options, the previousfinancial year end date is 31 May 2019.For National investment options thefinancial year end date is 30 June 2019.Where we expect that transaction costsare likely to be materially different fromthe amounts set out in the PDS, this willbe noted in the table on page 61.

No part of the transaction costs (includingbuy-sell spreads) are paid to us or anyinvestment managers.

Transaction costs are an additional costto you and may change without priornotice to you.

Importantly, past transaction costs arenot a reliable indicator of futuretransaction costs.

Borrowing (gearing) costs

Borrowing costs (or gearing costs) may beincurred in a number of circumstances,including (but not limited to) wheremoney is borrowed to purchase an assetand where securities are borrowed as partof an investment option’s investmentstrategy. Borrowing costs are generallypaid to third parties such as banks,providers of a margin lending facility andprime brokers and may include upfrontcosts to establish the arrangement andongoing costs like interest payments.

These costs are not included in themanagement costs but are deducted fromthe assets of the investment option andreduce the unit price at the time they areincurred. Borrowing costs may rise andfall over time, and will depend on the levelof borrowing, the interest amount andother amounts paid to lenders.

The table on page 61 also sets out theestimated borrowing costs for eachinvestment option. The amounts arebased on actual costs incurred for theprevious financial year and involveestimates where information wasunavailable at the date that the PDS wasissued. For MLC investment options, theprevious financial year end date is 31 May2019. For National investment optionsthe financial year end date is 30 June2019. Where we expect that borrowingcosts are likely to be materially differentfrom the amounts set out in the PDS, thiswill be noted in the table on page 61.

Importantly, past borrowing costs are nota reliable indicator of future borrowingcosts.


Additionalexplanation of feesand costs

(D)Estimated

borrowing costsfor the previousfinancial year

(C = A – B)Estimated

transaction costsreducing return of

the investmentoption (net

transaction costs)

(B)Estimated

transaction costsrecovered frombuy/sell spread

(A)1

Estimated total(gross) transaction

costs for theprevious financial

year

Investment option

0.00%0.25%0.00%0.25%MLC Horizon 1 Bond Portfolio

0.03%0.15%0.01%0.16%MLC Horizon 2 Income Portfolio

0.05%0.16%0.01%0.17%MLC Horizon 3 Conservative Growth Portfolio

0.05%0.15%0.00%0.15%MLC Horizon 4 Balanced Portfolio

0.04%0.12%0.02%0.14%MLC Horizon 5 Growth Portfolio

0.03%0.13%0.00%0.13%MLC Horizon 6 Share Portfolio

1.07%0.13%0.02%0.15%MLC Horizon 7 Accelerated Growth Portfolio

0.00%0.06%0.01%0.07%MLC Property Securities Fund

0.00%0.11%0.02%0.13%MLC Australian Share Fund

0.00%0.03%0.04%0.07%MLC IncomeBuilder

0.00%0.00%0.01%0.01%MLC-Vanguard Australian Share Index Fund

0.00%0.07%0.02%0.09%MLC Global Share Fund

0.00%0.11%0.00%0.11%MLC-Platinum Global Fund

0.00%0.00%0.00%0.00%MLC Cash Fund

0.00%0.06%0.01%0.07%National Australia Monthly Income Fund– Entry Fee Option

0.00%0.07%0.00%0.07%National Australia Monthly Income Fund – Nil Entry FeeOption

0.05%0.15%0.00%0.15%National Australia Balanced Fund – Entry Fee Option

0.05%0.15%0.00%0.15%National Australia Balanced Fund– Nil Entry Fee Option

0.00%0.07%0.00%0.07%National Australia Property Fund– Entry Fee Option

0.00%0.06%0.01%0.07%National Australia Property Fund– Nil Entry Fee Option

0.00%0.06%0.02%0.08%National Australia Dividend Imputation Fund– Entry Fee Option

0.00%0.06%0.02%0.08%National Australia Dividend Imputation Fund– Nil Entry Fee Option

1 Estimate costs are based on each investment option's net asset value

These costs are not included in the management costs and are an additional cost to you. No part of the transaction costs are paid to usor any investment managers.

For all investment options excluding the National investment options, the previous financial year end date is 31 May 2019. For Nationalinvestment options the financial year end date is 30 June 2019.


Buy/Sell Spreads

You incur the buy/sell spread when you buy or sell units in the investment option. The current buy/sell spreads for each investmentoption are shown below. The table below also shows, by way of example, the buy/sell spread amount you will incur for every $5,000you contribute to, or withdraw from, each investment option.

$5,000withdrawal

$5,000contribution

Sell spreadBuy spreadInvestment option

$0.00$0.000.00%0.00%MLC Horizon 1 Bond Portfolio

$2.50$2.500.05%0.05%MLC Horizon 2 Income Portfolio

$2.50$2.500.05%0.05%MLC Horizon 3 Conservative Growth Portfolio

$2.50$5.000.05%0.10%MLC Horizon 4 Balanced Portfolio

$2.50$5.000.05%0.10%MLC Horizon 5 Growth Portfolio

$5.00$5.000.10%0.10%MLC Horizon 6 Share Portfolio

$5.00$7.500.10%0.15%MLC Horizon 7 Accelerated Growth Portfolio

$5.00$5.000.10%0.10%MLC Property Securities Fund

$7.50$7.500.15%0.15%MLC Australian Share Fund

$10.00$10.000.20%0.20%MLC IncomeBuilder

$2.50$2.500.05%0.05%MLC-Vanguard Australian Share Index Fund

$2.50$5.000.05%0.10%MLC Global Share Fund

$7.50$7.500.15%0.15%MLC-Platinum Global Fund

$0.00$0.000.00%0.00%MLC Cash Fund

$0.00$7.500.00%0.15%National Australia Monthly Income Fund– Entry Fee Option

$0.00$7.500.00%0.15%National Australia Monthly Income Fund– Nil Entry Fee Option

$0.00$7.500.00%0.15%National Australia Balanced Fund– Entry Fee Option

$0.00$7.500.00%0.15%National Australia Balanced Fund– Nil Entry Fee Option

$0.00$12.500.00%0.25%National Australia Property Fund– Entry Fee Option

$0.00$12.500.00%0.25%National Australia Property Fund– Nil Entry Fee Option

$7.50$7.500.15%0.15%National Australia Dividend Imputation Fund– Entry Fee Option

$7.50$7.500.15%0.15%National Australia Dividend Imputation Fund– Nil Entry Fee Option



Fees for National Investment

National investment options have twodifferent fee structures, the nil entry feeoption or the entry fee option.

In the nil entry fee option you won’t paya contribution fee but will pay higherManagement costs.

In the entry fee option you may pay acontribution fee but will pay lowerManagement costs.

For detailed information about the feesand costs that will apply if you select thenil entry fee option or the entry feeoption, please refer to the relevantNational investment options set out inthe Investment portfolios section.

Fees paid to related companies

We may use the services of relatedcompanies where it make good businesssense to do so and will benefit ourcustomers.

Amounts paid for these services arealways negotiated on an arm’s-lengthbasis and are included in the fees detailedin this document.

Taxes and tax benefit

Taxes paid (and payable) are passedthrough to the investor as a part of ourunit pricing practice. Each unit price willreflect the performance of the underlyingassets, income earned, fee, expenses andtaxes paid (and payable) for any giveninvestment option. The overall value ofyour account will change according to theunit prices and the number of units youhold.

For further information on taxes refer tothe `Tax considerations' and `AMITRegime' sections on pages 51 to 52.

Other Fees we may charge

Fees may be charged if you request aservice not currently offered. We’ll agreeany additional fee with you beforeproviding the service.

If, as a result of holding assets for you orcarrying out your instructions, MLC ischarged a fee (including taxes) or otherliability, MLC is entitled to seekreimbursement from you or youraccount.

We may pass on any costs we incur inimplementing Government legislation orfees charged by third parties.

Changes to fees and costs

We may vary fees or introduce new feesup to the maximums described in theConstitutions of the investment options,without your consent. Maximums areshown as per the fee table on pages 54 to57 of the PDS.

We are entitled to recover expensesdirectly from the investment options.Currently we pay them out ofManagement fee. If this changes we'llnotify you.

We'll give you 30 days’ notice of anymaterial increases in fees. No prior noticewill be given in respect of changes toindirect costs, transaction costs orbuy/sell spreads.

Adviser Service Fee

If you wish to consult a financial adviser,you should consider the followinginformation:

You can authorise for the cost of youradviser's services, solely in relation toyour MLC MasterKey Unit Trustaccount, to be deducted from youraccount and paid to them. You can dothis by giving us instructions toestablish an Adviser Service Fee to bededucted from your account.

Any fees charged by your financialadviser are in addition to the fees andcosts described in this PDS.

You can amend or cancel an existingAdviser Service Fee at any time bycontacting us.

You don’t need to consult with afinancial adviser to use our services.

Your financial adviser cannot change theAdviser Service Fee without your consent.

Additional fees may be paid to afinancial adviser if a financial adviseris consulted.

Any fee arrangement you have with afinancial adviser should be detailed in theStatement of Advice they provide. Youshould regularly review this arrangement.

We reserve the right to reject or terminatean Adviser Service Fee arrangement onyour account at any time.


Negotiated arrangement withyour financial adviser

The contribution fee includescontribution-based commission paid byus to your financial adviser, and theManagement fee includes asset-basedcommission paid by us to your financialadviser.

You can contact your financial adviser tonegotiate a reduction in the rate ofcontribution-based commission andasset-based commission (including byreducing it to nil). Any agreed reductionwill be reflected in your account.

Please see page 65 for details of these feeswhen there isn't a financial adviser linkedto your account.

Financial adviser remuneration

Your financial adviser may receivecontribution-based commission andasset-based commission from MLC.Contribution-based commission is paidby MLC from the contribution fee and thisis not an additional cost to you.

Asset-based commission is paid from theManagement cost and this is also not anadditional cost to you.

Your financial adviser may also receivealternative forms of remuneration fromMLC, such as costs of maintaining theadviser's professional developmentqualifications. This is paid from theManagement cost and is not an additionalcost to you.

At an additional cost to you, you can alsoseparately arrange for your financialadviser's fees to be deducted from yourMLC MasterKey Unit Trust account (seethe `Adviser Service Fee' section).




Contribution-based commission

How it’s paidAmount

At the time you make a contributionUp to 5%

Asset-based commission (paid out of the Management fee)

How it’s paidRate of asset basedcommission (pa)1

Amount of combined portfolio balance (servicedby the same financial adviser)

Paid monthly based on the balance of your MLCMasterKey Unit Trust account in that month.

0.44%$0 to less than $50,000

0.50%$50,000 to less than $100,000

0.55%$100,000 to less than $200,000

0.60%$200,000 to less than $400,000

0.66%$400,000 and over1 The rate of asset-based commission for the MLC Cash Fund is 0.28% pa.

National investment optionsContribution-based commission


At the time you make a contribution.Entry fee option:

National Australia Monthly Income Fund - up to 1.75%

Other National investment options - up to 4.00%

Not applicable.Nil entry fee option:

Nil

Asset-based commission (paid out of the Management fee)


Paid monthly based on the balance of your accountin that month. Maximum 0.50% pa.

0.30%

Commission payments when you do not have a financial adviser

During any period where there is no financial adviser linked to your account, the contribution fee will reduce to 0% for all investmentoptions excluding the National investment entry fee options. The asset-based commission will be rebated in full to your account.

For more information please refer to the MLC MasterKey Unit Trust How to Guide available on mlc.com.au/forms_and_brochures


https://www.mlc.com.au/personal/forms-and-documents/forms/superannuation

For more information call us fromanywhere in Australia on 132 652 orcontact your financial adviser.

Postal address


Registered office

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

OBJ

A134

782-

1019

Documents

Supplementary Product Disclosure Statement › content › dam › mlc › documents › ... · This is a Supplementary Product Disclosure Statement (SPDS) that supplements the information