1. About MLCInvestments LimitedMLC Investments Limited (MLC) is theResponsible Entity for the MLC WholesaleHorizon 3 Conservative Growth Portfolio(Trust).

As the Responsible Entity, we’re responsiblefor all aspects of operating the Trust,including administration of the assets andinvestment policy.

National Australia Bank Limited (NAB)provides unit registry services to the Trustvia its agreement with OneVue FundServices Pty Ltd (Registry Services).

MLC is a member of the National AustraliaBank Limited Group of companies (NABGroup).

We believe the best way to manage ourportfolios is to employ the skills of multiplespecialist investment managers.

We’ve appointed MLC Asset ManagementServices Limited (MLC Asset Management)to advise on and manage the Trust’sinvestments. Our investment experts haveextensive knowledge and experience indesigning and managing portfolios using amulti-manager investment approach.

Who you go through life withmakes all the differenceMLC has been looking after the investmentneeds for generations of Australians.

Our experience has taught us investors havedifferent needs, and these change over time.

We've created a diverse range of investmentsolutions so you can grow your wealth theway you want to.

And, we’ll continually enhance our productsand services to make the most of changinginvestment opportunities.

MLC Wholesale Horizon 3Conservative Growth PortfolioProduct Disclosure StatementARSN: 096 796 379 APIR code: MLC0398AUPreparation Date: 16 October 2020

Contents

11. About MLC Investments Limited

22. How the Trust works

33. Benefits of investing in the Trust

34. Risks of managed investment schemes

45. How we invest your money

66. Fees and costs

87. How managed investment schemes aretaxed

88. How to apply

89. Other information

Important information

This Product Disclosure Statement (PDS) summarises significant information about the Horizon 3 Conservative Growth Portfolio ARSN 096 796379 (referred to in this PDS as the MLC Wholesale Horizon 3 Conservative Growth Portfolio) (Trust).

It also contains a number of references to important information in the MLC Investment Trusts Product Guide (Product Guide) marked withan symbol. The Product Guide is a separate document which forms part of this PDS. This PDS and the Product Guide contain important informationyou should consider before making an investment decision in relation to the Trust. The information provided in this PDS is general informationonly and does not take into account your personal financial situation or needs. We recommend you obtain financial advice for your own personalcircumstances before making any investment decision.

These documents are available from mlcam.com.au/MLCWholesale/pds or you can request a copy free of charge by calling us or your investordirected portfolio service, IDPS-like scheme, master trust or wrap operator (collectively referred to as an ‘IDPS’ in this PDS). To invest directly inthe Trust, you must have received the PDS (electronically or otherwise) within Australia or New Zealand and meet the eligibility requirements setout in the accompanying Product Guide.

The information in these documents is up to date at the time of preparation and may change from time to time. If a change is considered materiallyadverse, we will issue a replacement PDS. Information that is not materially adverse to investors can be updated by us and will be published onour website mlcam.com.au/MLCWholesale/pds. A paper copy of any updates will be provided free of charge upon request. You should check youhave the most up to date version before making an investment decision. All amounts in these documents are in Australian dollars unless statedotherwise.

MLC Investments Limited, the responsible entity of the Trust (Responsible Entity), is a fully owned subsidiary within the National Australia BankLimited Group of companies (NAB Group). No company in the NAB Group guarantees the capital value, payment of income or performance ofthe Trust. An investment in the Trust does not represent a deposit with or liability of the NAB Group and is subject to investment risk, includingpossible delays in repayment and loss of income and principal invested.

References in this document to ‘MLC’, ‘we’, ‘our’ or ‘us’ should be read as references to MLC Investments Limited in its capacity as ResponsibleEntity.

Issued by: The Responsible Entity, MLC Investments LimitedABN 30 002 641 661 AFSL 230705

Investing with usOur portfolios have different investmentobjectives because we know everyone hasdifferent ideas about how their money shouldbe managed.

Our portfolios make sophisticated investingstraightforward.

Our investment experts use a market-leadinginvestment approach to structure ourportfolios with the aim of delivering morereliable returns in many potential marketenvironments. And, as their assessment ofworld markets changes, our portfolios areevolved to manage new risks and capture newopportunities.

We use specialist investment managers in ourportfolios. Our investment experts researchhundreds of investment managers fromaround the world and select the managers theybelieve are the best for our portfolios. Ourinvestment managers may be specialistin-house managers, external managers or acombination of both.

Importantly, we stay true to the objectives ofour portfolios so you can keep on track tomeeting your goals.

Keeping up to dateThe latest information on the Trust is availableon our Fund Profile Toolat mlcam.com.au/MLCWholesale. It’s an easyto use, interactive tool that gives you insightinto how your money is managed includingwhere your money is invested, currentinvestment managers and how yourinvestments are performing.

2. How the Trust worksThe Trust is one of seven MLC Horizonportfolios.

Each MLC Horizon portfolio has a differentasset allocation which is expected to deliver adifferent level of volatility and return. You canchoose the portfolio with the asset allocationthat suits your investment needs.

This Trust has an approximately equalexposure to growth and defensive assets.

The Trust is an actively managed portfolioaiming to deliver returns higher than itsbenchmark over 3 year periods.

At the same time, we aim to reduce the Trust’sexposure to asset classes when we considertheir risks are too high. We do this by activelymanaging the asset allocation. As marketsevolve and asset class risks and opportunitieschange, we adjust the mix of assets withindefined ranges.

The Trust is diversified across a wide range ofassets, strategies and investment managersto enhance returns and manage risk.

Investing in the Trust is an easy way to gainaccess to sophisticated investments.

About the TrustThe Trust operates like most other managedinvestment schemes. Your money is pooledtogether with other investors’ money to buyinvestments which are managed on behalf of

all investors.

When you invest in a managed investmentscheme, such as the Trust, you gain exposureto investments that you may not ordinarilyhave access to, if you invest on your own.

When your money is paid into the Trust, youare issued with units and when money is paidout, your units are cancelled.

The unit price will reflect, among other things,the performance of the underlying assets,which are in turn influenced by movementsin investment markets. For unlisted assetswe have policies and guidelines to manageasset valuations including valuation lags.

Our unit pricing philosophy is availableat mlc.com.au. For more details on our policiesrelating to unit pricing please contact us.

The Trust is part of a larger suite of wholesaletrusts collectively known as the MLCInvestment Trusts. The PDSs for othertrusts in the suite are availableat mlcam.com.au/MLCWholesale/pds

You should read the relevant PDS beforemaking an investment decision in respect ofthese trusts.

The Trust is governed by its constitution andis registered with the Australian Securities andInvestments Commission (ASIC). ASIC takesno responsibility for this PDS or the operationof the Trust by MLC.

Investing via an IDPSThe most common way to access the Trust isvia an IDPS.

If you invest in the Trust through an IDPS,then you don’t hold units in the Trust and youhave none of the rights of a unitholder.Instead, the IDPS holds units on your behalf.

Investing through an IDPS may result indifferent conditions applying from thosereferred to in this PDS including:

minimum balance requirements

fees and other costs

cooling-off rights

how to transact on your investment

timing of processing of transactions andpayment of distributions and withdrawals,and

provision of statements and otherinformation.

You should contact your financial adviser orIDPS operator for further information.

We authorise the use of this PDS as disclosureto persons who wish to access the Trustthrough an IDPS.

This PDS must be read together with offerdocuments provided by the IDPS operator.

Applications and withdrawalsWe have the discretion to accept or refuse anyinitial application or additional investmentwithout explanation.

You can request a partial or a full withdrawalto a nominated bank account at any time bysending a completed Application/InstructionForm by post or emailing a scanned copy to

Registry Services. The Application/InstructionForm is available on request from uson 1300 738 355.

Generally, withdrawal requests will be actionedby us promptly to enable us to make paymentswithin 10 Business Days. Actioning ofwithdrawal requests and payment may bedelayed, for example, if underlying assets needto be sold. In certain circumstances, such aswhen there are adverse market conditions, wemay suspend withdrawals. We may alsoprocess requests in instalments over a periodof time and may also suspend processing ofrequests we have already accepted. In certaincircumstances we may refuse a withdrawalrequest.

Where withdrawals are delayed, suspended orbeing paid in instalments, the unit prices usedfor a withdrawal will be those available on theday the withdrawal takes effect, rather thanthe day of the withdrawal request.

In the unlikely event that the Trust is no longerliquid (as defined in the Corporations Act 2001(Cth)), you may only withdraw your funds inaccordance with any withdrawal offer that wemake.

Income distributionsThe income of the Trust will generally becalculated effective the last Sunday ofSeptember, December and March and 30 Juneeach year. We generally aim to pay incomedistributions within 7 Business Days of thecalculation date.

Distributions are generally calculated basedon the Trust’s net income at the end of thedistribution period divided by the number ofunits on issue.

There may be periods in which nodistributions are made or the Trust may makeadditional distributions.

Our current practice is to generally distributeall of the net taxable income of the Trust toinvestors each financial year (including netcapital gains and any net gains on currencymanagement). As the Trust is an AttributionManaged Investment Trust (AMIT), we havethe discretion to accumulate income (insteadof distributing all of the income) and if we doso, the accumulated income will be reflectedin the unit price. We intend to continue ourcurrent practice to distribute all of the income(including any capital gains) for each year. Wewill notify you if this changes.

Investing directly in the TrustTo invest directly in the Trust you must havereceived this PDS (electronically or otherwise)within Australia and be a ‘wholesale client’ asdefined by the Corporations Act 2001 (Cth). Youalso need to maintain a minimum balance of$500,000. We may accept lower amounts atour discretion. We may redeem yourunitholding if your account balance falls below$500,000.

You must complete and sign the Trust’sapplication forms and send them to us withyour initial application money. You can makeadditional investments by electronic fundstransfer (EFT).

2 | MLC Wholesale Horizon 3 Conservative Growth Portfolio Product Disclosure Statement

Once your application is accepted, you holdunits in the Trust and have the rights of aunitholder.

New Zealand investors may also be eligible toinvest in the Trust provided they satisfy theeligibility criteria described in the ProductGuide.

You should read the importantinformation about How the Trusts workbefore making a decision. Go to theProduct Guide availableat mlcam.com.au/MLCWholesale/pds

The material relating to How the Trustswork may change between the timewhen you read this statement and theday when you acquire the product.

3. Benefits of investingin the TrustThe Trust is an actively managed, welldiversified portfolio. You can use it for yourwhole portfolio or add it to your otherinvestments.

Experience and track recordWe use a market-leading investment approachto design and manage the Trust. Ourinvestment experts have been successfullymanaging portfolios for over 35 years, helpingclients achieve their investment goals.

Risk-management focusThe Trust’s risk is actively managed using aunique Investment Futures Framework(Framework), which guides a forward-lookingapproach to managing risk.

In an unpredictable and constantly changingworld, the Framework helps continuallyidentify the very wide range of potentialmarket scenarios – good and bad – that couldoccur.

The Framework also helps our investmentexperts analyse how these scenarios couldaffect the risks and returns of the asset classesin the Trust. The insights from this analysisare used to work out the combination of assetclasses that they believe will best achievethe Trust’s objective.

This helps prepare the Trust for future marketups and downs.

Defined asset allocationWe manage the Trust’s assets within definedranges. See ‘Strategic asset allocation andranges’ in section 5.

Multi-manager approachWe use many specialist investment managersfrom around the world to find some of the bestinvestment opportunities for the Trust and tomanage risk.

Extensive diversificationThe Trust is diversified across a wide range ofboth mainstream and alternative assets andstrategies and investment managers toenhance returns and manage risk. Ourspecialist investment managers invest widely

across countries, industries and companies.

4. Risks of managedinvestment schemesBefore you invest, there are some things youneed to consider. How much risk you'reprepared to accept is determined by variousfactors, including:

your investment goals

the savings you’ll need to reach these goals

your age and how many years you have toinvest

where your other assets are invested

the return you may expect from yourinvestments, and

how comfortable you are with investmentrisk.

Investment riskAll investments come with some risk. Someinvestments will have more risk than others,as it depends on the investment’s strategy andassets.

The value of an investment with a higher levelof risk will tend to rise and fall more often andby greater amounts than investments withlower levels of risk, ie it’s more volatile.

While it may seem confronting, investmentrisk is a normal part of investing. Without ityou may not get the returns you need to reachyour investment goals. This is known as therisk/return trade-off.

Many factors influence an investment’s value.These include, but aren’t limited to:

market sentiment

changes in inflation

growth and contraction in Australian andoverseas 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 Australian dollar

investments and withdrawals by otherinvestors

changes in Australian and overseas laws,and

a counterparty not meeting its obligationseg when buying securities, the seller maynot deliver on the contract by failing toprovide the securities.

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

its value and returns will vary over time

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

returns aren’t guaranteed and you may losemoney

future returns will differ from past returns,and

laws affecting your investment may changein future.

Investment techniquesOur investment experts and investmentmanagers may use different investmenttechniques that can change the value of aninvestment. Investment techniques used inthe Trust include:

derivatives, and

currency management.

You should read the importantinformation about Risks of managedinvestment schemes before making adecision. Go to the Product Guideavailableat mlcam.com.au/MLCWholesale/pds

The material relating to Risks ofmanaged investment schemes maychange between the time when you readthis statement and the day when youacquire the product.

MLC Wholesale Horizon 3 Conservative Growth Portfolio Product Disclosure Statement | 3

5. How we invest your moneyMLC’s multi-manager approach makes sophisticated investing easy to access, so you can get your investment plan into action right away.

You should consider the likely return, risk and your investment timeframe when making your decision. The table in this section sets outthese key aspects of the Trust for your consideration. The terms used in the table below are explained in the Product Guide in the "How weinvest your money section".

MLC Wholesale Horizon 3 Conservative Growth Portfolio

Aims to outperform the Benchmark, before fees, over 3 year periods.Investment objective:We aim to achieve this by actively managing the Trust. This includes changing the Trust’s asset allocationto reduce risk if market risk is high. As a result of reducing the allocation to higher risk assets, there maybe smaller losses than the Benchmark in weak or falling markets and potentially lower returns than theBenchmark in strong markets.

The Trust's Benchmark is a combination of market indices, weighted according to the strategic assetallocation. Details are available at mlc.com.au/horizon3investments

Benchmark:

Investment markets are the main driver of the Trust’s investment returns. The Trust’s allocation toinvestment markets is shown in its strategic asset allocation and ranges below. The strategic asset allocation

How the Trust is managed:

has an approximately equal exposure to growth and defensive assets.Our investment experts actively look for opportunities to provide better returns, or less risk, than thosegenerated by the strategic asset allocation and to manage the Trust’s exposure to the risks of investingin markets. Our investment experts do this by:

Adjusting the allocations to the asset classes away from the strategic asset allocation, while aiming toremain 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 Trust. These investment managers, who are mainly active managers, choosemany companies and securities in Australia and overseas for investment.

The Trust uses all aspects of our approach to investing, outlined in the Product Guide.

The Trust may be suited to you if: you want a diversified portfolio that has similar weightings to defensive and growth assetsyou want to rely largely on the market for returnsyou want some long-term capital growth, andyou understand that there can be moderate to large fluctuations in income and the value of yourinvestment.

4 yearsMinimum suggested time toinvest:

Asset Class Strategic Asset Allocation

Ranges

Cash 3% 0-20%

Fixed income 41% 25-65%

Defensive alternatives and other 8% 0-15%

Growth alternatives and other 5% 0-15%

Listed property securities 3% 0-15%

Global shares 23% 5-35%

Australian shares 17% 5-35%

Defensive assets Growth assets

52%48%

42-62%38-58%

Strategic asset allocation andranges:

The Trust's asset allocation will move around the strategic asset allocation, while remaining within theranges for the asset classes, defensive and growth assets. Changes in asset values, which may be due tomarket movements, can result in an asset allocation temporarily moving outside these ranges. The strategicasset allocation and ranges may change over time. The most up to date information is available from ourFund Profile Tool at mlcam.com.au/MLCWholesaleSome global assets are not hedged to the Australian dollar. Currency hedging levels for global assets areavailable at mlcam.com.au/MLCWholesale

4 | MLC Wholesale Horizon 3 Conservative Growth Portfolio Product Disclosure Statement

While the Trust isn’t managed to achieve a particular return above inflation, an average return of4.25% pa above inflation (before fees) is consistent with historical long-term returns from investment

Long-term returns:

markets, using an asset allocation similar to the Trust’s.The longer you invest, the greater the likelihood of achieving this return above inflation, as investmentmarkets are more unpredictable over shorter periods of time. Your return will be driven by the manyunpredictable factors influencing investments and markets at the time. When investing, it's importantto be prepared for all sorts of return outcomes. The graph below is based on more than 100 years of investment market returns. It shows how broad theranges of investment market returns have been. Returns measured over longer periods have narrowerranges because investment market fluctuations tend to offset through time.Ranges of returns for the Trust’s strategic asset allocation based on investment market returns from

1900 to 2020 (before fees)

%p.a.

90%

70%

50%

30%

10%

-10%

-30%

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

Middle return in the rangeRange of returns

0,12+)34)-+56-1.

Source: Calculated by MLC Asset Management Services Limited using the strategic asset allocation as at 30June 2020 and investment market data from Global Financial Data, Inc. and FactSet.These historical ranges of returns are for investment markets weighted according to the Trust’s strategicasset allocation. Historical returns aren’t a reliable indicator of the Trust’s future investment returns.

Estimate of 3 to 4 negative annual returns in any 20 year period.Risk measure:

SwitchingDirect investors may be able to switch fromthe Trust to another trust in the MLCInvestment Trusts suite. A switch will betreated as a withdrawal from one Trust and aninvestment in another Trust. Buy/ sell spreadsmay apply. If you invest via an IDPS, pleasecontact your IDPS for details of how to switch.

Changes to the TrustWe may make changes to the Trust (and theinformation in this PDS) at our discretionincluding, but not limited to, terminatingthe Trust. Some changes may be made withoutprior notice, including but not limited to,closing the Trust to new applications, andchanges to the investment strategy, assetallocation, investment managers and serviceproviders.

Where possible, we will give direct investorsprior written notice of any materially adversechange. If you invest via an IDPS, you cancontact your IDPS to obtain copies of thesenotices. Changes that are not materiallyadverse will be made available under ‘Fundupdates’at mlcam.com.au/MLCWholesale/pds

You should check the website for the latestinformation or you can obtain a paper copy ofany updated information free of charge onrequest.

You should read the importantinformation about How we invest yourmoney, including Environmental, social,governance and ethical factors beforemaking a decision. Go to the ProductGuide availableat mlcam.com.au/MLCWholesale/pds

The material relating to How we investyour money may change between thetime when you read this statement andthe day when you acquire the product.

MLC Wholesale Horizon 3 Conservative Growth Portfolio Product Disclosure Statement | 5

6. Fees and costs

DID YOU KNOW?

Small differences in both investment performance and fees and costs can have a substantial impact on your long term returns.

For example, total annual fees and costs of 2% of your account balance rather than 1% could reduce your final return by up to 20% overa 30 year period (for example, reduce it from $100,000 to $80,000).

You should consider whether features such as superior investment performance or the provision of better member services justifyhigher fees and costs.

You may be able to negotiate to pay lower contribution fees and management costs where applicable. Ask the Trust or your financialadviser.

TO FIND OUT MORE

If you would like to find out more, or see the impact of the fees based on your own circumstances, the Australian Securities and InvestmentsCommission (ASIC) website www.moneysmart.gov.au has a managed funds fee calculator to help you check out different fee options.

The ASIC managed funds fee calculator can also be used to calculate the effect of fees and costs on account balances.

The fees and costs outlined in this PDS are for the Trust only.

You should read all of the information about fees and costs because it is important to understand their impact on your investment in theTrust.

If you are investing in the Trust via an IDPS, you will need to consider the fees and other costs of the IDPS when calculating the total cost ofyour investment.

If you consult a financial adviser you may also pay an additional fee that will be set out in the Statement of Advice between you and yourfinancial adviser.

This section shows the fees and other costs that you may be charged in relation to the Trust. These fees and costs may be deducted from yourmoney, from the returns on your investment or from the assets of the managed investment scheme as a whole.

The information in this table can be used to compare fees and costs between different simple managed investment schemes. Taxes are setout under the ‘How managed investment schemes are taxed’ section of this PDS.

All fees are shown inclusive of GST and net of Reduced Input Tax Credits (where applicable).

AmountType of fee or cost

Fees when your money moves in or out of the managed investment product.

NilEstablishment fee The fee to open your investment.

NilContribution feeThe fee on each amount contributed to your investment.

NilWithdrawal feeThe fee on each amount you take out of your investment.

NilExit feeThe fee to close your investment.

Management costs1,2

The fees and costs for managing your investment.

0.80% pa of the Trust’s net asset value. Management fee3

0.07% pa of the Trust’s net asset value. Estimated indirect costs4

This is made up of:

Estimated performance related costs: 0.02% paEstimated other indirect costs: 0.05% pa

1 An allowance for transactional costs may apply to investments into and withdrawals from the Trust. Please see 'Transactional costs' inthe ‘Additional explanation of fees and costs’ for further details.2 Rounded to two decimal places.3 Wholesale clients (as defined in the Corporations Act 2001 (Cth)) may be able to negotiate this fee by contacting Client Services.4 The estimated indirect costs are based on costs incurred for the 12 months to 30 June 2020 and include estimates where information wasunavailable at the date this PDS was issued.

6 | MLC Wholesale Horizon 3 Conservative Growth Portfolio Product Disclosure Statement

Example of annual fees and costs for the TrustThis table gives an example of how the fees and costs for this managed investment product can affect your investment over a 1 year period.You should use this table to compare this product with other managed investment products.

Balance of $500,000 with a contribution of $5,000 during the year1EXAMPLE: MLC Wholesale Horizon 3 Conservative Growth Portfolio

For every additional $5,000 you put in, you will be charged $0.0%Contribution fees

And, for every $500,000 you have in the Trust you will be charged: 0.80%

PLUS Management costs

$4,0000.07%

Management fee+ $350

0.87%Indirect costs

= $4,350 each year.Total

If you had an investment of $500,000 at the beginning of the year andyou put in an additional $5,000 during that year, you would be charged

EQUALSCost of the Trust

fees from:$4,350.

What it costs you will depend on the fees you negotiate withthe Trust, your IDPS operator or your financial adviser.

1This example assumes the $5,000 additional investment occurs at the end of the year and that value of the Trust does not change for theentire year. Actual fees and costs are based on the value of the Trust which fluctuates daily. This example isn't designed to illustrate anytransactional costs that may apply to you, such as a buy/sell spread.

Additional explanation of fees andcosts

Management costsThe management costs are fees and costs forinvesting the Trust’s assets.

The management costs don't include buy/sellspreads, borrowing costs or transactional costs.

Management costs are made up of themanagement fee and indirect costs describedbelow.

Management feeThe Responsible Entity receives amanagement fee for managing the assets ofthe Trust and overseeing the day to dayoperations of the Trust. The ResponsibleEntity will pay out of its management fee anyfees paid to investment managers appointeddirectly by the Responsible Entity, and othercosts and expenses incurred in operatingthe Trust ('operational costs'), such as custodycosts, registry costs, auditing fees and taxreturn fees.

Indirect costsThe Trust may also incur costs and expensesthat won’t be charged as a management feebut are expected to reduce the net return ofthe Trust. These indirect costs are reflected inthe daily unit price and any reporting on theperformance of the Trust.

Indirect cost amounts included in thisdocument are based on actual costs incurredfor the financial year to 30 June 2020 andinvolve estimates where information wasunavailable at the date this PDS was issued.Amounts may vary from time to time and youwill not be given advance notice of anychanges to these amounts. Updated amountswill be available atmlcam.com.au/MLCWholesale

Indirect costs are made up of:

Performance related costsPerformance related costs are amounts thatinvestment managers may charge whentheir performance exceeds a specified level.This is independent of the overall

performance of the Trust and therefore theamounts may be payable to the investmentmanagers even if the Trust itself producesnegative performance. Differentperformance related costs may be chargedby different investment managers and willvary depending upon the investmentmanagers’ performance.

Other indirect costsUnderlying investment funds will generallycharge a management fee and expenserecoveries.

Transactional costsTransactional costs are the costs incurredwhen assets in the Trust or in underlyinginvestments are bought or sold and includescosts such as brokerage, stamp duty andsettlement costs. Transactional costs may alsobe incurred when the market processfor trading assets causes the price paid orreceived to be different from the value of theassets immediately after the transaction, forexample, where bid/ask spreads are incurred.

The estimated transactional costs for thefinancial year to 30 June 2020 wereapproximately 0.19% of the Trust’s net assetvalue. Of this amount, we estimate that0.03% was recovered through buy/sell spreadswith the remaining 0.16% being an estimateof the amount of transactional costs thatreduced the return of the Trust.

These costs are not included in themanagement costs and are an additional costto you. No part of the transactional costs arepaid to us or any investment managers.

Buy/sell spreadsYou incur the buy/sell spread when you buyor sell units in the Trust.

The buy spread is added to the unit price whenyou buy units. The sell spread is deducted fromthe unit price when you sell units. The buy/sellspread is not a fee and no part of the buy/sellspread is paid to us or to any investmentmanagers. The buy/sell spread is retained inthe Trust to cover the estimated transactioncosts incurred as a result of investorapplications and redemptions.

As at the date of this PDS, the buy/sell spreadsare:

Buy spread: 0.10% of each amount youinvest into the Trust.

Sell spread: 0.10% of each amount youwithdraw from the Trust.

This means that for every $5,000 youcontribute to the Trust you will incur costs of$5.00 and for every $5,000 you withdraw fromthe Trust you will incur costs of $5.00.

Buy/sell spreads may change from time totime. Increases (and decreases) may besignificant.

The latest buy/sell spreads can be found onour website at mlcam.com.au/MLCWholesale.Investors may not be notified of changes, andshould check current buy/sell spreads beforemaking any investment decision.

Changes to fees and costsWe may vary fees or introduce new fees up tothe maximums described in the constitution,without your consent.

Under the constitution the maximum feespayable to the Responsible Entity are:

a management fee of 2% pa of the Trust’scurrent value (as defined under theconstitution), and

a contribution fee of 6% of the subscriptionamount (currently not charged).

We are entitled to recover expenses directlyfrom the Trust. Currently we pay them out ofthe management fee. If this changes we willnotify you. For more information see‘Reimbursable expenses’ in the Product Guide.

If you invest directly in the Trust we will giveyou 30 days’ notice of any increase in fees. Noprior notice will be given in respect of changesto indirect costs, transactional costs, buy/sellspreads or borrowing costs. For updated detailsgo to mlcam.com.au/MLCWholesale

MLC Wholesale Horizon 3 Conservative Growth Portfolio Product Disclosure Statement | 7

You should read the importantinformation about Fees and costs beforemaking a decision. Go to the ProductGuide availableat mlcam.com.au/MLCWholesale/pds

The material relating to Fees and costsmay change between the time when youread this statement and the day whenyou acquire the product.

7. How managedinvestment schemes aretaxedInvesting in a managed investment schemeis likely to have tax consequences. Becausethis PDS and the Product Guide are not taxguides and tax laws are complex and changefrom time to time, we strongly recommendthat you obtain professional tax advice inrelation to your own personal circumstances.This applies whether you are an Australianresident or a non-resident for tax purposes.

Australian taxation informationThe general comments below only relate to thetax consequences arising to Australianresidents. The Trust itself should not be liablefor tax on its net earnings. Managedinvestment schemes do not pay tax on behalfof resident investors. Rather investors shouldinclude their proportion of the Trust's taxableincome as income in their tax returns.Investors are assessed for tax on any incomeand capital gains generated by the Trust. Anynet losses are retained by the Trust andpotentially used to offset future matchinggains.

The unit price of units issued before adistribution will include income accumulatedin the Trust. The income that has beenaccumulating will generally be distributed. Youmay potentially have taxation liabilities onthat income.

Depending on an investor’s circumstances, arevenue or capital gain or loss may arise whenunits in the Trust are sold, switched orredeemed.

You should read the importantinformation about How managedinvestment schemes are taxed beforemaking a decision. Go to the ProductGuide availableat mlcam.com.au/MLCWholesale/pds

The material relating to How managedinvestment schemes are taxed maychange between the time when you readthis statement and the day when youacquire the product.

8. How to applyInvesting directlyTo invest directly, you must complete and signthe application forms for the Trust and sendthem to us with your application money andidentification documentation as applicable.Contact us to obtain the application forms.

Investing via an IDPSTo invest in the Trust via an IDPS, you willneed to contact your IDPS operator andcomplete the relevant IDPS application formand any other documentation required by theIDPS operator. You will also need to contactyour IDPS operator in relation to makingadditional contributions to your investment.

You should contact your IDPS about anycomplaint you have. Your IDPS will work withus to assist you in resolving any complaintsrelating to your investment in the Trust.

The remaining information in this section onlyapplies to direct investors in the Trust. If youinvest via an IDPS, and require furtherinformation you should contact your IDPSoperator.

No cooling off rightsThe right to ‘cool off’ does not apply to directinvestments in this Trust.

PrivacyWe collect and hold information necessary toprovide you with the relevant services andinformation related to your investment. If youdo not provide your personal information wemay not be able to provide you with theseservices. We are subject to the NAB Group’sPrivacy Policy which is available by contactingClient Services or visiting our website atmlc.com.au/privacy. We may disclose yourpersonal information within the NAB Groupand to others. More information about how wecollect, use, share and handle your personalinformation is in our Privacy Policy, includinghow you may access or correct yourinformation, the countries we may send yourinformation to and how you may make acomplaint about a privacy issue.

Anti-Money LaunderingWe are required to comply with the Anti-MoneyLaundering and Counter-Terrorism FinancingAct 2006 (Cth) and as such we may need tocollect information from you or anyone actingon your behalf, and your related parties, tocomply with our obligations.

Foreign Account Tax Compliance Act(FATCA) and Common ReportingStandard (CRS)We are required to collect information aboutyour tax residency status, including whetheryou are a US citizen or resident for US taxpurposes, and other relevant information todetermine your reporting status under theFATCA and the CRS rules. If you identifyyourself as a foreign resident for tax purposes,your account information may be reported tothe relevant tax authorities.

Resolving complaintsOur Client Services team can usually resolvecomplaints over the phone. If we can’t oryou’re not satisfied with the outcome, thenyou will need to write to us (address detailsare at the end of this PDS). We will work toresolve your complaint as soon as possible. Ifyou are a retail client (as defined in theCorporations Act 2001 (Cth)) and you are notsatisfied with the outcome of your complaint,you can refer the matter to the AustralianFinancial Complaints Authority on 1800 931678. See afca.org.au for more information.

9. Other informationYou should read the importantinformation about Email terms andconditions, Investor Online and AdviserOnline, Notice to residents of NewZealand and Keeping you informedbefore making a decision. Go to theProduct Guide available atmlcam.com.au/MLCWholesale/pds

The material relating to Email terms andconditions, Investor Online and AdviserOnline, Notice to residents of NewZealand and Keeping you informed maychange between the time when you readthis statement and the day when youacquire the product.

Contact detailsIf you invest via an IDPS you should contactyour IDPS for all enquiries.If you invest directly, the contact details are:

Registry ServicesNational Australia Bank LimitedC/- OneVue Fund Services Pty LtdGPO Box 804Melbourne VIC 3001 Australia

Client ServicesLevel 21255 George StreetSydney NSW 2000 AustraliaTelephone: 1300 738 355Email: client.services@mlcam.com.au

Responsible EntityMLC Investments Limited105-153 Miller StreetNorth Sydney NSW 2060 Australia

Websitemlcam.com.au/MLCWholesale

8 | MLC Wholesale Horizon 3 Conservative Growth Portfolio Product Disclosure Statement