plum super plum personal plan investment menu and... · 2020-05-19 · plum personal plan...

Plum SuperPlum Personal Plan

Investment Menu

The FundIssued by the TrusteePreparation dateMLC Super FundABN 70 732 426 024

NULIS Nominees (Australia) LimitedABN 80 008 515 633AFSL 236465

1 April 2020

This menu gives you information about the investments availablethrough Plum Super.

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

The information in thisdocument forms part ofthe Plum Personal

4Investing with Plum

5Things to consider before you invest

14Choosing your path Plan Product DisclosureStatement (PDS), dated 1April 2020. Together with

16Your investment options

the Plum Personal PlanInsurance Guide, ClaimsGuide and Fee Brochure,these documents should beconsidered before makinga final decision aboutwhether to invest. They areavailable when you log into plum.com.au

This document contains general information only. Before acting on this information, you should consider its appropriateness toyou, having regard to your personal objectives, financial situation and needs. A financial adviser can help you decide if this is theright product for you. For more information please contact us, speak with your financial adviser or go to the online copy of thisdocument on plum.com.au

References to ‘we’, ‘us’ or ‘our’ are references to the Trustee. The Trustee is part of the National Australia Bank (NAB) Group ofCompanies. An investment with the Trustee is not a deposit with, or liability of, and is not guaranteed by, NAB.

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

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

MLC Asset Management Services Limited ABN 38 055 638 474 AFSL 230687 and each investment manager referred to in thisInvestment Menu, and JANA Investment Advisers Pty Ltd ABN 97 006 717 568 AFSL 230693 (as investment consultant to NULIS),have given written consent to be named and quoted in the PDS and this Investment Menu (as applicable), and to the inclusion ofstatements made by them. As at the date of the Investment Menu, these consents have not been withdrawn.

Please read the latest applicable Product Disclosure Statement and any incorporated materials before making any decision abouta product.

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Contents

http://www.plum.com.au/



We provide a broad rangeof investment options andyou can choose anycombination of these to putyour investment plan intoaction.Our Investment Menu has beendeveloped to suit all levels ofinvestment knowledge and experience.You can choose from a broad range ofinvestment options, includingdiversified portfolios that invest acrossmultiple asset classes, and single-sectoroptions that invest in a single assetclass.

We believe the best way to manage ourportfolios is to employ the skills ofmultiple specialist investmentmanagers. We’ve appointed the NABGroup’s multi-asset managementbusiness, MLC Asset ManagementServices Limited to advise on andmanage our investment options. Ourinvestment experts have extensiveknowledge and experience at designingand managing portfolios using amulti-manager investment approach.

While MLC Asset Management’s namehas changed through time, it’s the sameteam that’s been advising on andmanaging our portfolios for decades.

Investing with usOur portfolios have different investmentobjectives because we know everyonehas different ideas about how theirmoney should be managed.

Our portfolios make sophisticatedinvesting straightforward.

Our investment experts structure ourportfolios to deliver more reliablereturns in many potential marketenvironments. And, as their assessmentof world markets changes, ourportfolios are evolved to manage newrisks and capture new opportunities.

We use specialist investment managersin our portfolios. Our investmentexperts research hundreds ofinvestment managers from around theworld and select the managers theybelieve are the best for our portfolios.Our investment managers may bespecialist in-house managers, externalmanagers or a combination of both.

Importantly, we stay true to theobjectives of our portfolios, so you cankeep on track to meeting your goals.

Selecting investmentoptionsWe’ve appointed JANA InvestmentAdvisers Pty Ltd (JANA) to advise us onour Investment Menu. It is one of theleading investment consultants inAustralia with over 30 years ofexperience and $600 billion of fundsunder advice (as at 31 December 2019).JANA is partly owned by NationalAustralia Bank Limited (NAB).

The Investment Menu is regularlyreviewed by a committee ofexperienced investment professionals.

A number of factors are taken intoconsideration when choosing theinvestment options. These may includethe investment objective, fees, externalresearch ratings and performance, aswell as our ability to efficientlyadminister the investment option. Theselection of options issued bycompanies either wholly or partiallyowned by NAB Group is done on anarm’s-length basis in line with theTrustee’s Conflicts Management Policy.

Investment switchingYou can change your investmentoptions any time. We do not charge afee for you to do this. However, buy-sellspreads may apply.

Delayed and suspendedtransactions We may delay or suspend transactions,for example where an investmentmanager delays or suspends unitpricing, or when there are adversemarket conditions.

We may process withdrawal and switchrequests in instalments over a period oftime and may also suspend processingof withdrawal and switch requests wehave received. In certain circumstanceswe may refuse a request. Whererequests are delayed, suspended orbeing paid in instalments, the unitprices used for transactions will bethose available on the day thetransaction takes effect, rather than theday of the request. In the event that theInvestment Option becomes illiquid, youmay only withdraw your funds inaccordance with any withdrawal offerthat we make. We are not responsiblefor losses that delayed or suspendedtransactions may cause.

Monitoring of frequentswitchingThis product is not appropriate formembers who wish to switch theirinvestments frequently in the pursuit ofshort-term gains.

We monitor all investment options forabnormal transaction activity becausethis sort of activity can have adverseimpacts for other members.

To maintain equity, we have the rightto deal with members who frequentlyswitch by:

delaying, limiting, rejecting orapplying special conditions to futureswitch requestspermanently cancelling membershiprejecting applications to open newaccounts in the Fund, and/orrejecting contributions and rolloversto existing accounts

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Investing with Plum

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

This is determined by various factors,including:

your investment goalsthe savings you'll need to reach thesegoalsyour age and how many years youhave to investwhere your other assets are investedthe return you may expect from yourinvestments, andhow comfortable you are withinvestment risk.

Investment riskAll investments come with some risk.Some investment options will havemore risk than others, as it depends onan option’s investment strategy andassets.

The value of an investment with ahigher level of risk will tend to rise andfall more often and by greater amountsthan investments with lower levels ofrisk, ie it’s more volatile.

While it may seem confronting,investment risk is a normal part ofinvesting. Without it you may not getthe returns 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 sentimentchanges in inflationgrowth and contraction in Australianand overseas economieschanges in interest ratesdefaults on loanscompany specific issuesliquidity (the ability to buy or sellinvestments when you want to)

changes in the value of theAustralian dollarinvestments and withdrawals byother investorschanges in Australian and overseaslaws, anda counterparty not meeting itsobligations eg when buyingsecurities, the seller may not deliveron the contract by failing to providethe securities.

VolatilityPeriods of volatility can be unsettlingand may occur regularly. You may findit reassuring to know that ofteninvestments that produce higher returnsand growth over long periods tend tobe more 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 overtimeassets with higher long-term returnpotential usually have higher levelsof short-term riskreturns aren’t guaranteed and youmay lose moneyfuture returns will differ from pastreturns, andyour future super savings (includingcontributions and returns) may notbe enough to provide sufficiently foryour retirement.

Diversify to reduce volatilityand other risksDiversification – investing in a range ofinvestments – is a sound way to reducethe short-term volatility of a portfolio’sreturns. That’s because different types

of investments perform well in differenttimes and circumstances. When someare providing good returns, others maynot be.

Portfolios can be diversified acrossdifferent asset classes, industries,securities and countries, as well asacross investment managers withdifferent approaches.

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 acrossa range of asset classes.

Diversification across asset classesis just one way of managingrisk. Our multi-asset portfoliosdiversify across asset classes andinvestment managers. Please referto 'Our approach to investing' in the'Choosing your path' section formore information.

A financial adviser can help youclarify goals and assist with creatinga financial plan which helps youmanage risk and consider issuessuch as:

how many years you have toinvestthe savings you'll need to reachyour goalsthe return you may expect fromyour investments, andhow comfortable you are withvolatility.

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Things toconsider beforeyou invest

Types of assetsAsset classes are generally grouped as defensive, growth or alternatives based on their different characteristics.

Multi-asset portfolios are usually invested across 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,growth assets 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 returnsat the same time.

The main differences between these types of assets are:

AlternativesGrowthDefensiveA very diverse group of assets andstrategies. Some examples includeprivate assets and hedge funds.

Shares, unlisted property and listedproperty securities.

Cash and fixed income securities.Asset classesincluded

Because alternatives are diverse,they may be included in defensiveor growth assets.To provide returns that aren’tstrongly linked with those ofmainstream assets. They may beincluded for their defensive orgrowth characteristics.

To provide long-term capitalgrowth.

To stabilise returns.How they aregenerally used

Expected to produce returns andvolatility that aren’t strongly linkedto mainstream assets such as

Expected to produce higherreturns, and be more volatile, thandefensive assets over the long term.

Expected to produce lower returns,and be less volatile, than growthassets over the long term.

Risk and returncharacteristics

shares. Risk and returncharacteristics of differentalternative investments can varysignificantly.

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Asset classesAsset 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 ofyears or many years as prices rise, peak,fall and stabilise. Through investing forthe long term, at least through a wholemarket cycle, you can improve yourchance of benefiting from a period ofstrong returns and growth to offsetperiods of weakness.

The illustration below shows indicativereturns and volatility for the main assetclasses over a whole market cycle. Buteach market cycle is different, sounfortunately it isn’t possible toaccurately predict asset class returns ortheir volatility. Depending on theconditions at the time, actual returnscould be significantly different fromthose shown.

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 portfolioto meet 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 havethe lowest return over a marketcycle.The market value tends not tochange. However, when you investin cash, you’re effectively lendingmoney to businesses or governmentsthat could default on the loans,resulting in a loss on yourinvestment.Many cash funds invest in fixedincome securities that have a veryshort term until maturity.

Indicative volatility

Ind

icat

ive

retu

rns

Indicative returns and volatility over a market cycle

Higher

Lower Higher

Cash

Private assets

Shares

Property

Fixed income

Defensive alternatives

Growth alternatives

� A146110-0819Source: MLC Asset Management Services Limited

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Fixed income (including term deposits)

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 returncharacteristics.Returns typically comprise interestand changes in the market value ofthe fixed income security. Fixedincome securities’ values tend tomove in opposite directions tointerest rates. So when interest ratesrise, fixed income securities’ valuestend to fall and when interest ratesfall, values can rise. Short-term fixedincome securities are generally lesssensitive to interest rate changesthan 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 ratesare low, the risk of rates rising andmarket values 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.

Property

Access to property may be throughtrusts listed on a securities exchange(known as listed property securities orReal Estate Investment Trusts), unlistedproperty trusts, or direct ownership.Investments may include retail,commercial, industrial and residentialproperties in Australia and around theworld.

Things to consider:

Property is usually included in aportfolio for its growthcharacteristics.Returns typically comprise income(such as rental income) and changesin value.Returns are driven by many factorsincluding the economic environmentin various countries.Returns from property can bevolatile. Because listed propertysecurities are listed on an exchange,their prices constantly reflect themarket’s changing view of theirproperty values. Unlisted propertyvalues are more difficult todetermine and usually involve aconsiderable time lag. As a result ofthese differences in valuationfrequency, listed property securities’returns may appear to be morevolatile than unlisted property.Investments in listed propertysecurities generally provide investorsgreater diversification acrosscountries, sectors and propertiesthan investments that aren’t listed.And the global listed propertysecurities market is even morediversified than the Australianmarket.

Unlisted property is illiquid whichmakes it more difficult for aninvestment manager to buy or sell. Investing outside Australia mayexpose your portfolio to movementsin exchange rates.

Australian shares

This asset class consists of investmentsin companies listed on the AustralianSecurities Exchange (and otherregulated exchanges). Shares are alsoknown as equities.

Things to consider:

Australian shares can be volatile andare usually included in a portfolio fortheir growth characteristics.The Australian share market is lessdiversified than the global marketbecause Australia is currentlydominated by a few industries suchas Financials and Resources.Returns usually comprise dividendincome and changes in share prices.Dividends may have the benefit oftax credits attached to them (knownas franking or imputation credits).Returns are driven by many factorsincluding the performance of theAustralian economy.Companies listed on the Australianshare market can be grouped assmall, medium and largecapitalisation (cap) based on factorsincluding the total market value oftheir listed shares and liquidity.Investors in small cap companiesgenerally experience greater pricevolatility than shares in large capcompanies because small capcompanies trade less frequently andin lower volumes. They may alsounderperform large cap companiesfor many years.

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Global shares

Global shares consist of investments incompanies listed on securitiesexchanges around the world.

Things to consider:

Global shares can be volatile and areusually included in a portfolio fortheir growth characteristics.The number of potential investmentsis far greater than in Australianshares.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 fortheir defensive or growthcharacteristics.Alternative investments are usuallyincluded in portfolios to increasediversification and provide returnsthat aren’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 associatedwith them.Some alternative strategies aremanaged to deliver a targetedoutcome. For example, real returnstrategies aim to produce returnsexceeding increases in the costs ofliving (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 difficultto buy or sell.To access alternative investments yougenerally need to invest in amanaged fund that, in turn, investsin alternatives.

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 outsideAustralia may expose your portfolioto movements 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 ina privately owned business.

Things to consider:

Private assets are alternative assetsthat are usually included in aportfolio for their growthcharacteristics.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 returnsthan share markets in the long run,and to increase diversification.Private assets are illiquid whichmakes them difficult to buy or sell.To access private assets you generallyneed to invest in a managed fundthat invests in private assets.Because private assets aren’t listedon an exchange, determining theirvalue for a fund’s unit price can bedifficult and may involve aconsiderable time lag.

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

There are generally two broadapproaches: passive and activemanagement.

Passive management

Passive, or index, managers chooseinvestments to form a portfolio whichwill deliver a return that closely tracksa market 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 overthe long term.

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

The degree of active managementaffects returns. Less active managerstake small positions away from themarket benchmark and more activemanagers take larger positions.Generally, the larger an investmentmanager's positions, the more theirreturns will differ from the benchmark.

Active managers have differentinvestment styles that also affect theirreturns. Some common investmentstyles are:

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

Top-down – focuses on forecastingbroad macroeconomic trends andtheir effect on the market, ratherthan returns for individualcompanies.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

We have an Environment, Social andGovernance Risk Management Policy(ESG Policy), which applies to MySuper.The ESG Policy is available on plum.com.au

For other investment options,investment managers may take intoaccount labour standards,environmental, social or ethicalconsiderations when making decisionsto buy or sell investments, however wedon’t require them to. The Trustee doesnot actively contemplate these factorswhen selecting an investment optionfor inclusion on the Investment Menu.

However, where an investment optionis marketed by the investment manageras a ‘socially responsible’ investment,the Trustee considers whether theinvestment option meets the LonsecEthical SRI Classification before offeringthe option to members. Lonsec assesseseach option’s investment process andprovides a Responsible InvestmentClassification of ‘Light’, ‘Moderate’ or‘Substantial’ for each investmentoption’s depth of responsibleinvestment. If you would like further

information on the Lonsec ResponsibleInvestment Classification please contactus.

Investment techniquesOur investment experts and investmentmanagers may use different investmenttechniques that can change the valueof an investment.

Some of the main investmenttechniques are explained below.

Derivatives

Derivatives may be used in any of theinvestment options.

Derivatives are contracts that have avalue derived from another source suchas an asset, market index or interestrate. There are many types of derivativesincluding swaps, options and futures.They are a common tool used tomanage risk or improve returns.

Some derivatives allow investmentmanagers to earn large returns fromsmall movements in the underlyingasset’s price. However, they can loselarge amounts if the price movement inthe underlying asset is unfavourable.

Risks particular to derivatives includethe risk that the value of a derivativemay not move in line with theunderlying asset, the risk thatcounterparties to the derivative may notbe able to meet payment obligationsand the risk that a particular derivativemay be difficult or costly to trade.

The Trustee’s derivatives policy permitsthe use of derivatives where consistentwith an investment option’s objective,risk profile, disclosure and governingdocuments, legislative and regulatoryrequirements. They may be used for:

hedgingefficient portfolio management, andinvestment return generation.

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Further information on the Trustee’sderivatives policy is available at plum.com.au/derivatives-policy

Currency management

If an investment manager invests inassets in other countries, its returns inAustralian dollars will be affected bymovements in exchange rates (as wellas changes 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 chooseto keep the assets exposed to foreigncurrency movements, 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 largerfluctuations (both up and down) in thevalue of your investment compared tothe same investment which is notgeared.

Investment managers can take differentapproaches to gearing. Some changethe gearing level to suit differentmarket conditions. Others maintain atarget level of gearing.

It’s important to understand thepotential risks of gearing, as well as itspotential benefits. When asset valuesare rising by more than the costs ofgearing, the returns will generally behigher than if the investment wasn't

geared. When asset values are falling,gearing can multiply the capital loss. Ifthe fall is dramatic there can be evenmore implications for gearedinvestments. For example, where thelender requires the gearing level to bemaintained below a predeterminedlimit, if asset values fall dramatically,the gearing level may rise above thelimit, forcing assets to be sold whenvalues may be continuing to fall.

In turn, this could lead to more assetshaving to be sold and more lossesrealised. Withdrawals (and applications)may be suspended in suchcircumstances, preventing you fromaccessing your investments at a timewhen values are continuing to fall.

Although this is an extreme example,significant market falls have occurredin the past. Recovering from such fallscan take 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 typesof environments and understand theirimpact on your geared investment.

Short selling

If an investment manager uses shortselling extensively for a particularinvestment option, we’ve made a noteof it 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, usuallya broker, and sells it with the intentionof buying it back at a lower price. If allgoes to plan, a profit is made. The keyrisk of short selling is that, if the priceof the asset increases, the loss could besignificant.

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http://www.plum.com.au/derivatives-policy

http://www.plum.com.au/derivatives-policy

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

ExplanationTerms used in investmentoption profiles

Describes what the investment option aims to achieve over a certain timeframe. Most investmentoptions aim to produce returns that are comparable to a benchmark (see below for moreinformation on benchmarks). The returns of an investment option should be judged against itsobjective.

Investment objective

The investment objective outlines whether returns used to judge an investment option's successshould have fees and taxes included. Investment objectives may consider fees and taxes in thefollowing ways:

‘After fees and tax’ – when calculating performance against the investment objective, theinvestment fee, indirect cost ratio, and tax on investment earnings have already been deductedfrom the return. The administration fees, other costs, and other taxes have not been deducted. 'Before fees and tax' – when calculating performance against the investment objective, thefees, tax, and costs (other than the indirect cost ratio) have not been deducted from the return.

More information on fees and how they are deducted is available from section 6 and 7 of the PDS.

Describes how the investment option is managed.How the investment optionis managed

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

The investment option maybe suited to you if...

Investment managers suggest minimum timeframes for each investment option. Investing for theminimum suggested time or longer improves your chances of achieving a positive return. However,investing for the minimum time doesn’t guarantee a positive return outcome because every marketcycle is different. Your personal circumstances should determine how long you hold an investment.

Minimum suggestedtime to invest

Provides an indication of the proportion of an investment option that’s invested in each asset class.Asset allocations are displayed in various ways in the Investment Menu:

Asset allocations

Where a benchmark asset allocation is provided, the investment option’s assets usually moveabove and below the percentage allocations shown.Asset allocation ranges are the lowest and highest weightings the investment manager aimsto invest in each asset class. Changes in asset values, which may be due to market movements,can result in an asset allocation temporarily moving outside these ranges.

Benchmarks are usually market indices that are publicly available. Shares are often benchmarkedagainst a share market index and fixed income against a fixed income market index. Otherbenchmarks can be based on particular industries (eg mining), company size (eg small caps) orthe wider market (eg S&P/ASX 200 or the MSCI World Index). Benchmarks for multi-asset portfoliosmay be:

Benchmark

made up of a combination of market indices weighted according to the asset allocation(commonly known as composite benchmarks), ora single measure, such as inflation. A common index of inflation, which is the rise in the costof living, is the Consumer Price Index (CPI).

When comparing returns to a benchmark you should consider:

whether the investment option’s return is calculated before or after fees and tax are deductedthe period over which the return should be measured, andthat an investment option is unlikely to achieve its objective in all market environments.

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ExplanationTerms used in investmentoption profiles

We use the Standard Risk Measure (SRM) to help you compare investment risk across the investmentoptions offered. The SRM is based on industry guidance and is the estimated number of negativeannual returns over any 20 year period. The SRM is not a complete assessment of investment risk,for instance it doesn't:

Standard Risk Measure(estimated number ofnegative annual returns)

detail the size a negative return could be or the potential for a positive return to be less thana member requires to meet their objectivescapture the risk of the investment manager not meeting its investment objective, ortake into account the impact of administration fees and tax, which would increase the chanceof a negative return.

Members should still ensure they are comfortable with the risks and potential losses associatedwith their chosen investment. For information on how the SRM is calculated, go to plum.com.au/srm

Estimated number of negative annual returns in any20 year periodRisk labelRisk

bandLess than 0.5Very low1

0.5 to less than 1Low21 to less than 2Low to medium32 to less than 3Medium43 to less than 4Medium to high54 to less than 6High6

6 or greaterVery high7

Shows the costs of investing in each investment option, including investment fees, buy-sell spreads,and where applicable, indirect costs (including performance related costs), transaction costs,borrowing costs and property operating costs. For new investment options, including MySuper,

Fees and costs

the estimated indirect cost ratio reflects the Trustee’s reasonable estimate at the date of this PDSof costs that’ll apply for the current financial year. In March 2019, we made changes to MySuper.As we’ll be gradually increasing the growth assets for the MySuper Growth Portfolio over a periodof time, the Trustee estimates that the costs will continue to rise with the increase in growth assets.The estimated cost, reflective of the benchmark asset allocation, is 0.37% pa. Except for newinvestment options, the indirect costs (including performance related costs), transaction costs,borrowing costs and property operating costs are based on costs incurred for the 12 months to 30June 2019 and includes estimates where information was unavailable at the date this PDS wasissued. Please note, past costs are not a reliable indicator of future indirect costs.The buy-sell spread for each investment option is accurate as at 23 March 2020. The buy-sell spreadsmay vary daily and in certain circumstances, increase significantly. We recommend that you regularlycheck the current buy-sell spreads of an investment option available by logging into your accountat plum.com.au

Buy-sell spread

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http://www.plum.com.au/srm

http://www.plum.com.au/srm


MySuperWhen you're invested in a Plumportfolio, your money is with Australia'smost experienced multi-manager.

MySuper provides a mix of growth anddefensive assets which changesdepending on your age.

If you don’t make a choice, your moneywill be invested in MySuper, our defaultinvestment option. Or you can choosean investment option, from one of thefollowing 'paths' which are designed tosuit different investor knowledge levelsand desire for involvement.

Path one - simple choiceThere is a range of diversifiedinvestment options in Path one so youcan select an expected risk and returnprofile to meet your needs.

At the lower end of the risk and returnpotential are the conservative options,which invest mainly in defensive assetssuch as fixed income and cash. At thehigher end of the risk and returnpotential are the aggressive options,which invest mainly in growth-focussedassets such as shares.

This comprehensive range of investmentoptions means, wherever you are in lifeyou can choose an investment solutionto suit your needs.

These options are actively managed andbroadly diversified across asset classes,across underlying investment managersand within asset classes.

Investing in Path one is an easy way togain access to sophisticated investmentportfolios. This way you can implementyour financial plan with confidence.

Path two - flexible choiceThe investment options in Path twomainly invest in one asset class andcater for people looking for a completeinvestment solution for an asset class.

We have both actively and passivelymanaged investment options in Pathtwo.

We also offer a set of three 'Index Plus'multi-asset portfolios and a Cash Fund,which invests in deposits with banks.

You should have some understandingof investments, including the differencebetween the main asset classes andwhether you prefer an active or passivemanagement approach before selectingan investment option in this path.

Path three - specialistchoiceWe recognise some people may wantadditional investment options to reflecttheir return and risk profile. We've givenyou this choice in Path three, withinvestment options that target specificasset class sectors, eg small companies.

You should have a strong understandingof investment risks before selecting aninvestment option in this path. Werecommend you seek financial adviceas greater investment experience isgenerally required when investing inthis path.

You should carefully consider therisks of investing your entireaccount balance in a single assetclass investment option andwhether this represents adequatediversification.For more information, refer to the'Diversify to reduce volatility andother risks' section of thisInvestment Menu.

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Choosingyour path

Our approach to investing

For over 35 years our investmentexperts have been designing portfoliosusing a multi-manager approach, tohelp investors 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 isallocated between asset classes basedon the following beliefs:

• Risk can’t be avoided but can bemanaged

To manage our portfolios’ risk indifferent environments, our investmentexperts consider how economic andmarket conditions might unfold. Theinsights from this analysis are used towork out the combination of assetclasses that they believe will bestachieve a portfolio’s objective.

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

• Risks and returns vary through time

Analysis of how economic and marketconditions might develop shows ourinvestment experts how the potentialrisks and returns of each asset classcould change over the next three toseven years.

With this information, our portfolios’asset allocations are adjusted to reducetheir risk or improve their returnpotential.

• 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 downscan offset one 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 themanagers they believe are the best forour portfolios.

They are then combined in ourportfolios so they complement eachother.

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

You can find out about our currentinvestment managers by logging into plum.com.au

3. Ongoing review

To make sure our portfolios are workinghard for investors, our investmentexperts continuously review and activelymanage them.

This includes adjusting the assetallocation, investment strategies andmanagers.

This may be because our investmentexperts' assessment of the futuremarket environment has altered orbecause they've found new ways tobalance risk and return in the portfolios.

4. Portfolio implementation

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

15


MySuperMySuper provides a mix of growth and defensive assets which changes depending on your age. When you’re younger you’llbe invested in more growth assets and from age 55, we’ll gradually decrease your growth assets and increase your defensiveassets. We’ll make this gradual shift until you turn 65.

A148063-0119

MySuperinvestment

Age55Under

%

%

%

65 Growth Defensive

Benchmarkasset allocationrange

MySuperMySuper is broadly diversified across mainstream asset classes, with some exposureto private and alternative assets and strategies. It uses both active and passiveinvestment managers. These managers invest in many companies and securities inAustralia and overseas.

How the investment option is managed

In accordance with our investment experts' view of how the economic and marketconditions might change, allocations to the asset classes are actively adjusted awayfrom the benchmark asset allocation, while aiming to remain within the definedranges shown below.

The investment option may be suited toyou if...

you want your investments to change with you through your working life, withoutactively choosing your investmentsyou want to grow your super through a strong bias to growth assetsyou want a long-term investment, andyou understand that there can be large fluctuations in the value of yourinvestment.

7 yearsMinimum suggested time to investThe benchmark is a combination of market indices, weighted according to thebenchmark asset allocation. This ‘composite benchmark’ is explained in the'Considering an investment option' section, outlined earlier. Details of the currentbenchmark are available on plum.com.au

Benchmark

0.46% paInvestment FeeEntry/Exit 0.00%/0.00%Buy/Sell spreads

As MySuper is age based the following tables help explain how MySuper works for you at various stages in your life.

16

Your investmentoptions


MySuperAt age 56At age 55Under age 55To outperform inflation,measured by the ConsumerPrice Index, by 3.4% pa afterinvestment fees and taxes, overany 10 year period.

To outperform inflation,measured by the ConsumerPrice Index, by 3.5% pa afterinvestment fees and taxes, overany 10 year period.



Growth assets

84%

16%Defensive

assetsDefensive

assets

Growth assets

85%

15%Defensive

assets

Growth assets

85%

15%

Benchmark asset allocationand ranges

The asset allocation will movearound the benchmark assetallocation, while remainingwithin the ranges for defensiveand growth assets.The benchmark asset allocationand ranges may change overtime.

2%2%2%Cash7%6%6%Fixed income

7%7%7%Defensive alternatives andother

13%13%13%Growth alternatives and other9%9%9%Property

19%20%20%Global shares9%9%9%Global shares (hedged)

29%29%29%Australian shares5%5%5%Private assets

16% (6% - 36%)15% (5% - 35%)15% (5% - 35%)Defensive assets84% (64% - 94%)85% (65% - 95%)85% (65% - 95%)Growth assets

6 – High (between 4 and 5 yearsin 20 years)



Standard Risk Measure(estimated number of negativeannual returns)

AmountAll costs below are calculatedbased on your balance in thisinvestment option.

0.32% paThis is made up of:



Estimated Indirect Cost Ratio(ICR)1

Estimated performancerelated costs: 0.10% pa

Estimated performancerelated costs: 0.10% pa

Estimated performancerelated costs: 0.10% paEstimated other indirectcosts: 0.22% pa

Estimated other indirectcosts: 0.22% pa

Estimated other indirectcosts: 0.22% pa

0.10 %pa0.10% pa0.10% paEstimated Net transaction cost1

and 2

These are the transaction coststhat have not been recovered bya buy-sell spread or have notbeen included in the ICR above.

0.20% pa0.20% pa0.20% paEstimated Borrowing (gearing)cost1

0.06% pa0.06% pa0.06% paEstimated Property operatingcost1

1 This amount reduces the net return on the investment option. Please refer to the PDS and Fee Brochure for further informationabout these fees and costs, including how they are calculated.2 The estimated Gross transaction cost for the current financial year are 0.18% pa for Under age 55, age 55 and age 56. Anydifference between this amount and the Net transaction cost in the table above is due to amounts recovered by a buy/sellspread or amounts included in the ICR.

17

MySuperAt age 59At age 58At age 57To outperform inflation,measured by the ConsumerPrice Index, by 3.3% pa afterinvestment fees and taxes, overany 10 year period.




Growth assets

80%

20%Defensive

assets

Growth assets

82%

18%Defensive

assets

Growth assets

83%

17%Defensive

assets









5 – Medium to high (between3 and 4 years in 20 years)





0.32% pa0.32% pa0.32% paEstimated Indirect Cost Ratio(ICR)1

This is made up of:This is made up of:This is made up of:

Estimated performancerelated costs 0.10% pa


Estimated performancerelated costs 0.10% paEstimated otherindirect costs 0.22% pa

Estimated otherindirect costs 0.22% pa


0.10% pa0.10% pa0.10% paEstimated Net transaction cost1

and 2




1 This amount reduces the net return on the investment option. Please refer to the PDS and Fee Brochure for further informationabout these fees and costs, including how they are calculated.2 The estimated Gross transaction cost for the current financial year are 0.18% pa for age 57, age 58 and age 59. Any differencebetween this amount and the Net transaction cost in the table above is due to amounts recovered by a buy/sell spread oramounts included in the ICR.

18

MySuperAt age 62At age 61At age 60To outperform inflation,measured by the ConsumerPrice Index, by 3.2% pa afterinvestment fees and taxes, overany 10 year period.




Growth assets

77%

23%Defensive

assets

Growth assets

78%

22%Defensive

assets

Growth assets

79%

21%Defensive

assets


















Estimated performancerelated costs 0.10% paEstimated otherindirect costs 0.22% pa




and 2




1 This amount reduces the net return on the investment option. Please refer to the PDS and Fee Brochure for further informationabout these fees and costs, including how they are calculated.2 The estimated Gross transaction cost for the current financial year are 0.18% pa for age 60, age 61 and age 62. Any differencebetween this amount and the Net transaction cost in the table above is due to amounts recovered by a buy/sell spread oramounts included in the ICR.

19

MySuperAge 65 and overAt age 64At age 63To outperform inflation,measured by the ConsumerPrice Index, by 3.0% pa afterinvestment fees and taxes, overany 10 year period.




Growth assets

70%

30%Defensive

assets

Growth assets

72%

28%Defensive

assets

Growth assets

75%

25%Defensive

assets


















Estimated performancerelated costs 0.10% paEstimated other indirectcosts 0.21% pa

Estimated other indirectcosts 0.20% pa

Estimated other indirectcosts 0.20% pa


and 2




1 This amount reduces the net return on the investment option. Please refer to the PDS and Fee Brochure for further informationabout these fees and costs, including how they are calculated.2 The estimated Gross transaction cost for the current financial year are 0.18% pa for age 63 and 0.17% pa for age 64 and age65 and over. Any difference between this amount and the Net transaction cost in the table above is due to amounts recoveredby a buy/sell spread or amounts included in the ICR.

20

MySuperAs MySuper is age based the following tables help explain how MySuper works for you at various stages in your life.

To achieve this mix of growth and defensive assets which changes as you get older, MySuper uses a combination of the threeinvestment portfolios shown below. When you're younger you'll be 100% invested in one portfolio, MySuper Growth. Fromage 55, we add a second portfolio, MySuper Conservative Growth, where a portion of your MySuper balance will be invested.Shortly after you turn 62, you'll be invested across three portfolios, with a portion of your MySuper balance invested in MySuperCash Plus.

These investment portfolios work together for you so that your balance in MySuper includes both growth assets and defensiveassets.

From age 55, we’ll check how much you have in each portfolio, and adjust your weightings based on your age, as shown below.We’ll do this every three months based on the date of your birthday. Any contributions made to MySuper will also be splitacross these three portfolios based on your age.

Your allocation to each MySuper portfolio at different agesAgeMySuper Cash Plus Portfolio(%)

MySuper Conservative GrowthPortfolio (%)

MySuper Growth Portfolio (%)

100%Under 55 years1%99%554%96%567%93%57

10%90%5813%87%5916%84%6019%81%6122%78%62

2%23%75%635%23%72%648%24%68%65 and over

The percentage figures in the table above have been rounded to whole numbers.

MySuper Cash Plus Portfolio

MySuper Conservative Growth Portfolio

MySuper Growth Portfolio

To outperform the BloombergAusBond Bank Bill Index, beforefees and taxes, over any 1 yearperiod.




Benchmark asset allocation and ranges

The asset allocation will move around the benchmark asset allocation, while remaining within the ranges for defensive andgrowth assets.The benchmark asset allocation and ranges may change over time.

100%7%2%Cash36%6%Fixed income

7%7%Defensive alternatives andother

7%13%Growth alternatives and other5%9%Property

12%20%Global shares5%9%Global shares (hedged)

17%29%Australian shares4%5%Private assets

50% (35% - 65%)15% (5% - 35%)Defensive assets50% (35% - 65%)85% (65% - 95%)Growth assets

1 - Very low (less than 1 year in20 years)

4 - Medium (between 2 and 3years in 20 years)

6 - High (between 4 and 5 yearsin 20 years)


21

Path one- simple choice

Pre-mixed ConservativeTo outperform inflation, measured by the Consumer Price Index, plus 2% pa, after investmentfees and taxes, over rolling 5 year periods.


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

How the investment option ismanagedThe investment option may besuited to you if...

you want to invest with a bias to defensive assets, with some exposure to growth assets,andpreserving your capital is an important but not overriding concern.

3 yearsMinimum suggested time toinvest

Asset class Ranges (%)

Cash 14%

Fixed income 50%

Defensive alternatives and other

6%

Growth alternatives and other

7%

Property 3%Global shares 7%Global shares (hedged) 2%

Australian shares 10%

Private assets 1%

Defensive assets 70% 55-85%

Growth assets 30% 15-45%

Benchmark asset allocation (%)


The asset allocation will movearound the benchmark assetallocation, while remainingwithin the ranges for defensiveand growth assets.

The benchmark asset allocationand ranges may change overtime.

A combination of market indices, weighted according to the benchmark asset allocation.Benchmark3 - Low to medium (between 1 and 2 years in 20 years)Standard Risk Measure

(estimated number of negativeannual returns)

0.51% pa of your balance in this investment option.Investment fee1

Entry/Exit 0.00%/0.00% of any amount moved in or out of this investment option.Buy-sell spreadsAmountAll costs below are calculated

based on your balance in thisinvestment option.

0.24% paThis is made up of:Estimated performance related costs (0.05% pa)Estimated other indirect costs (0.19% pa)


0.13% paEstimated Net transactioncosts1 and 2


0.15% paEstimated Borrowing (gearing)costs1

0.05% paEstimated Property operatingcosts1

1 This amount reduces the net return on the investment option. Please refer to the PDS and Fee Brochure for further informationabout these fees and costs, including how they are calculated.2 The estimated Gross transaction cost for the financial year to 30 June 2019 is 0.18% pa. Any difference between this amountand the Net transaction cost in the table above is due to amounts recovered by a buy/sell spread or amounts included in theICR.

22

Pre-mixed CautiousTo outperform inflation, measured by the Consumer Price Index, plus 2.5% pa, after investmentfees and taxes, over rolling 5 year periods.


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


you want to invest in an approximately equal mix of defensive and growth assets, andyou want a portfolio with some long-term capital growth potential and can tolerate moderatechanges in value.



Cash 8%

Fixed income 36%Defensive alternatives and other

6%


7%

Property 4%Global shares 12%Global shares (hedged) 5%Australian shares 18%Private assets 4%

Defensive assets 50% 35-65%Growth assets 50% 35-65%





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

4 - Medium (between 2 and 3 years in 20 years)Standard Risk Measure(estimated number of negativeannual returns)











23

Pre-mixed ModerateTo outperform inflation, measured by the Consumer Price Index, plus 3% pa, after investmentfees and taxes, over rolling 10 year periods.


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


you want to invest with a bias to growth assets, andyou want a portfolio with a bias to long-term capital growth potential and can toleratemoderate to large changes in value.



Cash 5%Fixed income 18%Defensive alternatives and other

7%


7%

Property 5%Global shares 17%Global shares (hedged) 8%Australian Shares 28%Private assets 5%







5 - Medium to high (between 3 and 4 years in 20 years)Standard Risk Measure(estimated number of negativeannual returns)











24

Pre-mixed AssertiveTo outperform inflation, measured by the Consumer Price Index, plus 3.5% pa, after investmentfees and taxes, over rolling 10 year periods.


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


you want to invest with a strong bias to growth assets, andyou want a portfolio with a strong bias to long-term capital growth potential and can toleratemoderate to large changes in value.

7 yearsMinimum suggested timeto invest



7%


7%

Property 5%Global shares 22%Global shares (hedged) 11.5%Australian shares 34%Private assets 5.5%






A combination of market indices, weighted according to the benchmark asset allocation.Benchmark6 - High (between 4 and 6 years in 20 years)Standard Risk Measure












25

Pre-mixed AggressiveTo outperform inflation, measured by the Consumer Price Index, plus 4% pa, after investmentfees and taxes, over rolling 10 year periods.


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


you want to invest in growth assets, andyou want a portfolio focused on long-term capital growth potential and can tolerate largechanges in value.




2%








6 - High (between 4 and 6 years in 20 years)Standard Risk Measure(estimated number of negativeannual returns)











26

Active - ConservativeTo outperform inflation, measured by the Consumer Price Index, plus 2% pa, after investmentfees and taxes, over rolling 5 year periods.


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






6%


6%








3 - Low to medium (between 1 and 2 years in 20 years)Standard Risk Measure(estimated number of negativeannual returns)






Estimated performance related costs (0.11% pa)Estimated other indirect costs (0.25% pa)






27

Active - CautiousTo outperform inflation, measured by the Consumer Price Index, plus 2.5% pa, after investmentfees and taxes, over rolling 5 year periods.


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

How the investment option ismanaged

The investment option may besuited to you if...





6%


6%



















28

Active - ModerateTo outperform inflation, measured by the Consumer Price Index, plus 3% pa, after investmentfees and taxes, over rolling 10 year periods.


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







7%


6%



















29

Active - AssertiveTo outperform inflation, measured by the Consumer Price Index, plus 3.5% pa, after investmentfees and taxes, over rolling 10 year periods.


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







7%


6%



















30

Active - AggressiveTo outperform inflation, measured by the Consumer Price Index, plus 4% pa, after investmentfees and taxes, over rolling 10 year periods.


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





3%




Asset class Ranges (%)Benchmark asset allocationand ranges















31

MLC ConservativeTo outperform inflation, measured by the Consumer Price Index, plus 2% pa, after investmentfees and taxes, over rolling 5 year periods.


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





6%


6%



Ranges (%)Benchmark asset allocation (%)

Asset classBenchmark asset allocationand ranges















32

MLC CautiousTo outperform inflation, measured by the Consumer Price Index, plus 2.5% pa, after investmentfees and taxes, over rolling 5 year periods.


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





6%


6%



















33

MLC ModerateTo outperform inflation, measured by the Consumer Price Index, plus 3% pa, after investmentfees and taxes, over rolling 10 year periods.


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





7%


6%




















34

MLC AssertiveTo outperform inflation, measured by the Consumer Price Index, plus 3.5% pa, after investmentfees and taxes, over rolling 10 year periods.


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





7%


6%



















35

MLC AggressiveTo outperform inflation, measured by the Consumer Price Index, plus 4% pa, after investmentfees and taxes, over rolling 10 year periods.


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





3%



















36

Path two- flexible choice

Cash FundTo outperform the Reserve Bank of Australia Cash Rate Target, before fees and taxes, overrolling 1 year periods.


The fund invests in deposits with banks (100% National Australia Bank as at 31 December 2019)and may also invest in other comparable high quality securities.


you want to invest in a low risk cash portfolio.

No minimumMinimum suggested time toinvest

100% CashBenchmark asset allocation

The benchmark asset allocationmay change over time.

Reserve Bank of Australia Cash Rate Target Benchmark

1 - Very low (less than 1 year in 20 years)Standard Risk Measure(estimated number of negativeannual returns)











37

Diversified Fixed InterestTo outperform the composite benchmark of 50% Bloomberg AusBond Composite Bond (AllMaturities) Index and 50% Bloomberg Barclays Global Aggregate Total Return Index (hedgedinto Australian dollars), before fees and taxes, over rolling 3 year periods.


The fund is diversified across different types of fixed income securities in Australia and aroundthe world. The securities are predominately investment grade and typically longer dated. Theaverage term to maturity is normally in the range of 3 to 6 years. Foreign currency exposureswill be substantially hedged to the Australian dollar. As a result of capital restructures of bondissuers, the fund may have an incidental exposure to shares from time to time.



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

3-5 yearsMinimum suggested time toinvest

50% Australian fixed incomeBenchmark asset allocation

50% Global fixed incomeThe benchmark asset allocationmay change over time.

50% Bloomberg AusBond Composite Bond (All Maturities) IndexBenchmark

50% Bloomberg Barclays Global Aggregate Total Return Index (hedged into Australian dollars)












38

Diversified Property SecuritiesTo outperform the composite benchmark of 75% S&P/ASX 300 A-REIT Total Return Index and25% FTSE EPRA/NAREIT Global Developed Index (hedged into Australian dollars), before feesand taxes, over rolling 5 year periods.


The portfolio invests primarily in Australian property securities, including listed Real EstateInvestment Trusts and companies across most major listed property sectors. It does not normally


invest in direct property, but may have some exposure to property securities listed outside ofAustralia.


you want to invest in an actively managed property securities portfolio that invests inAustralia, with some global exposure, and diversifies across property sectors and REITs.


75% Australian listed property securitiesBenchmark asset allocation

25% Global listed property securitiesThe benchmark asset allocationmay change over time.

Composite benchmark of 75% S&P/ASX 300 A-REIT Total Return Index andBenchmark

25% FTSE EPRA/NAREIT Global Developed Index (hedged into Australian dollars)

7 - Very high (more than 6 years in 20 years)Standard Risk Measure(estimated number of negativeannual returns)











39

Australian Property Securities – IndexTo track the S&P/ASX 300 A-REIT Total Return Index, before fees and taxes, over rolling 5 yearperiods.


The fund invests primarily in Australian listed property securities, including listed Real EstateInvestment Trusts and companies across most major listed property sectors. It does not normally


invest in direct property, and may have some exposure to property securities listed outside ofAustralia from time to time. The fund may invest in securities that have been removed, or areexpected to be included in the index.


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




S&P/ASX 300 A-REIT Total Return IndexBenchmark7 - Very high (more than 6 years in 20 years)Standard Risk Measure












40

Australian SharesTo outperform the S&P/ASX 300 Total Return Index over rolling 5 year periods, before fees andtaxes.


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



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


100% Australian sharesBenchmark asset allocation


S&P/ASX 300 Total Return IndexBenchmark7 - Very high (more than 6 years in 20 years)Standard Risk Measure












41

Australian Shares - IndexTo track the S&P/ASX 300 Total Return Index, before fees and taxes, over rolling 5 year periods.Investment objectiveThe fund invests primarily in companies listed on the Australian Securities Exchange (and otherregulated exchanges), and is typically diversified across major listed industry groups. It mayhave a small exposure to companies listed outside of Australia from time to time. The fundmay invest in securities that have been removed, or are expected to be included in the index.



you want to invest in a passively managed Australian share fund that's diversified acrossindustries and companies.




S&P/ASX 300 Total Return IndexBenchmark












42

International SharesTo outperform the MSCI ACWI Net Index ($A) over rolling 5 year periods, before fees and taxes.Investment objectiveThe fund invests primarily in companies listed (or expected to be listed) on share marketsanywhere around the world, and is typically diversified across major listed industry groups.Foreign currency exposures will generally not be hedged to the Australian dollar.



you want to invest in an actively managed global share portfolio that's diversified acrossinvestment managers, countries (developed and emerging), industries and companies, andyou're comfortable having foreign currency exposure.


100% Global sharesBenchmark asset allocation


MSCI ACWI Net Index ($A)Benchmark












43

International Shares - IndexTo track the MSCI World (ex Aust) Net Index ($A), before fees and taxes, over rolling 5 yearperiods.


The fund invests primarily in companies listed (or expected to be listed) on share marketsanywhere around the world, and is typically diversified across major listed industry groups.The fund may invest in securities that have been removed, or are expected to be included inthe index. Foreign currency exposures will generally not be hedged to the Australian dollar.



you want to invest in a passively managed global share fund that's diversified acrosscountries, industries and companies, andyou're comfortable having foreign currency exposure.




MSCI World (ex Aust) Net Index ($A)Benchmark6 - High (between 4 and 6 years in 20 years)Standard Risk Measure












44

International Shares - Index (hedged)To track the MSCI World (ex Aust) Net Index (hedged into Australian dollars), before fees andtaxes, over rolling 5 year periods.


The fund invests primarily in companies listed (or expected to be listed) on share marketsanywhere around the world, and is typically diversified across major listed industry groups.The fund may invest in securities that have been removed, or are expected to be included inthe index.


Foreign currency exposures will generally be substantially hedged to the Australian dollar.


you want to invest in a passively managed global share fund that's diversified acrosscountries, industries and companies, andyou don't want foreign currency exposure.


100% Global shares (hedged)Benchmark asset allocation


MSCI World (ex Aust) Net Index (hedged into Australian dollars)Benchmark












45

Cautious - Index PlusTo outperform inflation, measured by the Consumer Price Index, plus 2.5% pa, after investmentfees and taxes, over rolling 5 year periods.


The fund has an approximately equal exposure to growth and defensive assets. The allocationsto these assets are actively managed within defined ranges, in accordance with our changingview of potential risks and opportunities in investment markets. The fund is broadly diversifiedacross mainstream asset classes.


Our investment experts select investment managers from around the world. We use specialistindex and index enhanced managers in certain asset classes, and selectively use active managerswhere our investment experts believe it makes the greatest difference to the portfolio's risksor returns. These managers invest in many companies and securities in Australia and overseas.


you want a diversified fund that has similar weightings to defensive and growth assets you want to rely largely on the market for returnsyou want some long-term capital growth, andyou understand that there can be moderate to large fluctuations in the value of yourinvestment.


Cash 6%

Fixed income 43%


2%


4%

Property 3%Global shares 23%

Australian shares 19%




Ranges (%)Asset classBenchmark asset allocationand ranges















46

Moderate - Index PlusTo outperform inflation, measured by the Consumer Price Index, plus 3% pa, after investmentfees and taxes, over rolling 10 year periods.


The fund has a strong bias to growth and some exposure to defensive assets. The allocationsto these assets are actively managed within defined ranges, in accordance with our changingview of potential risks and opportunities in investment markets. The fund is broadly diversifiedacross mainstream asset classes.




you want a diversified fund that invests mainly in growth assetsyou want to rely largely on the market for returnsyou want long-term capital growth, andyou understand and accept that there can be large fluctuations in the value of yourinvestment.




2%


4%

Property 4%Global shares 33%Australian shares 28%


















47

Assertive - Index PlusTo outperform inflation, measured by the Consumer Price Index, plus 3.5% pa, after investmentfees and taxes, over rolling 10 year periods.


The fund invests primarily in growth assets with a small exposure to defensive assets. Theallocations to these assets are actively managed within defined ranges, in accordance with ourchanging view of potential risks and opportunities in investment markets. The fund is broadlydiversified across mainstream asset classes.




you want a diversified fund that invests predominately in growth assetsyou want to rely largely on the market for returnsyou want long-term capital growth, andyou understand that there can be large fluctuations in the value of your investment.




1%


4%

Property 4%Global shares 42%Australian shares 33%






A combination of market indices, weighted according to the benchmark asset allocation.Benchmark6 - High (between 4 and 6 years in 20 years)Standard Risk Measure












48

Path three- specialist choice

Australian Fixed InterestTo outperform the Bloomberg AusBond Composite Bond (All Maturities) Index, before feesand taxes, over rolling 3 year periods.


The fund invests predominately in Australian fixed income and includes investments in creditsecurities, sovereign bonds and cash. The securities are predominately investment grade andtypically longer dated.


you want to invest in a fixed income fund that’s actively managed and diversified acrossinvestment managers, bond sectors and securities


3-5 yearsMinimum suggested time toinvest

100% Australian fixed incomeBenchmark asset allocation


Bloomberg AusBond Composite Bond (All Maturities) Index Benchmark












49

International Fixed InterestTo outperform the Bloomberg Barclays Global Aggregate Total Return Index (hedged intoAustralian dollars), before fees and taxes, over rolling 3 year periods.


This fund is designed to deliver broad exposure to international fixed income markets. Thesecurities are predominately investment grade and typically longer dated. Foreign currencyexposures will be substantially hedged to the Australian dollar.



you want to invest in a portfolio that's actively managed and diversified across global fixedincome securities, bond sectors and countries, andyou don't want foreign currency exposure.

3 - 5 yearsMinimum suggested time toinvest

100% Global fixed incomeBenchmark asset allocation


Bloomberg Barclays Global Aggregate Total Return Index (hedged into Australian dollars)Benchmark












50

Australian Property SecuritiesTo outperform the S&P/ASX 300 A-REIT Total Return Index, before fees and taxes, over rolling5 year periods.


The fund is diversified across a variety of property sectors including commercial, retail andindustrial sectors predominantly in the Australian market. Investing in listed property securitiesprovides a higher level of liquidity than investing directly in property.



you want to invest in an actively managed Australian property securities fund.




S&P/ASX 300 A-REIT Total Return IndexBenchmark7 - Very high (more than 6 years in 20 years)Standard Risk Measure












51

Australian Shares - Small CompaniesTo outperform the S&P/ASX Small Ordinaries Total Return Index, before fees and taxes, overrolling 5 year periods.


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



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




S&P/ASX Small Ordinaries Total Return IndexBenchmark7 - Very high (more than 6 years in 20 years)Standard Risk Measure












52

Australian Shares - EthicalTo outperform the S&P/ASX 300 Total Return Index, before fees and taxes, over rolling 5 yearperiods.


Ethical investing takes into account attributes other than solely the financial return potentialof particular investments in the Australian market. An ethical investment policy may include,for example, a decision to avoid certain industries or to positively favour investing in otherindustries seen as more ethical or socially responsible.



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




S&P/ASX 300 Total Return IndexBenchmark












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

Ethical ExclusionsThey don't invest in companies that derive a material proportion of their revenue from the manufacture or sale of alcohol ortobacco, the operation of gambling facilities or the manufacture of gambling equipment, uranium extraction or the manufactureof weapons or armaments.

SRI ScreeningCompanies remaining after the ethical exclusions are then subject to Socially Responsible Investing (SRI) screening to evaluatehow their business practices impact society and the environment. The SRI screening involves three steps:

1. Negative screens: Companies are rated on their positive environmental or social impacts and practices in relation to anumber of criteria including human rights, labour standards, the environment, corporate governance, animal rights andgenetically modified organisms.

2. Positive screens: Companies are rated on their positive environmental or social impacts and practices in relation to a numberof criteria including renewable energy, waste (direct and downstream), corporate governance, use of quality andenvironmental management systems, and employee health and safety.

3. Universe inclusion: Scores from all negative and positive screens are then combined. Companies that score positively becomeallowable investments while companies with negative scores are excluded.

If the manager becomes aware that the fund is invested in a company that no longer meets the screen standards, the investmentwill be sold as soon as practicable in an orderly manner.

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International Shares - NeutralTo outperform the MSCI ACWI Net Index ($A), before fees and taxes, over rolling 5 year periods.Investment objectiveA neutral fund is one which has no specific investment- style bias. The investment manageraims to produce competitive returns through periods characterised by value and growth stylemomentums. A neutral-style fund is also known as a core-style fund. This fund invests in shareslisted on global stock exchanges. Foreign currency exposures will generally not be hedged toAustralian dollars.



you want to invest in an actively managed global share portfolio that's diversified acrossinvestment managers, countries (developed and emerging), industries and companies, andyou're comfortable having foreign currency exposure.




MSCI ACWI Net Index ($A)Benchmark












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International Shares - Emerging MarketsTo outperform the MSCI Emerging Markets Net Index ($A), before fees and taxes, over rolling5 year periods.


An emerging markets fund invests in countries that are considered emerging markets, such asRussia, Brazil, China, India, South Korea and Thailand. They generally represent a higher riskto members. This fund invests in shares listed on the stock exchanges of countries classifiedas emerging markets. Foreign currency exposures will generally not be hedged to Australiandollars.



you want to invest in an actively managed, global share portfolio that’s diversified acrossinvestment managers, countries, industries and companies with a focus on investing inemerging markets, andyou’re comfortable having foreign currency exposure.




MSCI Emerging Markets Net Index ($A)Benchmark

7 - Very high (More than 6 years in 20 years)Standard Risk Measure(estimated number of negativeannual returns)











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Diversified Shares - GearedTo provide growth over the long term through a portfolio of growth assets, which focuses onAustralian and global shares. The portfolio will increase the amount of capital invested throughthe use of borrowing (with a target exposure to growth assets of 130%).


Investment markets are the main driver of the portfolio’s investment returns. The portfolio’sallocation to investment markets and gearing level are shown in its benchmark asset allocationand ranges below. The benchmark asset allocation is invested in growth assets with minimalexposure to defensive assets.


The portfolio has a target gearing level of 30%. This means for every $1,000 you have invested,the portfolio targets borrowings of $300. The actual gearing level changes every day as a resultof market movements. That’s why the portfolio’s actual gearing level is monitored against itstarget and the borrowings are regularly moved back to the target level. To maintain the targetgearing level, we may need to adjust the borrowings as well as buy and sell assets. This increasedtrading will incur transaction costs and realise taxable gains and losses. The actual gearinglevel may move significantly away from the target, without prior notice to you, for reasonsincluding:

significant market volatilitylegislative changesaccessing borrowings, including any lender imposed requirement to repay borrowings, andchanges to gearing costs.


you want a fund focused on long-term capital growth.you want to gear a portfolio of growth assets but don't want the burden of obtaining andmanaging your own loan.you expect growth in the assets' value to exceed the costs of gearing, andyou're comfortable with the risks of gearing including extra volatility and increased risk ofcapital loss.




2%


5%

Global shares 63%Australian shares 52%

Private assets 8%Gearing* (30%)




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















1 This amount reduces the net return on the investment option. Please refer to the PDS and Fee Brochure for further informationabout these fees and costs, including how they are calculated.

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2 The estimated Gross transaction cost for the financial year to 30 June 2019 is 0.12% pa. Any difference between this amountand the Net transaction cost in the table above is due to amounts recovered by a buy/sell spread or amounts included in theICR.

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Australian Shares - IncomeAims to deliver a growing tax advantaged income stream from a portfolio with a focus onAustralian Industrial shares that have the potential to provide future growth in dividends.


The fund invests primarily in Australian companies that have the potential to provide futuregrowth in dividends.The fund is expected to generate tax-efficient returns by:


investing in companies expected to have high franking levels, andcarefully managing the realisation of capital gains.

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

Income is reinvested in the fund.


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




N/ABenchmark












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

Nearest suitable option in thePlum Personal Plan

Option not available in thePlum Personal Plan

Cash FundEssentials - Cash PlusActive - ConservativeEssentials - ConservativeActive - CautiousEssentials - CautiousActive - ModerateEssentials - ModerateActive - AssertiveEssentials - AssertiveActive - AggressiveEssentials - AggressiveCash FundJANA Cash FundActive - ConservativePlus ConservativeActive - CautiousPlus CautiousActive - ModeratePlus ModerateActive - AssertivePlus AssertiveActive - AggressivePlus AggressivePre-mixed ConservativeMIC ConservativePre-mixed ModerateMIC ModerateInternational Shares - IndexMIC Global SharesAustralian Shares - IndexMIC Australian SharesPre-mixed ConservativeConservativePre-mixed CautiousCautiousPre-mixed ModerateModeratePre-mixed AssertiveAssertivePre-mixed AggressiveAggressiveCash FundCash optionAustralian SharesAustralian Shares optionInternational SharesGlobal Shares (unhedged) optionInternational SharesGlobal Shares (hedged) optionDiversified Property SecuritiesProperty optionDiversified Fixed InterestFixed Interest option

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For more information call us fromanywhere in Australia on1300 55 7586 or contact yourfinancial adviser.

Postal address

Plum SuperGPO Box 63Melbourne VIC 3001

Registered office

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

plum.com.au

OBJA117802-0420


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