separately managed account - mlc

Separately Managed AccountProduct Disclosure Statement - Part 2Model Menu

ABN 45 006 302 987AFSL 236466

Issued by NavigatorAustralia Limited (NAL)

Preparation date1 October 2021

The purpose of this Product Disclosure Statement (PDS) isto give you the information you need when investing in the

Integrated Separately Managed Account (SMA) which is aRegistered Managed Investment Scheme. ARSN 138 086 889.

This PDS is comprised of two parts:Part 1 – an overview of how the SMA works.Part 2 – (this document) the applicable SMA model menuavailable to you - information on the model portfoliosincluding fees and costs that apply.The latest versions of these documents, which together

comprise this PDS are available at mlc.com.au.

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

Contents

4Summary of the Model Portfolios

7Investment manager profiles

11Model Portfolios

29Fees and other costs

33Other important information

This Product Disclosure Statement (PDS) is issued by Navigator Australia Limited (NAL) ABN 45 006 302 987 AFSL 236466, the responsibleentity of the Integrated Separately Managed Account ARSN 138 086 889 (SMA). NAL is part of the group of companies comprising IOOF HoldingsLtd ABN 49 100 103 722 and its related bodies corporate (IOOF Group).

The information in this PDS is general in nature and doesn’t take into account your objectives, financial situation or individual needs. Beforeacting on any of this information you should consider whether it is appropriate for you. You should consider obtaining financial advice beforemaking any decisions based on this information.

References to 'we', 'us' or 'our' are references to NAL, unless otherwise stated.

This offer is made in Australia in accordance with Australian laws.

Each referenced investment manager has given written consent to be named in the PDS and to the inclusion of statements made by them. Asat the date of the PDS, these consents have not been withdrawn.

In some cases, information in this PDS has been provided to us by third parties. While it is believed the information is accurate and reliable, theaccuracy of that information is not guaranteed in any way.

Investment through the SMA, and the information in this PDS, is only intended to be accessed by persons who hold an account in an investordirected portfolio service, a master trust or a superannuation fund (each referred to in this PDS as a “platform”) that is administered or operatedby a IOOF Group company (referred to in this PDS as the “platform operator”). When you apply to invest in the SMA via the relevant platform,the platform operator will hold the relevant interest in the SMA on your behalf according to the terms of that platform.

The information in this PDS is subject to change. Changes to the SMA and the Model Portfolios will be made from time to time and we may addor remove Model Portfolios. The Platform operator will advise you of changes to information in this PDS that are materially adverse. We mayprovide this information to you by mail, email or by making the information available at mlc.com.au. We’ll let you know when information aboutyour Model Portfolio has been made available online. If you prefer to receive updates about your account by mail, please let us know.

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

An online copy of this PDS is available at mlc.com.au/sma

Separately Managed Account Product Disclosure Statement | 3

https://mlc.com.au

https://mlc.com.au

https://mlc.com.au/sma

Model PortfoliosModel portfolios are a way for you to gainexposure to a range of assets according toa defined investment strategy andobjective. Model portfolios invest in a

range of assets which may include listedsecurities, managed funds, ETFs(Exchange Traded Funds), cash and fixedinterest investments. You can choose onemodel portfolio option or a combinationof options.

The minimum initial investment isdifferent for each Model Portfolio. Thereis no minimum for additional investmentsyou may choose to make in your modelportfolio.

Modelmanagementfee (% pa)

Benchmark Automaticpayment ofinvestmentincome

Investmentapproach

Indicativenumber ofsecuritiesheld

Investmentmanager

Listed security ModelPortfolios

Index

0.21S&P/ASX 20YesIndex20AntaresBlue Chip Top 20Accumulation Index

Value/Income

0.46S&P/ASX 200YesIncome15–25AntaresAntares Dividend BuilderIndustrials AccumulationIndex

0.55S&P/ASX 200YesIncome15-25JBWereJBWere IncomeAccumulation Index

0.55Benchmark unawareYesIncome10-25JBWereJBWere Listed FixedIncome

0.77S&P/ASX 300YesValue/Income25–40PerennialValue

Perennial Value Sharesfor Income Total Return Index (gross

dividend yield)

0.81S&P/ASX 300 AREITYesIncome15-30ZurichZurich Australian ListedProperty Accumulation Index

Core/Growth

0.62S&P/ASX 200YesCoreUp to 35AntaresAntares EliteOpportunities Accumulation Index

0.75Return of the S&P/ASX 200NoGrowth15-30AntaresAntares Ex-20 AustralianEquities Accumulation Index excluding

stocks listed in the S&P/ASX20 Accumulation Index

0.92S&P/ASX 300NoCore20–30AusbilAusbil AustralianConcentrated Equities Accumulation Index

0.60S&P/ASX 300YesCore15-35PendalPendal Australian ShareTotal Return Index

0.40S&P/ASX 100YesCore30–40RedpointRedpoint IndustrialsIndustrials AccumulationIndex

4 | Separately Managed Account Product Disclosure Statement

Summary of the Model Portfolios

ModelManagementFee (% pa)

EstimatedICR rebate(% pa)**

EstimatedICR(% pa)*

EstimatedBuy-SellSpread range(%)

Automaticpayment ofinvestmentincome

Indicativenumber ofinvestmentsheld⁺

Investmentmanager

Multi-Asset ModelPortfolios

Growth

0.3050.0000.6760.00 - 0.40%Yes8 -18Lonsec InvestmentSolutions

PIC Lifecycle GrowthModerate


PIC Lifecycle GrowthAssertive


PIC Lifecycle GrowthAggressive

0.3050.1100.6500.00 - 0.27%Yes30 - 40MLC AssetManagement

MLC PremiumModerate


MLC PremiumAssertive


MLC PremiumAggressive

Income


PIC Lifecycle IncomeConservative


PIC Lifecycle IncomeModerate


PIC Lifecycle IncomeAssertive



ModelManagementFee (% pa)

EstimatedICR rebate(% pa)**

EstimatedICR(% pa)*

EstimatedBuy-Sell Spreadrange (%)

Automaticpayment ofinvestmentincome

Indicativenumber ofinvestmentsheld⁺

Investmentmanager

Multi-AssetModel Portfolios

Enhanced Index


MLC ValueModerate


MLC ValueAssertive


MLC ValueAggressive

The estimated ICR and model management fees make up the total cost for investing in these options. More detail can be found onpage 29 - Fees and other costs.

The Indirect Costs are an estimation of the costs that will be incurred through investing in the underlying managed investment schemes. The actual costs incurred

may vary. These costs include any applicable expense recovery and performance fee payable to the investment manager of the underlying managed investment

schemes. We expect the Indirect Costs to be between-0.10% to +0.10% of this estimate. For example, in the case of Indirect Costs of 0.40%, the range would be

*

between 0.30% and 0.50%. The estimated ICR rates shown above are gross of any rebates.

Estimated ICR rebates are an estimation of the rebate that may be incurred through investing in the Model Portfolio. Rebates have been individually negotiated by

NAL with investment managers and may change without prior notice to you.

**

Multi-Asset Model Portfolios may invest in managed investment schemes which expand your breadth of investment over additional securities and trusts increasing

diversification.

+



Antares Capital Partners Ltd (‘Antares’)specialises in the active management ofAustralian shares and listed propertysecurities. Since its inception in 1994, theAntares team has established itself as aspecialist in the active management ofAustralian equities. Key to Antares’success is the experience and judgmentof its investment team. Antares isdedicated to providing investmentsolutions to both institutional and retailclients. Antares aims to have a dynamicculture and quality investment team thatcan deliver a range of investmentsolutions.

The Antares team believes that superiorinvestment performance can only beachieved through a disciplined andsceptical approach to investing.Fundamental bottom up research that isdetailed, style agnostic and systematicunderpins Antares stock selection. Thisenables the conviction and courage tomove against markets and exploit theirinefficiencies.

Antares believes that the pricing of sharesin the Australian share market is at timesinefficient. This mispricing occurs for anumber of reasons:

Investors take a short term view;

Investors under or over react to changesin a company’s operating environment;and

Investors make incorrectgeneralisations about similarcompanies.

Antares believes these inefficiencies canbe exploited through fundamentalcompany analysis.

Ausbil Investment Management Limitedis a leading Australian investmentmanager. Established in April 1997, Ausbilmanages Australian and internationalsecurities for major superannuation funds,institutional investors, master trust andretail clients. Ausbil manage over $15billion in active Australian and globalequity investments (as at 30 June 2021).Ausbil is owned by its employees andindirectly by New York Life InvestmentManagement Holdings LLC (New York LifeInvestments), a wholly-owned subsidiaryof New York Life Insurance Company.New York Life Investments has more thanUS$500 billion in assets undermanagement. New York Life Investments,through its multi-boutique investmentstructure, has a number of boutiqueaffiliates including MacKay Shields,Candriam Investors Group, PA Capital andGoldPoint Partners.

Ausbil’s company structure embraces fourcriteria important in the selection of aninvestment manager:

Solid ownership structure providingstrong financial integrity to theinvestment manager;

Key management incentivised by wayof ownership in the business;

Proven investment processes andperformance track record in core areasof expertise with a strong focus on riskmanagement skills;

An experienced and stable team ofinvestment managers.

The investment philosophy and corporategoals of Ausbil have been formulated toprovide a tightly defined and disciplinedinvestment management style that isactive and incorporates quantitativeinputs and risk awareness. Ausbil’s stylepursues the goal of adding value from aclear set of transparent processes thatseek to enhance performance, whilstmanaging risk. Ausbil is a signatory to thePrinciples for Responsible Investment(PRI) and has a dedicated environmental,social and governance (ESG) research teamwho provide an in-house service.


Investment manager profiles

Pendal Institutional Limited (Pendal) is aglobal investment management businessfocused on delivering superior investmentreturns for their clients through activemanagement.

Pendal offers investors a range ofAustralian and international investmentchoices including shares, propertysecurities, fixed income and cashstrategies, as well as multi-asset andresponsible investments. To complementits in-house expertise, Pendal alsopartners with leading global investmentmanagers.

Pendal does not have a ‘house view’ andoperates a multi-boutique style business.Their proven and experienced fundmanagers have the autonomy to makedecisions with conviction, built on aphilosophy of meritocracy that fosterssuccess from a diversity of insights andapproaches to investment. Pendal strivesfor superior results through a performanceculture that backs independent actions.

Pendal’s investment teams are supportedby a strong operational platform acrossrisk and compliance, sales, and marketingand operations, allowing their fundmanagers to focus on generating returnsfor their clients.

Pendal is a wholly owned subsidiary ofPendal Group Limited and is one ofAustralia’s largest and most enduring pureinvestment managers (ASX: PDL).

JBWere was established in 1840 and is ahighly regarded Private Wealth brandacross the Australian wealth managementindustry.

The management of intergenerational,family and institutional wealth has beenthe cornerstone of the JBWere businesssince inception.

JBWere Limited provides clients with anextensive array of investment options.

The organisation is focused on deliveringleading investment research insights,solutions and portfolio managementservices to an extensive range of retailand sophisticated investors. JBWere,through its financial networks, providesspecialised research capabilities across adiversified suite of asset classes includingAustralian equities, global equities,Australian and international fixed interestand property. The JBWere InvestmentStrategy Group (ISG) is focused onidentifying companies with high qualityearnings growth that can be purchased ata reasonable price and those companiesthat have identifiable and sustainablebusiness models.

The ISG team adheres to a well-definedportfolio construction methodology withextensive risk management tools.

Perennial Value is a specialist, activeinvestment management firm. Formed in2000 and led by well-known Valueinvestor John Murray, Perennial Value’ssole focus is to deliver excellence in fundsmanagement through equity ownershipand the alignment of interests betweenkey investment management staff andour clients.

Perennial Value seeks to buy shares ingood businesses that are undervalued bythe market, with a belief that goodbusinesses are eventually recognised bymarkets and are positively revalued.



The PIC Lifecycle portfolios are managedby Lonsec Investment Solutions Pty Ltd(LIS), and incorporate advice and inputfrom MLC Asset Management Pty Ltd inareas such as asset allocation, to providea blend of ideas from different sources tostructure portfolios.

LIS provides extensive expertise inportfolio construction and managerselection in the construction of the PICLifecycle portfolios. Drawing on Lonsec’sin-depth investment product research,LIS provides access to a range ofinvestment solutions across managedfunds, listed products and alternativeassets. LIS is owned by Lonsec HoldingsPty Ltd.

MLC Asset Management Pty Ltd licensesPrivate Investment Consulting (PIC) toprovide specialist asset consultingservices to LIS. PIC provides the insightsof JANA Investment Advisors as thesource of primary capital markets researchand asset allocation views that areconsidered by the joint Lonsec/PICinvestment committee responsible for thePIC Lifecycle portfolios. JANA is a leadingAustralian investment consultant withextensive experience in dynamic assetallocation.

Redpoint is a boutique fund managerspecialising in listed asset classesincluding Australian equities,international equities, globalinfrastructure and global property.

As a boutique that’s majority-owned by itsemployees, Redpoint’s interestsare closely aligned with its clients.Redpoint’s partnership withGSFM provides them with financialstrength and sales support so they canremain focused on what they do best –delivering enduring investment outcomesfor their clients.

The Redpoint team applies theirknowledge of equity markets and deepunderstanding of risk with the aim ofdelivering investment solutions that arecost efficient, well-diversified and meettheir investment objectives.

Zurich Financial Services Australia is partof the worldwide Zurich Financial ServicesGroup, an insurance-based financialservices provider with a global networkof subsidiaries and offices in NorthAmerica and Europe as well as in AsiaPacific, Latin America and other markets.

Zurich Investments is the fundsmanagement arm of Zurich FinancialServices Australia. Through ZurichInvestments, investors can gain exclusiveaccess to a range of specialist managers.Rather than managing money in-house,Zurich Investments forms long-termstrategic investment partnerships withspecialist investment managers whopossess a successful performance trackrecord and adhere to a disciplinedinvestment style.

Zurich Investments has appointedRenaissance Property Securities Pty Ltd(Renaissance) as its strategic investmentpartner for Australian Property Securitiesinvestments. Renaissance was establishedin April 2003 as a division of RenaissanceAsset Management and combines over 40years of Australian property securitiesinvestment management experience.



MLC Asset Management is one ofAustralia’s most experienced investmentmanagers, with over 35 years’ experiencedesigning and managing portfolios andover $150 billion* in assets undermanagement.

The team is well-resourced with combinedexperience of more than 200 years indesigning and managing all aspects of aportfolio including asset allocation,investment manager selection, riskmanagement and implementation.

The team utilise a market-leadinginvestment approach to structureportfolios with the aim of delivering morereliable returns in many potential marketenvironments. And, as their assessmentof world markets changes, the portfoliosare evolved to manage new risks andcapture new opportunities.

* MLC Asset Management is a businessdivision in the IOOF Group of Companies.It includes a range of businesses andpartners that in aggregate manage overA$175bn assets under management as at30 June 2021.



Blue Chip Top 20 Model Portfolio

Index

AntaresInvestment manager

To deliver similar returns to the S&P/ASX 20 Accumulation Index before feesand costs.

Investment objective

The Model Portfolio passively invests in securities included, or that are expectedto be included, in the Benchmark. The Model Portfolio aims to maintain thesecurity’s Benchmark weighting as accurately as possible at all times.

Investment strategy

S&P/ASX 20 Accumulation IndexBenchmark

20Indicative number of different listed securities

1–10Indicative cash holding (%)

YesAutomatic payment of investment income

0.21Model management fee (% pa)

Antares Dividend Builder Model Portfolio

Income


The primary objective is to regularly deliver higher levels of dividend income ona tax effective basis than the Benchmark. The other objective is to achievemoderate capital growth in a tax effective manner over a rolling 5 year period.


The Model Portfolio invests in a diversified portfolio of high yielding Australiansecurities that aim to grow their dividends over time. Emphasis is placed onsecuring franked income and minimising security turnover to keep net realised

Investment strategy

capital gains low. Securities with a dividend yield return in the top quartile ofthe Index are generally selected

S&P/ASX 200 Industrials Accumulation IndexBenchmark

10–25Indicative number of different listed securities





Model Portfolios

JBWere Income Model Portfolio

Income

JBWereInvestment manager

To enhance the value of investment capital by generating combined capital andincome returns that exceed the rate of inflation over the longer term (5 yearsplus).


The Model Portfolio aims to produce a consistent income stream, with a dividendyield target of 1% per annum higher than that of the S&P/ASX 200 AccumulationIndex. The targeted volatility of the Model Portfolio is at or below the Benchmarkvolatility over a rolling 5 year period.

The Model Portfolio is Benchmark aware and JBWere uses stock selection andModel Portfolio construction to obtain an outcome that is defensive in naturewith a dividend yield higher than the Benchmark.

Investment strategy

Reflecting the nature and focus on delivering a consistent income stream, theModel Portfolio is likely to have a greater component of income relative to capitalgain in comparison to the S&P/ASX 200 Accumulation Index.

S&P/ASX 200 Accumulation Index.Benchmark

15-25Indicative number of different listed securities





Model Portfolios

JBWere Listed Fixed Income Model Portfolio

Income

JBWereInvestment manager

To outperform the RBA Cash rate after fees and costs by 200 basis points overa rolling 5 year period.


Further, the risk objective of the manager is to have no more than 3 negativeannual investment returns over a rolling 20 year period.

The Model Portfolio invests in ASX-listed securities which may include corporateand government bonds, hybrids and convertible notes recommended by JBWereLimited. While the Model Portfolio aims to be fully invested at all times,

Investment strategy

short-term allocations to cash may occur. The Model Portfolio’s target creditquality is investment-grade at the issuer level. Areas that JBWere focuses onwithin their investment selection criteria include credit quality, the expectedlevel and reliability of coupon payments, adequacy of the trading margin, liquidity,visibility of maturity, and a value-triggering event.Reflective of its focus on risk, this Model Portfolio is not expected to be aheavily-traded Model Portfolio. Moreover, the general approach is to holdinstruments to maturity; however, Model Portfolio changes will be made inresponse in market movements and/or changes in credit quality.

Benchmark unawareBenchmark






Model Portfolios

Perennial Value Shares for Income Model Portfolio

Value

Perennial ValueInvestment manager

To provide investors a dividend yield, adjusted for applicable franking creditsand before fees and costs, above the S&P/ASX 300 Accumulation Index over arolling 3 year period.


The Model Portfolio invests in a well diversified range of Australian listedcompanies, which Perennial Value believes have the ability to pay a consistentlevel of dividends and which demonstrate financial soundness. Fundamental

Investment strategy

company research is applied to select a portfolio of companies that havea track record of paying a consistent level of cash dividends (including frankingcredits, where applicable) and demonstrate a sound financial position.

S&P/ASX 300 Accumulation Index (gross dividend yield)Benchmark


1-10Indicative cash holding (%)




Model Portfolios

Zurich Australian Listed Property Model Portfolio

Value

ZurichInvestment manager

To provide investors with an income stream and capital growth over the mediumto long term. The portfolio aims to outperform the S&P/ASX 300 AREITAccumulation Index over a period of five years.


In managing the Zurich Australian Listed Property Model Portfolio, ZurichInvestments aims to identify and invest in property securities whose marketprice is less than its intrinsic value, based on research and an assessment of their

Investment strategy

underlying value. The investment team conducts rigorous individual stockresearch with the choice of securities not limited to those represented in theindustry benchmark.

S&P/ASX 300 AREIT Accumulation IndexBenchmark





Antares Elite Opportunities Model Portfolio

Core


The investment objective is to outperform the S&P/ASX 200 Accumulation Index(after fees) over a rolling 5 year period.


The Model Portfolio invests in a concentrated portfolio of typically no more than35 companies identified as having the potential to offer significant long-termvalue. Holdings of securities are not constrained by index weightings or by

Investment strategy

individual security and sector limits.


Up to 35Indicative number of different listed securities





Model Portfolios

Antares Ex-20 Australian Equities Model Portfolio

Growth


The investment objective is to outperform the return of the S&P/ASX 200Accumulation Index excluding stocks listed in the S&P/ASX 20 AccumulationIndex (after fees) over a rolling 5 year period.


The Model Portfolio is an actively managed, highly concentrated portfolio ofAustralian equities. It invests in shares generally from outside of the largest 20companies by market capitalisation that Antares identifies as having the potential

Investment strategy

to offer significant long term capital growth. Holdings of securities are notconstrained by index weightings or by individual security and sector limits.

Return of the S&P/ASX 200 Accumulation Index excluding stocks listed in theS&P/ASX 20 Accumulation Index.

Benchmark



NoAutomatic payment of investment income



Model Portfolios

Ausbil Australian Concentrated Equity Model Portfolio

Core/Growth

AusbilInvestment manager

To outperform the S&P/ASX 300 Accumulation Index over the medium to longterm (5 years plus) by investing in a portfolio of listed Australian securities.


Ausbil’s broad investment philosophy is that active management of its portfoliosfacilitates consistent and risk controlled outperformance. Rather than focusingjust on growth or value investing, Ausbil’s investment approach allows it to

Investment strategy

exploit the inefficiencies across the entire market, at all stages ofthe cycle and across all market conditions. Ausbil is a top down, bottom upinvestment manager.It believes that the Australian equity market is relatively efficient, but not perfect.The combination of top down macroeconomic research with in-depth bottomup stock analysis gives Ausbil better insights into the earnings profile of theuniverse of companies during the various stages of the economic/investmentcycle.The basic premise of Ausbil’s philosophy is that stock prices ultimately followearnings and earnings revisions. Ausbil believes that the market places excessiveemphasis on the current situation and does not sufficiently take into accountthe likelihood of future changes to the earnings profile of individual companiesand sectors.Ausbil’s process seeks to identify earnings and earnings revisions at an earlystage, and hence to anticipate stock price movements. Ausbil seek to position itsportfolios towards those sectors and stocks which it believes will experiencepositive earnings revisions and away from those it believes will suffer negativerevisions. At any time, the portfolio will be tilted toward stocks which afford themost compelling opportunities for appreciation over the coming twelve months.




NoAutomatic payment of investment income



Model Portfolios

Pendal Australian Share Model Portfolio

Core/Growth

Pendal Institutional LimitedInvestment manager

The objective of the Model Portfolio is to outperform the S&P/ASX 300 TotalReturn Index over a rolling 3 year period.


Pendal’s strategy employs a bottom up, fundamental approach to build adiversified portfolio of broad-cap Australian shares where the majority of activerisk and out-performance is driven by stock selection. Pendal’s core investment

Investment strategy

style is to select stocks based on its assessment of their long term worth andability to outperform the market, without being restricted by a growth or valuebias. Pendal’s fundamental company research focuses on valuation, franchise,management quality and risk factors (both financial and non-financial risk).

S&P/ASX 300 Total Return IndexBenchmark






Model Portfolios

Redpoint Industrials Model Portfolio

Core/Growth

RedpointInvestment manager

To provide a total return in line with the Benchmark after fees and costs, over arolling 5 year period.


Redpoint employs a disciplined approach which seeks to construct a ModelPortfolio of better quality companies with more sustainable business practicesthat provides a return broadly comparable to that of the Benchmark. The approach

Investment strategy

is designed to provide a Model Portfolio with low turnover, appropriate riskcontrols relative to the Benchmark and comparatively lower costs.Redpoint’s selection bias towards quality companies is expected to give theModel Portfolio a slight defensive tilt. This is expected to provide a modestoutperformance during periods of market stress but marginal underperformancewhen speculative stocks are in favour. Redpoint’s approach is aimed atde-selecting or, at least, underweighting poorer quality stocks. This approach isRedpoint’s preferred method for sensibly de-selecting stocks given the strategyis constrained to holding less than half the stocks in the Benchmark.

S&P/ASX 100 Industrials Accumulation IndexBenchmark





PIC Lifecycle Growth Moderate Model Portfolio

Growth

Lonsec Investment Solutions Pty LtdInvestment manager

Total return of CPI plus 3-4% pa (before fees and tax) over 5-7 years. Reviewedperiodically. Limit the expected incidence of negative annual returns in any 20year period to between 3 and 4 years.


We construct well diversified investment portfolios that are designed to achievethe investment objectives with minimum risk possible.

Investment strategy

8-18Indicative number of different investments

Asset class ranges 10% - 80%Shares & Property

0% - 30%Alternatives

20% - 88%Fixed income

2% - 90%Cash



0.676Estimated ICR fee (% pa) may include performancefees


Model Portfolios

PIC Lifecycle Growth Assertive Model Portfolio

Growth





Investment strategy





2% - 80%Cash




PIC Lifecycle Growth Aggressive Model Portfolio

Growth





Investment strategy





2% - 70%Cash





Model Portfolios

MLC Premium Moderate Model Portfolio

Growth

MLC Asset Management Investment manager

CPI +2% pa over 3 - 5 years after investment manager fees.Investment objective

MLC Asset Management experts invest the Portfolio in a combination of assetclasses including shares, fixed income, alternatives and cash that they believewill best achieve the investment objective for investors.

Investment strategy

The team carefully selects specialist investment managers to build investmentsin the asset classes. Investments will mainly be actively managed through acombination of direct shares in companies and managed funds. As investment markets are constantly evolving, the team actively adjusts thePortfolio to take advantage of opportunities and reduce the risks of investing. The Portfolio will have similar weightings to defensive and growth assets, andreturns will mainly be generated from growth in capital with some income.

30 - 40Indicative number of different investments




2% - 20%Cash

YesAutomatic payment of income



0.110Estimated ICR rebate (% pa)


Model Portfolios

MLC Premium Assertive Model Portfolio

Growth


CPI +3% pa over 5 - 7 years after investment manager fees.Investment objective


Investment strategy

The team carefully selects specialist investment managers to build investmentsin the asset classes. Investments will mainly be actively managed through acombination of direct shares in companies and managed funds. As investment markets are constantly evolving, the team actively adjusts thePortfolio to take advantage of opportunities and reduce the risks of investing. The Portfolio will be mainly invested in growth assets with some exposure todefensive assets, and returns will mainly be generated from growth in capitaland some income.





2% - 15%Cash






Model Portfolios

MLC Premium Aggressive Model Portfolio

Growth

MLC Asset ManagementInvestment manager

CPI +4% pa over 7 - 10 years net of fees.Investment objective


Investment strategy

The team carefully selects the specialist investment managers to buildinvestments in the asset classes. Investments will mainly be actively managedthrough a combination of direct shares in companies and managed funds.As investment markets are constantly evolving, the team actively adjusts thePortfolio to take advantage of opportunities and reduce the risks of investing. The Portfolio will be predominantly invested in growth assets with a smallexposure to defensive assets, and returns will mainly be generated from growthin capital with some income.





2% - 10%Cash






Model Portfolios

PIC Lifecycle Income Conservative Model Portfolio

Income





Investment strategy





2% - 100%Cash




PIC Lifecycle Income Moderate Model Portfolio

Income





Investment strategy





2% - 90%Cash





Model Portfolios

PIC Lifecycle Income Assertive Model Portfolio

Income





Investment strategy





2% - 80%Cash





Model Portfolios

MLC Value Moderate Model Portfolio

Index


CPI +1.75% pa over 3 - 5 years after investment manager fees.Investment objective


Investment strategy

The team carefully selects specialist index managers to build investments incertain asset classes, and selectively uses active managers where they believe itmakes the greatest difference to risks or returns. Investments will mainly bemanaged through a combination of direct shares in companies, ETFs and managedfunds. As investment markets are constantly evolving, the team actively adjusts thePortfolio to take advantage of opportunities and reduce the risks of investing. The Portfolio will have similar weightings to defensive and growth assets, andreturns will mainly be generated from growth in capital with some income.





2% - 20%Cash






Model Portfolios

MLC Value Assertive Model Portfolio

Enhanced Index


CPI +2.5% pa over 5 - 7 after investment manager fees.Investment objective


Investment strategy

The team carefully selects specialist index managers to build investments incertain asset classes, and selectively uses active managers where they believe itmakes the greatest difference to risks or returns. Investments will mainly bemanaged through a combination of direct shares in companies, ETFs and managedfunds. As investment markets are constantly evolving, the team actively adjusts thePortfolio to take advantage of opportunities and reduce the risks of investing. The Portfolio will be mainly invested in growth assets with some exposure todefensive assets, and returns will mainly be generated from growth in capitaland some income.





2% - 15%Cash






Model Portfolios

MLC Value Aggressive Model Portfolio

Enhanced Index


CPI +3.5% pa over 7 - 10 years after investment manager fees.Investment objective


Investment strategy

The team carefully selects specialist index managers to build investments incertain asset classes, and selectively uses active managers where they believe itmakes the greatest difference to risks or returns. Investments will mainly bemanaged through a combination of direct shares in companies, ETFs and managedfunds. As investment markets are constantly evolving, the team actively adjusts thePortfolio to take advantage of opportunities and reduce the risks of investing. The Portfolio will be predominantly invested in growth assets with a smallexposure to defensive assets, and returns will mainly be generated from growthin capital with some income.





2% - 10%Cash






Model Portfolios

This will give you an understanding of the fees and costs you may pay.

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 to20% over a 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 servicesjustify higher fees and costs.

You may be able to negotiate to pay lower contribution fees and management costs where applicable. Ask the Service or yourfinancial adviser.

TO FIND OUT MOREIf you'd 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.

This document shows fees and other costs that you may be charged. These fees and costs may be deducted from your money, from thereturns on your investment or from the assets of the managed investment scheme as a whole. Taxes are set out in another part of thisdocument.

You should read all the information about fees and costs because it is important to understand their impact on your investment. Feesand costs for particular model portfolios are set out on pages 11 to 28.

Fees and other costs

Separately Managed Account

How and when paidAmountType of fee or cost

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

There is no establishment fee.NilEstablishment feeThe fee to open your investment

There is no contribution fee.NilContribution feeThe fee on each amount contributed to yourinvestment

There is no withdrawal fee.NilWithdrawal feeThe fee on each amount you take out of yourinvestment

There is no exit fee.NilExit feeThe fee to close your investment



https://www.moneysmart.gov.au

Management costs

Management Costs:Management costs are calculated on your average balanceand deducted from the cash component of your ModelPortfolio each month.Indirect Costs:The indirect costs, including any performance-related feesare not charged directly by us. These indirect costs are paidfrom the assets of the underlying investments, and will

0.21% to1.23% pa

The fees and costs for managing your investmentThe amount you pay for specific Model Portfolios isshown on pages 11 to 28.

generally be reflected in the unit prices of thoseinvestments.

Service fees1

There is no switching fee.NilSwitching feeThe fee for changing model portfolios

1 Other service fees may apply. See the Additional explanation of fees and costs section on the following page.

Additional explanation of feesand costs

You should refer to your platform offerdocuments for further informationregarding fees and costs.

Negotiated fees

Investment in the SMA is only availablevia platforms, and the platform operators(or their appointed custodians) willtherefore be the members of the scheme.

We may negotiate fee arrangements onan individual basis with those platformoperators or custodians, such that the feesthat may be charged, rebated or waivedby us in relation to those wholesale clientsdiffers from the fee arrangementsapplying to other members.

Transaction costs

Transaction costs are an additional costto you.

Buy-sell Spreads

Buy-sell spreads are charged by theunderlying fund manager and are not paidto us or any investment managers.

Transaction costs for listedsecurities

When shares within model portfolios arepurchased and sold, brokerage andsettlement costs will be incurred. The

brokerage rates that apply will usually belower than the brokerage rates describedfor listed securities.

Transaction costs may also be incurredwhen the market process for purchasingor selling assets causes the transactedprice to be different to the value of theassets immediately before or after thetransaction, for example where bid/askspreads are incurred.

To minimise brokerage costs, trades areconsolidated and netted off across allaccounts invested in a particular ModelPortfolio. The total brokerage amount isthen pro-rated across all investors. Insome cases, we may not need to processa transaction as it may be possible to neta particular transaction againsttransactions for other investors in thesame Model Portfolio. In these cases, nobrokerage will be charged. The brokeragecurrently charged by the preferred brokeris 0.21% of the total trade amount subjectto a minimum of $5.13. This is deductedfrom your cash holdings in the ModelPortfolio at the time of transaction.

The preferred broker is WealthHubSecurities Limited.

Transaction costs for managedinvestment schemes

When assets in a managed investmentproduct are bought or sold, costs such asbrokerage, stamp duty and settlementcosts are incurred. Costs may also be

incurred when the market process forpurchasing assets causes the price paidto be higher than the value of the assetsimmediately after the purchasetransaction, for example where bid/ askspreads are incurred. Some or all of thesecosts may be met by a buy-sell spreadwhich is an additional cost to you whenyou add to or withdraw from theinvestment option or if you switchinvestment options. The remaining costsare met from assets of the investmentoption and reduce the return of theinvestment.

Performance fees

A performance fee may be paid wheninvestment returns exceed a specifiedlevel which will increase the managementcosts payable by you. Where any of theinvestment managers of a managedinvestment scheme in the multi-assetModel Portfolios charge a performancefee, a fee which is proportional to theassets held with that investment managerwill be charged. These proportional feesare added together to give oneperformance fee for the multi managerportfolio.

Where applicable, an estimate of this feeis included in the model management feesshown in the Summary of the ModelPortfolios section on page 11 to 28 of thisPDS. The actual performance fee chargedin future periods may differ from theestimated fee.



Bank fees

Any bank fees associated with operatingthe cash component of a Model Portfolio,including an overdraft facility, will beoffset against any positive interest earnedon the cash balance during the samemonth.

Negative cash component fee

Generally the cash component in anyModel Portfolio will have a positivebalance. However a cash component canhave a negative balance if there areinsufficient funds to settle a trade. Thismay happen when we rebalance a ModelPortfolio. If this occurs a fee may becharged for the period the cashcomponent has a negative balance.

An overdraft facility is available if thebalance becomes negative. If this occursinvestors in the Model Portfolio will becharged any interest expense associatedwith their proportion of the overdraftfacility.

Tax

For information about tax and the SMA,see Part 1 of the PDS.

Varying fees

Unless otherwise stated, we’ll give you noless than 30 days notice prior toincreasing or implementing a new fee orother charge.

No notice will be given in respect ofchanges to transaction costs.

Maximum fees and costs

The Constitution allows for additionalcharges to be imposed for each of theModel Portfolios. We have no presentintention to impose these charges.

If we subsequently decide to impose newcharges or increase in existing fees youwill be given 30 days prior written notice.The charges are a contribution fee(maximum of 5%), a transaction fee(maximum of 2% of the value of thetransactions executed), a withdrawal fee(maximum of 5%), a fee for transferringsecurities (maximum of $75 per holding)and a performance fee (maximum of 50%of out-performance of a Benchmark).

In addition, if you transfer securities inand out of the SMA, the Constitutionprovides that we can require you to payany stamp duty or other costs associatedwith the transfer.

Other fees we may charge

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

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

Adviser remuneration

Currently your financial adviser does notreceive payments (remuneration) from usin respect of any investments in the SMA.

Subject to law, we may also provide yourfinancial adviser and/or AFSL holder withnon-monetary benefits (such asconferences and technical support etc),known as alternative forms ofremuneration.

Other adviser remuneration

Your financial adviser is not paidcommissions for this product. They mayreceive alternative forms of paymentssuch as conference and professionaldevelopment seminars for trainingpurposes. These are paid by us and are atno additional cost to you.



Example of annual fees and costs for a balanced model portfolio or other model portfolio

This table gives an example of how the fees and costs in the Antares Dividend Builder Portfolio for this managed investment productcan affect your investment over a 1 year period. You should use this table to compare this product with other managed investmentproducts.

Balance of $50,000 with a contribution of $5,000 during year 1Example: Antares Dividend Builder Portfolio

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

And, for every $50,000 you have in the Antares Dividend Builder Portfolioyou will be charged $230 each year.

0.46%Plus Management Costs

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

Equals Cost of Antares DividendBuilder Portfolio

$230*What it costs you will depend on the model portfolio you choose and thefees you negotiate.

* Additional fees may apply.1 This example assumes the $5,000 is contributed at the end of the year.



ConsentsEach investment manager has given itswritten consent to being named andquoted in this PDS, and to the inclusionof statements made by it or said to bebased on statements made by it. As at thedate of this PDS these consents have notbeen withdrawn.

Authorised investmentsThe investment managers employed inthe management of each model portfoliomay invest in the assets in line withstated investment objectives and strategyand the mandate for the portfolio.

Related party transactions andconflicts of interestThe SMA may pay and use the services ofIOOF Group related companies where itmakes good business sense to do so andwill benefit our customers.

Amounts paid for these services arenegotiated on an arm’s-length basis andare included in all the fees detailed in thisdocument.

Appointments of these companies aremade in accordance with therequirements of the relevant policies formanagement of conflicts of interest.

MLC Asset Management Pty Ltd is amember of the IOOF Group and licensesPrivate Investment Consulting (PIC) toprovide specialist asset consultingservices to Lonsec Investment SolutionsPty Ltd. A representative of MLC AssetManagement Pty Ltd is a member of theLonsec/PIC investment committeeresponsible for the PIC Lifecycleportfolios.

Antares Capital Partners Ltd and MLCAsset Management Services Limitedprovide investment management servicesdirectly to NAL.

SMA CustodianClearstream Australia Limited is thecustodian for managed fund assets heldon your behalf. NAL is the custodian forthe remainder of the assets.

SMA Preferred BrokerWealthHub Securities Limited providestrading services to NAL.


Other important information

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

Postal addressGPO Box 2567Melbourne VIC 3001

Registered officeGround Floor, MLC Building105–153 Miller StreetNorth Sydney NSW 2060

mlc.com.au

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JA12

7253

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

separately managed account - mlc

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