Benefits of Investing in the Mercer Cash Fund - Term Deposit Units

Our multi-manager approach involves selecting optimal combinations of investment managers to achieve exposure to a range of investment management styles. We aim to maximise the 'value add' potential of the Fund to produce consistent performance throughout market cycles. See Investment objectives and strategy in the Booklet for further details.

The Fund brings together Mercer's investment beliefs, best ideas and research to provide investors with access to:

• Diversification - The Fund invests in Australian dollar denominated term deposits issued by Australian banks. The Fund can be combined with other Mercer Multi­ Manager Funds, or other investments, to create a portfolio that is diversified across different asset classes. Diversification can smooth out market volatility and may help protect investments from loss.

• Liquidity - The Fund invests in a range of term deposits, with a maximum duration of 12 months per deposit and an expected portfolio average duration of three to six months. The diversity of the Fund's underlying investments means that term deposits are maturing at regular intervals, which generally helps provide better liquidity than a single term deposit investment.
• Operational efficiency- We aim to ensure you get the most value out of your investment by minimising unnecessary costs and avoiding unrewarded risks. The Fund provides an automatic and continuous reinvestment process and daily unit pricing reflecting accrued interest.

Investor Suitability

This Fund may be suitable for you if you:

• Want to invest in Australian bank term deposits;

• Plan to invest for one year or less;

• Are comfortable with the risks described in Section 4 of the PDS.

About Mercer

Mercer is a global consulting leader in talent, health, retirement and investments. Mercer's Investments business has been providing professional investment services to local clients for more than 40 years. Mercer partners with clients across all aspects of investing and our scale allows us to offer a comprehensive suite of investment tools, advice and solutions to meet client's specific needs and objectives. Mercer's portfolio management teams manage approximately US$157 billion worldwide (as at Jan 2017), with approximately A$34 billion invested on behalf of clients in Australia and New Zealand (as at Sept 2017).

In designing and managing the Mercer Multi- Manager Funds, the Responsible Entity draws on Mercer's global network of 1,200 consulting specialists and its in-house teams of research professionals who cover investment managers, capital markets and strategic opportunities.

Mercer's investment beliefs

Mercer's globally consistent investment beliefs guide its investment process, but may vary in their applicability to its funds and advice to clients based on clients' individual needs and objectives:

• Risk management - We believe in the merits of genuine diversification and that asset allocation is the most important decision an investor can make.

• Active management - Active management is a skill and our manager research process can improve the likelihood of identifying skillful managers. We also offer a number of passively managed funds.

• Dynamic asset allocation - Implementing medium-term asset allocation changes in response to changing market conditions can add value and/or mitigate risk in a portfolio.

• Operational efficiency - Investment returns can be enhanced by having a monitoring and governance framework that focuses on evaluating and quantifying investment efficiency.

• Sustainability - Taking a sustainable investment view is more likely to create and preserve longterm investment capital.

How the Fund's assets are invested

The assets of the Fund are invested in a range of trusts and other investment vehicles, including:

• Other investment vehicles managed by professional investment managers;

• Other funds managed by the Responsible Entity or related entities; and/or

• Directly in a range of investments such as securities, derivatives and cash managed via mandates with professional investment managers.

Depending on the nature of the assets they are held either by the Fund's custodian or directly by the Responsible Entity.

Manager research and selection

Mercer's significant scale in researching investment managers globally provides us with access to the best ideas from more than 6,300 investment managers around the world (as at July 2017).

Mercer's Australian-based multi-manager team leverages the global Mercer research network to establish optimal combinations of specialist managers for each Fund. Mercer's investment manager research focuses on each manager's strength in idea generation, portfolio construction, implementation and business management.

Prior to the appointment of an investment manager a detailed Operational Risk Assessment Report is prepared, which considers the risks associated with the investment mandate type, firm size, and significant third party or outsourced relationships, along with the mitigating or compensating controls that a firm may have to manage potential issues.

We may remove, replace, or appoint additional investment managers for the Funds at our discretion at any time.    

Asset Allocation

(Asset - Neutral / Minimum / Maximum)

Cash 100% / 0% / 0%