Benefits of investing in the State Street Australian Equity Fund

Benefits of Investing in the Fund include:

Diversified Investment

The Fund provides investors with a cost efficient way of gaining diversified exposure to listed equity securities on the Australian stock market.

Anticipated Outperformance

The Fund is actively managed with the aim of outperforming the S&P/ASX 300 Index, before management costs, over rolling 5 year periods but with a lower level of variability.

Distributions

The Fund accrues dividends and distributions from the underlying securities in the portfolio. The accrued dividends and distributions are distributed net of expenses to unitholders semi-annually. In addition, any tax credits the Fund receives are also distributed to unitholders.

Periodic Investor Communications

Up to date information about your investment will be sent to you and information about the Fund is available at ssga.com.

Experience and Commitment

Having your money managed by the experience and dedicated teams of one of Australia's largest investment managers.

On-line access

Secure on-line access allows you to view your holdings and transactions and to download or print these details.

Risk level

Very High

Investor suitability

The Fund is intended to be suited to investors who seek long term capital growth and are prepared to accept some volatility in investment returns.

About the Fund

The Fund invests in listed Australian securities from the S&P/ASX 300 Index. It uses a long-only strategy which aims for a fully-invested exposure to equities, with no short selling and no leverage.

State Street Global Advisors (SSGA) has designed an active Australian equity solution that aims to put investors' primary objectives at the centre of portfolio construction. Rather than building portfolios around the stock weights represented in the benchmark index, this approach explores the market's full opportunity set, constructing a portfolio based on the stocks' total return and total risk characteristics. This means instead of constructing a portfolio relative to the benchmark, the Fund focuses on maximizing return and minimising total portfolio risk.

Investment Philosophy

• Markets are not efficient due to behavioural biases and limits to arbitrage—leading to opportunities for excess return

• A strong emphasis on economic rationale, vetted by rigorous research is critical to ensure successful outcomes

• Our insights must be drawn from a wide investment universe with a robust and systematic investment process.

How we invest your money

The Fund invests in listed Australian securities selected from the S&P/ASX 300 Index. SSGA creates a portfolio which aims to deliver strong total returns with lower total variability of returns than the market index.

The strategy looks for high quality companies that are reasonably valued and have an improving growth outlook and positive investor sentiment. Via security selection and portfolio construction, the implemented portfolio is expected to have a lower level of absolute risk (as defined by standard deviation of returns) than the market index, and the potential to provide total returns above the market index over the long term.

The Fund may have exposure to options, futures and other derivatives to reduce risk or gain exposure to physical assets where necessary. Derivatives are not used speculatively, and are never used to gear the Fund.

Asset allocation ranges

• Australian equities: 95%-100%

• Cash: 0%-5%