Benefits of investing in the Principal Global Credit Opportunities Fund

The key features and benefits of investing in the Fund include:

• Investing overseas enhances the investment universe and opportunity set,

• The Fund is managed by a fixed income team with significant experience in evaluating global corporate debt securities and in managing traditional, opportunistic and alternative fixed income investments,

• The investment team uses an investment process which combines active asset allocation with flexible investment guidelines. The team uses in-depth proprietary research designed to facilitate best-ideas security selection and actively manages volatility to mitigate downside risk and enhance returns, and

• The Fund is actively managed, providing an opportunity for returns to achieve those of the Fund's Investment Return Objective over the medium term, and actively manages volatility to seek to mitigate downside risk.

Risk level

Medium to High

Investor suitability

The Fund is designed for Australian investors seeking access to a diversified, multi-sector fixed income portfolio with the potential to achieve a relatively high total return and to provide regular income.

About the Fund

The Fund provides investors exposure to a diversified, multi-sector income portfolio with the potential for a relatively high total return, as well as regular income.

The Fund aims to achieve a total return above the benchmark over rolling three year periods.

Why invest?

• Dedicated team with over 20 years of collective experience

• Opportunistic Asset Allocation - ability to reposition the portfolio quickly

• High Conviction portfolio - driven by total return opportunities

• Multiple lines of risk defense

Principal Global Investors (Australia) Limited and Principal Global Investors LLC

Principal Global Investors (Australia) Limited (PGI Australia' or Investment Manager') has been appointed by Ironbark as the investment manager of the Fund. PGI Australia has delegated the investment management of the Fund to Principal Global Investors LLC.

PGI Australia and Principal Global Investors LLC are part of Principal Global Investors, the global investment management business of the Principal Financial Group. With operations in the United States, Europe, Asia and Australia, Principal Global Investors draws on the expertise of investment professionals around the world.

The Fund's investments are selected and managed by Principal Global Investors' specialist fixed income team - Principal Global Fixed Income. The team has expertise in the integrated management of traditional and alternative fixed income sectors worldwide.

Principal Global Investors' investment capabilities are extensive, encompassing real estate, fixed income and equity investments, as well as specialised overlay and advisory services.

As at 30 September 2018 Principal Global Investors managed US$447.7 billion in assets globally, primarily for retirement plans and other institutional clients.

How we invest your money

The Fund employs a global multi-credit fixed-income strategy that invests predominantly in a wide range of global credit securities and investments across a number of sectors, and actively manages volatility to seek to mitigate downside risk and enhance returns. The Fund is actively managed by a specialist fixed income investment team with a focus on identifying the best sectors for investment opportunities and then within the sectors to the most attractive securities to generate the potential for both income and capital appreciation. Active hedging is utilised to manage risks. Investments denominated in foreign currencies are hedged into Australian dollars.

Asset allocation

• Global Investment Credit: 0%-100%

• Global High Yield: 0%-50%

• Emerging Market Debt: 0%-50%

• Securitised Assets: 0%-25%

• Government Debt: 0%-100%

• Cash: 0%-25%

Derivatives may be used for hedging and for the efficient management of the Fund's portfolio, however are not intended to be used to gear (leverage) the Fund. Derivatives used include, however are not limited to, interest rate swaps, credit default swaps, futures, options, and total return swaps on fixed income, volatility and equity indices.