Benefits of investing in the BlackRock Wholesale Australian Share Fund

The benefits of investing in the Fund include:

• Potential for superior returns: By obtaining exposure to a long/short investment strategy, the Fund aims to achieve superior returns to the Benchmark over rolling 5-year periods.

• Professional investment expertise: The BlackRock Group pioneered the implementation of structured and disciplined approaches to investing. Owing to our reputation, the Blackrock Group's scientific research team attracts leading academics as well as seasoned investment practitioners. The combination prompts a steady stream of improvements to our investment process.

Investor suitability

Should be considered by investors who: seek to gain competitive returns; require a Fund that applies rigor in its underlying investment philosophy and style; prefer a Fund with a proven track record in long-short investing; and have a long term investment horizon.

About the Fund

Our investment style is based on our belief that people, leveraged by technology, are central to the consistent achievement of our clients' investment goals.

A single, global investment philosophy unites all BlackRock scientific (quantitative) investment strategies. Knowledgeable investment people leveraging their skills through the extensive use of technology is a hallmark of our scientific investment approach.

We believe that a focus on total performance management is the best way to achieve superior investment results. Through total performance management, we aim to understand; measure; forecast; and manage the three dimensions of investment performance — return, risk and cost.

Investment Objective

The Fund has two aims: to achieve capital growth over the long-term through investment in Australian shares and other securities and to provide investors with some tax-effective income through the distribution of franking credits. Overall, the Fund aims to achieve this goal by outperforming the S&P/ASX 300 Accumulation Index over rolling five year periods.

How we invest your money

The Fund aims to outperform the Benchmark by gaining exposure to long and short positions across the Australian equity market. The Fund gains exposure to a long/short investment strategy through an investment in the BlackRock Equitised Long Short Fund (Equitised Fund), which in turn invests in the BlackRock Australian Equity Market Neutral Fund (Long/Short Fund).

The Fund also gains exposure to a full replication Australian equity index strategy through an investment in the BlackRock Wholesale Indexed Australian Equity Fund (Index Fund).

The Fund invests all of its assets in units of the:

1. Equitised Fund, which provides access to a long/short investment strategy through an investment in the Long/Short Fund; and
2. Index Fund, which provides access to a full replication Australian equity index strategy. Assets of the Fund are managed closely around a strategic asset allocation. The Equitised Fund, Long/Short Fund and Index Fund may also invest in direct assets.

Asset allocation

• BlackRock Equitised Long Short Fund: 45%

• iShares Wholesale Australian Equity Index Fund: 55%