The Fund seeks to achieve its investment objective by investing in both equity and debt securities, including money market securities and other short-term securities or instruments, of issuers located around the world.

The Fund aims to provide high total investment returns through a fully managed investment policy utilising international equity securities, debt and money market securities, the combination of which will be varied from time to time both with respect to types of securities and markets in response to changing market and economic trends.

Benefits of investing in the BlackRock Tactical Growth Fund

The benefits of investing in the Fund include:

• Active security selection and asset allocation: Fund returns are driven by a combination of active security selection within asset classes as well as asset allocation.

• Diversification: the high degree of diversification in the Fund in terms of both asset classes and investment approaches offers the potential for an attractive risk/return profile.

• Broad investment universe: the Fund has a very broad investment universe, which allows it to take targeted positions in markets - matching views precisely with the investment positions.

• Disciplined but flexible risk management: the disciplined risk management framework aims to efficiently allocate risk in the Fund. The flexibility within the framework allows the Fund to cherry pick the best investment ideas when market conditions are best matched with investment views.

• Access to the expertise of the BlackRock Group's global investment resources: the Fund draws upon the expertise of the BlackRock Group's asset allocation and investment teams globally. The BlackRock Group is a large, well- resourced and multi-disciplined asset manager with access to outstanding and comprehensive expertise in almost all asset classes and in asset allocation.

Investor suitability

Should be considered by investors who ...

• Seek a fund which aims to provide a combination of capital growth and income.
• Seek a fund that is actively managed within a risk controlled framework to provide diversified exposure to multiple asset classes with a single layer of fees.
• Seek a fund that evolves to incorporate Best of BlackRock' investment insights.

About the Fund

Investment objective

The Fund aims to outperform peer performance consistent with a "growth orientated investment strategy encompassing:

• a broadly diversified exposure to Australian and international assets;

• active asset allocation, security selection and risk management; and

• flexibility to deviate meaningfully from the strategic asset allocation to help manage total portfolio risk.

The Fund aims to outperform its benchmark indices over a 5-year rolling period, before fees.

Investment strategy

The investment strategy of the Fund is to provide investors with a diversified exposure to the best investment teams and strategies that the BlackRock Group has globally within the context of an Australian based "growth investment portfolio.

The Fund's strategy is built around two steps:

1. establishing the most appropriate strategic benchmark subject to the growth/income splits and market risk exposures of the Fund; and
2. enhancing the returns of the Fund relative to the benchmark indices to the maximum extent possible by utilising investment teams, strategies and techniques from the BlackRock Group's resources around the globe, subject to a risk budgeting framework.

Benchmark

As the Fund is a diversified fund, there is no one relevant index to provide a benchmark, so the benchmark consists of a weighted average of the returns provided by market indices for relevant asset classes. The benchmark for the Fund provides a performance target against which Fund performance is measured over a set period of time. The strategic benchmark is reviewed periodically. Specific allocations may vary through time in line with our objective to manage total portfolio risk, however the Fund will generally retain its split between growth and defensive assets over the medium to long term.

How we invest your money

Active asset allocation

Asset allocation strategies are employed with the aim of capitalising on perceived mispricing in and between asset markets in Australia and internationally. This process may result in the Fund's exposure to the asset class being above, below or in-line with the strategic benchmark exposure. The strategies employed focus on a broad array of factors aimed at identifying potential market inefficiencies including assessments of fundamental valuation, economic environment, investor sentiment and other factors, including the management of total portfolio risk. BlackRock draws on its research capabilities and the fund management expertise of the BlackRock Group in developing and exploiting these strategies within a risk controlled framework.

The Fund's strategic benchmark has exposure to a mix of growth assets such as Australian shares, international shares, listed property and listed infrastructure and more defensive (income) asset classes such as Australian and international fixed income and cash. The allocation of growth assets compared with defensive assets and the associated asset class benchmark index is shown in the table below.

Strategic benchmark

(Asset sector: % / Benchmark index)

• Australian equities: 30% / S&P/ASX 300 Total Return Index

• International equities (unhedged): 21% / MSCI World ex-Australia Net TR Index (Unhedged in AUD)

• International equities (hedged): 6% / MSCI World ex-Australia Net TR Index (Hedged in AUD)

• Emerging market equities (unhedged): 5% / MSCI Emerging Markets IMI ex Tobacco ex Controversial ex Nuclear Weapons Net TR Index (Unhedged in AUD)

• Global listed infrastructure (unhedged): 5% / FTSE Developed Core Infrastructure 50/50 Net TR Index (Unhedged in AUD)

• International listed property (unhedged): 5% / FTSE EPRA/NAREIT Developed Dividend+ Net Index (Unhedged in AUD)

TOTAL GROWTH ASSETS: 72%

• Australian fixed income: 14% / Bloomberg AusBond Composite 0+ Yr Index

• International fixed income (hedged): 3% / Bloomberg Barclays Global Aggregate Index (Hedged in AUD)

• Emerging markets USD Bonds (hedged): 3% / J.P. Morgan EMBI Global Core Index (Hedged in AUD)

• International credit (hedged): 3% / Bloomberg Barclays Global Aggregate Corporate Index (Hedged in AUD)

• Cash: 5% / Bloomberg AusBond Bank Bill Index

TOTAL GROWTH ASSETS: 28%