Benefits of investing in the Pendal Pure Alpha Fixed Income Fund

Investing in the Fund offers investors a range of potential benefits:

• Absolute returns: The Fund aims to provide positive investment returns across a range of market conditions both in Australia and globally;

• Diversified returns: Returns that have a low correlation to equity and bond markets;

• Risk management: Strong focus and emphasis on measuring, monitoring and managing investment risk;

• Broad exposure: The Fund has a broad investment universe and may invest in more than 30 different countries providing an ability to take advantage of investment opportunities globally;

• Pendal expertise: access to Pendal's investment expertise and processes;

• Regular reporting: monthly Fund fact sheets, regular investment statements and an annual tax statement to keep you up-to-date on your investment; and

• Access to our secure client website: ability to keep track of your investments in the secure client area by visiting the login section at www.pendalgroup.com.

Investor suitability

The Fund may be suitable for investors who want the potential for positive returns across a range of market conditions, with a low correlation to equity and bond markets.

About the Fund

The Pendal Pure Alpha Fixed Income Fund (Fund) aims to generate positive returns across a range of market conditions, with a low correlation to equity and bond markets by investing in fixed interest, credit and foreign exchange markets.

Pendal's investment philosophy for the Fund aims to identify and exploit inefficiencies through an active investment approach. The Fund takes advantage of investment opportunities based on our assessment of major economic themes and/or financial markets which we consider to be mispriced.

Investment Return Objective

The Fund aims to provide a total return (after fees, costs and taxes applicable to the Fund) that exceeds the Bloomberg AusBond Bank Bill Index by 2 - 4% per annum, over the medium term. The suggested investment period is 3 years or more.

How we invest your money

The Fund currently gains its investment exposure by investing into the Pendal Pure Alpha Fixed Income Trust (Trust). Investing into the Trust gives the Fund the opportunity to obtain efficiency and scale benefits.

The Fund aims to invest primarily in Australia and New Zealand but may also invest in other countries and currencies. The Fund predominantly uses derivatives including swaps, options, futures and forwards.

Asset types by Asset Class

• Cash: 0%-100% (Bank deposits; Short term money market securities (including bank bills, negotiable certificates of deposit, promissory notes and asset back commercial paper)

• Fixed interest:0%-100% (Australian government bonds/semi-government bonds; International government bonds; Government guaranteed corporate bonds; Government issued indexed-linked securities; Credit securities denominated in Australian dollars)

• Currency: 0%-100% (Spot foreign exchange)

Investment limits

The Fund has three investment limits aimed at minimising risk in the portfolio:

1. Country limit. Investment exposure is limited to countries within the Bloomberg Barclays Global Aggregate Bond Index plus Brazil, India, Indonesia, Philippines and China;
2. Foreign exchange limit. Total net foreign exchange exposure to the Australian dollar is limited to a maximum of 20% of the value of the Fund; Investments in non-member OECD countries per currency are limited to a maximum of 10% of the Fund's value with a total exposure limit of 20% of the value of the Fund;
3. Credit exposure limit. Investment exposure to credit securities denominated in Australian dollars and credit default swap indices is limited to a maximum of one fifth of the total allowable risk of the Fund as measured by the value at risk' model.