Benefits of investing in the BlackRock Multi Opportunity Absolute Return Fund

The benefits of investing in the Fund include:

• Capturing new opportunities: the Fund draws upon BlackRock's extensive global investment teams, which look to continuously develop new and innovative insights with the aim of delivering performance in evolving markets.

• Enhanced portfolio diversification: the Fund seeks to have a low correlation to equity returns, interest rate moves and other market return sources, making it a complementary addition to a diversified portfolio of market exposures and other return sources.

• Transparency, risk & liquidity: unlike other multi-strategy products, the Strategy Funds have all appointed a member of the BlackRock Group as their manager/investment manager, leading to superior transparency and a greater understanding of investment risk. The Fund also offers investors monthly liquidity terms and no early termination fees that other funds of this nature may impose.

Investor suitability

The Fund should be considered by investors who

• Seek a fund that uses total-return strategies across major asset classes and world markets with the objective of enhancing portfolio returns while diversifying risk.
• Seek a fund that has a low correlation to equity returns, interest rate moves and other active return sources.
• Have a long term investment horizon.

About the Fund

The Fund accesses its investment strategy through an investment in the BlackRock Multi Opportunity Fund (Wholesale Fund), which provides exposure to a diversified range of absolute return investment strategies through investments (both direct and indirect) in a number of pooled investment vehicles (Strategy Funds).

Investment Objective

The Fund aims to achieve a return of 8% p.a. before fees, above the Reserve Bank of Australia's Cash Rate Target over rolling three-year periods. The Fund will aim to achieve its investment objective by targeting a total expected risk of between 4%-6% p.a. over the same rolling three-year period.

The Fund aims to outperform the Benchmark by providing investors with a source of risk controlled absolute returns that are, over time, expected to have low correlations with the returns of major asset classes.

How we invest your money

The Fund accesses its investment strategy through an investment in the BlackRock Multi Opportunity Fund (Wholesale Fund) which provides exposure to a diversified range of absolute return investment strategies through investments (both direct and indirect) in a number of pooled investment vehicles (Strategy Funds). The range of strategies may include, but are not limited to:

• Equity Market Absolute Return strategies seek to exploit inefficiencies in individual stock prices by gaining exposure to long and short positions in local and global equity markets.

• Event Driven strategies seeks to capture the structural and persistent risk premia in merger arbitrage through a robust and repeatable investment process focused on companies that are involved in publicly announced definitive mergers, takeovers, tender offers, leveraged buyouts, and other corporate combinations.

• Fixed Income Absolute Return strategies seek to exploit opportunities across global fixed income markets by taking long and short positions in a broad range of fixed income securities including, but not limited to: sovereign bonds; corporate credit; mortgages; and other securities.

• Global Macro/Managed Futures strategies seek to exploit inefficiencies across global markets by gaining exposure to long and short positions across a broad array of global assets including, but not limited to: equities; bonds; currencies; commodities; and other assets. These strategies may utilise both fundamental and/or trend following insights to construct portfolios.

• Market Neutral Style Premia strategies seek to capture positive returns from a range of style factor strategies across global asset classes while maintaining low correlation to broad market factors.

We aim to continuously explore the addition of new investment strategies where they are in keeping with the Fund's investment strategy.

In contrast to many single strategy funds, the Fund aims to deliver a successful investment outcome by gaining exposure to a diversified range of investment strategies. The Strategy Funds are chosen for their use of unique investment insights, which aim to exploit security/market-pricing inefficiencies that are identified by research. They seek to consistently add value above their respective cash benchmarks and are expected to be lowly correlated with each other.

Our investment strategy is implemented in three stages:

1. strategy due diligence & selection;
2. capital allocation; and
3. core security/market selection.

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

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.