Benefits of investing in the Smarter Money Fund - Assisted Investor

• The investment manager actively selects high quality cash and floating-rate assets with the goal of maximising investors' risk-adjusted returns.

• Targets returns above the average returns of traditional cash products, after management costs - see the Fees and costs section of the PDS for details.

• No capped or fixed return, such as would be the case with a fixed term deposit.

• No fixed term, such as would be the case with a fixed term deposit.

• Aims to reliably distribute quarterly income.

• You can access your investment anytime without penalties or break costs subject to normal liquidity and spreads.

• Withdrawals generally available in your bank account after 3 Business Days.

Risk level

Very low (SRM 1)

Investor suitability

Those seeking returns above the average of traditional cash products.

About the Fund

The Fund is actively managed by the Investment Manager and aims to take advantage of investment opportunities within the Australian cash and fixed-income markets.

Investment in the Fund is not the same as putting your money into a bank account. The Fund invests in cash instruments and investment grade debt securities, including at-call deposits, term deposits, bank bills, money market securities and investment-grade bonds issued by governments, government-owned enterprises, banks and companies. The Fund may also invest in units in an ASX-listed fund or trust that solely invests in Australian-dollar denominated deposits, issued by Authorised Deposit-taking Institutions (ADIs) which are regulated by the Australian Prudential Regulation Authority (APRA). It is also possible that from time to time derivatives may be used to manage the Fund's risks when considered appropriate.

How we invest your money

Although the Fund is not the same as a bank account, the Fund does have a conservative investment approach:

• all the Fund's debt securities are of an investment grade' quality when bought, ('investment grade' normally equates to a Standard & Poor's rating of between BBB- and AAA, or equivalent rating).

• the Fund targets a dollar-weighted average Standard & Poor's A' credit rating across its bonds and deposits (or equivalent rating as determined by rating agencies),

• all the Fund's investments are Australian dollar-denominated or fully hedged into Australian dollars (so the Fund has no direct exposure to foreign exchange risk),

• the Fund targets holding all of its money in a range of bank deposits, money market securities and investment-grade floating-rate debt securities. The Fund may also invest in units in an ASX-listed fund or trust that solely invests in Australian-dollar denominated deposits, issued by APRA-regulated, Authorised Deposit-taking Institutions,

• the Fund can invest in bonds issued by Australian incorporated companies (or their wholly-owned subsidiaries) in foreign currencies, subject to hedging the exchange rate risk associated with these bonds back into Australian dollars.

• the Fund does not invest directly in listed or unlisted shares (so the Fund has no direct exposure to the volatility or risks of those markets),

• the Fund does not invest in fixed-rate debt securities with maturities greater than 12 months unless it hedges out the fixed interest rate component (so the Fund does not carry the significant interest rate (or duration) risk associated with these assets) and targets holding interest rate duration risk of less than 3 months,

• the Fund places a maximum limit on its exposure to asset-backed securities and requires these to have a minimum A-' credit rating,

• the Investment Manager seeks to limit the Fund's interest rate risk, as defined by changes in capital values resulting from interest rate movements, by investing in short-term deposits and floating-rate debt securities that ensure the Fund's underlying income moves when the RBA's cash rate moves,

• the Fund is not permitted to use leverage or gearing to enhance its returns, and

• the Fund has a very low risk rating under the standard risk measure' (see the Risks section of the PDS for details).

The Fund also has access to liquidity facilities that allow assets that are classified as "eligible securities for repurchase by the RBA to be swapped with major Australian and international trading banks in exchange for cash, subject to these banks accepting these assets as part of their own repurchase operations. The Fund targets having at least 30% of its investments in cash and investment-grade assets that are classified as such repurchase eligible securities.