Benefits of investing in the SPDR S&P Fixed Income ETFs

Diversified Investment

Each Fund provides investors with a cost efficient way of gaining exposure to a sample of bonds reflecting the characteristics of the relevant Index.

Relatively Low Cost

Each Fund is designed to be cost efficient. Index- tracking, passively managed funds are generally less expensive to operate than actively managed funds, and therefore usually have lower management costs. For further information on fees, see section 6 of the PDS - "Fees and Other Costs.

Transparency of Performance

Each Fund is designed to broadly track the performance (before fees) of its Index. Each Fund generally achieves this by holding a portfolio of bonds that is representative of the Index. For more on performance information, see section 3 of the PDS - "Investment Objective, Strategy and Performance of the Funds.

Flexibility of Trading

Traditional unlisted managed funds do not have the facility to allow investors to trade at quoted prices. Instead, applications and redemptions are processed at a closing price. In contrast, investors in each Fund can normally trade Units on ASX during trading hours, subject to market conditions.

Deutsche Securities Australia Limited undertakes to make a market in each of the Funds and to continuously quote prices for Units in each Fund during normal trading hours as prescribed by the ASX under the ASX Rules (other than during a market disruption). The ASX Rules do not require this arrangement to continue where a Fund has at least 1,000 unitholders and a net asset value of at least $10 million.

Distributions

Each Fund will receive coupons and other payments on the underlying securities in its portfolio. Coupon payments and net profits on bonds bought and sold (including on principal repayments), will, after deduction of fees and expenses and certain amounts paid to Unitholders of the Fund who have redeemed during the relevant distribution period, be distributed to Unitholders of the Fund, normally quarterly. The Responsible Entity may choose to distribute more than this amount in any given quarter in order to maintain the distribution yield of the Fund. Any such excess amounts will normally be classified as a return of capital. Nonetheless, the amount of the distributions for a Fund may not necessarily be the same as the yield on the Fund's Index. For further information on distributions, see section 8 of the PDS - "Distributions and Distribution Reinvestment Plan.

About the Fund

The SPDR S&P/ASX Australian Bond Fund seeks to closely track, before fees and expenses, the returns of the S&P/ASX Australian Fixed Interest Index.

About the Index

The S&P/ASX Australian Fixed Interest Index is a broad benchmark index designed to measure the performance of the Australian bond market. It is a market value weighted benchmark. This means that each bond's weighting in the Index is calculated with reference to the aggregate current market value of all bonds in that Index. The total return on the Index is calculated by aggregating the interest return, reflecting the return due to paid and accrued coupon, and the price return, reflecting the gains or losses due to changes in the prices of bonds and principal repayments.

Further information on the S&P/ASX Government Bond Index including in relation to its past performance can be found at http://www.standardandpoors.com/indices/sp-asx- australian-fixed-interest-index- series/en/au/?indexId=spfi--basxusd----p-------.

As at 1 June 2012, there were 301 constituents in the S&P/ASX Australian Fixed Interest Index with approximately 69% in government issuers, 21% in supranational and sovereign bonds issuers and 10% in corporate issuers. The number of constituents and relative weightings will change from time to time.

How we invest your money

For each Fund, the Investment Manager aims to provide investment returns (before fees and other costs), that closely correspond to the performance of the Fund's Index (on an accumulation basis, i.e. as if all payments received on the constituents of the Index were reinvested).

In order to seek to achieve this investment objective, the Investment Manager, on behalf of each Fund, will employ a passive management approach based on sampling methodology.

The sampling strategy used by the Investment Manager seeks to build a representative portfolio that provides a return comparable to that of the Index. A sampling strategy is most often used for fixed interest funds tracking an index that is too broad to efficiently purchase all of the index's securities or where some of the securities included in the index may be difficult to purchase in the secondary market.

Consequently, each Fund will typically hold only a subset of the securities included in the relevant Index. The securities held by the Fund, representing a subset of all the securities in the Index will generally have the characteristics of the Index and are chosen with the intention of closely tracking the performance of the Index. In this way, the Fund may hold exposures to individual securities that are either above or below that security's actual weighting in the Fund's index.

In building each Fund's portfolio using a sampling strategy, the Investment Manager will select certain securities within the Index rather than all securities. In selecting each security, the Investment Manager pays close attention to the impact this security has on overall portfolio weights and exposures, including, but not limited to, sector weights, individual issuer weights, and interest rate risk in order to avoid unintended biases. The sampling process seeks to create a portfolio whose overall characteristics closely match the Index's primary characteristics. These characteristics include, but are not limited to, modified duration, yield to maturity, maturity structure, sector exposure and overall credit exposure. In implementing the sampling process, the Investment Manager may consider individual security factors including, but not limited to, liquidity of the bond, credit rating, coupon level, discount/premium, term to maturity, industry sector and issuer capitalisation. All of the securities in which the Fund invests will, at the time of purchase, be part of the mandated investible universe pending their disposal. However, the Fund may continue to hold securities that fall out of the investable universe of the Index pending their disposal.

From time to time, the Investment Manager, on behalf of a Fund, may use derivative contracts (e.g. futures contracts and options over securities within the relevant Index) to ensure the Fund has adequate market exposures. This may occur where the Investment Manager believes that this would better achieve the Fund's investment objective. For example, derivatives may be used to manage a Fund's exposure to the market during distribution periods, or where direct investment in a particular security is not possible or practical. Derivative instruments will only be used in limited circumstances and will not be used to gear a Fund.