MLC Popular chart pack

1. FOR ADVISERS ONLY Updated as at 31 December 2015 MLC Popular chart pack

2. Important information • This information has been provided by MLC Investments (ABN 30 002 641 661) and MLC Limited (ABN 90 000 000 402), members of the National Australia Bank group of companies, 105–153 Miller Street, North Sydney 2060. • This communication contains general information and may constitute general advice. Any advice in this communication has been prepared without taking account of individual objectives, financial situation or needs. It should not be relied upon as a substitute for financial or other specialist advice. Before making any decisions on the basis of this communication, you should consider the appropriateness of its content having regard to your particular investment objectives, financial situation or individual needs. You should obtain a Product Disclosure Statement or other disclosure document relating to any financial product issued by MLC Investments Limited (ABN 30 002 641 661) and MLC Nominees Pty Ltd (ABN 93 002 814 959) as trustee of The Universal Super Scheme (ABN 44 928 361 101), and consider it before making any decision about whether to acquire or continue to hold the product. A copy of the Product Disclosure Statement or other disclosure document is available upon request by phoning the MLC call centre on 132 652 or on our website at mlc.com.au. • An investment in any product offered by a member company of the National Australia Bank group of companies does not represent a deposit with or a liability of the National Australia Bank Limited ABN 12 004 044 937 or other member company of the National Australia Bank group and is subject to investment risk including possible delays in repayment and loss of income and capital invested. None of the National Australia Bank Limited, MLC Limited, MLC Investments Limited or other member company in the National Australia Bank group guarantees the capital value, payment of income or performance of any financial product referred to in this publication. • Past performance is not indicative of future performance. The value of an investment may rise or fall with the changes in the market. Please note that all performance reported is before management fees and taxes, unless otherwise stated.

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5. Cash and term deposit rates aren’t always high One year term deposit rates They rise just as often as they fall Current RBA interest rate is 2% and a 1 year term deposit rate with the National Australia Bank is 2.4% 8.3% July 2008 Return % 3% March 2009 With low term deposit rates you may not get the level of growth and income you need to achieve your goals. Source: JANA Corporate Investment Services Limited, Reserve Bank of Australia. Data as at 31 December 2015. Based on banks’ 1 year term deposit rates ($10,000).

6. Shares vs term deposits Source: Based on calculations by JANA Corporate Investment Services Limited as at 31 December and based on market index data. Shares – represented by the ASX All Ordinaries Accumulation and Price Indices. Income calculated as the difference between the return of the accumulation and price indices, multiplied by capital value. Term Deposit – represented by the Reserve Bank of Australia (RBA) 12 month Banks’ Term Deposits ($10,000), prior to January 1982, the RBA 12 month Term Deposit rate ($5000 - $10,000). All data assumes income is not re-invested. . Income and capital return on an investment of $100,000 in December 1980 – December 2015 Income from shares grows over time Capital value of term deposit does not grow

7. Growth of an investment in the Australian sharemarketover 20 years Despite recent sharemaket volatility, the long-term trend for shares has been up Source: JANA Corporate Investment Services Limited, data as at 31 December 2015. Tick marks indicate 1 January. Australian Shares: ASX All Ordinaries Accumulation Index. Value of $100,000 invested over 20 years (income reinvested)

8. Own or loan? Source: Calculations by JANA Corporate Investment Services Limited as at 31 December 2015. Based on data from FactSet and Reserve Bank of Australia . All data assumes income is not re-invested. Income and growth of a term deposit with NAB vs owning NAB shares Investment of $10,000 in December 1989 – December 2015 Interest and dividends Capital value

9. Consistency of dividend returns Source: Shares – represented by the ASX All Ordinaries Accumulation and Price Indices. Income calculated as the difference between the return of the accumulation and price indices, multiplied by capital value. Term Deposit – represented by the Reserve Bank of Australia (RBA) 12 month Banks’ Term Deposits ($10,000), prior to January 1982, the RBA 12 month Term Deposit rate ($5000 - $10,000). All data assumes income is not re-invested. Income from term deposits was higher initially, but income from shares grew significantly Income on an investment of $100,00 in December 1980 – December 2015

10. Shares have outperformed cash Based $10,000 Source: Factset, based on market index data updated to 31 December 2015. Australian shares: ASX All Ordinaries Accumulation Index. Cash: Bloomberg AusBond Bank Bill Index Over the past 20 years, an investment in shares provided significantly more growth than an investment in cash Value of $100,000 invested over 20 years (income reinvested) Based on an investment of $10,000 GFC GFC

11. The impact of inflation Source: Calculated by JANA Corporate Investment Services Limitedusing data provided by Global Financial Data, Inc. and Thomson Reuters Datastream. Cash vs Australian shares Value of investment (above inflation)

12. Days out of the market will erode your wealth Calculations by JANA Corporate Investment Services Limited using data as at 31 December 2014. The ‘market’ is the Australian share market and is represented by the ASX All Ordinaries Accumulation Index. Value of $10,000 invested over 20 years

13. Growing your wealth through a regular investment strategy ‘dollar cost averaging’ This strategy takes the guess work out of when to invest Source: JANA Corporate Investment Services Limited • Dollar cost averaging helps you benefit from short-term market volatility. • By investing smaller amounts at regular intervals you’ll buy less when the market is up (and prices are high) and more when the market is down (prices are low). You may end up with greater units than if you invested in a lump sum. Total amount paid for investment = $1,000 Average price paid = $7.14 (ie $1,000/140 units) Investment value at the end of 5 months = $1,400 (ie 140 units at $10 each)

14. Staying invested would have kept you ahead Over the long term, staying invested would have given you better returns compared to ‘the chaser’ who is clouded by hype and reacts to the latest news. Source: Calculations by JANA Corporate Investment Services Limited. Data as at 31 December 2015 based on market index data. All Ordinaries Accumulation Index, MSCI World Gross Accumulation Index ($A), Bloomberg AusBond Composite Bond Index (ASAM) (Commonwealth Bank Bond Accumulation Index prior to September 1989), S&P/ASX200 Property Accumulation Index (Listed Property Trust Accumulation Index prior to July 2000), Bloomberg AusBond Bank Bill Index (RBA 13 Week Treasury Notes prior to April 1987). Chaser assumes 100% investment in the highest performing asset class from the previous year. Balanced investor asset allocation: Australian shares:37%, Global shares: 24%, Australian Bonds: 31%, Listed property securities: 8%, Cash 0%. Income and dividends reinvested. The value of $100,000 invested since December 1980 Balanced investor – Staying fully invested The chaser moves in and out of the market by investing in last year’s best performing asset class

15. How different asset classes perform over time Source: JANA Corporate Investment Services Limited, data as at 31 December 2014. Tick marks indicate 1 January. Australian Shares: ASX All Ordinaries Accumulation Index. Global Shares: MSCI World Index ($A) The value of $10,000 invested in 1996

16. Following the latest trend – tech boom Source: FactSet and JANA Corporate Investment Services Limited. Technology stocks: NASDAQ Composite Index. The impact of the tech boom and media hype The value of $10,000 invested in November 1984 in the NASDAQ Composite Index (dividend income not included) Investors went into a frenzied buying spree. Invested heavily in companies without fully understanding the companies they were investing in. Companies began to fold and investors started to panic

17. Comparison of returns from global shares and term deposits since 2002 If you’d remained invested in global shares after Lehman Brothers collapsed you’d have almost $213,235 compared to $135,844 if you moved your money to a term deposit. Source: JANA Corporate Investment Services Limited. Data as at 31 December 2015. MSCI World Index (unhedged - $A). Term deposits: 1 year bank’s term deposit ($10,000) – Reserve Bank of Australia The impact of the Lehman Brothers collapse