MLC Investment Management Annual Investor Review Appendix: Wholesale 30 June 2011

MLC Investment ManagementAnnual Investor Review

Appendix: Wholesale

30 June 2011

22

General advice warning and disclaimer

This information has been provided by MLC Limited (ABN 90 000 000 402) a member of the National Group, 105–153 Miller Street, North Sydney 2060.

Any opinions expressed in this communication constitute our judgement at the time of issue and are subject to change. We believe that the information contained in this communication is correct and that any estimates, opinions, conclusions or recommendations are reasonably held or made as at the time of compilation. However, no warranty is made as to their accuracy or reliability (which may change without notice) or other information contained in this communication.

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.

The specialist investment managers are current as at the date this communication was prepared. Investment managers are regularly reviewed and may be appointed or removed at any time without prior notice to you.

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 [include AFSL for PDSs/FSGs/Annual Reports]) 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.

33

Table of Contents

Topic Slides

MLC Horizon 3 Conservative Growth Portfolio 4

MLC Horizon 5 Growth Portfolio 7

MLC Horizon 6 Share Portfolio 10

MLC Australian Share Fund 13

MLC Global Share Fund 14

MLC Global Property Fund 15

MLC Property Securities Fund 16

MLC Diversified Debt Fund 17

MLC IncomeBuilderTM Fund 20

44

MLC Horizon 3 Conservative Growth Portfolio – total returns

Source: MLC Investment Management

• 5 year returns have always been positive• 5 year returns have always been positive

Historical Absolute PerformanceMLC Wholesale Horizon 3 Conservative Growth Portfolio

(after taking into account fees)

-10%

-5%

0%

5%

10%

15%

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Re

turn

% p

.a.

1 Year Ended 30 June 5 Years Ended 30 June

55

MLC Horizon 3 strategy– asset class contribution


Contribution to Total Return by Asset ClassMLC Wholesale Horizon 3 Conservative Growth Portfolio

(before taking into account fees)

-2

-1

-1

0

1

1

2

2

3

3

4

4

Australian Shares Global Shares -Hedged

Global Shares -Unhedged

Global PropertySecurities

LTAR Debt Securities

Ret

urn

Co

ntr

ibu

tio

n %

(an

nu

alis

ed f

or

per

iod

s g

reat

er t

han

1 y

ear)

3 months to Jun-2011 1 year to Jun-2011 3 years to Jun-2011 5 years to Jun-2011

66

MLC Wholesale Horizon 3 Conservative Gr PortfolioComparison with the Mercer Wholesale-Moderate Growth Universe

Performance before tax and after fees for periods ended June 2011Rates of Return(%)

13

9

5

1

-3

3 Months (% ) 1 Year (% ) 3 Years (% pa) 5 Years (% pa) 7 Years (% pa)

MLC0398AU -0.6 (14) 8.3 (9) 2.7 (10) 2.9 (7) 5.4 (7)

95th Percentile 0.1 12.4 4.8 5.0 6.7Upper Quartile -0.3 9.1 3.9 3.3 5.9

Median -0.4 8.5 3.2 2.8 5.6Lower Quartile -0.5 8.0 2.5 2.4 5.25th Percentile -0.9 7.0 1.7 2.1 4.8

Number of Funds 17 16 16 15 11

Data Source: Morningstar and Lipper, A Thomson Reuters Company

MLC Horizon 3 Conservative Growth Portfolio – peer relative performance

Q3

Q2Q3

Q3

Q4

77

MLC Horizon 5 Growth Portfolio – total returns



Historical Absolute PerformanceMLC Wholesale Horizon 5 Growth Portfolio


-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Re

turn

% p

.a.


88



Contribution to Total Return by Asset ClassMLC Wholesale Horizon 5 Growth Portfolio


-2

-1

0

1

2

3

4

5

Australian Shares Global Shares -Hedged

Global Shares -Unhedged

Global PropertySecurities

LTAR Debt Securities

Ret

urn

Co

ntr

ibu

tio

n %

(an

nu

alis

ed

fo

r p

erio

ds

gre

ate

r th

an

1 y

ea

r)


99

MLC Wholesale Horizon 5 Growth PortfolioComparison with the Mercer Wholesale-High Growth Universe


13

9

5

1

-3


MLC0265AU -2.3 (15) 9.8 (12) 0.0 (12) 0.6 (8) 4.8 (6)

95th Percentile -1.3 12.6 1.7 2.7 6.8Upper Quartile -1.7 10.7 0.8 1.2 5.4

Median -2.1 10.2 0.3 0.6 5.0Lower Quartile -2.3 9.1 -1.0 0.2 4.45th Percentile -2.4 8.4 -1.5 -0.5 4.0



MLC Horizon 5 Growth Portfolio – peer relative performance

Q4

Q3

Q3Q2

Q3

1010

MLC Horizon 6 Share Portfolio – total returns


Historical Absolute PerformanceMLC Wholesale Horizon 6 Share Portfolio


-30%

-20%

-10%

0%

10%

20%

30%

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Ret

urn

% p

.a.


1111



Contribution to Total Return by Asset ClassMLC Wholesale Horizon 6 Share Portfolio


-3

-2

-1

0

1

2

3

4

5

6

7

8

Australian Shares Global Shares - Hedged Global Shares - Unhedged LTAR

Ret

urn

Co

ntr

ibu

tio

n %

(an

nu

alis

ed

fo

r p

erio

ds

gre

ate

r th

an

1 y

ea

r)


1212

MLC Wholesale Horizon 6 Share PortfolioComparison with the Mercer Wholesale-All Growth Universe


13

8

3

-2

-7


MLC0397AU -3.0 (8) 10.5 (9) -1.2 (13) 0.0 (6) 4.7 (4)

95th Percentile -0.6 12.6 3.1 2.8 5.7Upper Quartile -2.5 12.1 0.7 0.2 4.9

Median -3.0 10.2 -0.3 -0.2 4.6Lower Quartile -3.5 7.9 -1.7 -0.7 3.75th Percentile -4.2 5.3 -3.0 -2.5 2.3



MLC Horizon 6 Share Portfolio – peer relative performance

Q2

Q2

Q2

Q3

Q2

1313

MLC Australian Share Fund – total returns



Historical Absolute PerformanceMLC Wholesale Australian Share Fund


-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Ret

urn

% p

.a.


1414

MLC Global Share Fund – total returns


Historical Absolute PerformanceMLC Wholesale Global Share Fund


-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Re

turn

% p

.a.


1515

MLC Global Property Fund – total returns


Historical Absolute PerformanceMLC Wholesale Global Property Fund


-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

2008 2009 2010 2011

Re

turn

% p

.a.

1 Year Ended 30 June

1616

MLC Property Securities Fund – total returns


Historical Absolute PerformanceMLC Wholesale Property Securities Fund


-40%

-30%

-20%

-10%

0%

10%

20%

30%

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Re

turn

% p

.a.


1717

MLC Diversified Debt Fund – total returns


Historical Absolute Performance MLC Wholesale Diversified Debt Fund


0%

2%

4%

6%

8%

10%

12%

2009 2010 2011

Ret

urn

% p

.a.

1 Year Ended 30 June

1818

MLC Diversified Debt Fund – asset class contribution


Contribution to Total Return by Asset ClassMLC Wholesale Diversified Debt Fund(before taking into account fees and tax)

-0.5%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

Australian Bonds Global GovernmentBonds

Global Non-Government Bonds

Global Multi-SectorBonds

Global High YieldBonds

Global Bank Loans Global Mortgages

Ret

urn

Co

ntr

ibu

tio

n %

(an

nu

alis

ed f

or

per

iod

s g

reat

er t

han

1 y

ear)

Quarter to Jun-11 1 Year to Jun-11 3 years to Jun-11

1919

MLC Diversified Debt Fund - manager contribution


Manager Absolute PerformanceWholesale Diversified Debt Fund


0%

5%

10%

15%

20%

Antares (all-maturities)

UBS (all-maturities)

GoldmanSachs (all-maturities)

WellingtonManagement

(all-maturities)

Rogge (all-maturities)

Amundi FranklinTempleton

PIMCO W. R. Huff Oaktree ShenkmanCapital

Stone Tower

AustralianBonds

AustralianBonds

GlobalGovernment

Bonds

Global Non-Government

Bonds

Global Non-Government

Bonds

GlobalMulti-

SectorBonds

GlobalMulti-

SectorBonds

GlobalMulti-

SectorBonds

GlobalHigh Yield

Bonds

GlobalHigh Yield

Bonds

GlobalBank

Loans

GlobalMortgages

Ma

na

ger

Per

form

an

ce

%(a

nn

ual

ised

fo

r p

erio

ds

gre

ater

th

an 1

yea

r)

Quarter to Jun-11 1 Year to Jun-11 3 years to Jun-11

2020

MLC IncomeBuilderTM Fund – distribution performance


MLC IncomeBuilderTM Investment Trust (Wholesale) Distribution Analysis

2.30 2.683.32

4.21 4.80

6.417.10 7.52 7.69 7.16

5.736.62

-

0.58

2.27

3.97

3.78

3.01

0.32

0.13

0.56

2.37 1.94

3.96

0.300.77

0.900.250.00

0.00

-

--

0.00

0.01

0.040.01

-

2

4

6

8

10

12

14

16

18

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Financial Year End 30 June

Cents

per

unit

Underlying IncomeTaxable Capital GainsBuybacksConcessional (non-taxed) Capital Gains

2121

MLC IncomeBuilder™ Fund - The dividend environment is improving

Company Latest year dividend declared (per share)

Change on last years corresponding div.

Commonwealth Bank $3.02 28%

ANZ Banking Group $1.26 24%

Westpac $1.39 20%

Wesfarmers $1.35 17%

Coca-Cola Amatil $0.485 11%

Woolworths $1.19 9%

National Australia Bank $1.52 4%

Brambles $0.255 2%

AMP $0.30 0%

Fosters Group $0.2725 0%

As at 30th June 2011Source: MLC Investment Management

2222

MLC IncomeBuilder ™ Fund – manager contribution


Manager Performance in Excess of the Index

IncomeBuilderTM Strategy(before taking into account fees and tax)

-4.0%

-3.0%

-2.0%

-1.0%

0.0%

1.0%

2.0%

3.0%

Vanguard Maple-Brown Abbott IncomeBuilderTM

Exc

es

s R

etu

rn v

s S

&P

/AS

X 2

00

All

In

du

str

ials

Ind

ex

(an

nu

alis

ed f

or

per

iod

s g

reat

er t

han

1 y

ear)

Quarter to Jun-11 1 Year to Jun-11 3 years to Jun-11 5 Years to Jun-11

MLC Investment Management Annual Investor Review Appendix: Wholesale 30 June 2011

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