Global SharesQuarterly Performance Update: Q4 2015

Returns Relative to Benchmark

As of Date: 31/12/2015

3 month YTD 1 year 3 years Since Incp %p.a

0.0

5.0

10.0

15.0

20.0

25.0

1.5

9.9 9.9

16.6 16.1

1.4

9.8 9.8

21.2 20.7

Global Shares Managed Account MSCI ACWI NR Index

Retu

rn

Investment Growth of $10,000

Time Period: 1/07/2012 to 31/12/2015

12/2012 06/2013 12/2013 06/2014 12/2014 06/2015 12/20158,000.0

10,000.0

12,000.0

14,000.0

16,000.0

18,000.0

20,000.0

22,000.0

Global Shares Managed Account MSCI ACWI NR Index

Top Holdings

Weighting %

Ibbotson Core International Eqty H (SA)

iShares MSCI Japan (AU)

iShares MSCI Emerging Markets (AU)

Ibbotson Core International Eqty UH(SA)

iShares MSCI BRIC (AU)

iShares MSCI South Korea Capped (AU)

iShares MSCI Taiwan (AU)

Cash Account

31.7

25.7

16.8

10.3

7.3

3.2

3.2

1.8

Bianca RosePortfolio Manager+612 9276 4558bianca.rose@ibbotson.com

Market Commentary

The December quarter proved to be an eventful period for financial markets as the Federal Reserve finally lifted U.S. interest rates by 0.25%, as expected, at their December meeting. This marks the first rise since 2006 and comes on the back of strong employment numbers, although the Fed is at pains to say that rates remain accommodative. By contrast, the European Central Bank under-delivered, failing to meet market expectations for greater stimulus measures, despite ongoing rhetoric to do “whatever it takes”.

China remained in focus given its deteriorating economic data, a volatile share market and the ongoing devaluation of the Yuan which was recently accepted into the IMF’s basket of currencies.

OPEC held a nonsensical meeting in December, which resulted in the effective removal of the production ceiling. This means that member nations are free to produce and sell as much oil as they want, into an already oversupplied market. The oversupply of the oil market may be further exacerbated by the looming return of Iranian production.

How the Portfolio Performed

The Global Shares portfolio delivered a return of 1.51%, for the quarter. This is a solid result in what was a challenging period for financial markets. Pleasingly, the portfolio delivered a solid return for the 12 months to 31 December 2015, being up 9.92%.

Global equities, for the most part, enjoyed a positive quarter. Developed world equities were particularly strong, especially Japan, which is a key overweight position in the portfolio. Emerging Market equities recorded a slightly negative return, in local currency terms, notwithstanding China having a positive quarter. Returns from global equities were, however, impacted by the effects of currency, with the Australian dollar appreciating significantly against all major peers, over the period. That said, in recognition of the currency getting closer to our fair value, we took the opportunity to increase the level of currency hedging in the portfolio, via the inclusion of the Ibbotson International Shares Core (Hedged) Trust, during October. This decision served us well.

Outlook

We continue to expect heightened volatility in markets as geopolitical and macroeconomic issues play out. In our view, having a valuation-driven dynamic asset allocation approach in this environment will be crucial to achieving investment objectives, over the longer term. Indeed, and even after the weakness across many asset classes in the previous two quarters, a number of key International equity markets, most notably United States equities, remain expensive, on our analysis (albeit they represent better value than before). That said, the portfolio remains nearly fully invested in global equity opportunities that we consider attractively priced.

THIS REPORT HAS BEEN PRODUCED USING PRESENTATION STUDIO, A MODULE OF MORNINGSTAR DIRECTThis document is issued by Ibbotson Associates Australia Limited (ABN 54 071 808 501, AFS Licence No. 228986) (‘Ibbotson’). Ibbotson is a member of the Morningstar group of companies (‘Morningstar’). © 2015 Morningstar, Inc. All rights reserved. In compiling this document, Ibbotson has relied on information and data supplied by Morningstar and other third party information providers. Whilst all reasonable care has been taken to ensure the accuracy of information provided, neither Ibbotson, Morningstar nor their third party information providers accept responsibility for any inaccuracy or for investment decisions or any other actions taken by any person on the basis or context of the information included. Any Morningstar ratings/recommendations contained in this report are based on the full research report available from Morningstar or your adviser. Past performance is not a reliable indicator of future performance. Neither Ibbotson nor Morningstar guarantees the performance of any investment or the return of capital. The information provided is general advice only has been prepared without reference to an individual person’s objectives, financial situation or particular needs. You should consider the advice in light of these matters and if applicable the relevant disclosure document before making any decision to invest. To obtain advice tailored to your situation, individuals should contact a professional financial adviser. For a copy of the relevant disclosure document, please contact our Distribution Team on 02 9276 4550. Some material is copyright and published under licence from ASX Operations Pty Ltd ACN 004 523 782.

Global Shares Managed Account As of 31/12/2015

Rescaled Weight

Banks

Capital Goods

Automobiles and Components

Technology Hardware and Equipment

Materials

Telecommunication Services

Food, Beverage and Tobacco

Pharmaceuticals and Biotechnology

Software and Services

Insurance

Energy

Real Estate

Semiconductors and Semiconductor Equipment

Transportation

Diversified Financials

Utilities

Consumer Durables and Apparel

Retailing

Household and Personal Products

Food and Staples Retailing

Health Care Equipment and Services

Media

Commercial Services and Supplies

Consumer Services

0.0 2.0 4.0 6.0 8.0 10.0

9.4

6.3

6.2

6.0

4.2

4.1

3.3

3.3

3.2

3.0

3.0

2.5

2.4

2.3

2.1

2.0

2.0

1.4

1.3

1.2

0.9

0.9

0.5

0.4

Transactions in the Quarter

IJP-AU iShares MSCI Japan ETF CDI DecreasedINT0017AU International Shares Core (Unhedged) AddedINT0016AU International Shares Core (Hedged) AddedIEM-AU iShares MSCI Emerging Markets ETF Depository Interests DecreasedIEU-AU iShares Europe ETF Depository Interests RemovedIAA-AU iShares Asia 50 ETF CDI RemovedIVV-AU iShares Core S&P 500 ETF Depository Interests RemovedIBK-AU iShares MSCI BRIC ETF -CDI AddedITW-AU iShares Taiwan AddedIKO-AU iShares South Korea AddedMA_CASH Cash Account Decreased

Equity Sectors (GICS)

Portfolio Date: 31/12/2015

%Energy 3.8Materials 5.1Industrials 12.9Healthcare 11.4Consumer Discretionary 15.3Consumer Staples 11.2Financials 15.9Information Technology 17.4Telecom Services 5.2Utilities 1.9Total 100.0

Equity Region Exposure

Portfolio Date: 31/12/2015%

North America 23.7Latin America 3.5United Kingdom 2.4Africa/Middle East 2.8Europe dev 5.6Europe emrg 2.3Japan 31.0Asia dev 12.5Asia emrg 16.1Australasia 0.1Total 100.0

Asset Allocation

Portfolio Date: 31/12/2015

%

Equity 98.2

Cash 1.8

Total 100.0

THIS REPORT HAS BEEN PRODUCED USING PRESENTATION STUDIO, A MODULE OF MORNINGSTAR DIRECTThis document is issued by Ibbotson Associates Australia Limited (ABN 54 071 808 501, AFS Licence No. 228986) (‘Ibbotson’). Ibbotson is a member of the Morningstar group of companies (‘Morningstar’). © 2015 Morningstar, Inc. All rights reserved. In compiling this document, Ibbotson has relied on information and data supplied by Morningstar and other third party information providers. Whilst all reasonable care has been taken to ensure the accuracy of information provided, neither Ibbotson, Morningstar nor their third party information providers accept responsibility for any inaccuracy or for investment decisions or any other actions taken by any person on the basis or context of the information included. Any Morningstar ratings/recommendations contained in this report are based on the full research report available from Morningstar or your adviser. Past performance is not a reliable indicator of future performance. Neither Ibbotson nor Morningstar guarantees the performance of any investment or the return of capital. The information provided is general advice only has been prepared without reference to an individual person’s objectives, financial situation or particular needs. You should consider the advice in light of these matters and if applicable the relevant disclosure document before making any decision to invest. To obtain advice tailored to your situation, individuals should contact a professional financial adviser. For a copy of the relevant disclosure document, please contact our Distribution Team on 02 9276 4550. Some material is copyright and published under licence from ASX Operations Pty Ltd ACN 004 523 782.

Global Shares Managed Account As of 31/12/2015

Risk-Reward

Time Period: 1/07/2012 to 31/12/2015

Std Dev

0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0

0.0

4.0

8.0

12.0

16.0

20.0

24.0

Global Shares Managed Account Australia OE Equity World Large Blend

Retu

rn

Multiple Investment Sector Exposure Chart

Portfolio Date: 31/12/2015

0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0

Basic Materials

Consumer Cyclical

Financial Services

Real Estate

Consumer Defensive

Healthcare

Utilities

Communication Services

Energy

Industrials

Technology

Global Shares Managed Account MSCI ACWI NR USD

Performance Relative to Peer Group

Peer Group (5-95%): All Managed Investments - Australia - Equity World Large Blend

Top Quartile 2nd Quartile 3rd Quartile Bottom Quartile

-5.0

0.0

5.0

10.0

15.0

3 Month CYTD 1 year 2 Years Since Incp %p.a

20.0

25.0

30.0

Global Shares Managed Account MSCI ACWI NR

Retu

rn

Market Performance

Time Period: Since Inception to 31/12/2015

Inv Bmk1

Up Period Percent

Down Period Percent

Best Month

Worst Month

Best Quarter

Worst Quarter

66.67

33.33

71.43

28.57

7.23 7.97

-4.84

13.86

-3.52

-6.25

13.41

-2.43

Risk

Time Period: Since Inception to 31/12/2015

Inv Bmk1

Return % pa

Std Dev

Max Drawdown

20.7416.14

10.87 9.87

-8.53 -6.13

Core Portfolio - Complete List of Holdings

Portfolio Date: 31/12/2015

CodeStyle Box

TotalRet 3Mo

(Qtr-End)

PortfolioWeight

%

Ibbotson Core International Eqty H (SA)

iShares MSCI Japan (AU)

iShares MSCI Emerging Markets (AU)

Ibbotson Core International Eqty UH(SA)

iShares MSCI BRIC (AU)

iShares MSCI South Korea Capped (AU)

iShares MSCI Taiwan (AU)

Cash Account

11745 È 31.7

IJP È 25.7

IEM È 16.8

11743 È 10.3

IBK È 7.3

IKO Ç 3.2

ITW È 3.2

1.8

4.66

-10.27

-3.42

-9.17

-13.66

0.55

0.17

-3.30

THIS REPORT HAS BEEN PRODUCED USING PRESENTATION STUDIO, A MODULE OF MORNINGSTAR DIRECTThis document is issued by Ibbotson Associates Australia Limited (ABN 54 071 808 501, AFS Licence No. 228986) (‘Ibbotson’). Ibbotson is a member of the Morningstar group of companies (‘Morningstar’). © 2015 Morningstar, Inc. All rights reserved. In compiling this document, Ibbotson has relied on information and data supplied by Morningstar and other third party information providers. Whilst all reasonable care has been taken to ensure the accuracy of information provided, neither Ibbotson, Morningstar nor their third party information providers accept responsibility for any inaccuracy or for investment decisions or any other actions taken by any person on the basis or context of the information included. Any Morningstar ratings/recommendations contained in this report are based on the full research report available from Morningstar or your adviser. Past performance is not a reliable indicator of future performance. Neither Ibbotson nor Morningstar guarantees the performance of any investment or the return of capital. The information provided is general advice only has been prepared without reference to an individual person’s objectives, financial situation or particular needs. You should consider the advice in light of these matters and if applicable the relevant disclosure document before making any decision to invest. To obtain advice tailored to your situation, individuals should contact a professional financial adviser. For a copy of the relevant disclosure document, please contact our Distribution Team on 02 9276 4550. Some material is copyright and published under licence from ASX Operations Pty Ltd ACN 004 523 782.

Global Shares Managed Account As of 31/12/2015

THIS REPORT HAS BEEN PRODUCED USING PRESENTATION STUDIO, A MODULE OF MORNINGSTAR DIRECTThis document is issued by Ibbotson Associates Australia Limited (ABN 54 071 808 501, AFS Licence No. 228986) (‘Ibbotson’). Ibbotson is a member of the Morningstar group of companies (‘Morningstar’). © 2015 Morningstar, Inc. All rights reserved. In compiling this document, Ibbotson has relied on information and data supplied by Morningstar and other third party information providers. Whilst all reasonable care has been taken to ensure the accuracy of information provided, neither Ibbotson, Morningstar nor their third party information providers accept responsibility for any inaccuracy or for investment decisions or any other actions taken by any person on the basis or context of the information included. Any Morningstar ratings/recommendations contained in this report are based on the full research report available from Morningstar or your adviser. Past performance is not a reliable indicator of future performance. Neither Ibbotson nor Morningstar guarantees the performance of any investment or the return of capital. The information provided is general advice only has been prepared without reference to an individual person’s objectives, financial situation or particular needs. You should consider the advice in light of these matters and if applicable the relevant disclosure document before making any decision to invest. To obtain advice tailored to your situation, individuals should contact a professional financial adviser. For a copy of the relevant disclosure document, please contact our Distribution Team on 02 9276 4550. Some material is copyright and published under licence from ASX Operations Pty Ltd ACN 004 523 782.

This document is issued by Ibbotson Associates Australia Limited (ABN 54 071 808 501, AFS Licence No. 228986) (‘Ibbotson’). Ibbotson is a member of the Morningstar group of

companies (‘Morningstar’). © 2015 Morningstar, Inc. All rights reserved. In compiling this document, Ibbotson has relied on information and data supplied by Morningstar and other

third party information providers. Whilst all reasonable care has been taken to ensure the accuracy of information provided, neither Ibbotson, Morningstar nor their third party

information providers accept responsibility for any inaccuracy or for investment decisions or any other actions taken by any person on the basis or context of the information included.

Any Morningstar ratings/recommendations contained in this report are based on the full research report available from Morningstar or your adviser. Past performance is not a reliable

indicator of future performance. Neither Ibbotson nor Morningstar guarantees the performance of any investment or the return of capital. The information provided is general advice only

has been prepared without reference to an individual person’s objectives, financial situation or particular needs. You should consider the advice in light of these matters and if

applicable the relevant disclosure document before making any decision to invest. To obtain advice tailored to your situation, individuals should contact a professional financial adviser.

For a copy of the relevant disclosure document, please contact our Distribution Team on 02 9276 4550. Some material is copyright and published under licence from ASX Operations

Pty Ltd ACN 004 523 782.

Portfolio Overview An actively managed diversified portfolio of global equities made up of ASX listed ETFs with global equities exposure.

Sector Specialist Managed Accounts

Asset Allocation Return Objective Time Horizon Risk Profile

Growth

Assets %

Defensive

Assets %

Australian Shares

Core

S&P/ASX 200 Accumulation Index 7 years High 100 0

Australian Shares

High Yield

S&P/ASX 200 Accumulation Index 7 years High 100 0

Australian Shares

Small Cap

S&P/ASX Small Ordinaries Accumulation Index 7 years Very high 100 0

Property

S&P/ASX 200 REITs Accumulation Index 5 years High 100 0

Global Shares MSCI ACWI Accumulation Index

(Net Dividends Reinvested)

7 years High 100 0

Cash

Bloomberg Australian Bond Bill Index 2 years Very low 0 100

This document is issued by Ibbotson Associates Australia Limited (ABN 54 071 808 501, AFS Licence No. 228986) (‘Ibbotson’). Ibbotson is a member of the Morningstar group of

companies (‘Morningstar’). © 2015 Morningstar, Inc. All rights reserved. In compiling this document, Ibbotson has relied on information and data supplied by Morningstar and other

third party information providers. Whilst all reasonable care has been taken to ensure the accuracy of information provided, neither Ibbotson, Morningstar nor their third party

information providers accept responsibility for any inaccuracy or for investment decisions or any other actions taken by any person on the basis or context of the information included.

Any Morningstar ratings/recommendations contained in this report are based on the full research report available from Morningstar or your adviser. Past performance is not a reliable

indicator of future performance. Neither Ibbotson nor Morningstar guarantees the performance of any investment or the return of capital. The information provided is general advice only

has been prepared without reference to an individual person’s objectives, financial situation or particular needs. You should consider the advice in light of these matters and if

applicable the relevant disclosure document before making any decision to invest. To obtain advice tailored to your situation, individuals should contact a professional financial adviser.

For a copy of the relevant disclosure document, please contact our Distribution Team on 02 9276 4550. Some material is copyright and published under licence from ASX Operations

Pty Ltd ACN 004 523 782.

Diversified Managed Accounts

Asset Allocation Return Objective Time Horizon Risk Profile

Growth

Assets %

Defensive

Assets %

Defensive

CPI+ 0.75% Rolling 1 year Low 15 85

Conservative

CPI+ 1.0% Rolling 3 years Low to Medium 30 70

Balanced

CPI+ 2.5% Rolling 5 years Medium 50 50

Growth

CPI+ 3.5% Rolling 7 years Medium to High 70 30

High Growth

CPI+ 4.5% Rolling 9 years High 85 15

High Growth Plus

CPI+ 5.0% Rolling 10 years High 95 5

Diversified Income

CPI+ 2.0% Rolling 4 years Medium 40 60