Thanks for your enquiry.

The Hostplus Indexed Balanced option provides members with an investment in a

highly diversified portfolio that aims to achieve investment returns that closely track the index performance of
each asset class of which it has exposure.

The option is ‘passively managed’, which means it contains no active management across any asset class. It
has a 75 per cent growth and 25 per cent defensive split, diversified across a mix of assets with exposure to
equities, fixed income and cash.

The underlying investments that are used to obtain each asset class’s exposure are listed below:

Asset Class Manager Product Benchmark1 SAA2

Enhanced Passive Australian S&P / ASX 200 Accumulation

Australian Shares IFM Investors 35.0%
Equity Strategy Index
International shares Fission Indexed International MSCI World ex-Australia Index
BlackRock 20.0%
(hedged) Equity Fund (net dividends reinvested)
International shares Indexed Global Equities
IFM Investors MSCI World ex-Australia Index3 20.0%
(unhedged) Strategy
Australian fixed True Index Australian Fixed Bloomberg AusBond Composite
Macquarie 7.5%
income Interest Fund All Maturities Index
Barclays Global Aggregate Index
International fixed
BlackRock Global Bond Index Fund (hedged in AUD with net dividends 7.5%
income
reinvested)
High interest earning at call Bloomberg AusBond Bank Bill
Cash Citigroup 10.0%
account Index
Total 100.0%

1. A Benchmark is a standard against which the performance of a security, asset class or investment
manager can be measured. For example, a share market index (which represents a broad mix of shares
listed on a stock exchange) can be used as a benchmark for listed equity investments.
2. The Strategic Asset Allocation (SAA) is the spread of investments within an investment portfolio across
various asset classes. As part of the strategy of the portfolio, the asset mix is periodically rebalanced in
order to maintain a long-term goal for asset allocation.
3. The IFM Indexed Global Equities Strategy has a combined benchmark comprising 50% MSCI World
Index ex-Australia ex-Prohibited Securities (unhedged in AUD with net dividends reinvested) plus 50%
MSCI World Index ex-Australia ex-Prohibited Securities (unhedged in AUD with gross dividends
reinvested).

In light of the above, please be cognisant that the Indexed Balanced Investment Option does not simply track
one reference index.

We can confirm that the Indexed Balanced Investment Option did return 10.27 per cent for the 2017 financial
year and this return is net of taxes and net of investment management fees.

Regards,
Emily