BT Personal Portfolio Service. Superannuation and Pension

BT Personal Portfolio Service Superannuation and Pension Annual Report for the year ended 30 June 2015

Contents Recent developments in Superannuation 1 Understanding your investment 4 Understanding the risks of investing 7 Performance Overview Superannuation Service 8 Pension Service 10 Investment Portfolios Westpac Classic Strategies 12 Westpac Sector s 14 Other Managers 16 Asset Allocation 29 Other important information 32 Introduction This Annual Report dated 18 December 2015 is issued by Westpac Securities Administration Limited (ABN 77 000 049 472, AFSL No 233731, RSE L0001083) ( Trustee ), the issuer and trustee of BT Personal Portfolio Service: Superannuation and Pension ( Service) which is issued under a subplan of the Westpac MasterTrust Superannuation Division (ABN 81 236 903 448, RSE 1003970) ( ). The Trustee is an approved trustee under the Superannuation Industry (Supervision) Act 1993 (Cth) ( SIS ) and is a wholly owned subsidiary of the Westpac Banking Corporation (ABN 33 007 457 141) ( Westpac ). The Service wholly invests in a life insurance policy issued by Westpac Life Insurance Services Limited ABN 31 003 149 157 ( Westpac Life ) from its No. 2 Statutory. Westpac Life is responsible for the day to day administration of the Service. Information in relation to the other manager investment portfolios is based on material issued by these managers. An investment in the Service is not a deposit with, or any other liability of, Westpac Banking Corporation (ABN 33 007 457 141) ( Bank ) or any other company in the Westpac Group. It is subject to investment risk, including possible delays in repayment of withdrawal proceeds and loss of income and principal invested. The Bank is not the issuer of the Service. Neither the Bank nor any company in the Westpac Group stands behind or otherwise guarantees the capital value or investment performance of the Service. The information contained in this annual report is general information and does not take into account your individual objectives, financial situation or needs. You should consider the appropriateness of this information, taking into account your objectives, financial situation and needs, and consider talking to your adviser before acting on any of the information in this annual report.

Recent developments in Superannuation 1. 2015/16 superannuation thresholds The superannuation contributions caps and various other superannuation thresholds that apply for the 2015/16 financial year are as follows: Low rate cap: $195,000 Concessional contributions cap: Age 49 or over on 30 June 2015 $35,000 Under age 49 on 30 June 2015 $30,000 Non-concessional contributions cap: $180,000 1 Capital Gains Tax (CGT) Cap (lifetime limit): Government Co-contributions: $1,395,000 Maximum co-contribution 2 $500 Lower threshold $35,454 Upper threshold (cut off) $50,454 1 if you were under age 65 on 1 July 2015 you may be able to make up to $540,000 of non-concessional contributions over three financial years. If you triggered the bring forward non-concessional cap in 2013/14, you can only make non-concessional contributions up to $450,000 over the relevant 3 year period. 2 the maximum co-contribution payable is phased out by 3.333 cents for every dollar of total income over the lower threshold, until it reaches zero at the upper threshold. From 1 July 2015 the general concessional contribution cap is $30,000 pa. The higher cap will cease to apply when the general concessional contributions cap reaches $35,000 as a result of indexation. 3. Preservation Age increases Generally you can access your superannuation when you have permanently retired on or after reaching your preservation age or after you reach age 65. You can access your superannuation in limited other circumstances such as if you become permanently incapacitated, are suffering from a terminal medical condition or are suffering severe financial hardship. If you are aged between preservation age and age 65 you can also commence a transition to retirement pension allowing you to access your superannuation in the form of a non-commutable income stream. If you were born before 1 July 1960 your preservation age is 55. If you were born on or after 1 July 1960 your preservation age is between 56 and 60 depending on your date of birth (see the table below). Date of Birth Preservation Age When you will reach Preservation Age 2. Higher concessional contributions cap An increased concessional contribution cap of $35,000 pa (not indexed) is available for members aged 59 years or over on 30th June 2013 or 49 years or over from 30 June 2014 (see table below). Income Year Concessional cap for those aged 49 years or over on 30 June 2014 59 years or over on 30 June 2013 49 years or over on 30 June 2015 2015-16 $35,000 $35,000 $35,000 2014-15 $35,000 $35,000 $30,000 2013-14 $35,000 $25,000 $25,000 Before 1 July 1960 1 July 1960 30 June 1961 1 July 1961 30 June 1962 1 July 1962 30 June 1963 1 July 1963 30 June 1964 After 30 June 1964 55 Before 1 July 2015 56 1 July 2016 30 June 2017 57 1 July 2018 30 June 2019 58 1 July 2020 30 June 2021 59 1 July 2022 30 June 2023 60 After 30 June 2024 Annual Report 2015 1

Recent developments in Superannuation - con t 4. Terminal Medical Condition of release From 1 July 2015, the certification period has been extended from 12 to 24 months for individuals suffering from a terminal medical condition. If you are suffering from an illness or have incurred an injury that is likely to result in death within 24 months, you may be eligible to access your super as a tax-free lump sum benefit. It s important to note that if you hold insurance and you withdraw your entire superannuation benefit you will lose any insurance you currently have. To continue your insurance you will need to leave sufficient balance in your account to future premiums. This information is intended as a guide only and does not constitute advice. Before making a withdrawal under Terminal medical condition you should speak to your financial adviser about the impacts this could have on your insurance entitlements. 5. Deeming of account-based income streams Account-based income streams that commenced on or after 1 January 2015 are subject to deeming rules for income test purposes when determining an individual entitlement to Centrelink and DVA benefits. Under the deeming provisions, all financial investments are assumed to earn a certain rate of income regardless of the income actually generated. Customer Threshold^ Deeming Rates Single Member of a couple Up to and including $48,600 1.75% Above 3.25% Up to and including $80,600 (combined) 1.75% Above 3.25% For account-based pensions that commenced prior to 1 January 2015 will adopt the grandfathering provisions if: you were in receipt of an income support payment immediately before 1 January 2015; and you have been continuously receiving an income support payment since 1 January 2015; and your account-based pension commenced before 1 January 2015 and has continued to be provided to you since the commencement date. An income support payment includes common pensions and allowances such as the age pension, disability support pension, carer payment (not carer allowance), a DVA service pension, DVA income support supplement and newstart allowance. If you are eligible under the grandfathering provisions, you should note that: any changes in your circumstances resulting in you becoming ineligible for income support after 1 January 2015 may mean income from your account-based pension will be assessed using the deeming rules if you commute your existing pension to commence a new account-based pension, income from the new pension will be assessed using the deeming rules if you have made an automatic reversionary death benefit nomination for your spouse to continue to receive your account-based pension in the event of your death, your spouse may be eligible to continue to have income from the pension assessed using the current income test provided certain conditions are satisfied You should speak to your financial adviser or Centrelink or DVA about how these changes may impact your income support payment entitlements. Member of allowee couple Up to and including $40,300 1.75% Above 3.25% ^Rates and thresholds are effective from 1 July 2015 and are indexed in line with CPI each year. 2 131 817

6. Lost member accounts transferred to the ATO If your account is considered to be lost*, the trustee may be required to transfer your account balance to the ATO if: your account balance is less than the small lost account threshold; or the trustee is satisfied that it will never be possible to pay an amount to you (because you cannot be identified based on the information reasonably available to the trustee). From 31 December 2015, the small lost account threshold has increased to $4,000 (currently $2,000) and from 31 December 2016 it will increase further to $6,000. If your account balance is transferred you will be able to reclaim it from the ATO. The ATO will pay interest on unclaimed super money amounts paid directly to eligible individuals for the period the money was held by the ATO after 1 July 2013. Any interest paid is tax free. Proposed changes to superannuation 1. ATO payment of unclaimed super money In certain circumstances superannuation s may be required to transfer super account balances to the ATO as unclaimed superannuation money. Currently, the ATO can only pay this money directly to a person, if they have reached age 65 or the amount is less than $200. It is proposed that from 1 July 2016, the ATO will be able to pay unclaimed superannuation money directly to individuals suffering from a terminal medical condition. Requests for payment can be made using the ATO Payment of unclaimed super money - individual form. Certified copies of medical certificates must also be provided from two registered medical practitioners, one of which is a specialist in the area related to the individual s illness or injury, certifying that the individual suffers from an illness, or has incurred an injury, that is likely to result in the death of the individual within 24 months. Individuals can also request the ATO to transfer unclaimed superannuation money held on their behalf to a complying super at any time. * Your super account will generally be considered lost if: no contributions or rollovers have been added to your account in the last year and either the trustee has never had an address for you or mail sent to you by the trustee has been returned unclaimed, or for default employer super plans, no contributions or rollovers have been added to your super account in the last five years. Annual Report 2015 3

Understanding your investment Assets of the Service currently invest in a policy issued by Westpac Life Insurance Services Limited (represents 100% of the assets of the Service). The Service does not invest directly in derivatives securities. Investing in the Service The Service has a range of Investment Portfolios. Members can choose to invest in any combination of these investment portfolios. You can switch between investment portfolios at any time. Westpac Investment Portfolios The Trustee, in conjunction with professional investment specialists, from time to time sets a core asset mix and strategic range for each investment sector for each of the Westpac Classic Strategies. The core asset mix represents the current long term investment allocation in each asset sector that aims to achieve the objective of each Westpac Classic Strategy. The strategic ranges represent the current maximum and minimum that each Westpac Classic Strategy can invest in each sector. The actual percentage invested in each asset sector at any time may be different from the core mix (but usually within the strategic range) due to the impact of market movements, cash flows or investment decisions undertaken in the strategies. Other Manager Investment Portfolios The Service also includes investment portfolios from selected other managers. These other managers include: BT Investment Management Limited, Aberdeen Asset Management, Macquarie Investment Management Limited, MLC Investments Limited, Colonial First State Investment Managers (Australia) Limited, BlackRock Investment Management (Australia) Limited, Schroder Investment Management Australia Limited and UBS Global Asset Management. The Trustee s investment objective for these other investment portfolios is to achieve returns in line with the underlying, before the deduction of fees and expenses charged by the Service and tax. The Trustee aims to meet this objective by investing either directly in the underlying or indirectly through collective investments (such as life policies or unit trusts) which in turn invest in the underlying. Further information on the underlying s investment objectives and strategies is shown on pages 17-28 of this report. This is based on information provided by the respective managers. 4 131 817

Derivatives These are investments whose value is derived from other assets such as shares, and may be used as part of the portfolio management process. Futures contracts and options are examples of derivatives. Derivatives may be used to reduce risk and can act as a hedge against adverse movements in a particular market and/or in the underlying asset. Derivatives can also be used to gain exposure to assets and markets. While derivatives offer the opportunity for significantly higher gains from a smaller investment (because of the effective exposure obtained) they can also produce significantly higher losses, sometimes in excess of the amount invested. The investment managers are required to have strict policies and procedures on the use of derivatives and generally are not permitted to use derivatives to gear the investment options unless otherwise stated. Net earnings The earnings rate for members of the Service is reflected in the price of the units, rather than being credited or debited against the accounts of members. A change in the value of the members units reflects the earnings of the assets in the investment portfolio. Net value of an Investment Portfolio The net value of an Investment Portfolio is the value of all investments and cash held by the Investment Portfolio less amounts owing or payable in respect of the Investment Portfolio including any provision that is considered necessary. For example, provision might be made for possible future losses on an investment that is considered to be overvalued or cannot be fairly determined. A full description of the valuation method is given in the Trust Deed. The net value of an investment option may include an asset known as Deferred Tax Asset (DTA). A DTA arises when, for tax purposes, a loss is available to offset a future gain (ie so as to reduce the amount of gain that might otherwise be taxable). Our policy is to recognise DTAs as a separate asset of the relevant investment option. Like any other asset in an investment option, the value of a DTA is reflected in the unit price for that investment option, through the calculation of the net asset value. The value of a DTA can change over time based on the likelihood of being able to offset the losses against future gains and the time at which they can be used. Accordingly, changes in the value of a DTA may cause unit prices to change, as is the case with a change in the value of any other asset in the investment option. The level of a DTA recorded in the unit price of an investment option may be capped, taking into account the probability that accumulated losses are able to be offset against future gains. The Joint ASIC and APRA Unit Pricing Guide to Good Practice, and BT policy requires that a DTA only be recognised in the net asset value and unit price of an investment option to the extent that the deferred tax benefit is expected to be realisable in the future. It may be necessary to reduce the level of a DTA to ensure that the value of the investment option (and the unit price) is not overstated. Changes to Investment Portfolio details To maintain the quality and diversity of our product range of Investment Portfolios we may make changes to the Investment Portfolios at any time including: adding, closing or terminating an Investment Portfolio (including transferring an Investment Portfolio into other Investment Portfolios) changing an Investment Portfolio s objective, investment strategy, asset allocation neutral position and ranges or currency strategy (if any); changing the rules that govern an Investment Portfolio (eg changing fees, notice periods or withdrawing features); and removing or adding an investment manager or investment consultant. Annual Report 2015 5

Understanding your investment - con t Restriction on applications, switching and withdrawals In certain circumstances allowed under superannuation law and the Trust Deed (for example, where it would prejudice the interests of other members of the ), we may delay, suspend or not process your contribution, switching or withdrawal requests. In certain circumstances we reserve the right to delay or suspend unit prices, apply a special price or not process future application, switching or withdrawal requests. We are only required to transfer or rollover your benefits after receiving all relevant information as set out in the SIS Regulations. Ordinarily, if you haven t made an investment selection we must transfer or rollover your benefits within 3 days, or 30 days if you ve made an investment selection, of receiving all relevant information that is necessary to process your request. However, if you hold managed investments in your account that are illiquid/suspended or become illiquid/suspended, it may take longer to transfer your full benefit. Investments exceeding 5% As at 30 June 2015, the following combinations represent aggregate investments exceeding 5% of the total assets of BT Personal Portfolio Service: Superannuation and Pension. Westpac Classic Strategy: Balanced Growth represents 15.53% Westpac Sector s: Australian Shares represents 9.00% Colonial First State Wholesale Imputation represents 7.88% Westpac Classic Strategy: Diversified Growth represents 5.94% Westpac Sector s: Cash and Short-Term Securities represents 5.63% There are no other combinations of investments that the Trustee knows or ought reasonably to know are invested, directly or indirectly, in a single enterprise or single group of associated enterprises and that have a combined value in excess of 5% of the total assets of BT Personal Portfolio Service: Superannuation and Pension as at 30 June 2015. 6 131 817

Understanding the risks of investing Risk can be managed and even minimised, but cannot be eliminated and there is always a chance you may lose money on any investments you make. You should be aware of these risks when investing and understand that not all risks are foreseeable. No matter which investment option you choose to invest in, there will always be some level of investment risk. The variability of returns is known as investment risk. Generally, the higher level of risk you are prepared to accept, the higher the potential return, or losses. Some common types of investment risks are outlined in the table below. Risk type Market risk Security specific risk International investments risk Currency risk Interest rate risk Credit risk Liquidity risk Derivative risk Description Markets are subject to multiple factors, including economic conditions, government regulations, market sentiment, local and international political events and environmental and technological issues. Market risk may have different impacts on each investment and investment style in that market at various times. An investment in a company may be affected by unexpected changes in that company s operations (such as changes in management or loss of a big customer) and business environment. Investing internationally in one of the major asset classes will give exposure to different or potentially greater risks that are not associated with investing in Australia. International investments may be more affected by political and economic uncertainties, lower regulatory supervision, movements in foreign currency and interest rates and more volatile, less liquid markets. For investments in international assets, a rise in the Australian dollar relative to other currencies, may negatively impact investment values and returns. Changes in interest rates can have a direct or indirect impact on the investment value and/ or returns of all types of assets. Interest rates may affect a company s cost of borrowings as well as the value of fixed interest securities. Credit risk refers to a risk of loss arising from the failure of a borrower or other party to a contract to meet its obligations. This may arise in securities such as derivatives, fixed interest securities and mortgage securities. This is the risk that an investment may not be easily converted into cash with little or no loss of capital and minimum delay because of their inadequate market depth or disruptions in the market place. Securities of small companies in particular may, from time to time, and especially in falling markets, become less liquid. The value of derivatives is linked to the value of the underlying assets and can be highly volatile. Potential gains and losses from derivative transactions can be substantial. Annual Report 2015 7

Performance overview Superannuation Service Performance Figures are calculated in accordance with Financial Services Council (FSC) standards. Total returns are calculated: using withdrawal prices appropriate for the month end taking into account management costs (other than member fees and issuer fees) of the relevant investment portfolio, and taking into account earnings tax up to a maximum of 15% plus withholding tax paid on foreign income (if any). Investment returns shown are historical. Investment returns can go up and down. Past performance is not a reliable indicator of future performance. Future performance is not guaranteed. Investment Portfolio Aberdeen Select Investment Actively Hedged International Equities Start date One year returns to 30 June 5 years 10 years Since 2015 2014 2013 2012 2011 com p com p incept to aver. To 30 aver. To 30 30 June June 2015 June 2015 2015 % % % % % % pa % pa % pa May-02 9.94 16.31 22.69 1.98 1.59 10.21 3.85 2.30 Australian Fixed Interest Jan-96 3.94 4.06 1.74 10.06 4.28 4.78 4.34 4.59 Australian Shares Jan-96 5.12 15.39 23.32-6.16 9.14 8.91 6.89 7.97 Balanced Growth Feb-96 7.88 10.20 14.54 1.01 7.46 8.13 5.32 6.08 BlackRock Scientific Australian Equity BlackRock Scientific Diversified Growth BlackRock Scientific International Equity BlackRock Wholesale Australian Share BlackRock Wholesale Balanced BT Wholesale Active Balanced BT Wholesale Balanced Returns May-02 3.55 16.15 26.64-8.93 12.88 9.38 5.78 6.81 Feb-96 6.88 14.57 19.41-2.24 8.20 9.11 4.39 5.75 Jul-97 30.06 20.95 31.87-1.63-0.14 15.30 4.76 3.33 May-00-1.34 15.44 17.30-8.06 5.43 5.31 5.07 5.67 Feb-96 6.25 11.63 15.43 0.72 4.93 7.67 5.39 5.40 Jan-96 8.98 10.26 13.98-1.37 7.28 7.70 4.64 5.22 Jan-96 9.66 10.43 11.97-0.95 6.79 7.48 4.31 4.72 8 131 817

Investment Portfolio BT Wholesale Core Australian Share BT Wholesale International Share BT Wholesale Partner Australian Shares Value 1 BT Wholesale Smaller Companies Start date One year returns to 30 June 5 years 10 years Since 2015 2014 2013 2012 2011 com p com p incept to aver. To 30 aver. To 30 30 June June 2015 June 2015 2015 % % % % % % pa % pa % pa Sep-97 7.79 15.90 21.18-7.39 9.25 8.90 7.01 7.53 Aug-97 21.39 19.16 33.03-2.93 1.39 13.62 4.69 2.46 May-03 5.17 20.90 20.25-8.39 8.59 8.75 4.85 6.89 Jul-01 6.39 16.10 16.66-5.81 23.94 10.96 7.87 10.65 Cash and Short-term securities Jan-96 1.29 1.13 1.68 2.76 3.09 1.99 2.82 3.12 Colonial First State Wholesale Diversified Colonial First State Wholesale Imputation May-00 7.12 11.38 18.13-3.09 5.58 7.60 4.46 3.55 Jul-97 5.28 16.81 26.58-9.38 8.51 8.89 6.38 8.11 Conservative Growth Feb-96 4.33 4.60 5.10 4.34 4.83 4.64 4.05 4.51 Diversified Growth Jan-96 7.58 8.86 11.57 3.08 6.65 7.51 5.15 5.85 Dynamic Growth Feb-96 8.79 12.06 18.03-1.19 8.10 8.98 5.51 6.32 International Fixed Interest Jun-96 5.01 4.68 1.78 7.82 5.62 4.97 4.80 5.31 International Shares Jan-96 21.54 17.17 33.63-1.09 1.63 13.85 5.05 3.85 MLC Wholesale Horizon 4 Balanced Portfolio MLC Wholesale Platinum Global Jul-98 9.05 12.85 15.72-2.09 7.45 8.42 4.92 4.94 May-01 20.09 20.50 32.63-8.90-4.59 10.78 7.83 6.53 Moderate Growth Jan-96 6.07 6.87 8.59 3.93 5.82 6.24 4.67 5.25 Platinum International Sep-04 20.39 18.26 33.80-8.78-9.03 9.59 7.60 6.89 Property Jan-96 17.88 9.11 21.62 9.99 6.13 12.80 2.36 6.13 Schroder Credit Securities Wholesale Class Schroder Wholesale Australian Equity May-03 0.10 3.55 5.97 2.58 8.29 4.06 3.33 3.57 Jun-03 1.82 16.64 26.39-7.15 12.99 9.51 7.16 8.81 Annual Report 2015 9

Performance overview Pension Service Performance Figures are calculated in accordance with Financial Services Council (FSC) standards. Total returns are calculated: using withdrawal prices appropriate for the month end, and taking into account management costs (other than member fees and issuer fees) of the relevant investment portfolio. No reduction is made to the unit price (or performance) to allow for tax you may pay as an investor, other than withholding tax paid on foreign income (if any). Investment returns shown are historical. Investment returns can go up and down. Past performance is not a reliable indicator of future performance. Future performance is not guaranteed. Investment Portfolio Start date One year returns to 30 June 2015 2014 2013 2012 2011 5 years com p aver. To 30 June 2015 10 years com p aver. To 30 June 2015 Since incept to 30 June 2015 % % % % % % pa % pa % pa Aberdeen Australian Equities Jun-02 8.64 10.70 17.72-6.10 6.52 7.21 6.33 7.69 Aberdeen Select Investment Jun-02 11.06 16.72 22.84 2.23 1.69 10.60 3.85 3.10 Actively Hedged International Equities Australian Fixed Interest Mar-96 4.69 5.18 2.42 11.72 5.29 5.82 5.31 5.80 Australian Shares May-96 6.09 17.76 25.07-6.69 10.48 10.00 7.84 9.73 Balanced Growth Apr-96 9.10 11.89 16.04 2.18 8.31 9.41 6.29 7.18 BlackRock Scientific Australian Jun-02 3.88 16.55 28.20-7.40 14.77 10.53 7.24 8.40 Equity BlackRock Scientific Diversified Feb-96 6.89 14.84 20.07-0.19 9.02 9.91 5.38 6.61 Growth BlackRock Scientific Diversified Feb-96 4.23 8.55 9.08 4.51 6.72 6.60 4.54 5.34 Stable BlackRock Scientific International Jul-97 28.71 19.44 32.23-0.44 0.82 15.33 4.71 3.60 Equity BlackRock Wholesale Australian May-00-0.72 17.17 18.69-6.59 6.27 6.51 6.45 7.00 Share BlackRock Wholesale Balanced Mar-96 7.39 13.72 17.45 1.05 5.64 8.89 6.28 6.25 BlackRock Wholesale Managed Feb-96 3.63 8.77 10.91-0.41 7.09 5.92 2.62 4.09 Income BT Sustainable Conservative Apr-96 5.69 5.69 6.13 4.34 4.98 5.01 4.98 5.78 BT Wholesale Active Balanced Mar-96 10.35 11.68 14.91-0.95 7.54 8.57 5.38 6.33 BT Wholesale Asian Share May-00 27.27 7.02 18.96-8.79 0.13 8.15 7.52 4.60 10 131 817

Investment Portfolio Start date One year returns to 30 June 2015 2014 2013 2012 2011 5 years com p aver. To 30 June 2015 10 years com p aver. To 30 June 2015 Since incept to 30 June 2015 % % % % % % pa % pa % pa BT Wholesale Balanced Returns Feb-96 9.76 10.84 12.99-0.47 6.91 7.90 4.98 5.51 BT Wholesale Core Australian Aug-97 8.79 17.97 24.31-7.98 10.70 10.20 8.02 8.20 Share BT Wholesale Core Hedged Jun-03 10.39 22.80 25.23-1.87 25.29 15.86 6.79 8.04 Global Share BT Wholesale Geared Imputation Mar-03 11.49 27.69 39.81-16.27 15.56 14.01 7.33 12.53 Share BT Wholesale International Share Jul-97 24.18 18.76 33.51-1.95 2.25 14.57 4.86 2.68 BT Wholesale Partner Australian Jun-03 4.26 20.29 19.40-8.23 9.42 8.50 5.45 7.84 Shares Value 1 BT Wholesale Smaller Jun-01 5.60 16.26 18.17-4.77 24.63 11.48 9.01 12.18 Companies Cash and Short-term securities Feb-96 1.74 1.58 2.20 3.48 3.84 2.56 3.58 3.87 Colonial First State Wholesale May-00 8.06 13.07 18.90-2.79 5.98 8.40 5.09 4.34 Diversified Colonial First State Wholesale Jul-97 5.06 16.94 27.53-8.73 9.07 9.30 7.16 9.09 Imputation Conservative Growth Feb-96 5.31 5.55 6.09 5.32 5.64 5.58 4.96 5.47 Diversified Growth Feb-96 8.81 10.37 13.04 4.19 7.49 8.74 6.14 6.92 Dynamic Growth May-96 10.06 14.00 19.39-0.06 8.92 10.27 6.46 7.52 International Fixed Interest Jul-97 5.85 5.56 2.51 9.32 6.77 5.98 5.80 6.14 International Shares Nov-96 23.97 19.17 32.36-1.32 1.64 14.42 5.27 4.30 Macquarie Wholesale Property Aug-98 16.97 11.63 21.16 10.06 1.29 12.02 1.17 4.88 Securities MLC Wholesale Horizon 4 Aug-98 9.37 13.05 16.20-0.65 8.48 9.14 5.63 5.78 Balanced Portfolio MLC Wholesale Horizon 5 Sep-98 10.78 14.83 19.44-2.10 8.98 10.15 5.71 5.66 Growth Portfolio MLC Wholesale Platinum Global Jun-01 18.84 20.18 33.78-7.98-3.41 11.17 8.53 7.36 MLC Wholesale Property Aug-98 17.65 8.64 21.89 8.90 5.01 12.24 2.36 5.59 Securities Moderate Growth Feb-96 7.08 8.16 9.00 5.07 6.58 7.17 5.55 6.22 Platinum International Sep-04 19.16 17.73 34.22-7.89-8.62 9.65 8.16 7.58 Property Feb-96 18.27 9.59 21.96 10.22 5.05 12.85 2.23 7.00 Schroder Credit Securities May-03 0.82 4.30 6.74 3.21 9.15 4.80 4.17 4.41 Wholesale Class Schroder Wholesale Australian Equity May-03 2.06 16.91 27.33-6.24 14.02 10.19 8.31 10.50 Annual Report 2015 11

Investment Portfolios Westpac Classic Strategies Investment objective Dynamic Growth Aims to maximise capital growth over the long term. The minimum suggested time frame for investment is at least five years. Invests either directly or indirectly through collective investments (such as life policies or unit trusts) so that the underlying assets of the investment portfolio consist of a diversified portfolio of predominantly growth assets, including Australian, international shares and property, to provide the potential for long-term capital growth. Balanced Growth Aims to provide a high level of capital growth over the long term from a balanced portfolio of assets. The minimum suggested time frame for investment is at least five years. Invests either directly or indirectly through collective investments (such as life policies or unit trusts) so that the underlying assets of the investment portfolio consist of a diversified portfolio of mainly growth assets (Australian and international shares and property) and to provide for the potential for long term. Strategic range % Australian shares 35 55 International shares 17 37 Property securities 0 10 Australian fixed interest 0 20 International fixed interest 0 20 Cash 0 10 Alternatives 0 20 Australian shares 28 48 International shares 12 32 Property securities 0 10 Australian fixed interest 5 32 International fixed interest 0 20 Cash 0 10 Alternatives 0 20 Diversified Growth Moderate Growth Investment objective Aims to provide capital growth over the medium to long term from a portfolio that is well diversified among the major asset classes. The minimum suggested time frame for investment is at least three years. Aims to provide a moderate level of capital growth over the medium term and a moderate level of interest earnings. The minimum suggested time frame for investment is at least three years. Investing either directly in assets or indirectly through collective investments (such as life policies or unit trusts) so that the underlying assets: consist of a diversified portfolio across the major investment sectors have a significant emphasis on fixed interest and Australian and international shares. Invests either directly or indirectly through collective investments (such as life policies or unit trusts) so that the underlying assets of the Investment Option consist mainly of interest bearing investments (such as Australian and international bonds, debt securities, bank-backed bills and cash on deposit) and a moderate holding of growth assets (such as shares and property). Strategic range % Australian shares 28 48 International shares 12 32 Property securities 0 10 Australian fixed interest 5 32 International fixed interest 0 20 Cash 0 10 Alternatives 0 20 Australian shares 5 25 International shares 0 18 Property securities 0 10 Australian fixed interest 20 55 International fixed interest 5 35 Cash 0 40 Alternatives 0 20 1. BT has the right to change the investment strategy and benchmark for the without prior notice. 12 131 817

Conservative Growth Investment objective Aims to provide a conservative level of capital growth over the medium term and a relatively high level of interest earnings. The minimum suggested time frame for investment is at least three years. Investing either directly in assets or indirectly through collective investments (such as life policies or unit trusts) so that: most of the underlying assets provide income for reinvestment. Such assets include bank-backed bills and cash on deposit part of the underlying assets of the investment portfolio includes growth assets, such as shares and property, to provide potential for higher returns. Strategic range % Australian shares 5 15 International shares 0 10 Property securities 0 20 Australian fixed interest 20 50 International fixed interest 0 20 Cash 30 50 Alternatives 0 20 1. BT has the right to change the investment strategy and benchmark for the without prior notice. Annual Report 2015 13

Investment Portfolios Westpac Sector s Investment objective Australian Shares Aims to provide access to capital growth and dividends from investment in Australian shares. Investing either directly in assets or indirectly through collective investments (such as life policies or unit trusts) so that the underlying assets: consists of a selection of shares of companies that offer potential returns from long term growth and company dividends provide exposure to both industrial and resource shares with a focus on those companies perceived to have the best potential for long term returns. International Shares Aims to provide medium to longer term capital growth from investment in a selection of overseas share markets. Investing either directly in assets or indirectly through collective investments (such as life policies or unit trusts) so that the underlying assets of the investment portfolio consist of shares in a range of leading international companies. Strategic range % Australian shares 90 100 Cash 0 10 International shares 90 100 Cash 0 10 Property Australian Fixed Interest Investment objective Aims to provide investors with a diversified portfolio of property investments offering potential for long term capital growth. Investing either directly in assets or indirectly through collective investments (such as life policies or unit trusts) so that the underlying assets of the investment portfolio provide an exposure to various types of properties throughout Australia such as office blocks, shopping centres and industrial buildings. Aims to provide competitive returns, reflecting those available in the Australian fixed interest market. Investing either directly in assets or indirectly through collective investments (such as life policies or unit trusts) so that the underlying assets of the investment portfolio: consist of securities or instruments that include those issued by the Commonwealth Government, Australian State Governments or major/state trading banks and other corporate bodies may include investments in other interest bearing securities such as corporate bonds, mortgages, corporate loans or infrastructure bonds. Strategic range % Property 90 100 Income-only investments 0 10 Australian fixed interest 90 100 Cash 0 10 1. BT has the right to change the investment strategy and benchmark for the without prior notice. 14 131 817

Investment objective International Fixed Interest The aims to provide a return (before fees, costs and taxes) that exceeds the JP Morgan GBI Global Traded Index, hedged in Australian dollars, over the medium term. Investing either directly in assets or indirectly through collective investments (such as life policies or unit trusts) so that the underlying assets of the investment portfolio consist of short term money market securities, fixed term debt securities and derivative contracts intended to replicate a fully hedged exposure to international fixed interest markets. Cash and Short-term Securities Aims to provide a relatively secure investment in cash and money market securities. To reduce short term capital fluctuations. Investing either directly in assets or indirectly through collective investments (such as life policies or unit trusts) so that the underlying assets of the investment portfolio consist of short term money market investments such as bank deposits, bank accepted bills and certificates of deposit. Strategic range % International fixed interest 90 100 Cash 0 10 Neutral position Cash and money market securities 100% 1. BT has the right to change the investment strategy and benchmark for the without prior notice. Annual Report 2015 15

Investment Portfolios Other Managers Aberdeen Select Investment Actively Hedged International Equities Aberdeen International Equity Investment objective The Investment objective of the is to provide investors with high capital growth over the medium to long term by seeking exposure to companies listed on securities exchanges around the world. The suggested investment timeframe is five years. Our global equities team, located in Edinburgh, Scotland, draws on the research capabilities of our regional investment teams located worldwide. Through their own proprietary research each regional team creates a concentrated regional model portfolio of best ideas. This is based on a rigorous appraisal of each company s amentals and relative valuation. The aggregate of the regional models forms the global buy list. The global buy list is then used by the global equity team to undertake further comparative analysis and construct a final concentrated portfolio of truly diversified businesses. We see risk in terms of investing in a poor quality company, or overpaying for a good one, and do not view risk in benchmark relative terms. We therefore downplay benchmarks in portfolio construction since these provide little indication of future performance. We never invest in a company without first meeting the management. The investment objective is to provide investors with high capital growth over the medium to long term by seeking exposure to companies listed on securities exchanges around the world. The minimum suggested timeframe for holding investments in the is five years. Our global equities team, located in Edinburgh, Scotland, draws on the research capabilities of our regional investment teams located worldwide. Through their own proprietary research each regional team creates a concentrated regional model portfolio of best ideas. This is based on a rigorous appraisal of each company s amentals and relative valuation. The aggregate of the regional models forms the global buy list. The global buy list is then used by the global equity team to undertake further comparative analysis and construct a final concentrated portfolio of truly diversified businesses. We see risk in terms of investing in a poor quality company, or overpaying for a good one, and do not view risk in benchmark relative terms. We therefore downplay benchmarks in portfolio construction since these provide little indication of future performance. We never invest in a company without first meeting the management. Strategic range % International shares 90 100 Cash 0 10 Australian shares 90 100 Cash 0 10 1. BT has the right to change the investment strategy and benchmark for the without prior notice. 16 131 817

Investment objective Aberdeen Australian Equities The investment objective of the is to outperform the benchmark, the S&P/ ASX 200 Accumulation Index, after fees, over rolling three year periods. The minimum suggested timeframe for holding investments in the is five years. BlackRock Scientific Australian Equity The aims to achieve superior investment performance through providing returns that exceed those of the S&P/ASX 300 Accumulation Index (the Index ) by 2.20% p.a., after fees, over rolling 3-year periods, while maintaining a similar level of investment risk to the Index. The minimum suggested timeframe for holding investments in the is five years. Our equity managers seek to identify and invest in good quality Australian listed securities through first hand company visits. Quality is chiefly an evaluation of a company s management, balance sheet and business model. Only those companies which pass our rigorous quality screen are assessed for value. We see risk in terms of investing in a poor quality company, or overpaying for a good one, and do not view risk in benchmark relative terms. We therefore downplay benchmarks in portfolio construction since these provide little indication of future performance. We are comfortable not holding companies if they do not satisfy our disciplined quality and valuation criteria, regardless of their benchmark weight. Our active Australian equity strategy is designed to be highly diversified, providing broad exposure to the Australian equity market. Rather than making large and inherently risky investments in a few individual stocks, smaller investments are made across many individual stocks. This process diversifies active risk across a broad spectrum of stocks in a variety of industries and is designed to provide more consistent active returns over time. Investment decisions are made through a disciplined investment process which we refer to as the Alpha Tilts process. Strategic range % Australian shares 90 100 Cash 0 10 The s assets are generally exposed 100% to the Australian equity market. Australian shares 90 100 Cash 0 10 1. BT has the right to change the investment strategy and benchmark for the without prior notice. Annual Report 2015 17

Investment Portfolios Other Managers - cont d Investment objective BlackRock Scientific Diversified Stable The aims to achieve superior investment performance through providing returns that exceed those of the neutral portfolio benchmark by 0.45% p.a., after fees, over rolling 3-year periods. The neutral portfolio benchmark comprises a portfolio of published indexes, approximately 70% of which represent interest bearing assets and 30% of which represent growth assets. The minimum suggested timeframe for holding investments in the is five years. BlackRock Scientific Diversified Growth The aims to achieve superior investment performance through providing returns that exceed those of the neutral portfolio benchmark by 1.30% p.a., after fees, over rolling 3-year periods. The neutral portfolio benchmark comprises a portfolio of published indexes, approximately 30% of which represent interest bearing assets and 70% of which represent growth assets. The minimum suggested timeframe for holding investments in the is five years. The invests in various asset classes by investing in other managed investment schemes ( Underlying s ), including those managed by us or other entities within the BlackRock Group. The primarily invests via actively managed sector s, each of which utilises a disciplined active approach to investment management that aims to add value and control active risk. The invests in various asset classes by investing in other managed investment schemes ( Underlying s ), including those managed by us or other entities within the BlackRock Group. The primarily invests via actively managed sector s, each of which utilises a disciplined active approach to investment management that aims to add value and control active risk. Strategic range % Australian shares 10 25 Australian fixed interest 15 35 International shares 0 15 International fixed interest 5 25 Emerging market shares 0 10 Global Listed Infrastructure 0 10 Global Real Estate 0 10 Cash 20-40 Australian shares 30 50 Australian fixed interest 0 25 International shares 10 35 International fixed interest 0 20 Emerging market shares 0 10 Global Listed Infrastructure 0 10 Global Real Estate 0 10 Cash 0-15 1. BT has the right to change the investment strategy and benchmark for the without prior notice. 18 131 817

BlackRock Scientific International Equity BlackRock Wholesale Managed Income Investment objective The aims to outperform the MSCI World ex-australia Net TR Index (unhedged in AUD) (the Index ) by 2% p.a. over rolling 3-year periods (net of fees), while maintaining a similar level of investment risk to the Index. The minimum suggested timeframe for holding investments in the is five years. The s research driven investment process utilises a combination of active stock selection strategies across international developed markets that aim for the best trade-off between returns, risk and costs. The investment ideas blend local investment insights, cross-border insights, macro-economic insights and short-term drivers of stock returns. The primary aim of the is to provide investors with a regular monthly income and some capital growth. We aim to achieve this goal by outperforming the benchmark asset allocation returns over rolling three-year periods. The minimum suggested timeframe for holding investments in the is three years. To achieve its objective the invests a minimum of 65% of its portfolio in cash and fixed income as well as up to 35% in growth assets. The cash and fixed income portfolios are managed with the aim of providing an income stream through the year while aiming to maintain the portfolio s capital value. This is achieved by investing in a variety of Australian and internationally sourced interest bearing instruments for example, government, corporate fixed income securities and convertible notes. Strategic range % The s assets are generally exposed 100% to the International equity market. International shares 90 100 Cash 0 10 Australian shares 10 25 Australian fixed interest 20 40 International shares 0 5 Infrastructure Shares 0 10 Listed Property 0 25 Floating Rates Notes 25 45 Cash 0-20 Convertible notes 0-10 1. BT has the right to change the investment strategy and benchmark for the without prior notice. Annual Report 2015 19

Investment Portfolios Other Managers - cont d BlackRock Wholesale Balanced BlackRock Wholesale Australian Share Investment objective and timeframe Investment strategy 1 The investment objective of the aims to provide investors with the highest possible returns consistent with a balanced investment strategy encompassing: a bias toward Australian assets; and active asset allocation, security selection and risk management. The suggested investment timeframe is five years. The investment strategy of the is to provide investors with a diversified exposure to the best investment teams and strategies that the BlackRock Group has globally within the context of an Australian based balanced investment portfolio. The strategy is built around two steps: establishing the most appropriate strategic benchmark subject to the growth/income splits and market risk exposures of the range of Australian balanced s; and enhancing the returns of the relative to the strategic benchmark to the maximum extent possible by utilising investment teams, strategies and techniques from the BlackRock Group s resources around the globe, subject to a risk budgeting framework. The has two aims: to achieve capital growth over the long-term through investment in Australian shares and other securities and to provide investors with some tax-effective income through the distribution of franking credits. Overall, we aim to achieve this goal by outperforming the S&P/ASX 300 Accumulation Index over rolling five year periods. The minimum suggested timeframe for holding investments in the is five years. The aims to outperform the Benchmark by gaining exposure to long and short positions across the Australian equity market. At the same time the also gains exposure to an Australian equity index strategy, which aims to provide the returns of the Benchmark. Unlike long only investments, which have just one source of return; that is buying stocks that are expected to rise in value, long/short strategies have two sources of prospective return. A that employs a long/short investment strategy can generate returns by owning stocks that the manager expects will rise in value (long). At the same time the can, sell (short) stocks that are expected to decrease in value. In implementing the index strategy BlackRock takes a full replication approach which means that wherever practical, we seek to hold every stock in the S&P/ASX 300 Accumulation Index, but will trade in less liquid stocks over time to minimize transaction costs. Strategic range % Australian shares 32 Australian fixed income 14 International shares 30 International fixed income 8 Australian Property 6 International Property 2 Cash 8 The does not have a standard strategic asset allocation, but aims to invests in two underlying BlackRock s that provide it with access to its long/short and index strategies. Both underlyng s look to be fully exposed to the Australian equity market. BlackRock Equitised Long Short : 45 BlackRock Wholesale Indexed Australasian Equity : 55 1. BT has the right to change the investment strategy and benchmark for the without prior notice. 20 131 817

Investment objective BT Wholesale Balanced Returns (closed) The aims to provide a return (before fees, costs and taxes) that exceeds the s benchmark over the medium to long term. The minimum suggested time frame for investment is five years. BT Wholesale International Share (closed) The aims to provide a return (before fees, costs and taxes) that exceeds the MSCI World ex Australia (Standard) Index (Net Dividends) in AUD over the medium to long term. The minimum suggested time frame for investment is five years. This is designed for investors who want the potential for long term capital growth and income, diversification across a broad range of asset classes and are prepared to accept some variability of returns. The invests in Australian and international shares, Australian and international property securities, Australian and international fixed interest, cash and alternative investments. The may also use derivatives. The has a higher weighting towards growth assets than defensive assets. This is designed for investors who want the potential for long term capital growth, diversification across a broad range of companies, industries and countries and are prepared to accept higher variability of returns. Whilst the can invest in any international sharemarket that offers attractive opportunities, most investments will be located in the United States, Europe and Japan. The may also hold cash and may use derivatives. Strategic range % Australian shares 23 43 International shares 10 30 Australian fixed interest 5 32 International fixed interest 0 20 Australian property 0 10 Global property 0 10 Alternative investments 0 20 Cash 0 20 International shares 80 100 Cash 0 20 BT Wholesale Asian Share BT Wholesale Partner Australian Shares Value 1 Investment objective The aims to provide a return (before fees, costs and taxes) that exceeds the MSCI AC Asia ex Japan (Standard) Index (Net Dividends) in AUD over the medium to long term. The minimum suggested time frame for investment is five years. To provide a return (before fees, and taxes) that exceeds the benchmark over the medium to long term. The minimum suggest time frame for investment is five years. This is designed for investors who want the potential for long term capital growth, diversification across a broad range of Asian companies and industries and are prepared to accept high variability of returns. The can invest in any sharemarket in the Asian region, excluding Japan and Australia, that offers attractive opportunities including Korea, Hong Kong, Taiwan, Singapore, China, Malaysia, Thailand, Indonesia, the Philippines, India and Vietnam. The may also hold cash and may use derivatives. The is actively managed and invests primarily in Australian shares. The is managed with a value style of investing. Strategic range % International shares 80 100 Cash 0 20 The s assets are generally exposed 100% to the Australian equity market. Australian shares 90 100 Cash 0 10 Annual Report 2015 21