MERCER MULTI-MANAGER FUNDS QUARTERLY REPORT THREE MONTHS TO 31 December 2015

MERCER MULTI-MANAGER FUNDS QUARTERLY REPORT THREE MONTHS TO 1 December 2015 This Report is issued by Mercer Investments (Australia) Limited ABN 66 008 612 97 (MIAL), Australian Financial Services Licence #24485 as the Responsible Entity of the Mercer Multi-Manager Funds (MMF). MERCER and Mercer Smartpath are Australian registered trademarks of Mercer (Australia) Pty Ltd, ABN 2 005 15 917.

MERCER MULTI MANAGER FUNDS QUARTERLY REPORT CONTENTS ECONOMY & MARKETS 1-2 SECTORS -2 SHARES Australian Shares -4 Australian Shares Socially Responsible 5-6 Australian Shares Tax Exempt Investors 7-8 Australian Small Companies 9 International Shares 10-1 Global Small Companies 14 Global Shares Low Volatility 15 Emerging Markets 16 REAL ASSETS Global Listed Property 17 Australian Direct Property 18 Global Listed Infrastructure 19 Global Unlisted Infrastructure 20 Global Natural Resources 21 ALTERNATIVES Diversified Alternatives 22 FIXED INTEREST Australian Sovereign Bonds 2 Global Sovereign Bonds 24 Australian Inflation-Plus 25 Global Credit 26 Emerging Markets Debt 27 CASH Cash & Term Deposits 28 OTHER SECTOR FUNDS 29 Mercer Shares 29 DIVERSIFED FUNDS 0- Mercer Growth, Growth Plus 0 Mercer High Growth 1 Mercer Income Plus, Moderate Growth 2 Mercer Conservative Growth, Defensive ECONOMY & MARKETS Following a solid December quarter investment markets deteriorated sharply again in early 2016, amid renewed concerns over the complexity of the policy challenges facing China, further declines in commodity prices (to new multi-year lows), and a softening of growth momentum in the US. We continue to expect moderate economic growth across much of the developed world in 2016 (including in Australia), underpinned largely by household demand and the services sectors. Similarly, we believe some of the recent weakness in US growth it at least partly attributable to temporary factors, including the unusually mild start to winter. In the meantime, however, it is becoming increasingly difficult to identify the catalyst for an early turnaround in growth across much of Emerging Markets, with a growing risk that a prolonged period of weak growth triggers some kind of corporate or sovereign credit event, and more intense impact on Developed Markets. Given the growing maturity of the US expansion, moreover, in our view US corporate earnings growth will remain under pressure. The prospect of further downgrades to the US and EM earnings outlooks suggests continued caution is warranted towards valuations in these markets, particularly given the bias towards higher interest rates in the US and uncertainties over the extent of further capital outflows from EM. After much apprehension, markets appeared to comfortably absorb Fed lift-off in mid-december, buttressed by the Fed continuing to reaffirm the prospect of a relatively shallow US tightening profile. Nevertheless, the modest revival in risk appetite in Q4 failed to mask a year of generally lacklustre returns from most major global and Australian equity and bond benchmarks, especially after abstracting from the effects of the Australian dollar depreciation. The soggy performances reflected the softest global growth outcome since 2010 (which contributed also to the relentless decline in oil and other commodity prices over the course of the year), against the backdrop of elevated valuations and increasing monetary policy divergence. The steady weakening in returns has been reflected also in a rising correlation between bonds and equities, which at the portfolio level has tended to amplify rising volatility in many financial markets since the end of US QE. EQUITIES Whilst allowing for the fall in the AUD, MSCI World delivered a total return of just 2.7% in 2015, with few standout performers. Japan and Germany both enjoyed total returns of close to 10%, but the US managed a return of just 1.4% and the UK suffered a decline of 1.%. Despite the support from a relatively high dividend yield, the ASX 00 was firmly in the middle of the field, with a total return of 2.8%. However, Australian small caps returned 10.2% for the year, largely driven by the resilience of the domestic economy, although most of the return was concentrated in the final quarter of the year. In unhedged AUD terms (and largely reflecting a 10.8% fall in AUD/USD over the course of the year), the MSCI World ex-australia returned a more respectable 11.8%. MERCER SMARTPATH FUNDS 4-8 CLOSED FUNDS 9 Mercer Australian Listed Property 9 IMPORTANT NOTES 40 1

FINANCIAL MARKET RETURNS TO 1 December 2015 QUARTER ENDING DECEMBER 2015 NOTE: Past performance is not a reliable indicator of future performance. Performance shown only for asset classes that are applicable to sector MMFs benchmarked against a single index. # Fully hedged return ^ Unhedged return FIXED INTEREST In fixed interest markets, longer-dated government bond yields in most developed economies ended 2015 a few basis points higher than at the beginning of the year (Japan was an exception), although the rises masked a sharp divergence between real yields and inflation breakevens (which fell sharply). The 10-year Australian Government bond yield rose from 2.81% to 2.88%, due entirely to a modest rise in real yields. With relatively modest rises in yields, nominal government bonds were generally the best performing of the major fixed income sectors, while Australia also tended to outperform global indexes. In contrast to Q, the final quarter of 2015 was marked by a growing divergence between risk appetite and commodity prices, with the prices of many energy and other industrial commodities continuing to fall to new cyclical lows. The price of Brent crude slumped from $US48.04/bbl to $US0.71/bbl over the course of the year, while iron ore fell from $US70/Mt to just $US40/Mt. Subsequently, however, with renewed fears of renminbi depreciation, the more recent revival in risk appetite evaporated quickly in early January, and equity and other risk asset markets joined commodity prices (and the AUD) in setting new multi-year lows. Indeed, rolling quarterly returns were negative for most major equity markets by mid- January, as were rolling one-year returns (Germany and Japan remained the major exceptions). At 0.6960 in mid-january, AUD/USD was the lowest since early 2009 (as was the AUD trade weighted index). However, even with the further fall in the AUD, EM equities fell a further 10.4% in AUD terms in the three months to January, while EMD fell a further 8.4%. Again, however, government bonds (both global and Australian) have barely managed to produce an excess return over cash, while other growth fixed income sectors have continued to deliver negative returns. In our view valuations do not yet offer a sufficient buffer against these downside risks and we believe it is still too early to adopt a more positive view towards equities and other risk assets. Accordingly, we are maintaining our neutral stance between growth and defensive assets. Moreover, we also advocate investors seek ways to inexpensively hedge downside risks to growth assets. We believe this can still be best achieved in the current environment by continuing to effectively differentiate between Australian and international asset classes. Within equities, we continue to prefer unhedged developed markets, where our expectation of further AUD depreciation provides a cushion against the impact of further declines in global risk appetite. In addition, without a particularly compelling valuation story and with lingering sensitivity to the risk of further policy mis-steps in China, we continue to recommend clients remain underweight Australian equities. In contrast, we believe Australia offers more attractively priced fixed income assets relative to developed markets, in part reflecting the possibility of further monetary easing in Australia, or at least a lengthy period before the RBA begins to consider the need for interest rate increases. Within the more defensive asset classes, we remain moderately overweight Australian cash relative to both Australian and global government bonds, although we would take a more neutral view in the event domestic 10- year yields increased towards.0%. We also believe A-REITs offer the best defensive yield strategy, and continue to advocate a neutral rating. 2

MERCER MULTI MANAGER FUNDS QUARTERLY REPORT SHARES Refer to page 40 Important notes about this Report - for further information on the calculation of returns AUSTRALIAN SHARES The Australian share market rebounded strongly over the quarter, due to rises in international markets and stronger than expected local economic conditions. The banking sector led the way boosted by high dividend ratios while the consumer discretionary sector benefited from strong employment growth and improved consumer confidence. Reflecting ongoing commodity price falls, the materials and energy sectors continued to fall. AUSTRALIAN SHARES FUNDS Benchmark weight by sector (%) S&P/ASX 00 Accumulation Index Benchmark sector returns for the three months to 1 December 2015(%) S&P/ASX 00 Accumulation Index ** In this Quarterly Report, Australian Shares Funds refers to: Mercer Australian Shares Fund (the Core Fund ) Mercer Australian Shares Plus Fund (the Plus Fund ) Only the sector exposure differs between the Funds. Benchmark weights etc. apply to both Funds. Sector Exposure Overweight/Underweight positions as at 1 December 2015 (%) Mercer Australian Shares Fund Mercer Australian Shares Plus Fund

QUARTER ENDING DECEMBER 2015 SHARES NOTE: Past performance is not a reliable indicator of future performance AUSTRALIAN SHARES FUNDS** AUSTRALIAN SHARES Top 10 Australian share holdings Listed (right) are the 10 largest Australian share holdings in aggregate within the Australian shares funds at quarter end compared to their respective benchmarks. Mercer Australian Shares Fund % of Fund % of B mark Mercer Australian Shares Plus Fund % of Fund % of B mark Commonwealth Bank 10.0 10.4 Commonwealth Bank 9.8 10.4 Westpac Banking Corporation 7.5 8.0 Westpac Banking Corporation 7.2 8.0 ANZ Banking Group 6. 5.8 ANZ Banking Group 6.5 5.8 National Australia Bank 6.0 5.7 National Australia Bank 6.2 5.7 Telstra Corporation 4.9 4.9 Telstra Corporation 4.6 4.9 CSL.2.5 CSL.0.5 BHP Billiton 2.8 4.1 Macquarie Group 2.4 2.0 Wesfarmers 2.4. QBE Insurance Group 2.4 1.2 Macquarie Group 2.4 2.0 BHP Billiton 1.8 4.1 QBE Insurance Group 2.0 1.2 Woolworths 1.8 2.2 Investment performance The Australian Shares fund outperformed benchmark substantially over the quarter due mainly to a large overweight position in the consumer discretionary sector. Mercer Australian Shares Fund Total Returns Before fees : 7.5 4.2 10.5 7. Benchmark* Return : 6.5 2.8 9.0 6.7 Excess Return Before fees : +1.0 +1.4 +1.5 +0.6 Mercer Australian Shares Plus Fund Total Returns Before fees : 8.1 5. 10.6 7.2 Benchmark* Return : 6.5 2.8 9.0 6.7 Excess Return Before fees : +1.6 +2.5 +1.6 +0.5 Total Returns (%) After Fees Mercer Australian Shares Fund 7.2.2 9.4 6.2 Mercer Australian Shares Plus Fund 7.7.8 9. 5.9 * S&P/ASX 00 Accumulation Index, which is the benchmark used for the fund. Alternate benchmarks may apply to managers individually Manager performance Fidelity, Goldman Sachs and Wavestone were all strong contributors to performance over the December quarter. Fidelity s outperformance was largely driven by stock selection, in particular overweight holdings in Blackmores, Bellamy s Australia and A2 Milk. Goldman Sachs outperformance was largely due to an underweight holding in BHP and overweight holdings in Crown Resorts, Caltex and Seek while Wavestone benefitted from overweight holdings in ooh! Media and Sirtex Medical. Proportion of assets managed at quarter end Managers Core Plus Fund Fund Ausbil Dexia 12. 17.8 Fidelity 2.2.2 Goldman Sachs 9.8 14.2 Greencape 7.9 11.4 JCP Investment Partners 17.4 0.0 Nikko Asset Management 11.1 16.1 Plato 17.0 0.0 Vinva 12.6 2.2 Wavestone 9.7 14.1 Manager Returns Relative to Fund Benchmark* (+ or - %) - Before fees Managers Ausbil Dexia +0.2 +0.1 +2.5 +1.5 Fidelity +8.1 n/a n/a n/a Goldman Sachs +5.1 +4.1 n/a n/a Greencape -0.4 n/a n/a n/a JCP Investment Partners +0.7 +1.2 +0.9 +0.8 Nikko Asset Management -1. -1.6 +1.7 +1.0 Plato -0.5 n/a n/a n/a Vinva +1.1 +2.6 +1.5 n/a Wavestone +2.8 n/a n/a n/a * S&P/ASX 00 Accumulation Index, which is the benchmark used for the fund. Alternate benchmarks may apply to managers individually. 4

MERCER MULTI MANAGER FUNDS QUARTERLY REPORT SHARES NOTE: Past performance is not a reliable indicator of future performance AUSTRALIAN SHARES SOCIALLY RESPONSIBLE The Australian share market rebounded strongly over the quarter, due to rises in international markets and stronger than expected local economic conditions. The banking sector led the way boosted by high dividend ratios while the consumer discretionary sector benefited from strong employment growth and improved consumer confidence. Reflecting ongoing commodity price falls, the materials and energy sectors continued to fall. MERCER SOCIALLY RESPONSIBLE AUSTRALIAN SHARES FUND Benchmark weights by sector (%) S&P/ASX 00 Accumulation Index Sector Exposure Overweight/Underweight positions as at 1 December 2015(%) Benchmark sector returns for the three months to 1 December 2015 (%) S&P/ASX 00 Accumulation Index 5

QUARTERLY ENDING DECEMBER 2015 SHARES NOTE: Past performance is not a reliable indicator of future performance AUSTRALIAN SHARES SOCIALLY RESPONSIBLE MERCER SOCIALLY RESPONSIBLE AUSTRALIAN SHARES FUNDS Top 10 Australian share holdings Listed (right) are the 10 largest Australian share holdings in aggregate within the Mercer Socially Responsible Australian Shares Fund at quarter end compared to their respective benchmarks. Stock % of Fund % of Benchmark Westpac Banking Corporation 9.1 8.0 Commonwealth Bank 8.8 10.4 ANZ Banking Group 6.5 5.8 National Australia Bank 4.7 5.7 Telstra Corporation 4.5 4.9 CSL.4.5 Macquarie Group. 2.0 Qantas Airways 2.5 0.6 BHP Billiton 2. 4.1 Suncorp Group 2.1 1.1 Investment performance The Australian Shares fund outperformed its benchmark substantially over the quarter due mainly to a large overweight position in the consumer discretionary sector. Total & Excess Returns (%) Total Returns Before fees : 8.7 9.5 12.9 10. Benchmark* Return : 6.5 2.8 9.0 6.7 Excess Return Before fees : +2.2 +6.7 +.9 +.6 *S&P/ASX 00 Accumulation Index Total Returns After fees : 8.4 8.5 11.7 9.0 Manager performance All managers outperformed the benchmark over the December quarter, benefiting from underweight exposure to the underperforming BHP. Perpetual s outperformance was also aided by its overweight exposures to Freedom Foods Group and A2 Milk while Acadian benefitted from its overweight exposures to NetComm Wireless and SmartGroup. Proportion of assets managed at quarter end Manager % BT 41.7 Acadian 5.6 Perpetual 22.7 Manager Returns Relative to Fund Benchmark* (+ or - %) - Before fees Managers BT +1. +.9 +.0 +1.6 Acadian +0.7 n/a n/a n/a Perpetual +5.5 +1.8 +8.1 +9.8 *S&P/ASX 00 Accumulation Index, which is the benchmark used for the Fund. Alternate benchmarks may apply to managers individually 6

MERCER MULTI MANAGER FUNDS QUARTERLY REPORT SHARES NOTE: Past performance is not a reliable indicator of future performance AUSTRALIAN SHARES TAX EXEMPT INVESTORS The Australian share market rebounded strongly over the quarter, due to rises in international markets and stronger than expected local economic conditions. The banking sector led the way boosted by high dividend ratios while the consumer discretionary sector benefited from strong employment growth and improved consumer confidence. Reflecting ongoing commodity price falls, the materials and energy sectors continued to fall. MERCER AUSTRALIAN SHARES FUND FOR TAX EXEMPT INVESTORS Benchmark weights by sector (%) S&P/ASX 00 Accumulation Index : Grossed up for franking credits Sector Exposure Overweight/Underweight positions as at 1 December 2015 (%) Benchmark sector returns for the three months to 1 December 2015 (%) S&P/ASX 00 Accumulation Index: Grossed up for Franking Credits 7

QUARTERLY ENDING DECEMBER 2015 SHARES NOTE: Past performance is not a reliable indicator of future performance AUSTRALIAN SHARES TAX EXEMPT INVESTORS MERCER AUSTRALIAN SHARES FUND FOR TAX EXEMPT INVESTORS Top 10 Australian share holdings Listed (right) are the 10 largest Australian share holdings in aggregate within the Mercer Australian Shares Tax Exempt Fund at quarter end compared to their respective benchmarks. Stock % of Fund % of Benchmark Commonwealth Bank 10. 10.4 Westpac Banking Corporation 7.2 8.0 ANZ Banking Group 5.2 5.8 Telstra Corporation 4.8 4.9 National Australia Bank 4.4 5.7 BHP Billiton 4.0 4.1 Wesfarmers 2.9. CSL 2.9.5 Macquarie Group 2.9 2.0 Transurban Group 2.4 1.5 Investment performance Over the quarter the Australian Shares for Tax Exempt Investors Fund outperformed with all managers contributing positively. JCP s outperformance was largely due to its holding in Link Administration which it has held since pre-ipo as well as PSC Insurance Group which it purchased at IPO during the quarter. An overweight exposure to Metcash Trading was also a positive contributor. Macquarie s underweight exposure to BHP and overweight holdings in Seek, Metcash and Aristocrat Leisure were all key contributors to outperformance over the December quarter. Total & Excess Returns (%) Total Returns Before fees : 7.8 6.2 n/a n/a Benchmark* Return : 6.9 4.2 n/a n/a Excess Return Before fees : +0.9 +2.0 n/a n/a *S&P/ASX 00 Accumulation Index: Grossed up for franking credits. Total Returns After fees : 7.7 5.1 n/a n/a Manager performance The Australian Shares fund outperformed benchmark substantially over the quarter due mainly to a large overweight position in the consumer discretionary sector. Proportion of assets managed at quarter end Manager % Macquarie 50.0 Plato 0.0 JCP 20.0 Manager Returns Relative to Fund Benchmark* (+ or - %) - Before fees Managers Macquarie +0.7 +0.9 n/a n/a Plato +0.2 +2.2 n/a n/a JCP +2.5 +4.5 n/a n/a *S&P/ASX 00 Accumulation Index: Grossed up for franking credits. 8

MERCER MULTI MANAGER FUNDS QUARTERLY REPORT SHARES NOTE: Past performance is not a reliable indicator of future performance AUSTRALIAN SHARES SMALL COMPANIES Small company shares enjoyed a very strong quarter outperforming the broader market although remains a significant underperformer over the past 5 years. Australian small vs large company performance MERCER AUSTRALIAN SMALL COMPANIES FUND Investment performance The fund underperformed the benchmark over the quarter with underperformance driven by manager stock selection decisions as outlined below. Total & Excess Returns (%) Total Returns Before fees : 9.0 1.1 4.6 4. Benchmark* Return : 11. 10.2 1.7-2.5 Excess Return Before fees : -2. +2.9 +2.9 +6.8 * S&P/ASX Small Ordinaries Accumulation Index. Total Returns After fees : 8.7 11.8.7.4 Manager performance Stock selection was the key driver to IFM s outperformance over the quarter, in particular its overweight holdings in Blackmores and APN Outdoor. Legg Mason was the key contributor to underperformance, largely driven by overweight holdings in Slater & Gordon and SMS Management. Perennial s underperformance was driven in part by its exposure to the Energy sector including Sundance Energy and Austex Oil. Proportion of assets managed at quarter end Manager % Avoca 19.5 IFM 1.6 Legg Mason 24.4 Perennial 24.5 Manager Returns Relative to Fund Benchmark* (+ or - %) - Before fees Managers Avoca -0.8 +.8 n/a n/a IFM +2.7 +14.1 n/a n/a Legg Mason -8. -12.1 n/a n/a Perennial -.5 +4.1 +0. +6. * S&P/ASX Small Ordinaries Accumulation Index, which is the benchmark used for the fund. 9

QUARTERLY ENDING DECEMBER 2015 SHARES NOTE: Past performance is not a reliable indicator of future performance INTERNATIONAL SHARES Global equity markets rallied over the quarter as investors became less concerned about an imminent rise in in US interest rate. Stronger conditions in Europe assisted market sentiment. At the sector level IT stocks performed well with energy stocks suffering the largest falls. INTERNATIONAL SHARES FUNDS** Benchmark weights by sector (%) MSCI World Index (ex Australia) - in $A with net dividends reinvested On an unhedged basis returns were more modest with the Australian dollar s rise largely offsetting the rise in the underlying markets. Benchmark sector returns for the three months to 1 December 2015 (%) MSCI World Index (ex Australia) - in $A with net dividends reinvested ** In this Quarterly Report, International Shares Funds refers to: Mercer International Shares Fund Mercer Hedged International Shares Fund (the Core Funds ) Mercer International Shares Plus Fund Mercer Hedged International Shares Plus Fund (the Plus Funds ) Benchmark weights etc. apply to all four Funds. Sector Exposure Overweight/Underweight positions as at 1 December 2015 (%) Mercer International Shares Fund Mercer Hedged International Shares Fund Mercer International Shares Plus Fund Mercer Hedged International Shares Plus Fund 10

MERCER MULTI MANAGER FUNDS QUARTERLY REPORT SHARES NOTE: Past performance is not a reliable indicator of future performance INTERNATIONAL SHARES INTERNATIONAL SHARES FUNDS** Benchmark weights Top 10 countries (%) MSCI World Index (ex Australia) - in A$ with net dividends reinvested Top 10 countries benchmark returns for the three months to 1 December 2015 (%) MSCI World Index (ex Australia) - in A$ with net dividends reinvested ** In this Quarterly Report, International Shares Funds refers to: Mercer International Shares Fund Mercer Hedged International Shares Fund (the Core Funds ) Mercer International Shares Plus Fund Mercer Hedged International Shares Plus Fund (the Plus Funds ) Benchmark weights etc. apply to all four Funds. Exposure to top 10 countries - Overweight/Underweight positions as at 1 December 2015 (%) Mercer International Shares Fund Mercer Hedged International Shares Fund Mercer International Shares Plus Fund Mercer Hedged International Shares Plus Fund 11

QUARTERLY ENDING DECEMBER 2015 SHARES NOTE: Past performance is not a reliable indicator of future performance INTERNATIONAL SHARES MERCER INTERNATIONAL SHARES FUND MERCER HEDGED INTERNATIONAL SHARES FUND Top 10 International share holdings Ten largest international share holdings held in aggregate within the Mercer International Shares Fund and Mercer Hedged International Shares Fund as at quarter end, compared to their respective benchmarks: Stock % of Fund % of Benchmark Apple 1.2 1.9 Amazon 1.1 0.9 Nestle S.A. 1.1 0.8 Facebook Incorporation 0.9 0.7 Royal Caribbean Cruises 0.8 0.1 Procter & Gamble Co 0.8 0.7 Prudential 0.8 0.2 Microsoft Corporation 0.8 1. Pfizer Inc 0.8 0.6 Anheuser-Busch Inbev Sa 0.8 0. Investment performance The fund performed modestly below the index over the quarter mainly due to the exposure to emerging markets which fell over the quarter. Note that a composite benchmark was used for this fund from its inception to August 2007. In that month, the benchmark was standardised to the 1 MSCI World Index (ex Australia) - in A$ with net dividends reinvested. 2 MSCI World Index (ex Australia) - in Hedged A$ with net dividends reinvested Mercer International Shares Fund Total Returns Before fees: 1.4 11.9 2.1 14.8 Benchmark 1 Return Before fees: 1.7 11.8 2.9 15.5 Excess Return Before fee: -0. +0.1-0.8-0.7 Mercer Hedged International Shares Fund Total Returns Before fees: 6.2.6 15.0 11.8 Benchmark 2 Return Before fees: 6.6.8 15.6 12.4 Excess Return Before fees : -0.4-0.2-0.6-0.6 Total Returns (%) After Fees Mercer International Shares Fund 1.1 11.6 22. 1.9 Mercer Hedged International Shares Fund 6.0 2.8 1.6 10.4 Manager performance Global Thematic Partners was the key contributor to underperformance in the December quarter, largely due to Agribusiness related exposures, in particular its holdings in CF industries, Potash Corp and Mosaic. Arrowstreet underperformed as negative stock selection and currency exposure offset positive contributions from its country/sector allocations. Proportion of assets managed at quarter end Managers % Arrowstreet 22.5 Baillie Gifford 20.1 BlackRock 1.7 Global Thematic Partners 10.8 Hexavest 19.8 Schroder 25.1 Manager Returns Relative to Fund Benchmark* (+ or - %) - Before fees Managers 1 Year Arrowstreet -1.0-0.5 n/a n/a Baillie Gifford +2.1 +2.9 n/a n/a BlackRock +0.4 +11.6 n/a n/a Global Thematic Partners -2.9-8.6-6.0-4.8 Hexavest -1. +0.8-1.2-0. Schroder -0.2 0.0-0. +0. * MSCI World Index (ex Australia) - in A$ with net dividends reinvested, which is the benchmark used for the unhedged funds. 12

MERCER MULTI MANAGER FUNDS QUARTERLY REPORT SHARES INTERNATIONAL SHARES MERCER INTERNATIONAL SHARES PLUS FUND MERCER HEDGED INTERNATIONAL SHARES PLUS FUND Top 10 International share holdings Ten largest international share holdings held in aggregate within the Mercer International Shares Plus Fund and Mercer Hedged International Shares Plus Fund as at quarter end, compared to their respective benchmarks: Stock % of Fund % of Benchmark Amazon 1.2 0.9 Nestle S.A. 1.1 0.8 Royal Caribbean Cruises 1.1 0.1 Prudential 1.0 0.2 Facebook Incorporation 0.9 0.7 Apple 0.9 1.9 Anheuser-Busch Inbev Sa 0.8 0. Procter & Gamble Co 0.8 0.7 General Motors Company 0.8 0.2 Naspers 0.8 0.0 Investment performance The fund performed modestly below the index over the quarter mainly due to the exposure to emerging markets which fell over the quarter. Note that a composite benchmark was used for this fund from its inception to August 2007. In that month, the benchmark was standardised to the 1 MSCI World Index (ex Australia) - in A$ with net dividends reinvested. 2 MSCI World Index (ex Australia) - in Hedged A$ with net dividends reinvested Mercer International Shares Plus Fund Total Returns Before fees: 1. 11.8 22.8 14.4 Benchmark 1 Return Before fees: 1.7 11.8 2.9 15.5 Excess Return Before fees -0.4 0.0-1.1-1.1 Mercer Hedged International Shares Plus Fund Total Returns Before fees: 6.1.5 14.6 11. Benchmark 2 Return Before fees: 6.6.8 15.6 12.4 Excess Return Before fees: -0.5-0. -1.0-1.1 Total Returns (%) After Fees Mercer International Shares Plus Fund 1.0 10. 21. 1.1 Mercer Hedged International Shares Plus Fund 6.0 2.6 1.2 9.9 Manager performance Global Thematic Partners was the key contributor to underperformance in the December quarter, largely due to Agribusiness related exposures, in particular its holdings in CF industries, Potash Corp and Mosaic. Arrowstreet underperformed as negative stock selection and currency exposure offset positive contributions from its country/sector allocations. Proportion of assets managed at quarter end Manager % Arrowstreet 0.0 Baillie Gifford 26.8 BlackRock 2. Global Thematic Partners 14.4 Hexavest 26.5 Schroder 0.0 Manager Returns Relative to Fund Benchmark* (+ or - %) - Before fees Managers 1 Year Arrowstreet -1.0-0.5 n/a n/a Baillie Gifford +2.1 +2.9 n/a n/a BlackRock +0.4 +11.6 n/a n/a Global Thematic Partners -2.9-8.6-6.0-4.8 Hexavest -1. +0.8-1.2-0. Schroder -0.2 0.0-0. +0. * MSCI World Index (ex Australia) - in A$ with net dividends reinvested, which is the benchmark used for the funds. 1

QUARTERLY ENDING DECEMBER 2015 SHARES NOTE: Past performance is not a reliable indicator of future performance Global small cap stocks, after allowing for the rise in the AUD, rose modestly over the quarter. GLOBAL SHARES SMALL COMPANIES Overseas small vs large company performance MERCER GLOBAL SMALL COMPANIES SHARES FUND Investment performance The fund outperformed its benchmark over the December quarter. Total & Excess Returns (%) Total Returns Before fees : 1.2 16.1 26.6 17.5 Benchmark* Return : 0.6 12.1 24.2 15.1 Excess Return Before fees : +0.6 +4.0 +2.4 +2.4 * MSCI World Small Cap Index. Total Returns After fees : 0.9 14.7 25.2 16.4 Manager performance Arrowstreet s outperformance was largely due to its overweight exposure to the Canadian Information Technology and French Consumer Discretionary sectors. Allianz benefited from positive stock selection, driven by holdings in Sartorius Stedim Biotech, Acuity Brands and Gameloft. Proportion of assets managed at quarter end Manager % Allianz 29.5 Arrowstreet 1.6 Fidelity 8.9 Manager Returns Relative to Fund Benchmark* (+ or - %) - Before fees Managers Allianz +0.5 +.5 n/a n/a Arrowstreet +1.0 +.1 +5.5 n/a Fidelity +0. +4.8 +0.4 +0.5 * MSCI World Small Cap Index, which is the benchmark used for the fund. 14

MERCER MULTI MANAGER FUNDS QUARTERLY REPORT SHARES GLOBAL SHARES LOW VOLATILITY Top 10 Overseas share holdings Ten largest Low Volatility share holdings as at quarter end compared to their respective benchmarks. Stock % of Fund % of Benchmark Microsoft Corporation.0 1. Oracle Corporation 2.1 0.4 Comcast Corporation 1.7 0.4 Intel Corporation 1.5 0.5 Cvs Health Corp 1.4 0. American Express Company 1. 0.2 Visa 1.1 0.5 Alphabet Inc 1.1 0.7 Nestle S.A. 1.0 0.7 Qualcomm Incorporated 1.0 0.2 MERCER GLOBAL LOW VOLATILITY SHARES FUND Investment performance As expected in a period of rising share prices low volatility stocks underperformed the broader MSCI World Index in the quarter. Total & Excess Returns (%) Total Returns Before fees : -2.6 11.5 21.0-2.6 Benchmark* Return : 1.7 11.8 2.9 1.7 Excess Return Before fees : -4. -0. -2.9-4. * MSCI World Index (ex Australia) - in A$ with net dividends reinvested. Total Returns After fees : -2.8 10.6 20.2 n/a Manager performance During the December quarter Magellan and Veritas were the largest contributors to underperformance. Stock selection and sector allocation were key detractors from performance for both managers. Proportion of assets managed at quarter end Manager % Acadian 0.0 First Eagle 6.0 Veritas 17.0 Magellan 17.0 * MSCI World Index (ex Australia) - in A$ with net dividends reinvested 15

QUARTERLY ENDING DECEMBER 2015 SHARES NOTE: Past performance is not a reliable indicator of future performance Emerging Markets stocks continue to perform poorly notwithstanding rises in the broader equity market. Ongoing weakness in commodity prices affected countries like Brazil and Russia.. EMERGING MARKETS Emerging Markets vs large company performance Top 10 benchmark weights (MSCI Emerging Markets Index MERCER EMERGING MARKETS SHARES FUND Investment performance The fund modestly outperformed over the benchmark over the quarter ending 1 December 2015. Total & Excess Returns (%) 1 Year Total Returns Before fees : -2.6-2.6 6.1 2.2 Benchmark* Return : -2.8-4. 5.0 1.9 Excess Return Before fees : +0.2 +1.7 +1.1 +0. *MSCI Emerging Markets Index Total Returns After fees : -.0 -.7 5.1 1.6 Manager performance BlackRock s outperformance was assisted by positive contributions from its valuation based quantitative signals while Investec s overweight exposure to China was positive for its performance. Proportion of assets managed at quarter end Manager % AQR 10.9 BlackRock 9.8 Investec 24.9 Macquarie 24.4 Manager Returns Relative to Fund Benchmark* (+ or - %) - Before fees Managers AQR -1.6 n/a n/a n/a BlackRock +0.7 +.7 +2.1 +1.5 Investec +0. n/a n/a n/a Macquarie -0.9 n/a n/a n/a * MSCI Emerging Markets Index, which is the benchmark used for the fund. 16

MERCER MULTI MANAGER FUNDS QUARTERLY REPORT REAL ASSETS GLOBAL LISTED PROPERTY Global listed property returns were strong over the quarter (in hedged terms) in line with the broader market. Australian Listed vs global listed property cumulative performance Note The indices used in the graph (above) are: 1. S&P/ASX 200 Property Trusts Accumulation Index for Australian Listed Property 2. FTST EPRA/NAREIT Developed Hedged $A index MERCER GLOBAL LISTED PROPERTY FUND Investment performance The fund performed in line with benchmark for the December quarter. Total & Excess Returns (%) Total Returns Before fees : 5.1 5.6 1.6 1.1 Benchmark* Return : 5.1 4. 11.7 12.7 Excess Return Before fees : 0.0 +1. +1.9 +0.4 *FTSE EPRA/NAREIT Developed Hedged $A Index Total Returns After fees : 4.7 4.6 12.6 12.0 Manager performance Manager performance was mixed over the December quarter. Principal s outperformance was largely due to an overweight allocation to the Self-Storage sector and positive stock selection within Diversified Property. CenterSquare s underperformance was largely due to negative stock selection in Japan, Europe and Canada which outweighed positive stock selection within Australia, Singapore and Hong Kong. Proportion of assets managed at quarter end Manager % Brookfield 25.5 Principal 7.5 CenterSquare 7.0 Manager Returns Relative to Fund Benchmark* (+ or - %) - Before fees Managers Brookfield 0.0-0.1 +2.4 n/a Principal +0.4 +2.0 +. n/a CenterSquare -0.2 +1.7 +0.1 n/a Note: The Mercer Australian Listed Property Fund is closed to new investors. * FTSE EPRA/NAREIT Developed Hedged $A Index 17

QUARTERLY ENDING DECEMBER 2015 REAL ASSETS The local direct property market remains in solid shape new construction is contained, transactions are solid and offshore interest remains strong. Low interest rates continue to support the sector. AUSTRALIAN DIRECT PROPERTY Direct Property 12 month Rolling Benchmark Return MERCER AUSTRALIAN DIRECT PROPERTY FUND Note: The indices used in the graph (above) are: Before 1/9/2009: Mercer Unlisted Property Funds Index After 1/9/2009: Mercer/IPD Australian Pooled Property Fund Index Investment performance Relative to the benchmark, the fund underperformed over the quarter. The benchmark changed in December 2015 to CPI +4%. Total & Excess Returns (%) Total Returns Before fees : 2.8 12.2 10.8 10. Benchmark* Return :.7 1.4 10.9 10.2 Excess Return Before fees : -0.9-1.2-0.1 +0.1 * Before 1/9/2009: Mercer Unlisted Property Funds Index From 1/9/2009: Mercer/IPD Australian Pooled Property Fund Index Total Returns After fees : 2.5 10.9 9.4 8.8 Manager performance Investa s return over the quarter was largely driven by positive independent revaluations on 12 underlying properties including 201 Kent Street Sydney, 120 Collins Street Melbourne and 400 George Street Sydney. Goodman performance was driven by a positive impact from revaluations across approximately 50% of the underlying assets. Proportion of assets managed at quarter end Manager % Charter Hall Industrial 25.8 Charter Hall Retail 20.2 Goodman 2.1 Investa Property Group 6.5 Lend Lease Inv Mgmt (APPF Retail) 15.4 Manager Returns Relative to Fund Benchmark* (+ or - %) - Before fees Managers Charter Hall Industrial -0.9-0.9 n/a n/a Charter Hall Retail n/a n/a n/a n/a Goodman -0.4 +.5 +.5 +2.2 Investa Property Group +0.6 +1.0 +0.6 +0.5 Lend Lease Inv Mgmt (APPF Retail) -2.2-4.6-1.5-0.7 * Mercer/IPD Australian Pooled Property Fund Index (from 1/9/2009) and Mercer Unlisted Property Funds Index (before 1/9/2009) are/were the benchmarks used for the fund. 18

MERCER MULTI MANAGER FUNDS QUARTERLY REPORT REAL ASSETS GLOBAL LISTED INFRASTRUCTURE The listed infrastructure index (in currency hedged terms) showed a modest rise in the quarter but performed far better than the broader market. Listed Infrastructure 12 month Rolling Return Note The index used in the graph (above) is the FTSE Global Core 50/50 Index. MERCER GLOBAL LISTED INFRASTRUCTURE FUND Investment performance The fund underperformed its benchmark for the quarter ending 1 December 2015. Total & Excess Returns (%) Total Returns Before fees : 1.4.8 14.9 14.1 Benchmark* Return : 0.7 1.1 15.1 12.9 Excess Return Before fees : +0.7 +2.7-0.2 +1.2 *The benchmark used for this fund was the UBS Global 50/50 Infrastructure and Utilities Index - in A$ (Hedged) until 1/4/2015, thereafter FTSE Global Core 50/50 Index Total Returns After fees : 0.9 2.8 14.1 1.4 Manager performance Colonial First State s outperformance during the December quarter was largely driven by overweight holdings in ITC Holdings, American Tower Corporation and Nextera Energy which all outperformed the wider market. Both managers benefitted from holding an underweight exposure to Williams Companies which significantly underperformed while RARE also benefitted from overweight holdings in Norfolk Southern Corporation and Iberdrola which outperformed. Proportion of assets managed at quarter end Manager % Colonial First State 66.5 RARE.5 Manager Returns Relative to Fund Benchmark* (+ or - %) - Before fees Managers Colonial First State +0.6 +.0 +1.2 +1.6 RARE +0.6-0.8 -.9-1.7 * The benchmark used for this fund was the UBS Global 50/50 Infrastructure and Utilities Index - in A$ (Hedged) until 1/4/2015, thereafter FTSE Global Core 50/50 Index. Alternate benchmarks may apply to managers individually. 19

QUARTERLY ENDING DECEMBER 2015 REAL ASSETS The unlisted infrastructure market continues to generate strong returns, boosted by strong global demand for core, stable income producing assets. GLOBAL UNLISTED INFRASTRUCTURE Unlisted Infrastructure 12 month Rolling Return (A$) Breakdown by Industry sector MERCER GLOBAL UNLISTED INFRASTRUCTURE FUND Investment performance The fund substantially outperformed the benchmark over the quarter (and year) with a number of key assets revalued upward. Total & Excess Returns (%) Total Returns Before fees : 4. 16.2 11.7 12.5 Benchmark* Return : 1.6 6.5 7.0 7. Excess Return Before fees : +2.7 +9.7 +4.7 +5.2 *CPI + 5% (lagged one quarter) Total Returns After fees :.8 14.4 9.9 10.7 Manager performance Colonial First State s outperformance over the quarter was largely due to capital return from the sale of underlying investment CFS Newham. A positive revaluation on Anglican Water Group also contributed positively. Macquarie s strong return for the quarter was largely driven by a positive revaluation on underlying asset Thyssengas. Proportion of assets managed at quarter end Manager % Colonial First State Global Asset 28.6 IFM 17.6 Macquarie Specialised Asset 6.1 MAIF Investment Trust 9.8 KKR 4.5 CFS Finerge. Manager Returns Relative to Fund Benchmark* (+ or - %) - Before fees Managers Colonial First State Global Asset +.0 +10.5 +5. +.5 IFM +2.1 +4.6 n/a n/a Macquarie Specialised Asset +7.0 +15.9 +7.8 +11.4 MAIF Investment Trust -0.4 n/a n/a n/a KKR +0.4 n/a n/a n/a CFS Finerge n/a n/a n/a n/a * CPI + 5% which is the benchmark used for the fund. Benchmark used in this report is lagged one quarter. Alternate benchmarks may apply to managers individually. 20

MERCER MULTI MANAGER FUNDS QUARTERLY REPORT REAL ASSETS GLOBAL NATURAL RESOURCES Commodity prices continue to fall sharply across the board. Commodities Index - A$ Hedged Cumulative Returns Note The indices used in the graph (above) are a 75%/25% combination of the: - 75%: Dow Jones-UBS Index (DJ UBS Index), which tracks broad commodities - 25% S&P GSCI, which tracks agricultural commodities MERCER GLOBAL NATURAL RESOURCES FUND Investment performance The fund performed in line with the benchmark over the quarter mainly due to the timber exposure showing positive returns. Total & Excess Returns (%) Total Returns Before fees : -4. -11.5-5. -.9 Benchmark* Return : -4.4-10.4-6. -4. Excess Return Before fees : +0.1-1.1 +1.0 +0.4 *45% DJ UBS Index plus 15% S&P GSCI - in A$ (Hedged) plus 40% CPI + 5%, Total Returns After fees : -4.4-12.2-6.2-4.8 Manager performance The Fund s exposure to the broad commodities and agricultural commodities markets was the key detractor from performance over the December quarter with energy, and crude oil prices in particular experiencing large falls. Proportion of assets managed at quarter end Manager % Global Commodities 19.7 H Global Advisors 48. New Forests 2.0 Manager Returns Relative to Fund Benchmark* (+ or - %) - Before fees Managers Global Commodities +1.2-2.0 0.0-0.8 H Global Advisors -.9-11.2-7.7-5.1 New Forests +5.6 +19.5 +19. +16.2 *45% DJ UBS Index plus 15% S&P GSCI - in A$ (Hedged) plus 40% CPI + 5%, which is the benchmark used for the fund. Alternate benchmarks may apply to managers individually. 1 Track record partly reflects manager s previous inclusion in alternative assets. 21

QUARTERLY ENDING DECEMBER 2015 MERCER DIVERSIFIED ALTERNATIVES FUND ALTERNATIVES ALTERNATIVE ASSETS Investment performance Returns were negative over the quarter, which was a disappointing outcome in the context of large rises in equity markets. Total Returns (%) Total Returns After fees and costs 1 : -2.1 0.2 4.5.8 Benchmark* Return : 0.5 2. 2.6.4 *Bloomberg Bank Bill Index 1 The Total return after fees and costs (ie management costs) allows for a deduction of the investment management fee expense allowance and any applicable performance based fee. See the PDS for details of the current fees and costs. Manager performance Within the Mercer Liquid Alternatives Strategies Fund the underlying long/short equity managers were the largest detractors from performance, followed by the macro focused managers. Acadian was the key detractor in the long short suite, driven by exposures to the Health Care and Industrials sectors. Manager Returns Relative to Fund Benchmark* (+ or - %) - Before fees Managers Mercer Liquid Alternatives Strategies -1. +2.1 n/a n/a Babson Capital -2.7-47.2-22.8-20.0 * Bloomberg Bank Bill Index, which is the benchmark used for the fund. Alternate benchmarks may apply to managers individually. Manager Allocation Mercer Diversified Alternatives as at 1 December 2015 22

MERCER MULTI MANAGER FUNDS QUARTERLY REPORT FIXED INTEREST AUSTRALIAN SOVEREIGN BONDS Australian sovereign bonds produced a negative return over the quarter as yields rose from very low levels. Australian 10-Year Bonds Yields* * Source: Thomson Reuters Datastream MERCER AUSTRALIAN SOVEREIGN BOND FUND Investment performance The fund performed in line with the benchmark in the quarter. Total & Excess Returns (%) Total Returns Before fees : -0.5 2.6 4.7 6.5 Benchmark* Return : -0.5 2. 4.2 6. Excess Return Before fees : 0.0 +0. +0.5 +0.2 * Benchmark: Before 1/1/2010: UBSWA Composite Bond Index (All Maturities) From 1/1/2010: Bloomberg Australian Treasury Bond Index 0+ (All Maturities) Index Total Returns After fees : -0.6 2.2 4. 6.2 Manager performance The underlying active manager BT underperformed the benchmark over the quarter, largely due to duration positioning as local bond yields rose over the quarter. Proportion of assets managed at quarter end Manager % BT 25.1 Challenger 50.0 Macquarie 24.9 Manager Returns Relative to Fund Benchmark* (+ or - %) - Before fees Managers BT -0.5-0. +0.5 n/a Challenger +0.1 +0.6 +1.0 n/a Macquarie 0.0 +0.1 +0.1 0.0 * Bloomberg Australian Treasury Bond Index 0+ (All Maturities) from 1/1/2010 and UBSWA Composite Bond Index (All Maturities) Before 1/1/2010 are/were the benchmarks used for the fund. Note: Performance history includes the returns of the Mercer Australian Fixed Fund (now closed to new investors), from which the Mercer Australian Sovereign Bond Fund evolved. 2

QUARTERLY ENDING DECEMBER 2015 FIXED INTEREST NOTE: Past performance is not a reliable indicator of future performance Overseas sovereign bonds (in currency hedged terms) produced a flat return over the quarter with yields rising modestly. GLOBAL SOVEREIGN BONDS 10 Year Bond Yields UK and US* * Source: Thomson Reuters Datastream MERCER GLOBAL SOVEREIGN BOND FUND Investment performance The fund performed in line with the benchmark over the December quarter. Total & Excess Returns (%) Total Returns Before fees : 0.2 4.4 6.6 7.9 Benchmark* Return : 0.2.2 5.4 7.0 Excess Return Before fees : 0.0 +1.2 +1.2 +0.9 * Benchmark: Before 1/1/2010: Barclays Aggregate Bond Index - in A$ (Hedged) From 1/1/2010: JP Morgan Global Government Index - in A$ (Hedged) Total Returns After fees : 0.2 4.0 6.2 7.5 Manager performance AB s outperformance during the December quarter was largely due to its yield curve positioning and its active currency exposures. H2O experienced mixed results with outperformance from its short US Treasuries & long German Bunds position and US yield curve positioning being largely offset by underperformance of several relative currency exposures. Proportion of assets managed at quarter end Manager % Alliance Bernstein 24.5 Challenger 52.1 H20 Asset Management 2.4 Manager Returns Relative to Fund Benchmark* (+ or - %) - Before fees Managers Alliance Bernstein +0. +0.5 +0.7 n/a Challenger 0.0 0.0-0.2-0.1 H20 Asset Management 0.0 +4.0 +4. n/a * JP Morgan Global Government Index - in A$ (Hedged) from 1/1/2010 and Barclays Aggregate Bond Index - in A$ (Hedged) Before 1/1/2010 are/were the benchmarks used for the fund. Alternate benchmarks may apply to managers individually. 24

MERCER MULTI MANAGER FUNDS QUARTERLY REPORT FIXED INTEREST AUSTRALIAN INFLATION PLUS The Australian Inflation Plus benchmark produced a positive return over the quarter. Australian vs US Indexed Bond Yields* * Source: - Reserve Bank of Australia (Aust.) - Thomson Reuters Datastream MERCER AUSTRALIAN INFLATION PLUS Investment performance The fund underperformed the CPI based benchmark over the quarter ending 1 December 2015 Mercer Australian Inflation Plus Total & Excess Returns (%) Total Returns Before fees 0.2 1.1 2.1 5.5 Benchmark* Return 0.5 1.5 2.2 5.5 Excess Return Before fees -0. -0.4-0.1 0.0 * From 01/08/2014 Australian Consumer Price Index. Previously Bloomberg Govt Inflation Linked Bond Index (All Mat) Index Total Returns (%) After Fees Mercer Australian Inflation Plus 0.1 0.4 1.6 5.0 Manager performance QIC s outperformance over the December quarter was supported by a bounce back in Australian breakeven inflation rates, despite the impact of continued falls in commodity and energy prices. Ardea s underperformance came largely in November, which saw a dislocation between the yields on bonds and the yields on interest rate swaps, while exposure to New Zealand government bonds also impacted. Proportion of assets managed at quarter end (Mercer Growth) Manager % Ardea 5.9 Challenger 26.5 QIC 7.6 Manager Returns Relative to Fund Benchmark* (+ or - %) - Before fees Managers Ardea -1.1-1.8 n/a n/a Challenger -0. 0.0 +0.2 +0.2 QIC +0.5 +0.5 n/a n/a * Bloomberg Govt Inflation Linked Bond Index (All Mat) which is the benchmark used for this Fund. 25

QUARTERLY ENDING DECEMBER 2015 FIXED INTEREST Credit markets produced a modest positive return in the quarter with increasing yields at the lower credit quality end being offset by better performance from high grade credit. GLOBAL CREDIT US 10-Year Corporate Bond Yield Spread over 10-Year Treasury Bond* MERCER GLOBAL CREDIT FUND Investment performance The fund performed broadly in line with the benchmark over the December quarter. Total & Excess Returns (%) Total Returns Before fees : 0.6 2.7 5.4 8.4 Benchmark* Return : 0.5 2.4 4.8 7.4 Excess Return Before fees : +0.1 +0. +0.6 +1.0 *60% Barclays Global Aggregate Corporate Index - in A$ (Hedged); 40% Barclays Capital Global Aggregate ex Government ex Treasuries Index - in A$ (Hedged) Total Returns After fees : 0.5 2.2 4.9 7.9 Manager performance Wellington s outperformance was largely due to being underweight US duration and security selection within the sub investment grade sector. Colonial First State underperformed during the quarter, impacted by widening credit spreads and volatility in high yield markets. Proportion of assets managed at quarter end Manager % AXA 20.5 Colonial First State 9.5 Wellington 40.0 Manager Returns Relative to Fund Benchmark* (+ or - %) - Before fees Managers AXA +0.1 +0. n/a n/a Colonial First State -0.4-0.8 +0.4 +1.0 Wellington +0. +1.2 +0.6 +0.7 * 60% Barclays Global Aggregate Corporate Index - in A$ (Hedged) and 40% Barclays Capital Global Aggregate ex Government ex Treasuries Index - in A$ (Hedged), which are the benchmarks used for the Fund. Alternate benchmarks may apply to managers individually. 26

MERCER MULTI MANAGER FUNDS QUARTERLY REPORT FIXED INTEREST EMERGING MARKETS DEBT Returns to Emerging Market Debt were negative over the quarter substantially underperforming the large developed world indices. Emerging versus Developed Yields MERCER EMERGING MARKETS DEBT FUND Investment performance The fund performed substantially below benchmark over the quarter ending 1 December 2015. Total & Excess Returns (%) Total Returns Before fees : -5.9-6.6-0.1 n/a Benchmark* Return : -1.1-2.0 2.2 n/a Excess Return Before fees : -4.8-4.6-2. n/a * JP Morgan GBI-EM Global Diversified Index Total Returns After fees : -6.0-7.5-0.8 n/a Manager performance Underperformance in the Emerging Market Debt Fund was driven by Investec and Wellington. Investec s underweight exposure to emerging market currencies was a key detractor from performance while Wellington s overweight exposure to the South African market detracted from performance. Proportion of assets managed at quarter end Manager % Mercer (Dublin) Emerging Markets Debt Fund 100.0 27

QUARTERLY ENDING DECEMBER 2015 The Reserve Bank kept the cash rate at 2% in the quarter with a view to further reductions if the local economy (and inflation) continues with recent weakness. Term deposit rates continue to drop with now a very modest margin between cash and term deposit rates for institutional investors. CASH & TERM DEPOSITS Mercer Term Deposits Breakdown by provider Term Deposit Maturity buckets at 1 December 2015 (%) 0 to 90 days 9.8% 91 to 180 days 6.% 181 to 270 days 16.8% 271 to 65 days 7.1% Mercer Cash Term Deposit Units Average maturity (months) 4. Average yield 2.5 MERCER CASH FUND Investment performance The Mercer Cash fund was in line with its benchmark and the Mercer Cash Fund Term Deposits outperformed its benchmark in the quarter ending 0 September 2015. Mercer Cash Fund Cash Units Total & Excess Returns (%) Total Returns Before fees: 0.6 2.7.0.7 Benchmark* Return : 0.5 2. 2.6.4 Excess Return Before fees +0.1 +0.4 +0.4 +0. Mercer Cash Fund Term Deposit Units Total & Excess Returns (%) Total Returns Before fees: 0.6 2.9.2 4.0 Benchmark* Return : 0.5 2. 2.6.4 Excess Return Before fees +0.1 +0.6 +0.6 +0.6 * Bloomberg bank Bill Index Total Returns (%) After Fees Mercer Cash Fund Cash Units 0.5 2. 2.6.4 Mercer Cash Fund Term Deposit Units 0.6 2.5 2.9.7 Manager performance Challenger term deposits outperformed the benchmark over the quarter, while BlackRock performed in-line with its benchmark. Proportion of assets managed at quarter end Manager % Challenger 50.0 Blackrock 50.0 Manager Returns Relative to Fund Benchmark* (+ or - %) - Before fees Managers Challenger +0.1 +0.5 +0.6 +0.7 Blackrock 0.0 +0.2 n/a n/a * Bloomberg Bank Bill Index, which is the benchmark used for the Fund. 28

MERCER MULTI MANAGER FUNDS QUARTERLY REPORT OTHER SECTOR FUNDS MERCER DIVERSIFIED SHARES FUND Objectives To achieve a return (after investment management fees) that exceeds CPI increases by at least 4.5% per annum over rolling seven year periods. This objective for the seven years to quarter end was 6.8% per annum. Total & Excess Returns - Before fees (%) Excess Returns: +0. +0.9 +1.0 +0.2 * Composite benchmark of relevant indices Asset Allocation (%) Shares ^ Time horizon for this fund s objective (refer above) B mark Yrs Actual at quarter end Growth Defensive 7 Yrs^ Total Returns: 5.0 6.2 15.0 11.5 Benchmark Return* 4.7 5. 14.0 11. Total Returns After fees (%) Yrs 7 Yrs^ Total Returns: 4.6 4.7 1.2 9.9 Total Australian Equities - Large Cap 42.0 40.5 0.0 40.5 Australian Equities - Small Cap 5.0 5.1 0.0 5.1 Global Equities - Large Cap 1.0.4 0.0.4 Global Equities - Low Vol 10.0 6.9 0.0 6.9 Global Equities - Small Cap 7.0 6.8 0.0 6.8 Emerging Markets Equity 5.0 6. 0.0 6. Cash 0.0 1.1 0.0 1.1 100.0 100.0 0.0 100.0 ** Refer to page 40 for more information on manager line up for this asset class Performance attribution this quarter (%) Asset Allocation +0.5 Stock/manager selection -0.2 Excess Return for quarter Before fees : +0. 29

QUARTERLY ENDING DECEMBER 2015 DIVERSIFIED FUNDS MULTI SECTOR GROWTH MERCER GROWTH FUND Objectives To achieve a return (after investment management fees) that exceeds CPI increases by at least.5% per annum over rolling five year periods. This objective for the five years to quarter end was 5.8% per annum. To achieve a return (over the medium to longer term) which is competitive with comparable funds that have a similar allocation to growth assets and similar risk characteristics. Total & Excess Returns - Before fees (%) Excess Returns: +0.1 +1.6 +1.1 +0.6 *Composite benchmark of relevant indices Total Returns: 2.7 5.5 10.4 8.2 ^ Time horizon for this fund s objective (refer above) Actual at quarter end Asset Allocation (%) B mark Growth Defensive Total Shares Yrs 5 Yrs^ Total Returns:.2 6.4 11.2 9.1 Benchmark Return*.1 4.8 10.1 8.5 Total Returns After fees (%) Yrs 5 Yrs^ Australian Equities - Large Cap 24.0 18.8 6.9 25.7 Australian Equities - Small Cap.0 2. 0.8.1 Global Equities - Large Cap 16.0 14.2 5.2 19.4 Global Equities - Low Vol 6.0 2.1 0.8 2.9 Global Equities - Small Cap.0 2.1 0.8 2.9 Emerging Markets Equity.0 2.1 0.8 2.9 MERCER SELECT GROWTH FUND Objectives To achieve a return (after investment management fees) that exceeds CPI increases by at least 4.0% per annum over rolling five year periods. This objective for the five years to quarter end was 6.% per annum. To achieve a return (over the medium to longer term) which is competitive with comparable funds that have a similar allocation to growth assets and similar risk characteristics. Total & Excess Returns Yrs 5 Yrs^ - Before fees (%) Total Returns:. 6.7 10.4 8.5 Benchmark Return*.0 4.1 9.0 7.8 Excess Returns: +0. +2.6 +1.4 +0.7 *Composite benchmark of relevant indices Total Returns After fees (%) Total Returns: 2.8 5. 9.2 7.6 ^ Time horizon for this fund s objective (refer above) Actual at quarter end Asset Allocation (%) B mark Growth Defensive Total Shares Yrs 5 Yrs^ Australian Equities - Large Cap 22.0 17.4 5.5 2.0 Australian Equities - Small Cap 4.0.2 1.0 4.2 Global Equities - Large Cap 14.0 12.0.8 15.8 Global Equities - Low Vol 5.0 0.0 0.0 0.0 Global Equities - Small Cap 5.0 5.1 1.6 6.8 Emerging Markets Equity.0 2. 0.7.0 Property & Infrastructure Alternatives Growth Fixed Defensive Fixed Listed Property 2.0 0.7 0. 1.0 Unlisted Property 4.5.6 1. 5.0 Listed Infrastructure 2.0 0.7 0. 1.0 Unlisted Infrastructure 4.5 2.4 0.9.2 Natural Resources 1. 1.0 0.4 1. Private Equity 0.0 0.0 0.0 0.0 Sustainable Opps 0.0 0.0 0.0 0.0 Diversified Growth Funds.0 0.5 0.2 0.7 Hedge Funds 1.8 2.6 0.9.5 Private Debt 2.0 0.6 0.2 0.8 High Yield/Multi Asset Credit 2.0 1.8 0.7 2.5 Emerging Markets Debt 1.0 0.0 0.0 0.0 Absolute Return Bonds 2.0 2.2 0.8.0 Global Credit.0.4 1. 4.7 Australian Sovereigns 5.0.7 1. 5.0 Global Sovereigns.0 0.9 0. 1. Inflation Plus 4.0. 1.2 4.5 Cash 4.0 4.1 1.5 5.7 100.0 7.1 26.9 100.0 ** Refer to page 40 for more information on manager line up for this asset class Property & Infrastructure Alternatives Growth Fixed Defensive Fixed Listed Property 0.0 0.0 0.0 0.0 Unlisted Property 8.0 6.5 2.0 8.5 Listed Infrastructure 0.0 0.0 0.0 0.0 Unlisted Infrastructure 8.0 4.9 1.5 6.4 Natural Resources. 1.9 0.6 2.5 Private Equity 2.8 0.0 0.0 0.0 Sustainable Opps 0.0 0.0 0.0 0.0 Diversified Growth Funds 0.0 0.0 0.0 0.0 Hedge Funds 2.0 2.2 0.7 2.9 Private Debt 2.0 0.6 0.2 0.7 High Yield/Multi Asset Credit 2.0 1.7 0.5 2.2 Emerging Markets Debt 2.0 0.8 0.2 1.0 Absolute Return Bonds.0.0 0.9.9 Global Credit 0.0 0.5 0.2 0.7 Australian Sovereigns 6.0 4.5 1.4 5.9 Global Sovereigns 5.0 2.5 0.8.2 Inflation Plus 0.0 0.4 0.1 0.6 Cash.0 6.7 2.1 8.8 100.0 76.0 24.0 100.0 ** Refer to page 40 for more information on manager line up for this asset class Performance attribution this quarter (%) Asset Allocation 0.0 Stock/manager selection +0.1 Excess Return for quarter Before fees : +0.1 Performance attribution this quarter (%) Asset Allocation +0. Stock/manager selection 0.0 Excess Return for quarter Before fees : +0. 0

MERCER MULTI MANAGER FUNDS QUARTERLY REPORT DIVERSIFIED FUNDS MULTI SECTOR GROWTH MERCER HIGH GROWTH FUND Objectives To achieve a return (after investment management fees) that exceeds CPI increases by at least 4.0% per annum over rolling six year periods. This objective for the six years to quarter end was 6.% per annum. To achieve a return (over the medium to longer term) which is competitive with comparable funds that have a similar allocation to growth assets and similar risk characteristics. Total & Excess Returns - Before fees (%) Excess Returns: 0.0 +1.6 +0.6 +0.2 *Composite benchmark of relevant indices Total Returns:.2 5.6 10.9 8.1 ^ Time horizon for this fund s objective (refer above) Actual at quarter end Asset Allocation (%) B mark Growth Defensive Total Shares Yrs 6 Yrs^ Total Returns:.7 6.7 11.8 9.1 Benchmark Return*.7 5.1 11.2 8.9 Total Returns After fees (%) Yrs 6 Yrs^ Australian Equities - Large Cap 0.0 27.6.7 1. Australian Equities - Small Cap 4.0.6 0.5 4.0 Global Equities - Large Cap 19.0 19.8 2.7 22.5 Global Equities - Low Vol 7.0.5 0.5.9 Global Equities - Small Cap 5.0 4.4 0.6 5.0 Emerging Markets Equity 4.0.5 0.5.9 Property & Infrastructure Alternatives Growth Fixed Defensive Fixed Listed Property 2.0 0.9 0.1 1.0 Unlisted Property 6.0 5.8 0.8 6.5 Listed Infrastructure 2.0 0.8 0.1 1.0 Unlisted Infrastructure 5.0.2 0.4.6 Natural Resources 1.8 1.7 0.2 2.0 Private Equity 0.0 0.0 0.0 0.0 Sustainable Opps 0.0 0.0 0.0 0.0 Diversified Growth Funds 1.5 0.6 0.1 0.7 Hedge Funds 1.8 2.4 0. 2.8 Private Debt 2.0 0.8 0.1 0.9 High Yield/Multi Asset Credit 2.0 2. 0. 2.6 Emerging Markets Debt 1.0 0.0 0.0 0.0 Absolute Return Bonds 0.0 0.9 0.1 1.0 Global Credit 0.0 0.0 0.0 0.0 Australian Sovereigns 2.0 1.7 0.2 2.0 Global Sovereigns 2.0 0. 0.0 0. Inflation Plus 0.0 0.4 0.1 0.5 Cash 2.0 4.0 0.5 4.5 100.0 88.1 11.9 100.0 ** Refer to page 40 for more information on manager line up for this asset class Performance attribution this quarter (%) Asset Allocation 0.0 Stock/manager selection 0.0 Excess Return for quarter Before fees : 0.0 1

QUARTERLY ENDING DECEMBER 2015 DIVERSIFIED FUNDS MULTI SECTOR INCOME & DEFENSIVE MERCER INCOME PLUS FUND Objectives To achieve a return (before investment management fees) of at least 2.5% per annum above the return on bank bills as measured by the Bloomberg Bank Bill Index over rolling five year periods. MERCER MODERATE GROWTH FUND Objectives To achieve a return (after investment management fees) that exceeds CPI increases by at least.0% per annum over rolling four year periods. This objective for the four years to quarter end was 5.1% per annum. To achieve a return (over the medium to longer term) which is competitive with comparable funds that have a similar allocation to growth assets and similar risk characteristics. Total & Excess Returns Yrs 5 Yrs^ - Before fees (%) Total Returns: 2. 5.5 7.8 8. Benchmark Return* 0.5 2. 2.6.4 Excess Returns: +1.8 +.2 +5.2 +4.9 * Bloomberg Bank Bill Index Total Returns After fees (%) Total Returns: 1.6 4.2 6.7 7.7 ^Time horizon for this fund s objective (refer above) Shares Property & Infrastructure Alternatives Growth Fixed Defensive Fixed Asset Allocation (%) B mark Actual at quarter end Growth Defensive Total Australian Equities - Large Cap 18.0 5.9 12.6 18.5 Australian Equities - Small Cap 0.0 0.0 0.0 0.0 Global Equities - Large Cap 0.0 0.0 0.0 0.0 Global Equities - Low Vol 0.0 0.0 0.0 0.0 Global Equities - Small Cap 0.0 0.0 0.0 0.0 Emerging Markets Equity 0.0 0.0 0.0 0.0 Listed Property.0 0.8 1.8 2.6 Unlisted Property 4.0 1.4.1 4.5 Listed Infrastructure.0 0.8 1.7 2.6 Unlisted Infrastructure 4.0 0.8 1.7 2.5 Natural Resources 0.0 0.0 0.0 0.0 Private Equity 0.0 0.0 0.0 0.0 Sustainable Opps 0.0 0.0 0.0 0.0 Diversified Growth Funds 0.0 0.0 0.0 0.0 Hedge Funds 0.0 0.0 0.0 0.0 Private Debt 7.0 1.9 4.0 5.8 High Yield/Multi Asset Credit 17.0 5.5 11.7 17.2 Emerging Markets Debt 0.0 0.0 0.0 0.0 Absolute Return Bonds 5.0 1.9 4.1 6.0 Global Credit 5.0 1.9 4.1 6.0 Australian Sovereigns 10.0.2 6.7 9.9 Global Sovereigns 10.0 2.4 5.1 7.4 Inflation Plus 10.0. 7.1 10.4 Cash 4.0 2.1 4.4 6.5 100.0 2.0 68.0 100.0 Note: The Income Plus Fund has a different underlying investment manager configuration to the other Mercer Multi-Manager Funds. The Growth Defensive Enhanced process that applies to other Mercer Multi-Manager Funds has not been applied to the Mercer Income Plus Fund at this time. There is no corresponding core Fund for the Mercer Income Plus Fund. Performance attribution this quarter (%) Yrs Asset Allocation +0.6 Stock/manager selection +1.2 Excess Return for quarter Before fees : +1.8 5 Yrs^ Total & Excess Returns - Before fees (%) Excess Returns: -0. +1.4 +1.1 +0.9 *Composite benchmark of relevant indices Total Returns: 1.7 4.7 8. 9.1 ^ Time horizon for this fund s objective (refer above) Actual at quarter end Asset Allocation (%) B mark Growth Defensive Total Shares Property & Infrastructure Alternatives Growth Fixed Defensive Fixed Yrs Australian Equities - Large Cap 17.0 9.9 8.4 18. Australian Equities - Small Cap 2.0 1.1 0.9 2.0 Global Equities - Large Cap 9.0 6.8 5.7 12.5 Global Equities - Low Vol 6.0 1.6 1. 2.9 Global Equities - Small Cap 2.0 1.0 0.9 1.9 Emerging Markets Equity 2.0 1.0 0.8 1.9 Listed Property.0 1.1 0.9 2.0 Unlisted Property.0 1.8 1.5.4 Listed Infrastructure.0 1.1 0.9 1.9 Unlisted Infrastructure.0 0.8 0.7 1.5 Natural Resources 1.5 1.0 0.9 1.9 Private Equity 0.0 0.0 0.0 0.0 Sustainable Opps 0.0 0.0 0.0 0.0 Diversified Growth Funds 2.0 0.4 0.4 0.8 Hedge Funds 1.5 1.7 1.4.1 Private Debt 2.0 0.5 0.4 1.0 High Yield/Multi Asset Credit 2.0 1. 1.1 2.5 Emerging Markets Debt 1.0 0.0 0.0 0.0 Absolute Return Bonds 5.0.2 2.7 5.9 Global Credit 8.0 5. 4.5 9.8 Australian Sovereigns 8.0 4..6 7.9 Global Sovereigns 4.0 1.2 1.0 2. Inflation Plus 5.0.0 2.5 5.5 Cash 10.0 6.0 5.1 11.1 100.0 54. 45.7 100.0 ** Refer to page 40 for more information on manager line up for this asset class 4 Yrs^ Total Returns: 2.0 5.5 9.1 9.8 Benchmark Return* 2. 4.1 8.0 8.9 Total Returns After fees (%) Performance attribution this quarter (%) Yrs Asset Allocation -0.4 Stock/manager selection +0.1 Excess Return for quarter Before fees : -0. 4 Yrs^ 2

MERCER MULTI MANAGER FUNDS QUARTERLY REPORT DIVERSIFIED FUNDS MULTI SECTOR GROWTH MERCER CONSERVATIVE GROWTH FUND Objectives To achieve a return (after investment management fees) that exceeds CPI increases by at least 2.5% per annum over rolling three year periods. This objective for the three years to quarter end was 4.6% per annum. To achieve a return (over the medium to longer term) which is competitive with comparable funds that have a similar allocation to growth assets and similar risk characteristics. Total & Excess Returns - Before fees (%) Excess Returns: -0.1 +1. +0.9 +0.4 *Composite benchmark of relevant indices Total Returns: 1.1.9 5.9 6.0 ^ Time horizon for this fund s objective (refer above) Actual at quarter end Asset Allocation (%) B mark Growth Defensive Total Shares Yrs^ 5 Yrs Total Returns: 1.4 4.8 6.7 6.8 Benchmark Return* 1.5.5 5.8 6.4 Total Returns After fees (%) Yrs^ 5 Yrs Australian Equities - Large Cap 11.0 4. 7.9 12.2 Australian Equities - Small Cap 0.0 0.0 0.0 0.0 Global Equities - Large Cap 6.0.4 6. 9.8 Global Equities - Low Vol 5.0 0.7 1.2 1.9 Global Equities - Small Cap 0.0 0.0 0.0 0.0 Emerging Markets Equity 0.0 0.0 0.0 0.0 MERCER DEFENSIVE FUND Objectives To achieve a return (after investment management fees) that exceeds CPI increases by at least 2.0% per annum over rolling two year periods. This objective for the two years to quarter end was.8% per annum. To achieve a return (over the medium to longer term) which is competitive with comparable funds that have a similar allocation to growth assets and similar risk characteristics. Total & Excess Returns - Before fees (%) Excess Returns: -0.2 +0.8 +0.5 +0.9 *Composite benchmark of relevant indices Total Returns: 0. 2.7 4.4 4.4 ^ Time horizon for this fund s objective (refer above) Actual at quarter end Asset Allocation (%) B mark Growth Defensive Total Shares 2 Yrs^ Yrs Total Returns: 0.7.8 5.4 5.4 Benchmark Return* 0.9.0 4.9 4.5 Total Returns After fees (%) 2 Yrs^ Yrs Australian Equities - Large Cap 5.0 0.5 2.7.2 Australian Equities - Small Cap 0.0 0.0 0.0 0.0 Global Equities - Large Cap 0.0 0.0 0.0 0.0 Global Equities - Low Vol 5.0 1.0 5.9 6.9 Global Equities - Small Cap 0.0 0.0 0.0 0.0 Emerging Markets Equity 0.0 0.0 0.0 0.0 Property & Infrastructure Alternatives Growth Fixed Defensive Fixed Listed Property 2.0 0. 0.6 1.0 Unlisted Property.0 1.2 2.2.4 Listed Infrastructure 2.0 0. 0.6 0.9 Unlisted Infrastructure.0 0.5 0.9 1. Natural Resources 1.0 0.5 1.0 1.5 Private Equity 0.0 0.0 0.0 0.0 Sustainable Opps 0.0 0.0 0.0 0.0 Diversified Growth Funds 1.5 0. 0.5 0.7 Hedge Funds 1.5 1.0 1.9 2.9 Private Debt 2.0 0. 0.6 0.9 High Yield/Multi Asset Credit 2.0 0.9 1.6 2.5 Emerging Markets Debt 0.0 0.0 0.0 0.0 Absolute Return Bonds 4.0 1.7.2 4.9 Global Credit 6.0 2.7 4.9 7.6 Australian Sovereigns 12.0 4.1 7.5 11.5 Global Sovereigns 8.0 2.2 4.0 6.2 Inflation Plus 10.0.5 6.5 10.0 Cash 20.0 7. 1.4 20.7 100.0 5.2 64.8 100.0 Property & Infrastructure Alternatives Growth Fixed Defensive Fixed Listed Property 0.0 0.0 0.0 0.0 Unlisted Property 2.5 0.5 2.6.1 Listed Infrastructure 0.0 0.0 0.0 0.0 Unlisted Infrastructure 2.5 0.1 0.8 1.0 Natural Resources 0.0 0.0 0.0 0.0 Private Equity 0.0 0.0 0.0 0.0 Sustainable Opps 0.0 0.0 0.0 0.0 Diversified Growth Funds 0.0 0.1 0.7 0.8 Hedge Funds 0.0 0.0 0.0 0.0 Private Debt 0.0 0.0 0.0 0.0 High Yield/Multi Asset Credit 0.0 0.0 0.0 0.0 Emerging Markets Debt 0.0 0.0 0.0 0.0 Absolute Return Bonds 10.0 1.7 9.4 11.1 Global Credit 5.0 1.0 5.8 6.9 Australian Sovereigns 10.0 1.5 8.4 9.9 Global Sovereigns 10.0 1.2 6.6 7.8 Inflation Plus 10.0 1.5 8.7 10.2 Cash 40.0 5.9. 9.2 100.0 15.0 85.0 100.0 ** Refer to page 40 for more information on manager line up for this asset class Performance attribution this quarter (%) Asset Allocation 0.0 Stock/manager selection -0.1 Excess Return for quarter Before fees : -0.1 ** Refer to page 40 for more information on manager line up for this asset class Performance attribution this quarter (%) Asset Allocation -0.1 Stock/manager selection -0.1 Excess Return for quarter Before fees : -0.2

QUARTERLY ENDING DECEMBER 2015 MERCER SMARTPATH FUNDS MERCER SMARTPATH 1989-199 Objectives To achieve a return (after tax and investment management fees) that exceeds CPI increases by at least 4.5% per annum over rolling seven year periods. Total & Excess Returns - Before fees (%) Yrs Total Returns:.5 6.1 n/a Benchmark Return*.7 4. n/a Excess Returns: -0.2 +1.8 n/a *Composite benchmark of relevant indices Total Returns After fees & taxes (%) Yrs^ Total Returns:.4 5.2 n/a ^ Time horizon for this fund s objective (refer above) Asset Allocation (%) B mark Actual MERCER SMARTPATH 1984-1988 Objectives To achieve a return (after tax and investment management fees) that exceeds CPI increases by at least 4.5% per annum over rolling seven year periods. Total & Excess Returns - Before fees (%) Yrs (p.a) Total Returns:.5 6.0 n/a Benchmark Return*.7 4. n/a Excess Returns: -0.2 +1.7 n/a *Composite benchmark of relevant indices Total Returns After fees & taxes (%) Yrs^ Total Returns:.4 5. n/a ^ Time horizon for this fund s objective (refer above) Asset Allocation (%) B mark Actual Australian Equities - Large Cap 1.0 2. Australian Equities - Large Cap 1.0 2.0 Australian Equities - Small Cap 4.0 4.0 Australian Equities - Small Cap 4.0 4. Shares Global Equities - Large Cap 19.0 22.7 Global Equities - Low Vol 7.0.9 Shares Global Equities - Large Cap 19.0 22.7 Global Equities - Low Vol 7.0.9 Global Equities - Small Cap 5.0 4.9 Global Equities - Small Cap 5.0 4.9 Emerging Markets Equity 4.0 4.0 Emerging Markets Equity 4.0 4.0 Property & Infrastructure Listed Property 1.5 0.5 Unlisted Property 4.5 5.0 Listed Infrastructure 1.5 0.5 Unlisted Infrastructure 4.5.1 Property & Infrastructure Listed Property 1.5 0.5 Unlisted Property 4.5 5.1 Listed Infrastructure 1.5 0.5 Unlisted Infrastructure 4.5.2 Natural Resources 1.5 2.0 Natural Resources 1.5 2.0 Alternatives Private Equity 0.0 0.0 Sustainable Opps 0. 0.0 Diversified Growth Funds 1. 0.7 Alternatives Private Equity 0.0 0.0 Sustainable Opps 0. 0.0 Diversified Growth Funds 1. 0.7 Hedge Funds 1.0 1.5 Hedge Funds 1.0 1.4 Growth Fixed Private Debt 2.0 0.9 High Yield/Multi Asset Credit 2.0 2.5 Emerging Markets Debt 2.0 0.9 Growth Fixed Private Debt 2.0 0.9 High Yield/Multi Asset Credit 2.0 2.5 Emerging Markets Debt 2.0 1.0 Defensive Fixed Absolute Return Bonds 0.0 1.0 Global Credit 0.0 0.0 Australian Sovereigns.0.0 Global Sovereigns.0 0.8 Inflation Plus 0.0 0.5 Cash 2.0 5. 100.0 100.0 Defensive Fixed Absolute Return Bonds 0.0 1.0 Global Credit 0.0 0.0 Australian Sovereigns.0 2.9 Global Sovereigns.0 0.8 Inflation Plus 0.0 0.5 Cash 2.0 5. 100.0 100.0 ** Refer to page 40 for more information on manager line up for this asset class ** Refer to page 40 for more information on manager line up for this asset class 4

MERCER MULTI MANAGER FUNDS QUARTERLY REPORT MERCER SMARTPATH FUNDS MERCER SMARTPATH 1979-198 Objectives To achieve a return (after tax and investment management fees) that exceeds CPI increases by at least 4.5% per annum over rolling seven year periods. Total & Excess Returns - Before fees (%) Yrs Total Returns:.5 6.2 n/a Benchmark Return*.7 4. n/a Excess Returns: -0.2 +1.9 n/a *Composite benchmark of relevant indices Total Returns After fees & taxes (%) Yrs Total Returns:. 5.4 n/a ^ Time horizon for this fund s objective (refer above) Asset Allocation (%) B mark Actual MERCER SMARTPATH 1974-1978 Objectives To achieve a return (after tax and investment management fees) that exceeds CPI increases by at least 4.5% per annum over rolling seven year periods. Total & Excess Returns - Before fees (%) Yrs Total Returns:.5 6.2 n/a Benchmark Return*.7 4. n/a Excess Returns: -0.2 +1.9 n/a *Composite benchmark of relevant indices Total Returns After fees & taxes (%) Yrs Total Returns:.4 5. n/a ^ Time horizon for this fund s objective (refer above) Asset Allocation (%) B mark Actual Shares Australian Equities - Large Cap 1.0 2.0 Australian Equities - Small Cap 4.0 4. Global Equities - Large Cap 19.0 22.6 Global Equities - Low Vol 7.0 4.0 Global Equities - Small Cap 5.0 4.8 Shares Australian Equities - Large Cap 1.0 2.4 Australian Equities - Small Cap 4.0 4. Global Equities - Large Cap 19.0 22. Global Equities - Low Vol 7.0.8 Global Equities - Small Cap 5.0 4.7 Property & Infrastructure Alternatives Growth Fixed Emerging Markets Equity 4.0.9 Listed Property 1.5 0.5 Unlisted Property 4.5 4.9 Listed Infrastructure 1.5 0.5 Unlisted Infrastructure 4.5.1 Natural Resources 1.5 1.9 Private Equity 0.0 0.0 Sustainable Opps 0. 0.0 Diversified Growth Funds 1. 0.7 Hedge Funds 1.0 1.4 Private Debt 2.0 0.9 High Yield/Multi Asset Credit 2.0 2.5 Emerging Markets Debt 2.0 1.0 Property & Infrastructure Alternatives Growth Fixed Emerging Markets Equity 4.0.9 Listed Property 1.5 0.5 Unlisted Property 4.5 5.6 Listed Infrastructure 1.5 0.5 Unlisted Infrastructure 4.5.1 Natural Resources 1.5 1.8 Private Equity 0.0 0.0 Sustainable Opps 0. 0.0 Diversified Growth Funds 1. 0.7 Hedge Funds 1.0 1.5 Private Debt 2.0 1.0 High Yield/Multi Asset Credit 2.0 2.5 Emerging Markets Debt 2.0 1.0 Defensive Fixed Absolute Return Bonds 0.0 0.9 Global Credit 0.0 0.0 Australian Sovereigns.0 2.9 Global Sovereigns.0 0.8 Inflation Plus 0.0 0.5 Cash 2.0 5.9 100.0 100.0 Defensive Fixed Absolute Return Bonds 0.0 1.0 Global Credit 0.0 0.0 Australian Sovereigns.0 2.9 Global Sovereigns.0 0.8 Inflation Plus 0.0 0.5 Cash 2.0 5. 100.0 100.0 ** Refer to page 40 for more information on manager line up for this asset class ** Refer to page 40 for more information on manager line up for this asset class 5

QUARTERLY ENDING DECEMBER 2015 MERCER SMARTPATH FUNDS MERCER SMARTPATH 1969-197 Objectives To achieve a return (after tax and investment management fees) that exceeds CPI increases by at least 4.5% per annum over rolling seven year periods. Total & Excess Returns - Before fees (%) Yrs Total Returns:.5 6.2 n/a Benchmark Return*.7 4. n/a Excess Returns: -0.2 +1.9 n/a *Composite benchmark of relevant indices Total Returns After fees & taxes (%) Yrs Total Returns:.4 5.4 n/a ^ Time horizon for this fund s objective (refer above) Asset Allocation (%) B mark Actual MERCER SMARTPATH 1964-1968 Objectives To achieve a return (after tax and investment management fees) that exceeds CPI increases by at least 4.25% per annum over rolling seven year periods. Total & Excess Returns - Before fees (%) Yrs Total Returns:.4 6.2 n/a Benchmark Return*.9 4.7 n/a Excess Returns: -0.5 +1.5 n/a *Composite benchmark of relevant indices Total Returns After fees & taxes (%) Yrs Total Returns:. 5.5 n/a ^ Time horizon for this fund s objective (refer above) Asset Allocation (%) B mark Actual Shares Australian Equities - Large Cap 1.0 2.5 Australian Equities - Small Cap 4.0 4.1 Global Equities - Large Cap 19.0 22.9 Global Equities - Low Vol 7.0.8 Global Equities - Small Cap 5.0 4.8 Emerging Markets Equity 4.0.9 Shares Australian Equities - Large Cap 29.0 1.1 Australian Equities - Small Cap.6 4.1 Global Equities - Large Cap 18.2 21.6 Global Equities - Low Vol 6.6.4 Global Equities - Small Cap 4.6 4.4 Emerging Markets Equity.6.4 Property & Infrastructure Listed Property 1.5 0.5 Unlisted Property 4.5 5.5 Listed Infrastructure 1.5 0.5 Unlisted Infrastructure 4.5.1 Property & Infrastructure Listed Property 1.7 0.6 Unlisted Property 4. 5.5 Listed Infrastructure 1.7 0.6 Unlisted Infrastructure 4..0 Natural Resources 1.5 1.8 Natural Resources 1. 1.7 Alternatives Private Equity 0.0 0.0 Sustainable Opps 0. 0.0 Diversified Growth Funds 1. 0.7 Alternatives Private Equity 0.0 0.0 Sustainable Opps 0. 0.0 Diversified Growth Funds 1.6 0.7 Hedge Funds 1.0 1.5 Hedge Funds 1. 1.6 Growth Fixed Private Debt 2.0 1.0 High Yield/Multi Asset Credit 2.0 2.4 Emerging Markets Debt 2.0 1.0 Growth Fixed Private Debt 2.0 1.1 High Yield/Multi Asset Credit 2.0 2.6 Emerging Markets Debt 2.0 1.0 Defensive Fixed Absolute Return Bonds 0.0 0.9 Global Credit 0.0 0.0 Australian Sovereigns.0 2.9 Global Sovereigns.0 0.8 Inflation Plus 0.0 0.5 Cash 2.0 5.0 100.0 100.0 Defensive Fixed Absolute Return Bonds 0.8 1.8 Global Credit 0.8 1.4 Australian Sovereigns.8.7 Global Sovereigns.0 0.8 Inflation Plus 1.2 1.1 Cash 2.4 4.9 100.0 100.0 ** Refer to page 40 for more information on manager line up for this asset class ** Refer to page 40 for more information on manager line up for this asset class 6

MERCER MULTI MANAGER FUNDS QUARTERLY REPORT MERCER SMARTPATH FUNDS MERCER SMARTPATH 1959-196 Objectives To achieve a return (after tax and investment management fees) that exceeds CPI increases by at least.75% per annum over rolling six year periods. Total & Excess Returns - Before fees (%) Yrs Total Returns: 2.8 5.6 n/a Benchmark Return*.1 4.1 n/a Excess Returns: -0. +1.5 n/a *Composite benchmark of relevant indices Total Returns After fees & taxes (%) Yrs Total Returns: 2.7 4.9 n/a ^ Time horizon for this fund s objective (refer above) Asset Allocation (%) B mark Actual MERCER SMARTPATH 1954-1958 Objectives To achieve a return (after tax and investment management fees) that exceeds CPI increases by at least.25% per annum over rolling five year periods. Total & Excess Returns - Before fees (%) Yrs Total Returns: 2. 4.8 n/a Benchmark Return* 2.7.8 n/a Excess Returns: -0.4 +1.0 n/a *Composite benchmark of relevant indices Total Returns After fees & taxes (%) Yrs Total Returns: 2. 4.2 n/a ^ Time horizon for this fund s objective (refer above) Asset Allocation (%) B mark Actual Shares Australian Equities - Large Cap 24.6 26.0 Australian Equities - Small Cap 2.8.0 Global Equities - Large Cap 15.6 19.6 Global Equities - Low Vol 6.0 2.8 Global Equities - Small Cap.6.6 Emerging Markets Equity 2.8 2.7 Shares Australian Equities - Large Cap 21.1 22.7 Australian Equities - Small Cap 2. 2. Global Equities - Large Cap 12.1 16.0 Global Equities - Low Vol 6.0.0 Global Equities - Small Cap 2.6 2.7 Emerging Markets Equity 2. 2. Property & Infrastructure Listed Property 2.0 1.0 Unlisted Property.8 4.4 Listed Infrastructure 2.0 1.1 Unlisted Infrastructure.8 2.5 Property & Infrastructure Listed Property 2.0 1.0 Unlisted Property..8 Listed Infrastructure 2.0 0.9 Unlisted Infrastructure. 1.9 Natural Resources 1.2 1.5 Natural Resources 1.5 1.9 Alternatives Private Equity 0.0 0.0 Sustainable Opps 0.2 0.0 Diversified Growth Funds 2.0 0.7 Alternatives Private Equity 0.0 0.0 Sustainable Opps 0.0 0.0 Diversified Growth Funds 2.0 0.7 Hedge Funds 1.7 2.2 Hedge Funds 1.5 2.0 Growth Fixed Private Debt 1.8 0.8 High Yield/Multi Asset Credit 2.0 2.7 Emerging Markets Debt 1.8 0.9 Growth Fixed Private Debt 1.5 0.4 High Yield/Multi Asset Credit 2.0 2.6 Emerging Markets Debt 1.5 0.5 Defensive Fixed Absolute Return Bonds 2.4.2 Global Credit 2.8 4.1 Australian Sovereigns 5.8 5.8 Global Sovereigns.4 1.5 Inflation Plus 4.2 4.7 Cash.8 5.4 100.0 100.0 Defensive Fixed Absolute Return Bonds.8 4.8 Global Credit 4.8 6.1 Australian Sovereigns 7.4 7.2 Global Sovereigns 4.8.1 Inflation Plus 6.4 6.9 Cash 5.8 6.9 100.0 100.0 ** Refer to page 40 for more information on manager line up for this asset class ** Refer to page 40 for more information on manager line up for this asset class 7

QUARTERLY ENDING DECEMBER 2015 MERCER SMARTPATH FUNDS MERCER SMARTPATH 1949-195 Objectives To achieve a return (after tax and investment management fees) that exceeds CPI increases by at least 2.75% per annum over rolling four year periods. Total & Excess Returns - Before fees (%) Yrs Total Returns: 1.9 4.7 n/a Benchmark Return* 2..5 n/a Excess Returns: -0.4 +1.2 n/a *Composite benchmark of relevant indices Total Returns After fees & taxes (%) Yrs Total Returns: 1.9 4.1 n/a ^ Time horizon for this fund s objective (refer above) Asset Allocation (%) B mark Actual MERCER SMARTPATH 1944-1948 Objectives To achieve a return (after tax and investment management fees) that exceeds CPI increases by at least 2.5% per annum over rolling four year periods. Total & Excess Returns - Before fees (%) Yrs Total Returns: 1.4 4.0 n/a Benchmark Return* 1.9.2 n/a Excess Returns: -0.5 +0.8 n/a *Composite benchmark of relevant indices Total Returns After fees & taxes (%) Yrs Total Returns: 1.5.6 n/a ^ Time horizon for this fund s objective (refer above) Asset Allocation (%) B mark Actual Shares Australian Equities - Large Cap 18.0 19. Australian Equities - Small Cap 1.8 1.7 Global Equities - Large Cap 8.0 12.0 Global Equities - Low Vol 6.0 2.8 Global Equities - Small Cap 1.8 1.8 Emerging Markets Equity 1.8 1.8 Shares Australian Equities - Large Cap 16.5 17.7 Australian Equities - Small Cap 1.5 1.6 Global Equities - Large Cap 5.0 8.6 Global Equities - Low Vol 6.0.0 Global Equities - Small Cap 1.5 1.5 Emerging Markets Equity 1.5 1.4 Property & Infrastructure Listed Property 2.0 1.0 Unlisted Property 2.8. Listed Infrastructure 2.0 1.0 Unlisted Infrastructure 2.8 1.5 Property & Infrastructure Listed Property 2.0 1.0 Unlisted Property 2.5.1 Listed Infrastructure 2.0 0.8 Unlisted Infrastructure 2.5 1.1 Natural Resources 1.5 1.9 Natural Resources 1.5 2.0 Alternatives Private Equity 0.0 0.0 Sustainable Opps 0.0 0.0 Diversified Growth Funds 2.0 0.7 Alternatives Private Equity 0.0 0.0 Sustainable Opps 0.0 0.0 Diversified Growth Funds 2.0 0.7 Hedge Funds 1.5 2.1 Hedge Funds 1.5 2.0 Growth Fixed Private Debt 1.5 0.4 High Yield/Multi Asset Credit 2.0.0 Emerging Markets Debt 1.5 0.5 Growth Fixed Private Debt 1.5 0.5 High Yield/Multi Asset Credit 2.0 2.6 Emerging Markets Debt 1.5 0.5 Defensive Fixed Absolute Return Bonds 5.8 6.8 Global Credit 6.8 7.9 Australian Sovereigns 8.0 7.9 Global Sovereigns 6.0 4. Inflation Plus 8.2 8.6 Cash 8.2 9.8 100.0 100.0 Defensive Fixed Absolute Return Bonds 7.0 7.9 Global Credit 8.0 9.9 Australian Sovereigns 8.0 8.1 Global Sovereigns 6.0 4.4 Inflation Plus 10.0 10.4 Cash 10.0 11.2 100.0 100.0 ** Refer to page 40 for more information on manager line up for this asset class ** Refer to page 40 for more information on manager line up for this asset class 8

MERCER MULTI MANAGER FUNDS QUARTERLY REPORT CLOSED FUNDS The Funds on this and the following page were closed to new investors during the second quarter of 2010. They remain open to new investments by existing investors only. MERCER AUSTRALIAN LISTED PROPERTY FUND Investment performance Total & Excess Returns (%) Total Returns Before fees : 6.1 14.2 15.5 15.1 Benchmark* Return : 6.0 14. 15.9 15. Excess Return Before fees : +0.1-0.1-0.4-0.2 *S&P/ASX 200 Property Trusts Accumulation Index Total Returns After fees : 6.0 1.6 15.4 14.9 Manager performance Proportion of assets managed at quarter end (Mercer Growth) Manager % Macquarie True Index Aust Listed 100.0 Manager Returns Relative to Fund Benchmark* (+ or - %) - Before fees Managers Macquarie True Index Aust Listed +0.1-0.1-0.4-0.2 *S&P/ASX 200 Property Trusts Accumulation Index 9

IMPORTANT NOTES ABOUT THIS REPORT Throughout this report, please note that: Past performance is not a reliable indicator of future performance. Only Mercer Multi-Manager Funds (MMFs) that were invested in at the end of the quarter are reported on. Total returns are based on exit prices. Total returns are shown both before and allowing for deduction of investment management fees. Excess returns relative to the benchmark are calculated by the difference between performance (before investment management fees) and the asset-weighted benchmark return. Asset weights used are those shown in the MMFs Product Disclosure Statement (PDS) and Investment Policy Statement (IPS) as relevant. The benchmark used for each Fund is noted in the summary of its before-fees performance. As noted, for certain Funds (i.e. those invested in multiple sectors) a composite of the relevant benchmarks applies. Benchmark refers to an asset allocation benchmark that currently applies only to certain Funds. In this report, the Benchmark is used in respect of the asset allocations for the following: The underlying investment manager line ups of the diversified multi-sector Funds and the closed Mercer Property Fund also include managers who have passive mandates in respect of listed property and listed infrastructure as shown below. These managers are only relevant to the diversified multi-sector Funds (and the closed Mercer Property Fund in respect of listed property). Manager Returns Relative to Fund Benchmark* (+ or - %) - Before fees Managers Listed Property Macquarie 0.0 +0.1-0. n/a Listed Infrastructure Macquarie Investment 0.0 0.0-0.2-0. Returns throughout this report may be subject to rounding error. Mercer Shares Fund Mercer Growth & Mercer Growth Plus Mercer High Growth Fund Mercer Moderate Growth Fund Mercer Conservative Growth Fund Mercer Defensive Fund (Closed) Mercer Fixed Fund The Benchmark falls within the asset allocation benchmark range specified in the PDS. Performance attribution refers to another way of deriving the excess return. With performance attribution, the performance above or below the benchmark return can be attributed to two factors: 1. Asset allocation: the degree to which actual asset allocation varies from the benchmark asset allocation. 2. Stock/manager selection: the degree to which returns achieved by underlying managers in the various asset classes vary from the relevant benchmark returns for those asset classes. Performance (before investment management fees) may be provisional depending on information available at the time of publication and may be subject to adjustment. As mentioned in the PDS, the diversified Funds may also include opportunistic investments. However, no such investments were held at quarter end. 40

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Investors should be aware that the value of an investment in any MMF may rise and fall from time to time and that neither MIAL nor any related companies guarantees the investment performance, earnings or return of capital invested in any MMF. If you are investing directly into any MMF, you will need to complete an application form included in, or accompanying, a current Mercer Multi-Manager Funds Product Disclosure Statement which is issued by and available from MIAL. If you are investing indirectly into an MMF through an Investor Directed Portfolio Service (IDPS) or an IDPS-like service (such as a master trust, wrap account, custody or nominees service) (Service) you will need to complete the forms or documents your Service provider requires. The information contained in this Report is of a general nature only and does not take into account the personal objectives, financial situation or needs of individual investors. It is important that you consider these matters, read the: (a) current MMF Product Disclosure Statement if you are investing directly; or (b) current Product Disclosure Statement for any MMF issued by MIAL, together with the Product Disclosure Statement and/or any other offer documents applicable to your Service (available from your Service provider) if you are investing indirectly into an MMF through a Service, and obtain personal financial advice from a licensed, or appropriately, authorised financial adviser. The investment returns shown for any MMF throughout this Report do not take into account the unique characteristics that apply to each investor (such as timing of cash flow). As a result, the actual investment returns applying to a particular investor may differ from the investment returns shown in this Report. You should also remember that past performance should not be relied upon as an indicator of future performance. Copyright 2016 Mercer LLC. All rights reserved. Report Finalised: 11 February 2016

FOR FURTHER INFORMATION General enquiries t: 1800 512 947 e: Australia.multimanager@mercer.com www.mercer.com.au