MERCER PORTFOLIO SERVICE MONTHLY REPORT

MERCER PORTFOLIO SERVICE MONTHLY REPORT MAY 206 Mercer Superannuation (Australia) Limited ABN 79 004 77 533 Australian Financial Services Licence # 235906 is the trustee of the Mercer Portfolio Service Superannuation Plan ABN 92 8 844 838. Mercer Investments (Australia) Limited ABN 66 008 62 397 Australian Financial Services Licence #244385 is the Responsible Entity of the Mercer Portfolio Service Investment Plan. MERCER is a registered trademark of Mercer (Australia) Pty Ltd ABN 32 005 35 97.

FINANCIAL MARKETS UPDATE Markets posted another positive month in May, continuing the recovery after the weak start to the year. Economic data releases were mixed across the developed markets, but were more positive in emerging markets. US data was reasonably positive in May, and had led to increasing expectations for a US rate increase at the next Federal Reserve meeting in mid-june. This provided renewed support for the US dollar during May. In the event, however, a weaker US payrolls in early June has seen expectations again wound back, with any rate increase once again delayed. A key focus of markets has been the outcome of the approaching UK vote on whether to stay or leave the European Union on 23 June, which has seen increasing uncertainty. In Australia economic news was positive, led by the March quarter GDP result showing better-than-expected annual growth of 3.%, supporting equity markets. AUSTRALIAN SHARES Australian shares advanced in May with the S&P/ASX 300 Accumulation Index returning 3.%. Unlike April performance was fairly evenly spread across sectors, with Financials excluding Property (5.2%) and Healthcare (9.4%) up, while Materials (-3.0%) and Consumer Staples (-0.9%) fell. The small caps sector outperformed large caps, with the Small Ordinaries Accumulation Index returning 4.% in May. INTERNATIONAL SHARES International shares returned 6.0% in unhedged and.9% in hedged ($A) terms. Global Small Caps returned 6.7% and Emerging Markets.4% (both in A$ unhedged terms). Looking at individual country returns in the month (all in local currency terms), in the US the S&P500 returned.5% and the Nasdaq 3.6%, while Canada was up 0.8%. European markets were mixed, with Germany +2.2% and France +.7%, while Italy was down 3.% and the UK down 0.2%. Japan was up 3.4% (Nikkei) but Hong Kong fell.2%. Emerging market shares were generally weaker, with Brazil down 0.% (after +7.7% in April), Turkey -8.8% and Russia - 2.8%. Strong performers were India +4.0% and South Africa +3.2% REAL ASSETS Real asset sector performance was positive in May, supported by declining bond yields, with Global Listed Infrastructure returning.0% and Global Listed Property.5% (in A$ hedged terms). Agricultural Commodities had a strong month, returning 6.6%, while Broad Commodities fell 0.2% (both in A$ hedged terms). FIXED INTEREST Following the very low Australian inflation outcome for the March quarter released in late April, the Reserve Bank moved to cut the Australian cash rate from 2% to.75% on 3 May. Elsewhere major central banks left interest rates on hold. Ten-year bond yields were steady in the US at.83%, but fell in the UK (-7bps to.44%), Germany (-3bps to 0.5%) and Japan (-4bps to - 0.%). Two-year sovereign bond yields increased in the US (+0bp to 0.87%), but fell in Germany (-5bps to -0.52%), the UK (-9bps to 0.43%) and Japan flat with yields at -0.24%. Yields also fell in Australia, with twoyear yields down 7bps to.70% and ten-year yields down 22bps to 2.30%. As a result, Global Sovereign Bonds returned.03% ($A hedged), Australian Sovereign Bonds +.37%, Global Credit 0.30% (A$ hedged) and Emerging Markets Debt -0.39% ($A unhedged). CURRENCY The A$ depreciated 4.9% against the US$ in May as the cut in the RBA cash rate reduced the attractiveness of the AUD. The US$ appreciated 2.9% against the Euro and 4.0% against the Yen. The A$ depreciated.% against the Japanese Yen and 2.% against the Euro to end the month 3.3% lower on a trade-weighted basis.

MERCER PORTFOLIO SERVICE MAY 206 TOTAL RETURNS (%) AFTER FEES The Managed Investments (Investments) shown in this report are a group of those Investments available through the Mercer Portfolio Service Superannuation and Investment Plans. For a full list of Investments currently available for investment through the Plans, please refer to the Investment Selection form available from your Mercer financial adviser or by calling Mercer Portfolio Client Services on 800 04 577. FUND MONTH 6 MONTHS YEAR 3 5 SHARES Mercer Australian Shares Fund 3.7 5.5-2. 7.2 6.8 Mercer Australian Shares Plus Fund 4.0 5.4 -.6 7.2 6.6 Mercer Australian Small Companies Fund 3. 5.2 3.5 6.4 3.3 Mercer International Shares Fund 6.0 0.6 2.0 6.6 4.0 Mercer International Shares Plus Fund 4.9-0.4-0.5 5.6 3.0 Mercer Hedged International Shares Fund.9-0.3-3.5 9.4 9.5 Mercer Hedged International Shares Plus Fund.9-0.3-4. 9.2 9.0 Mercer Global Small Companies Fund 6.6 -.5 0. 7.2 5.4 Mercer Global Low Volatility Shares Fund 4.8-0.7-0.5 4.5 n/a Mercer Emerging Markets Fund 2.2 0.5-3.0 4.0 3.2 Mercer Shares Fund 4.2 2.6 -.8 0.0 9. Mercer Socially Responsible Australian Shares Fund 3.3 4.2-0.5 8.9 8.8 REAL ASSETS Mercer Global Listed Property Fund.2 3.0 2.2 0. 0.6 Mercer Global Listed Infrastructure Fund 0.9 5.9.6 3.3 3.4 Mercer Global Natural Resources Fund 0.7 5. -3.6-3.5-4. ALTERNATIVES Mercer Diversified Alternatives Fund 0. -2.4-5.4 2.5 3.2 FIXED INTEREST Mercer Australian Sovereign Bond Fund 2.4 4.2 4.7 5.2 6.3 Mercer Global Sovereign Bond Fund 2.3 4.2 6.4 7. 7.8 Mercer Australian Inflation Plus Fund 0.2 0.0-0.2.5 3.8 Mercer Global Credit Fund 0.3 4.3 4.9 6.0 7.9 Mercer Emerging Markets Debt Fund -0.2 5. -2.6 0.3 n/a CASH Mercer Cash Fund Cash Units 0.2.0 2. 2.5 3. Mercer Cash Fund Term Deposit Units 0.2. 2.3 2.7 3.4 MULTI-SECTOR FUNDS Mercer Growth Fund 2.7 2.5 0.9 8.5 8.2 Mercer Growth Plus Fund 2.7 2.7 0.6 7.7 7.6 Mercer High Growth Fund 3. 2.6 0.3 8.6 8.2 Mercer Income Plus Fund.3 3.4 4.0 6.4 7.6 Mercer Moderate Growth Fund 2.2 2.5.8 7.2 7.2 Mercer Conservative Growth Fund.6 2.2 2.3 5.5 5.9 Mercer Defensive Fund 0.9 2.2 2.5 4.4 5. CLOSED FUNDS 3 Mercer Australian Listed Property Fund 2.9 6.6 5.0 6.4 6.7 Past performance is not a reliable indicator of future performance.. Total Returns (After Fees) are before tax, administration and expense allowance, but after investment management fees and assume reinvestment of income. Returns greater than one year are shown on an annualised basis. 2. Performance history includes the returns of the fixed interest fund from which this fund has evolved. 3. Further investment in these funds is at the discretion of the Responsible Entity. They are closed to new investors, but additional investments by existing investors may be permitted. 2

EXCESS RETURNS (%) BEFORE FEES * FUND 6 3 5 MONTH MONTHS YEAR SHARES Mercer Australian Shares Fund +0.7-0.6 +0.9 +0.6 +0.6 Mercer Australian Shares Plus Fund +.0-0.5 +.9 +0.8 +0.5 Mercer Australian Small Companies Fund -0.8-6.6-2.0 +0.4 +4. Mercer International Shares Fund +0. +.3 +0.6 +0.2-0.4 Mercer International Shares Plus Fund +0.2 +.4 +0.2 +0.2-0.7 Mercer Hedged International Shares Fund +0. +.2 +0.3 +0.3-0.4 Mercer Hedged International Shares Plus Fund +0.2 +.3-0. +0. -0.8 Mercer Global Small Companies Fund +0. -2.5 -.5 +0.6 +.4 Mercer Global Low Volatility Shares Fund -.2-0.5 -.5-2.0 n/a Mercer Emerging Markets Fund +0.9 +.2 +0.9 +0.7 +. Mercer Shares Fund +0.6 0.0 +0.4 +0.5 +0.5 Mercer Socially Responsible Australian Shares Fund +0.2 -.8 +2.4 +2.4 +2.8 REAL ASSETS Mercer Global Listed Property Fund -0. -. -. +.2 +0.6 Mercer Global Listed Infrastructure Fund +0. -0.2 +0.3 +0.6 +0.5 Mercer Global Natural Resources Fund +0.4 +0.5 +0. +.2 +0.8 ALTERNATIVES Mercer Diversified Alternatives Fund 0.0-2.9-6.3 +.5 +.3 FIXED INTEREST Mercer Australian Sovereign Bond Fund 2 +0. +0.2 +0.3 +0.4 +0.2 Mercer Global Sovereign Bond Fund 2 +0.3-0.7 +0.2 +0.7 +0.8 Mercer Australian Inflation Plus Fund +0. -0.3 -.2-0. 0.0 Mercer Global Credit Fund 0.0 +0. +0.2 +0.4 +0.9 Mercer Emerging Markets Debt Fund +0.3-0.3-2.8 -.6 n/a CASH Mercer Cash Fund Cash Units 0.0 +0. +0.3 +0.3 +0.3 Mercer Cash Fund Term Deposit Units 0.0 +0. +0.4 +0.5 +0.6 MULTI-SECTOR FUNDS Mercer Growth Fund +0.5-0. +0.2 +.2 +.0 Mercer Growth Plus Fund +0.4-0.2 +0.7 +.4 +.0 Mercer High Growth Fund +0.5-0.2 +0. +0.7 +0.7 Mercer Income Plus Fund +.2 +2.9 +2.7 +4.9 +5. Mercer Moderate Growth Fund +0.5-0.2 0.0 +. +0.9 Mercer Conservative Growth Fund +0.4-0.2-0.2 +0.9 +0.6 Mercer Defensive Fund +0. +0.3 +0.3 +0.9 +0.6 CLOSED FUNDS 3 Mercer Australian Listed Property Fund +0.2 +0. +0. -0.2-0.5 Past performance is not a reliable indicator of future performance. * Excess Returns Relative to Benchmark (Before Fees) are calculated before fees and before taxes, and represent difference between each Model Choice portfolio and its own asset-weighted asset class benchmark. Asset weights used are those shown in the Fund s Product Disclosure Statement and Investment Policy Statement, as relevant. Returns greater than one year are shown on an annualised basis. 2. Performance history includes the returns of the fixed interest fund from which this fund has evolved. 3. Further investment in these funds is at the discretion of the Responsible Entity. They are closed to new investors, but additional investments by existing investors may be permitted.

MERCER PORTFOLIO SERVICE MAY 206 MODEL CHOICE PORTFOLIOS UNDERLYING FUND RETURNS (%) - BEFORE FEES AND TAXES^ FUND MONTH 6 MONTHS YEAR 3 5 SHARES Mercer Australian Shares Plus Fund 4. 6. -0.2 8.5 7.8 Benchmark: S&P/ASX 300 Accumulation Index 3. 6.6-2. 7.7 7.3 Mercer International Shares Fund 6.. 2.2 7.4 4.9 Benchmark: MSCI World Index (ex Aust) in $A with net dividend reinvested 6.0-0..6 7.2 5.3 Mercer Hedged International Shares Fund 2.0 0. -2.7 0.7 0.9 Benchmark: MSCI World ex Aust Net AUD (Hedged).9 -. -3.0 0.4.2 Mercer Emerging Markets Fund 2.3.3-2. 5. 3.9 Benchmark: MSCI Emerging Markets Index.4 0. -3.0 4.4 2.8 REAL ASSETS Mercer Global Listed Property Fund.3 3.6 3.2..7 Benchmark: FTSE EPRA/NAREIT Developed Index in $A (Hedged) 2.5 4.7 4.2 9.9. Mercer Global Listed Infrastructure Fund.0 6.7 2.6 4.2 4.2 Benchmark: FTSE Global Core Infrastructure 50/50 Index 0.9 6.9 2.3 3.6 3.7 Mercer Global Natural Resources Fund 0.7 5.5-2.8-2.6-3.2 45% DJ UBS Commodity Index (hedged to A$); 5% S&P Goldman Sachs Agricultural Index; 40% CPI + 5% 3 0.4 5.0-2.9-3.8-4.0 ALTERNATIVES Mercer Diversified Alternatives Fund 0.2 -.7-4.0 4. 4.5 Benchmark: Bloomberg Bank Bill Index 0.2.2 2.3 2.5 3. FIXED INTEREST Mercer Australian Sovereign Bond Fund *.5 4.5 5. 5.6 6.6 Benchmark: Bloomberg Australian Treasury Bond Index 0+ (All Maturities).4 4.3 4.8 5.2 6.3 Mercer Global Sovereign Bond Fund *.3 4.3 6.7 7.5 8.2 Benchmark: JP Morgan Customised Index 4.0 5.0 6.5 6.8 7.5 Mercer Australian Inflation Plus Fund 5 0.3 0.2 0.3 2. 4.3 Benchmark: CPI 0. 0.5.5 2.2 4.2 Mercer Global Credit Fund 0.3 4.5 5.3 6.5 8.3 60% Barclays Global Aggregate + 40% Barclays Ex Govr ex Treas 0.3 4.4 5.0 6.0 7.5 CASH Mercer Cash Fund 0.2.3 2.5 2.9 3.5 Benchmark: Bloomberg Bank Bill Index 0.2.2 2.3 2.5 3. Past performance is not a reliable indicator of future performance. ^ Underlying Fund Returns (Before Fees and Taxes) are based on information supplied by the underlying investment managers. These returns are before tax and investment management fees and assume reinvestment of all distributions. No representation is given, warranty made or responsibility taken as to the accuracy or completeness of information from external sources. * Performance history includes the returns of the fixed interest fund from which this fund has evolved.. Returns greater than one year are shown on an annualised basis. 2. Prior to October 202, Mercer Listed Property Fund was benchmarked against the UBS Investors Index - in $A (Hedged). Therefore, the calculations for longer period benchmark returns are inclusive of this data. 3. Prior to March 202, Mercer Natural Resources Fund was benchmarked against the composite benchmark made up of 75% DJ UBS Commodity Index (Hedged in $A) and 25% S&P Goldman Sachs Agricultural Index. Therefore, the calculations for longer period benchmark returns are inclusive of this data. 4. Prior to November 203, Overseas Sovereign Bonds was benchmarked against 50% JP Morgan Global Government Bond Index in A$ Hedged and 50% JP 4

MODEL CHOICE PORTFOLIOS TOTAL RETURNS (%) - AFTER FEES^ PORTFOLIO MONTH 6 MONTHS YEAR 3 5 0 MULTI-SECTOR DIVERSIFIED PORTFOLIOS Growth 2.5 2.8 0.3 7.9 7.7 High Growth 3.0 2.8-0.6 8.7 8.3 Split Growth 4. 2.7 -.4 0.2 9.2 Balanced.8 2.6.0 6.3 6.6 Moderate.2 2.5 2.0 5.2 5.8 Defensive 0.8 2.3 2.6 4.2 5. SECTOR PORTFOLIOS Australian Shares 4.0 5.4 -.6 7.2 6.6 International Shares 6.0 0.6 2.0 6.6 4.0 4.7 4.4 4.3 4.8 5. 5.2 4.2 3.6 MODEL CHOICE PORTFOLIOS EXCESS RETURNS (%) - BEFORE FEES * PORTFOLIO MONTH 6 MONTHS YEAR 3 5 0 MULTI-SECTOR DIVERSIFIED PORTFOLIOS Growth +0.4 0.0 +0.3 +0.6 +0. High Growth +0.4 +0. +0.4 +0.6 +0.3 Split Growth +0.6 +0.4 +. +0.5 +0.2 Balanced +0.3 0.0 +0. +0.5 +0.2 Moderate +0.2 0.0 +0. +0.4 +0.3 Defensive +0. 0.0 0.0 +0.4 +0.2 SECTOR PORTFOLIOS Australian Shares +.0-0.5 +.9 +0.8 +0.5 International Shares +0. +.3 +0.6 +0.2-0.4-0.3-0.3-0.4-0. +0.2 +0.2 +0. -0.6 Past performance is not a reliable indicator of future performance. ^ Total Returns (After Fees) are before tax, administration and expense allowance, but after investment management fees and assume reinvestment of income. Returns greater than one year are shown on an annualised basis. * Excess Returns Relative to Benchmark (Before Fees) are calculated before fees and before taxes, and represent difference between each Model Choice portfolio and its own asset-weighted asset class benchmark. Asset weights used are those shown in the Fund s Product Disclosure Statement and Investment Policy Statement, as relevant. Returns greater than one year are shown on an annualised basis.

For further information t: 300 728 928 e: Australia.multimanager@mercer.com Investors?????. Copyright 202 Mercer LLC. All rights reserved. This report has been prepared by Mercer Investments (Australia) Limited (MIAL) ABN 66 008 62 397, Australian Financial Services Licence #244385 on behalf of Mercer Superannuation (Australia) Limited (MSAL) ABN 79 004 77 533, Australian Financial Services Licence #235906 which is the trustee of the Mercer Portfolio Service Superannuation Plan ABN 92 8 844 838 and a wholly owned subsidiary of Mercer (Australia) Pty Ltd (Mercer) ABN 32 005 35 07. MSAL has appointed MIAL as fund manager of the Mercer Portfolio Service Investment Plan and MIAL is also the Responsible Entity of the Mercer Portfolio Service Investment Plan. You should be aware that the value of an investment in any of the Model Choice Portfolios or Market Choice Managed Investments offered through the Superannuation Plan or Investment Plan may rise and fall from time to time and that neither MIAL, MSAL nor Mercer guarantee the investment performance, earnings or return of capital invested in any of the Model Choice Portfolios. To invest in the Superannuation Plan or Investment Plan, you will need to complete an application form included in, or accompanying, a current Superannuation Plan or Investment Plan Product Disclosure Statement issued by, and available from, MIAL. 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 current Superannuation Plan Product Disclosure Statement or Investment Plan Product Disclosure Statement and obtain financial advice from a licensed or appropriately authorised financial advisor before making any investment decision. The investment returns shown for the Model Choice Portfolios or Market Choice Managed Investments throughout this Report do not take into account the unique characteristics applied 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 returns shown in this Report. Mercer financial advisers are authorised representatives of Mercer Financial Advice (Australia) Pty Ltd (MFA) ABN 76 53 68 293, Australian Financial Services Licence #4766. Report issued: 7 June 206 Copyright 206 Mercer LLC. All rights reserved. FOR FURTHER INFORMATION Contact your Mercer Financial Adviser, or call the Mercer Financial Advice Helpline on : 300 793 58 7