Perpetual : Diversified Real Return Fund receives rating upgrades

Media Release

Real return investing proves increasingly attractive in challenging market

The Perpetual Diversified Real Return Fund (Fund) has received a 'Recommended'1 rating from rating agencies Zenith Investment Partners (Zenith), and Lonsec Research (Lonsec), in recognition of its strong performance and experienced team.23

Zenith's and Lonsec's confidence is underpinned by the well-resourced investment team and strong collegiate environment upheld by Perpetual Investment's Head of Multi Asset Michael O'Dea.

As at 31 December 2016, the Perpetual Diversified Real Return Fund returned 9.0% p.a. (before fees and taxes) exceeding the CPI+5%p.a. objective by 1.9% p.a. over a five year period.4

The Fund has also delivered volatility of just 3.4% p.a. compared to the Mercer Balanced Growth Median Fund of 6.3% p.a. since inception.5

The Fund leverages Perpetual's 20 years of success in active asset allocation, and is managed by a six-person investment team with an average of 17 years' industry experience.

Mr O'Dea said that in his opinion the upgrades were testament to the team's expertise and ability to deliver attractive returns and protect capital during periods of market volatility.

"Multi-asset investing continues to be increasingly attractive to investors seeking investment opportunities which balance the desire for return with risk management.

"This year will likely once again be challenging, with ongoing uncertainty over the post-US election outlook and potentially rising bond yields," said Mr O'Dea.

Mr O'Dea believes the current environment is an ideal time for investors to explore multi- asset offerings to diversify and protect their portfolio against such risks.

"Perpetual's Diversified Real Return Fund is designed to act as a 'shock absorber' during periods of extreme volatility, offering a simple solution for investors looking to diversify their portfolio without sacrificing the potential for growth," said Mr O'Dea.

1 'Recommended' products are deemed strong investments within their respective asset class, typically rating first quartile on most criteria. Source: Zenith.

2 Source: Lonsec, Fund Review: Diversified Real Return Fund; Zenith Product Assessment: Perpetual Diversified Real Return Fund

3 Ratings is only one factor to be taken into account when deciding whether to acquire or hold units in the Fund.

4 Source: Perpetual, FactSet. Australian CPI is at 31 December 2016. Past performance is not indicative of future performance.

5 Source: Perpetual, Mercer MPA Investment Performance Survey of Wholesale - Balanced Growth as at 31

December 2016.

The Fund has a broad investment universe and employs an objective-based approach, allowing the team to alter the asset allocation in response to market changes and risk expectations.

"Perpetual has a proven value investing philosophy that has stood the test of time. With market volatility expected to continue, we expect this Fund will increasingly be an important part of client investment strategies moving forward," said Mr O'Dea.

Daniel Wright

Phone: (02) 9229 9893

Email: Daniel.wright@perpetual.com.au

Perpetual is a financial services group operating in funds management, financial advisory and trustee services. Our origin as a trustee company, coupled with our strong track record of investment performance, has created our reputation as one of the strongest brands in financial services in Australia. For further information, go to www.perpetual.com.au

This information has been prepared by Perpetual Investment Management Limited (PIML) ABN 18

000 866 535, AFSL 234426. It is general information only and is not intended to provide you with financial advice or take into account your objectives, financial situation or needs. You should consider, with a financial adviser, whether the information is suitable for your circumstances. To the extent permitted by law, no liability is accepted for any loss or damage as a result of any reliance on this information.

The relevant product disclosure statement for Perpetual Diversified Real Return Fund ARSN 146 128 191 (Fund) issued by PIML should be considered before deciding whether to acquire or hold units in the Fund. The relevant PDS can be obtained by calling 1800 062 725 or visiting www.perpetual.com.au. No company in the Perpetual Group (Perpetual Limited ABN 86 000 431 827 and its subsidiaries) guarantees the performance of any fund or the return of an investor's capital. Past performance is not indicative of future performance.

The Lonsec Rating (assigned January 2017) presented in this document is published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445. The Rating is limited to "General Advice" (as defined in the Corporations Act 2001 (Cth)) and based solely on consideration of the investment merits of the financial product(s). Past performance information is for illustrative purposes only and is not indicative of future performance. It is not a recommendation to purchase, sell or hold Perpetual Investment Management Limited product(s), and you should seek independent financial advice before investing in this product(s). The Rating is subject to change without notice and Lonsec assumes no obligation to update the relevant document(s) following publication. Lonsec receives a fee from the Fund Manager for researching the product(s) using comprehensive and objective criteria. For further information regarding Lonsec's Ratings methodology, please refer to our website at: http://www.beyond.lonsec.com.au/intelligence/lonsec- ratings

The Zenith Investment Partners ("Zenith") Australian Financial Services License No. 226872 rating (assigned October 2016) referred to in this document is limited to "General Advice" (s766B Corporations Act 2001) for Wholesale clients only. This advice has been prepared without taking into account the objectives, financial situation or needs of any individual and is subject to change at any time without prior notice. It is not a specific recommendation to purchase, sell or hold the relevant product(s). Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs. Investors should obtain a copy of, and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website. Past performance is not an indication of future performance. Zenith usually charges the product issuer, fund manager or related party to conduct Product Assessments. Full details regarding Zenith's methodology, ratings definitions and regulatory compliance are available on our Product Assessments and at: http://www.zenithpartners.com.au/RegulatoryGuidelines