Morgan Stanley Global Franchise Fund

The Morgan Stanley Global Franchise Fund (the Fund) is a managed fund that invests primarily in a mix of international shares typically in Europe and North America. They are shares of companies that are listed on various stock exchanges around the world, other than in Australia. The Fund may also have some exposure to cash and derivatives.

What is the objective of the Fund?

The Morgan Stanley Global Franchise Fund is a specialist global investment product with an objective which seeks to achieve attractive long term returns by investing in international shares. The Fund is managed by Morgan Stanley Investment Management (the "Manager"), a leading global investment manager with more than US$402.8 billion of investment assets under management for clients all over the world. The Fund is managed in accordance with Morgan Stanley's "Global Franchise" investment strategy, which offers a concentrated portfolio of approximately 20 - 40 companies that the Manager considers demonstrate exceptional quality and value, and which the Manager believes warrant long term investment.

Investors should note that as the Fund is new it has no performance history.

What benefits does the Fund offer?

The Fund provides the potential for the following key benefits:

• attractive long term returns
• higher returns and lower volatility than traditional benchmarks;
• a bias towards capital preservation, as demonstrated historically by the Global Franchise investment strategy's positive annual returns before fees in US dollars for each calendar year since the inception of the strategy.

How does the Fund differ from more traditional international share funds?

Unlike many traditional international share funds, the Fund is not managed with a top-down investment approach, which has country and sector allocations defined by a specific benchmark.

Instead, a bottom-up approach is adopted which leads the Manager to seek out companies offering quality and value in absolute terms.

The Manager aims to identify a focused group of companies offering what they define as "great franchise businesses", to create a concentrated portfolio of 20 - 40 stocks.

Investments in the Morgan Stanley Global Franchise Fund ARSN 111 759 712 ("Fund") are offered by Macquarie Investment Management Limited ABN 66 002 867 003 ("MIML").

This information is general advice only and has been prepared without taking into account the individual objectives, financial situation or needs of any particular investor. Before making a decision to invest in the Fund on the basis of this information, investors should read the Fund's product disclosure statement ("PDS") and consider, with or without their financial adviser, whether it fits their objectives, financial situation and needs. Applications for units in the Fund can only be made on an application form contained in the current PDS.

Investments in the Fund are not deposits with or other liabilities of Macquarie Bank Limited ABN 46 008 583 542 or any Macquarie Group company and are subject to investment risk, including possible delays in repayment and loss of income or principal invested. None of Macquarie Bank Limited, MIML or any other Macquarie Group company guarantees the performance of the Fund or the repayment of capital from the Fund or any particular rate of return.

Any financial product advice provided by us is free of charge. MIML may receive remuneration for distributing financial products issued by other Macquarie Group companies.