NAB Market Select Fund - an overview of the choice of investment classes
Investors have the flexibility to choose from one or more of the following investment opportunities relating to the Fund.
Australian Equities Class: S&P/ASX 200 Price Index
The S&P/ASX 200 Price Index ("S&P/ASX 200") is a market-capitalisation weighted and float-adjusted stock market index of Australian stocks listed on the Australian Securities Exchange ("ASX") from Standard & Poor's. It was launched on 31 March 2000. The listed entities it references account for approximately 78% of total Australian listed equity market capitalisation as at 1st April 2011.
The S&P/ASX 200 Price Index is calculated according to the market price of the relevant securities rather than on an accumulation basis - this means the S&P/ASX 200 Price Index doesn't assume all dividends are reinvested. Rather, it just takes account of the market price of the relevant securities at the time.
The S&P/ASX 200 Price Index is maintained by the S&P Australian Index Committee, consisting of Standard & Poor's economists and ASX representatives.
For more information on the S&P/ASX 200, including information about its historical performance, pricing and company information, Investors can visit ASX's website at www.asx.com.au or Standard & Poor's website at www.standardandpoors.com.au.
The Responsible Entity makes no recommendation, representation or assurance about the performance or prospects of the S&P/ASX 200 Price Index. The following graph sets out general information about the past performance of the S&P/ASX 200 Price Index as at 1st April 2011.
Greater China Equities Class
The Greater China Equities Class is composed of an equal weighted basket of:
- the Hang Seng China Enterprises Index;
- the Hang Seng Index;
- the MSCI Taiwan Index; and
- the MSCI Singapore Free Index.
Investors should note that there is some overlap between the constituent entities of the Hang Seng China Enterprises Index and the Hang Seng Index, and as such the performance of these indices may be similar. Investors should also be aware that some of these indices are selected from countries that are emerging markets and have special risks associated with them, including significant macroeconomic, systemic and other risks not found in more developed markets. Emerging markets can be regulated differently to developed markets, and can be more volatile than developed markets.
Commodities Class: Dow Jones - UBS
Commodity Index
The DJ-UBSCI is a diversified index quoted in USD that, as at the date of this PDS, is composed of a selection of 19 futures contracts on physical commodities which are traded on multiple exchanges. Futures contracts represent a contract to buy the relevant commodity at a certain date in the future for a particular price. As these futures approach expiration, the DJ-UBSCI replaces them with similar contracts that have a later expiration to avoid physical delivery of the assets but to "roll" on the same exposure. The price of these futures contracts is an indicator of the market value of the relevant commodity.
The DJ-UBSCI provides broad-based exposure to commodities as an asset class, since no single commodity or commodity sector dominates the DJ-UBSCI.
The 23 Commodities eligible for inclusion in the DJ-UBSCI are aluminium, cocoa, coffee, copper, corn, cotton, crude oil, gold, heating oil, lead, lean hogs, live cattle, natural gas, nickel, platinum, silver, soybean oil, soybeans, sugar, tin, unleaded gas, wheat and zinc.
With the exception of several metals contracts (aluminium, lead, tin, nickel and zinc) that trade on the London Metals Exchange ("LME"), each of the commodities is the subject of a futures contract in the DJ-UBSCI trades on a U.S. exchange.
The weightings of individual commodities and sectors aim to promote diversification. The DJUBSCI is reviewed annually and rebalanced on a pricepercentage basis. This is based on a combination of the relative liquidity and production percentages of each of the commodities, adjusted to provide diversified exposure to commodities as an asset class. The top three commodities, Crude Oil, Gold and Natural Gas represent approximately 35% of the DJ-UBSCI as at 1st April 2011.
For more information about its historical performance, pricing and information about the DJ-UBSCI sponsor, you can visit Dow Jones's website.
The Responsible Entity makes no recommendation, representation or assurance about the performance or prospects of the DJ-UBSCI. The following graph sets out general information about the past performance of the Dow Jones - UBS Commodity Index as at 1st April 2011.