How your money is invested Derivatives Understanding your investment Derivatives may be used in any of the investment performance options. We offer many products, most of which offer a range Derivatives are contracts that have a value derived of investment options for you to invest in. The from another source such as an asset, market index investment performance of the Fund is determined or interest rate. There are many types of derivatives by reference to the investment performance of each including swaps, options and futures. They are a product and its investment option(s). Investment common tool used to manage risk or improve returns. options can invest in a range of assets, and different Some derivatives allow investment managers to earn types of assets will perform differently in different large returns from small movements in the market conditions. In your product, you may get to underlying asset’s price. However, they can lose large choose the investment options for your super (and, amounts if the price movement in the underlying accordingly, the assets that the Fund is invested in). asset is unfavourable. The investment performance of your investment option(s) is allocated to your account. You should Risks particular to derivatives include the risk that refer to your annual statement for the year ended 30 the value of a derivative may not move in line with June 2023 for details of the investment performance the underlying asset, the risk that counterparties to of your investment option(s). the derivative may not be able to meet payment Alternatively, information on the performance of obligations and the risk that a particular derivative most investment options is available at mlc.com.au/ may be difficult or costly to trade. fundprofiletool. Our Derivatives Policy permits the use of derivatives Some investment options are closed to additional in MLC investment options where consistent with and new investment. If you're invested in a closed an investment option’s objective, risk profile, investment option, it may not be referred to in the disclosure and governing documents, legislative and current Investment Menu or in a current Product regulatory requirements. They may be used for: Disclosure Statement for your product. hedging efficient portfolio management, and investment return generation. Further information on our Derivatives Policy is available at mlc.com.au/derivativesforsuper How the external investment managers invest in derivatives is included in their PDS, available at mlc. com.au/findafund in the 'External funds' tab. 14 | MLC Super Fund 2023 Annual Report