Preparation date2 November 2015

Issued by the TrusteePFS Nominees Pty LtdABN AFSL

The FundNational Australia Bank GroupSuperannuation Fund AABN

Annual Report for theNational Australia Bank Group

Superannuation Fund A

This Annual Report is an update on how your money is investedand a reminder of some of the things you should know.

For an update on your investment options, login online intoyour member account or contact us on .

Contents

A year in review

Looking out for your interests

Some things you should know

Administering your account

How your money is invested

Financial information

How to contact us

A year in review

The financial yearwas another year of solidperformance, particularlyfor global share andproperty securitiesinvestors. Interest ratesremained at historicallylow levels around theglobe for much of the year,resulting in modest returnsfor fixed income investors.By keeping interest rateslow, Central banks in manycountries attempted toencourage investmentin assets that generateeconomic growth.

While global economic growth improved, questions remained about therobustness of the recovery, and conditions varied widely across countries. Slowingdemand from China for our commodities was a key driver of the modest returnsfrom Australian shares this year.

With the unpredictability of the market, the rising cost of living and increased lifeexpectancy, it’s never been more important than now to ensure that you have aholistic wealth strategy in place – one that will ensure you live comfortably nowand into your retirement.

We know that your needs change over time, that’s why our super and insurancesolutions are designed to grow with you. Our investment menu offers multi-classportfolios and single asset class funds, so you can tailor your investment strategyto suit your personal financial objectives and risk appetite. You can help protectyour wealth and lifestyle with insurance, to achieve a wealth strategy to suit yourneeds in a cost effective way.

We continue to enhance the online tools available to you, to help you grow yourwealth and save for your retirement.

Nicole SmithChairPFS Nominees Pty LimitedTrustee of the National Australia Bank Group Superannuation Fund A

The directors of the TrusteeBoard have a variety ofwork and life experienceswhich help them representyour interests.

Made up of non-executive directors,the Trustee Board is responsible forthe management of the Fund. TheTrustee’s duties include:

• providing investment choice

• ensuring your interests aremaintained, and

• keeping you informed of anychanges.

The Trustee Board has professionalindemnity insurance, and hasappointed Plum Financial ServicesLimited (ABN ) to carryout the day-to-day administration ofthe National Australia Bank GroupSuperannuation Fund A (Fund).

Looking out foryour interests

Meet the BoardThe directors are:

Nicole Smith – Chair

BFA , CAGAICD

Michael Clancy

B Bus (Finance and Economics) CFA

John Reid

B Sc. (Mathematics and Physics) FIA (UK) and FIAAGAICD

Peggy O’Neal

BA (Virginia) JD (Virginia) Diploma of Superannuation Management (Macquarie) FAICD

Trevor Hunt

B Bus (Accounting and Economics)

Evelyn Horton

B Economics Master of Social Sciences (Economics) GAID

Terry McCredden

B Commerce (Honours)

Looking out foryour interests

Trustee directormovementsFor this reporting period, there wereno changes to Trustee directors.

Indemnity insuranceWe are entitled to be indemnifiedagainst all liabilities that we mayincur in the administration ofthe Fund, unless we have actedfraudulently, dishonestly, out of wilfulmisconduct or have breached a civilpenalty provision under the relevantlegislation or in other circumstanceswhere an indemnity is not permittedat law.

We hold professional indemnityinsurance in relation to our activitiesas Trustee.

Deed of guaranteeWe are required by legislation to eithermaintain particular levels of capital,or to be entitled to the benefit of anapproved guarantee. To meet thisrequirement, we have been providedwith a Deed of Guarantee by theNational Australia Bank Limited. Weare entitled to a guarantee of up to$ million in respect of our duties asTrustee of the Fund and the Plum PST.

Operational risk reserve(ORR)We are required to keep a financialreserve to cover any losses thatmembers incur due to a breakdownin operations.

The ORR is invested in the investmentoption shown below.

Operational risk reserveinvestment strategy

Option Proportion (%)

Growth %

The balance of the ORR at the endof the last three financial years issummarised below:

Year ended June

Fund reserve ($)

,,

,,

n.a.

Annual auditEach year we are audited by anindependent company.

We’re pleased to report we’ve met allour obligations and received a cleanaudit report.

Policy CommitteeThe role of the Policy Committee isto raise matters of concern that relateto the Fund. This includes providingan avenue for members to enquireabout the investment strategy andperformance of the Fund and assistingus in dealing with complaints orenquiries about the operation ofthe Fund.

Member-elected

Employer-appointed

Ann Hayhoe Lynda Dean

Elly Grace Victor Brusco

Laureen Zippel Katie Modra

We have a set of rules for theappointment and removal of employerand member representatives of thePolicy Committee. These rules providefor equal representation of memberand employer representatives.Member representatives are generallyelected by members and are typicallyappointed for a period of threeyears. Employer representatives areappointed by your employer for aperiod determined by your employer.

Following a Policy Committee electionduring the year, Ann Hayhoe, EllyGrace and Laureen Zippel were electedas member representatives of theFund. The employer representativesappointed by NAB were Lynda Dean,Victor Brusco and Katie Modra.

Some things youshould know

Eligible rollover funds(ERFs)ERFs are approved by the AustralianPrudential Regulation Authority(APRA). They generally have moreconservative investments than othersuperannuation funds, which mayresult in lower long term returns.

If you are entitled to a benefit of lessthan $, you will be given days(from the date we write to you afteryour employer notifies us that youhave left employment) to advise uswhere to transfer your benefit. If youdo not advise an alternative fund, wewill pay your benefit to the Trustee’snominated ERF in the following days. We may also transferyour benefit to the ERF in othercircumstances permitted by law.

The ERF will hold your transferredbenefit until you claim it. You will nothave any claim against us once yourbenefit has been transferred to an ERFbecause your Fund membership willhave ceased. Your insurance cover (ifany) will cease. The rules of the ERFwill govern your benefit once it hasbeen transferred.

Our current ERF is the AustralianEligible Rollover Fund which can becontacted on or bywriting to:

Australian Eligible Rollover FundLocked Bag PARRAMATTA NSW

If your benefit is transferred to anERF and if we can provide the ERFwith your contact details, the ERFwill provide you with its currentProduct Disclosure Statement (PDS).Alternatively, you can contact the ERFfor a copy of its PDS.

The ERF will apply a different feestructure than that of the Fund. Youshould refer to the ERF’s PDS for moreinformation.

Unclaimed moniesWe must pay your benefit to the ATOunder the Superannuation (UnclaimedMoney and Lost Members) Act incertain circumstances, including if:

• all the following apply to you:

– you have reached the eligibilityage specified in the regulations(currently )

– we have not received acontribution on your behalf forat least two years, and

– after a period of five years sincewe last contacted you, we areunable to contact you againafter making reasonable efforts;

• it meets the definition of a ‘small’or ‘insoluble’ lost member account,or

• you are a former temporaryresident and we receive a writtennotice from the ATO directingpayment to be made (refer below).

Temporary residentIf you are a former temporary resident,your lump sum benefit is taken to beunclaimed super monies if:

• you held a temporary visa that hasceased to have effect and you haveleft Australia

• it has been at least six months sincethe visa ceased to be in effect and/or you left Australia

• the Fund has received a TemporaryResident Notification from theATO instructing the monies betransferred

• you are neither an Australiancitizen nor a New Zealand citizen

• you are not a permanentresident or currently the holderof a temporary, permanent orprescribed visa, and

• you do not have an undeterminedapplication for a permanent visa.

If you are a former temporary residentwho has left Australia and your visahas expired or been cancelled, youcan claim your superannuation fromthe Fund as a Departing AustraliaSuperannuation Payment (DASP).Contact us on for furtherinformation on how to initiate a DASP.

However, if you do not claim yourbenefit within six months of becomingeligible to do so, we will pay yourbenefit to the ATO if we receive awritten notice from the ATO directingpayment to be made. In this event,you have a right to apply to theCommissioner of Taxation for paymentof the DASP.

The Australian Securities andInvestments Commission (ASIC) hasprovided relief to superannuationtrustees to the effect that a trustee isnot obliged to notify, or give an exitstatement to, a former temporaryresident where the trustee paysunclaimed superannuation to the ATOin accordance with the applicablelegislation requirements. We wishto rely on this relief. Consequently,members who are departed formertemporary residents will not benotified in the event of their benefitsbeing transferred to the ATO inthese circumstances.

Administering your account

Trustee expensesWe may be reimbursed for costs andexpenses relating to the establishment,operation, management,administration, investment andtermination of the Fund including tax,insurance costs and any fees or chargesimposed by, or paid by, the Fund.

In addition, we may retain all or aproportion of the interest earnedon the Fund’s bank accounts to paytrustee and Fund expenses.

We also have the right to beindemnified in certain circumstancesfor any liability incurred while actingas trustee.

Unpaid contributionsWe work with employers to assistthem in understanding theirsuperannuation obligations. While wedo this to assist both employers andmembers, you should ensure that allexpected contributions are creditedto your member account. If you haveany queries regarding a possiblecontribution shortfall, please contactyour employer or us on .

Retained BenefitsAccount facilityShould you leave NAB, the Fund hasa Retained Benefits Account (RBA)facility that allows you to maintainyour membership of the Fund,including continuation of your Deathand Total and Permanent Disablementcover. The RBA can accept your leavingservice benefit and any subsequentcontributions from you, your spouseor your future employers. It can alsoaccept superannuation lump sums youmay wish to transfer from other funds.

There is no maximum investment inthe RBA; however there is a minimuminvestment of $,. Withdrawals ofunrestricted non-preserved moniesmay be made with a minimumwithdrawal amount of $,

applying and subject to the minimuminvestment being maintained.

The fee applicable to the RBA facilitycompares favourably against othersimilar products. There are no entryor exit fees, with a low administrationfee of $. per week and amanagement fee of .% p.a. basedon your account balance. In addition,investments costs between .% and.% (indicative only) are deductedprior to the unit prices being issuedand earnings credited to members’account.

Spouse Account FacilityThe Fund also has a Spouse Accountfacility to enable members’ spouses tojoin the Fund.

The Fund can accept a Spouse of anexisting member as a member uponreceipt of a spouse contribution fromthe existing member. From there, theFund can accept personal or employercontributions for the spouse as wellas spouse contributions paid by theirspouse. In some cases, a member maybe eligible for a maximum tax offset(rebate) of $ where they contributea spouse contribution to their lowincome or non-working spouse’saccount. Superannuation lump sumstransferred from other funds may alsobe accepted.

Fees charged for spouse accounts areidentical as those for RBA members asoutlined above.

Allocation of earningsIf you have an accumulation accountwith investment choice available, theinvestment earnings (which may bepositive or negative) are reflected dailyin the unit price of your investmentoption(s) (so the price goes up withpositive investment earnings and goesdown if there are investment losses).The unit price for an investment optionreflects the total dollars held in that

investment option divided by thenumber of units issued, and the valueof your account depends on the valueof the unit price and the number ofunits you hold.

If you have a defined benefit account,additional information regarding theallocation of earnings is contained inyour Member benefit statement.

If the Fund has reserves, this will bestated in the Reserve section. Wewill invest the reserves in accordancewith the investment strategy set outin the Defined benefit investmentstrategy section.

InsuranceThe insured benefits from the Fund areprovided under a policy of insurancebetween us and MLC Limited.

The level of cover is subject to terms,conditions, restrictions, adjustmentsand offsets (if any) imposed under thepolicy by the insurer.

Contributions taxand surchargeMost types of concessionalcontributions made into a regulatedsuperannuation fund are taxedat the rate of %. In some caseshigher rates apply. This includesemployer contributions (includingsuperannuation guarantee), before-taxmember (salary sacrifice) contributionsand any untaxed elements rolled overinto the Plan. Contributions tax iscalculated and deducted at Juneand December from your account.

The Superannuation ContributionsSurcharge (Surcharge) was removed inrelation to contributions made from July . However a Surcharge liabilitymay still arise in respect of relevantcontributions made in prior years.

If you are an accumulation member,the surcharge (when paid by us) isdeducted from your account andreported in your Member benefitstatement.

If you are a defined benefit member,the surcharge will be paid on yourbehalf and recorded in a surchargedebt account established in your name(accruing interest as determined by us).

The total of that debt account heldin the Fund will be deducted fromyour benefit when the benefit is paidfrom the Fund. The amount of anysurcharge debt account (if applicable)will be shown on your Member benefitstatement.

Defined benefitsAs described in the Fund benefitssection, your defined benefit may bepartly funded by your own personalcontributions and contributions madeby your employer as determined bythe Fund Actuary. The Fund Actuarywill determine the level at which youremployer needs to contribute towardsthe funding of these benefits.

The assets supporting defined benefitsexist to meet benefit payments, feesand insurance premiums in respectof defined benefits. The assets areinvested in an investment strategydetermined by us in consultation withyour employer.

The strategy for the investment ofdefined benefit assets is shown below.

Defined benefit investment strategy

Option Proportion (%)

Growth %

Fund reserveA Fund reserve exists within the Fund.The reserve may be used to meetdefined benefit entitlements, fees andinsurance premiums of Plan members,according to the governing rules ofthe Fund and in consultation withyour employer.

The reserve is invested in thestrategy described in Defined benefitinvestment strategy.

The balance of the Plan reserve at theend of the last three financial years issummarised below:

Year ended June

Fund reserve ($)

,,

,,

n.a.

Financial position –defined benefitsThe Fund Actuary assessed thefinancial position of the Fund at June and determined that thedefined benefit assets of the Fundwere in a satisfactory position.

Trust Deed amendments

An amendment was made to theTrust Deed effective December relating to the Policy Committee.The purpose of the amendmentwas to allow the establishment ofa Policy Committee.

SIS complianceNo penalty was imposed against us orany director under the SuperannuationIndustry (Supervision) (SIS) Act during the reporting period.

Frequent switchingYou should not invest in the Fund ifyou intend to switch your investmentsfrequently in the pursuit of short-termgains.

We monitor all investment options forabnormal activity because this sort ofactivity can have adverse impacts forother members.

To maintain equity, the Trustee hasthe right to deal with members whofrequently switch by:

• delaying, limiting or rejecting theirfuture switch requests

• cancelling membership, or

• transferring their account balanceto the Australian Eligible RolloverFund.

Administeringyour account

How your money is invested

In this section we tell youhow the Trustee investsyour money

One of the Trustee’s responsibilitiesis to make sure your investments aremanaged according to an agreedinvestment strategy and objective.

Investment strategyOur investment strategy is to makeavailable a range of investmentoptions with different risk, return,liquidity and diversification profilesand to encourage members to choosean investment option, or combinationof options, that best suit their personalcircumstances. We generally investyour superannuation monies in theinvestment options of your choice.

The investment options allowinvestments in a diverse range of assetclasses including international andAustralian shares, property securities,fixed interest securities and cash.

Investment objectiveOur investment objective is to providea selection of investment optionsso you can invest according to yourindividual needs and circumstances.

Investment optionsThe investment options available maychange at any time and informationabout the current investment optionsis available on our website.

For more detailed information aboutthe current investment optionsincluding their investment objectivesand investment returns, refer to theInvesting in NABGSF document. Youcan access the current Investing inNABGSF by logging into your onlinemember account or contact us on .

You can also find more informationabout your investment returns on yourMember benefit statement.

Investment managersJANA

We’ve appointed JANA InvestmentAdvisers (JANA) to advise us on ourInvestment Menu. It is one of theleading investment consultants inAustralia with over A$ billion fundsunder advice and A$ billion fundsunder management (at December). JANA is a wholly ownedsubsidiary of National Australia Bank(NAB).

JANA employs experts in puttingtogether portfolios for people. Theystructure portfolios to deliver morereliable returns in many potentialmarket environments. And, as theirview of world markets changes, theyevolve the portfolios to manage newrisks and capture new opportunities.

They have both internal investmentmanagement expertise, and theexperience and resources to findsome of the world’s best investmentmanagers.

And they provide regular insight andupdates on the performance of theinvestment options.

JANA’s investment approach can besummarised as follows:

• JANA believes it is possible toreduce risk and outperform over thelong term by taking advantage ofoccasional large divergences fromfair value in investment markets.

• Through diligent hands-onresearch, it is possible toselect managers capable ofoutperforming over the long term.While above-average ability insecurity selection is a prerequisitein most asset classes, managersmust also exhibit a disciplinedprocess and style and this shouldbe reflected in the qualities andmindset of its personnel.

• To be of real value, researchneeds to be implemented with fullcommitment and not sit on thefence.

Investment managers

The Fund offers a wide range ofinvestment options managed by thefollowing investment managers.

Investment managers as at June

JANA Investment Advisers

Lend Lease Real Estate InvestmentsLimited

LGT Capital – Crown GlobalSecondaries

DerivativesDerivatives may be used in any of theinvestment options.

Derivatives are contracts that have avalue derived from another sourcesuch as an asset, market index orinterest rate. There are many types ofderivatives including swaps, optionsand futures. They are a commontool used to manage risk or improvereturns.

Some derivatives allow investmentmanagers to earn large returns fromsmall movements in the underlyingasset’s price. However, they can loselarge amounts if the price movementin the underlying asset is unfavourable.

Investment managers, have derivativespolicies which outline how derivativesare managed. JANA’s policy is availableby contacting us on .

We invest most of the assets of theFund in the investment options of yourchoice. We do not invest directly inderivatives. Investments in derivativesmay be made by the investmentmanagers appointed by us as Trusteefor the purposes of managing theirportfolio (investment options).

The investment managers are notpermitted to use financial derivativesto leverage the performance of theportfolio beyond that which could beobtained if derivatives were not used.At no time in the reporting period didour use of the derivative charge ratioexceed %.

How your moneyis invested

Financial information

The abridged Fundaccounts provided belowhave been taken from theFund’s Financial Reportfor the year ended June. A full copy of theFund’s audited FinancialReport, the auditor’s reportand other relevant Fundinformation is availablefrom us on request.

National Australia Bank Group Superannuation Fund AStatements of changes in net assets for the financial year ended June

($’) ($’)

Investment income

Interest

Distribution income , ,

Changes in the net market valuesof investments

, ,

Other investment income

Net investment revenue , ,

Contribution revenue

Employers' contributions , ,

Members' contributions , ,

Government co-contributions

Transfers from other funds , ,

Total contribution revenue , ,

Other income

Group life insurance proceeds , ,

Other revenue

Total other income , ,

Total revenue , ,

Benefits paid , ,

Expenses

Administration fees , ,

Group life insurance premiums , ,

Custody fees and investment managementexpenses

Trustee fees

Other operating expenses , ,

Total expenses , ,

Change in net assets before income tax , ,

Income tax expense , ,

Change in net assets after income tax , ,

Change in net assets attributable tomembers of the fund

, ,

Net assets available to pay benefits andreserves at the beginning of the year

,, ,,

Net assets available to pay benefits andreserves at the end of the year

,, ,,

Statements of net assets at June

($’) ($’)

Assets

Cash and cash equivalents , ,

Life policies# ,, ,,

Unlisted unit trusts# , ,

Trade and other receivables , ,

Total Assets ,, ,,

Liabilities

Trade and other payables , ,

Benefits payable , ,

Deferred tax liability , ,

Investment purchase payables , ,

Current tax liabilities , ,

Total liabilities (excluding net assetsavailable to pay benefits)

, ,

Net assets available to pay benefitsand reserves

,, ,,

Represented by:

Net assets available to pay benefits ,, ,,

Operational risk reserves , ,

Net assets available to pay benefitsand reserves

,, ,,

Statement of Fund assets by investment portfolio

Investment options

As at June As at June

Amount ($)

Investmentoptions in

excess of % ofFund assets (%) Amount ($)

Investmentoptions in

excess of % ofFund assets (%)

MySuper Default option

NABGSF MySuper ,,,. ,,,.

Diversified options

Capital Stable Option ,,. ,,.

Balanced Option ,,. ,,.

Growth Option ,,. ,,.

High Growth Option ,,,. ,,.

Sector-specific options

Cash Option ,,. ,,.

Fixed interest Option ,,. ,,.

Australian Shares Option ,,. ,,.

Overseas Shares Option ,,. ,,.

Closing assets^# ,,,. ,,,.

^The closing assets amount calculated at June may vary slightly due to rounding.#The closing assets amount calculated as at June is made up of Life Policies and Unlisted Unit Trusts as disclosed in the Statementof net assets.

Financial information

Contact usCall us on between am and pmAEST (pm daylight savings time), Monday toFriday if you have any queries or concerns aboutyour superannuation.

More informationIf you would like more information ordocuments such as a Product DisclosureStatement, Financial Report, Actuarial Reportextracts, or any other information about theFund, please contact us on .

You can also write to us:

Financial Services LimitedGPO Box Melbourne VIC

PFS Nominees Pty Limited ABN 16 082 026 480 AFSL 243357. Part of the National Australia Bank Group of Companies. An investment withPFS Nominees Pty Limited is not a deposit or liability of, and is not guaranteed by National Australia Bank Limited ABN 12 004 044 937AFSL 230686 (NAB). NAB does not guarantee or otherwise accept any liability in respect of this product.

A120462-1015