Effective from 2 November 2009
A number of BTIM diversified funds have a small proportion of their assets invested in the BT Global Return Fund (GRF) as one source of exposure to alternative assets. A list of the BTIM diversified funds is set out below.

The GRF was terminated effective 21 April 2009 in accordance with its constitution. Since the termination, the assets in the Fund are being realised in an orderly manner and the proceeds distributed to unitholders (including the BTIM diversified funds) in the form of capital returns as quickly as is reasonably possible.

Since the termination, the GRF is no longer being managed in accordance with its original investment objective. However, BTIM has regularly monitored and considered whether it remains practicable to maintain its currency hedging program. BTIM has now determined that it is in the best interests of unitholders to discontinue GRF’s currency hedging program, effective 2 November 2009 as this will allow a quicker return of capital to unitholders as well as removing uncertainty around the ability to maintain the hedging strategy.

Discontinuing the GRF’s foreign currency hedging strategy will introduce foreign exchange rate risk to the small proportion of your assets invested in the BTIM diversified funds with effect from 2 November 2009. This means that an appreciation of the Australian dollar relative to the US dollar after 2 November 2009 may negatively impact the investment value and returns of the investment in GRF, which from that date will be denominated in US dollars. However, a depreciation of the Australian dollar relative to the US dollar after 2 November 2009 may have a positive impact.

As capital is released from the GRF, it will be deployed by the BTIM diversified funds into other alternative strategies and opportunities subject to each fund’s guidelines. In the meantime, the BTIM diversified funds will continue to receive investment returns from their remaining holdings in the GRF.

Affected BTIM diversified funds:

• BT Active Balanced PST
• BT Balanced Returns PST
• BT Conservative Outlook PST
• BT DIY Active Balanced PST
• BT Institutional Conservative Growth PST
• BT Institutional Conservative Growth Tax Exempt Fund
• BT Institutional Retirement PST
• BT Institutional Stable Growth PST
• BT Super Trust – Capital Stable Fund
• BT Super Trust – Investment Fund
• BT Wholesale Active Balanced Fund
• BT Wholesale Balanced Returns Fund
• BT Wholesale Conservative Outlook Fund
• BT Wholesale Future Goals Fund