Long Form PDS NZ Master Shell - Bentham Asset · PDF file · 2017-03-24AboutthisProductDisclosureStatement(PDS) ThisdocumentprovidesinformationtohelpinvestorsandtheiradvisersassessthemeritsofinvestingintheBenthamWholesale

Bentham Wholesale Global Income Fund

Product Disclosure Statement1 March 2017

Bentham Wholesale Global Income FundARSN 105 898 271APIR CSA0038AU

Responsible EntityFidante Partners Services LimitedABN 44 119 605 373AFSL 320505

About this Product Disclosure Statement (PDS)

This document provides information to help investors and their advisers assess the merits of investing in the Bentham WholesaleGlobal Income Fund (ARSN 105 898 271) (Fund). No other Fund is offered in this PDS. This PDS should be used to compare theFund with other investment opportunities on offer. We strongly encourage you to read this document in full before making aninvestment decision.

In preparing this PDS we did not take into account your particular investment objectives, financial circumstances or needs. Asinvestors’ needs and aspirations differ, you should consider whether investing in the Fund is appropriate for you in light of yourparticular objectives, financial circumstances or needs. You should also obtain independent advice before investing in the Fund,particularly about individual matters such as taxation, retirement planning and investment risk tolerance.

Updated information

The information in this PDS is up-to-date at the time of preparation. However, some information and terms (see below) can changefrom time to time. If a change is considered materially adverse, we will issue a supplementary or new PDS.

For updated or other information about the Fund (such as performance), please consult your financial adviser, visit our website orcall our Investor Services team. We will also send unitholders a copy of any incorporated information and updated information freeof charge upon request.

Important notices

Fidante Partners Services Limited (ABN 44 119 605 373, AFSL 320505) (Fidante Partners, we, our, us, Responsible Entity) isthe Responsible Entity of the Fund and issuer of this PDS. Our ultimate parent is Challenger Limited (ABN 85 106 842 371). Wehave appointed BenthamAsset Management Pty Ltd (ABN 92 140 833 674, AFSL 356199) (Bentham or the investmentmanager)as the investment manager of the Fund.

Neither Fidante Partners, nor any related entity, nor Bentham, guarantees the repayment of your capital or the performance ofyour investment or any particular taxation consequences of investing.

Fidante Partners authorises the use of this PDS as disclosure to investors and potential investors who wish to access the Fundeither directly (Direct Investors), or through an IDPS operator (Indirect Investors). This PDS may also be used for direct investmentby IDPS operators. Please refer to ‘Indirect investors’ in Additional information.

By investing in the Fund, you confirm that you have received a copy of the current PDS to which this investment relates, that youhave read it and agree to the terms contained in it, and that you agree to be bound by the terms of the current PDS and the currentconstitution of the Fund (each as amended from time to time).

The offer or invitation to subscribe for units in the Fund under this PDS is only available to persons receiving this PDS in Australiaor New Zealand and is subject to the terms and conditions described in this PDS. The information in this PDS is of a general natureand is based on our understanding of the Australian tax laws, as at the date of this document, as they relate to Australian residentindividual taxpayers who hold their investment on capital account and does not take into account the tax treatment of New Zealandresident taxpayers.

Fidante Partners reserves the right to change any terms and conditions with, in the case of an increase in fees, 30 days’ notice,otherwise notice will generally be provided before, or as soon as practicable after, the change occurs. We reserve the right towithdraw the offer or invitation to subscribe for units and withdraw this PDS.

Consent

Bentham has provided consent to the statements about it in the form and context in which they are included. Bentham was nototherwise involved in the preparation and distribution of this PDS and is not responsible for the issue of this PDS, nor is it responsiblefor any particular part of this PDS other than those parts that refer to it. Bentham has not withdrawn its consent before the date ofthis PDS.

Table of contents

4About Bentham

5Features at a glance

7How we invest your money

10Risks of managed investment schemes

13Fees and other costs

17Making, withdrawing and monitoring your investment

24How managed investment schemes are taxed

26Additional information

29Glossary

31Important information for New Zealand investors

Contact detailsInvestor Services team 13 51 53 (during Sydney business hours) or +612 9994 7000 from outsideAustralia (during Sydney business hours)

Phone

[email protected]

02 9994 6666Fax

Fidante Partners Reply Paid 86049 Sydney NSW 2001Mail

www.fidante.com.auWebsite

Bentham Wholesale Global Income Fund 3

Bentham Asset Management Pty Ltd (Bentham) is aspecialist fixed interest and credit investment manager.Bentham actively manages a number of high yieldingfunds with varying risk profiles. The portfolios aredesigned to generate income while diversifying risk inglobal credit markets. Bentham’s goal is to deliver higherincome to investors than can generally be achieved intraditional fixed interest and equity markets.

Bentham’s investment philosophy is based on a strongcredit culture and a systematic investment process, witha focus on the preservation of principal and protectionagainst downside risk. The founders of Benthampreviously worked together as part of the CreditInvestment Group of Credit Suisse Alternative CapitalInc. They are still managing the same portfolios. If youwould like more information on Bentham, please visittheir website www.benthamam.com.

About the Responsible EntityFidante Partners forms long-term alliances with talentedinvestment professionals to create, grow and supportspecialist, boutique funds management businesses. Weare the Responsible Entity of the Fund. As ResponsibleEntity, we issue units in the Fund and are legallyresponsible to the unitholders of the Fund for itsoperation.

We have appointed Bentham as the investment managerof the Fund. We provide back office, marketing,distribution, administration, and compliance supportservices to Bentham, allowing Bentham the freedom tofocus on investing andmanaging the assets of the Fund.

A related entity of Fidante Partners has a partial equitystake in Bentham. Neither we, nor any of our relatedentities, nor Bentham, guarantee the repayment of yourcapital or the performance of your investment or anyparticular taxation consequences of investing.

Significant features and benefits ofthe Fund

Active management: Investments are activelymanaged with allocations across different creditsectors with a focus on generating stable income.Diversification: The Fund allows access toinvestment opportunities and diversification thatindividual investors usually cannot achieve on theirown.Global focus:Providesmore investment opportunitiesand diversity when compared with domestic fixedincome markets.Experienced investment team: The Fund offersaccess to investment professionals who specialisein domestic and global credit markets.Diversified income: The Fund invests in at least 400different issuers thereby offering diversified sourcesof income and returns.Capital preservation: The Fund has the potential tominimise credit risk, with a key focus on creditpreservation.Income: The Fund aims to provide reliable andconsistent monthly income.

4 Bentham Wholesale Global Income Fund

About Bentham

Refer to Section

‘Making,withdrawing andmonitoring yourinvestment’

Minimum transactionand balancerequirements1

$10,000 or $1,000 when a Regular Savings Plan is established.Initial investment

$1,000 or $100 per month when a Regular Savings Plan is established (withan initial investment of $1,000).

Additional investment

$1,000 (minimum balance must be maintained).Minimum withdrawal

$10,000 or $1,000 with a Regular Savings Plan.Minimum balance

If you are an indirect investor, you need to comply with any minimum transaction and balancerequirements of your IDPS operator.

Indirect investors

‘Fees and othercosts’

Fees and other costs2,3

NilContribution fee

NilWithdrawal fee

0.72% p.a. of the net asset value of the Fund.Management fee

0.05% p.a. of the net asset value of the Fund.Estimated reimbursableexpenses

Under the constitution of the Fund, we may recover any abnormal expenses(such as the costs of unitholder meetings) from the Fund.

Abnormal expenses

+0.35% / -0.35% per transaction. This amount may change if the estimate ofthe underlying transaction costs changes.

Buy/sell spread

‘Risks of managedinvestmentschemes’

A degree of risk applies to all types of investments, including investments inthe Fund. The significant risks are described in ‘Risks of managed investmentschemes’.

Risks of investing in theFund


Making andwithdrawingyour investment

Generally, you can invest or withdraw at any time subject to certain limits inthe Fund’s constitution and this PDS.

Investment andwithdrawing

Valid transaction requests must be received by us prior to 3.00pm Sydneytime to be processed that day and withdrawal requests will usually be paidwithin five business days.

Transaction cut-off times

‘Additionalinformation’

Distribution payments

The Fund generally pays distributions monthly; however, there may be periodsin which reduced or no distributions are paid and we do not guarantee anylevel of distributions.

Frequency

Reinvested into the Fund as additional units or paid to your nominated account.For indirect investors, distributions will be paid to your IDPS operator as soonas practicable after the end of the quarterly distribution period.

Payment methods

‘Additionalinformation’

Valuations and pricing

The Fund’s assets are usually valued each NSW business day.Valuing the Fund’s assets

Unit prices are usually calculated each NSW business day.Unit pricing


Features at a glance


Investor reporting

We generally send transaction confirmations for investments and withdrawals.Transaction confirmations

We send quarterly periodic statements as at 31March, 30 June, 30 Septemberand 31 December with details of transactions and any income distributions.

Regular reporting

We send an annual tax statement.Annual tax reporting

1. We may, at our discretion, accept lower minimum transaction and balance amounts.

2. Unless otherwise stated, all fees and costs are quoted inclusive of any Goods and Services Tax (GST) and net of any input tax credits (ITCs) or reduced input taxcredits (RITCs) as applicable. Where available, the prescribed RITC rate is currently 55% or 75%, depending on the nature of the fee or cost incurred. Due to theimpact of GST, ITC and RITC calculations, actual fees may vary slightly from those stated, which may be rounded to two decimal places.

3. For certain Wholesale Clients (as defined in the Corporations Act 2001 (Cth)) we may, at our discretion, negotiate, rebate or waive all or part of our fees. Pleaserefer to 'Can fees be different for different investors?'.


The Fund aims to provide exposure to global credit markets and to generate income with some potentialfor capital growth over the medium to long term. The Fund aims to outperform its composite benchmarkover the suggested minimum investment timeframe.

Investment returnobjective

At least three yearsMinimum suggestedinvestment timeframe

50% Bloomberg AusBond Composite Bond Index50% Bloomberg AusBond Bank Bill Index

Benchmark

Medium risk – the Fund offers the potential for favourable returns over the long term with some incomebut could potentially exhibit moderate levels of volatility over the short to medium term.

Risk level

The Fund is managed by Bentham who seeks to provide a diversified exposure to domestic and globalcredit markets with a focus on generating stable investment income.

The Fund is intended to be suitable for investors seeking to invest for at least three years, with apreference for stable income with minimised risk of capital loss. Definitions of the important investmentterms are provided in the ‘Glossary’.

Investment approach

The Fund is actively managed and focused on generating stable investment income by providing adiversified exposure to domestic and global credit markets while managing interest rate risk andcurrency risk.

Bentham seeks to add value through actively managing allocations across different credit sectors,trading of individual securities and managing its interest rate and currency risk.

Bentham manages the Fund on a top-down basis. Active asset allocations are made according toquarterly forecasts of prospective risk-adjusted returns across a range of credit sectors. Drawing ona combination of both experience and strong relationships with specialist investment managers,Bentham seeks out and identifies global investment opportunities in credit markets with the aim togenerate income with some potential for capital growth.

Bentham utilises a bottom-up analysis to select individual investments based on credit fundamentalsand market information.

The Fund must maintain a minimum investment of 50% in investment grade rated securities. Benthamaims to minimise credit risk with a focus on capital preservation and a high diversity of investmentswhich would otherwise be difficult to achieve without access to global markets.

Investment universe and portfolio construction

The Fund invests in global credit and fixed interest markets. The Fund’s investments include, but arenot limited to, Australian and global hybrid securities, global high yield bonds, global syndicated loans,investment grade securities, global capital securities, asset backed securities, equities and derivatives.

The Fund uses derivatives as a risk management tool, including currency swaps, interest rate swapsand credit default swaps. The final portfolio reflects Bentham’s rigorous fundamental approach to creditportfolio management. Portfolio construction guidelines promote diversification and credit quality bylimiting the maximum portfolio exposure to any single non-investment grade security to 2% of the netasset value of the Fund. The Fund has a minimum exposure of 50% in investment grade securities.

The Fund may have a net short credit exposure which is not to exceed 35% of the portfolio. The Fundmay have up to 10% physical exposure to equity securities and a net portfolio equity delta of 0.3.

Currency strategy

Bentham aims to fully hedge any foreign currency exposure back to the Australian dollar. Please referto ‘Currency risk’ for additional information.

Description of theFund


How we invest your money

Max (%)Min (%)Asset class2

500Australian hybrids400Global hybrids (global/Euro convertible bonds)500Global loans (including syndicated loans)300Global high yield bonds750Investment grade credit (including global

corporate bonds and asset backed securities)300Cash

1These are indicative asset allocation ranges for the Fund. If market movements, investments into or withdrawals from the Fund,or changes in the nature of an investment, cause the Fund to move outside these indicative ranges, or a limit set out in this PDS,this will be addressed by us or Bentham as soon as reasonably practicable.2These ranges are based on net exposures and may vary in accordance with hedging.

Strategic assetallocation ranges1

Generally, in buying, retaining or selling underlying investments, neither we, nor Bentham, take intoaccount labour standards or environmental, social or ethical considerations. However, to the extentthat we, or Bentham, believe those matters may affect the value or performance of an underlyinginvestment, they may be considered. Neither we, nor Bentham, have a predetermined view as to whatconstitutes a labour standard or environmental, social or ethical consideration as these will bedetermined on a case-by-case basis.

Labour standards orenvironmental, socialor ethicalconsiderations

The constitution of the Fund permits a wide range of investments and gives us, as Responsible Entity,broad investment powers. We may change the investment manager and/or vary the investmentobjectives, strategies, benchmarks, asset allocation ranges and processes of the Fund. We will giveunitholders written notice of any material variation which we believe they would not have reasonablyexpected.

Changes toinvestment policy

Additional information about theFunds's investmentsBorrowings of the FundThe Fund’s constitution allows for borrowing; however,Benthamwill generally not borrow on behalf of the Fund,except from time to time to cover short-term cash flowneeds or if emergency or extraordinary situations arise.Borrowings may be from a variety of sources, includingrelated entities. Where funds are borrowed from relatedentities, the terms are set on a commercial and arm’slength basis.

The availability and terms of borrowings are subject tothe market for borrowings (including market conditionsin debt and other markets) and therefore borrowings maynot always be available. Lenders may refuse to provideborrowings, renew an existing borrowing facility or refuseto renew on commercially acceptable terms. This maybe for reasons specific to the Fund or due to market-wideevents.

We or Bentham may change the lending financialinstitution (if any) from time to time and may also seekto vary the terms of any borrowing facility where it isbelieved it would be in the best interests of unitholders.

Asset allocation rangesThe Fund gains exposure to various investment marketsand asset classes by investing into direct assets and/orindirectly via managed funds. References to assetallocations are references to the exposure of the Fund,not necessarily the physical unit or security held.

Refer to ‘How we invest your money’ for strategic assetallocations for the Fund.

If market movements, investments into or withdrawalsfrom the Fund, or changes in the nature of an investmentcause the Fund to exceed the indicative asset allocations,or a limit set out in the PDS, this will be addressed by usor Bentham as soon as reasonably practicable.

Making investments directly or indirectlyThe Fund may make investments directly or indirectlyby investing in other funds (including funds related to, ormanaged by, a related entity) that have investmentobjectives and authorised investments that are consistentwith the Fund. This structure helps to minimisetransaction costs and can enhance diversification.

How the Fund uses derivativesThe Fund may, at times, invest in or obtain exposure toderivatives, such as futures and options, interest rateswaps, currency hedging and credit default swaps.


The term ‘derivative’ is used to describe any financialproduct that has a value that is derived from anothersecurity, liability, or index.

The Fund’s constitution permits the use of derivatives;however Bentham does not intend to gear the Fundthrough the use of derivatives. If market movements,investments into or withdrawals from the Fund, orchanges in the nature of an investment result in the Fundbeing geared through derivatives, this will be addressedby Bentham or us as soon as reasonably practicable.Where the Fund uses derivatives, Bentham aims tomanage the Fund so as to keep sufficient liquid assetsin the Fund to meet all obligations associated with thederivatives.

Derivatives may be used to gain exposure when theyoffer a more cost-effective way of purchasing theunderlying security. Derivatives can be used to implementinvestment decisions (including hedging), managing theduration of the Fund, and as a risk management tool(such as managing the effect of interest rate or foreigncurrency movements). They may also be used to adjustor implement investment decisions and to gain, or avoid,exposure to a particular market rather than purchasingphysical assets.

The use of derivatives may expose the Fund to certainrisks. Please refer to ‘Derivative risk’ for moreinformation.


All investments carry risk. Different strategies carrydifferent levels of risk depending on the assets that makeup the strategy. Generally, assets with the potential forthe highest long-term returns may also carry the highestlevel of risk.

When investing in a managed investment scheme, it isimportant to note that the value of assets in the managedinvestment scheme and the level of returns will vary. Noreturn is guaranteed. Future returns may differ from pastreturns and investors may lose some or all of their moneyinvested. Additionally, laws (including tax laws) that affectregistered managed investment schemes may changein the future, which may have an adverse effect on thereturns of managed investment schemes.

Your level of acceptable risk will vary compared to otherinvestors’ risk appetite and depends upon a range offactors such as your age, your investment timeframe,how comfortable you feel about exposing your investmentto risk, the nature and size of other investments you hold,and the extent to which the Fund fits into your overallfinancial plan.

New Zealand investors need to be aware there aredifferences in how securities are regulated underAustralian laws. For example, the disclosure of fees maybe different and the rights, remedies and compensationarrangements available to New Zealand investors maydiffer.

Risks of managed investment schemesExplanationRisk

The Fund is, to a certain extent, reliant on external providers in connection with its operation andinvestment activities. There is a risk with these arrangements that the other party to a contract (suchas a derivatives contract, physical security trade or foreign exchange contract) fails to perform itscontractual obligations either in whole or in part. This may result in the investment activities of the Fundbeing adversely affected.

Counterparty risk

The risk that the issuer of the fixed interest security is unable or unwilling to make interest and/or capitalrepayments in full and/or on time, or may not meet other financial obligations. Causes of such a failureinclude an issuer encountering financial difficulties such as insolvency.

Credit risk is generally considered to be lower with investment grade credit quality fixed incomesecurities. Fixed income securities rated below investment grade credit quality generally have a higherrisk of default.

Emerging markets debt is generally below investment grade and usually has a higher risk of default.Bentham monitors, on an ongoing basis, the financial position of issuers whose securities are held bythe Fund.

Credit risk

The Fund may invest in securities outside Australia. These securities can be valued in currencies otherthan Australian dollars. A change in the value of these currencies relative to the Australian dollar canaffect the value of the investment. For example, a rise in the Australian dollar relative to other currenciesmay negatively impact the value of the investment. Conversely, a decline in the Australian dollar relativeto other currencies may positively impact the value of the investment.

Bentham adopts currency hedging strategies in an aim to reduce, or remove completely, the impactof these currency movements on the value of the investment. However, it should be noted that suchhedging strategies could also reduce the potential for increased gains where the value of that currencyincreases relative to the Australian dollar. Please refer to ‘Currency strategy’ under 'How we investyour money' for information on Bentham’s currency management strategy.

Currency risk


Risks of managed investment schemes

The value of a derivative is linked to the value of an underlying asset and can be highly volatile. Whilethe use of derivatives offers the opportunity for higher gains, it can also magnify losses to the Fund.Risks associated with using derivatives might include the value of the derivative failing to move in linewith that of the underlying asset, potential illiquidity of the derivative, the Fund not being able to meetpayment obligations as they arise and the risk that the other party with whom the derivative contractis held will fail to perform its contractual obligations (known as ‘counterparty risk’).

Bentham does not intend to gear the Fund through the use of derivatives. Bentham aims to keepderivative risk to a minimum by:

constantly monitoring the Fund’s use of derivatives;aiming to ensure that the Fund keeps sufficient liquid assets to meet all obligations, costs, liabilitiesand potential losses associated with derivatives; andentering into derivative contracts with reputable counterparties.

Derivative risk

The value of an equity security (also known as a share) may be affected by market sentiment and otherfactors that may impact the performance of the actual company over short or extended periods of time.Investing in shares of a company will expose an investor to many of the risks to which the individualcompany is itself exposed. They include many factors, such as changes in management, actions ofcompetitors and regulators, changes in technology and market trends. Share markets tend to move incycles, and the individual share price of a security may fluctuate.

Such risk is considered by Bentham through its investment process and managed by maintaining adiversified portfolio of securities. Investment returns from international shares are also affected byexchange rate fluctuations. The currency exposure from the Fund’s international equity investmentsmay be hedged or partially hedged into the Australian dollar. Refer to 'Currency strategy' under 'Howwe invest your money' for more information.

Equity security risk

Fixed interest securities are affected by many of the other risks outlined in this section, such as interestrate risk and credit risk. The impact of interest rate risk will largely depend on the term to maturity ofthe security (refer to ‘Interest rate risk’ for more information).

Credit risk is generally considered to be low with investment grade fixed income securities and higherfor non-investment grade securities (refer to ‘Credit risk’ for more information).

The value of a security (including its cash flow) may also be affected by:

changes in the security’s credit risk premium;ratings upgrades or downgrades by ratings agencies (e.g. when a borrower’s financial position hasimproved or deteriorated);defaults (i.e. when a borrower fails to pay interest or principal when it is due); andrecovery risk (the severity of the capital loss incurred as a result of a default).

Investment returns from international fixed interest securities (and related derivatives) are also affectedby fluctuations in exchange rates (refer to ‘Currency risk’).

A further risk relevant to fixed interest securities is ‘prepayment risk’ where certain debt securities canbe prepaid at the option of the issuer. There is no assurance that proceeds received from a prepaymentcan be invested in similar securities generating the same level of return.

Fixed interest andcredit investments risk


Fund risk refers to specific risks associated with the Fund, such as termination and changes to feesand expenses. Wemay close the Fund to further investments if, for example, we consider it appropriategiven the investment objective and investment strategy of the Fund. We may also terminate the Fundby notice to unitholders.

Your investment in the Fund is governed by the terms of the constitution and the PDS of the Fund(each as amended from time to time), the Corporations Act 2001(Cth), and other laws. The value ortax treatment of an investment in the Fund or its underlying assets, or the effectiveness of the Fund’strading or investment strategy may also be adversely affected by changes in government policies(including taxation), regulations and laws, or changes in generally accepted accounting policies orvaluation methods. Such changes could also make some investors consider the Fund to be a lessattractive investment option than other investments, prompting greater than usual levels of withdrawals,which could have adverse effects on the Fund.

There is also a risk that investing in the Fund may give different results from holding the underlyingassets of the Fund directly because of:

income or capital gains accrued in the Fund at the time of investing; andthe consequences of investment and withdrawal decisions made by other investors in the Fund; forexample, a large level of withdrawals from the Fund may lead to the need to sell underlying assetswhich would potentially realise income and/or capital gains.

We aim to manage these risks by monitoring the Fund and by acting in investors’ best interests. In theevent of winding up the Fund, we will realise all the Fund’s assets, which will generally result in thecrystallisation of tax positions (both income and capital) at that time.

Fund risk

Fixed interest securities (such as bonds) can be affected by movements in interest rates. For example,the capital value or income of a bond may be adversely affected when interest rates rise or fall. Forexample, when interest rates rise, the value of the bond tends to fall and vice versa. Generally, thelonger the maturity (or duration) of the bond, the greater the impact that changes in interest rates willhave on the value of that bond.

Interest rate risk

The absence of established market or a shortage of buyers for an investment can result in a loss if theholder of the investment needs to sell it within a particular timeframe.

If an investor or a group of investors in the Fund with exposure to less liquid assets seek to make largewithdrawals, then selling assets to meet those withdrawals may result in a detrimental impact on theprice we receive for those assets. In certain circumstances, we may be required to suspend withdrawals(refer to ‘Withdrawal risk’) to allow sufficient time for a more orderly liquidation of assets to meet thewithdrawals.

Liquidity risk

The possibility for an investor to experience losses due to factors that affect the overall performanceof the financial markets. These events may include changes in economic, social, political conditionsalong with changes in technology, the environment and market sentiment.

Often assets from less developed regions or markets display higher levels of volatility of investmentreturn than assets in mature markets.

Market risk

If a situation occurs where the assets that the Fund invests in are no longer able to be readily boughtand sold, or market events reduce the liquidity of a security or asset class, there is a risk that thegenerally applicable timeframe of five business days for meeting withdrawal requests may not be ableto be met. This is because it may take longer to sell these types of investments at an acceptable price.In this case, withdrawals from the Fund may take significantly longer than the generally applicabletimeframe.

The maximum timeframe in which we, as Responsible Entity, have to meet a withdrawal request is setout in the constitution of the Fund. Where the Fund is not liquid (as defined in the Corporations Act2001 (Cth)), you may only withdraw when we make an offer to withdraw to all investors, as requiredby the Corporations Act 2001 (Cth). Please refer to ‘Additional information about withdrawing’ for furtherinformation about an investor’s ability to withdraw when the Fund is liquid, including the timeframes,and an investor’s ability to withdraw if the Fund is not liquid.

Withdrawal risk


Consumer advisory warningDid you know?

Small differences in both investment performance and fees and costs can have a substantial impact on your longterm returns. For example, total annual fees and costs of 2% of your fund balance rather than 1% could reduce yourfinal return by up to 20% over a 30 year period (for example, reduce it from $100,000 to $80,000). You should considerwhether features such as superior investment performance or the provision of better member services justify higherfees and costs. You may be able to negotiate to pay lower contribution fees and management costs where applicable.Ask the fund or your financial adviser.

To find out more

If you would like to find out more, or see the impact of the fees based on your own circumstances, the AustralianSecurities and Investments Commission (ASIC) website (www.moneysmart.gov.au) has amanaged funds fee calculatorto help you check out different fee options.

This table shows fees and other costs that you may be charged and applies to the Fund offered through this PDS.These fees and costs may be deducted from your money, from the returns on your investment or from the Fund assetsas a whole. Taxes are set out under ‘Taxation considerations’ in this document. You should read all the informationabout fees and costs because it is important to understand their impact on your investment.

How and when paidAmountType of fee or cost

Fees when your money moves in or out of the Fund1

Not applicableNilEstablishment fee: The fee to open your investment

Not applicableNilContribution fee: The fee on each amount contributed to yourinvestment

Not applicableNilWithdrawal fee: The fee on each amount you take out of yourinvestment

Not applicableNilExit fee: The fee to close your investment

Management costs include themanagementfee and reimbursable expenses expressedas a percentage of the net asset value ofthe Fund. The amount quoted does notinclude any abnormal expenses that maybe charged.

Management costs2,3,4

The fees and costs for managing your investment

0.72%Management fee

PLUS

The management fee and reimbursableexpenses are deducted from the Fund’sassets, accrued daily and paid monthly inarrears.

0.05%Estimated reimbursable expenses

Service fees4

Not applicableNilSwitching fee: The fee for changing investment options

1. An allowance for transaction costs may apply to investments into, and withdrawals from, the Fund (refer to ‘Buy/sell spreads’ below).


3. For certain Wholesale Clients (as defined in the Corporations Act 2001 (Cth)) we may, at our discretion, negotiate, rebate or waive all or part of our fees. Pleaserefer to 'Can fees be different for different investors?'.

4. Please refer to ‘Additional explanation of fees and costs’ and 'Other payments' for more information on costs that may be payable.


Fees and other costs

http://www.moneysmart.gov.au

Additional explanation of fees andcostsManagement costsThe total management costs for the Fund, also knownas the Indirect Cost Ratio (ICR), comprise the additionalfees or costs that an investor incurs by investing in theFund rather than investing directly in the underlyingassets.

Management costs include the management fee,reimbursable expenses, abnormal expenses andinvestment expenses. They do not include the transactioncosts (i.e. buy/sell spreads) or other costs that an investorwould ordinarily incur when investing directly in theunderlying assets. Management costs are payable fromthe Fund’s assets and are not paid directly from youraccount.

The management costs quoted in this document arebased on current financial information.

For details of the maximum fees permitted under theconstitution of the Fund, please refer to ‘Maximumallowable fees’.

Management feeThis is the fee charged for managing the investments,overseeing the Fund’s operations and providing accessto the Fund. The management fee is calculated daily asa percentage of the net asset value of the Fund andpayable monthly in arrears.

Reimbursable expensesUnder the constitution of the Fund, we are entitled torecover costs incurred in the performance of our dutiesas Responsible Entity of the Fund and in theadministration and management of the Fund. Thesereimbursable expenses include charges, fees, expenses,commissions, liabilities and losses associated with theFund.

The estimated reimbursable expenses are based on thecurrent reimbursable expenses charged for the Fund.This amount is not an indication or guarantee of theamount that may be charged in the future. Reimbursableexpenses, and therefore total management costs, mayvary each year.

Abnormal expensesWe may recover abnormal expenses (such as costs ofunitholder meetings, changes to the Fund’s constitutionand defending or pursuing legal proceedings) from theFund. The management costs set out in the table abovedo not include any abnormal expenses. Whilst it is not

possible to estimate such expenses with certainty, weanticipate that the events that give rise to such expenseswill not occur regularly. In circumstances where suchevents do occur, we may decide not to recover theseabnormal expenses from the Fund.

Investment expensesWe currently pay the standard investment managementcosts of the Fund from the management fee.

Buy/sell spreadsThe buy/sell spread is a type of transaction cost that mayinclude brokerage, stamp duty, underlying securitybuy/sell spreads and other government taxes or charges.The purpose of the buy/sell spread is to ensure that onlythose investors transacting in the Fund’s units at aparticular time bear the Fund’s costs of buying and sellingthe Fund’s assets as a consequence of their transaction.

The buy/sell spread for the Fund is stated as apercentage of the net asset value of the Fund and is thedifference between the investment unit price and thewithdrawal unit price. It reflects an estimate of thetransaction costs expected to be incurred in buying andselling the Fund’s assets as a result of investments andwithdrawals made by investors.

This estimate may take into account factors such as (butnot limited to) historical transaction costs and anticipatedlevels of investments and withdrawals. It is expected thatbrokerage will make up the vast majority of transactioncosts.

The current buy/sell spread of the Fund is+0.35%/-0.35%; however a different buy/sell spread mayapply if the estimate changes.

We have discretion to waive or reduce the transactioncosts on investments or withdrawals where no or reducedcosts are incurred. We will provide notification tounitholders of any changes to buy/sell spread transactioncosts on our website.

Please note that while the buy/sell spread is an additionalcost to you, it is not a fee paid to us or Bentham. It ispaid to the Fund and is reflected in the Fund’s unit price.

Buy/sell spread exampleThe current buy spread on an investment in the Fundis +0.35%. Therefore, the cost of an investment of$50,000 into the Fund would be $175.The current sell spread on a withdrawal from the Fundis -0.35%. Therefore, the cost on a withdrawal of$50,000 from the Fund would be $175.


Please note that this is just an example. In practice,actual transaction costs will depend on the amount youinvest or withdraw.

Can fees be different for different investors?Yes; we may negotiate, rebate or waive fees forwholesale clients (as defined in the Corporations Act2001 (Cth)). We do not negotiate fees with retailinvestors.

Borrowing costsBorrowing costs are the costs associated with borrowingmoney or securities. The Fund may enter into borrowingfacilities and, if so, the costs of a borrowing facility wouldbe deducted from the Fund and not paid for by us fromthe fees we receive. They would therefore increase themanagement costs of the Fund.

Government charges and GSTGovernment taxes such as stamp duty and Goods andServices Tax (GST) may apply to the Fund or yourinvestment. Unless otherwise stated, all fees and costsare quoted inclusive of any GST and net of any input taxcredits (ITCs) or reduced input tax credits (RITCs) thatare expected to be available to the Fund.

Where RITCs are available, the prescribed rate iscurrently 55% or 75%, depending on the nature of thefee or cost incurred. Please refer to ‘Taxationconsiderations’ for additional information on GST.

Other paymentsWe may pay fees from our resources to some IDPSoperators because they offer the Fund on theirinvestment menus. These fees may be rebated to theIndirect Investor investing in the Fund through the IDPSoperator or retained by the IDPS operator and include:

for each IDPS operator, product access payments ofup to $8,250 p.a.; and/orwhere permitted by law, fund manager payments ofup to 0.55% p.a. of the amount invested by the IDPSoperator in the Fund.

If we do pay fees, we will pay them from our ownresources so that they are not an additional cost to theFund or its unitholders. These amounts are current atthe date of this document.

We may pay additional fees from our resources to someapproved participants because they offer the Fund ontheir investment menus. You should refer to the relevantapproved participants’ Financial Services Guide beforeinvesting.

Adviser remunerationAdviser service feesYou and your financial adviser may agree that you willpay an adviser service fee for the provision of ongoingservices by your financial adviser in relation to yourinvestment. This fee will be paid to the Australianfinancial services licensee responsible for your adviser(or your adviser directly if they are the licensee). You donot have to agree to these fees if you choose not to.

Where it has been agreed, the adviser service fee maybe an amount of up to 1.1% p.a. of your account balance,negotiated with your financial adviser and to becalculated and paid on a monthly basis. You and yourfinancial adviser may agree to this fee being deductedfrom your Fund account. Where you agree to pay anadviser service fee, you also authorise us to withdrawunits you hold in the Fund to pay this fee on your behalf.There may be capital gain or capital loss consequenceson the withdrawal.

We will not deduct the adviser service fee if your balancein your Fund account is less than $1,000.

Adviser service fee exampleIf your account balance in the Fund is $50,000, and youagree to pay a maximum adviser service fee of 1.1%p.a., this will equate to $45.83 per month. You or yourfinancial adviser may cancel the adviser service fee atany time.

Maximum allowable feesThe Fund’s constitution allows for expenses of the Fund(whether normal or abnormal expenses), such as registry,audit, taxation, advice, investment management andoffer document costs to be paid directly from the Fund.

Maximum amountFee

6.00% p.a. of the contributionamount

Contribution fee(currently not charged)

2.00% p.a. of the net asset valueof the Fund

Management fee

6.00% p.a. of the withdrawalamount

Withdrawal fee(currently not charged)

The constitution for the Fund permits us to charge atrustee fee of 0.04% p.a. of the value of the Fund that isinvested in any of the other fundsmanaged by Bentham,plus 0.10% p.a. of the value of the balance of that fund,or, in certain circumstances specified in the constitution,an amount no greater than an amount based on $15,000adjusted for inflation since 1992. We are also entitled tobe reimbursed for certain fees and expenses of acustodian or sub-custodian up to a maximum of 1% ofthe net asset value of the Fund. It is not our current


intention to charge any of these fees. However, shouldwe propose to change this we will give unitholders 30days’ written notice of the change. We also reserve theright to waive or reduce any of the fees and costsdescribed in this PDS without prior notice.

Can fees change?All fees can change. Reasons for this might includechanging economic conditions and changes in regulation.We will give unitholders 30 days’ written notice of anyproposed increase in fees. We cannot charge more thanthe Fund’s constitution allows. If we wish to raise feesabove the amount allowed for in the Fund’s constitution,we would first need to obtain the approval of unitholders.We also reserve the right to waive or reduce any of thefees and costs described in this PDS without prior notice.

Indirect (or alternative form) remunerationWe may provide benefits to other financial servicesintermediaries where the law permits. If we do, we willprovide these benefits from our own resources so thatthey are not an additional cost to the Fund or itsunitholders.

We maintain a register (in compliance with the relevantregulatory requirements) summarising alternative formsof remuneration that are paid or provided to AustralianFinancial Services Licensees and/or theirrepresentatives. Registers are publicly available and ifyou would like to review our register, please contact us.

Example of annual fees and costs for the FundThis table gives an example of how fees and costs in the Fund can affect your investment over a one-year period.You should use this table to compare this product with other managed investment products.

Balance of $50,000 with a contribution of $5,000 during the yearAmountExample

For every additional $5,000 you put in, you will be charged $0.$0Contribution fees

And, for every $50,000 you have in the Fund, you will be charged $385 each year.0.77%Plus Management costs2,3,4

If you had an investment of $50,000 at the beginning of the year and you put in anadditional $5,000 during that year, you would be charged fees of:

$3854

What it costs you will depend on the investment option you choose and thefees you negotiate with your fund or financial adviser.

Equals Cost of Fund

This example assumes that the $5,000 contribution is made at the end of the year and the value of theinvestment is otherwise consistent, therefore the management costs associated above are calculated

using the $50,000 balance only. Please note that this is just an example. In practice, actual investment balanceswill vary daily and the actual fees and expenses we charge are based on the value of the Fund, which alsofluctuates daily.1. An allowance for transaction costs may apply to investments into, and withdrawals from, the Fund (refer to ‘Buy/sell spreads’ below).


3. For certain Wholesale Clients (as defined in the Corporations Act 2001 (Cth)) we may, at our discretion, negotiate, rebate or waive all or part of our fees. Pleaserefer to 'Can fees be different for different investors?' in the Additional Information booklet available on our website.

4. Please refer to ‘Additional explanation of fees and costs’ and 'Other payments' for more information on costs that may be payable.


The information in the table below applies to direct Investors only. If you are an indirect investor, you will need tocomply with any requirements set by your IDPS operator. Please refer to ‘Indirect investors’ for further information.

More informationHow to lodge your requestMinimum amounts1

’Additionalinformation about

making aninvestment’

and‘CustomerIdentificationProgram’

complete and sign the relevant Application Form availableon our website;complete the relevant Identity Verification (depending onwhat investor type you are) available on our website andinclude all required customer identity verification documents;if making your investment via direct debit, you will need tocomplete the direct debit request section of the relevantApplication Form. All direct debits are subject to the DirectDebit Request Service Agreement available on our website;if making your investment via Electronic Funds Transfer,please transfer funds with your investor name as a referenceat the same time as posting your application. Payment detailsare outlined on the relevant Application Form;if making your investment via cheque, make the chequepayable to ‘Fidante Partners Services Limited ApplicationAccount <name of investor(s)>’ and attach it to yourapplication form

$10,000 or $1,000with a RegularSavings Plan

Initialinvestment

’Additionalinformation about

making aninvestment’

complete and sign the ‘Additional Investment Form’ availableon our website;if making your investment via direct debit, you will need tocomplete the direct debit request section of the relevantApplication Form. All direct debits are subject to the DirectDebit Request Service Agreement available on our website;if making your investment via Electronic Funds Transfer,please transfer funds with your investor name as a referenceat the same time as posting your application. Payment detailsare outlined on the relevant Application Form;if making your investment via cheque, make the chequepayable to ‘Fidante Partners Services Limited ApplicationAccount <name of investor(s)>’ and attach it to yourapplication form.

$1,000One-offadditionalinvestment

‘‘Regular SavingsPlan’

complete and sign the Regular Savings Plan sections fromthe relevant Application Form available on our website.

$100 per month (withan initial investment of$1,000).

RegularSavings Plan

‘Additionalinformation aboutwithdrawing your

investment’and‘Telephone

and faxinstructions’

complete and sign the ‘Withdrawal Request Form’ availableon our website; orwrite a letter, including:- your account number;- the full name(s) in which your investment account is held;- the amount (dollars or units) you wish to withdraw;- how and to whom you would like us to make the payment;and- a daytime contact telephone number; orvia telephone or fax subject to certain restrictions; pleaserefer to ‘Telephone and fax instructions’.

$1,000 per withdrawal,subject to maintainingthe minimum balancein the Fund

Withdrawals

‘Transferringownership’

Subject to conditions as required by law and that we, from timeto time, prescribe. Please contact our Investor Services teamfor information about transferring.

$10,000Transferringownership

1. We may accept lower minimum transaction amounts at our discretion.


Making, withdrawing and monitoring yourinvestment

Additional information about makingan investmentInitial InvestmentsYou can access the Fund:

As a Direct Investor – by completing the relevantApplication Form

As an Indirect Investor – through your IDPS operator

Direct InvestorsDetails of how to make your initial investment are outlinedin ‘8. How to apply’ in the PDS. Once you have madeyour initial investment in the Fund, you can makeadditional one-off investments and/or regular monthlyinvestments via the Regular Savings Plan.

Indirect InvestorsYou should contact your IDPS operator for moreinformation regarding your investment in the Fund.

Additional one-off investmentsIf you wish to make additional investments in the Fund,please download a copy of the current PDS and theadditional important information and any disclosureupdates. A paper copy of the current PDS, the additionalimportant information and any updates are available freeof charge by visiting our website or by calling us.

Direct InvestorsFor direct investors, additional investments can be madevia direct debit, electronic funds transfer, or cheque. Ifmaking your additional investment via direct debit, youwill need to complete the relevant direct debit facilitysection on the Additional Investment Form.

All direct debits are subject to the Direct Debit RequestAgreement attached to the Additional Investment Form.The Additional Investment Form is available on ourwebsite and contains details of how to make paymentsvia electronic funds transfer.

Alternatively, if you are making your additional investmentvia cheque, you can send us written instructions. Pleaseattach your cheque to the instructions and ensure theinstructions include:

your account number;the full name(s) in which your investment account isheld;the amount you wish to invest; anda daytime telephone number.

Indirect InvestorsYou must complete the documentation which your IDPSoperator requires.

Regular Savings PlanThe Regular Savings Plan (RSP) enables you to investin the Fund each month via direct debit from a nominatedaccount.

Direct InvestorsTo start an RSP, simply complete the relevant sectionsof the relevant Application Form available fromwww.fidante.com.au.

Your nominated account will be debited on or around thenext business day after the 14th day of each month forthe specified amount. Your application to commence anRSP must be received at least three business daysbefore the 14th day of the month in which you wish yourinstructions to take effect. Participation in the RSP willbe renewed annually by continuing tomake contributions.

Units will be issued on the basis of information containedin the PDS and this document current at the time thecontributions are made. Should a replacement PDS oradditional important information be issued, we will notifyyou and inform you of any changes or updates if youcontinue to participate in the RSP. You can amend,suspend, or cancel your RSP at any time. You shouldensure that we receive your instructions to amend,suspend or cancel your RSP at least three business daysbefore the 14th day of the month in which you wish yourinstructions to take effect. Any request received after thismay result in the change not being effective until thefollowing month.

If two consecutive debits are dishonoured due toinsufficient funds, we will suspend your RSP.

Indirect InvestorsYou must complete the documentation which your IDPSoperator requires.

Incomplete or rejected application formsUnder the Fund’s constitution, we can accept or rejectany application for units and are not required to give anyreason or grounds for such a refusal.

Monies will generally be held on trust for a maximumperiod of 30 days in a non-interest bearing accountcommencing on the day we receive the monies. Afterthis period, your funds will be returned to the source ofpayment. Once we receive your completed application


form, the monies held will be divided by the nextdetermined unit price to calculate the number of unitsallocated to you.

Direct InvestorsTo ensure that your application is processed efficiently,you need to complete all sections of the application formand provide all customer identity verification documentsrequired under the Customer Identification Program.Please refer to ’Customer Identification Program’ below.

If your application form is not complete and we are notable to proceed with your request, we may:

attempt to contact you and/or your financial adviser;orhold your application monies in a non-interest bearingaccount until we receive the required information.

Indirect InvestorsIncomplete or rejected applications will be returned toyour IDPS operator.

Customer Identification ProgramDirect InvestorsTo address money laundering and terrorism risks,verification of each customer’s identity is a prerequisitefor all new customers starting an investment. Therequirements to verify each customer’s identity willdepend on what type of investor you are, e.g. individualor company etc.

You will be required to provide certified copies of youridentity verification documents directly to us (refer to‘Who can certify’ for a list of who can certify thesedocuments). If the Application Form is signed underPower of Attorney we will also require a certified copy ofthe Power of Attorney document and a specimensignature of the attorney.

Under relevant laws, we may be required to ask you foradditional identity verification documents and/orinformation about you, anyone acting on your behalf, orany related persons that are beneficial owners in relationto your investment, either when we are processing yourinvestment request or at some stage after we haveissued units in the Fund. We may pass any informationwe collect and hold about you or your investment to therelevant government authority.

Identity verification documents

You will be required to provide valid identity verificationdocumentation when you invest. The actualdocumentation required will depend on whether you arean individual investor or a non-individual investor suchas a superannuation fund, a trust or a company.

We have outlined the specific documentation requiredin the relevant Application Form. If any documentationyou provide is not in English, it must be accompanied byan original copy of an English translation prepared byan accredited translator. If we do not receive all requiredvalid customer identity verification documents with yourapplication, or we are unable to verify your identity atany time, we will not be able to commence yourinvestment until we receive the required documents. Wewill contact you as soon as possible if we require moreinformation.

To reduce uncertainty around releasing funds to thirdparty accounts, when we receive withdrawal requestswe may delay the release of money until we gain comfortaround the request for withdrawal, including the identityof the third party account.

Who can certify

You must ensure that each page of the relevant identityverification document(s) is certified. The person certifyingmust state in writing:

their capacity (from the list provided); andon each page of the document ‘this document is atrue and correct copy of the original’ or words to thateffect.

An identity verification document may be certified as atrue and correct copy of an original document by one ofthe following persons:

an officer with, or authorised representative of, aholder of an Australian Financial Services Licence,having two or more continuous years of service withone or more licensees, i.e. a financial adviser;a Justice of the Peace;a person who is enrolled on the roll of the SupremeCourt of a State or Territory, or the High Court ofAustralia, as a legal practitioner (however described),i.e. an Australian lawyer;a member of the Institute of Chartered Accountantsin Australia, CPA Australia or the National Institute ofAccountants, i.e. an accountant;an agent of the Australian Postal Corporation who isin charge of an office supplying postal services to thepublic;a permanent employee of the Australian PostalCorporation with two or more years of continuousservice who is employed in an office supplying postalservices to the public;a police officer;Australian consular officer or Australian diplomaticofficer; ora person authorised as a notary public in a foreigncountry.


Other personsmay also be qualified to certify documents.For a full list of eligible persons, please contact us.

Indirect InvestorsIndirect Investors should refer to their IDPS operator fordetails of their customer identification program.

Additional information aboutwithdrawingHow to make a withdrawalDirect InvestorsDirect Investors can request a withdrawal by telephoneor fax (refer to ‘Telephone and fax instructions’ in thisdocument) or in writing. A withdrawal request, either inwhole or in part, once received by us may not bewithdrawn without our agreement. If you make yourwithdrawal request by telephone or fax, we can makeyour withdrawal payment to a previously nominated bankaccount we have on file.

If you provide us with an appropriately signed, originalwritten request, then in addition to the payment methodsset out above, we can also make payments by directcredit to other bank accounts not on file with us.

We will require the following information when you makeyour withdrawal request:

your account number;the full name(s) in which your investment account isheld;the amount (dollar or units) you wish to withdraw;how and to whom you would like us to make thepayment; anda daytime telephone number.

Please ensure that the appropriate signatories sign allwritten withdrawal instructions, including those forwardedby fax.

If you originally invested via direct debit and you makea withdrawal within the first three months of making yourinvestment, we will only pay the withdrawal proceeds tothe account that was debited when making your initialinvestment.

Indirect InvestorsYou must complete the withdrawal documentationrequired by their IDPS operator.

Processing your withdrawalWhile withdrawals are normally processed and paidwithin five business days of receiving your validwithdrawal request, wemay take significantly longer than

this (please refer to ‘Delay of withdrawal payments’below). If your request for withdrawal would cause yourbalance to fall below the current minimum balanceamount of $10,000, this may be treated as a request forfull withdrawal.

For Direct Investors, we can make withdrawal paymentsby direct credit to your nominated account. You agreethat if the type of payment you request results in bankfees being charged, we may deduct those fees from yourwithdrawal proceeds before remitting the net amount toyou.

Generally, if the payment for your withdrawal is returnedto us and remains outstanding for 6 months, we mayreinvest the proceeds in the Fund. Any reinvestment ofa withdrawal amount will be processed using theinvestment unit price current at the time of thereinvestment transaction. For more information on unitprices, refer to ‘How unit prices are calculated’ below.

We may determine that some or all of the withdrawalamount consists of income (whichmay include net capitalgains), rather than capital of the Fund.

We will advise you when this is the case as soon aspracticable after the end of the financial year in whichthe withdrawal occurred. We can provide you with a fulltransaction history of your account for this purpose.

We have the discretion to transfer assets of the Fund toyou (instead of cash) in payment (partly or fully) for theproceeds of your withdrawal request less any costsinvolved in the transfer.

Delay of withdrawal paymentsWithdrawals are normally processed within five businessdays of receiving a valid withdrawal request; however,we do not guarantee this timeframe and we may takesignificantly longer to pay withdrawals.

Withdrawals may also be delayed in the followingcircumstances:

under the Fund’s constitution, we have 30 days to paywithdrawals

if the Fund becomes illiquid, we are not required topay withdrawals unless we offer to do so (refer to ‘Ifthe Fund becomes illiquid’ below).

Where multiple delays are applicable, timeframes mayapply cumulatively.

Additionally, if we did not receive all required identityverification documents (as outlined in the relevantapplication form) at the time of investment or your


withdrawal request is incomplete, we may not processyour withdrawal request until these documents or furtherrequirements are received.

If the Fund becomes illiquid

If the Fund is not liquid (as defined in the CorporationsAct 2001 (Cth)) unitholders would only be able towithdraw from the Fund if we made an offer ofwithdrawal. If we do make such an offer, unitholders mayonly be able to withdraw part of their investment. Thereis no obligation for us to make such an offer.

Under the Corporations Act 2001 (Cth), the Fund isregarded as liquid if liquid assets account for at least80% of the value of the assets of the Fund. Liquid assetsgenerally include money in an account or on deposit witha bank, bank-accepted bills, marketable securities andproperty of the kind prescribed under the CorporationsAct 2001(Cth).

Additional information abouttransactionsTransferring ownershipDirect InvestorsYou can generally transfer some or all of your investmentto another person in such a manner and subject to suchconditions as required by law and that we, from time totime, prescribe. We are not obliged to register a transferthat does not meet these criteria, or where there is anamount payable to us by the transferee or the transferor(as applicable) in respect of the units being transferred.We recommend that you obtain your own professionaladvice regarding your position before transferring someor all of your investment, as tax and social security lawsare complex and subject to change, and investors’individuals circumstances vary.

Please contact us for further information abouttransferring units.

Indirect InvestorsContact your IDPS operator if you wish to transfer yourunits.

Transaction cut-off timesDirect InvestorsGenerally, if your valid investment or withdrawal requestis received in our Sydney office before 3.00pm Sydneytime on a New South Wales business day (referred toas the transaction cut-off time), it will usually beprocessed using the unit price determined as at the closeof business on that day. If your valid investment orwithdrawal request is received after the transaction cut-off

time, or on a non-business day, it will usually beprocessed using the applicable unit price calculated asat the close of business on the next business day.

Indirect InvestorsYou should contact your IDPS operator for informationregarding transaction cut-off times.

Telephone and fax instructionsDirect InvestorsYou should understand that a person without yourauthority could telephone us or send us a fax and, bypretending to be you, withdraw funds from your accountfor their own benefit.

We take all care when acting on instructions. In doingso, we perform security checks and have in place internalpolicies and procedures designed to reduce the risk thata fraud is committed in relation to your account. In usingthe telephone and/or fax facility, you agree that we arenot responsible to you for any fraudulently completedcommunications and that we will not compensate youfor any losses where we have complied with our securitychecks, internal policies and procedures and providedwe have not been negligent, fraudulent or dishonest.

We will only act on completed communications that wereceive. In the case of a fax, a transmission certificatefrom your fax machine is not sufficient evidence (unlessotherwise agreed), that we received your fax. We will notbe liable for any loss or delay resulting from thenon-receipt of any transmission.

In the case of joint holdings, superannuation funds, trustsand companies additional processes may apply, and anyinvestor or director who signs the application form mayrequest a telephone withdrawal. If the details of the bankaccount quoted at the time of making a telephone or faxwithdrawal do not match the nominated bank accountwe have on file, the withdrawal will not proceed. Youmust advise us via an original, signed, written request ifyou wish to change your previously nominated bankaccount details. Should you not wish to use thesefacilities, we must receive an original, signed, writtenrequest to cancel them. Cancellation will be effectivefrom the end of the second business day after receipt ofthis request.

Wemay cancel or vary these requirements by giving younotice in writing. By sending us a fax or making atelephone withdrawal, you signify that you understandthese requirements.

Indirect InvestorsYou should contact your IDPS operator for informationregarding how to transact.


Changes to permitted transactionsWe can vary the minimum investment amounts for theFund at any time and can also change the applicationor withdrawal cut-off time. Under the Fund’s constitution,we can refuse applications or withdrawals for any reason.In particular, where we consider it to be in the interestsof unitholders (such as an inability to value the Fund),wemay suspend application or withdrawal requests. Anyapplication or withdrawal requests received during theperiod of suspension, or for which a unit price has notbeen calculated or confirmed prior to the commencementof a period of suspension, will be deemed to have beenreceived immediately after the end of the suspensionperiod.

Monitoring your investmentDirect InvestorsYou can access your account information 24 hours aday, seven days a week through InvestorOnline, a secureonline service which provides access to up-to-dateinformation about your investments, including the latestunit prices, your account balance and transaction history.

We will also send you regular information about yourinvestments, including:

confirmation of the acceptance of your initial andone-off additional investments; this confirmation willprovide details of the units issued;confirmation that we have processed a withdrawalrequest; this confirmation will provide details of theunit and dollar value withdrawn;a quarterly statement; anda consolidated annual taxation statement.

At any time, you may request a transaction statementthat shows either all transactions since your last regularstatement or all transactions for a specific period. Werecommend that you check all statements and transactionconfirmations carefully. If there are any discrepancies,please contact your financial adviser or our InvestorServices team.

As the Fund is a ‘disclosing entity’ under the CorporationsAct 2001 (Cth), it is subject to regular reporting anddisclosure obligations.

As Responsible Entity of the Fund, we are also subjectto continuous disclosure obligations that require us tomake material information available to investors. Youcan obtain a copy of the Fund’s continuous disclosureinformation by visiting our website.

You can obtain copies of the Fund’s most recent annualfinancial report by visiting our website.

Copies of documents lodged with ASIC in relation to theFund may be obtained from, or inspected at, an ASICoffice.

Indirect InvestorsPlease contact your IDPS operator for informationregarding your investment in the Fund.

As the Fund is a ‘disclosing entity’ under the CorporationsAct 2001 (Cth), it is subject to regular reporting anddisclosure obligations.

As Responsible Entity of the Fund, we are also subjectto continuous disclosure obligations that require us tomake material information available to investors. Youcan obtain a copy of the Fund’s continuous disclosureinformation by visiting our website.

You can obtain copies of the Fund’s most recent annualfinancial report by visiting our website.

Copies of documents lodged with ASIC in relation to theFund may be obtained from, or inspected at, an ASICoffice.

Keeping us informedDirect InvestorsOur records about you are important.

Please inform us in writing of any change to the personaldetails that you have given us. This may be a new postaladdress, a change of name or new bank account details.We will send you written confirmation of any changesthat you request us to make to your personal details.

Indirect InvestorsAs an Indirect Investor, you should notify your IDPSoperator of any changes to your personal details.

What happens if you choose not to disclosecertain information?If you choose not to disclose certain information, thefollowing may apply:

Account details: we will not be able to pay withdrawalproceeds or income distributions to you.Incomplete application form: unless otherwise agreed,we will not be able to process your investment request.If you do not provide all relevant identity verificationdocuments, we will not be able to process yourinvestment request.


For Australian resident investors, if you choose not todisclose your TFN, TFN exemption or ABN, we have todeduct tax at the highest marginal tax rate plus Medicarelevy (and any other levies we are required to deduct,from time to time) from distributions we pay you (refer to‘Tax File Number’ in this document).

Up-to-date information about the FundYou can obtain up-to-date Fund performance, actualasset allocations and Fund size information by contactingyour financial adviser, visiting our website, or calling us.

A paper copy of any updated information will be givento you, without charge, on request by contacting us.

A paper copy of the Fund’s annual financial reports, anycontinuous disclosure notices, and any half yearlyfinancial report will also be given to you, without charge,on request.

How to exercise cooling-off rightsThe repayment of your investment under the cooling-offright is subject to an adjustment for market movements(both positive or negative) during the period in which theinvestment has been held. We may also deduct areasonable charge for our administration costs.

Direct InvestorsIf you are a Direct Investor and you wish to exercise thecooling off rights, we must receive your writteninstructions in our office before the expiry of thecooling-off period. This cooling-off right must beexercised within 14 days from the earlier of:

when you receive confirmation of your investment; orthe end of the fifth business day after the day on whichyour units were issued or sold to you.

Indirect InvestorsIf you are an indirect investor, you should seek advicefrom your financial adviser or IDPS operator about thecooling-off rights (if any) that might apply to yourinvestment in or through your IDPS.

Wholesale clientsThese cooling-off rights do not apply to wholesale clients(as defined in the Corporations Act 2001 (Cth)). Pleasenote that as an investor in the Fund you will notnecessarily be a wholesale client for the purposes of theCorporations Act 2001 (Cth).

Additional information about makinga complaintAs part of our commitment to providing quality serviceto our investors, we endeavour to resolve all complaintsquickly and fairly. Our policy is to acknowledge anycomplaint immediately after receiving it and investigate,properly consider and decide what action (if any) to takeand to provide a final response to you within 45 days (30days in relation to privacy complaints).

If you have a particular complaint regarding yourinvestment, please do not hesitate to contact us by callingour Investor Services team on 13 51 53 or +61 2 99947000 from outside Australia (during Sydney businesshours) or by writing to:

Complaints Resolution OfficerFidante PartnersReply Paid 86049Sydney NSW 2001

If you are a Direct Investor and are not happy with ourresponse or how the complaint has been handled (or ifwe have not responded within 45 days, or 30 days inrelation to privacy complaints), you may contact thefollowing external dispute resolution scheme.

Financial Ombudsman ServiceGPO Box 3Melbourne VIC 3001Tel: 1300 780 808www.fos.org.au

Its service is generally only available to retail clients.

New Zealand investors must send all complaints inwriting to the Financial Markets Authority, New Zealand.

Indirect Investors must contact their IDPS operator if theywish to make a complaint or if they are not happy withhow a complaint has been handled.


Any investment can have a substantial impact on yourtax position from year to year. The following informationis of a general nature and is based on our understandingof the Australian tax laws, as at the date of thisdocument, as they relate to Australian resident individualtaxpayers who hold their investment on capital account.It does not take into the account the Australian or NewZealand tax treatment of New Zealand residenttaxpayers. Fidante Partners is not a registered tax(financial) adviser and is not licensed or authorised toprovide tax advice. We recommend that you obtain yourown professional advice regarding your position, as taxand social security laws are complex and subject tochange, and investors’ individual circumstances vary.

The Fund will generally not be liable to pay income taxon its net income (broadly ‘taxable income’) on the basisthat unitholders are presently entitled to the Fund’sdistributable income. You will generally be required toinclude in your assessable income your share of thenet income of the Fund, which is generally based on yourshare of the distributable income of the Fund,including your distributions which are reinvested. Taxlosses incurred by the Fund will remain in the Fund andcan be applied to reduce the Fund’s income in futureyears (subject to the Fund satisfying the specificprovisions of the trust loss carry forward legislation). Forany investors who are non-residents, Australianwithholding tax may be deducted from distributions.

The Foreign Investment Fund (FIF) provisions wererepealed with effect from the 2010/2011 income year.The FIF provisions will be replaced by a specificanti-avoidance roll-up rule for Foreign AccumulationFunds (FAF), which seek to ensure that Australianresidents cannot defer or avoid a tax liability on incomeearned in a FAF. As at the date of this document, theGovernment has not released the final FAF legislation.

The Taxation of Financial Arrangement (TOFA)provisions apply on a mandatory basis to qualifyingtaxpayers in respect of certain financial arrangements.Broadly, the TOFA provisions recognise certain gainsand losses on financial arrangements on an accrualsbasis, which may result in a taxing point prior to therealisation of the investment. Due to the implementationof the TOFA regime, there may be some instances whereyour share of the taxable income of the Fund exceedsthe cash distribution you receive from the Fund. As atthe date of this document, we, as Responsible Entity ofthe Fund, have not made an election to apply one of theelective methods under TOFA.

Some of the income distributed to investors may beclassified as tax-deferred income. For investors who holdtheir units on capital account, the tax-deferred incomeshould not form part of an investor’s assessable incomein the year that the tax-deferred distribution is paid.Instead, the investor’s cost base in the units will bereduced by the tax-deferred amount and may affect thecapital gains tax position of the investment. However,for those investors who have a zero cost base in theirunits, or where the tax-deferred distribution exceeds thecost base of their investment, any tax-deferred amountsreceived should be treated as a capital gain of theinvestor in the year in which payment is made. Investorsshould maintain records of their adjustments.

You may also be entitled to tax credits (franking creditsand/or foreign tax offsets) distributed by the Fund.Provided investors satisfy certain provisions of the TaxAct, investors may be able to utilise these credits againsttheir tax liability on the taxable components of thedistributions. In order to claim the amount of tax credits,investors must include the amount of the credits in theirassessable income.

We will advise each investor of their share of tax creditsin the annual tax statement.

The disposal of units (for instance by withdrawal ortransfer) may give rise to a capital gains tax liability or acapital loss. Investors who have held their units on capitalaccount for more than 12 months may be entitled to acapital gains tax discount. For non-resident investors,complex laws govern the taxation of capital gainsdistributed by the Fund or those realised on the disposalof units. Accordingly, non-resident investors should seektheir own professional tax advice.

The Managed Investment Trust (MIT) capital accountelection regime permits eligible MITs to make anirrevocable election to adopt capital account treatmentfor certain types of assets (broadly shares, units and realproperty) for income years to which the election applies.We, as Responsible Entity of the Fund, have made orwill make an irrevocable election in respect of the Fundand accordingly deemed capital treatment will apply inrespect of the qualifying assets for the income years towhich the election applies.

The Attribution Managed Investment Trust (AMIT)legislation applies to qualifying MITs that make anirrevocable election to become an AMIT. An AMIT mustattribute its taxable income to investors on a fair andreasonable basis, and investors are advised of theirshare of the taxable income via an AMITMember AnnualStatement (AMMA Statement). Other key features ofthe AMIT regime include income character retention,


Howmanaged investment schemes are taxed

deemed fixed trust status, an ability for adjustments anderrors at the trust level to be carried forward and dealtwith in the year in which they are discovered, adjustments(upwards and downwards) made to investors’ cost basesfor CGT purposes, and their costs for revenue purposes,where there are differences between the amountdistributed and the amount attributed on an AMMAstatement, and clarification of the treatment of taxdeferred distributions.

We have determined that the Fund will not elect tobecome an AMIT in respect of the 2016 financial year.We are assessing the impact of the regime on the Fundand will advise you of any decisions made regarding theapplication of the AMIT regime to the Fund.

The Australian Government recently introduced arm’slength income legislation that applies to MITs. Under thislegislation, excess income generated by a MIT fromnon-arm’s length arrangements may be determined tobe subject to tax at 30%.

The Foreign Account Tax Compliance Act (FATCA) isUS legislation targeting US tax residents who do notcorrectly disclose their worldwide income to the USInternal Revenue Service (IRS). Institutions defined as’foreign financial institutions’ (which includes us) arerequired to comply with certain requirements includingthe provision of information to the IRS. The informationwill only relate to investors who we identify as US citizensor residents or those whose citizenship or residency wecannot identify due to insufficient information beingprovided (‘non-compliant account holders’). We willprovide the ATO with any required FATCA informationwhich would otherwise be submitted to the IRS, and therewill be no obligations for us to withhold tax for FATCApurposes from any payments.

GST is not payable on the issue, withdrawal or transferof units in the Fund, as these are input-taxed financialsupplies for GST purposes. However, GST will generallybe incurred on various acquisitions made by the Fund,including the acquisition of investment managementservices. In certain specified circumstances, the Fundmay be entitled to input tax credits (ITCs), or reducedinput tax credits (RITCs) at the prescribed percentageof 55% or 75% depending on the acquisition. Anyavailable ITCs or RITCs effectively reduce thenon-recoverable GST cost incurred.

Tax File NumberOn your application form you may provide us with yourTax File Number (TFN), or TFN exemption. Alternatively,if you are investing in the Fund in the course of anenterprise, you may quote an Australian BusinessNumber (ABN). It is not compulsory for you to quote aTFN, exemption or ABN, but if you do not, then we are

required to deduct tax from any distribution payable toyou at the highest marginal tax rate plus the Medicarelevy (and any other levies we are required to deduct,from time to time). The collection of TFNs is authorised,and their use is strictly regulated by tax and privacy laws.Non-residents are generally exempt from providing aTFN.


How unit prices are calculatedUnit prices are determined in accordance with the Fund’sconstitution and are usually calculated each NSWbusiness day. The calculation of both the investment unitprice and the withdrawal unit price is based on the netasset value (NAV) adjusted by the buy/sell spread. Forinformation on buy/sell spreads, refer to ‘Buy/sellspreads’ in this document.

For investment and withdrawal unit prices, the NAV isthe value of all the Fund’s assets attributed to the Fundless the value of the Fund’s liabilities at the valuationtime. When calculating the NAV, we must use the mostrecent valuations of the Fund’s assets and the mostrecent determination of the liabilities.

The Fund’s assets and liabilities are usually valued eachNSW business day. Generally, for unit pricing purposes,listed securities are valued using the last available marketclose price quoted on the relevant exchange. Otherassets are generally valued at recoverable value. Anyincome entitlements, cash at bank, and any amount ofGoods and Services Tax (GST) recoverable by the Fundfrom the Australian Taxation Office are also included inasset values used to calculate the investment andwithdrawal unit price.

Generally, for unit pricing purposes, liabilities are valuedat cost. Liabilities also include an accrual formanagement costs (which includes management feesup to and including the calculation date) and for costs (ifany) that an investor would ordinarily incur wheninvesting in the Fund’s underlying assets.

Where we receive a valid transaction request before thetransaction cut-off time of 3.00pm (Sydney time) on aNSW business day, the unit price will generally bedetermined at the next valuation time after thattransaction cut-off time. This is typically referred to as‘forward pricing’.

In rare circumstances, we may suspend unit pricingwhere, acting in accordance with our Responsible Entityobligations to unitholders, we consider it impracticableto calculate a NAV.

We have a Unit Pricing Permitted Discretions Policy. Thepolicy sets out how we will exercise any discretions inrelation to unit pricing (such as, for example, how oftenwe determine unit prices and valuation methodology). Ifwe depart from our policy, we are also required to recorddetails of this departure. You can obtain a copy of thispolicy or any recorded departures free of charge bycalling us.

Additional information aboutdistributionsIf we pay a distribution, as a Direct Investor you maychoose to have your distribution reinvested in additionalunits in the Fund, or paid directly to your nominatedaccount with an Australian financial institution. Unlessyou have indicated otherwise, we will reinvest yourdistributions. As an Indirect Investor you should contactyour IDPS operator for distribution options.

The price of units issued on reinvestment of distributionsis the investment price for units next determined afterthe close of business on the last day of the distributionperiod. There is no buy/sell spread reflected in thisinvestment price. The amount of each distribution mayvary. Your share of any distribution depends on howmany units you hold at the end of the relevant period asa proportion of the total number of units in the relevantclass on issue at that time and the amount of distributableincome referable to those units and that class.

As distributable amounts are a component of the unitprice, unit prices normally fall by the distribution amountfollowing a distribution.

The amount of income distributed each year will generallybe the distributable income received by the Fund, unlesswe decide to distribute a different amount. Any net capitalgains derived by the Fund during the financial year aregenerally distributed in the June distribution period.

If you invest just prior to a distribution payment, you mayreceive some of your investment back immediately asincome. Conversely, if you withdraw from the Fund justbefore a distribution, you might turn income into a capitalgain or reduce your capital losses.

Generally, if any distribution payments are returned tous and remain outstanding for a period of 6 months, wemay reinvest those distributions and amend your futuredistribution method to reinvest. Any reinvestment of anunclaimed or returned distribution will be processed usingthe investment unit price current at the time of thereinvestment transaction.

Any reinvestment of an unclaimed or returned distributionwill be processed using the investment unit price currentat the time of the reinvestment transaction.

If you wish to change your distribution paymentinstructions, please follow the process outlined below.

Direct InvestorsPlease mail us an original, signed, written request.


Additional information

Indirect InvestorsPlease contact your IDPS operator for the documentationrequired.

How the Fund is governedThe Fund’s constitution, together with the CorporationsAct 2001 (Cth) and other laws, governs the way in whichthe Fund operates, including the rights, responsibilitiesand duties of the Responsible Entity and unitholders.

The constitutionThe constitution contains the rules relating to a numberof issues including:

unitholder rights;the process by which units are issued and redeemed;the calculation and distribution of income;the investment powers of the Responsible Entity;the Responsible Entity’s right to claim indemnity fromthe Fund and charge fees and expenses to the Fund;the creation of other classes of units; andthe termination of the Fund.

It is generally thought that unitholders’ liabilities arelimited to the value of their holding in the Fund. It is notexpected that a unitholder would be under any obligationif a deficiency in the value of the Fund was to occur.However, this view has not been fully tested at law.

Unitholders can inspect a copy of the constitution at ourhead office or we will provide them with a copy free ofcharge.

We may alter the constitution if we reasonably considerthe amendments will not adversely affect unitholders’rights. Otherwise (subject to any exemption under thelaw) we must obtain unitholder approval at a meeting ofunitholders. We may retire or be required to retire asResponsible Entity if unitholders vote for our removal.

Termination

The constitution, together with the Corporations Act 2001(Cth), governs how and when the Fund may beterminated. We may terminate the Fund at any time bywritten notice to unitholders. On termination, a unitholderis entitled to a share of the net proceeds of our realisationof the assets in proportion to the number of units theyhold in the Fund.

Unitholder meetings

The conduct of unitholder meetings and unitholders’rights to requisition, attend and vote at those meetingsare subject to the Corporations Act 2001 (Cth) and (tothe extent applicable) the Fund’s constitution.

Compliance plan and compliance committeeWe have lodged the Fund’s compliance plan with theAustralian Securities and Investments Commission(ASIC) and established a compliance committee for theFund with a majority of external members. Thecompliance plan sets out how we will ensure compliancewith both the Corporations Act 2001 (Cth) and the Fund’sconstitution.

The compliance committee’s role is to monitorcompliance with the compliance plan. It must alsoregularly assess the adequacy of the compliance planand report any breaches of the Corporations Act 2001(Cth) or the Fund’s constitution to us. If we do not takeappropriate action to deal with the breach, thecompliance committee must report the breach to ASIC.

The Fund and the compliance plan are required to beaudited annually.

Other partiesWe have engaged a custodian to hold the assets of theFund. The custodian has no independent discretion withrespect to the holding of assets and is subject toperformance standards.

The Fund has a registered company auditor. Theauditor’s role is to provide an audit of the financialstatements of the Fund each year, as well as performinga half-yearly review (if required), and to provide anopinion on the financial statements.

Other important informationIndirect InvestorsInvestors accessing the Fund through an investordirected portfolio service (IDPS) or IDPS-like scheme(known commonly as a master trust or wrap account)may use, or be given, this PDS when deciding to investin the Fund. These investors are referred to as IndirectInvestors.

Indirect Investors do not become unitholders in the Fund,nor do they acquire the rights of a unitholder. Theoperator of the IDPS (IDPS operator) acquires thoserights and can exercise or decline to exercise them onbehalf of Indirect Investors. Indirect Investors do notreceive distributions or reports directly from us, nor dothey directly participate in investor meetings or thewinding up of the Fund if this were to occur. IndirectInvestors should direct all their enquiries and complaintsto their financial adviser or the IDPS operator, not to us.

In addition to reading this PDS, Indirect Investors shouldcarefully read the IDPS operator’s offer document, whichexplains the service and the fees payable by the Indirect


Investor to the IDPS operator. To invest, IndirectInvestors need to complete the documentation whichtheir IDPS operator requires.

New Zealand InvestorsThis offer to New Zealand investors is a regulated offermade under Australian and New Zealand law. InAustralia, this is Chapter 8 of the Corporations Act 2001(Cth) (Aust) and regulations made under that Act. In NewZealand, this is subpart 6 of Part 9 of the FinancialMarkets Conduct Act 2013 and Part 9 of the FinancialMarkets Conduct Regulations 2014. Please refer to‘Important Information for New Zealand Investors’

PrivacyWe collect, use and disclose personal information to:

process your application;provide and administer your investment and send youinformation;improve and personalise our products and services;conduct product and market research;inform you about other products and services that maybe useful to you; andcomply with our obligations under the law, includingwith respect of anti-money laundering, financialservices and taxation laws.

We collect personal information from you and, if relevant,from your financial adviser. We may take steps to verifythe information collected. Where you provide us withpersonal information about someone else (for example,your power of attorney, or related persons including thebeneficial owners connected with your investment) youmust have their consent to provide their personalinformation to us.

If you decide not to provide certain information, we maynot be able to process your investment or futurewithdrawal requests, or will have to deduct tax from anydistributions payable to you at the highest marginal taxrate plus the Medicare levy (and any other levies we arerequired to deduct, from time to time).

Disclosing your information

We disclose your information to your financial adviser.In addition, we may disclose information we hold aboutyou:

if you consent to the disclosure;if the disclosure is required or authorised by law;to organisations acting on our behalf (for example,sending your statements);

to professional service firms that provide services tous such as legal and audit services, or data orinformation services;to related companies and/or the investment managerthat may also provide you with a financial product orfinancial service;to electronic identity verification service providers, inorder for identity information (about you or relatedpersons connected with your investment) to be verifiedagainst relevant government and other databases, forthe purpose of complying with anti-money launderinglaws; orotherwise in accordance with our privacy policy.

We do not disclose personal information to recipients inforeign jurisdictions.

From time to time we or our related companies maycontact you to tell you about other products and servicesthat might be useful to you, including financial,superannuation, investment, insurance and fundsmanagement products and services. Please contact us(our details are noted in this PDS) if you do not want toreceive any of this kind of marketing material.

For how you can correct or update the personalinformation we hold about you refer to ‘Keeping usinformed’. Our privacy policy also contains thisinformation as well as further details about our handlingof personal information and about how you can requestaccess to it or lodge a complaint if you believe yourpersonal information has been misused, and how wedeal with complaints.

You can obtain a copy of our privacy policy atwww.fidante.com.au or by contacting us.

We do not normally receive any personal informationabout you when you invest in the Fund through an IDPSoperator. For details on the collection, storage and useof personal information you should contact your IDPSoperator.

The information we collect and store from IDPS operatorsis used to establish and administer its investments. If wedo receive any personal information we will deal with itin accordance with our privacy policy.

For more information regarding the collection and useof personal information, please refer to our ‘PrivacyPolicy’ available on our website or by contacting ourInvestor Services team.


ExplanationInvestment term

Refers to a style of portfolio management where the manager actively makes specific investmentswith the goal of outperforming an investment benchmark. Portfolio investment strategies aregenerally constrained within specific investment risk limits.

active management

A debt security that is secured by assets such as loans, leases, credit card debt, etc. Refer to'Credit risk’ for more information.

asset backed security(ABS)

An investment approach where the focus of the analysis is on individual securities with lessemphasis on broad economic and market cycle themes.

bottom-up investing

Cash and short-term securities include cash, deposits and short-term bank bills. Cash traditionallyproduces a stable investment return (through the payment of interest).

Cash

A derivative contract designed to transfer the credit risk exposure of a debt security from one partyto another. A CDS contract can be used to create or reduce exposure on a particular debt security.In the event of default on an underlying debt security, the purchaser of the CDS contract is generallyentitled to receive face value in exchange for delivering the underlying debt security.

credit default swap (CDS)

A debt security or derivative that has credit risk.credit investment

Buying a CDS contract to protect, or benefit from, the deterioration in credit quality of an underlyingdebt security.

credit protection

A financial instrument that is an obligation of its issuer to make payments to the holder of theinstrument. The terms of the instrument define the interest payment terms, maturity date andinvestor protections. Debt securities can be bought and sold between different parties eitherover-the-counter or on an exchange. Examples of debt securities include government bonds,investment grade corporate bonds, non-investment grade corporate bonds (high yield bonds),syndicated loans, preferred securities and asset backed securities.

debt security

The financial ratio that relates the change in the price of a derivative to the corresponding changein the price of an underlying asset.

equity delta

A fixed interest security is a debt security that makes interest payments based on a fixed rate thatis set at the time of issuance. The market value of fixed interest securities can be affected bychanges in market interest rates.

fixed income security

A floating rate security is a debt security that makes interest payments based on a market referencerate that is likely to change during the term of the instrument plus an interest margin, which is setat the time of issuance. The interest payments for a floating rate security vary with short-terminterest rates. A commonmarket reference rate for AUD floating rate securities includes the 90-dayBank Bill Swap Rate.

floating rate security

A non-investment grade security issued by a corporation.high yield bond

Hybrid securities are financial securities that have aspects of both equity and debt securities. Thesecurities can include debt security terms such as defined interest payments and redemptionfeatures as well as equity terms such as the ability to convert into equity and discretionary paymentof income distributions.

hybrid security

An investment grade security issued by a corporation.investment grade bond

Debt securities are generally assigned a credit rating of BBB–/Baa3 or better by the credit ratingagencies. The credit ratings assigned by rating agencies represent an assessment of the borrower’screditworthiness, that is, its ability to make interest and principal payments. Higher rated borrowerswith an investment grade rating generally allow companies to reduce the interest rates that theypay on their debt when compared with lower rated borrowers.

investment grade security

Debt securities that are generally unrated or assigned a credit rating of below BBB–/Baa3 by thecredit rating agencies. The credit ratings assigned by rating agencies represent an assessmentof the borrower’s creditworthiness, that is, its ability to make interest and principal payments.Non-investment grade borrowers generally pay higher interest rates than higher rated borrowersas their financial position is not as strong.

non-investment gradesecurity


Glossary

ExplanationInvestment term

A debt security that has not been rated by a large credit rating agency, usually because the securityis too small.

non-rated securities

An ABS backed by a pool of residential home mortgages.residential mortgagebacked security (RMBS)

United States Securities and Exchange Commission.SEC

Shares (also known as equities) represent the part ownership in a company and generally havevoting rights. Shares are the residual claim on the assets of a company after all liabilities are paid.Shareholders may be entitled to receive some of the company’s profits if the company’s boarddecides to pay a dividend. Shareholders may experience some capital growth if the share pricerises, or some capital loss may occur if the share price falls.

shares/equities

An investment approach that focuses on broader economic andmarket cycle themes in an attemptto identify investment sectors that are forecasted to outperform the market (not the individualcompany or companies).

top-down investing


This offer to New Zealand investors is a regulated offermade under Australian and New Zealand law. InAustralia, this is Chapter 8 of the Corporations Act 2001(Aust) and regulations made under that Act. In NewZealand, this is subpart 6 of Part 9 of the FinancialMarkets Conduct Act 2013 and Part 9 of the FinancialMarkets Conduct Regulations 2014.

This offer and the contents of the offer document areprincipally governed by Australian rather than NewZealand law. In the main, the Corporations Act 2001(Aust) and the regulations made under that Act set outhow the offer must be made.

There are differences in how financial products areregulated under Australian law. For example, thedisclosure of fees for managed investment schemes isdifferent under the Australian regime.

The rights, remedies, and compensation arrangementsavailable to New Zealand investors in Australian financialproducts may differ from the rights, remedies, andcompensation arrangements for New Zealand financialproducts.

Both the Australian and New Zealand financial marketsregulators have enforcement responsibilities in relationto this offer. If you need to make a complaint about thisoffer, please contact the Financial Markets Authority,New Zealand (http://www.fma.govt.nz). The Australianand New Zealand regulators will work together to settleyour complaint.

The taxation treatment of Australian financial productsis not the same as for New Zealand financial products.If you are uncertain about whether this investment isappropriate for you, you should seek the advice of anappropriately qualified financial adviser.

This offer may involve a currency exchange risk. Thecurrency for the financial products is not New Zealanddollars. The value of the financial products will go up ordown according to changes in the exchange rate betweenthat currency and New Zealand dollars. These changesmay be significant.

If you expect the financial products to pay any amountsin a currency that is not in New Zealand dollars, you mayincur significant fees in having the funds credited to abank account in New Zealand dollars.

The dispute resolution process described in this offerdocument is available only in Australia and is notavailable in New Zealand.

Contact details for New Zealand InvestorsInvestor Services team: +612 9994 70008.00am to 6.00pm Monday to Friday (Sydney time)Fax: +612 9994 6666Website: www.fidante.com.au


Important information for New Zealandinvestors

http://www.fma.govt.nz/

http://www.fidante.com.au

Level 12179 Elizabeth StreetSydney NSW 2000

T 02 9994 7921F 02 9994 6666

Bentham Asset Management Pty Limited (ABN 92 140 833 674, AFSL 356199) is authorised to provide financialservices to wholesale clients only. The information in this document is provided for use by such wholesale clients, isgeneral in nature and does not take into account the personal circumstances, financial needs or objectives of anyperson. You should seek independent financial advice and read any relevant Product Disclosure Statement or otheroffer document prior to acquiring a financial product.

Documents

Long Form PDS NZ Master Shell - Bentham Asset · PDF file · 2017-03-24AboutthisProductDisclosureStatement(PDS) ThisdocumentprovidesinformationtohelpinvestorsandtheiradvisersassessthemeritsofinvestingintheBenthamWholesale