Personalised Portfolio PDS Part 2

Issued ₃₀ September ₂₀₁₈

AMP Personalised Portfolio Product disclosure statement – Part ₂ AMP Personalised Portfolio Supplementary product disclosure statement

This is a supplementary product disclosure statement (SPDS) that replaces the SPDS dated 12 April 2019 to the following documents and should be read together with these documents: – AMP Personalised Portfolio Product disclosure statement – Part 1, issued 7 November 2017 – AMP Personalised Portfolio Product disclosure statement - Part 2 issued 30 September 2018 The SPDS should be read together with these documents. This SPDS includes: A. updates to explanation of Direct shares in Individual control, professional management and administration as at 31 October 2019 B. updates to Investment choices, Personal Investment Portfolio in Key features at a glance as at 31 October 2019 C. updates to Eligible investment selection process as at 31 October 2019 D. updates to How model portfolios work, Corporate actions as at 31 October 2019 E. removed Adviser managed model portfolios paragraph at 31 October 2019 F. updates to Personal investment Portfolio, Corporate actions as at 31 October 2019 G. updates to the Fees and other costs table and footnotes as at 31 October 2019 H. updates to additional examples of total annual fees and costs as at 31 October 2019 I. changes to the Complaints process as at 30 September 2018 J. updates to Payments to AMP group companies as at 12 April 2019 K. updates to Deceased estate on charging and reversing fees upon receipt of notification of the death of a Customer as at 31 October 2019 L. updates to Tax and other important information to include Related parties as at 31 October 2019 M.changes the names of Ralton Australian Shares, Ralton High Yield Australian Shares and Ralton Small Companies portfolios as at 12 April 2019 N. closed portfolios as at 12 April 2019: Janus Henderson High Conviction Australian Equity, UBS Australian Small Companies and UBS Concentrated Australian Equity model portfolios closed portfolios as at 31 October 2019: AMP Capital Australian Equity Growth Model Portfolio, Perennial Value Australian Share Model Portfolio, Ralton Professional Partners Australian Shares Model Portfolio, Ralton Australian Equity Ex-50 Model Portfolio

Issue date: 31 October 2019

The issuer of this document is NMMT Limited (NMMT) ABN 42 058 835 573 AFS Licence No. 234653. The information provided in this Supplementary product disclosure statement is general information only and does not take into account your individual objectives, financial situation or needs. Before acting on the information, you should consider the appropriateness of this information having regard to your individual objectives, financial situation and needs and consult a financial adviser. AMP Personalised Portfolio Part 1

A. Removing or closing investment options Page reference: 4 Title reference: Individual control, professional We may, from time to time, redeem or close certain investment management and administration. options where the underlying investment is either terminating Instructions: Replace the Direct shares row in the table or being closed by the fund manager. We may also decide to with the following. redeem (terminate) or close certain investment options as part of our ongoing review and due diligence (refer to Eligible investment selection process within the same section above). Listed securities within the S&P/ASX 300 and Direct Where this occurs, we will normally provide you with at least selected exchange traded funds (ETFs) and 30 days’ prior notice. Prior to receiving any new instructions shares exchange traded commodities (ETCs), listed investment companies (LICs) and listed for terminated investments, we will invest the proceeds of the investment trusts (LITs). redemptions in your cash account. Where we cannot provide you with at least 30 days’ prior notice (due to circumstances B. outside of our control or in circumstances where we believe that there is immediate investment risk), we will provide you Page reference: 6 with notice as soon as practicable. Title reference: Key features at a glance. D. Instructions: Replace the Personal Investment Portfolio row in the Investment choices table with the following. Page reference: 10 Title reference: How model portfolios work. Feature Information See section Instructions: Replace the third paragraph in the How model portfolios work section to read as follows. Investment choices Personal You can construct your own 2 - Investment Investment personalised portfolio of listed choices Corporate actions Portfolio securities within the S&P/ASX We engage investment managers to make all decisions for 300 and Hybrids/ETF/LIC/LIT & their model portfolios, including in relation to corporate actions ETC’s where approved. such as mergers or buy-backs. Furthermore, the investment C. managers do not take into account the financial circumstances of any individual investor when managing their model Page reference: 9 portfolios. Title reference: Eligible investment selection process. We have appointed a broker to execute all purchases and sales Instructions: Replace the Eligible investment selection of securities for the model portfolios. process section to read as follows. E.

Eligible investment selection process Page reference: 11 The investment menu offers a range of Professionally Managed Title reference: Adviser managed model portfolios. Portfolio investment options including: Instructions: Remove section titled Adviser managed model portfolios. – Model Portfolios – Refer to PDS Part 2 for available options – Managed Funds – Refer to Investment Options document F. for available options S&P/ ASX 300 listed securities are also available for investment Page reference: 11 in addition to the following security types where approved: Title reference: Personal Investment Portfolio. – hybrid securities Instructions: Replace the third paragraph in the Personal Investment Portfolio section to read as follows. – exchange traded funds (ETFs) and exchange traded commodities (ETCs) – listed investment companies (LICs) and listed investment Corporate actions trusts (LITs) For listed securities that you hold within the Personal The investment options are subject to ongoing review and due Investment Portfolio we generally facilitate participation in diligence. This is performed against a number of investment corporate actions for listed securities within the S&P/ASX 300 and client related criteria as well as risk considerations. These or an approved security or listed managed investment. are aimed at assessing the ongoing suitability of the option for Corporate actions available to you include, but not restricted clients, and include but are not limited to factors relating to to rights issue, priority offers, take overs, mergers and buy backs. the fund manager (investment process, resourcing and support, However, initial public offers, share purchase plans, dividend implementation, and performance), and others specific to the reinvestment plans and proxy voting are currently not available investment option such as relative risk, costs and tax, market through the Personalised Portfolio. risk, liquidity risk, operational risk and credit risk. All investment Corporate actions that include an offer to acquire a holding in options are subject to the same review criteria, including a listed managed investment, may also be available, where investment options offered by related parties. applicable, subject to the screening process for managed investments.

2 G.

Page reference: 18-19 Title reference: Fees and other costs. Instructions: Replace the Fees and other costs table and footnotes with the following.

AMP Personalised Portfolio

Type of fee or cost Amount How and when paid

Fees when your money moves in or out of the managed investment product

Establishment fee Nil Not applicable The fee to open your investment

Contribution fee Nil Not applicable The fee on each amount contributed to your investment

Withdrawal fee Nil Not applicable The fee on each amount you take out of your investment

Exit fee Nil Not applicable The fee to close your investment

Management costs

The fees and costs for managing your Amount invested Fee - Fee - The administration fee is calculated daily based on your (i) investment Model Managed total portfolio balance in the relevant asset type and is The amount you pay for specific portfolios funds and deducted from your cash account each month in arrears. investment options is set out in the and Cash Personal Investment Options document, PDS account Investment Part 2 or the underlying PDS. %pa Portfolio %pa

First $100,000 0.7250 0.8200 Next $150,000 0.4550 0.6150 Next $500,000 0.3075 0.3075 Next $2.25 million 0.1025 0.1025 Balance over $3 Nil Nil million Minimum daily $1.35 $2.25 administration fee applies to total portfolio balances less than: 1. $67,966 for Model portfolios and Cash account 2. $100,000 for Managed funds and Personal Investment Portfolio

Plus 0.1025% to 0.9319% pa of the net asset value Investment management fees(iii) are calculated daily of any model portfolios(ii) based on the value of your model portfolio(s) and are deducted from your cash account monthly in arrears. Plus 0.00% to 0.26% pa of the net asset value of Estimated investment management performance any model portfolios(ii) fees(iv) are payable on certain model portfolios. They are calculated on a quarterly basis and are deducted from your cash account quarterly in arrears. They are variable and may be more, or less, than the amounts shown.

Plus 0.00% pa of the net asset value of any model Estimated indirect costs(iv) are deducted from the (ii) portfolios securities held by the model portfolio as and when incurred. They are variable and may be more, or less, than the amounts shown.

3 AMP Personalised Portfolio

Type of fee or cost Amount How and when paid

Fees when your money moves in or out of the managed investment product

Service fees(v) (vi) Switching fee Nil. However, underlying buy/sell costs may Not applicable The fee for changing investment apply. options

(i) Underlying management costs may also apply. Refer to Underlying fees and costs for investment options in the Additional explanation of fees and costs for more information. (ii) Refer to the PDS Part 2 for the amounts for each model portfolio. (iii) Refer to the Additional explanation of fees and costs for more information. (iv) Costs are variable and may be more or less than the estimated amounts shown which are based on the known actual or estimated costs incurred for the last financial year. Past costs are not a reliable indicator of future costs. Refer to the Additional explanation of fees and costs for more information. (v) Ongoing advice fees and other service fees may also apply. Refer to Payments to your financial adviser and Other service fees in the Additional explanation of fees and costs for more information. (vi) Refer to Underlying fees and costs for investment options in the Additional explanation of fees and costs for more information.

Page reference: 25 Page reference: 25 Title reference: Additional examples of total annual fees Title reference: Additional examples of total annual fees and costs. and costs. Instructions: Replace Example 1 with the following. Instructions: Replace Example 2 with the following.

Example 1 – Managed fund Example 2 – Model portfolio

Example - Experts' Balance of $100,000 with a Example – DNR Capital Balance of $100,000 with a Choice Balanced contribution of Australian Equities contribution of $5,000 during investment option $5,000 during the year High Conviction the year

Cost of the Service(i) 0.82% pa For every $100,000 you have Cost of the Service(i) 0.725% pa For every $100,000 you have in the Service and for every in the Service and for every $5,000 you put in, you will be $5,000 you put in, you will be charged $820. charged $725. Plus Other costs for the 1.01% pa And, other costs of $1,010 Plus Other 0.5638% pa And, you will be charged other investment option(ii) each year will be deducted management costs(ii) management costs of $563.80 from your investment. each year. Equals Total fees and If you had an investment of Equals Total fees and If you had an investment of costs(iii) $100,000 at the beginning of costs(iii) $100,000 at the beginning of the year and you put in an the year and you put in an additional $5,000 during that additional $5,000 during that year, you would be charged year, you would be charged total fees and costs total fees and costs of $1,830 for holding the of $1,288.80 for holding the Experts' Choice Balanced DNR Capital Australian investment option. Equities High Conviction model portfolio. (i) This amounts comprises the administration fee for the Service. It does not include the administration fee of the contribution of (i) This amounts comprises the administration fee for the Service. It $5,000 during the year which would equal an additional $41 if does not include the administration fee of the contribution of invested at the beginning of the year. $5,000 during the year which would equal an additional $36.25 (ii) This amount comprises estimates of underlying management if invested at the beginning of the year. costs for the Experts' Choice Balanced investment option based (ii) This amount comprises the investment management fee of on the last financial year. It does not include underlying 0.5638% pa for the DNR Capital Australian Equities High management costs on the contribution of $5,000 during the year Conviction model portfolio plus the estimated investment which would equal an additional $50.50 if investment at the management performance based fee of 0.00% pa based on the beginning of the year. actual costs incurred for the last financial year. It does not (iii) Additional fees and costs may apply, including ongoing and one-off include other management costs on the contribution of $5,000 adviser fees, as agreed with your financial adviser, and underlying during the year which would equal an additional $28.19 if invested transactional and operational costs for investment options. And, at the beginning of the year. a buy/sell cost of 0.40% applies whenever you invest in the Experts' (iii) Additional fees and costs may apply, including ongoing and one-off Choice Balanced investment option (this will equal $20.00 for adviser fees, as agreed with your financial adviser. And, a every $5,000 you invest). transaction fee will apply whenever you move money in or out of the DNR Capital Australian Equities High Conviction model portfolio (this will equal $12.50 for every $5,000 you invest).

4 I. J.

Page reference: 30 Page reference: 23 Title reference: If you have a complaint Title reference: Payments to AMP group companies Instructions: Replace the section with the following. Instructions: Remove the following sentences.

If you have a complaint If you have a margin lending facility, your lender may pay an If you need any additional information about the operation or amount to your financial adviser in relation to that facility. management of your account, or if you have a concern or Please refer to the relevant margin lending PDS and/or your complaint, then please contact: financial adviser for more information. – your financial adviser K. – call the Personalised Portfolio Service Team on 1300 423 079 Page reference: 23 – email us at [email protected], or Title reference: Deceased estate Instructions: Insert the below Deceased estate section – write to us at: after the Maximum fees section. Personalised Portfolio PO Box 4054 PARRAMATTA NSW 2124 Deceased estate Our customer service officers are available to answer your All adviser service fee deductions are ceased upon notification enquiries and respond to your complaints. We will try to resolve to the relevant Entity of a customer’s death. your enquiry or complaint within 10 business days. To help us Any adviser service fees deducted since the date of death will do this, please give us as much information as possible about be reversed back to date of death. your complaint, including your name and account number. Administration and investment management fees will continue If you have a concern or complaint about your adviser or the whilst the deceased customer’s account remains open and are financial product advice you received, please approach the treated in accordance with the applicable product rules and Australian financial services licensee for whom your adviser disclosures. was acting. L. If you have a concern or complaint regarding an investment acquired through this service, please contact us using the Page reference: 27 contact details above. We can direct your complaint or facilitate Title reference: Related parties a resolution with the relevant investment manager. Instructions: Insert the below Relates parties section after If you have a concern or complaint about your adviser or the the Responsible entity section. financial product advice you received, please approach the Australian financial services licensee for whom your adviser Related parties was acting. If you have a concern or complaint regarding an investment NMMT may appoint related parties within the AMP group of acquired through this service, please contact us using the companies as the investment managers in respect of particular contact details above. We can direct your complaint or facilitate managed portfolios. Such appointments will be made on an a resolution with the relevant investment manager. ‘arm’s-length’ basis. We have established procedures to deal with any complaints. If you make a complaint, we will: – acknowledge its receipt and ensure an appropriate person properly considers the complaint, and – respond to you as soon as we can within 10 business days. If your complaint cannot be resolved at first contact, then we will keep you advised at regular intervals of the status of your complaint. If we cannot resolve your complaint to your satisfaction or you have not had a response from us within 45 days, then you may have the right to lodge a complaint with the Australian Financial Complaints Authority (AFCA). AFCA will provide fair and independent financial services complaint resolution that is free to consumers and will accept customer complaints. Contact details for AFCA are: Web: afca.org.au Email: [email protected] Telephone: 1800 931 678 (free call) Mail: GPO Box 3, Melbourne VIC 3001

5 AMP Personalised Porfolio Part ₂

Instructions: Throughout this document change names of the following model portfolios:

Previous name New Name

Ralton Australian Shares Ralton Concentrated Australian Equity Ralton High Yield Australian Shares Ralton Dividend Builder Ralton Small Companies Ralton Australian Equity Ex-50

Instructions: Throughout this document remove all references to the following: – AMP Capital Australian Equity Growth Model Portfolio – Janus Henderson High Conviction Australian Equity – Perennial Value Australian Share Model Portfolio – Ralton Professional Partners Australian Shares Model Portfolio – Ralton Australian Equity Ex-50 Model Portfolio (formerly known as Ralton Smaller Companies Model Portfolio) – UBS Australian Small Companies – UBS Concentrated Australian Equity.

phone 1300 423 079 web amp.com.au/personalisedportfolio email [email protected] mail Personalised Portfolio PO Box 4054 Parramatta NSW 2124 10/19 23638A

6 Neither NMMT nor the investment managers are representing that the How to read this document strategies or investment options outlined in this PDS are necessarily appropriate for you. This Product Disclosure Statement (PDS) for the AMP Personalised Portfolio ARSN 131 208 841 (referred to in this This offer is available only to persons receiving it (including electronically) PDS as ‘Personalised Portfolio’ or ‘the Service’) is an important within Australia. We cannot accept cash, or applications signed and mailed document and will help you understand how the Personalised from outside Australia. Monies received or paid must always be in Portfolio works. Australian dollars. We reserve the right to refuse or reject an application. This PDS is in two parts: This offer is subject to the terms and conditions described in this PDS and as set out in the constitution. NMMT reserves the right to change these Part 1: which summarises the benefits, options, features and terms and conditions (see ‘Changes to this PDS’ below) and to refuse or risks of the Service reject an application (in whole or in part). Part 2: this document, which provides information about the The information contained in this PDS is of a general nature only. It is not model portfolios available. based on your personal objectives, financial situation and needs. You should You can obtain a free printed copy of the PDS by contacting us. consider whether the Personalised Portfolio is appropriate to your needs, You can find our contact details on the back cover of this PDS. objectives and circumstances in consultation with your financial adviser, and consider the product disclosure statements relating to any managed You will also find more detailed information on other funds you invest in. These are available from your financial adviser, by investment options in the Investment Options document, which visiting our online service (amp.com.au/personalisedportfolio) or by calling is not part of the PDS. The Investment Options document is us on 1300 423 079. available for download at amp.com.au/personalisedportfolio. AMP companies receive fees and charges in relation to the Personalised We also have an User Guide (Guide) for the Service, which is Portfolio as outlined in this PDS. AMP employees and/or directors receive not part of the PDS, to assist you with useful information in salaries and/or benefits from the AMP group. managing your account. The Guide is available at amp.com.au/personalisedportfolio.

This PDS is issued by NMMT Limited, ABN 42 058 835 573, AFSL No. 234653 (NMMT) which is the responsible entity of the AMP Personalised Portfolio, a member of the AMP group of companies. Changes to the PDS No other company in the AMP group is responsible for any statements or The information in the PDS may change from time to time. If representations made in this PDS except AMP Capital Investors which is the information is not materially adverse, we may include it in an AMP group company and is responsible only for statements about its an update on our website. You can obtain updated information role and strategy as an investment manager. by: Neither NMMT nor any other company in the AMP group guarantees the – visiting amp.com.au/personalisedportfolio repayment of capital or the performance of the investment options or any – asking your financial adviser (if applicable) particular rate of return. The investment managers do not guarantee a – calling us on 1300 423 079 to request a free paper copy of the particular rate of return or the repayment of capital unless expressly stated updated information. for an investment option. This offer is subject to the terms and conditions described in Investments through the Personalised Portfolio are not deposits or liabilities this PDS. We reserve the right to change these terms and of NMMT, any other member of the AMP group or any of the investment conditions and we will provide notice before or as soon as managers. Investment through the Personalised Portfolio is subject to practicable after the change. If we make an increase to fees, investment risks, which could include delays in repayment and loss of we will give you at least 30 days' prior written notice. For any income and capital invested. other material change we will inform you as soon as practicable. You are responsible for appointing your financial adviser. NMMT is not responsible for the advice or actions of your financial adviser. The model portfolio descriptions in this PDS have been prepared by the investment managers for the purpose of this PDS. NMMT has relied on the investment managers in relation to the accuracy and completeness of that information. Each of the investment managers has given written consent to be named in this PDS with the statements about the investment manager and the investment manager’s strategy appearing in the form and context in which they appear. They have not withdrawn their consent before the date of this PDS. No investment manager takes responsibility for the issue of this PDS or for any statements in this PDS other than those about the relevant investment manager and the investment manager’s strategy. The investment managers are appointed by and provide services to the responsible entity for the investment options. For those services, the investment managers do not have a contractual relationship with investors and are not providing personal advice to investors. Each investment manager may give advice and take action for itself or others which differs from advice given and action taken in relation to a model portfolio. The investment managers own the intellectual property in relation to model portfolios which they generate, and that intellectual property must not be disclosed or used other than for the purpose of obtaining advice on, or for the administration, reporting, monitoring or management, or the satisfaction of legal obligations in respect of the relevant investors’ portfolios. Contents

1. Investment styles 4 Explanation of investment styles 4 Socially Responsible Investment (SRI) 4

2. Model portfolio profiles 6 AMP Capital Australian Equity Dividend Model Portfolio 6 AMP Capital Australian Equity Growth Model Portfolio 7 AMP Index – Top 20 Model Portfolio 8 Bennelong ex-20 Australian Equities 9 DNR Capital Australian Equities High Conviction Model 10 Portfolio DNR Capital Australian Equities Income Model Portfolio 11 DNR Capital Australian Equities Socially Responsible Model 12 Portfolio DNR Capital Australian Listed Property Trust Model 13 Portfolio Hyperion High Conviction Large Cap ASX 300 Model 14 Portfolio Janus Henderson High Conviction Australian Equity Model 15 Portfolio Nikko AM Australian Share Value Model Portfolio 16 Perennial Value Australian Share Model Portfolio 17 Ralton Australian Shares Model Portfolio 18 Ralton High Yield Australian Shares Model Portfolio 19 Ralton Professional Partners Australian Shares Model 20 Portfolio Ralton Smaller Companies Model Portfolio 21 UBS Australian Small Companies Model Portfolio 22 UBS Concentrated Australian Equity Model Portfolio 23

3. Glossary 24 ₁. Investment styles

Explanation of investment styles For each of the model portfolios, we have listed the investment styles that you can expect the model portfolios to demonstrate, to allow you to easily compare the investment styles of the individual investment managers. The PDS for each managed fund may also provide information about the investment style of the fund. The information below explains these investment styles. Investment Term Meaning

Active Active managers seek to attain returns above a set benchmark by asset allocation and stock selection. Active management is the opposite of passively managed index strategies.

Growth Growth managers are primarily looking for companies whose businesses are likely to expand or ‘grow’ via future earnings growth. An example of a growth company is one likely to increase its profits year after year. Income Income investment managers seek to construct a portfolio consisting of securities whose principal attractiveness lies in the steady income they provide. Enhanced index Enhanced index managers seek to use a range of enhancement techniques such as participation in floats, placements, etc, to enhance the return of the relevant benchmark index. To achieve these ‘enhanced’ returns, enhanced index options take on slightly higher levels of risk than an indexed option. Index Index managers seek to follow the return of the relevant benchmark index. Small cap Small cap investment managers seek to construct a portfolio consisting of stocks with a relatively small market capitalisation.

Socially Responsible SRI is an investment which, in addition to assessing a company’s financial performance, may take into account Investment (SRI) non-financial concerns such as working conditions, human rights, social impacts, shareholders’ rights and the environment. (More information on the model portfolios that use this approach, refer to the section 'Socially Responsible Investment (SRI)" below.

Style neutral Style neutral managers follow an approach that seeks to ensure that the portfolio selected has neither a growth nor value bias. Value Value managers will tend to buy shares that are out of favour whose price looks cheap or ‘good value for money’, while selling shares that are currently popular and appearing expensive.

Socially Responsible Investment (SRI) Each company is screened and assessed against DNR Capital’s negative screens which include: Ethical and socially responsive investing (SRI) are investment – Pornography—production, distribution and sale of approaches that can include analysis of each company’s social, pornography as a core business. labour, environmental and ethical performance within the context of traditional fundamental and financial analysis. – Gaming—core business of owning or operating a gaming related business or manufacture and supply of gaming The following model portfolios uses SRI approaches as outlined equipment and systems. below. – Armaments—supply and distribution of weapons components The DNR Capital Australian Equities Socially Responsible Model to Defence Forces or any other business/individual. Portfolio takes into account environmental, social and ethical (ESG) – Tobacco—manufacture and distribution of tobacco related considerations for the purpose of selecting, retaining or realising the investments in the Model Portfolio. products. – In determining if the business operation in question is ‘core’ In constructing and managing this Model Portfolio, DNR Capital or ‘non-core’, DNR Capital assesses company management’s considers investment in companies that have been researched and assessed using an environmental, social and ethical (ESG) comments as to whether or not the business is part of their screening process. strategy and their intent to commit capital.

4 If a company is captured by one of these negative screens, then business’s overall quality attributes. The process of monitoring shares in that company will not be included in the Model Portfolio. the ESG considerations requires a subjective judgement as to the If a negative screen does not exclude a company, then the company effect on a security’s future financial performance. It should will be scored and assessed relative to the S&P/ASX 200 having however be noted that decisions about whether to buy, hold or regard to DNR Capital’s positive ESG screens. The scoring system sell investments for the High Conviction and Income Model assigns a company one point for each consideration the company Portfolios are based primarily on traditional financial analysis. meets (in deciding whether a company meets a consideration, The AMP Capital Model Portfolios are constructed with the input DNR Capital relies on information provided by an external service of the AMP Capital Australian Equity ESG (Environmental, Social provider). Scores are tallied and then expressed as a percentile for and Governance) analytics framework. This reflects and ranks the comparative purposes. There is a preference for companies scoring analysts view of the SRI credentials of the stock and covers for in the upper half of the S&P/ASX 200 average, i.e. the 51st example businesses in the manufacture of tobacco, armaments, percentile. gaming, abortion, pharmaceuticals and companies involved in In considering a company’s environmental impact, matters such oppressive regimes, environmental degradation, exploitation of as the following are considered: third world labour, and impact on indigenous land, indigenous – Its environmental policies including commitment to rights, and sacred sites. The ultimate decision on portfolio inclusion monitoring and publicly reporting on these policies. rests with the Portfolio Manager. – Commitment to globally applicable operating standards. Ralton is of the view that SRI considerations are integral to a – Commitment to address product/service impact. consideration of business sustainability (i.e. will the company’s social license to operate be maintained). SRI is considered when – Strategic moves towards sustainability. determining the 'quality of the company'. SRI research typically is – Environmental performance against relevant data available. qualitative in nature and centres around the sustainability of the – There is also consideration of the climate change impact of corporate business model. an industry that a company operates in and companies that Perennial Value Management Limited is a signatory to the United develop or use renewable energy are favoured. Nations Principles for Responsible Investing (UNPRI). We believe In considering a company’s social responsibility, matters such as that environmental, social and corporate governance (ESG) issues the following are considered: can affect the performance of companies and, in turn, influence the performance of our investment portfolios (to varying degrees – The Board’s responsibility for stakeholders, including across companies, sectors, regions, asset classes and through time). employee-related issues, external stakeholder issues and As astute investors, we believe that we have a role to play in environmental issues. ensuring the best custodianship of assets in which our portfolios – Commitment to promoting equal opportunities and diversity. invest on behalf of our clients. – The company’s systems for managing health and safety. As an active manager of securities, we take ESG responsibilities – Policies promoting employee training and development. very seriously. Research into the ESG attributes of companies is – Involvement in charitable/community work is also favoured. incorporated into our investment process to provide us with a more comprehensive and holistic view of the companies in our In considering a company’s governance practices, matters such as stock universe. We believe the integration of ESG research into global corporate governance components such as having a separate our investment process will ultimately lead to better return chair and chief executive, having more than 33% of the board as outcomes for our clients. independent non-executives, having an audit committee, the majority of whose members are independent non-executives and ESG factors and Perennial Value Management’s investment process disclosure of the remuneration of company directors are ESG principles are incorporated into our investment analysis and considered. DNR Capital also looks for bribery and corruption portfolio management decision making in the following manner: policies which prohibit the giving and receiving of bribes and facilitation payments, restricts the giving and receiving of gifts 1. Analysts’ written research reports on companies encompass and provides transparency of political donations. Commitment to an ESG section, reflecting the analysts’ view on how a company these polices at a board level and at a business partner level such is performing on ESG issues. as contractors and suppliers is also favoured. 2. Specific ESG questions are also asked directly of a company and Other positive attributes that influence inclusion in the Model these vary depending on the particular company's industry and Portfolio are companies that provide environmental technologies operations. and renewable energy, waste disposal services, healthcare products 3. The above considerations may affect the level of conviction and or services, public transport, social infrastructure, environmental confidence that an analyst places on a company. solutions, IT solutions and education. 4. This in turn affects the ultimate inclusion or weighting of a The Model Portfolio is formally reviewed monthly. Any investment company in the portfolio. that no longer meets the ethical (or financial) criteria is generally We also include ESG considerations in our annual broker panel removed from Model Portfolio as soon as possible. review. DNR Capital incorporates ESG considerations into our Australian At stock level, responsibility for assessing ESG issues resides with Equities High Conviction and Income Model Portfolios through a the individual analyst responsible for each stock. Additionally, one scoring system. This score is derived from assessment which of our analysts is responsible for co-ordinating our ESG approach utilises data from external data providers as well as DNR Capital’s across the Team own assessment and has key regard to tail risks that could impact valuation. The ESG score forms part of a broader assessment of a For further information on the model portfolio investment strategies and processes, see section 2 ‘Model portfolio profiles’.

5 ₂. Model portfolio profiles

The following section provides a profile of each model portfolio available for selection on the investment menu, including the investment objective, strategy and details of fees and costs that apply.

AMP Capital Australian Equity Dividend Model Portfolio

Investment Manager Benchmark Index AMP Capital Investors Limited ABN 59 001 777 591 (AMP Capital) The Model Portfolio uses the S&P/ASX 200 Accumulation Index is a specialist investment manager with a large team of in-house as a reference index for performance purposes. investment professionals. The capability of AMP Capital in Australian shares includes both quantitative and fundamental Fees and costs approaches that focus on extracting the maximum value from the specific investment style. The fees and costs specific to the Model Portfolio are outlined below: Designed for investors who: – Investment management fee of 0.46% pa of the balance invested using the Model Portfolio. – Seek medium to long-term returns with a focus on income – Investment management performance fee of 16.5% of the and moderate capital growth Model Portfolio’s out-performance of the S&P/ASX 200 – Accept the risk of price fluctuations Accumulation Index (subject to a high watermark). We have – Have a minimum time frame for investment of five to seven estimated the investment management performance fee to years. be 0.00% pa of the balance invested using the Model Portfolio based on the last financial year. Investment Style – Estimated indirect costs of 0.00% pa of the balance invested The Model Portfolio is expected to demonstrate an income style using the Model Portfolio based on the last financial year. The bias. Model Portfolio does not currently hold any ETFs, LICs or LITs however should this change then indirect costs may apply in Investment Strategy the future. The Model Portfolio primarily invests in a diversified portfolio of high-quality, larger capitalised ASX-listed companies with strong Asset Allocation balance sheets. The Model Portfolio targets investments with a Asset sector Ranges Benchmark (%) bias towards companies paying higher dividend yields. Where possible, portfolio construction aims to maximise the benefit of Minimum (%) Maximum (%) franked income. Australian 90 100 100 Influenced by current and future economic forecasts, the Model shares Portfolio’s sector weightings will tilt toward areas where AMP Cash 0 10 0 Capital anticipates income and capital growth to be above average.

6 AMP Capital Australian Equity Growth Model Portfolio

Investment Objective Average number of securities The investment objective of the AMP Capital Australian Equity The Model Portfolio will typically invest in 10-20 securities, Growth Model Portfolio (Model Portfolio) is to provide investors although it is authorised to invest up to a maximum of 25 with a total return in excess of the S&P/ASX 200 Accumulation securities with a target minimum security exposure of 2% and a Index over a rolling three- year period. maximum exposure of 15%. The Model Portfolio will not use unlisted securities, derivatives or short selling strategies. Investment Manager Benchmark Index AMP Capital Investors Limited ABN 59 001 777 591 (AMP Capital) is a specialist investment manager with a large team of in-house The Model Portfolio uses the S&P/ASX 200 Accumulation Index investment professionals. The capability of AMP Capital in as a reference index for performance purposes. Australian shares includes both quantitative and fundamental Fees and costs approaches that focus on extracting the maximum value from the specific investment style. The fees and costs specific to the Model Portfolio are outlined below: Designed for investors who: – Investment management fee of 0.46% pa of the balance – Seek medium to long-term returns with a focus on capital invested using the Model Portfolio. growth – Investment management performance fee of 16.5% of the – Accept the risk of price fluctuations Model Portfolio’s out performance of the S&P/ASX 200 – Have a minimum time frame for investment of five to seven Accumulation Index (subject to a high watermark). We have years. estimated the investment management performance fee to be 0.05% pa of the balance invested using the Model Portfolio Investment Style based on the last financial year. – Estimated indirect costs of 0.00% pa of the balance invested The Model Portfolio demonstrates a growth style bias. using the Model Portfolio based on the last financial year. The Investment Strategy Model Portfolio does not currently hold any ETFs, LICs or LITs The investment strategy of the Model Portfolio is to achieve however should this change then indirect costs may apply in long-term growth in excess of the benchmark through a portfolio the future. diversified across about 20 shares. Asset Allocation The Model Portfolio primarily invests in a diversified portfolio of high-quality ASX-listed companies based on their potential to Asset sector Ranges Benchmark (%) provide investors with superior capital growth over time. It targets sector weightings that reflect the medium and long-term economic Minimum (%) Maximum (%) climate and tilts toward areas where the opportunity for capital Australian 90 100 100 growth is greatest. shares

Cash 0 10 0

7 AMP Index – Top ₂₀ Model Portfolio

Investment objective Average number of securities The investment objective of the Model Portfolio is to generate the The Model Portfolio typically will invest in 20 securities, although return of the top 20 stocks (by market capitalisation) listed on the it is authorised to invest in between 15 and 25 securities. Unlisted Australian Stock Exchange, before taking into account fees and securities, derivatives and short selling will not be used. expenses. Benchmark index Investment manager The Model Portfolio uses the S&P/AX Top 20 Accumulation Index AMP Capital Investors Limited ABN 59 001 777 591 (AMP Capital) as a reference index for performance purposes. is a specialist investment manager with a large team of in-house investment professionals. The capability of AMP Capital in Fees and costs Australian shares includes both quantitative and fundamental approaches that focus on extracting the maximum value from the The fees and costs specific to this Model Portfolio are outlined specific investment style. below: – Investment management fee of 0.1025% pa of the balance Designed for investors who: invested using the Model Portfolio. – No performance fee applies. – seek exposure to the top 20 companies by market capitalisation, with weightings relatively closely in line with – GST will apply to all fees charged to the Service. market capitalisation – Estimated indirect costs of 0.00% pa of the balance invested – accept the risk of price fluctuations using the Model Portfolio based on the last financial year. The Model Portfolio does not currently hold any ETFs, LICs or LITs – have a minimum time frame of five to seven years. however should this change then indirect costs may apply in Investment style the future. Generally, the Service cannot claim full input tax credits in respect The model portfolio tracks the S&P/ASX Top 20 index. of these fees, but it will usually be entitled to Reduced Input Tax Credits (RITC – currently 75% of the GST payable on the supply) in Investment strategy respect of some of these fees. Any fees payable to AMP Capital as The investment strategy of the Model Portfolio is to invest in a set out here are the net cost of these fees inclusive of GST less any representative sample of shares representing the top 20 stocks RITC that is available. (by market capitalisation) listed on the Australian Stock Exchange. The Model Portfolio at any time may invest in shares that have Asset allocation been or are expected to be in this category to achieve its objective. Asset sector Ranges Benchmark (%) The Model Portfolio will not invest in any securities outside the top 50 stocks (by market capitalisation) listed on the Australian Minimum (%) Maximum (%) Stock Exchange as part of its long term strategy. Once securities Australian 90 100 100 held within the Model Portfolio fall outside the top 50 stocks (by shares market capitalisation), they will be sold down within 40 days of Cash 0 10 this event. 0

8 Bennelong ex-₂₀ Australian Equities

Investment objective Average number of securities The investment objective of the Bennelong ex-20 Australian The Model Portfolio will typically hold between 20 and 35 Equities Model Portfolio (the “Model Portfolio”) is to provide securities. investors with exposure orientated to Australian equities but outside of the S&P/ASX 20 Index. Benchmark index

Investment manager The Model Portfolio uses as a benchmark the S&P/ASX 300 Index ex the S&P/ ASX 20 Index. Bennelong Australian Equity Partners (BAEP) is a boutique investment manager established in July 2008 in partnership with Fees and costs Bennelong Funds Management (BFM). It is led by Mark East. BAEP is a genuinely active fund manager with a consistent and The fees and costs specific to the Model Portfolio are outlined disciplined investment approach. below: – Investment management fee of 0.6523% pa of the balance Designed for investors who: invested using the Model Portfolio, and – Investment management performance fee of 15% of the Model – are primarily seeking capital growth from a portfolio of Portfolio’s out-performance of the S&P/ASX 300 Accumulation Australian stocks; Index ex the S&P ASX 20 Accumulation Index (subject to a – are seeking some income via dividends and franking credits; high watermark). We have estimated the investment and management performance fee to be 0.26% pa of the balance – have a high tolerance for risk. invested using the Model Portfolio based on the last financial year. Investment style – Estimated indirect costs of 0.00% pa of the balance invested – The Model Portfolio is constructed in accordance with an using the Model Portfolio based on the last financial year. The investment philosophy that focusses on quality and growth. Model Portfolio does not currently hold any ETFs, LICs or LITs The style is to typically seek out lower risk propositions with however should this change then indirect costs may apply in more predictable and underappreciated longer term value the future. creation. Asset allocation Investment strategy Asset sector Ranges Benchmark (%) Through the Model Portfolio, BAEP seeks to provide greater exposure to ex-20 stocks. This provides diversification benefits Minimum (%) Maximum (%) compared to an investment in the broader market, which is heavily weighted towards the top 20 stocks.. BAEP’s investment approach Australian 90 100 100 aims to deliver above-benchmark returns over time. shares

BAEP’s investment philosophy is to favour high quality, strongly Cash 0 10 0 growing companies. In particular, it is focussed on those companies it believes that have the earnings strength to deliver against, or potentially exceed, the market’s expectations of its future earnings prospects. BAEP’s investment process entails undertaking an extensive program of company meetings and other industry contact. This is aimed at identifying opportunities through on-the-ground research where a company’s prospects are better than perceived by the market and suggested by the company’s stock price. Fundamentally, BAEP’s research and analysis is predominantly focussed on stock specifics, but it is also supported with quantitative and macroeconomic insights. BAEP’s portfolio is typically constructed with an index-unaware and high conviction approach that considers the risk-return fundamentals of the individual stocks and overall portfolio.

9 DNR Capital Australian Equities High Conviction Model Portfolio

Investment objective Average number of securities The investment objective of the DNR Capital Australian Equities The Model Portfolio holds between 15 and 30 securities. Unlisted High Conviction Model Portfolio (Model Portfolio) is to provide securities, derivatives and short selling will not be used, however investors with a high conviction portfolio of Australian equities. there may be an exposure to such strategies through investments DNR Capital aims to outperform the S&P/ASX 200 Accumulation included in the Model Portfolio. Index by 4% p.a. (before fees) over a rolling three-year period. Benchmark index Investment manager The Model Portfolio uses the S&P/ASX 200 Accumulation Index DNR Capital Pty Ltd (ABN 72 099 071 637, AR 294844) as Authorised as a reference index for performance purposes. Representative of DNR AFSL Pty Ltd (ABN 39 118 946 400, AFSL 301658). Fees and costs Founded in 2001, DNR Capital is an Australian investment The fees and costs specific to the Model Portfolio are outlined management company that delivers client-focussed, quality, below: investment solutions to institutions, advisers and individual – Investment management fee of 0.5638% pa of the balance investors. invested using the Model Portfolio, and It is a pioneer in the delivery of individually and separately – Investment management performance fee of 16.5% of the managed accounts in the Australian market and aims to deliver Model Portfolio’s out-performance of the S&P/ASX 200 investment out-performance to investors. Accumulation Index. We have estimated the investment DNR Capital is a signatory to the Principles for Responsible management performance fee to be 0.00% pa of the balance Investment (PRI). invested using the Model Portfolio based on the last financial year. Designed for investors who: – Estimated indirect costs of 0.00% pa of the balance invested – seek long-term growth using the Model Portfolio based on the last financial year. The – accept the risk of price fluctuations Model Portfolio does not currently hold any ETFs, LICs or LITs – have less focus on generating income however should this change then indirect costs may apply in – have a minimum timeframe for investment of five years. the future.

Investment style Asset allocation

The Model Portfolio is expected to demonstrate a style neutral Asset sector Ranges Benchmark (%) outcome, with a quality bias. Minimum (%) Maximum (%) Investment strategy Australian 80 100 100 shares DNR Capital believes a focus on quality will enhance returns when it is combined with a thorough valuation overlay. DNR Capital Cash 0 20 0 seeks to identify quality companies that are mispriced by overlaying a quality filter, referred to as the ‘Quality Web’, with a strong valuation discipline. The stock selection process has a strong bottom-up discipline and focusses on investing in quality companies at reasonable prices. The portfolio construction process is influenced by a top-down economic appraisal and also considers the risk characteristics of the portfolio such as stock and sector correlations. The investment strategy of the Model Portfolio results in a portfolio that is high conviction and invests for the medium-to-long term.

10 DNR Capital Australian Equities Income Model Portfolio

Investment objective Average number of securities The investment objective of the DNR Capital Australian Equities The Model Portfolio holds between 15 and 30 securities. Unlisted Income Model Portfolio (Model Portfolio) is to provide investors securities, derivatives and short selling will not be used, however with a high conviction portfolio of Australian equities with a there may be an exposure to such strategies through investments preference for taking advantage of imputation credits available included in the Model Portfolio. in the Australian market. DNR Capital aims to outperform the S&P/ASX 200 Industrials Accumulation Index (before fees) and Benchmark index deliver higher levels of income relative to the benchmark over a rolling three-year period. The Model Portfolio uses the S&P/ASX 200 Industrials Accumulation Index as a reference index for performance purposes. Investment manager Fees and costs DNR Capital Pty Ltd (ABN 72 099 071 637, AR 294844) as Authorised Representative of DNR AFSL Pty Ltd (ABN 39 118 946 400, AFSL The fees and costs specific to the Model Portfolio are outlined 301658). below: – Investment management fee of 0.5638% pa of the balance Founded in 2001, DNR Capital is an Australian investment management company that delivers client-focussed, quality, invested using the Model Portfolio, and investment solutions to institutions, advisers and individual – Investment management performance fee of 16.5% of the investors. Model Portfolio’s out-performance of the S&P/ASX 200 It is a pioneer in the delivery of individually and separately Industrials Accumulation Index. We have estimated the managed accounts in the Australian market and aims to deliver investment management performance fee to be 0.00% pa of investment out-performance to investors. the balance invested using the Model Portfolio based on the last financial year. DNR Capital is a signatory to the Principles for Responsible Investment (PRI). – Estimated indirect costs of 0.00% pa of the balance invested using the Model Portfolio based on the last financial year. The Designed for investors who: Model Portfolio does not currently hold any ETFs, LICs or LITs however should this change then indirect costs may apply in – seek a greater level of income than the ASX 200 Industrials the future. Accumulation Index and can make use of franking credits (appeals to lower taxpaying entities such as pension funds, Asset allocation SMSFs and charities) – accept the risk of price fluctuations Asset sector Ranges Benchmark (%) – have a minimum timeframe for investment of five years. Minimum (%) Maximum (%)

Australian 80 100 100 Investment style shares

The Model Portfolio is expected to demonstrate a style neutral Cash 0 20 0 outcome with a quality bias and an income focus.

Investment strategy DNR Capital believes a focus on quality will enhance returns when it is combined with a thorough valuation overlay. DNR Capital seeks to identify quality companies that are mispriced by overlaying a quality filter, referred to as the ‘Quality Web’, with a strong valuation discipline. The stock selection process has a strong bottom-up discipline and focusses on investing in quality companies at reasonable prices. The Model Portfolio also has a preference for companies that have high and sustainable dividend capability, strong profit to cash conversion, and relatively assured earnings growth. Companies that generate franking credits predominate. The portfolio construction process is influenced by a top-down economic appraisal and also considers the risk characteristics of the portfolio such as stock and sector correlations.

11 DNR Capital Australian Equities Socially Responsible Model Portfolio

Investment objective Average number of securities The investment objective of the DNR Capital Australian Equities The Model Portfolio holds between 15 and 30 securities. Unlisted Socially Responsible Model Portfolio (Model Portfolio) is to provide securities, derivatives and short selling will not be used, however investors with a competitive return over the longer term without there may be an exposure to such strategies through investments investing in companies that are judged to have a direct included in the Model Portfolio. involvement in pornography, gaming, armaments and tobacco. It also actively seeks investment opportunities in companies that Benchmark index make a positive difference in the way they respond to environmental, social and governance issues. The Model Portfolio uses the S&P/ASX 200 Accumulation Index as a reference index for performance purposes. DNR Capital aims to outperform the S&P/ASX 200 Accumulation Index by 4%p.a. (before fees) over a rolling three year period. Fees and costs Investment manager The fees and costs specific to the Model Portfolio are outlined below: DNR Capital Pty Ltd (ABN 72 099 071 637, AR 294844) as Authorised – Investment management fee of 0.7175% pa of the balance Representative of DNR AFSL Pty Ltd (ABN 39 118 946 400, AFSL 301658). invested using the Model Portfolio, and – Investment management performance fee of 16.5% of the Founded in 2001, DNR Capital is an Australian investment Model Portfolio’s out-performance of the S&P/ASX 200 management company that delivers client-focussed, quality, investment solutions to institutions, advisers and individual Accumulation Index. We have estimated the investment investors. management performance fee to be 0.01% pa of the balance invested using the Model Portfolio based on the last financial It is a pioneer in the delivery of individually and separately year. managed accounts in the Australian market and aims to deliver investment out-performance to investors. – Estimated indirect costs of 0.00% pa of the balance invested using the Model Portfolio based on the last financial year. The DNR Capital is a signatory to the Principles for Responsible Model Portfolio does not currently hold any ETFs, LICs or LITs Investment (PRI). however should this change then indirect costs may apply in Designed for investors who: the future. – seek long-term growth through socially responsible investing Asset allocation – accept the risk of price fluctuations Asset sector Ranges Benchmark (%) – have less focus on generating income – have a minimum timeframe for investment of five years. Minimum (%) Maximum (%) Australian 80 100 100 Investment style shares The Model Portfolio is expected to demonstrate a style neutral Cash 0 20 0 outcome with a quality bias and a socially responsible focus.

Investment strategy DNR Capital believes a focus on quality will enhance returns when it is combined with a thorough valuation overlay. DNR Capital seeks to identify quality companies that are mispriced by overlaying a quality filter, referred to as the ‘Quality Web’, with a strong valuation discipline. The stock selection process has a strong bottom-up discipline and focusses on investing in quality companies at reasonable prices. The Model Portfolio incorporates a negative portfolio screen across pornography, gaming, armaments and tobacco. A positive ESG screen is also used to identify those companies with enhanced ESG policies. The portfolio construction process is influenced by a top-down economic appraisal and also considers the risk characteristics of the portfolio such as stock and sector correlations.

12 DNR Capital Australian Listed Property Trust Model Portfolio

Investment objective Investment strategy The objective of the DNR Capital Australian Listed Property Trust The investment process uses a combination of bottom-up stock Model Portfolio (Model Portfolio) is to outperform the S&P/ASX selection with a top-down overlay. 200 A-REIT Accumulation Index (before fees) over a rolling The bottom-up stock selection process will favour stocks with the three-year period. The Model Portfolio provides investors with following characteristics: exposure to the property sector through an actively managed Listed Property Trust (LPT) portfolio. – Strong underlying assets—DNR Capital believes higher quality assets will outperform through the business cycle both in Investment manager terms of capital appreciation and yield growth. – Low-debt to medium-debt levels—DNR Capital invests in DNR Capital Pty Ltd (ABN 72 099 071 637, AR 294844) as Authorised securities where the debt profile is appropriate given the Representative of DNR AFSL Pty Ltd (ABN 39 118 946 400, AFSL 301658). quantum and nature of cash flow produced from the underlying portfolio. Founded in 2001, DNR Capital is an Australian investment – High-quality management with a strong track record of management company that delivers client-focussed, quality, investment solutions to institutions, advisers and individual delivering asset and share price performance. investors. – Stable portfolio investment strategy—DNR Capital believes a changing asset mix can be a signal of problems or poor It is a pioneer in the delivery of individually and separately management. managed accounts in the Australian market and aims to deliver investment out-performance. The experienced and dedicated DNR Capital follows a range of economic indicators that are investment management team delivers clients an unparalleled reviewed regularly from a top-down portfolio perspective. These level of service, be they large institutions, advisers or individual measures are used to formulate an economic overview which investors. provides a backdrop to investment decision making and influences DNR Capital is a signatory to the Principles for Responsible portfolio construction. Investment (PRI). Average number of securities

Investment style The Model Portfolio holds between four and eight securities. Unlisted securities, derivatives and short selling will not be used, The Model Portfolio is expected to demonstrate an active-style however there may be an exposure to such strategies through bias. investments included in the Model Portfolio.

Designed for investors who: Benchmark index – desire exposure to the property sector through an actively The Model Portfolio uses the S&P/ASX 200 A-REIT Accumulation managed Listed Property Trust (LPT) portfolio Index as a reference index for performance purposes. – accept the risk of price fluctuations – have a minimum timeframe for investment of over five years. Fees and costs The fees and costs specific to the Model Portfolio are outlined below: – Investment management fee of 0.9020% pa of the balance invested using the Model Portfolio. – No performance fee applies. – Estimated indirect costs of 0.00% pa of the balance invested using the Model Portfolio based on the last financial year. The Model Portfolio does not currently hold any ETFs, LICs or LITs however should this change then indirect costs may apply in the future.

Asset allocation

Asset sector Ranges Benchmark (%)

Minimum (%) Maximum (%)

Australian Listed 80 100 100 Property Trusts

Cash 0 20 0

13 Hyperion High Conviction Large Cap ASX ₃₀₀ Model Portfolio

Investment objective Average number of securities The investment objective of the Hyperion High Conviction ASX The Model Portfolio holds between 15 and 30 securities. Unlisted 300 Model Portfolio (Model Portfolio) is to achieve gross returns securities, derivatives and short selling will not be used, however to investors of 3% above the S&P ASX 300 Accumulation Index there may be an exposure to such strategies through investments over rolling five-year periods. included in the Model Portfolio.

Investment manager Benchmark index Hyperion Asset Management ABN 80 080 135 897, AFSL 238380 The Model Portfolio uses the S&P ASX 300 Accumulation Index as Hyperion is an Australian equities fund manager. Hyperion’s a reference index for performance purposes. investment process is focussed on finding the highest-quality growing ASX listed businesses that can produce investment Fees and costs out-performance for clients over rolling five-year periods. The fees and costs specific to the Model Portfolio are outlined below: Designed for investors who: – Investment management fee of 0.5778% pa of the balance – accept the risk of price fluctuations invested using the Model Portfolio, and – have a minimum timeframe for investment of five years – Investment management performance fee of 15% of the Model – want a concentrated portfolio of high quality companies. Portfolio’s out-performance of the S&P ASX 300 Accumulation Index plus 2% (subject to a high watermark). We have Investment style estimated the investment management performance fee to be 0.04% pa of the balance invested using the Model Portfolio The Model Portfolio is expected to demonstrate a quality based on the last financial year. growth-style bias. – Estimated indirect costs of 0.00% pa of the balance invested Investment strategy using the Model Portfolio based on the last financial year. The Model Portfolio does not currently hold any ETFs, LICs or LITs Hyperion believe that buying high quality and predictable however should this change then indirect costs may apply in businesses at prices that offer attractive medium-term returns the future. maximises the probability that our equity portfolios will produce above-benchmark returns over rolling five-year periods. Asset allocation Hyperion focus on proven high quality businesses with superior long-term growth opportunities arising from their sustainable Asset sector Ranges Benchmark (%) competitive advantage (including a sound business model and Minimum (%) Maximum (%) proven quality management). Sustainable excess growth in earnings leads to greater returns to shareholders. Australian 80 100 100 shares

Cash 0 20 0

14 Janus Henderson High Conviction Australian Equity Model Portfolio

Investment objective Average number of securities The investment objective of the Janus Henderson High Conviction The Model Portfolio holds between 15 and 30 securities. Unlisted Australian Equity Model Portfolio (Model Portfolio) is to achieve a securities, derivatives and short selling will not be used, however total return before fees that exceeds the S&P/ASX 200 there may be an exposure to such strategies through investments Accumulation Index by 4% p.a., over rolling five-year periods. included in the Model Portfolio.

Investment manager Benchmark index Janus Henderson Investors (Australia) Institutional Funds The Model Portfolio uses the S&P/ASX 200 Accumulation Index Management Limited (ABN 16 165 119 531) is a subsidiary of the as a reference index for performance purposes. global asset management group Janus Henderson Group plc (Janus Henderson Investors). Formed in 2017 from the merger between Fees and costs Janus Capital Group and Henderson Group plc, Janus Henderson Investors is committed to adding value through active The fees and costs specific to the Model Portfolio are outlined management. Headquartered in London, Janus Henderson below: Investors is an independent asset manager that is dual-listed on – Investment management fee of 0.9319% pa of the balance the New York Stock Exchange and the Australian Securities invested using the Model Portfolio. Exchange. As at 30 June 2018, Janus Henderson Investors has – No performance fee applies. $500.9 billion in assets under management, more than 2,000 – Estimated indirect costs of 0.00% pa of the balance invested employees and offices in 28 cities worldwide. using the Model Portfolio based on the last financial year. The Model Portfolio does not currently hold any ETFs, LICs or LITs Designed for investors who: however should this change then indirect costs may apply in – seek exposure to an actively managed strategy and are the future. comfortable to invest for at least five years. – are seeking capital growth and tax effective income and are Asset allocation comfortable with a high risk investment. Asset sector Ranges Benchmark (%) Investment style Minimum (%) Maximum (%) The Model Portfolio is a Profitable Growth Strategy. The investment Australian 80 100 100 style seeks profitable growth companies that are attractively priced. shares Cash 0 20 0 Investment strategy The manager seeks to invest in companies identified as being undervalued, with the expectation that these companies will grow faster than the market. The manager believes that companies which offer the prospect of profitable growth at attractive prices generate the most value for investors over time. Through a combination of internally generated bottom-up research and qualitative modelling, the manager applies both a profitable growth test and a lifecycle valuation model to screen the investment universe. The manager performs detailed fundamental research on these companies and the markets in which they operate, to arrive at what it considers to be a fair valuation for the company given their growth prospects.

15 Nikko AM Australian Share Value Model Portfolio

Investment objective Whilst stock picking via company research is a critical element of the process, portfolio construction is also important. This combines The investment objective of the Nikko AM Australian Share Value the use of risk management tools and the judgement of an Model Portfolio (Model Portfolio) is to selectively invest in experienced team with the objective of selecting intrinsic value companies listed on the ASX, with the aim of outperforming the investments that offer the best compromise between risk and S&P/ASX 200 Accumulation Index by more than 2.5% pa over expected return, given the return objectives and stated risk profile rolling five-year period. of the Model Portfolio. Investment manager Nikko AM believes the combination of an ‘intrinsic value’ philosophy and a dedication to objectively-based research, while Nikko AM Limited ABN 99 003 376 252 AFSL 237563. incorporating sound risk management, provides a strong basis for Part of the Nikko Asset Management Group, Nikko AM Limited good long-term returns. offers investors the benefits of extensive global resources combined with the local expertise and long-standing experience Average number of securities of our Sydney based investment teams, with a history dating back The Model Portfolio generally holds between 20 and 35 securities to 1989. Today the company manages approximately AUD 8.8 of the largest 200 companies listed on the ASX, with a strong billion in assets (as at 31 March 2018) for retail and institutional preference for readily marketable shares. Unlisted securities, clients across Australia. Nikko Asset Management Group is one of derivatives and short selling will not be used, however there may Asia’s largest asset managers with AUD 287.5 billion under be an exposure to such strategies through investments included management (as at 31 March 2018). in the Model Portfolio.

Designed for investors who: Benchmark index – are looking for long-term returns (capital growth and income) The Model Portfolio uses the S&P/ASX 200 Accumulation Index from a portfolio of shares which is actively managed by an as a reference index for performance purposes. investment team that seeks to identify shares that represent good value Fees and costs – accept the risk of price fluctuations The fees and costs specific to the Model Portfolio are outlined – have a minimum timeframe for investment of five years or below: more. – Investment management fee of 0.6150% pa of the balance Investment style invested using the Model Portfolio. – No performance fee applies. The Model Portfolio is expected to demonstrate an intrinsic – Estimated indirect costs of 0.00% pa of the balance invested value-style bias. using the Model Portfolio based on the last financial year. The Model Portfolio does not currently hold any ETFs, LICs or LITs Investment strategy however should this change then indirect costs may apply in Nikko AM believes the best results in the future come from the future. identifying value in the market today. This belief is based on: – Stocks: all stocks have an intrinsic value that with diligent Asset allocation research can be assessed and compared Asset sector Ranges Benchmark (%) – Value: whatever the direction of the share market there are always stocks that represent better value than others, and Minimum (%) Maximum (%) better value than the market as a whole Australian 90 100 100 – Opportunities: inefficiencies in the share market, mainly due shares to human behaviour, create buying opportunities where the Cash 0 10 0 prices of some stocks fail to reflect their true value – Research: to identify those opportunities requires fundamental analysis, involving hard work, skill, experience and judgement. Labour standards, environmental, social and ethical Nikko AM’s Australian share process is based on an intrinsic value considerations philosophy and the belief that inefficiencies in the share market mean that the prices of some stocks at times do not reflect their Nikko AM does not apply any blanket filters however they may true or `intrinsic’ value. Nikko AM applies an internal research take labour standards, environmental, social and ethical process called Comparative Value Analysis to assess and compare considerations into account when selecting, retaining or realising the value of stocks and to identify companies whose shares may investments. represent good value.

16 Perennial Value Australian Share Model Portfolio

Investment objective Average number of securities The investment objective of the Perennial Value Australian Share The Model Portfolio holds between 20 and 70 securities, with an Model Portfolio (Model Portfolio) is to grow the value of the average of 40. Unlisted securities, derivatives and short selling will investment over the long term via a combination of capital growth not be used, however there may be an exposure to such strategies and income by investing in a diversified portfolio of Australian through investments included in the Model Portfolio. Shares, and to provide a total return (after fees) that exceeds the S&P/ASX 300 Accumulation Index measured over rolling three-year Benchmark index periods. The Model Portfolio uses the S&P/ASX 300 Accumulation Index Investment manager as a reference index for performance purposes. Perennial Value Management Limited ABN 22 090 879 904, AFSL Fees and costs 247293 (Perennial Value) The fees and costs specific to the Model Portfolio are outlined Perennial Value was founded in 2000 as a joint venture between below: IOOF and John Murray. Mr Murray has over 30 years investment – Investment management fee of 0.65% pa of the balance management experience and is supported by 15 team members consisting of experienced analysts and 2 dealers. invested using the Model Portfolio. – The performance fee is 15% of performance above the Perennial Value is a specialist active funds management firm S&P/ASX 300 accumulation index (subject to a high whose sole business objective is to manufacture superior investment outcomes for clients. Perennial Value manages seven watermark). We have estimated the investment management trust products across three capabilities; Australian Shares, Smaller performance fee to be 0.00% pa of the balance invested using Companies and Wealth Defender (equity risk and volatility the Model Portfolio based on the last financial year. management). – Estimated indirect costs of 0.01% pa of the balance invested In structuring the business, Perennial Value has sought to meet using the Model Portfolio based on the last financial year. The investor expectations for financial security while capturing the Model Portfolio does not currently hold any ETFs, LICs or LITs energy and passion of a boutique investment management firm. however should this change then indirect costs may apply Perennial Value believes they have created an environment where again in the future. the interests of investors and investment professionals are clearly aligned. Asset allocation

Designed for investors who: Asset sector Ranges Benchmark (%) – seek exposure to a portfolio of Australian ‘value oriented’ Minimum (%) Maximum (%) companies Australian 90 100 100 – accept the risk of price fluctuations shares – have a minimum timeframe for investment of over five years. Cash 0 10 0

Investment style The Model Portfolio is expected to demonstrate a value-style bias.

Investment strategy Perennial Value’s investment process is based on a ‘value’ investment philosophy. Perennial Value holds a belief that markets are not fully efficient, as asset prices are sometimes driven by irrational influences. As a value investor, Perennial Value aims to buy ‘good businesses that are undervalued’ with an underlying belief that good businesses are always eventually recognised by markets and re-rated to overall market multiples. Perennial Value invests in a range of companies listed (or soon to be listed) on the ASX that offer sustainable operations and whose share price offers good value. The cornerstone to this approach is a strong emphasis on company research. The aim is to develop a detailed understanding of each company before committing investors’ funds. The process aims to ensure that investment decisions are focussed on buying stocks that offer good value and selling stocks that offer poor value.

17 Ralton Australian Shares Model Portfolio

Investment objective Investment strategy The investment objective of the Ralton Australian Shares Model The investment strategy of the Model Portfolio is to invest in Portfolio (Model Portfolio) is to provide investors with long-term securities that are assessed as likely to provide attractive returns capital growth from a concentrated portfolio of Australian shares, to investors and at the time of purchase, are listed, or about to be and some tax effective income. The Model Portfolio aims to listed on the ASX. Ralton believes that the intrinsic (or true) value maximise total investment returns from its universe of stocks over of many underlying businesses is not always reflected in the market periods of five years or longer, while at the same time seeking to price of the relevant company’s securities. Ralton’s aim is to buy minimise the risk of investment capital loss. a portfolio of stocks at prices significantly below their intrinsic value, thereby maximising the potential over time to achieve strong Investment manager and consistently positive investment returns.

Ralton Asset Management Pty Ltd ACN 161 468 882 Average number of securities Ralton Asset Management (Ralton) is part of Copia Investment Partners Ltd, an independent multi-boutique investment The Model Portfolio holds between 20 and 35 securities. Unlisted management group. As a pioneer in Australia’s managed accounts securities, derivatives and short selling will not be used, however industry, Ralton has been offering its investment capabilities there may be an exposure to such strategies through investments exclusively through separately managed accounts, or ‘SMAs’, since included in the Model Portfolio. July 2001 and currently manages portfolios on behalf of a wide range of investors, including charitable trusts, corporations, Benchmark index superannuation funds, family trusts and individuals. The Model Portfolio uses the S&P/ASX 300 Accumulation Index Ralton specialises in the management of high quality Australian as a reference index for performance purposes. share portfolios, and its value based investment style incorporates a bottom-up proprietary business valuation approach Fees and costs supplemented by top-down economic and thematic overlays. The fees and costs specific to the Model Portfolio are outlined Ralton’s investment team is highly experienced and well resourced, below: consisting of professionals from a variety of backgrounds that all share a talent and passion for investing. This blend of experience – Investment management fee of 0.5125% pa of the balance and ability promotes insightful analysis and debate, and brings a invested using the Model Portfolio. high degree of rigour to Ralton’s fundamental, research-driven – Investment management performance fee of 11% of the Model investment process. Portfolio’s out performance of the S&P/ASX 300 Accumulation Index (subject to a high watermark). We have estimated the Designed for investors who: investment management performance fee to be 0.01% pa of – seek exposure to Australian shares through a concentrated the balance invested using the Model Portfolio based on the portfolio chosen from all ASX stocks last financial year. – seek long-term capital growth, with some tax-effective income. – Estimated indirect costs of 0.00% pa of the balance invested – seek consistent total returns from active investment using the Model Portfolio based on the last financial year. The management, independent of the overall level and direction Model Portfolio does not currently hold any ETFs, LICs or LITs of the market. however should this change then indirect costs may apply in the future. – accept the risk of significant price fluctuations. – have a minimum timeframe for investment of five years. Asset allocation

Investment style Asset sector Ranges Benchmark (%)

The investment strategy of the Model Portfolio is to invest in a Minimum (%) Maximum (%) selection of stocks within its investment universe which offer Australian 90 98 98 attractive value relative to the market. By doing this Ralton can shares maximise the opportunity over time to deliver the return targets for the portfolio. In constructing the portfolio Ralton takes account Cash 2 10 2 of their views around economic and thematic issues which will impact market sectors and individual stocks. This sensitivity to the operating environment for their companies adds an additional risk overlay. In doing all of this, Ralton focusses on companies with quality business models as they believe these are best positioned to preserve capital through the cycle.

18 Ralton High Yield Australian Shares Model Portfolio

Investment objective Investment strategy The investment objective of the Ralton High Yield Australian Shares The investment strategy of the Model Portfolio is to invest in a Model Portfolio (Model Portfolio) is to provide investors with a selection of stocks within its investment universe which offer consistent, tax-efficient and growing cash dividend yield plus long attractive value (including yield) relative to the market. By doing term capital growth from the broad market. The Model Portfolio this Ralton can maximise the opportunity over time to deliver the aims to maximise total investment returns from its universe of return targets for the portfolio. In constructing the portfolio Ralton stocks over periods of five years or longer, while at the same time takes account of their views around economic and thematic issues seeking to minimise the risk of investment capital loss. which will impact market sectors and individual stocks. This sensitivity to the operating environment for their companies adds Investment manager an additional risk overlay. In doing all of this, Ralton focusses on companies with quality business models as they believe these are Ralton Asset Management Pty Ltd ACN 161 468 882 best positioned to preserve capital through the cycle. Ralton Asset Management (Ralton) is part of Copia Investment Partners Ltd, an independent multi-boutique investment Average number of securities management group. As a pioneer in Australia’s managed accounts industry, Ralton has been offering its investment capabilities The Model Portfolio holds between 20 and 35 securities. Unlisted exclusively through separately managed accounts, or ‘SMAs’, since securities, derivatives and short selling will not be used, however July 2001 and currently manages portfolios on behalf of a wide there may be an exposure to such strategies through investments range of investors, including charitable trusts, corporations, included in the Model Portfolio. superannuation funds, family trusts and individuals. Benchmark index Ralton specialises in the management of high quality Australian share portfolios, and its value based investment style incorporates The Model Portfolio uses the S&P/ASX 300 Accumulation Index a bottom-up proprietary business valuation approach as a reference index for performance purposes. supplemented by top-down economic and thematic overlays. Ralton’s investment team is highly experienced and well resourced, Fees and costs consisting of professionals from a variety of backgrounds that all The fees and costs specific to the Model Portfolio are outlined share a talent and passion for investing. This blend of experience below: and ability promotes insightful analysis and debate, and brings a high degree of rigour to Ralton’s fundamental, research-driven – Investment management fee of 0.5125% pa of the balance investment process. invested using the Model Portfolio. – A performance fee of 11% is payable for outperformance of Designed for investors who: the S&P/ASX 300 Accumulation Index (subject to a high watermark). We have estimated the investment management – seek exposure to Australian shares through a concentrated performance fee to be 0.02% pa of the balance invested using portfolio chosen from all S&P/ASX 300 companies the Model Portfolio based on the last financial year. – seek a consistent, above average and tax-efficient dividend – Estimated indirect costs of 0.00% pa of the balance invested yield and long-term capital growth using the Model Portfolio based on the last financial year. The – seek consistent total returns from active investment Model Portfolio does not currently hold any ETFs, LICs or LITs management, independent of the overall level and direction however should this change then indirect costs may apply in of the market the future. – accept the risk of significant price fluctuations – have a minimum timeframe for investment of five years. Asset allocation

Investment style Asset sector Ranges Benchmark (%) The Model Portfolio is expected to demonstrate a value-style bias Minimum (%) Maximum (%) with an income focus. Australian 90 98 98 shares

Cash 2 10 2

19 Ralton Professional Partners Australian Shares Model Portfolio

Investment objective Investment strategy The investment objective of the Ralton Professional Partners The investment strategy of the Model Portfolio is to invest in a Australian Shares Model Portfolio (Model Portfolio) is to provide selection of stocks within its investment universe which offer investors with long-term capital growth from a concentrated attractive value relative to the market. The investment universe portfolio of Australian shares, and some tax effective income. The in this model is restricted by the requirement to satisfy specific Model Portfolio aims to maximise total investment returns from independence rules and regulations. By doing this Ralton can its universe of stocks over periods of 5 years or longer, while at the maximise the opportunity over time to deliver the return targets same time seeking to minimise the risk of investment capital loss. for the portfolio, given the specific investment restrictions. In constructing the portfolio Ralton takes account of their views Investment manager around economic and thematic issues which will impact market sectors and individual stocks. This sensitivity to the operating Ralton Asset Management Pty Ltd ACN 161 468 882 environment for their companies adds an additional risk overlay. Ralton Asset Management (Ralton) is part of Copia Investment In doing all of this, Ralton focusses on companies with quality Partners Ltd, an independent multi-boutique investment business models as they believe these are best positioned to management group. As a pioneer in Australia’s managed accounts preserve capital through the cycle. industry, Ralton has been offering its investment capabilities exclusively through separately managed accounts, or ‘SMAs’, since Average number of securities July 2001 and currently manages portfolios on behalf of a wide range of investors, including charitable trusts, corporations, The Model Portfolio holds between 30 and 40 securities. Unlisted superannuation funds, family trusts and individuals. securities, derivatives and short selling will not be used, however there may be an exposure to such strategies through investments Ralton specialises in the management of high quality Australian included in the Model Portfolio. share portfolios, and its value based investment style incorporates a bottom-up proprietary business valuation approach Benchmark index supplemented by top-down economic and thematic overlays. Ralton’s investment team is highly experienced and well resourced, The Model Portfolio uses the S&P/ASX 300 Accumulation Index consisting of professionals from a variety of backgrounds that all as a reference index for performance purposes. share a talent and passion for investing. This blend of experience and ability promotes insightful analysis and debate, and brings a Fees and costs high degree of rigour to Ralton’s fundamental, research-driven The fees and costs specific to the Model Portfolio are outlined investment process. below: Investment universe – Investment management fee of 0.7455% pa of the balance invested using the Model Portfolio. The Model Portfolio invests in a restricted universe of companies – No performance fee applies. in the S&P/ASX 300 Accumulation Index. – Estimated indirect costs of 0.00% pa of the balance invested Designed for specific investors who: using the Model Portfolio based on the last financial year. The Model Portfolio does not currently hold any ETFs, LICs or LITs – are prohibited from investing in certain securities as advised however should this change then indirect costs may apply in to the Investment Manager, for example, investors who have the future. professional auditing responsibilities that require them to maintain strict independence from the companies they audit Asset allocation – seek exposure to Australian shares through a concentrated portfolio chosen from the investment universe of ASX listed Asset sector Ranges Benchmark (%) companies Minimum (%) Maximum (%)

– seek long-term capital growth, with some tax- effective income Australian 90 98 98 – seek consistent total returns from active investment shares management, independent of the overall level and direction Cash 2 10 2 of the market – accept the risk of significant price fluctuations – have a minimum timeframe for investment of five years.

Investment style The Model Portfolio is expected to demonstrate a value-style bias.

20 Ralton Smaller Companies Model Portfolio

Investment objective Investment strategy The investment objective of the Ralton Smaller Companies Model The investment strategy of the Model Portfolio is to invest in a Portfolio (Model Portfolio) is to provide investors with long-term selection of stocks within its investment universe which offer capital growth from a concentrated portfolio of smaller attractive value relative to the market. The investment universe capitalisation Australian shares, and some tax effective income. in this model is the Small Ordinaries Index (with a limit of 20% in The Model Portfolio aims to maximise total investment returns the ex-50 stock universe). By using this approach Ralton can from its universe of stocks over periods of five years or longer, maximise the opportunity over time to deliver the return targets while at the same time seeking to minimise the risk of investment for the portfolio. In constructing the portfolio Ralton takes account capital loss. of their views around economic and thematic issues which will impact market sectors and individual stocks. This sensitivity to the Investment manager operating environment for their companies adds an additional risk overlay. In doing all of this Ralton focusses on companies with Ralton Asset Management Pty Ltd ACN 161 468 882 quality business models as they believe these are best positioned Ralton Asset Management (Ralton) is part of Copia Investment to preserve capital through the cycle. Partners Ltd, an independent multi-boutique investment management group. As a pioneer in Australia’s managed accounts Average number of securities industry, Ralton has been offering its investment capabilities exclusively through separately managed accounts, or ‘SMAs’, since The Model Portfolio holds between 25 and 40 securities. Unlisted July 2001 and currently manages portfolios on behalf of a wide securities, derivatives and short selling will not be used, however range of investors, including charitable trusts, corporations, there may be an exposure to such strategies through investments superannuation funds, family trusts and individuals. included in the Model Portfolio. Ralton specialises in the management of high quality Australian Benchmark index share portfolios, and its value based investment style incorporates a bottom-up proprietary business valuation approach The Model Portfolio uses the S&P/ASX Small Ordinaries supplemented by top-down economic and thematic overlays. Accumulation Index as a reference index for performance purposes. Ralton’s investment team is highly experienced and well resourced, consisting of professionals from a variety of backgrounds that all Fees and costs share a talent and passion for investing. This blend of experience The fees and costs specific to the Model Portfolio are outlined and ability promotes insightful analysis and debate, and brings a below: high degree of rigour to Ralton’s fundamental, research-driven investment process. – The fee specific to the Model Portfolio is an investment management fee of 0.6057% pa of the balance invested using Designed for investors who: the Model Portfolio. – A performance fee of 16.5% is payable for outperformance of – seek exposure to Australian shares through a concentrated the S&P/ASX Small Ordinaries Accumulation Index (subject portfolio chosen from smaller ASX capitalisation stocks to a high watermark). We have estimated the investment – seek long-term capital growth, with some tax-effective income management performance fee to be 0.03% pa of the balance – seek consistent total returns from active investment invested using the Model Portfolio based on the last financial management, independent of the overall level and direction year. of the market – Estimated indirect costs of 0.00% pa of the balance invested – accept the risk of significant price fluctuations using the Model Portfolio based on the last financial year. The – have a minimum timeframe for investment of five years. Model Portfolio does not currently hold any ETFs, LICs or LITs however should this change then indirect costs may apply in Investment style the future. The Model Portfolio is expected to demonstrate a value-style bias with a small cap focus. Asset allocation

Asset sector Ranges Benchmark (%)

Minimum (%) Maximum (%)

Australian 85 98 98 shares

Cash 2 15 2

21 UBS Australian Small Companies Model Portfolio

Investment objective Average number of securities The objective of the Model Portfolio is to outperform the S&P/ASX The Model Portfolio holds a maximum of 30 securities and does Small Ordinaries Accumulation Index when measured over rolling not use unlisted securities, derivatives or short selling. five-year periods. Benchmark index Investment manager The Model Portfolio uses the S&P/ASX Small Ordinaries UBS Asset Management (Australia) Limited ABN 31 003 146 290, Accumulation Index as a reference index for performance purposes. AFSL 222605 UBS Asset Management Australia offers a range of investment Fees and costs styles and strategies, including a range of equities, fixed income The fees and costs specific to the Model Portfolio are outlined and multi-asset capabilities to institutional investors, below: intermediaries and retail investors. Drawing on its 30-year heritage, – The fees specific to the Model Portfolio is an investment UBS Asset Management strives to deliver outcome-oriented investment solutions for our clients, underpinned by a team-based management fee of 0.7455% pa of the balance invested using approach and disciplined risk management. the Model Portfolio. – No performance fee applies. Designed for investors who: – Estimated indirect costs of 0.00% pa of the balance invested using the Model Portfolio based on the last financial year. The – seek a well-diversified portfolio of small capitalisation securities. Model Portfolio does not currently hold any ETFs, LICs or LITs – accept the inherent volatility of share markets, and in however should this change then indirect costs may apply in particular smaller company shares where the investment the future. returns can fluctuate and may be negative. – have a minimum timeframe for investment of five years. Asset allocation Asset sector Ranges Benchmark (%) Investment style Minimum (%) Maximum (%) The Model Portfolio is expected to demonstrate a style neutral bias, with a small company focus. Australian 95 100 100 shares Investment strategy Cash 0 5 0 The UBS Australian Small Companies Model Portfolio (Model Portfolio) aims to achieve capital growth and income from a portfolio of small company shares that we believe are being undervalued by the market, based on our assessment of the company's future cash flows.

22 UBS Concentrated Australian Equity Model Portfolio

Investment objective Average number of securities The investment objective of the UBS Concentrated Australian The Model Portfolio holds a maximum of 25 securities and does Equity Model Portfolio (Model Portfolio) is to outperform the not use unlisted securities, derivatives or short selling. S&P/ASX 200 Accumulation Index over a rolling five-year period. Benchmark index Investment manager The Model Portfolio uses the S&P/ASX 200 Accumulation Index UBS Asset Management (Australia) Limited ABN 31 003 146 290, as a reference index for performance purposes. AFSL 222605 UBS Asset Management Australia offers a range of investment Fees and costs styles and strategies, including a range of equities, fixed income The fees and costs specific to the Model Portfolio are outlined and multi-asset capabilities to institutional investors, below: intermediaries and retail investors. Drawing on its 30-year heritage, – The fee specific to the Model Portfolio is an investment UBS Asset Management strives to deliver outcome-oriented investment solutions for our clients, underpinned by a team-based management fee of 0.5591%pa of the balance invested using approach and disciplined risk management. the Model Portfolio. – No performance fee applies. Designed for investors who: – Estimated indirect costs of 0.00% pa of the balance invested using the Model Portfolio based on the last financial year. The – seek a concentrated portfolio of securities that are listed on the Australian Securities Exchange. Model Portfolio does not currently hold any ETFs, LICs or LITs – accept the inherent volatility of share markets, and in however should this change then indirect costs may apply in particular smaller company shares where the investment the future. returns can fluctuate and may be negative. – have a minimum time frame for investment of five years. Asset allocation Asset sector Ranges Benchmark (%) Investment style Minimum (%) Maximum (%) The Model Portfolio is expected to demonstrate a style neutral bias. Australian 90 100 100 shares Investment strategy Cash 0 10 0 The UBS Concentrated Australian Equity Model portfolio is a high conviction strategy designed to provide investors with capital growth and income from a concentrated portfolio of listed Australian shares we believe are being undervalued by the market, based on our assessment of the company's future cashflows.

23 ₃. Glossary

This PDS provides information that explains the features, options, benefits and risks of the Personalised Portfolio. To help with your understanding, the following table provides an explanation of some important terms.

General terms Meaning

AMP The AMP group. The AMP group is made up of several entities, which includes NMMT, Australian Securities Administration Limited and AMP Capital Investors. constitution The constitution of the Personalised Portfolio that provides the framework for its operation and operates as a contract between investors and the responsible entity. custodian The Hongkong and Shanghai Banking Corporation Limited, Sydney Branch, (ABN 65 117 925 970, AFSL No. 301737)(HSBC) financial adviser A financial adviser holding an Australian financial services licence or acting as an authorised representative of a licensee, and includes an investment adviser. investment managers The investment managers of either model portfolios or managed funds available through the Service. The investment managers are appointed by NMMT. investment menu Part 2 of this PDS, which sets out the list of model portfolios together with the Investment Options document which set out the list of managed funds that are available for selection by all investors. investment options The selection of model portfolios, managed funds and the Personal Investment Portfolio that you can hold through the Service. Model portfolios and managed funds are only generally available for investment while they are listed on the investment menu. The types of holdings through the Service that are not generally available for investment are units in managed funds that an individual investor has transferred in to the Service, and model portfolios managed by an investor’s own financial adviser or other adviser. ‘investor’, ‘you’, ‘your’ A person who invests through the Personalised Portfolio, including any person authorised to act on your behalf. model portfolio Professionally managed portfolios of direct shares and other listed investments where you select the amount to invest, the investment manager and the model portfolio options, and NMMT invests according to the investment manager’s instructions. Personal Investment Portfolio Your own portfolio of shares and other listed securities. Personalised Portfolio AMP Personalised Portfolio ARSN 131 208 841. Portfolio In respect of an investor, the underlying investments (including cash) that the custodian holds on behalf of the responsible entity for the investor. Professionally Managed Your portfolio consisting of model portfolios and managed funds. Portfolio responsible entity NMMT, the responsible entity of the Service. SMSF Self-managed super fund the Service The AMP Personalised Portfolio. ‘we’, ‘us’ or ‘our’ NMMT and any agents NMMT may appoint.

24 mail email w f phone C a eb x ontact P PO P personalisedpor amp 02 1300 ARR ersonalised 8837 Bo .c us A 423 x om.au/ M 4054 A 7800 TT 079 A P personalisedpor NS or tf tf W olio@amp olio 2124 .c tf om.au olio

NS3809 09/18