Permal Absolute Return Trust New Zealand Wholesale Investor Fact Sheet

Class A and Class B Units Issue Date 5 August 2015

Investment Manager Permal Investment Management Services Limited

Client Services Responsible Entity Permal London Institutional Team Phone: +44 20 7389 1300 Equity Trustees Limited Fax: + 44 20 7389 1344 ABN 46 004 031 298 Email: AFSL 240975 [email protected] Tel: +613 8623 5000

About the This New Zealand (“NZ”) Fact Sheet has been prepared and issued by Equity Trustees Limited and is a Permal summary of significant information for persons receiving the Permal Absolute Return Trust (“the Trust”) Absolute Product Disclosure Statement (“PDS”) in New Zealand. This NZ Fact Sheet does not form part of the PDS Return Trust but it is important that you read it before investing in any class of units of the Trust. New Zealand Wholesale The information provided in this NZ Fact Sheet is general information only and does not take account of Investor Fact your personal financial situation or needs. You should obtain financial advice tailored to your personal Sheet circumstances.

Updated Information in this NZ Fact Sheet is subject to change. We will notify you of any changes that have a information materially adverse impact on you or other significant events that affect the information contained in this NZ Fact Sheet. Any updated information which is not materially adverse may be obtained online at www.eqt.com.au/insto , by emailing [email protected] or by calling the Permal London Institutional Team on +44 20 7389 1300. A paper copy of the updated information will be provided free of charge on request.

New Zealand The offer made to New Zealand investors is available only to, and may only be accepted by, a Wholesale Investors: Investor who has completed a Wholesale Investor Certification. Each New Zealand investor Selling acknowledges and agrees that: Restriction (a) he, she or it has not offered, sold, or transferred, and will not offer, sell, or transfer, directly or indirectly, any units in the Trust; and (b) he, she or it has not granted, issued, or transferred, and will not grant, issue, or transfer, any interests in or options over, directly or indirectly, any units in the Trust; and (c) he, she or it has not distributed and will not distribute, directly or indirectly, the PDS or any other offering materials or advertisement in relation to any offer of any units in the Trust, in each case in New Zealand other than to a person who is a Wholesale Investor; and c) he, she or it will notify Equity Trustees Limited if he, she, or it ceases to be a Wholesale Investor. All references to a Wholesale Investor in this NZ Fact Sheet are references to a Wholesale Investor in terms of clause 3(2) of Schedule 1 of the Financial Markets Conduct Act 2013 (New Zealand).

Investing in the Trust Direct Direct investors can acquire units in any class of the Trust by following the instructions outlined in the Investors Application Form accompanying the PDS, including completing the Wholesale Investor Certification at the back of the Application Form. All applications must be made in Australian dollars. Minimum application amounts are subject to the Australian dollar minimum amounts disclosed in the PDS.

Indirect If you wish to invest indirectly in any class of units of the Trust through an IDPS your IDPS Operator will Investors complete the application for you. Your IDPS Operator will advise what minimum investment amounts relate to you.

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Withdrawing your investment Direct Direct investors in the Trust can withdraw their investment from the relevant class by faxing a withdrawal Investors request to BNP Paribas Securities Services – Unit Registry Team, Attention Permal Absolute Return Trust on +612 9006 9080, or alternatively by sending a written request to BNP Paribas Securities Services – Unit Registry Team, Attention Permal Absolute Return Trust, PO Box R209, Royal Exchange NSW 1225.. Minimum withdrawal amounts are subject to the Australian dollar minimum amounts disclosed in the PDS. Withdrawal requests received from New Zealand investors must specify: . the withdrawal amount in Australian dollars; or . the number of units to be withdrawn. We are unable to accept withdrawal amounts quoted in New Zealand dollars. Please note that the withdrawal amount paid to you will be in Australian dollars and may differ from the amount you receive in New Zealand dollars due to: . Foreign Exchange spreads between Australian and New Zealand dollars (currency rate differs daily); and . Overseas Telegraphic Transfer (“OTT”) costs. Withdrawals will only be paid directly to the investor’s bank account held in the name of the investor with an Australian domiciled bank. Withdrawal payments will not be made to third parties.

Indirect If you have invested indirectly in any class of units of the Trust through an IDPS, you need to provide your Investors withdrawal request directly to your IDPS Operator. The time to process a withdrawal request will depend on the particular IDPS Operator.

Managing your investment Distributions New Zealand investors can only have their distribution reinvested. When the distribution is reinvested, New Zealand investors will be allotted units of the relevant class in accordance with the terms and conditions set out in the PDS for the Trust. Please see the PDS for a description of distributions and the terms and conditions of the reinvestment of distributions. The distribution reinvestment plan described in the PDS is offered to New Zealand investors on the following basis: • At the time the price of the units allotted pursuant to the distribution reinvestment plan is set, the Responsible Entity will not have any information that is not publicly available that would, or would be likely to, have a material adverse effect on the realisable price of the units if the information were publicly available. • The right to acquire, or require the Responsible Entity to issue, units will be offered to all investors of the same class, other than those resident outside New Zealand who are excluded so as to avoid breaching overseas laws. • Units will be issued on the terms disclosed to you, and will be subject to the same rights as units issued to all investors of the same class as you. There is available from the Responsible Entity, on request and free of charge, a copy of the most recent annual report of the Trust, the most recent financial statements of the Trust, the auditor’s report on those financial statements, the PDS and the Constitution for the Trust (including any amendments). Other than the Constitution, these documents may be obtained electronically on request by emailing [email protected] or from www.eqt.com.au/insto.

Processing Cut The processing cut off times for applications and redemptions referred to in the PDS are Sydney Australia Off Times times and you should take this into account when faxing instructions.

Cooling Off No cooling off period applies to units in any class of the Trust as you must be a Wholesale Client in Rights Australia or a Wholesale Investor in New Zealand to invest.

Taxation New Zealand If you are a New Zealand resident wishing to invest in Australia, we strongly recommend that you seek Resident independent professional tax advice. New Zealand resident investors will be taxed on their units under Taxation the foreign investment fund rules or ordinary tax rules, depending on their circumstances. Australian tax will be withheld at prescribed rates from distributions to non-residents to the extent that the distributions comprise of relevant Australian sourced income or gains.

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Permal Absolute Return Trust (ARSN 127 064 546 APIR ETL0144AU) Class A and Class B Units

Product Disclosure Statement Date issued 5 August 2015

Responsible Entity Investment Manager Equity Trustees Limited Permal Investment Management Services Limited ABN 46 004 031 298 AFSL No 240975

Custodian and Administrator BNP Paribas Fund Services Australasia Pty Ltd (ACN 002 655 674) trading as BNP Paribas Securities Services

This Product Disclosure Statement (“PDS”) was issued on 5 August 2015. This PDS is for the offer of interests in the Permal Absolute Return Trust ARSN 127 064 546 (referred throughout this PDS as the “Trust“). The PDS has been prepared and issued by Equity Trustees Limited (ABN 46 004 031 298, Australian Financial Services Licence (“AFSL”) No. 240975) in its capacity as the Responsible Entity of the Trust (referred to throughout this PDS as the “Responsible Entity”, “EQT”, “us” or “we”). The investment manager is Permal Investment Management Services Limited (referred to throughout this PDS as “PIMS”, the “Investment Manager” or (in its capacity as investment manager of the Feeder Fund and / or the Master Fund) the “Underlying Investment Manager”). The Trust invests primarily in the Permal Absolute Return Fund (referred to throughout this PDS as the “Feeder Fund”). The Feeder Fund in turn invests in the Permal Absolute Return Master Fund Limited (referred to throughout this PDS as the “Master Fund”). PIMS is the investment manager of the Feeder Fund and the Master Fund. PIMS is organised under the laws of England and Wales and regulated by the UK Financial Control Authority and is a member of the Permal Group, which is comprised of an international group of companies held by Permal Group Ltd., a subsidiary of Legg Mason, Inc. Units in two classes of the Trust are offered - Class A units and Class B units. The rights attached to each class of units are identical, with the exception of the method for calculating and charging the Performance Fee in respect of each class. Accordingly, except where expressly stated in this PDS, all references in this PDS to the “Trust” should be read as a reference to both Class A and Class B units of the Trust. Unless the context requires otherwise, in this PDS, a reference to “units” is a reference to both Class A and Class B units.

The Responsible Entity has authorised the use of this PDS as disclosure to investors and prospective investors who invest directly in the Trust, as well as investors and prospective investors of an investor directed portfolio service, master trust, wrap account or an investor directed portfolio service-like scheme (“IDPS”). This PDS is available for use by persons applying for units through an IDPS (“Indirect Investors”). Indirect Investors may apply for either or both Class A units and Class B units. The operator of an IDPS is referred to in this PDS as the “IDPS Operator” and the disclosure document for an IDPS is referred to as the “IDPS Guide”. If you invest through an IDPS, your rights and liabilities will be governed by the terms and conditions of the IDPS Guide. Indirect Investors should carefully read these terms and conditions before investing in the Trust. Indirect Investors should note that they are directing the IDPS Operator to arrange for their money to be invested in the Trust on their behalf. Indirect Investors do not become unit holders in the Trust or have rights of unit holders. The IDPS Operator becomes the unit holder in the Trust and acquires these rights. Indirect Investors should refer to their IDPS Guide for information relating to their rights and responsibilities as an Indirect Investor, including information on any fees and charges applicable to their investment. Information regarding how Indirect Investors can apply for units in the Trust (including an application form where applicable) will also be contained in the IDPS Guide. EQT accepts no responsibility for IDPS Operators or any failure by an IDPS Operator to provide Indirect Investors with a current version of this PDS as provided by EQT or to withdraw the PDS from circulation if required by EQT. Please ask your adviser if you have any questions about investing in the Trust (either directly or indirectly through an IDPS).

This PDS is prepared for your general information only. It is not intended to be a recommendation by the Responsible Entity or Investment Manager, any associate, employee, agent or officer of the Responsible Entity or Investment Manager or any other person to invest in the Trust. This PDS does not take into account the investment objectives, financial situation or needs of any particular investor. You should not base your decision to invest in the Trust solely on the information in this PDS. You should consider the suitability of the Trust in view of your financial position and investment objectives and needs and you may want to seek advice before making an investment decision. EQT and the Investment Manager and their employees, agents or officers do not guarantee the success, repayment of capital or any rate of return on income or capital or the investment performance of the Trust. Past performance is no indication of future performance. Units in the Trust are offered and issued by the Responsible Entity on the terms and conditions described in this PDS. You should read this PDS in its entirety.

The forward-looking statements included in this document involve subjective judgment and analysis and are subject to significant uncertainties, risks and contingencies, many of which are outside the control of, and are unknown to, EQT, the Investment Manager and their officers, employees, agents or associates. Actual future events may vary materially from the forward-looking statements and the assumptions on which those statements are based. Given these uncertainties, you are cautioned to not place undue reliance on such forward-looking statements.

In particular, in considering whether to invest in the Trust, investors should consider the risk factors that could affect the financial performance of the Trust. Some of the risk factors affecting the Trust are 2

summarised in Section 6.

All amounts quoted in this PDS are in Australian dollars (“AUD”) unless stated otherwise.

The offer made in this PDS is available only to persons receiving this PDS in Australia and New Zealand (electronically or otherwise). New Zealand investors must read the Permal Absolute Return Trust New Zealand Wholesale Investor Fact Sheet before investing in the Trust. If you received this PDS electronically we will provide a paper copy free upon request during the life of this PDS. Please call the Permal London Institutional Team on +44 20 7389 1300 for a copy. The offer made in this PDS is only available in New Zealand to Wholesale Investors. The offer is not to be treated as an offer to, and is not capable of acceptance by, any person in New Zealand who is not a Wholesale Investor. New Zealand Wholesale Investors wishing to invest in the Trust should be aware that there may be different tax implications of investing in the Trust and should seek their own tax advice as necessary. This PDS does not constitute a direct or indirect offer of securities in the US or to any US Person as defined in Regulation S under the US Securities Act of 1933 as amended (“US Securities Act”). EQT may vary its position and offers may be accepted on merit at EQT's discretion. The units in the Trust have not been, and will not be, registered under the US Securities Act unless otherwise determined by EQT and may not be offered or sold in the US to, or for, the account of any US Person (as defined) except in a transaction that is exempt from the registration requirements of the US Securities Act and applicable US state securities laws.

Information in this PDS that is not materially adverse is subject to change from time to time. We may update this information. You can obtain any updated information by calling the Permal London Institutional Team on +44 20 7389 1300. A paper copy of the updated information will be provided free of charge on request. You may also contact EQT: • by writing to GPO Box 2307 Melbourne Vic 3001; and • by calling 1300 555 378 (Australia) or +613 8623 5290. Unless otherwise stated, all fees quoted in the PDS are inclusive of GST, after allowing for an estimate for Reduced Input Tax Credits (“RITC”), and all amounts are in Australian dollars.

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Contents

1. Trust at a glance 5

2. Benchmarks 7

3. Disclosure Principles 9

4. Who is managing the Trust? 13

5. How the Trust invests 15

6. Managing risk 22

7. Investing and withdrawing 26

8. Keeping track of your investment 30

9. Fees and other costs 32

10. Taxation 37

11. Other important information 40

Glossary of important terms 42

Application Form

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1) Trust at a glance

Summary For further information

Name of the Trust Permal Absolute Return Trust Page 11

ARSN 127 064 546 Page 11

APIR ETL0144AU Page 11

Investment objective The objective of the Trust is to achieve an Absolute Return of the UBSA 90 Section 5.1 Day Bank Bill Index plus 5% p.a., by investing in the Feeder Fund (Australian dollar nil fee class of units).

Investment strategy The Trust invests primarily in the Feeder Fund, and holds the residual assets Section 5.2 and investments held in cash. The Feeder Fund invests in the Master Fund which holds a geographically diversified portfolio of hedge funds. Typically the portfolio will include in excess of 20 hedge funds, spot and forward exchange contracts, Derivatives, cash and cash equivalents. The Feeder Fund also participates in a passive currency hedging programme on behalf of the non-USD class of units in the Feeder Fund. The Trust’s investment in the Feeder Fund which in turn has exposure to other hedge funds (through the Master Fund) means that the risk level of the Trust would be considered high.

Trust type The Trust is an unlisted registered managed investment scheme, which Section 3, Section invests through the Feeder Fund and subsequently the Master Fund in a 5.3 geographically diversified portfolio of hedge funds.

Classes of units Two classes of units are offered, Class A and Class B. Section 9 Investors’ rights in relation to each class of units are identical with the exception of the method for calculating and charging the Performance Fee.

Eligible investors Australian Wholesale Clients and New Zealand Wholesale Investors.

Recommended The minimum suggested investment timeframe for the Trust is 5 years. We investment timeframe recommend that you consider, with your financial adviser, the suggested investment period for the Trust in relation to your own investment timeframe. You should review this regularly to ensure that the Trust continues to meet your investment needs.

Minimum initial The minimum investment amount for each class of units in the Trust is Section 7 investment $500,000.

Minimum additional No minimum is applicable. investment

Minimum withdrawal No minimum is applicable. Section 5.10, amount Section 7 Where a withdrawal request would take the remaining balance below the minimum level of $500,000 in a class of units, a full withdrawal may be required.

Minimum balance The minimum balance for each class of units is $500,000. Section 5.10, Section 7 The Responsible Entity may in its discretion accept an initial investment amount lower than $500,000 where subsequent additional investments ensure the minimum balance is equal or greater than $500,000 in a class of units in the near term.

Cut off time for Refer to ‘Withdrawals’ and ‘Applications’ below. Section 3, Section 5

applications and 5.7, Section 5.10, withdrawals Section 7

Cooling Off No cooling off period applies to the offer made in this PDS as only Section 7 Wholesale Clients in Australia and Wholesale Investors in New Zealand may make an investment in the Trust.

Valuation frequency Monthly Section 2, Section 3, Section 5.5, Section 7

Unit pricing Variable – generally determined monthly, based on the Net Asset Value of Section 2, Section the relevant class of units. 3, Section 5.5, Section 7, Section 11

Applications For an application to be processed at the unit price determined for a Section 5.5, particular month, Application Forms must be received at least 10 Business Section 7 Days 2 pm Sydney time prior to the last Business Day of the relevant month and monies must be received at least 5 Business Days prior to the last Business Day of that month.

Withdrawals Withdrawal notice – no less than 99 calendar days written notice prior to the Section 3, Section last Business Day 2PM Sydney time of the month in which you wish to 5.10, Section 7 withdraw (“Valuation Day”). Withdrawal monies - usually paid within 28 Business Days of the relevant Valuation Day. However, under the Constitution, withdrawal monies may be paid within 60 days of the Valuation Day or longer in certain circumstances.

Income distribution Annually (for the financial year ending 30 June). Distributions will be paid as Section 7, Section soon as possible after year-end. Distributions can be reinvested in units of 10 the same class in the Trust or paid to a nominated bank account.

Management costs Management fees and Performance Fees. Management fees are capped at Section 3, Section 1.20% p.a, except for extraordinary expenses. 5.3, Section 9

Entry fee/ exit fee Nil

Performance Fee The method for calculating and charging the Performance Fee is different in Section 9 respect of each class of units in the Trust. Class A: 10% of the outperformance of the UBSA 90 Day Bank Bill Index plus management costs of the unit holder (excluding the Performance Fee). For Class A units, the Performance Fee is to be paid separately by the investor directly to the Investment Manager. Performance Fees for Class A units are not deducted from the assets of the Trust. The performance fee rate of 10% for Class A units is exclusive of GST. The actual method for calculating the performance fee will be set out in an agreement between the Investment Manager and each Class A unit holder Class B: 10% of the outperformance of the UBSA 90 Day Bank Bill Index plus management costs of Class B (excluding the Performance Fee). The Performance Fee for Class B units is deducted from the assets of the Trust and reflected in the unit price.

Buy/Sell Spread Nil. Section 5.5, Section 5.10, Section 7, Section 9

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2) Benchmarks

The information summarised in the following tables and explained in detail in the identified Is the For further section reference is intended to assist investors with analysing the risks of investing in the benchmark information Trust. Investors should consider this information together with the detailed explanation of satisfied? various benchmarks and principles referenced throughout this PDS and the key risks of investing in the Trust highlighted in Section 6 of this PDS.

Valuation of assets This benchmark The Responsible Entity has appointed a third party, BNP Paribas Yes Please addresses whether Securities Services, as Custodian and Administrator of the Trust. refer to valuations of the BNP Paribas Securities Services has a pricing policy in place with Sections 3, Trust’s non-exchange specific provisions for fund accounting, which incorporates valuation 5.5 and 7 of traded assets are reporting, investment accounting, taxation, unit pricing, financial this PDS for provided by an reporting, performance measurement and post trade compliance. A further independent related entity of the Custodian and Administrator was, until recently, information. administrator or an the immediate investment manager of the Trust, but now has no independent valuation direct or indirect role or interest in the Trust's investment service provider. management

The valuation of assets for the Trust takes place on a monthly basis. The Trust invests in the Feeder Fund, which in turn invests in the Master Fund, which has exposure to a geographically diverse portfolio of hedge funds across a number of strategies. HSBC Securities Services (Guernsey) Limited has been appointed as custodian and administrator (“Underlying Custodian and Administrator”) of the Feeder Fund and the Master Fund. HSBC Securities Services (Ireland) Limited has been appointed as sub- administrator (“Sub-Administrator”) of the Feeder Fund and the Master Fund and is responsible for the calculation of the net asset value of the Feeder Fund and the Master Fund. In calculating the net asset value the Sub-Administrator may rely upon such automatic pricing services as it determines and may also rely on brokers, market makers or other intermediaries and may rely on prices (including estimated prices) provided by the manager, administrator or valuation agent of an underlying collective investment scheme.

Periodic reporting This benchmark The Responsible Entity has and implements a policy to report on the No Please refer addresses whether following information as soon as practicable after the relevant period to Section 8 the Responsible end: of this PDS Entity of the Trust will for further provide periodic Annual Report to Investors, including financial statements and information. disclosure of certain auditor’s report;

key information on an Transaction Reports confirming all additional investments, annual and monthly withdrawals, and payments (issued following transactions and on basis. request);

Transaction Statements issued monthly confirming the investor’s month end balance; Distribution Statements issued annually notifying the investor of the value of their investment, income from investments and confirming the reinvestment or payment to the investor’s bank account; Investment Reports issued monthly and quarterly provide information on the Trust including a review of market conditions and Trust performance, Trust size, strategy allocation and contribution. Tax Statements issued annually, providing investors with taxation information including a detailed summary of the components of any distributions. The Trust does not technically satisfy this benchmark as some investment reports are not available at the Feeder Fund and the Master Fund level. The latest investment report can be emailed upon request to the

7

Permal London Institutional Team.

8

3) Disclosure Principles

Summary Section (for further information)

Investment strategy The investment objective of the Trust is to achieve an Absolute Return by Refer to investing in a diversified portfolio of hedge funds. This is achieved by investing Section 5.2 in the Feeder Fund’s Australian dollar nil fee class of units. The Feeder Fund invests primarily in the Master Fund. The Master Fund invests in other hedge funds which may invest in a wide range of investments (including but without limitation, listed and unlisted equities, investment grade and non-investment grade bonds, notes and listed and unlisted Derivatives, such as Options, futures, warrants and forward contracts) in a variety of countries, currencies and markets (including without limitation Europe, North America, Japan, Asia Pacific and various emerging markets). The Feeder Fund, through the Master Fund, may invest in hedge funds which adopt an Absolute Value, Relative Value or Multi-Strategy objective (see Section 5.2 for more information regarding these investment strategies). The selection criteria for hedge fund investment selection are discussed further in Sections 5.2 and 5.3. The Trust itself does not use any Leverage, Derivatives or short selling. However, the Feeder Fund, Master Fund and the hedge funds in which the Master Fund invests may use Leverage, Derivatives and short selling. Refer to Sections 5.4, 5.8 and 5.9 for details. Diversification guidelines and investment restrictions are set out in Section 5.2. The investment strategy of the Trust is unlikely to change but if a material change occurs, notification will be provided to investors. There is no difference between the investment strategy applied for investors investing in Class A units and Class B units.

Investment manager Investment Manager Refer to Section 4 The Investment Manager of the Trust, the Feeder Fund and the Master Fund is PIMS. No significant adverse regulatory findings have been made against the Investment Manager. Under the investment management agreement between the Investment Manager and EQT, EQT can terminate the Investment Manager’s appointment where the Investment Manager becomes insolvent, materially breaches the agreement, ceases to carry on its business or in other circumstances stated in Section 4. In the event that EQT terminates the Investment Manager following one of these events, the Investment Manager’s appointment would cease upon any termination date specified in the notice, and the Investment Manager would be entitled to receive fees in accordance with the agreement until the effective date of termination.

Fund structure The Trust is a registered managed investment scheme and was registered with Refer to ASIC on 5 September 2007 as the Fauchier Partners Absolute Return Trust Section 5.3 ARSN 127 064 546. The name change to the Jubilee Absolute Return Trust became effective on 21 June 2013. The name change to Permal Absolute Return Trust became effective on 1 July 2015. The Trust’s units are not listed on any securities exchange. Two classes of units in the Trust are offered: Class A – the Performance Fee is not reflected in the unit price for this class of units. If payable, the Performance Fee will be recovered by the Investment Manager separately from each unit holder annually in arrears. The Performance Fee is not deducted from the assets of the Trust. Class B – The Performance Fee (if any) is reflected in the unit price for this class of units and deducted from the assets of the Trust. Refer to Section 9 for more information. 9

The Investment Manager of the Trust is Permal Investment Management Services Limited. BNP Paribas Fund Services Australasia Pty Ltd ACN 002 655 674 trading as BNP Paribas Securities Services has been contracted to provide administration and custodial services for the Trust. PricewaterhouseCoopers has been appointed as the auditor for the Trust. The management costs of the Trust (excluding the Performance Fee) are 1.20%, capped, except for extraordinary expenses. If the total management costs (excluding the Performance Fee) exceed the cap, PIMS will reimburse the amount of the excess costs to the Trust unless the excess is due to an extraordinary expense. Further information regarding fees is set out in Section 9. The Trust is denominated in Australian dollars. Feeder Fund and Master Fund The Trust invests in the Feeder Fund. The Feeder Fund is a ‘protected cell’ of Permal Absolute Return Fund PCC Limited, which is an authorised open- ended Class B collective investment company with limited liability registered in Guernsey with registration number 44327 (“Company”). The Company is registered in Guernsey as a protected cell company in accordance with the laws of Guernsey. The Feeder Fund has established an Australian dollar nil fee class of units so investors only incur fees charged by the Trust and do not incur management fees charged by the Feeder Fund. The Feeder Fund will aim to achieve its investment objective by investing primarily all of its assets in the Master Fund, an open-ended investment company incorporated under the laws of Guernsey on 3 February 2011 for an unlimited period with registration number 53005 and which is authorised as a Class B Collective Investment Scheme in accordance with the Class B Rules issued under Guernsey Law. The Feeder Fund operates as a conduit vehicle and is a feeder fund into the Master Fund. Both the Master Fund and the Feeder Fund are denominated in US dollars. HSBC Securities Services (Guernsey) Limited has been appointed as Underlying Custodian and Administrator of the Feeder Fund and the Master Fund. The Underlying Custodian and Administrator has appointed HSBC Securities Services (Ireland) Limited as Sub-Administrator of the Feeder Fund and the Master Fund. The Underlying Custodian and Administrator has appointed HSBC Institutional Trust Services (Ireland) Limited as its Sub- Custodian. The portfolio of the Feeder Fund (through its investment in the Master Fund) will include a number of different hedge funds representing a variety of different strategies and based in North America, Europe and Asia. The Underlying Investment Manager undertakes a due diligence process described in Section 5.3 before investing into a hedge fund. The Underlying Investment Manager will take into consideration the following factors in respect of potential investee hedge funds: corporate structure, investment philosophy, investment process, IT infrastructure, performance history, quality of key personnel and risk management process. Based upon these considerations, the Underlying Investment Manager may recommend the addition or replacement of underlying investments and/or adjustments in the percentage of an investment by the Feeder Fund (through the Master Fund). Risks associated with the Trust structure are discussed in Section 6.

Valuation, location The underlying hedge funds of the Feeder Fund may, through the Master Refer to and custody of assets Fund, invest in a wide range of investments (including but without limitation, Section 5.5 listed and unlisted equities, investment grade and non-investment grade bonds, notes and listed and unlisted Derivatives, such as Options, futures, warrants and forward contracts) in a variety of countries, currencies and markets (including without limitation Europe, North America, Japan, Asia Pacific and various emerging markets). HSBC Custody Services (Guernsey) Limited has been appointed as Underlying Custodian and Administrator of the Feeder Fund and the Master Fund. The Underlying Custodian and Administrator has appointed HSBC 10

Securities Services (Ireland) Limited as Sub-Administrator of the Feeder Fund and the Master Fund. The Underlying Custodian and Administrator has appointed HSBC Institutional Trust Services (Ireland) Limited as its Sub- Custodian. For more information regarding valuation and custodial arrangements for the underlying hedge funds, please refer to Section 5.5. In calculating the Net Asset Value, the Custodian and Administrator may rely upon such automatic pricing services as it determines and may also rely on pricing services, brokers, market makers or other intermediaries and may rely on prices (including estimated prices) provided by the manager, administrator or valuation agent of an underlying collective investment scheme. For the purpose of the Trust, EQT has appointed BNP Paribas Fund Services Australasia Pty Ltd ACN 002 655 674 trading as BNP Paribas Securities Services as Custodian and Administrator of the Trust. As Custodian and Administrator, BNP Paribas Securities Services has overall responsibility for custody of the assets of the Trust, although it may appoint sub-custodians from time to time. The Net Asset Value of a class of units in the Trust is generally determined monthly by deducting the liabilities apportioned to that class from the value of the assets of the Trust apportioned to that class, in accordance with the Trust’s Constitution. Generally, investments will be valued at the next available market value but other valuation methods and policies may be applied by EQT if appropriate or if otherwise required by law or applicable accounting standards.

Liquidity The liquidity of the Trust is determined by the liquidity of the Feeder Fund, the Refer to Master Fund and the underlying hedge funds in which the Master Fund invests. Section 5.7 and Section 7 There may be times when the underlying hedge funds may not be readily sold. This is more likely in the case of investments which are not listed on a recognised securities exchange, or are not traded frequently and are therefore less liquid. It is the policy of the Underlying Investment Manager to manage the overall liquidity of the Master Fund based on risk management parameters in relation to the liquidity of the underlying hedge funds, which are reviewed regularly. Trading volumes of investments are generally sufficient to satisfy liquidity requirements of Trust when necessary, taking into account the Withdrawal Notice Period outlined below. Please refer to the Liquidity Risk in Section 6 for further details. Due to the nature of the Trust’s underlying investments and the withdrawal notice requirements of the Feeder Fund, units in the Trust may only be redeemed monthly. The Withdrawal Notice Period required for the Trust is no less than 99 calendar days written notice prior to the last Business Day of the month in which you wish to withdraw (“Valuation Day”). Due to the length of the Withdrawal Notice Period and the ability to liquidate assets during this time, it is considered that there is no liquidity management policy required for the Trust. Payment is generally within 28 Business Days of the relevant Valuation Day. However refer to Section 5.7 and Section 7 for further explanation of withdrawal procedures where the Trust is not liquid, and where the period for payment of withdrawal proceeds may be extended.

Leverage Leverage will not be used by the Trust, the Feeder Fund and the Master Fund Refer to to generate returns. Section 5.4 The underlying hedge funds in which the Master Fund may invest are allowed to borrow and may use Leverage to increase their exposure to underlying investments. There are no limits on Leverage used by the underlying hedge funds in which the Feeder Fund (through the Master Fund) may invest. However, the Feeder Fund (through the Master Fund) does not invest in hedge funds whose purpose is to employ excessive Leverage to generate returns.

Derivatives The Trust does not engage in any significant Derivative transactions. The Refer to Feeder Fund (through the Master Fund) does not engage in any significant Section 5.9 Derivative transactions apart from Forward Foreign Exchange Contracts which 11

are solely used for the purposes of passive hedging (AUD to USD). Derivative transactions are more extensively employed at the underlying hedge fund level. The Feeder Fund (through the Master Fund) may invest in hedge funds, which invest in Derivatives, such as Options, warrants, forward contracts, Swaps and other similar investments. The use of these funds involves certain special risks, including (1) dependence on the funds' ability to predict movements in the price of securities being hedged and movements in interest rates; (2) imperfect Correlation between the hedging instruments and the securities or market sectors being hedged; (3) the fact that skills needed to use these instruments are different from those needed to select the funds' securities; (4) the possible absence of a liquid market for any particular instrument at any particular time; and (5) possible impediments to effective portfolio management or the ability to meet repurchase requests or other short-term obligations attributable to the proportion of a funds' assets segregated to cover its obligations. The underlying hedge funds may employ Leverage in using Derivatives. While such techniques can substantially improve the return on invested capital, their use may also increase the risk of losses to the Feeder Fund and the Master Fund (and consequently, to the Trust). There are no limits on Leverage used by the hedge funds in which the Feeder Fund (through the Master Fund) may invest.

Short selling The Underlying Investment Manager may invest the Feeder Fund’s assets Refer to (through the Master Fund) in Absolute Value strategies, which include hedge Section 5.8 funds investing in a combination of Long and Short Positions. This group includes equity short bias funds. The objective of short selling is to try and profit from a decrease in the value of the security. Generally, short selling involves borrowing the security from another party to make the sale. Short sales can involve much greater risk than buying a security, as losses are generally restricted at most to the amount invested, whereas losses on a Short Position can be much greater than the purchased value of the security. Whilst short selling can often reduce risk since it may offset the risk of loss with Long Positions, it is also possible for Long Positions and Short Positions to both lose money at the same time. Please refer to Section 6 for information relating to how short selling risk is managed.

Withdrawals Withdrawal requests are required no less than 99 calendar days prior to the Refer to last Business Day of the month (2PM Sydney time) in which the investors Section 5.10 wishes to withdraw (“Valuation Day”). The Responsible Entity will generally and Section 7 allow an investor of the Trust to access their funds as soon as is reasonably practicable, normally within 28 Business Days of the relevant Valuation Day. However, under the Constitution, the Responsible Entity has 60 days after the Valuation Day to pay withdrawals and longer in some circumstances (Refer to Section 7, “Access to funds” for more information).

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4) Who is managing the Trust?

About the Equity Trustees Limited Responsible Entity EQT is a publicly listed company on the Australian Securities Exchange. Established as a trustee and executorial service provider by a special Act of the Victorian Parliament in 1888, EQT today is a dynamic financial services institution which will continue to grow the breadth and quality of the products and services on offer. Specialist services of EQT include the provision of estate management services, trustee services, financial and taxation advice, personal investment advice – including superannuation – and responsible entity services for external fund managers. EQT’s responsibilities and obligations, as the responsible entity of the Trust, are governed by the Constitution as well as the Corporations Act and general trust law. EQT also assists not-for-profit and charitable organisations with their services and financial product needs and offers philanthropy advice to families and individuals seeking to establish charitable trusts. EQT is committed to acting in the best interests of its clients via wealth management solutions over a range of Asset Classes carrying different risk profiles. EQT has appointed Permal Investment Management Services Limited as the Investment Manager of the Trust.

About the Permal Investment Management Services Limited Investment Manager PIMS is the Investment Manager of the Trust, the Master Fund and the Feeder Fund, into which the Trust invests. PIMS is organised under the laws of England and Wales and is a member of the Permal Group. The Permal Group is comprised of an international group of companies held by Permal Group Ltd., a subsidiary of Legg Mason, Inc. Legg Mason, Inc (NYSE: LM) is headquartered in Baltimore, Maryland, U.S.A, and is a global asset management firm with assets under management of approximately U$707 billion as at 30 April 2015. PIMS is regulated by the UK Financial Conduct Authority (FCA) and relies on the Australian Securities & Investments Commission (ASIC) Class Order CO 03/1099 (Class Order) exemption for FCA regulated firms which exempts it from the requirement to hold an Australian financial services licence under the Corporations Act 2001 in respect of the financial services it provides in Australia. No significant adverse regulatory findings have been made against the Investment Manager. As of the date of this PDS, the following are the individuals working within the Investment Manager who have principal responsibility for the investment performance of the Feeder Fund and the Master Fund: Christopher Fawcett is Senior Investment Officer for the Permal Group, Senior Investment Officer for the London Portfolio Management Group and is a member of Permal’s Global Investment Committee. He co- founded Fauchier Partners in 1994, having previously worked at Euris SA, a French investment holding company with substantial investments in private equity and hedge funds. Previously, he worked at Morgan Grenfell, Industrial Technology Securities (a venture capital company of which he was co- founder), and at the Dumenil Group. Mr. Fawcett is currently a Director of the Hedge Funds Standard Board Ltd. He was a director of the Alternative Investment Management Association (AIMA) from 2000 to 2012 - was the Chairman from 2002 to 2008 - and was a director of the CFA Society UK Ltd. from 2007 to 2011. Mr. Fawcett has an M.A. in Law from Oxford University, an M.B.A. with distinction from INSEAD, and is a qualified Chartered Accountant. Clark Fenton is Co-Chief Investment Officer for the Permal Group and Chief Investment Officer for the London Portfolio Management Group. He is responsible for asset allocation, performance monitoring and research, and is a member of Permal’s Global Investment Committee. Mr. Fenton joined Fauchier Partners in 2003. Previously, he worked for Morgan Stanley and Montgomery Securities. He has a BA from Georgetown University’s School of Foreign Service and an MBA from the University of Michigan. Javier Dyer is Deputy Chief Investment Officer and Portfolio Manager for the Permal Group, with a particular focus on fixed income, and is a member of the London Portfolio Management Group. He has been at Permal since 2003. Previously, he worked at Atlantic Security Bank (now known as Credicorp Securities Inc.) and Banco de Credito del Peru. Mr. Dyer holds an MBA in Finance from the University of Pennsylvania. He also holds a BS in Business Administration with a major in Finance from Universidad de Lima, Peru. Heinrich Merz is Deputy Chief Investment Officer and a member of the London Portfolio Management Group. He joined Fauchier Partners in 2010. Previously, he worked for Cambridge Associates and Concordia Advisors. He has an MIA from Colombia University, an MA (Hons) in Politics, Philosophy and Economics from Oxford University, is a CFA charter holder and a Member of the Chartered Institute for Securities and Investment. All of the individuals above spend approximately 100% of their time executing the investment strategy of the Feeder Fund (through the Master Fund), with the exception of Javier Dyer who spends approximately 13

25% of his time executing the investment strategy of the Feeder Fund (through the Master Fund).

About the EQT has appointed BNP Paribas Fund Services Australasia Pty Ltd ACN 002 655 674 trading as BNP Administrator Paribas Securities Services as Custodian and Administrator of the Trust. As Custodian and Administrator, BNP Paribas Securities Services has overall responsibility for custody of the assets of the Trust, although it may appoint sub-custodians from time to time. HSBC Securities Services (Guernsey) Limited has been appointed as Underlying Custodian and Administrator of the Feeder Fund and the Master Fund. The Underlying Custodian and Administrator has appointed HSBC Securities Services (Ireland) Limited as Sub-Administrator of the Feeder Fund and the Master Fund.

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5) How the Trust invests

5.1 Investment objective The investment objective of the Trust is to achieve an Absolute Return of the UBSA 90 Day Bank Bill plus 5% per annum by investing in the Feeder Fund (Australian dollar nil fee class of units). The investment objective of the Feeder Fund is to achieve an Absolute Return of three month LIBOR plus 5%, over a rolling five-year period by ultimately investing in a diversified portfolio of hedge funds. Capital preservation is a priority. The Feeder Fund aims to achieve its investment objective by investing primarily all of its assets in the Master Fund which is an open-ended investment company incorporated under the laws of Guernsey on 3 February 2011 for an unlimited period with registration number 53005 and which is authorised as a Class B Collective Investment Scheme in accordance with the Class B Rules issued under Guernsey Law. The Feeder Fund operates as a conduit vehicle and is a feeder fund into the Master Fund. Both the Master Fund and the Feeder Fund are denominated in US dollars and the Trust is denominated in Australian dollars. Typically, the Feeder Fund (through the Master Fund) will invest in 20 or more hedge funds, not exceeding 10 per cent in aggregate of the Feeder Fund’s gross assets in any single underlying portfolio manager or with any single managed account. In practice it is expected that the portfolio of the Feeder Fund, through its holding in the Master Fund will include approximately 30 different hedge funds. 5.2 Investment strategy When making investment decisions on behalf of the Feeder Fund and the Master Fund, the Underlying Investment Manager applies a top-down approach to the allocation of different hedge fund strategies as the framework within which specific investment decisions are taken. The Underlying Investment Manager believes this has two principal benefits. First, by identifying different sources of return, it enables the Underlying Investment Manager to ensure that the portfolio is sufficiently diversified. Second, it allows the Underlying Investment Manager to identify capacity constraints within different hedge fund strategies and to identify whether the prevailing market environment is favourable for specific strategies. The Underlying Investment Manager does not adopt a prescriptive approach to strategy allocation and it does not apply formal target weightings to strategies. The Underlying Investment Manager does not attempt to time or predict the direction of markets. Its objective is to allocate to strategies according to its perception of the potential which exists to generate returns in any particular strategy over a given period of time. For example, if there is little merger and acquisition activity, it will be very difficult for hedge fund managers active in this area to generate returns and, in these circumstances, the emphasis of the portfolio would be altered accordingly. The Underlying Investment Manager may invest the Feeder Fund’s assets (through the Master Fund) in the following principal strategies groups: • Absolute Value strategies, which include funds investing in a combination of Long and Short Positions. This group includes: macro funds; equity long bias funds; equity hedged funds; equity short bias funds; and specialist credit funds; • Relative Value strategies which seek to exploit anomalies in the pricing of two or more related securities. This group includes: equity non-directional funds; capital structure arbitrage funds; convertible bond arbitrage funds; event driven arbitrage funds; and fixed income arbitrage funds; • Multi Strategy funds which invest in situations combining elements of both Absolute Value and Relative Value approaches. The Underlying Investment Manager does not invest in hedge funds whose purpose is to engage in mutual fund timing; invest long only; employ excessive Leverage to generate returns; invest in mortgage backed arbitrage securities or are purely systems driven (so-called ''black box'' funds). The underlying hedge funds in which the Feeder Fund invests (through the Master Fund) are allowed to borrow and may use Leverage to increase their exposure to underlying investments. These techniques increase the opportunity for a higher return on investment, but can also increase the risk of greater loss. There are no limits on Leverage used by the hedge funds in which the Feeder Fund (through the Master Fund) may invest. However, the Underlying Investment Manager does not invest in hedge funds whose purpose is to employ excessive Leverage to generate returns. Further details of the specific risks and assumptions associated with the Trust’s investment strategy are covered in more detail in Section 6, under the heading ‘Managing Risk’. Investment Restrictions The Feeder Fund (through the Master Fund) is subject to compliance with the following investment restrictions; 1. The Feeder Fund (through the Master Fund) will not at the time an investment is made, invest (a) more than a maximum of 20 per cent at cost of its the gross asset value in any one hedge fund, nor (b) more than a maximum 20 per cent at cost of its the gross asset value in hedge funds managed by any one fund management group. Generally it is expected that the Feeder Fund will hold (through the Master Fund), when fully invested, in excess of 20 individual hedge funds. 2. The Feeder Fund may (through the Master Fund) invest in hedge funds, which in turn invest in other funds provided that any such investments do not exceed 20 per cent in aggregate of the Feeder Fund’s gross asset value.

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3. The Feeder Fund (through the Master Fund) may not take or seek to take management control of the issuer of any of the underlying investments, but it may hold majority stakes in such underlying investments from time to time. 4. At the time that a loan or investment is made, no more than 20 per cent of the value of the gross assets of the Feeder Fund (through the Master Fund) may be lent to or invested in the securities of any one issuer (including such issuer’s subsidiaries or affiliates) or may be exposed to the creditworthiness or solvency of any one counterparty (including such counterparty’s subsidiaries or affiliates). The Underlying Investment Manager will monitor the investment portfolio of the Feeder Fund (through the Master Fund) to ensure that it complies with the investment restrictions set out above. If the Underlying Investment Manager becomes aware of any breach of these limits appropriate action will be taken to bring the portfolio of the Feeder Fund (through the Master Fund) back within these limits as soon as practicable. Where any restriction is breached, the Underlying Investment Manager will ensure that immediate corrective action is taken except where the breach is due to appreciations or depreciations, changes in exchange rates, or by reason of rights, bonuses, and benefits in the nature of capital or by reason of any other action affecting every holder of that investment. Investment restriction 3 above applies at all times. The investment strategy of the Feeder Fund (through the Master Fund) and the Trust is unlikely to change but the required notification would be provided to investors should any material change occur. 5.3 Fund Structure The Trust The Trust is a registered managed investment scheme under the Corporations Act. The Trust is governed by the Constitution. The Trust comprises assets, which are acquired in accordance with the Trust’s investment strategy. Investors receive units in a class of the Trust when they invest. In general, each unit in a class of units represents an equal interest in the assets of the Trust apportioned to that class of units subject to liabilities; however it does not give the investor an interest in any particular asset of the Trust. Two classes of units in the Trust are available. Class A – the Performance Fee is not reflected in the unit price for this class of units. If payable, the Performance Fee will be recovered by the Investment Manager separately from each unit holder annually in arrears. The Performance Fee is not deducted from the assets of the Trust. Class B – The Performance Fee (if any) is reflected in the unit price for this class of units and deducted from the assets of the Trust. In all other respects, the rights and obligations of Class A and Class B units are identical. Refer to Section 9 for more information. The Trust’s units are not listed on any securities exchange. The Investment Manager of the Trust is Permal Investment Management Services Limited. BNP Paribas Fund Services Australasia Pty Ltd ACN 002 655 674 trading as BNP Paribas Securities Services has been contracted to provide administration and custodial services for the Trust. PricewaterhouseCoopers has been appointed as the auditor for the Trust. There are no related party relationships in existence between the entities mentioned above and all material arrangements in connection with the Trust are on an arm’s length basis. The Responsible Entity ensures that its key service providers comply with their service level obligations through a service provider monitoring programme. This involves a quarterly compliance certification, complemented by a six monthly review meeting with a standard agenda and a predefined list of documents that need to be submitted by the service provider. All key service providers mentioned above conduct their business operations partially or entirely in Australia and are subject to the jurisdiction of Australian laws. The Trust is denominated in Australian dollars. The management costs of the Trust (excluding the Performance Fee) are 1.20%, capped, except for extraordinary expenses. If the total management costs (excluding the Performance Fee) exceed the cap, PIMS will reimburse the amount of the excess costs to the Trust unless the excess is due to an extraordinary expense. Feeder Fund and Master Fund The Trust invests in the Feeder Fund. The Feeder Fund has established an Australian dollar nil fee class of units so investors only incur fees charged by the Trust and do not incur management fees charged by the Feeder Fund. The Feeder Fund is a ‘protected cell’ of Permal Absolute Return Fund PCC Limited, which is an authorised open-ended Class B collective investment company with limited liability registered in Guernsey with registration number 44327 (“Company”). The Company is registered in Guernsey as a protected cell company in accordance with the laws of Guernsey. The Company has established other protected cells. Guernsey law permits the Company to create one or more cells for the purposes of segregating and protecting the assets of one protected cell from the liabilities of other protected cells, and the non-cellular assets of the Company. 16

The Feeder Fund will aim to achieve its investment objective by investing primarily all of its assets in the Master Fund, an open- ended investment company incorporated under the laws of Guernsey on 3 February 2011 for an unlimited period with registration number 53005 and which is authorised as a Class B Collective Investment Scheme in accordance with the Class B Rules issued under Guernsey Law. The Feeder Fund will operate as a conduit vehicle and is a feeder fund into the Master Fund. Limited fees are payable at the level of the Master Fund and investors will not be subject to any double-charging of fees and expenses at the Master Fund level. The Feeder Fund (through the Master Fund) may invest in hedge funds, which may be subject to issue and redemption charges, expenses and to management, administration and performance fees to the relevant service providers of such hedge funds, in addition to those payable to and by the Feeder Fund (through the Master Fund) and the Underlying Investment Manager. The fees, costs and expenses of the underlying hedge funds are reflected in the net asset values of the underlying hedge funds which are used in the valuation of the Feeder Fund (through the Master Fund) and are, along with all the fees, costs and expenses of the Feeder Fund (through the Master Fund), ultimately reflected in the unit price of the Trust. Both the Master Fund and the Feeder Fund are denominated in US dollars. The Investment Manager of the Trust, Feeder Fund and the Master Fund is Permal Investment Management Services Limited, which is organised under the laws of England and Wales and is a member of the Permal Group, which is comprised of an international group of companies held by Permal Group Ltd., a subsidiary of Legg Mason, Inc. HSBC Securities Services (Guernsey) Limited has been appointed as Underlying Custodian and Administrator of the Feeder Fund and the Master Fund. The Underlying Custodian and Administrator has appointed HSBC Securities Services (Ireland) Limited as Sub-Administrator of the Feeder Fund and the Master Fund. The Underlying Custodian and Administrator has appointed HSBC Institutional Trust Services (Ireland) Limited as its Sub-Custodian. The risks of the Trust structure are set out in Section 6.

Hedge Fund Selection The underlying hedge funds of the Feeder Fund (through the Master Fund) may invest in a wide range of investments (including, but without limitation, listed and unlisted equities, investment grade and non-investment grade bonds, notes and

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listed and unlisted Derivatives, such as Options, futures, warrants and forward contracts) in a variety of countries, currencies and markets (including without limitation Europe, North America, Japan, Asia Pacific and various emerging markets). In selecting a specific hedge fund for inclusion in the portfolio of the Feeder Fund (through the Master Fund), the Underlying Investment Manager undertakes significant due diligence on the hedge fund in question, on its management company and on its administrative arrangements. Specifically, after having undertaken a thorough review of the selected hedge fund’s investment strategy and historical performance, the Underlying Investment Manager insists on meeting the senior members of the hedge fund manager’s team face-to-face and also carries out a detailed examination of their investment experience. In addition, in respect of each selected hedge fund, a thorough review is undertaken of (i) the risk profile of the fund, (ii) the systems which are in place to monitor risk and business performance, (iii) the legal structure of the fund, and (iv) the formal relationship the fund has with its administrator and prime brokers and bankers. It is only when the Underlying Investment Manager is satisfied on all counts that a recommendation is made to invest. Above all, the Underlying Investment Manager acknowledges that the human factor is a vital part of the process of selecting hedge fund managers and will only make a recommendation to invest after having spent a considerable amount of time interviewing each hedge fund manager, specifically in the hedge fund manager’s own offices. Further details of the specific risks associated with the Trust’s investment strategy are covered in more detail in Section 6, under the heading ‘Managing risk’. 5.4 Leverage Leverage will not be used by the Trust, the Feeder Fund and the Master Fund to generate returns. The underlying hedge funds are allowed to borrow and may use Leverage to increase their exposure to underlying investments. These techniques increase the opportunity for a higher return on investment, but can also increase the risk of greater loss. There are no limits on Leverage used by the underlying hedge funds in which the Feeder Fund (through the Master Fund) may invest. Consequently, it is not possible to provide a reasonable estimate of Leverage embedded in the underlying hedge funds. However, the Underlying Investment Manager does not invest in hedge funds whose purpose is to employ excessive Leverage to generate returns. The Feeder Fund (through the Master Fund) is permitted limited borrowing in order to fund short term cash flows which result from settlement timing differences or passive currency hedging. Worked Example A long short fund can utilise Leverage to gain a greater portfolio weight in individual securities than a typical long only fund. For example, assume a long only fund with a fund value of $10,000 can have a maximum portfolio position of 5% or $500 invested in Company X shares. A 10% increase/decrease in Company X’s share price would result in a $50 profit/loss on this investment or a 0.5% increase/decrease in the fund’s performance, assuming no change in the value of other portfolio holdings. A long short fund using a 130/30 strategy can typically have larger portfolio weightings than a long only fund as the fund, through short selling, has additional capital to reinvest in its Long Positions. A long short fund could for example have a maximum position or an active weight that is twice that of a long only fund. For example, a long short fund with a similar number of stocks as a long only fund may have a maximum portfolio position of 10% or $1000 invested in Company X shares. Thus a 10% increase/decrease in Company X’s share price would result in a $100 profit/loss on the investment and a 1.0% increase/decrease in the fund’s performance, assuming no change in the value of other portfolio holdings. Thus by using Leverage from the proceeds of short selling the impact of a change in Company X’s share price on the portfolio’s performance is increased by a factor of two. Care needs to be taken when selecting a fund that Leverage is not simply used to scale up risk in this way. 5.5 Valuation, location and custody of assets Valuation and custody EQT has appointed BNP Paribas Fund Services Australasia Pty Ltd ACN 002 655 674 trading as BNP Paribas Securities Services as Custodian and Administrator of the Trust. As Custodian and Administrator, BNP Paribas Securities Services has overall responsibility for custody of the assets of the Trust, although it may appoint sub-custodians from time to time. BNP Paribas Securities Services has a pricing policy in place with specific provisions for fund accounting which incorporates valuation reporting, investment accounting, taxation, unit pricing, financial reporting, performance measurement and post trade compliance. The Net Asset Value of a class of units in the Trust is generally determined monthly by deducting the liabilities of the Trust which are apportioned to that class from the value of the assets of the Trust apportioned to that class, in accordance with the Trust’s Constitution. Generally, investments will be valued at the next available market value but other valuation methods and policies may be applied by BNP Paribas Securities Services in consultation with EQT if appropriate or if otherwise required by law or applicable accounting standards. Units in a class of units in the Trust are issued at the prevailing Application Price for that class. The Application Price of a unit in a class of units in the Trust is based on the Net Asset Value of that class divided by the number of units on issue in that class. The Responsible Entity can also make an allowance for transaction costs required for buying investments when an investor acquires units; this is known as the Buy Spread. As at the date of this PDS the Buy Spread is nil. 18

Units in the Trust are redeemed at the Withdrawal Price for that class of units. The Withdrawal Price of a unit in a class of units in the Trust is based on the Net Asset Value of that class divided by the number of units on issue in that class. The Responsible Entity can also make an allowance for the transaction costs required for selling investments to satisfy a withdrawal request, which is known as the Sell Spread. As at the date of this PDS the Sell Spread is nil. HSBC Custody Services (Guernsey) Limited has been appointed as Underlying Custodian and Administrator of the Feeder Fund and the Master Fund. The Underlying Custodian and Administrator has appointed HSBC Securities Services (Ireland) Limited as Sub-Administrator of Feeder Fund and the Master Fund. The Underlying Custodian and Administrator has appointed HSBC Institutional Trust Services (Ireland) Limited as its Sub-Custodian. The custodial arrangements of the underlying funds in which the Feeder Fund (through the Master Fund) invests, are subject to due diligence review both prior to and post investment. The value of the net assets of the Feeder Fund (which invests through the Master Fund) will be determined in accordance with, inter alia, the following provisions:- (a) securities traded on a stock exchange are to be valued generally at the latest closing price as published by the relevant exchange or clearing house quoted on such exchange; (b) the value in any unit, share or other interest (“Interest”) in other collective investment schemes shall be the confirmed net asset value per Interest as advised by the administrator of the relevant underlying scheme, or if unavailable, the estimated net asset value per Interest as advised by the administrator of the relevant underlying scheme. If no such estimate is available from the administrator of the relevant underlying scheme, the estimated net asset value per Interest as advised by the manager of the relevant underlying scheme shall be used. If an estimate is unavailable, the Directors of the Feeder Fund (through the Master Fund) (‘the Directors’) may permit some other method of valuation to be used if they consider that in the circumstances such other method of valuation should be adopted to reflect more fairly the value of such Interest; (c) the value of forwards, futures, Options, swaptions and any other investment instruments held by the Feeder Fund and the Master Fund and traded on an exchange shall be valued at closing prices as published by the relevant exchange or clearing house. Where any of such instruments are traded over the counter they shall be valued by reference to the counter-part or in such other manner as may be determined by the Directors to reflect the true value thereof; (d) there will be deducted all liabilities of the Feeder Fund and the Master Fund and such provisions and allowances for contingencies (including tax) as the Directors think appropriate and accrued costs and expenses payable in respect of the Feeder Fund and Master Fund; (e) any value (whether of an investment or cash) otherwise than in the base currency (being US Dollars) will be converted into the base currency at the latest available exchange rate (whether official or otherwise); (f) unquoted investments and quoted investments for which no quoted price is currently available will be included at such value as the Directors shall decide. In so deciding the Directors shall be entitled to accept a valuation from a market-maker qualified, in the opinion of the Directors, to provide such a valuation. Notwithstanding the foregoing the Directors may adjust the value of any investment if, having regard to marketability, liquidity, currency and/or such other considerations as it may deem relevant, it deems that an adjustment is required to produce the probable realisation value. The Sub-Administrator may follow some other prudent method of valuation if the Directors consider that in the circumstances such other method of valuation should be adopted to reflect more fairly the value of such investment. Assets The types of underlying hedge funds in which the Feeder Fund may invest (through the Master Fund) include: • Absolute Value strategies which include funds investing in a combination of Long and Short Positions. This group includes: macro funds; equity long bias funds; equity hedged funds; equity short bias funds; and specialist credit funds; • Relative Value strategies which seek to exploit anomalies in the pricing of two or more related securities. This group includes: equity non-directional funds; capital structure arbitrage funds; convertible bond arbitrage funds; event driven arbitrage funds; and fixed income arbitrage funds; • Multi Strategy funds which invest in situations combining elements both of Absolute Value and Relative Value approaches. The Underlying Investment Manager does not apply any formal policies to the Feeder Fund (through the Master Fund) with regard to allocation ranges, the geographic location of the underlying hedge funds, their managers or the geographic focus of their investing. The underlying hedge funds in the Feeder Fund (through the Master Fund) may invest in a wide range of investments (including but without limitation, listed and unlisted equities, investment grade and non-investment grade bonds, notes and listed and unlisted Derivatives, such as Options, futures, warrants and forward contracts) in a variety of countries, currencies and markets (including without limitation Europe, North America, Japan, Asia Pacific and various emerging markets).

5.6 Lending guidelines Neither the Trust nor the Feeder Fund (through the Master Fund) engage in any lending.

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5.7 Liquidity The liquidity of the Trust is determined by the liquidity of the Feeder Fund, the Master Fund and the underlying hedge funds in which the Master Fund invests. There may be times when the underlying hedge funds may not be readily sold. This is more likely in the case of investments which are not listed on a recognised securities exchange, or are not traded frequently and are therefore less liquid. It is the policy of the Underlying Investment Manager to manage the overall liquidity of the Master Fund based on risk management parameters in relation to the liquidity of the underlying hedge funds, which are reviewed regularly. Consequently, the Responsible Entity does not expect that 80% of the Trust’s assets would be able to be realised within 10 days at their most recent Net Asset Value. However, trading volumes of investments are generally sufficient to satisfy liquidity requirements of Trust when necessary, taking into account the Withdrawal Notice Period outlined below. Due to the nature of the Trust’s underlying investments and the withdrawal notice requirements of the Feeder Fund, units in the Trust may only be redeemed monthly. The Withdrawal Notice Period required for the Trust is no less than 99 calendar days written notice prior to the last Business Day of the month in which you wish to withdraw (“Valuation Day”). Due to the length of the Withdrawal Notice Period and the ability to liquidate assets during this time, it is considered that there is no liquidity management policy required for the Trust. Payment is generally within 28 Business Days of the relevant Valuation Day. However please refer to Section 7 for further explanation of withdrawal procedures where the Trust is not liquid for the purposes of the Corporations Act, and the circumstances in which the period for payment of withdrawal proceeds may be extended. Note that neither the Responsible Entity nor the Investment Manager guarantees the liquidity of the Trust’s investments. Please refer to Section 6 for further details regarding the Liquidity Risk associated with an investment in the Trust. 5.8 Short selling The Underlying Investment Manager may invest the Feeder Fund’s assets (through the Master Fund) in Absolute Value strategies, which include funds investing in a combination of Long and Short Positions. This group includes equity short bias funds. In selecting a specific hedge fund for inclusion in the portfolio of the Feeder Fund (through the Master Fund), the Underlying Investment Manager undertakes significant due diligence on the hedge fund in question, on its management company and on its administrative arrangements. The objective of short selling is to try and profit from a decrease in the value of the security. Generally, short selling involves borrowing the security from another party to make the sale. Short sales can involve much greater risk than buying a security, as losses are generally restricted at most to the amount invested, whereas losses on a Short Position can be much greater than the purchased value of the security. Whilst short selling can often reduce risk since it may offset the risk of loss with Long Positions, it is also possible for Long Positions and Short Positions to both lose money at the same time. 5.9 Derivatives The Trust does not engage in any significant Derivative transactions. In addition to this, the Feeder Fund (in which the Trust invests) does not engage in any significant Derivative transactions apart from Forward Foreign Exchange Contracts which are solely used for the purposes of passive hedging (AUD to USD). HSBC Bank Plc is the counterparty used for passive hedging purposes. Derivative transactions are more extensively employed at the underlying hedge fund level. Derivatives used by the underlying hedge funds in which the Feeder Fund invests (through the Master Fund) may be either exchange traded or over the counter Derivatives. The Feeder Fund (through the Master Fund) may invest in hedge funds, which invest in Derivatives, such as Options, warrants, forward contracts, Swaps and other similar investments. The use of Derivatives involves certain special risks, including (1) dependence on the funds' ability to predict movements in the price of securities or currencies being hedged and movements in interest rates; (2) imperfect Correlation between the hedging instruments and the securities or market sectors being hedged; (3) the fact that skills needed to use these instruments are different from those needed to select the funds' securities or currencies; (4) the possible absence of a liquid market for any particular instrument at any particular time; and (5) possible impediments to effective portfolio management or the ability to meet repurchase requests or other short-term obligations attributable to the proportion of a funds' assets segregated to cover its obligations. The hedge funds in which the Feeder Fund invests (through the Master Fund) may employ Leverage in using Derivatives. While such techniques can substantially improve the return on invested capital, their use may also increase the risk of losses to the Feeder Fund. There are no limits on Leverage used by the hedge funds in which the Feeder Fund (through the Master Fund) may invest. In the case of Derivatives, fluctuations in price will reflect movements in the underlying assets, reference rate or index (as applicable) to which the Derivatives relate. The use of Derivative positions to hedge the risk of physical securities involves “basis risk”, which refers to the possibility that Derivative positions may not move perfectly in line with the physical security. As a consequence, the Derivative positions cannot be expected to perfectly hedge the risk of the physical security. In addition, Derivatives can lose value because of a sudden price move, or because of the passage of time.

5.10 Withdrawals information 20

Withdrawal requests are required no less than 99 calendar days (“Withdrawal Notice Period”) prior to the last Business Day of the month 2PM Sydney time (“Valuation Day”) in which the investor wishes to withdraw. The Responsible Entity will generally allow investors of the Trust to access their funds as soon as is reasonably practicable, normally within 28 Business Days of the relevant Valuation Day. However, under the Constitution, withdrawal monies may be paid within 60 days of the Valuation Day and may be further extended in certain circumstances (refer to Section 7 for more information). The Responsible Entity may in its discretion change the Withdrawal Notice Period. The Withdrawal Price of a unit in a class of units in the Trust is based on the Net Asset Value of the class divided by the number of units on issue in the class. The Responsible Entity can also make an allowance for the transaction costs required for selling investments to satisfy a withdrawal request, which is known as the Sell Spread. At the date of this PDS the Sell Spread is nil. Investors in the Trust can withdraw their investment by faxing a withdrawal request to BNP Paribas Securities Services –Unit Registry Team- Attention Permal Absolute Return Trust on +612 9006 9080, or alternatively by sending a written request to BNP Paribas Securities Services –Unit Registry Team, Attention Permal Absolute Return Trust PO Box R209, Royal Exchange NSW 1225. Alternatively, if you have invested indirectly in the Trust through an IDPS, you will need to provide your withdrawal request directly to your IDPS Operator. You will need to contact the relevant IDPS Operator regarding their withdrawal request cut off times for pricing purposes. The time to process a withdrawal request will depend on the particular IDPS Operator. You should refer to the IDPS guide for the minimum withdrawal amount. The Responsible Entity is not responsible for the operation of any IDPS. The minimum balance in a class of units in the Trust is $500,000. Where a withdrawal request takes the balance in a class below the minimum level of $500,000, the Responsible Entity may require you to redeem the balance of your investment. Withdrawals from the Trust will not be funded using an external liquid facility provider. The required notification would be provided to investors should any material change occur to their withdrawal rights. The most significant risk factor or limitation that may affect the ability of investors to withdraw from the Trust is Liquidity Risk, see Section 6 below. Where the Trust is not liquid, as defined in the Corporations Act, an investor does not have a right to withdraw from the Trust and can only withdraw where the Responsible Entity makes a withdrawal offer to investors in accordance with the Corporations Act. The Responsible Entity is not obliged to make such offers. The Trust will be liquid if at least 80% of the assets of the Trust are liquid assets. Broadly, liquid assets are money in an account or on deposit with a financial institution, bank accepted bills, marketable securities, other prescribed property and other assets that the Responsible Entity reasonably expects can be realised for their market value within the period specified in the Constitution for satisfying withdrawal requests while the Trust is liquid. 5.11 Suggested investment timeframe The suggested investment timeframe is at least 5 years. 5.12 Labour standards and environmental, social and ethical considerations EQT, the Investment Manager and the Underlying Investment Manager do not take into account labour standards or environmental, social or ethical considerations for the purposes of selecting, retaining or realising investments. 5.13 Trust performance Up to date information on the performance of the Trust will be available by calling the Permal London Institutional Team on +44 20 7389 1300.

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6) Managing risk Investment in any Trust carries risks, including Volatility of returns. Volatility refers to the degree to which returns may fluctuate around their long-term average. Each Asset Class, whether it is cash, fixed interest, property, Australian or international shares, has associated investment risks and the return achieved by each will vary accordingly. You should be aware that an investment in the Trust contains risk and neither the performance of the Trust nor the security of your investment is guaranteed by EQT. Investments in the Trust and the underlying investments in which it invests are generally subject to risks, including possible delays in the payment of withdrawal proceeds, and loss of income and/or capital. The following discussion of certain risk factors does not purport to be an exhaustive list or a complete explanation of all the risks involved in an investment in the Trust or the underlying investments. We recommend you talk to an adviser about the risks involved in investing in the Trust and how it might impact on your individual financial circumstances. Key Risks Active Management Risk The Underlying Investment Manager and underlying hedge funds in which the Trust ultimately invests do not invest in a predetermined basket of investments, such as a basket of investments that reflects an index, but instead selects investments that meets its investment criteria. This carries with it the risk that the Trust may underperform the market generally. Credit Risk The Trust through its investment in the Feeder Fund, the Master Fund and the hedge funds in which those funds invest faces several types of credit risk including market, counterparty and custodian risk. Market risk can result from explicit or implicit exposure to market instruments such equities and Derivatives. Counterparty risk can result when a party to a credit transaction fails to meet its obligations, such as a counterparty defaulting under a Derivative contract or a securities lender failing to deliver a borrowed security. Custodian risk can result from a failure of the custodian to secure custody of assets held there. The underlying hedge funds in which the Feeder Fund invests (through the Master Fund) may also invest in fixed interest investments with a non-investment grade credit rating and, as such, there is an increased risk compared with investment grade securities that the credit issuer may default on interest payments, the repayment of capital, or both. Counterparty Risk Counterparty risk is the sensitivity of security or portfolio value due to a counterparty in a transaction who is unwilling or unable to honour the terms of the contract. Counterparty risk arises when two entities enter into a contract, agreeing to the terms and conditions of a financial transaction involving the exchange of cash flows, under which they are obligated for a stated period. It is the Underlying Investment Manager’s intention to only enter into transactions with known and reputable counterparties. The underlying hedge funds in which the Feeder Fund invests (through the Master Fund) will also be subject to counterparty risk. Currency Risk The Feeder Fund and Master Fund’s assets are predominantly denominated in US dollars while the Trust assets are denominated in Australian dollars. Such currency exposure between the denomination of the assets of the Feeder Fund and the Trust is intended to be hedged back on a consistent basis into Australian dollars. Hedging for this purpose may be by means of spot and Forward Foreign Exchange Contracts or Options on such contracts or by using such other Derivative instruments as may be available, that have the same or similar effect. However there can be no assurance that the transaction will eliminate all currency risk due to imperfect Correlation between price movements of the hedging instruments and the underlying securities being hedged. Whilst it is intended that the Trust should remain fully hedged at all times this cannot be guaranteed. All costs and benefits associated with such hedging will be reflected in the unit price. The underlying hedge funds may invest in instruments in currencies other than US dollars. This could give rise to currency fluctuations and exchange rate exposure both at the level of the underlying hedge funds and the Feeder Fund (through the Master Fund). Concentration Risk The Feeder Fund (through the Master Fund) has limited restrictions relating to the diversification or concentration of its investments. To the extent the investments of the Feeder Fund (through the Master Fund) are concentrated in any type of investment, industry, currency, market or geographical location, the Feeder Fund (through the Master Fund) may be more vulnerable to particular economic, political, regulatory or other developments than would a more diversified portfolio and the aggregate return of the Feeder Fund and the Master Fund may be substantially adversely affected by the unfavourable performance of even a single investment. Derivative Risk The Trust will not engage in any significant Derivative transactions. In addition to this, the Feeder Fund will not engage in any significant Derivative transactions apart from Forward Foreign Exchange Contracts which are solely used for the purposes of passive hedging (AUD to USD). Derivative transactions are more extensively employed at the underlying hedge fund level.

Debt and Leverage risk: The hedge funds are allowed to borrow and may use Leverage to increase their exposure to underlying investments. These techniques increase the opportunity for a higher return on investment, but can also increase the risk of greater loss.

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Credit and settlement default risk: To the extent that the hedge funds selected by the Underlying Investment Manager invest in Swaps, Derivative or Synthetic Instruments, repurchase agreements or other over-the-counter transactions or, in certain circumstances, non-US securities, those hedge funds may take a credit risk with regard to parties with whom they trade and may also bear the risk of settlement default. Discretionary Risk The Underlying Investment Manager will select hedge funds as part of its fund of fund strategy. In doing so there is a risk that the underlying managers selected may not be invested in the markets or securities that give the best performance at any given time. Emerging Markets Risk Emerging markets are more likely to experience greater Volatility than developed countries. Securities traded in emerging markets also have more limited liquidity than those of developed countries which means those securities may fall more sharply and rapidly than developed countries. Further risks include differences in auditing and financial accounting standards, less regulated markets and less developed corporate laws. There is also high political risk due to the fragile nature of some of the countries. Political instability and/or political disturbances are more common in developing countries than in developed nations. There can be higher economic risk from policy mistakes as governments are less accountable than in developed nations. Examples of severe currency depreciation have also occurred in some nations. Trust Risk As with all managed funds, there are risks particular to the Trust including: that the Trust could be terminated, the fees and expenses could change, EQT is replaced as Responsible Entity or PIMS is replaced as Investment Manager. There is also risk that investing in the Trust may give different results than investing directly in the underlying hedge funds because of income or capital gains accrued in the Trust and the consequences of withdrawal by other investors. The Feeder Fund is a ‘protected cell’ of Permal Absolute Return Fund PCC Limited, which is an authorised open-ended Class B collective investment company with limited liability registered in Guernsey with registration number 44327 (“Company”). The Company is registered in Guernsey as a protected cell company in accordance with the laws of Guernsey. The Company has established other protected cells. Guernsey law permits the Company to create one or more cells for the purposes of segregating and protecting the assets of one protected cell from the liabilities of other protected cells, and the non-cellular assets of the Company. However, there is a risk that the laws of other jurisdictions may not recognise the statutory segregation and protection intended under Guernsey law, and that assets of one cell could be deemed available to meet the claims of creditors of another cell, or of the Company as a whole. Additionally, the Feeder Fund is divided into separate classes, with the Trust having exposure to an Australian dollar class of shares. Although separate books of account are maintained for each class, in the event of an insolvency of another class, it is possible that all of the assets of the Feeder Fund, including the Australian dollar class, could be applied to cover the liabilities of the insolvent class of shares. Interest Rate Risk Generally, an increase in interest rates has a contractionary effect on the state of the economy and thus the valuation of investments. For instance, rising interest rates can have a negative impact on the value of the Trust or a company’s value as increased borrowing costs may cause earnings to decline. As a result, the unit prices of the Trust or the share price of the company may fall. Key Individual Risk The success of the Feeder Fund (through the Master Fund) depends upon the ability of the key individuals within the Underlying Investment Manager to develop and implement investment strategies that achieve the Feeder Fund’s investment objectives, through the Master Fund. If they were to become unable to participate in the management of the Feeder Fund or the Master Fund, the consequences to both Funds may be material and adverse and could lead to the premature termination of the Feeder Fund and the Master Fund. Legal Risk The Trust may be affected by the actions of governments and regulatory bodies. Legislation could be imposed retrospectively or may be issued in the form of internal regulations of which the public may not be aware. Legislation (including legislation relating to tax) or regulation may be introduced which inhibits the Trust from pursuing its strategy or which renders an existing strategy less profitable than anticipated. Such actions may take any form, for example nationalisation of any institution or restrictions on investment strategies in any given market sector (for example restrictions on short selling in the financial sector) or changing requirements (for example increased disclosure to market) and imposed without prior warning by any regulator. This risk is generally higher in developing countries. The Trust (through the Feeder Fund and the Master Fund) may invest in underlying hedge funds located in a variety of jurisdictions. Hedge funds in certain jurisdictions may be unregulated or subject to a lower level of regulation, in particular in respect of net asset value calculations, liquidity, fees and potential conflicts of interest. Liquidity Risk There may be times when the underlying securities may not be readily sold. This is more likely in the case of investments which are not listed on a recognised securities exchange or are not traded frequently. Due to the nature of these underlying investments, and the withdrawal notice requirements of the Feeder Fund, units in the Trust may only be redeemed monthly following the required period of notice set out in Section 7. However, trading volumes of securities are generally sufficient to 23

satisfy liquidity requirements when necessary. Note that neither the Responsible Entity nor the Investment Manager guarantees the liquidity of the Trust’s investments. Substantial redemptions from the Feeder Fund (through the Master Fund) could require the Feeder Fund to liquidate investments more rapidly than otherwise desirable in order to raise the necessary cash to fund the redemptions and to achieve a market position appropriately reflecting a smaller equity base. This could adversely affect the value of the investment. If the Trust becomes not liquid within the meaning of the Corporations Act, an investor does not have a right to withdraw from the Trust and can only withdraw where the Responsible Entity makes a withdrawal offer to investors in accordance with the Corporations Act. The Responsible Entity is not obliged to make such offers. Market risk The value of, and returns from, many investments may fluctuate significantly over short periods of time. These fluctuations can be caused by changes in interest rates, economic cycles, investor sentiment, and political, social, technological and legal events. These changes can directly or indirectly create an environment that influences (negatively or positively) the value of the investments in the Trust. The PIMS Risk Management team evaluates ‘market’ risks, including: • The risks related to strategy and style of the particular fund; • The manager’s risk procedures, personnel, and systems; and • Historical and estimated behaviour in stressed markets. Risk factor analysis is applied to uncover exposures to various market dynamics. The risk factor approach reveals market forces that may exert significant influence on individual fund returns. PIMS uses a third party programme, RiskData, fed with weekly performance data to support this approach. Some high level risk factors include the following exposure types: • Equity • Convergence • Style • Correlation • Sector • Commodities • Capitalisation Size • Volatility • Credit • Currencies • Interest Rates These factors are measured for both ‘normal’ and ‘extreme’ market conditions. PIMS examines the positive and negative impact of each factor on the fund as well as the impact of the Volatility of the factor. Medium & Small Company Risk The hedge funds in which the Feeder Fund invests (through the Master Fund) may invest in medium and small size companies as a part of its portfolio. The volume of securities in small to medium sized companies that are listed on stock exchanges is limited. Therefore, if there is a fall in the prices of securities in these companies, these securities will fall more sharply and more rapidly than large capitalisation companies. Operational Risk Operational risk addresses the risks of trading and back office errors that result in a loss to the portfolio. This could be the result of negligence, ineffective securities processing procedures, computer systems problems or human error. The PIMS due diligence team evaluates ‘operational’ risks within hedge funds, including: • the business, personnel, and operational risks of the company that manages the fund; • the principals’ backgrounds; • the risks of the investment vehicle through which the portfolio is accessed. Given that hedge funds in certain jurisdictions can be unregulated, this is of particular importance and covers net asset value calculation, liquidity, fees and potential conflicts of interest; and • the quality of various administrators and third parties, which may influence operational risks. Risk Management Risk management must play an integral role in the investment process to achieve Absolute Return objectives. Capital preservation through superior risk management is at the heart of this philosophy. PIMS believes that risk management must be a holistic process, combining quantitative and qualitative analysis. Statistics must be interpreted with the help of market knowledge and qualitative assessments must be backed with objective, quantitative testing. Security Risk PIMS is sensitive to the risk that an investment may damage its reputation and rejects any hedge fund that appears to carry the potential for such a risk in its business, team and/or investment process. Consequently, PIMS will not invest in any hedge fund that does not provide sufficient transparency to expose this potential risk. Prior to making an investment in an individual fund, PIMS puts it through a qualitative risk examination.

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A major part of this examination involves on-site visits, which continue for each invested fund a minimum of two times per year. All of PIMS’ standards must be met before any investment is made, and if there is a subsequent failure or violation, the fund is redeemed. The risk management and due diligence teams play distinct yet complementary roles in the qualitative risk analysis. Short Selling Risk The underlying hedge funds in which the Feeder Fund invests (through the Master Fund) may use short selling strategies. The objective is to try and profit from a decrease in the value of the security. Generally, short selling involves borrowing the security from another party to make the sale. Short sales can involve much greater risk than buying a security, as losses are restricted at most to the amount invested, whereas losses on a Short Position can be much greater than the purchased value of the security. Whilst short selling can often reduce risk since they may offset the risk of loss with Long Positions, it is also possible for Long Positions and Short Positions to both lose money at the same time.

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7) Investing and withdrawing

IDPS investors The Responsible Entity has authorised the use of this PDS as disclosure to investors or prospective clients of IDPS and IDPS-like schemes. These are sometimes known as ‘wraps’ or ‘platforms’. They provide investors with a menu of investment opportunities. The Responsible Entity is not responsible for the operation of any IDPS. Investors who invest through an IDPS may rely on the information in this PDS to give a direction to the operator of the IDPS to invest in the Trust on their behalf. The Responsible Entity agrees to provide notice to the operators of the IDPS promptly of any supplementary or replacement PDS that is issued under the Corporations Act. Importantly, investors who invest in the Trust through an IDPS do not become unit holders of the Trust. In those instances the unit holder of the Trust is the operator of the IDPS. The unit holder’s rights set out in this PDS may only be exercised by the operator of the IDPS on behalf of the investor for whom they have acquired the units. Investors should read this PDS in conjunction with the offer documents issued by the IDPS Operator. Investors complete the application forms for their IDPS or IDPS-like scheme and receive reports concerning the Trust from their IDPS Operator. Enquiries should be directed to the IDPS Operator.

Initial The offer in this PDS is only available to Australian Wholesale Clients and New Zealand Wholesale applications Investors. To invest, please complete the Application Form accompanying this PDS including nominating in which class of units you wish to invest, and attach your cheque and send with relevant certified identification documentation as outlined in the Application Form to: BNP Securities Services - Unit Registry Team Attention - Permal Absolute Return Trust, PO Box R209, Royal Exchange, NSW 1225. Cheques should be made payable to: BNP Paribas Nominees Pty Ltd ACF EQT PIM Application Account Alternatively, transfer funds via EFT as per the instructions in the Application Form. Please note that cash cannot be accepted. Investors investing through an IDPS should use the application form attached to their IDPS Guide or any other application document provided by the IDPS provider (and not the Application Form attached to this PDS) to invest in the Trust. At the date of this PDS, the minimum initial investment amount in a class of units is $500,000. The Responsible Entity may in its discretion accept an initial investment amount lower than $500,000 where cashflows will ensure the minimum balance in that class is equal to or greater than $500,000 in the near term. If you are an Indirect Investor you should refer to the IDPS Guide or IDPS Operator for the minimum initial investment amount.

Additional For additional applications you can either mail your completed Application Form to the address above, or applications fax it to the following number: +612 9006 9080, BNP Securities Services - Unit Registry Team ; Attention - Permal Absolute Return Trust; PO Box R209, Royal Exchange, NSW 1225. The same terms apply as for initial applications.

Terms and For an application to be duly processed in a particular month at the unit price determined for that month, conditions for Application Forms must be received at least 10 Business Days (cut off time: 2PM Sydney time) applications prior to the last Business Day of the relevant month (“Application Notice Period”) and monies must be received at least 5 Business Days prior to the last Business Day of the relevant month. If you are an Australian investor, investing via an IDPS you need to contact the relevant IDPS provider regarding the cut off times for pricing purposes. The Responsible Entity may in its discretion change the Application Notice Period. We will only start processing an application if: . we consider that you have correctly completed the Application Form; . you have provided us with the relevant identification documents; and . we have received the application money (in cleared funds) stated in your Application Form. The time it takes for application money to clear varies depending on how you transfer the money and your bank (it may take up to four Business Days). We reserve the right to accept or reject applications in whole or in part at our discretion and delay processing of applications where we believe this to be in the best interest of all the investors of the Trust, without giving any reason. 26

EQT reserves the right to refuse any application without giving a reason. If for any reason EQT refuses or is unable to process your application to invest in the Trust, EQT will return your application money to you, subject to regulatory considerations, less any taxes or bank fees in connection with the application. You will not be entitled to any interest on your application money in this circumstance. Under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 applications made without providing all the information and supporting identification documentation requested on the Application Form or otherwise required under the anti-money laundering laws cannot be processed until all the necessary information has been provided. As a result delays in processing your application may occur.

Cooling off No cooling off period applies to the offer made in this PDS as only Wholesale Clients in Australia and period Wholesale Investors in New Zealand, may make an investment in the Trust. The right to cool off may also not apply if you are investing indirectly in the Trust, for example, through an IDPS, even if you are a Retail Client (as defined in the Corporations Act). This is because you do not acquire the rights of a unit holder in the Trust. Rather, you will direct the IDPS Operator to arrange for your monies to be invested in the Trust on your behalf. The terms and conditions of the IDPS or similar type document will govern your investment in relation to the Trust and any rights you may have in this regard.

Making a Investors in the Trust can withdraw their investment by faxing a withdrawal request to BNP Securities withdrawal Services - Unit Registry Team; Attention - Permal Absolute Return Trust on +612 9006 9080, or alternatively by sending a written request to BNP Securities Services - Unit Registry Team; Attention - Permal Absolute Return Trust, PO Box R209, Royal Exchange NSW 1225. If you hold two different classes of units, please nominate which class of units your withdrawal request relates to and/or how much of each class you wish to withdraw. Once we receive your withdrawal request, we may act on your instruction without further enquiry if the instruction bears your account number or investor details and your (apparent) signature(s), or your authorised signatory’s (apparent) signature(s). Withdrawal requests are required no less than 99 calendar days (“Withdrawal Notice Period”) prior to the last Business Day of the month 2 PM Sydney time (“Valuation Day”) in which the investor wishes to withdraw. The Responsible Entity will generally allow investors of the Trust to access their funds as soon as is reasonably practicable, normally within 28 Business Days of the relevant Valuation Day. However, the Constitution allows the Responsible Entity up to 60 days after the Valuation Day to pay any withdrawal proceeds and longer in certain circumstances (see “Access to funds” Section below). The Responsible Entity may in its discretion change the Withdrawal Notice Period. The Withdrawal Price of a unit in a class of units in the Trust is based on the Net Asset Value of the class divided by the number of units on issue in the class. The Responsible Entity can also make an allowance for the transaction costs required for selling investments to satisfy a withdrawal request, which is known as the Sell Spread. At the date of this PDS the Sell Spread is nil. Alternatively, if you have invested indirectly in the Trust through an IDPS, you will need to provide your withdrawal request directly to your IDPS Operator. You will need to contact the relevant IDPS Operator regarding their withdrawal request cut off times for pricing purposes. The time to process a withdrawal request will depend on the particular IDPS Operator. You should refer to the IDPS guide for the minimum withdrawal amount. The Responsible Entity is not responsible for the operation of any IDPS. The minimum balance of each class of units in the Trust is $500,000. Where a withdrawal request takes the balance in a class below the minimum level of $500,000, the Responsible Entity may require you to redeem the balance of your investment. EQT will refuse to comply with any withdrawal request if the sender does not satisfactorily identify themselves as the investor. Withdrawals will only be paid to the investor. By lodging a faxed withdrawal, you release, discharge and agree to indemnify EQT from and against any and all losses, liabilities, actions, proceedings, account claims and demands arising from any fax withdrawal. EQT can deny a withdrawal request in certain circumstances, including where accepting the request would cause the Trust to cease to be liquid or where the Trust is not liquid (as defined in the Corporations Act). When the Trust is not liquid, an investor can only withdraw when EQT makes a withdrawal offer to investors in accordance with the Corporations Act. EQT is not obliged to make such offers. You also agree that any payment made in accordance with the fax instructions shall be in complete satisfaction of the obligations of EQT, notwithstanding any fact or circumstance including that the payment was made without your knowledge or authority. You agree that if the payment is made in accordance with these instructions, you and any person claiming through or under you shall have no claim against EQT, or PIMS in relation to the payment.

Access to Except where the Trust is not liquid, as defined in the Corporations Act, (see below), the Responsible funds Entity will generally allow investors of the Trust to access their funds as soon as is reasonably practicable, normally within 28 Business Days of the relevant Valuation Day. However, the Constitution of the Trust allows the Responsible Entity to make payment up to 60 days after receipt of a withdrawal request. The Responsible Entity may extend that period for up to a further 30 days 27

if it considers that it is in the interests of investors to do so. If the Responsible Entity has taken all reasonable steps to realise Trust assets to satisfy a withdrawal request, and is unable to do so due to circumstances outside its control, the period for satisfying withdrawal requests may be further extended while those circumstances continue to apply. The Responsible Entity reserves the right to postpone the processing and payment of withdrawals for the Trust subject to the above extensions of time. If you have invested indirectly in the Trust through an IDPS, you need to provide your withdrawal request directly to your IDPS Operator. The time to process a withdrawal request will depend on the particular IDPS Operator. Where the Trust is not liquid, as defined in the Corporations Act, an investor does not have a right to withdraw from the Trust and can only withdraw where the Responsible Entity makes a withdrawal offer to investors in accordance with the Corporations Act. The Responsible Entity is not obliged to make such offers. The Trust will be liquid if at least 80% of the assets of the Trust are liquid assets. Broadly, liquid assets are money in an account or on deposit with a financial institution, bank accepted bills, marketable securities, other prescribed property and other assets that the Responsible Entity reasonably expects can be realised for their market value within the period specified in the Constitutions for satisfying withdrawal requests while the Trust is liquid.

Terms and Where a withdrawal request takes the balance below the minimum level of $500,000 in a class of units, conditions for the Responsible Entity may require you to redeem the remaining balance of your investment in that class. withdrawals EQT has the right to change the minimum holding amount. EQT will refuse to comply with any withdrawal request if the requesting party does not satisfactorily identify themselves as the investor or nominate the class of units to be redeemed. Withdrawal payments will not be made to third parties (including authorised nominees), and will only be paid directly to the investor’s bank account held in the name of the investor at a branch of an Australian domiciled bank. By lodging a facsimile withdrawal request the investor releases, discharges and agrees to indemnify EQT from and against any and all losses, liabilities, actions, proceedings, account claims and demands arising from any facsimile withdrawal request. The investor also agrees that any payment made in accordance with a facsimile withdrawal request shall be a complete satisfaction of the obligations of EQT, notwithstanding any fact or circumstance including that the payment was made without the investor’s knowledge or authority. The investor agrees that if the payment is made in accordance with a facsimile withdrawal request, the investor and any person claiming through or under them shall have no claim against EQT in relation to the payment.

Distributions An income distribution comprises the investor’s share (based on the number of units in a class held at the end of the distribution period) of any net income (including taxable gains) earned by the relevant class of units in the Trust. In some circumstances, an investor may receive an income distribution when they have made a withdrawal from the Trust. The Responsible Entity may determine that any withdrawal proceeds may be taken to include a component of distributable income. The Trust’s Constitution allows for a distribution period of up to 12 months. Distribution calculations are at least yearly at 30 June with an annual distribution paid as soon as possible thereafter. The investor can have their income distribution reinvested in units of the same class or directly credited to their nominated bank account. If the investor does not make an election, their income distribution will automatically be reinvested. Indirect Investors should review their IDPS Guide for information on how and when they receive any income distribution. New Zealand investors can only have their distribution reinvested (refer to the Permal Absolute Return Trust New Zealand Wholesale Investor Fact Sheet for further information).

Valuation of The value of a unit in a class of units in the Trust is generally determined monthly on the basis of the the Trust value of the investments in that class (after taking into account any liabilities), in accordance with the Trust’s Constitution. Generally, investments will be valued at the next available market value but other valuation methods and policies may be applied by EQT if appropriate or if otherwise required by law or applicable accounting standards. Units in a class are issued at the prevailing Application Price for that class. The Application Price of a unit in a class is based on the Net Asset Value of the class divided by the number of units on issue in that class. The Responsible Entity can also make an allowance for transaction costs required for buying investments when an investor acquires units; this is known as the Buy Spread. As at the date of this PDS the Buy Spread is nil.

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Joint account For joint accounts, each signatory must sign withdrawal requests. Please ensure both signatories sign the operation declaration in the Application Form. Joint accounts will be held as joint tenants.

Appointment of Investors may elect to appoint an authorised nominee to operate their account. The relevant sections on authorised the Application Form need to be completed, including the name and signature of the authorised nominee, nominee to the signature of the investor and the date. Only investors can appoint authorised nominees. If you appoint operate an authorised nominee we suggest that you ensure that: account • they cannot appoint another nominee; and • the appointment lasts until cancelled by you in writing. If the Responsible Entity determines that the circumstances require, the Responsible Entity may cancel an appointment by giving the investor 14 days’ notice in writing. If an appointment is cancelled, the Responsible Entity will not be obliged to act on the instructions of the authorised nominee. If the instructions are varied, the Responsible Entity will act only in accordance with the varied instructions. By completing and lodging the relevant sections on authorised nominees on the Application Form you release, discharge and agree to indemnify the Responsible Entity from and against any and all losses, liabilities, actions, proceedings, account claims and demands arising from the Responsible Entity acting on the instructions of your authorised nominee. You also agree that any instructions of your authorised nominee to the Responsible Entity, which are followed by the Responsible Entity, shall be a complete satisfaction of the obligations of the Responsible Entity, notwithstanding any fact or circumstance, including that the instructions were made without your knowledge or authority. You agree that if the authorised nominee’s instructions are followed by the Responsible Entity, you and any person claiming through or under you shall have no claim against the Responsible Entity in relation to the instructions. An authorised nominee can, among other things: • apply for additional investment units; • request that distribution instructions be altered; • change bank account details; • withdraw all or part of your investment; and • enquire as to the status of your investment and obtain copies of statements. Withdrawal payments will not be made to third parties. If a company is appointed as an authorised nominee, the powers will extend to any director and authorised officer of the company. If a partnership, the powers will extend to all partners.

Electronic If an investor instructs EQT by electronic means, such as facsimile, email or internet the investor releases instructions EQT from and indemnifies EQT against, all losses and liabilities arising from any payment or action EQT makes based on any instruction (even if not genuine) that EQT receives by an electronic communication bearing the investor’s investor code and which appears to indicate to EQT that the communication has been provided by the investor eg. a signature which is apparently the investor’s and that of an authorised signatory for the investment or an email address which is apparently the investor’s. The investor also agrees that neither they nor anyone claiming through them has any claim against EQT or the Trust in relation to such payments or actions. There is a risk that a fraudulent withdrawal request can be made by someone who has access to an investor’s investor code and a copy of their signature or email address. Please take care.

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8) Keeping track of your investment

Enquiries For any enquiries regarding your investment or the management of the Trust please contact Permal: Mail: Permal London Institutional Team 12 St. James’ Square London SW1Y 4LP United Kingdom Phone: +44 20 7389 1300 Fax: + 44 20 7389 1344 Email: [email protected]

Complaints EQT seeks to resolve complaints over the management of the Trust to the satisfaction of investors. If an investor wishes to lodge a formal complaint please contact: Mail: Complaints Officer – Enterprise Risk Equity Trustees Limited GPO Box 2307 Melbourne VIC 3001 Australia Phone: 1300 555 378 (Australia) or +613 8623 5290 Email: [email protected] EQT will seek to resolve any complaint and will respond as soon as possible and in any case will respond within 14 days of receiving the letter. If we are unable to resolve your complaint, you may be able to seek assistance from Financial Ombudsman Service. Financial Ombudsman Service GPO Box 3 Melbourne Vic 3001 Phone : 1300 780 808 (Australia) or +613 9613 7366 Email: [email protected] Please include the EQT FOS membership number with your enquiry: 10395. FOS is an independent body that may assist you if EQT cannot. FOS may not consider a dispute where the value of a person’s claim exceeds $500,000. If you are investing through an IDPS, then enquiries and complaints should be directed to the IDPS Operator, not EQT.

Reports We will make the following statements available to all investors; . A transaction confirmation statement, showing a change in your unit holding (provided when a transaction occurs or on request); . The Trust’s annual audited accounts for each period ended 30 June; . Annual distribution, tax and confirmation of holdings statements for each period ended 30 June; . Annual report detailing each of the following for the Trust: − the actual allocation to each asset type; − the Derivative counterparties engaged (including capital protection providers); and − the key service providers if they have changed since the latest report given to investors, including any change in their related party status. The latest annual report will be available online from www.eqt.com.au/insto. The following information is disclosed monthly: . the current total Net Asset Value of the Trust and the redemption value of a unit in each class of units as at the date the Net Asset Value was calculated; . the monthly or annual investment returns over at least a five-year period; . the key service providers if they have changed since the last report given to investors, including any change in their related party status; and . for each of the following matters since the last report on those matters:

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− the net return on the assets of each class of units in the Trust after fees, costs and taxes; − any material change in the Trust’s risk profile; − any material change in the Trust’s strategy; and − any change in the individuals playing a key role in investment decisions for the Trust. Please note that the Trust does not technically satisfy disclosure benchmark 2 in ASIC’s Regulatory Guide 240 as some reports are not available at the Feeder Fund and/or Master Fund level. The Trust is not a disclosing entity. If the Trust becomes a disclosing entity, the Trust will be subject to regular reporting and disclosure obligations under the Corporations Act. Copies of documents issued by the Trust disclosing information that may have a material effect on the price or value of units in the Trust to unit holders can be obtained on request by emailing [email protected] or by calling the Permal London Institutional Team on +44 20 7389 1300. These documents may include: • the most recent annual financial report; • any half yearly financial report lodged with ASIC after that financial report but before the date of this PDS; and • any continuous disclosure notices lodged with ASIC after that financial report but before the date of this PDS. You can contact the Permal London Institutional Team on +44 20 7389 1300 for updated information on performance, unit prices, Trust size and other general information about the Trust. If you are an Indirect Investor, contact your IDPS Operator.

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9) Fees and other costs The warning statement below is required by law to be displayed at the beginning of the ‘Fees and Other Costs’ section of this PDS. The example given in the warning statement does not relate to any investments described within this PDS.

DID YOU KNOW? Small differences in both investment performance and fees and costs can have a substantial impact on your long- term returns. For example, total annual fees and costs of 2% of your fund balance rather than 1% could reduce your final return by up to 20% over a 30 year period (for example, reduce it from $100 000 to $80 000). You should consider whether features such as superior investment performance or the provision of better member services justify higher fees and costs. You may be able to negotiate to pay lower contribution fees and management costs where applicable. Ask the fund or your financial adviser. TO FIND OUT MORE If you would like to find out more, or see the impact of the fees based on your own circumstances, the Australian Securities and Investments Commission (ASIC) website (www.moneysmart.gov.au) has a managed investment fee calculator to help you check out different fee options.

This table shows fees and other costs that you may be charged. These fees and costs may be deducted from your money, from the returns on your investment or from the Trust’s assets as a whole. Information about Taxation is set out in another part of this document. You should read all the information about fees and costs because it is important to understand their impact on your investment. For Indirect Investors, the fees listed in the ‘Fees and other costs’ section of this PDS are in addition to any other fees and charges charged by your IDPS Operator.

Type of fee or cost Amount How and when paid

Fees when your money moves in or out of the Fund

Establishment fee Nil There is no establishment fee payable when The fee to open your you set up your investment in the Trust investment

Contribution fee Nil There is no contribution fee payable when you The fee on each amount invest in the Trust contributed to your investment

Withdrawal fee Nil There is no withdrawal fee payable when you The fee on each amount you redeem investments from the Trust take out of your investment

Exit fee Nil There is no termination fee payable when you The fee to close your close your investment in the Trust investment

Management costs (The fees and costs for managing your investment*)

Management fees 1.20% p.a. of NAV of the relevant class These fees are calculated and accrued (Based on a constant investment of monthly based on the NAV of the class of $500,000 the amount in dollars is $6,000 units. The accrued fees are paid in arrears by per annum) deduction from the Trust assets at the end of each month. These fees reduce the NAV of the class and are reflected in the unit price.

Performance Fees**

Class A*** 10% Performance Fee of the If payable, the Performance Fee is recovered outperformance of the UBSA 90 Day from investors by the Investment Manager Bank Bill Index plus management costs directly. The Performance Fee will not be of the Class A unit holder (excluding the deducted from the assets of the Trust. 32

Performance Fee). Generally, if payable, the Performance Fee will be paid by the unit holder annually in arrears to the Investment Manager at the end of each 12 month period ending 30 June for the Trust. Refer to ‘Performance Fees’ under the heading ‘Additional Explanation of Fees and Costs’.

Class B 10% Performance Fee of the The Performance Fee (if any) is calculated and outperformance of the UBSA 90 Day accrued in the unit price for Class B units on a Bank Bill Index plus management costs monthly basis and paid from the assets of the of Class B (excluding the Performance Trust annually in arrears. Fee).

Service fees

Investment switching fee Nil Nil There is no switching fee payable when you The fee for changing switch units between Class A and Class B of investment options the Trust.

* This fee can be negotiated. See “Differential fees” below. Until further notice, the management costs (excluding Performance Fees) are capped, except for extraordinary expenses. If the total management costs (excluding Performance Fees) exceed the cap, PIMS will reimburse the amount of the excess costs to the Trust unless the excess is due to an extraordinary expense. ** Please note that no Performance Fees have been included in the management fee calculation above. It is not possible to provide a meaningful estimate of the Performance Fee payable in any given Performance Fee period, as we cannot accurately forecast performance of the Trust against the performance hurdle rate. *** The performance fee rate of 10% for Class A units is exclusive of GST. The actual method for calculating the performance fee will be set out in an agreement between the Investment Manager and each Class A unit holder.” Additional Explanation of Fees and Costs

What do the The management costs of the Trust consist of the management fees and the Performance Fees. The management management fees include the Responsible Entity fees, investment management fees, custodian fees, costs pay administration fees and other expenses. for? As further outlined in the Performance Fees section below, the Performance Fees for Class A if payable are recoverable by the Investment Manager directly from each Class A unit holder outside of the Trust. The Performance Fee for Class B is accrued in the unit price for Class B units on a monthly basis and paid from the assets of the Class B units annually in arrears.

IDPS For Indirect Investors, the fees listed in the ‘Fees and Other Costs’ section of this PDS are in addition to any other fees and charges by your IDPS Operator.

Buy/Sell The Buy/Sell Spread reflects the estimated costs incurred in buying or selling assets of the Trust when Spread investors invest in or withdraw from the Trust. The Buy/Sell Spread is an additional cost to the investor but is incorporated into the Application Price and Withdrawal Price of the units in the Trust. The Buy/Sell Spread is paid into the Trust and not paid to EQT, the Investment Manager or the Underlying Investment Manager. There is currently no Buy/Sell Spread applied to the Trust.

Alternative As a member of the Financial Services Council, we maintain an Alternate Forms of Remuneration Register. forms of The Register, which you can review by contacting us, outlines some alternative forms of remuneration that remuneration we may pay to or receive from AFS licensees, fund managers or representatives (if any is paid or received at all in relation to the Trust).

Differential The Responsible Entity or the Investment Manager may from time to time negotiate a different fee fees arrangement (by way of a rebate or waiver of fees) with investors who are Wholesale Clients in Australia or Wholesale Investors in New Zealand.

Performance Class A Fees The Investment Manager is entitled to receive a Performance Fee in respect of Class A units. This is calculated on a unit holder-by-unit holder basis, in an amount equal to 10% of the outperformance of the UBSA 90 Day Bank Bill Index plus management fees (“performance hurdle rate”) relating to the Class A unit holder. The Performance Fee in respect of Class A units is to be paid directly by the investor to the Investment Manager. The Performance Fee is not recovered by the Responsible Entity from the assets of the Trust and is not reflected in the Class A unit price. Generally, if payable, the Performance Fee will be recovered by the 33

Investment Manager from each Class A unit holder annually in arrears at the end of each 12 month period ending on 30 June. Generally, the Performance Fee will be calculated on a monthly basis by reference to whether the performance of Class A units is in excess of the UBSA 90 Day Bank Bill Index plus management fees. The performance fee rate of 10% for Class A units is exclusive of GST. The actual method for calculating the performance fee will be set out in an agreement between the Investment Manager and each Class A unit holder. The Performance Fee payable in respect of Class A is subject to a “high-water mark”. If the unit price decreases in any performance period and subsequently increases, there will not be a Performance Fee due to the Investment Manager until such decrease (the “Loss Carryover”) has been fully offset by the subsequent increase. If units are redeemed at a time when the Class A unit price has not reached the high-water mark (its prior high Net Asset Value), the amount of the Loss Carryover that must be offset before a Performance Fee can be made will be reduced in proportion to such withdrawal. The Performance Fee to be made in any performance period is not affected by a decrease in the Class A unit price in a subsequent performance period. If a Class A unit holder redeems units as of any date other than the end of a performance period, the Performance Fee will be calculated with respect to the amount redeemed for the portion of the applicable performance period ending on the withdrawal day (the effective date of withdrawal). Class A: Working Example Performance hurdle rate: UBSA 90 Day Bank Bill Index + management fees relating to the unit holder.

Performance Assume the following; fee example - Class A’s gross performance for the Performance Fee Period is 5% - Class A’s performance hurdle rate is 3% over the same period - The high-water mark is set at zero - Class A NAV is $500,000 The outperformance (gross performance above the hurdle rate) is 2% (5% - 3%) for the Performance Fee Period. The Performance Fee is calculated as 10% x 2% x $500,000 = $1,000 for that Performance Fee Period. If the performance is lower than the performance hurdle rate, a Performance Fee is not charged. Any underperformance during the Performance Fee Period must be recouped before the Investment Manager becomes entitled to a Performance Fee. Please note that this example is used for illustrative purposes only and does not forecast future performance.

Class B At the end of each financial year ending 30 June (“Performance Fee Period”), the Investment Manager is entitled to receive a Performance Fee which is paid as an expense in respect of Class B units and deducted from the assets of the Trust. The Performance Fee is an amount equal to 10% of the outperformance of the UBSA 90 Day Bank Bill Index plus management fees (“performance hurdle rate”) relating to Class B units. The Performance Fee is calculated and accrued monthly, and, if positive, is reflected in the unit price for Class B units. Any underperformance of Class B units against the performance hurdle rate will have the effect of reducing any Performance Fee accrued in that Performance Fee Period. Any underperformance against the performance hurdle rate at the end of a Performance Fee Period is carried forward and the underperformance must be recouped before Performance Fees will accrue in respect of Class B units. Class B: Working Example Performance hurdle rate: UBSA 90 Day Bank Bill Index + management fees relating to Class B.

Performance Assume the following; fee example - Class B’s performance (gross of the management fees of the class) for a Performance Fee Period is 5% - Class B’s performance hurdle rate is 3% over the same period - The high-water mark is set at zero - Class B’s NAV is $500,000 The outperformance is 2% (5% - 3%) for the period. The Performance Fee is calculated 34

as 10% x 2% x $500,000 = $1,000 for that Performance Fee Period. If Class B’s performance is below the performance hurdle rate, a Performance Fee is not charged. Any underperformance during the performance period must be recouped before the Investment Manager becomes entitled to a Performance Fee. Please note that the example is used for illustrative purposes only and does not forecast future performance. EQT does not consider there is any reasonable basis on which it may estimate Performance Fees for the Trust. To estimate Performance Fees would involve speculation about the returns of the Trust against the UBSA 90 Day Bank Bill Index. EQT therefore considers that to estimate Performance Fees may potentially be misleading.

Payments to Subject to the law, annual payments may be paid to some IDPS Operators because they offer the Trust on IDPS their investment menus. Product access is paid by PIMS out of the management fees and is not an operators additional cost to the investor. If the payment of annual fees to IDPS Operators is limited or prohibited by the law, EQT will ensure the payment of such fees is reduced or ceased.

Transaction All government taxes such as stamp duty and GST will be deducted from the Trust as appropriate. Relevant and other tax information is provided in the ‘Taxation’ section. Reduced Input Tax Credits (“RITCs”) will also be costs claimed by the Trust where appropriate to reduce the cost of GST to the Trust and investors. The Trust may incur transaction costs. These transaction costs include brokerage, settlement costs (including custody costs), clearing costs and stamp duty. Transaction costs include costs incurred by the Trust when investors invest in or withdraw from the Trust and when transacting to meet investment objectives. These costs are an additional cost to the investor but are generally reflected in the unit price of each class of units (through the Buy/Sell Spread, if any) and not charged separately to the investor. Transaction costs which are not recovered through the Buy/Sell Spread are deducted from the assets of the Trust from time to time and as they are incurred are reflected in the unit prices. The exact amount of transaction costs is dependent on a number of different variables, including the level of trading undertaken by the Trust. As such, EQT is unable to provide a meaningful amount or percentage of the estimated transaction costs for the Trust.

Can the fees Yes, all fees can change without investor consent up to the maximum amount allowed under the change? Constitution. In most circumstances the Constitution defines the maximum fees that can be charged for fees described in this PDS. We have the right to recover all proper and reasonable expenses incurred in managing the Trust and as such these expenses may increase or decrease accordingly. We will generally provide investors with at least 30 days’ notice of any proposed change to the management fees. Expense recoveries and Buy/Sell Spreads may change without notice, for example, when it is necessary to protect the interests of existing members and if permitted by law.

GST All fees and other costs quoted include GST less any reduced input tax credits.

Example of annual fees and costs These tables give an example of how the fees and costs for the Trust can affect your investment over a one year period. You can use this table to compare this product against other managed investment products.

Example – Permal Absolute BALANCE OF $500,000 WITH A CONTRIBUTION OF $50,000 DURING THE YEAR Return Trust

Contribution Fees Nil For every $50,000 you put in, you will be charged $0.

Plus 1.20% And, for every $500,000 you have in the Trust you will be charged $6,000 each year Management Costs (excluding the Performance Fee).

Equals If you had an investment of $500,000 at the beginning of the year and you put in an Cost of Trust additional $50,000 during that year, you would be charged fees from: $6,000 * What it costs you will depend on the fees you negotiate.

* These examples assume a constant balance so the management costs on the additional contribution are not taken into account. Additional fees may apply. Please note that this example does not capture all the fees and costs that may apply to you such as the Buy/Sell Spread (which is currently nil). This example assumes the additional $50,000 investment is made at the beginning of the year and the investment balance is constant at $500,000 during the year. This example does not include an estimate for the Performance Fee and therefore no differentiation is made between Class A and Class B. It is not possible to

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provide a meaningful estimate of the Performance Fee payable in any given Performance Fee period, as we cannot accurately forecast performance of the Trust against the performance hurdle rate. ASIC provides a fees calculator on its website www.moneysmart.gov.au, which you could use to calculate the effects of fees and costs on your investment in the Trust.

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10) Taxation The following information summarises some of the Australian taxation issues you may wish to consider before making an investment in the Trust and assumes that you hold your investment in the Trust on capital account and are not considered to be carrying on a business of investing, trading in investments or investing for the purpose of profit making by sale. The information should be used as a guide only and does not constitute professional tax advice as individual circumstances may differ. A number of tax reform measures are currently under review by the Australian Government, including a proposed new regime for the taxation of managed investment trusts, deregulation of the TOFA regime, and various measures in the 2015/16 Federal Budget. These reforms may impact on the tax position of the Trust and its investors. Accordingly, it is recommended that investors seek their own professional advice, specific to their own circumstances, of the taxation implications of investing in the Trust. Australian Taxation Treatment of the Trust General The Trust is an Australian resident trust estate for Australian tax purposes. Therefore, the Trust is required to determine its net income (taxable income) for the year of income. On the basis that investors are presently entitled to all of the Trust’s distributable income, (which is the Responsible Entity's intention) and the Trust is not a public trading trust, the Trust should be treated as a flow-through trust for tax purposes. This means that investors should be taxed on their share of the Trust’s net taxable income, and the Trust should not be subject to Australian income tax. In the case where the Trust makes a loss for Australian tax purposes, the Trust cannot distribute the tax loss to investors. However, the tax loss may be carried forward by the Trust for offset against taxable income of the Trust in subsequent years, subject to the operation of the trust loss rules.

Deemed Capital Gains Tax (CGT) election Eligible managed investment trusts (MITs) may make an irrevocable election to apply a deemed capital account treatment for gains and losses on disposal of certain eligible investments (including equities and units in other trusts but excluding Derivatives and foreign exchange contracts). The Trust did not make the election for deemed capital account treatment. As such, the Trust holds its eligible investments on revenue account. On this basis, the realised gains of the Trust will be income or revenue gains and not capital gains, with no entitlement to the capital gains tax (“CGT”) discount concession. Realised losses will be revenue losses which, subject to the Trust meeting certain conditions, will be able to be claimed as a deduction against any assessable income of the Trust.

Controlled Foreign Company (CFC) Provisions There are certain tax rules (i.e. the CFC provisions) which may result in assessable income arising in the Trust in relation to the Trust’s investment in the Feeder Fund, where certain control thresholds are met. The Trust’s investment strategy is expected to minimise the impact of the CFC regime on the Trust. Nevertheless, the taxable income of the Trust may include gains in respect of this investment even though such gains are unrealised.

Taxation of Financial Arrangements (TOFA) The TOFA rules may apply to certain “financial arrangements” held by the Fund. Broadly, the TOFA regime seeks to recognise ”sufficiently certain” returns from certain financial arrangements on an accruals basis for tax purposes rather than on a realisation basis. Where returns from Derivative instruments are not “sufficiently certain” they will continue to be recognised on a realisation basis, unless specific tax timing elections are made. TOFA applies to the Trust. The Custodian, Administrator and the Investment Manager of the Trust assist the Responsible Entity with ongoing compliance with the TOFA rules. Taxation Reform The tax information included in this PDS is based on the taxation legislation and administrative practice as at the issue date of this PDS, together with proposed changes to the taxation legislation as announced by the Government. However, the Australian tax system is in a continuing state of reform, and based on the Government’s reform agenda, it is likely to escalate rather than diminish. Any reform of a tax system creates uncertainty as to the full extent of announced reforms, or uncertainty as to the meaning of new law that is enacted pending interpretation through the judicial process. Current reforms in progress include the new tax system for MITs, a TOFA deregulation review, and measures in the 2015/16 Federal Budget which may impact on the tax position of the Fund and its investors. Accordingly, it will be necessary to closely monitor the progress of these reforms, and investors should seek their own professional advice, specific to their own circumstances, of the taxation implications of investing in the Fund. OECD CRS The Organisation for Economic Co-operation and Development Common Reporting Standard (the OECD CRS) for the automatic exchange of information is a single global standard for the collection and reporting of information by Financial Institutions (as defined for CRS purposes) on non-residents. The Australian Government has announced its intention to implement the CRS in a staged process from 1 January 2017. EQT will continue to monitor developments in this regard. Tax File Number (TFN) and Australian Business Number (ABN)

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It is not compulsory for an investor to quote their TFN or ABN. If an investor is making this investment in the course of a business or enterprise, the investor may quote an ABN instead of a TFN. Failure by an investor to quote an ABN or TFN or claim an exemption may cause the Responsible Entity to withhold tax at the top marginal rate, plus the Medicare Levy, on gross payments including distributions of income to the investor. The investor may be able to claim a credit in their tax return for any TFN or ABN tax withheld. By quoting their TFN or ABN, the investor authorises EQT to apply it in respect of all the investor’s investments with EQT. If the investor does not want to quote their TFN or ABN for some investments, EQT should be advised. Australian Taxation of Australian Resident Investors Distributions Each Australian resident investor will be subject to taxation on a share of the net taxable income of the Trust in proportion to their share of the distributable income of the Trust. Generally, an Australian resident investor’s entitlement (share) of the net income of a Trust for a year of income, including amounts that are received in a subsequent year of income or which are reinvested, forms part of their assessable income for that year. The tax consequences for investors of receiving distributions from the Trust depend on the components of the distributable income to which investors have become entitled. Investors who become entitled to a distribution from the Trust in respect of a financial year will receive an annual tax statement detailing all relevant taxation information concerning distributions, including any Foreign Income Tax Offset (‘FITO’s’) entitlements and returns of capital. Based on the investment strategy of the Trust, gains derived by the Trust are likely to be treated as ordinary income, rather than capital gains. The Fund is expected to predominantly derive foreign source income that might be subject to foreign tax. Australian resident investors should include their share of both the foreign income and the amount of any foreign tax withheld in their assessable income. In such circumstances, investors may be entitled to a FITO for the foreign tax paid, against the Australian tax payable on the foreign source income. To the extent the investors do not have sufficient overall foreign source income to utilise all of the FITOs relevant to a particular year of income, the excess FITOs cannot be carried forward to a future income year. An investor may receive their share of the net income of the Fund through distributions made during the year or where they have made a large withdrawal from the Fund, in which case their withdrawal proceeds may include a component of distributable income. In addition, because Australian investors can move into and out of the Fund at different points in time, there is the risk that taxation liabilities in respect of gains that have benefitted past investors may have to be met by subsequent investors. Under current practice, distributions of non-assessable amounts are generally not subject to tax in the hands of passive investors. Broadly, the receipt of certain non-assessable amounts will generally reduce the cost base of the Australian resident investor's units in the Trust for CGT purposes. This results in either an increased capital gain, or a reduced capital loss, upon the subsequent disposal of the investor's units in the Trust. However, in certain circumstances, such amounts may be assessable to an investor rather than giving rise to a CGT cost base adjustment. Investors should have regard to the ATO’s views expressed in ATOID 2011/58 and any further ATO pronouncements on this issue, and seek professional advice if necessary. Disposal of Units by Australian Resident Investors If an Australian resident investor transfers or redeems their units in the Trust, this will constitute a disposal for tax purposes. Where an investor holds their units in the Trust on capital account, a capital gain or loss on the disposal may arise and each investor should calculate their capital gain or loss according to their own particular facts and circumstances. As noted above, proceeds on disposal may include a component of distributable income. In calculating the taxable amount of a capital gain, a discount of 50% for individuals and trusts or 33 1/3% for complying Australian superannuation funds may be allowed where the units in the Trust have been held for more than 12 months. No CGT discount is available to corporate investors. Any capital losses arising from the disposal of the investment may be used to offset other capital gains the investor may have derived. Net capital losses may be carried forward for offset against capital gains of subsequent years but may not be offset against ordinary income. The discount capital gains concession may be denied in certain circumstances where an investor (together with associates) holds 10% or more of the issued units of the Trust, the Trust has less than 300 beneficiaries and other requirements are met. Investors who together with associates are likely to hold more than 10% of the units in the Trust should seek advice on this issue. Australian Taxation of Non-Resident Investors Tax on Income The Trust expects to derive predominantly foreign source income which would generally not be subject to Australian withholding tax when distributed by the Trust to non-resident investors. Australian withholding tax may be withheld from distributions of Australian source income and gains paid to a non-resident investor. The various components of the net income of the Trust which will be regarded as having an Australian source may include Australian sourced interest and Australian sourced gains.

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We recommend that non-resident investors seek independent tax advice before investing, taking into account their particular circumstances and the provisions of any relevant Double Taxation Agreement/ Exchange of Information Agreement (EOI) between Australia and their country of residence. Disposal of Units by Non-Resident Investors Based on the Trust’s investment profile, generally non-resident investors holding their units on capital account should not be subject to Australian capital gains tax on the disposal of units in the Trust unless the units were capital assets held by the investor in carrying on a business through a permanent establishment in Australia. Australian tax may apply in certain circumstances if the non-resident holds their units on revenue account. We recommend that non-resident investors seek independent tax advice in relation to the tax consequences of the disposal of their units.

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11) Other important information

Consents PIMS has given and, as of the date of this PDS, has not withdrawn, its written consent to be named in this PDS as the Investment Manager of the Trust; and to the inclusion of the statements made about it or the Trust which are attributed to it in Sections 2, 3, 4, 5, 6 ,7, 8 and 9 of this PDS, in the form and context in which they appear. PIMS has not otherwise been involved in the preparation of this PDS and has not caused or otherwise authorised the issue of this PDS. PIMS and its affiliates, employees and officers do not accept any responsibility arising in any way for errors or omissions from this PDS, other than in relation to the statements for which it has provided its consent.

The BNP Paribas Securities Services has been appointed as the Trust’s Custodian and Administrator to Administrator perform certain administrative, accounting, registrar and transfer agency services for the Trust. BNP Paribas Securities Services has not otherwise been involved in the preparation of this PDS and has not caused or otherwise authorised the issue of this PDS. BNP Paribas Securities Services and its employees and officers do not accept any responsibility arising in any way for errors or omissions from this PDS.

Non-listing of The units of the Trust are not listed on any stock exchange and no application will be made to list the units units of the Trust on any stock exchange.

Termination of The Responsible Entity may resolve at any time to terminate and liquidate the Trust (if it provides the Trust investors with notice) in accordance with the Constitution and the Corporations Act. Upon termination and after conversion of the assets of the Trust into cash and payment of, or provision for, all costs, expenses and liabilities (actual and anticipated), the net proceeds will be distributed pro-rata among all investors according to the aggregate of the Withdrawal Price for each of the units in the class of units they hold in the Trust.

Our legal EQT’s responsibilities and obligations, as the responsible entity of the Trust, are governed by the relationship Constitution of the Trust, as well as the Corporations Act and general trust law. The Constitution of the with you Trust contains a number of provisions relating to the rights, terms, conditions and obligations imposed on both EQT, as the responsible entity of the Trust, and investors. EQT may amend the Constitution if it considers that the amendment will not adversely affect investor’s rights. Otherwise the Constitution may be amended by way of a special resolution of investors. To the extent that any contract or obligation arises in connection with the acceptance by EQT of an application or reliance on this PDS by investors, any amendment to the Constitution may vary or cancel that contract or obligation. Further, that contract or obligation may be varied or cancelled by a deed executed by EQT with the approval of a special resolution of investors, or without that approval if EQT considers the variation or cancellation will not materially and adversely affect investors’ rights A copy of the Constitution of the Trust is available, free of charge, on request from EQT.

Compliance EQT has prepared and lodged a compliance plan for the Trust with ASIC. The compliance plan describes Plan the procedures used by EQT to comply with the Corporations Act and the Constitution of the Trust. Each year the compliance plan for the Trust is audited and the audit report is lodged with ASIC.

Unit pricing EQT has developed a formal written policy in relation to the guidelines and relevant factors taken into discretions account when exercising any discretion in calculating unit prices (including determining the value of policy assets and liabilities). A copy of the policy and, where applicable and to the extent required, any other relevant documents in relation to the policy (such as records of any discretions which are outside the scope of, or inconsistent with, the unit pricing policy) will be made available to investors free of charge on request.

Indemnity EQT, as the responsible entity of the Trust, is indemnified out of the Trust against all liabilities incurred by it in performing or exercising any of its powers or duties in relation to the Trust. To the extent permitted by the Corporations Act, this indemnity includes any liability incurred as a result of any act or omission of a delegate or agent appointed by the Responsible Entity. EQT may retain and pay out any monies in its hands all sums necessary to affect such an indemnity.

Privacy When you provide instructions to EQT or its related bodies corporate or agents, EQT will be collecting statement personal information about you. You must ensure that all personal information which you provide to EQT is true and correct in every detail, and should your personal details change it is your responsibility to ensure that you promptly advise EQT of the changes in writing. This information is needed to facilitate, administer and manage your investment, and to comply with Australian taxation laws and other laws and regulations. Otherwise, your application may not be processed or EQT and its delegates will not be able to administer or manage your investment.

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The information that you provide may be disclosed to certain organisations, including but not limited to: . the ATO, AUSTRAC and other government or regulatory bodies; . your broker, financial adviser or adviser dealer group, their service providers and/or any joint holder of an investment; . organisations involved in providing, administering and managing the Trust, the administrator, custodian, auditors, or those that provide mailing or printing services; and . those where you have consented to the disclosure and as required by law. In some cases, the organisations to which EQT and its agents disclose your information may be located outside Australia (including but not limited to France, Guernsey, Hong Kong, India, Ireland, Luxembourg, New Zealand, Poland, Portugal, Singapore, the United Kingdom and the United States of America), though it is not practicable to list all of the countries in which such recipients are likely to be located. EQT may from time to time provide you with direct marketing and/or educational material about products and services EQT believes may be of interest to you. Should you not wish to receive this information from EQT (including by email or electronic communication), you have the right to “opt out” by advising EQT by telephoning + 613 8623 5000, or alternatively by contacting us via email at [email protected]. Subject to some exceptions allowed by law, you can ask for access to your personal information. We will give you reasons if we deny you access to this information. EQT’s Privacy Statement outlines how you can request to access and seek the correction of your personal information. EQT’s Privacy Statement is available at www.eqt.com.au and can be obtained by contacting EQT’s Privacy Officer on +613 8623 5000, or alternatively by contacting us via email at [email protected]. EQT’s Privacy Statement contains information about how you can make a complaint if you think EQT has breached your privacy and about how EQT will deal with your complaint. You should refer to EQT’s Privacy Statement for more detail about the personal information that EQT collects and how EQT collects, uses and discloses your personal information.

Anti-Money Australia’s AML/CTF laws require EQT to adopt and maintain an Anti-Money Laundering and Counter Laundering Terrorism Financing program. A fundamental part of the AML/CTF program is that EQT knows certain and Counter information about investors in the Trust. Terrorism Financing To meet this legal requirement, we need to collect certain identification information and documentation (AML/CTF) (“KYC Documents”) from new investors. Existing investors may also be asked to provide KYC Documents as part of a re-identification process to comply with the AML/CTF laws. Processing of applications or redemptions will be delayed or refused if investors do not provide the KYC Documents when requested. Under the AML/CTF laws, EQT may be required to submit reports to AUSTRAC. This may include the disclosure of your personal information. EQT may not be able to tell you when this occurs and, as a result, AUSTRAC may require EQT to deny you (on a temporary or permanent basis) access to your investment. This could result in loss of the capital invested, or you may experience significant delays when you wish to transact on your investment. Neither EQT nor the Investment Manager for the Trust are liable for any loss you may suffer because of compliance with the AML/CTF laws.

FATCA The Responsible Entity on behalf of the Trust is required to comply with the US Foreign Account Tax Compliance Act (“FATCA”). To comply with these requirements, the Responsible Entity will collect certain additional information from you and will disclose such information to the ATO or the US Internal Revenue Service, where required.

Information on Information regarding the underlying investments of the Trust will be provided to a member on request, to underlying the extent EQT is satisfied that such information is required to enable the member to comply with its investments statutory reporting obligations. This information will be supplied within a reasonable timeframe having regard to these obligations.

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Glossary of important terms

Absolute An Absolute Return is the actual amount of money made by an investment; the actual gain as a Return percentage of the amount invested. In contrast, a relative return is adjusted to show performance compared to a benchmark.

Application The Application Form used by investors who wish to subscribe for units directly in the Trust (other than Form indirectly through an IDPS Operator) and attached to this PDS.

Application At least 10 Business Days prior to the last Business Day of the month. Notice Period

ASIC Australian Securities and Investments Commission.

Application The Net Asset Value of the relevant class of units in the Trust divided by the number of units on issue in Price the class, plus the Buy Spread.

Asset Class A category of financial assets. The major asset classes are shares, property, fixed interest securities and cash.

Business Day A day other than a Saturday or Sunday on which banks are open for general banking business in Sydney.

Buy/Sell The difference between the Application Price and Withdrawal Price of units in a Trust, which reflects the Spread estimated transaction costs associated with buying and selling the assets of a Trust, when investors invest in or withdraw from a Trust.

Class A class of units in the Trust (i.e. either Class A or Class B)

Constitution The Constitution of the Trust describes the rights, responsibilities and beneficial interests of both investors and the Responsible Entity in relation to the Trust, as amended from time to time

Correlation A standardised measure of the relative movement between two variables, such as the prices of two different securities. The level of Correlation between two variables is measured on a scale of -1 to +1. If two variables move up or down together, they are positively correlated. If they tend to move in opposite directions, they are negatively correlated.

Corporations The Corporations Act 2001 (Cth) and Corporations Regulations 2001 (Cth), as amended from time to Act time.

Custodian and BNP Paribas Fund Services Australasia Pty Ltd trading as BNP Paribas Securities Services. Administrator

Derivative A financial contract that derives its value from an underlying security, liability or Index. Derivatives come in many varieties, including forwards, futures, Options and swaps.

Feeder Fund Permal Absolute Return Fund

Forward Agreement that obligates an investor to deliver a specified quantity of one currency in return for a Foreign specified amount of another currency at a future point in time. Exchange Contracts

GST Goods and Services Tax.

IDPS Investor directed portfolio service. An IDPS is generally the vehicle through which an investor purchases a range of underlying investment options from numerous investment managers, with the IDPS Operator providing the investor with consolidated and streamlined transaction statements and other reporting.

IDPS Operator An entity that operates and offers an IDPS.

Indirect A person who invests indirectly in units in a fund through an IDPS. Investor

Investment Permal Investment Management Services Limited, organised under the laws of England and Wales and Manager is a member of the Permal Group, which is comprised of an international group of companies held by Permal Group Ltd., a subsidiary of Legg Mason, Inc.

Leverage The use of borrowings, various financial instruments and/or borrowed securities to increase the potential return of an investment. When Leverage is used by an underlying fund, the exposure of the fund to investments exceeds the net asset value of the fund.

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LIBOR London Interbank Offered Rate

Long Position Long Position means the buying of a security, commodity, or currency, with the expectation that the asset will rise in value.

Master Fund Permal Absolute Return Master Fund Limited

Net Asset The value of assets apportioned to a class of units in the Trust, less the value of the liabilities apportioned Value (‘NAV’) to that class.

Option An agreement which conveys the right to the holder to buy (receive) or sell (deliver) a specific security at a stipulated price and within a stated period of time.

Performance 10% of the outperformance of the UBSA 90 Day Bank Bill Index plus management fees of the unit holder Fee (for Class (excluding the Performance Fee). A units)

Performance 10% of the outperformance of the UBSA 90 Day Bank Bill Index plus management fees of Class B Fee (for Class (excluding the Performance Fee). B units)

Retail Client Persons or entities defined as retail clients under section 761G of the Corporations Act.

Responsible Equity Trustees Limited ABN 46 004 031 298, AFSL 240975. Entity or EQT

RITC Reduced Input Tax Credit. EQT will apply for reduced input tax credits on behalf of the Trust, where applicable, to reduce the GST cost to the Trust.

Short Position Short Position means the sale of a security, commodity, or currency (which is not owned, but generally borrowed in the market for the purpose of meeting obligations under the sale).

Sub- HSBC Securities Services (Ireland) Limited Administrator

Sub-Custodian HSBC Institutional Trust Services (Ireland) Limited

Swaps An interest rate, currency or equity exchange transaction involving two parties.

Synthetic Another term for Derivatives. Instruments

Trust Permal Absolute Return Trust

Underlying HSBC Securities Services (Guernsey) Limited Custodian and Administrator

US Person A person so classified under securities or tax law in the United States of America (“US”) including, in broad terms, the following persons: (a) any citizen of, or natural person resident in, the US, its territories or possessions; or (b) any corporation or partnership organised or incorporated under any laws of or in the US or of any other jurisdiction if formed by a US Person (other than by accredited investors who are not natural persons, estates or trusts) principally for the purpose of investing in securities not registered under the US Securities Act of 1933; or (c) any agency or branch of a foreign entity located in the US; or (d) a pension plan primarily for US employees of a US Person; or (e) a US collective investment vehicle unless not offered to US Persons; or (f) any estate of which an executor or administrator is a US Person (unless an executor or administrator of the estate who is not a US Person has sole or substantial investment discretion over the assets of the estate and such estate is governed by non-US law) and all the estate income is non-US income not liable to US income tax; or (g) any trust of which any trustee is a US Person (unless a trustee who is a professional fiduciary is a US Person and a trustee who is not a US Person has sole or substantial investment discretion over the assets of the trust and no beneficiary (or settlor, if the trust is revocable) of the trust is a US Person); or (h) any discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary for the benefit or account of a US Person; or (i) any non-discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary organised, incorporated or (if an individual) resident in the US for the benefit or account 43

of a US Person.

Wholesale Persons or entities defined as wholesale clients under section 761G of the Corporations Act. Client

Wholesale In the case of a New Zealand investor, has the meaning given in clause 3(2) of Schedule 1 of the Investor Financial Markets Conduct Act 2013 (New Zealand).

Valuation Day The last Business Day of the month in which you wish to withdraw.

Volatility The extent of fluctuation in share prices, exchange rates, interest rates, etc. The higher the volatility, the less certain an investor is of return, and hence volatility is one measure of risk.

Withdrawal No less than 99 calendar days prior to the last Business Day of the month in which the investors wishes Notice Period to withdraw.

Withdrawal The Net Asset Value of the relevant class of units in the Trust divided by the number of units on issue in Price the class, less the Sell Spread.

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Permal Absolute Return Trust

Application Form – Class A and Class B Units . If completing by hand, use a black or blue pen and print within the boxes in BLOCK LETTERS . Use ticks in boxes where applicable . The applicant must complete, print and sign this form . Keep a photocopy of your completed Application Form for your records . Please ensure all relevant sections are complete before submitting this form

This application form is part of the Product Disclosure Statement dated 5 August 2015 ('the PDS') relating to units in the Permal Absolute Return Trust (‘the Trust’) issued by Equity Trustees Limited (“EQT”) (ABN 46 004 031 298 AFSL 240975). • The PDS contains information about investing in the Trust. You should read the PDS before applying for units in the Trust. • A person who gives another person access to the Application Form must at the same time and by the same means give the other person access to the PDS. • EQT will provide you with a copy of the PDS and the Application Form on request without charge (If you make an error while completing your Application Form, do not use correction fluid. Cross out your mistakes and initial your changes). US Persons: This offer is not open to any US Person.

Section 1 – Introduction

Do you have an existing investment in the Permal Absolute Return Trust? YES – my details are:

Account Number

Account Name Contact Telephone Number (Including Country Code) Now go to Section 7.

NO – only complete the sections relevant to you, as indicated below:

Identification Requirement Select One Account Type Sections to Complete Groups to Complete

Individual(s) Section 1, 2, 7, 8 & 9 Group A

Trust/Superannuation fund with Section 1, 2, 3, 7, 8 & 9 Group B or C, & D an individual trustee Trust/Superannuation fund with Section 1, 3, 4, 7, 8 & 9 Group B or C, & D a corporate trustee

Company Section 1, 4, 7, 8 & 9 Group E or F

And complete these if you would like to appoint a power of attorney, agent or financial adviser

Power of attorney or agent Section 5 Group G

Financial adviser Section 6 Group G

Contacting the Fund

Investment Manager: Permal Investment Management Services Limited (“PIMS”) Ph. +44 20 7389 1300

Post your completed BNP Securities Services - Unit Registry Team application to: Attention - Permal Absolute Return Trust PO Box R209 Royal Exchange, NSW 1225

Permal Absolute Return Trust Application Form – Issued 5 August 2015 Page 1 of 17

AML/Identification Requirements The AML/CTF Act requires the Responsible Entity to adopt and maintain an anti-money laundering and counter-terrorism financing ('AML/CTF') compliance program. The AML/CTF compliance program includes ongoing customer due diligence, which may require the Responsible Entity to collect further information. • Identification documentation provided must be in the name of the Applicant. • Non-English language documents must be translated by an accredited translator. • Applications made without providing this information cannot be processed until all the necessary information has been provided. • If you are unable to provide the identification documents described please call EQT on 1300 555 378. These documents should be provided as a CERTIFIED COPY of the original. GROUP A – Individuals

Each individual investor, individual trustee, partner or individual agent must provide one of the following: A current Australian driver’s licence (or foreign equivalent) that includes a photo An Australian passport A current passport (or similar) issued by a foreign government or the United Nations (UN) (or an agency of the UN) that provides your signature An identity card issued by a State or Territory Government that includes a photo

GROUP B – Registered Managed Investment Scheme, Regulated Superannuation Fund (including self- managed) or Government Superannuation Fund Provide one of the following: A copy of the company search on the ATO database A copy of the company search of the relevant regulator’s website A copy or relevant extract of the legislation establishing the government superannuation fund sourced from a government website

GROUP C – Other Trusts Provide one of the following: A certified copy or certified extract of the Trust Deed Signed meeting minutes showing the full name of the trust Annual report or audited financial statements A certified copy of a notice issued by the ATO within the previous 12 months Group A verification requirements for each beneficial owner of the trust

GROUP D – Trustees If you are an Individual Trustee – please provide the identification documents listed under Group A If you are a Corporate Trustee – please provide the identification documents listed under Group E or F If you are a combination of both – please complete for one trustee from each investor type listed under Group A and E or F

GROUP E – Australian Companies Provide one of the following: A certified copy of the Certificate of Registration or Licence A copy of a company search on the ASIC database A copy of information regarding the company / trustee’s licence or other information held by the relevant Commonwealth, State or Territory regulatory body All of above must clearly show the company’s full name and type (i.e. public or private). Group A verification requirements for each beneficial owner (senior managing official and shareholder) listed in Section 4.4 of the application.

GROUP F – Non-Australian Companies Provide one of the following: A certified copy of the company’s Certificate of Registration or incorporation (issued by ASIC or equivalent in the domestic jurisdiction) showing the company’s registration number A certified copy of the company’s articles of association or constitution A copy of a company search on the ASIC database or relevant foreign registration body All of above must clearly show the company’s full name and type (i.e. public or private). Group A verification requirements for each beneficial owner (senior managing official and shareholder) listed in Section 4.4 of the application.

GROUP G – Agents If you are an Individual Agent – please provide the identification documents listed under Group A If you are a Corporate Agent – please provide the identification documents listed under Group E or F

Permal Absolute Return Trust Application Form – Issued 5 August 2015 Page 2 of 17 Important Information

Additional information required under the Anti-Money Laundering and Under the AML/CTF Act and FATCA, the Responsible Entity is Counter-Terrorism Financing Act 2006 and the Foreign Account Tax prohibited from processing your application until all of the Compliance Act. information and supporting documentation requested in this In accordance with the Anti-Money Laundering and Counter-Terrorism form has been received. In most cases, the information that you Financing Act 2006 (the ‘AML/CTF Act’) and the Foreign Account Tax provide in this form will satisfy the AML/CTF Act and FATCA. Compliance Act (the ‘FATCA’) the Responsible Entity is required to collect However, in some instances the Responsible Entity may additional information about you. The Responsible Entity may also ask you contact you to request further information. It may also be to provide certified copies of certain identification documents along with the necessary for the Responsible Entity to collect information Application Form. (including sensitive information) about you from third parties in order to meet its obligations under the AML/CTF Act and FATCA.

Declarations

When you complete this Application Form you make the following . I/We acknowledge that I am/we are 18 years of age or declarations: over and I am/we are eligible to hold units in the Trust in . I/We have read the PDS to which this Application Form applies which I/we have chosen to invest. and agree to be bound by the terms and conditions of the PDS . I/We acknowledge and agree that where the Responsible and the Constitution of the Trust in which I/we have chosen to Entity, in its sole discretion, determines that: invest. o I/We are ineligible to hold units in a Trust or have . I/We acknowledge that neither EQT nor PIMS is responsible for provided misleading information in my/our the delays in receipt of monies caused by the postal service or Application Form; or the applicant’s bank. o I/We owe any amounts to EQT, . If I/we have provided an email address, I/we consent to receive then I/we appoint the Responsible Entity as my/our agent ongoing investor information including PDS information, to submit a withdrawal request on my/our behalf in respect confirmations of transactions and additional information as of all or part of my/our units, as the case requires, in the applicable via email. Trust. . I/We hereby consent to the transfer of any of my/our personal . I/We agree to provide further information or personal information to external third parties including but not limited to details to the Responsible Entity if required to meet its fund administrators, fund investment manager(s) and related obligations under anti-money laundering and counter- bodies corporate who are located outside Australia for the terrorism legislation and acknowledge that processing of purpose of administering the products and services which I/we my/our application may be delayed and will be processed have engaged the services of EQT or its related bodies at the unit price applicable for the Business Day as at corporate and to foreign government agencies (if necessary). which all required information has been received and . I/We hereby acknowledge and agree that EQT have outlined in verified. the PDS provided to me/us how and where I/we can obtain a . I/We hereby declare that I/we are not a US Person as copy of the EQT Group Privacy Statement. defined in the PDS. . I/We hereby confirm that the personal information that I/we have . For Australian applicants - I/We acknowledge that I am provided to EQT is correct and current in every detail, and / we are a Wholesale Client (as defined in Section 761G should these details change, I/we shall promptly advise EQT in of the Corporations Act 2001 (Cth) and are therefore writing of the change(s). eligible to hold units in the Trust. . If I/we lodge a fax application request, I/we acknowledge and . For New Zealand applicants - I/We acknowledge and agree to release, discharge and agree to indemnify EQT and agree that: PIMS from and against any and all losses, liabilities, actions, o I/We have read the New Zealand Wholesale Investor proceedings, account claims and demands arising from any fax Fact Sheet for the Trust; application. o I am/we are a Wholesale Investor and am/are . I/We have received and accepted this offer in Australia or New therefore eligible to hold units in the Trust; and Zealand. o I/We have not: . I/We acknowledge that neither EQT nor PIMS guarantee the . Offered, sold, or transferred, and will not offer, repayment of capital or the performance of the Trust or any sell, or transfer, directly or indirectly, any units in particular rate of return from the Trust. the Trust; and . I/We acknowledge that an investment in the Trust is not a . granted, issued, or transferred, and will not grant, deposit with or liability of EQT or PIMS and is subject to issue, or transfer, any interests in or options over, investment risk including possible delays in repayment and loss directly or indirectly, any units in the Fund; and of income or capital invested. . distributed and will not distribute, directly or . If I/we have completed and lodged the relevant sections on indirectly, the PDS or any other offering materials authorised representatives/agents on the Application Form then or advertisement in relation to any offer of units in I/we agree to release, discharge and agree to indemnify EQT the Trust, and PIMS from and against any and all losses, liabilities, actions, in each case in New Zealand, other than to a person proceedings, account claims and demands arising from EQT who is a Wholesale Investor; and acting on the instructions of my/our authorised representatives, o I/We will notify EQT if I/we cease to be a Wholesale agents and/or nominees. Investor; and . By signing this Application Form, I/we acknowledge that I/we o I/We have separately provided a signed Wholesale have read and understood the PDS Investor Certification. . I/We have considered our personal circumstances and, where All references to a Wholesale Investor in this Declaration are appropriate, obtained investment and / or taxation advice. references to a Wholesale Investor in terms of clause 3(2) of . If this is a joint application each of us agrees that our Schedule 1 of the Financial Markets Conduct Act 2013 (New investment is held as joint tenants. Zealand).

Terms and conditions for collection of Tax File Numbers (TFN) and Australian Business Numbers (ABN)

Collection of TFN and ABN information is authorised and its about the use of TFNs for investments, contact the enquiries section use and disclosure strictly regulated by tax laws and the of your local branch of the ATO. Once provided, your TFN will be Privacy Act. Investors must only provide an ABN instead of a applied automatically to any future investments in the Trust where TFN when the investment is made in the course of their formal application procedures are not required (e.g. distribution enterprise. You are not obliged to provide either your TFN or reinvestments), unless you indicate, at any time, that you do not wish ABN, but if you do not provide either or claim an exemption to quote a TFN for a particular investment. Exempt investors should we are required to deduct tax from your distribution at the attach a copy of the certificate of exemption. For super funds or trusts highest marginal tax rate plus Medicare levy to meet list only the applicable ABN or TFN for the super fund or trust. Australian taxation law requirements. For more information When you sign this Application Form you declare that you have read and agree to the declarations above.

Permal Absolute Return Trust Application Form – Issued 5 August 2015 Page 3 of 17

Section 2 – Individual(s) or Individual Trustee(s) Complete this section if you are investing in your own name or as an individual trustee. For AML requirements please refer to page 2. 2.1 Type of investor Tick one box only and complete the specified parts of this section. Individual – complete Section 2.2 Sole Trader – complete Sections 2.2 and 2.4 Jointly with another individual(s) – complete Individual trustee for an individual – complete Sections 2.2, 2.3 and 2.5 Sections 2.2, 2.3 and 2.5 (if there is more than one individual trustee) Individual trustee for a trust – complete Sections 2.2 and 2.3 (also complete Section 3)

2.2 Investor 1 Title Given Name(s) Surname

Telephone Number (Including Country Code) (daytime)

Date of Birth (DDMMYY) Tax File Number (TFN) – or exemption code*

Reason for TFN Exemption

Street Address (not a PO Box) Unit Number Street Number Street Name

Suburb State Post Code

Country of Birth

Are you a foreign resident for tax purposes? No

Yes, please advise country of residence Do you hold dual citizenship? No Yes, please advise which countries

2.3 Investor 2 Title Given Name(s) Surname

Telephone Number (Including Country Code) (daytime)

Date of Birth (DDMMYY) Tax File Number (TFN) – or exemption code*

Reason for TFN Exemption

Street Address (not a PO Box) Unit Number Street Number Street Name

Suburb State Post Code

Country of Birth

Are you a foreign resident for tax purposes? No Yes, please advise country of residence Do you hold dual citizenship? No

Permal Absolute Return Trust Application Form – Issued 5 August 2015 Page 4 of 17

Yes, please advise which countries

2.4 Sole Trader Details Business Name (if applicable, in full)

Australian Business Number (ABN) (if obtained)*

Street Address

Suburb State Postcode Country

Section 3 – Trust / Superannuation Fund Complete this section if you are investing for a trust or superannuation fund. For AML requirements please refer to page 2. 3.1 General Information Full Name of Trust or Superannuation Fund

Full Name of Business (if any) Country where Trust established

Tax File Number (TFN) – or exemption code

Reason for TFN Exemption*

3.2 Trustee Details How many trustees are there? Individual - at least one trustee must complete Section 2 of this form Company - at least one trustee must complete Section 4 of this form Combination - at least one trustee from each investor type must complete the relevant section of this form 3.3 Type of Trust Registered Managed Investment Scheme Australian Registered Scheme Number (ARSN)

Regulated Trust (including self-managed superannuation funds) Name of Regulator (e.g. ASIC, APRA, ATO)

Registration/License Details Australian Business Number (ABN)*

Other Trust (also complete Section 3.4) Please Describe

3.4 Beneficiaries Complete this section only if you ticked ‘Other Trust’ in Section 3.3 Does the Trust Deed name beneficiaries? Yes, how many? Provide the full name of each beneficiary: (If more than 8, please provide as an attachment) 1 2 3 4 5 6 7 8

No, describe the class of beneficiary: (e.g. the name of the family group, class of unit holders, the charitable purpose of charity name)

Permal Absolute Return Trust Application Form – Issued 5 August 2015 Page 5 of 17

3.5 Beneficial Owners Please provide the full name of any beneficial owner of the trust. A beneficial owner of a trust is any individual who has a 25% or more interest in the trust or controls the trust. This includes the appointor of the trust (who holds the power to appoint or remove the trustees of the trust), the settlor of the trust, and beneficiaries with at least a 25% interest in the trust. All beneficial owners will need to provide AML verification documents as per page 2. *Settlor exemption* Please note there is an exemption where deceased settlors or settlors to a trust less than $10,000 upon establishment, do not require verification. Please provide beneficial owners as an attachment if there is insufficient space below:

* See page 3 of the Application Form for terms and conditions relating to the collection of TFNs and ABNs. Section 4 – Company / Corporate Trustee Complete this section if you are investing for a company or where a company is acting as a trustee. For AML requirements please refer to page 2. 4.1 Company Type Australian Listed Public Company – complete 4.2 Australian Proprietary Company or non-listed public company – complete 4.2 and 4.4 Foreign Company – complete all sections 4.2 Company Details Company Name ACN/ABN (if registered in Australia)*

Tax File Number (TFN) – or exemption code* Reason for TFN Exemption*

Given Name(s) of Contact Person

Registered Street Address (Not PO Box) Suburb

State Post Code Country

Principal place of business in Australia Note for non-Australian companies: you must provide a local agent name and address if you do not have a principal place of business in Australia. Tick if the same as above, otherwise provide: Registered Street Address (Not PO Box) Suburb

State Post Code

4.3 Additional Details for non-Australian Company Tick if the company is registered with ASIC Australian Registered Body Number (ARBN)

Tick if the company is registered with a regulatory body Name of Regulatory Body Company Identification Number Issued (if any)

Registered Company Address (Not PO Box) Suburb

State Post Code Country

4.4 Beneficial owner a. Managing Officials: All proprietary or non-listed public domestic companies and foreign companies must provide the full name of each senior managing official/s of the company (such as the managing director or directors who are authorised to sign on the company’s behalf):

1 2

3 4

Permal Absolute Return Trust Application Form – Issued 5 August 2015 Page 6 of 17

If there are more than 4 directors please provide as an attachment. b. Shareholders: All proprietary or non-listed public domestic companies and foreign companies must provide details of each shareholder who owns directly, jointly or beneficially at least 25% of the company’s issued capital.

Shareholder 1 Full Name

Registered Street Address (Not PO Box) Suburb

State Post Code Country

Shareholder 2 Full Name

Registered Street Address (Not PO Box) Suburb

State Post Code Country

If there are more than 2 shareholders that each have at least 25% of the company’s issued capital, provide as an attachment. * See page 3 of the Application Form for terms and conditions relating to the collection of TFNs and ABNs.

Section 5 – Authorised representative or agent Complete this section if you are completing this Application Form as an agent under a direct authority such as a Power of Attorney. You must also complete the section relevant to the investor/applicant that you are acting on behalf of. For AML requirements please refer to page 2. 5.1 Appointment of Power of Attorney I would like to appoint an authorised representative to operate on this account OR I am an agent under Power of Attorney or the investor’s legal or nominated representative - complete Section 5.2 Full name of authorised representative / agent Title of role held with applicant

Signature

5.2 Power of Attorney Documentation You must attach a valid Power of Attorney. The document is an original or certified copy The document is signed by the applicant / investor The document is current and complete The document permits the attorney / agent (you) to transact on behalf of the applicant / investor

Section 6 – Financial adviser By completing this section you nominate the named adviser as your financial adviser for the purposes of your investment in the Trust. You also consent to give your financial adviser / authorised representative / agent access to your account information unless you indicate otherwise by ticking the box below. For AML requirements please refer to page 2. 6.1 Financial adviser I am a financial adviser completing this application form as an authorised representative or agent. Name of Adviser AFSL Number

Dealer Group

Name of Advisory Firm

Postal Address Suburb

State Post Code Country

Email Address of Advisory Firm (required)

Permal Absolute Return Trust Application Form – Issued 5 August 2015 Page 7 of 17

Email Address of Adviser

Business Telephone Facsimile

6.2 Financial Adviser Declaration I/We hereby declare that I/we are not a US Person as defined in the PDS I/We hereby declare that the investor is not a US Person as defined in the PDS I have completed an appropriate customer identification procedure (CID) on this investor which meets the AML/CTF Act. AND I have attached the relevant CID documents OR I have not attached the CID documents however I will retain them and agree to provide them to EQT on request. I also agree to forward these documents to EQT if I ever become unable to retain the documents. I have provided personal financial advice to the investor(s) named in this Application form taking into account their personal needs, objectives, financial and taxation situation (having regard to the nature and any complexities of this product), have complied with all requirements of the Corporations Act and applicable law in relation to this investment by the investor(s) and have provided the Investor with a statement of advice. If I cease being the financial adviser for the investor I will notify EQT at that time.

Financial Adviser Signature Date 6.3 Access to Information Unless you elect otherwise, your financial adviser will have access to your account information and will receive copies of all statements and transaction confirmations. Please tick this box if you DO NOT want your financial adviser to have access to information about your investment. Please tick this box if you DO NOT want copies of statements and transaction confirmations sent to your adviser.

Section 7 – INVESTMENT INSTRUCTIONS (All investors MUST complete) 7.1 Contact Details Title Given Name (s) Surname

Home Telephone Number (including Country Code) Date of Birth (DDMMYY)

Unit Street Number Street Name Suburb State

Postcode Country Mobile Telephone

Email Address

Business Telephone

Facsimile

Permal Absolute Return Trust Application Form – Issued 5 August 2015 Page 8 of 17

7.2 Investment Details Full name investment to be held in

Investment Amount

Permal Absolute Return Trust – CLASS A (APIR ETL0144AU) $ , , . Min initial investment amount A$500,000

Investment Amount

Permal Absolute Return Trust – CLASS B (APIR ETL0144AU) $ , , . Min initial investment amount A$500,000

7.3 Distribution Instructions Reinvest distributions - if you select this option your distributions will be reinvested in the Trust. Pay distributions to the bank account below (Australian investors only). 7.4 Investor Banking Details for Redemptions and Distributions (if applicable) Account name

Financial Institution

Branch

BSB Account number

7.5 Payment Method Cheque Make cheques payable to “BNP Paribas Nominees Pty Ltd ACF EQT PIM Application Account ” Austraclear

Your Austraclear Code Pay to BPSS20

Electronic Funds Transfer

Bank Name Westpac Banking Corporation Bank Address Royal Exchange, Cnr Pitt and Bridge Street, Sydney 2000 BNP Paribas Nominees Pty Limited ACF EQT PIM Applications Account Name Trust Account {specify Class A or Class B} BIC WPACAU2S BSB Number 032-002 Account Number 889778

Reference

(investor name)

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7.6 Elections Annual Financial Report The annual financial report for the Trust will be available on www.eqt.com.au/insto from 30 September each year, however, if you would like a hard copy of the annual financial report sent to you please tick the box. Privacy Do you wish to receive marketing information about products and services that may be of interest to you? This information may be distributed by mail, email or other form of communication. Yes No 7.7 Purpose of Investment and Source of Funds Please outline the purpose of investment (e.g. superannuation, portfolio investment, etc)

Please outline the source/s of initial funding and anticipated ongoing funding (e.g. salary, savings, business activity, financial investments, real estate, inheritance, gift, etc and expected level of funding activity or transactions)

Section 8 – Foreign Account Tax Compliance Act (FATCA) (All Investors MUST complete)

The US Foreign Tax Compliance Act (FATCA) requires us to collect certain information about each investor’s tax residency and tax classifications. In certain circumstances (including if the below section is not completed by you) we may be obliged to share information on your account with the Australian Tax Authorities. If you have any questions about your tax status, please contact your tax adviser.

8.1 Individual and joint investors (Company, Superannuation and other Trusts etc. please complete Section 8.2)

Investor 1 PERMANENT TAX RESIDENCE ADDRESS. If your tax residence address is different from the registered address in Section 1, please complete the following: For the attention of:

Address (Not PO Box) Suburb

State Post Code Country

Are you a U.S. citizen or U.S. resident for tax purposes? No (go to Section 9) Yes Please provide your US Taxpayer Identification Number (TIN): (please note that you may not be eligible to enter the Trust, in which case EQT will contact you).

Investor 2 PERMANENT TAX RESIDENCE ADDRESS. Should your tax residence address be different from the registered address in Section 1, please complete the following: For the attention of:

Address (Not PO Box) Suburb

State Post Code Country

Are you a U.S. citizen or U.S. resident for tax purposes? No (go to Section 9) Yes Please provide your US Taxpayer Identification Number (TIN): (please note that you may not be eligible to enter the Trust, in which case EQT will contact you).

8.2 Companies, Superannuation and other Trusts (Entities)

Please choose one of the following options:

A US Entity (established under the laws of the US, or, for a trust, administered under the laws of the US) Please provide the Entity’s US Taxpayer Identification Number (TIN): Is the Entity an exempt payee for US tax purposes?  Yes  No If the Entity is an exempt payee, provide its exemption code: ______(please note that you may not be eligible to enter the Trust, in which case EQT will contact you).

A Foreign Financial Institution

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Provide the Entity’s Global Intermediary Identification Number (GIIN), if applicable: GIIN

If the Entity is a Financial Institution but does not have a GIIN, provide its FATCA Status:

Deemed Compliant Financial Institution Excepted Financial Institution Exempt Beneficial Owner Non Reporting IGA Financial Institution (listed in Annex II of an IGA) Nonparticipating Financial Institution Other (describe FATCA status )

A Trustee Documented Trust Provide the Trustee’s Global Intermediary Identification Number (GIIN), if applicable: GIIN

A Non-Financial Listed Public Company (excluding US Companies)

A Not-For-Profit Entity that is Exempt from Income Tax (excluding US entities)

Non US Government Body

Other – please complete the US controlling persons section below

Does the Entity have any Controlling Person/s who is/are US citizens or residents of the US for tax purposes? Full Name Full Name Date of Birth Date of Birth Full Residence Address Full Residence Address

Details of controlling person’s beneficial Details of controlling person’s beneficial ownership (%) ownership (%) US TIN US TIN

Declaration and undertakings I undertake to advise the recipient promptly for FATCA self-certification where any of the information above changes. Please note that the Fund Administrator will review your self-certification in the context of the FATCA due diligence, and may have to request additional supporting documentation.

Key definitions for the FATCA section iv) is an insurance company; or It is the responsibility of prospective investors to inform v) is an entity that is a holding company or themselves as to the tax consequences to them of buying, treasury centre that is a part of a group that holding, selling (or otherwise transferring) or redeeming shares includes one of the above. under the laws of the country(ies) in which they are or may be taxable. These definitions are provided for your information only and you are encouraged to seek the assistance of an For further information regarding these definitions refer to independent financial professional or tax adviser to facilitate the http://www.irs.gov/Businesses/Corporations/Information-for- completion of this form. Foreign-Financial-Institutions

A Foreign Financial Institution is a non-US entity (e.g. An IGA (Inter-Governmental Agreement) means an agreement company, partnership or trust) that engages in one of the between the US or the Treasury Department and a foreign following: government to implement FATCA through reporting by Financial Institutions to such foreign government (Model 1) or i) accepts deposits in the ordinary course of a to the IRS (Model 2). banking or similar business (depository institution); A controlling person is any individual who directly or indirectly ii) holds as a substantial portion of its business exercises ultimate effective control over the entity. For a (equals or exceeds 20 percent of the entity's company, this includes beneficial owners controlling more than gross income) financial assets for the account of 25% of the shares in the company. For a Trust, this includes others (custodial institution); Trustees, Settlors, Protectors or Beneficiaries. For a iii) is an investment entity including entities that partnership this includes any partners. trade in financial assets or that are investing, administering, managing funds, money, or certain financial assets on behalf of other persons

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Section 9 – DECLARATIONS (All Investors MUST complete) Applicant 1 Applicant Given Name(s)

Capacity Individual Signatory Director Executive Office Partner Sole Director / Secretary Authorised Signatory Signature Company Seal (if applicable)

Date

Applicant 2 Applicant Given Name(s)

Capacity Individual Signatory Director Executive Office Partner Sole Director / Secretary Authorised Signatory

Signature Company Seal (if applicable)

Date

Application Checklist

Have you completed all sections relevant to you (as set out in the introduction)? If you are a financial adviser have you completed Section 6.2? Have you provided certified copies of your identification documents? Have you completed all other relevant details and SIGNED the Application Form? Have you completed the separate New Zealand Wholesale Investor Certification? If you can tick all of the boxes above, send the following: . Completed Application Form; . Certified copies of identification documents (unless your adviser has agreed to retain these); and . A cheque made payable to “Permal Absolute Return Trust {specify Class A or Class B}” (unless you are paying by Electronic Funds Transfer or Austraclear).

By post to:

Permal Appplications & Withdrawals c/o Unit Registry PO Box R209 ROYAL Exchange NSW 1225

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Permal Absolute Return Trust Wholesale Investor Certification (Clause 44 of Schedule 1 of the Financial Markets Conduct Act 2013 (FMCA))

Warning

The law normally requires people who offer financial products to give information to investors before they invest. This information is designed to help investors make an informed decision.

If you are a wholesale investor, the usual rules do not apply to offers of financial products made to you. As a result, you may not receive a complete and balanced set of information. You will also have fewer other legal protections for these investments.

Ask questions, read all documents carefully, and seek independent financial advice before committing yourself.

Offence

It is an offence to give a certificate knowing that it is false or misleading in a material particular. The offence has a penalty of a fine not exceeding $50,000.

The Offer

Class A and Class B Units in the Permal Absolute Return Trust (‘the Trust’) are offered and issued to investors by Equity Trustees Limited, with Permal Investment Management Services Limited (“PIMS”) appointed as the Investment Manager in respect of the Trust.

Offers of Class A and Class B units in the Trust in New Zealand are limited to Wholesale Investors within the meaning of clause 3(2) of Schedule 1 of the Financial Markets Conduct Act 2013.

In order to access Class A and Class B units in the Trust, please review the Permal Absolute Return Trust New Zealand Wholesale Investor Fact Sheet and product disclosure statement (‘PDS’) for the Trust, read this form, select the type(s) of wholesale investor criteria that apply to you, and complete the certification below.

If you have any queries in relation to the Trust, please contact the Permal London Institutional Team on +44 20 7389 1300. Any queries in relation to your wholesale investor certification should be directed to Equity Trustees’ Product Team at [email protected].

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The client identified below certifies that:

. the client is a Wholesale Investor within the meaning of Schedule 1 of the FMCA, clause 3(2) (in relation to offers of financial products); and . the client understands the consequences of being certified as a ‘Wholesale Investor’ in terms of the FMCA and has received the Permal Absolute Return Trust New Zealand Wholesale Investor Fact Sheet and PDS for the Trust.

The type of Wholesale Investor outlined in Schedule 1 that applies to the client is identified below, along with the grounds on which the client claims that they fall within the identified type.

Unless Equity Trustees Limited agrees otherwise, by completing this form the client is certifying that every transaction on the account referred to below is carried out on its own behalf and not on behalf of any third party. Please contact Equity Trustees if you are acting on behalf of any third party.

[Please select all types of Wholesale Investor below that are applicable by marking a or a  in the relevant box(es). For each type that applies, please also select the relevant grounds on which the client is within the identified type].

 The client is an investment business (clause 3(2)(a)) Note: other than authorised financial advisers, this applies to entities, not individuals

Grounds for claiming the client is within this type:

 The client is an entity whose principal business consists of investing in financial products

 The client is an entity whose principal business consists of acting as an underwriter

 The client is an entity whose principal business consists of providing a financial adviser service within the meaning of s 9 of the Financial Advisers Act 2008) in relation to financial products  The client is an entity whose principal business consists of providing a broking service (within the meaning of section 77B of the Financial Advisers Act 2008) in relation to financial products  The client is an entity whose principal business consists of trading in financial products on behalf of other persons  The client is a registered bank (within the meaning of section 2(1) of the Reserve Bank of New Zealand Act 1989)  The client is a non-bank deposit taker (within the meaning of section 5 of the Non-bank Deposit Takers Act 2013)  The client is a licensed insurer (within the meaning of section 6(1) of the Insurance (Prudential Supervision) Act 2010)  The client is a manager of a registered scheme, or a discretionary investment management service, that holds a market services licence  The client is a derivatives issuer that holds a market services licence  The client is a QFE or an authorised financial adviser

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 The client meets the investment activity criteria (clause 3(2)(b))

Grounds for claiming the client is within this type:

 The client (including any entity that the client controls or controlled at the relevant time) owns, or at any time during the two-year period before the date of this certificate has owned, a portfolio of financial products (excluding category 2 products, interests in KiwiSaver or any other form of retirement scheme, or financial products issued by an associated person of the client) of a value of at least NZ$1 million (in aggregate)  The client (including any entity that the client controls or controlled at the relevant time) has, during the two-year period before the date of this certificate, carried out one or more transactions to acquire financial products (excluding category 2 products, interests in KiwiSaver or any other form of retirement scheme, or financial products issued by an associated person of the client) where the amount payable under those transactions (in aggregate) is at least NZ$1 million, and the other parties to the transactions were not associated persons of the client  The client is an individual who has, within the last 10 years before the date of this certificate, been employed or engaged in an investment business and has, for at least two years during that 10-year period, participated to a material extent in the investment decisions made by the investment business

 The client is large (clause 3(2)(c))

Grounds for claiming the client is within this type:

 As at the last day of each of the two most recently completed financial years before the date of this certificate, the net assets of the client and any entities controlled by the client exceeded NZ$5 million  In each of the two most recently completed financial years before the date of this certificate, the total consolidated turnover of the client and any entities controlled by the client exceeded NZ$5 million

 The client is a government agency (clause 3(2)(d))

Grounds for claiming the client is within this type:

 The client is a government department named in Schedule 1 of the State Sector Act 1988

 The client is a Crown entity under section 7 of the Crown Entities Act 2004  The client is a local authority  The client is a State enterprise (within the meaning of section 2 of the State-Owned Enterprise Act 1986)  The client is the Reserve Bank

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 The client is a government agency (clause 3(2)(d))

 The client is the Board of Trustees of the National Provident Fund continued under the National Provident Fund Restructuring Act 1990 (or a company appointed under clause 3(1)(b) of Schedule 4 of that Act)

If the client is an entity, the client certifies that it was not established or acquired with a view to being used as an entity to which offers of financial products may be made in reliance upon this exclusion.

The client undertakes to provide Equity Trustees Limited with any information it reasonably requests in order to support the certifications provided.

The client acknowledges that this certificate is provided to Equity Trustees Limited and PIMS for the purposes of determining the client’s eligibility to be treated as a Wholesale Investor for the purposes of the FMCA, and that they will be reliant upon the certifications provided in offering financial products or services to the client (whether as part of the Trust or otherwise).

The client understands that this certificate is valid and may be relied upon by Equity Trustees Limited and PIMS for a period of two years following its date, unless earlier revoked.

Name of client:

Account number:

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Signatures – all individuals/trustees/partners/officers and two directors must sign

Individual/Joint/Trustee/Director Signature Date D D M M Y Y Y Y

x

Full Name

Capacity

Individual/Joint/Trustee/Director Signature Date D D M M Y Y Y Y

x

Full Name

Capacity

Individual/Joint/Trustee/Director Signature Date D D M M Y Y Y Y

x

Full Name

Capacity

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