)NDEPENDENCEs)NTELLIGENCEs)NTEGRITY i Capital International Value Fund ARSN 134 578 180 Product Disclosure Statement Issue Number 1 Dated 9 April 2009 Capital Dynamics (Australia) Limited ABN 53 129 846 260 AFSL 326283 Directory Auditor of the Fund PricewaterhouseCoopers The Fund Darling Park Tower 2 i Capital International Value Fund 201 Sussex Street ARSN 134 578 180 Sydney NSW 2000 AUSTRALIA Responsible Entity, Issuer and Fund Manager Solicitors Capital Dynamics (Australia) Limited Block Legal & Compliance ABN 53 129 846 260 ABN 61 102 277 092 AFSL No 326283 Suite 2007 Level 1, 61 York Street Level 20 Sydney NSW 2000 109 Pitt Street AUSTRALIA Sydney NSW 2000 Tel: 1300 798 655 (Australia only) AUSTRALIA Tel: +61 2 8280 7757 (International) Website: www.capitaldynamics.com.au None of the above guarantee the Email: [email protected] repayment of capital or the performance of the Fund offered for subscription in this PDS. Custodian and Administrator BNP Paribas Fund Services Australasia Pty Ltd Investor Enquiries ABN 71 002 655 674 You can obtain information about AFSL 241080 investing in the Fund or the value of your Level 6, BNP Paribas Centre investment by calling us. Please quote 60 Castlereagh Street your allocated Unitholder number (if Sydney NSW 2000 applicable) in any communication. AUSTRALIA Registrar Link Market Services Limited ABN 54 083 214 537 Level 12, 680 George Street Sydney NSW 2000 AUSTRALIA 1 IMPORTANT NOTE This Product Disclosure Statement (“PDS’’) dated 9 April 2009 has been prepared and issued by Capital Dynamics (Australia) Limited (“Responsible Entity, Fund Manager, we or us”), in its capacity as responsible entity of the i Capital International Value Fund (the “Fund”). The information contained in this PDS is general information only and does not take into account your individual objectives, financial situation, needs or circumstances. It is not intended to be a recommendation by the Responsible Entity, any associate of the Responsible Entity or any other person to invest in the Fund. Before investing in the Fund you should seek independent advice to ensure this is appropriate for your particular financial objectives, needs and circumstances. The Responsible Entity does not guarantee the success, repayment of capital or any rate of return on income or capital or investment of the Fund, nor the investment performance of the underlying markets or instruments. Past performance is no indication or guarantee of future performance. Units in the Fund are offered and issued by the Responsible Entity on the terms and conditions described in this PDS. All Unitholders shall be bound by the contents of this PDS. The information in this PDS is current as at 9 April 2009, and we reserve the right to change these terms and conditions. Notice will be provided before or as soon as practicable after the change occurs, and in particular at least 30 days’ notice would be provided to Unitholders of any increase in fees (see Section 7). Information which is not materially adverse information is subject to change from time to time. The updated information can be obtained by calling us or may be accessed from our website at www.capitaldynamics. com.au. We will send you a paper copy of the updated information on request. We reserve the right to withdraw the offer or invitation to subscribe for Units and withdraw this PDS. Where changes are material, a supplementary or replacement PDS shall be issued. This PDS does not constitute an offer or invitation in any place outside Australia where or to any person to whom it would be unlawful to make such an offer or invitation. The distribution of this PDS (electronically or otherwise) in any jurisdiction outside Australia may be restricted by law and persons who come into possession of this PDS should seek advice on and observe any such restrictions. Any failure to comply with such restrictions may constitute a violation of applicable law. If you received this PDS electronically, we will provide a paper copy free of charge upon request during the life of this PDS. 2 CONTENTS 1 PURPOSE AND CONTENTS OF THIS PRODUCT DISCLOSURE STATEMENT (“PDS”) ..............................................................................5 2 FUND SUMMARY ..............................................................................................................................................5 3 THE i CAPITAL INTERNATIONAL VALUE FUND .............................................................................7 3.1 Investment Strategy ........................................................................................................................7 3.2 Investment Philosophy ...................................................................................................................7 3.3 Authorised Investments ................................................................................................................9 3.4 Labour Standards or Environmental, Social or Ethical Considerations ..............9 3.5 Performance History..................................................................................................................... 10 4 THE RESPONSIBLE ENTITY AND FUND MANAGER ............................................................... 10 5 SIGNIFICANT BENEFITS ............................................................................................................................ 12 6 SIGNIFICANT RISKS ...................................................................................................................................... 12 7 FEES AND EXPENSES ................................................................................................................................. 15 7.1 Summary Table of Fees and Other Costs ........................................................................ 16 7.2 Example of Annual Fees and Costs .................................................................................... 17 7.3 Additional Explanation of Fees and Costs ...................................................................... 18 7.3.1 Maximum Fees .............................................................................................................. 18 7.3.2 Management Costs .................................................................................................... 18 7.3.3 Performance Fee .......................................................................................................... 19 7.3.4 Special Request and ‘User Pays’ Fees .............................................................. 20 8 INVESTOR INFORMATION ....................................................................................................................... 21 8.1 Applications ...................................................................................................................................... 21 8.2 Cooling Off ........................................................................................................................................ 21 8.3 Redemptions .................................................................................................................................... 22 8.4 Income Distributions .................................................................................................................... 22 8.5 Unit Price Calculation .................................................................................................................. 23 8.6 Transfer of Units .............................................................................................................................. 23 8.7 Reporting............................................................................................................................................ 23 8.8 Reporting Requirements and Copy of Documents .................................................... 23 3 8.9 Notice of Election to Receive Annual Reports .............................................................. 24 8.10 Authorised Representative Appointment ........................................................................ 24 8.11 Changing Address, Payment Instructions or Other Details ................................... 25 8.12 Complaints and Dispute Resolution ................................................................................... 25 8.13 Privacy and Personal Information ......................................................................................... 26 8.14 Anti-Money Laundering ............................................................................................................. 27 8.15 Social Security .................................................................................................................................. 27 9 TAXATION ........................................................................................................................................................... 27 9.1 Taxation of the Fund .................................................................................................................... 28 9.2 Taxation of Resident Unitholders .......................................................................................... 28 9.3 Taxation of Non-Resident Unitholders .............................................................................. 29 9.4 Goods and Services Tax (GST) ............................................................................................... 29 9.5 Tax Indemnity ..................................................................................................................................