Goldman Sachs JBWere Global Small Companies Wholesale Fund
Goldman Sachs JBWere
Global Small Companies Wholesale Fund
A Product Disclosure Statement for investors investing through a Platform
Dated 28 February 2008
ARSN 090 047 822
Important information 1
Introducing Goldman Sachs JBWere Asset Management 2
The Goldman Sachs JBWere Global Small Companies Wholesale Fund at a glance 2
About managed funds 3
What are the significant benefits? 4
What are the significant risks? 5
Our approach to managing investments 7
Goldman Sachs JBWere Global Small Companies Wholesale Fund 8
Fees and other costs 9
Additional explanation of fees and costs 10
Example of annual fees and costs 12
Investment instructions 13
Additional investment information 14
Important additional information 15
Offices of the Manager 21
This Product Disclosure Statement (‘PDS’) is dated 28 February 2008, being the date the preparation of this PDS was completed, and will be circulated throughout
Australia. This PDS relates only to investors in any Platform authorised to use this PDS. Other investors in the Goldman Sachs JBWere Global Small Companies
Wholesale Fund (the ‘Fund’, also referred to in this PDS as the ‘Global Small Companies Wholesale Fund’) may rely on the latest Goldman Sachs JBWere Funds
PDS. Any such investor who wishes to acquire units in the Fund will need to complete the application forms attached to or accompanying that PDS.
Units in the Fund are issued by Goldman Sachs JBWere Managed Funds Limited ABN 63 005 885 567 which is the Responsible Entity for the Fund.
Goldman Sachs JBWere Managed Funds Limited carries on business in relation to the Fund under the name Goldman Sachs JBWere Asset Management
and is also referred to throughout this PDS as ‘Goldman Sachs JBWere Asset Management’, ‘GSJBW Asset Management’, ‘the Manager’, ‘we’, ‘us’ or ‘our’.
Goldman Sachs JBWere Managed Funds Limited holds an Australian Financial Services Licence, number 230251.
All dollar amounts in this PDS are quoted in Australian dollars.
In preparing this PDS, we have not taken into account any particular investor’s individual investment objectives, financial situation or needs.
Before making an investment decision on the basis of this PDS, you need to consider whether this investment is appropriate in light of your own circumstances.
The Manager is the issuer of this PDS.
The offer of Units in the Fund (‘Units’) in this PDS is available to persons receiving the PDS in Australia (including in electronic form). The PDS does not constitute
an offer or invitation in any place outside Australia, unless expressly authorised by us. In particular, Units are not available for purchase by investors in the United
States or by any other United States person or persons. The PDS is not to be distributed in jurisdictions outside Australia. Any failure to comply with such
restrictions may constitute a violation of applicable securities law.
None of Goldman Sachs JBWere Pty Ltd, Goldman Sachs JBWere Group Holdings Pty Ltd and their respective subsidiaries including Goldman Sachs JBWere
Managed Funds Limited and Goldman Sachs JBWere Investment Management Pty Ltd (together, the ‘Goldman Sachs JBWere Group’), nor the appointed
custodian of the Fund nor any other party guarantees the performance or success of the Fund, the rate of income or capital return from, the repayment of
investments in the Fund, or that there will be no capital loss or particular taxation consequence of investing. No party other than us is responsible for any
information or statement in this PDS.
If any of the information contained in this PDS changes in a manner that is not materially adverse to Unitholders, we may update that information by posting the
updated information on our website, www.gsjbw.com/assetmanagement. This information is available at any time. A paper copy of any information updated in
this way will be given to you, if you request it.
Goldman Sachs is a registered trade mark of Goldman, Sachs & Co.
Membership of IFSA
Goldman Sachs JBWere Asset Management is a member of the Investment and Financial Services Association (IFSA).
Only investors in any Platform which is authorised by us Unless stated otherwise, any reference in this PDS to
to use this PDS may rely on the information in this PDS for investing in the Fund is a reference to investing in the
the purposes of any application to invest in the Fund and Fund via a Platform.
also for any direction or instruction given by the investor to
invest in the Fund. Who do I contact with enquiries about my investment?
We may decline to accept an application for investment in Your first point of contact is your Platform operator. If any
the Fund if the relevant Platform is not authorised by us to issues you have about your investment remain unresolved
use this PDS. then you may wish to contact any complaints scheme in
Investors can only gain access to this Fund via a Platform which the Platform, of which you are a member, participates.
such as a master trust or wrap.
Where a Platform investor directs the Platform to acquire
Units in the Fund on their behalf they do not become
Unitholders in the Fund and accordingly have no rights as
a Unitholder. The Platform (or its custodian) is the direct
investor in the Fund, and becomes the Unitholder. Subject
to the terms of the Platform it is up to the Platform to
determine whether it will exercise its rights as a Unitholder
in the Fund on behalf of the Platform investor. This will
depend on the arrangements between the Platform
investor and the Platform. You should discuss your rights
with your Platform.
Introducing Goldman Sachs JBWere
Goldman Sachs JBWere Asset Management is a specialist pool of retail clients investing directly or via a financial
provider of investment management products and services, adviser. We take a long term approach to investing as we
and forms part of the Goldman Sachs JBWere Group. believe this will allow our clients’ investments to perform to
The Group’s core principles encompass putting clients’ their full potential. We select assets likely in our view to add
interests first, integrity, professionalism and a commitment value consistently over the medium-to-long term.
to excellence. We offer a comprehensive range of actively managed
Goldman Sachs JBWere Asset Management’s Australian domestic and international funds, as well as cash products,
and New Zealand client base includes some of the fixed income funds and alternative assets.
industry’s largest corporate superannuation funds, Information on our full range of products is available on our
wholesale Platforms and dealer groups, as well as a large website www.gsjbw.com/assetmanagement.
The Goldman Sachs JBWere Global Small Companies
Wholesale Fund at a glance
This is a summary of the Fund. You should read the entire PDS for full details before investing. Please refer to the sections
entitled ‘What are the significant benefits?’ on page 4 and ‘What are the significant risks?’ on page 5 to consider the
benefits and risks involved in investing in the Fund. The section ‘Fees and other costs’ on page 9 will outline the costs of
investing in the Fund.
Global Small Companies Wholesale Fund
Investment objective To achieve medium-to-long term capital growth by investing in smaller companies globally. In doing
so, we aim to outperform the S&P/Citigroup Broad Market Index World less than US$2B ex Australia
in A$ over rolling three-year periods.
Asset Allocation range* • 80–100% International securities
• 0–20% cash
Recommended investment 5–7+ years
Variability of returns High
Contribution fee Nil
Withdrawal fee Nil
Estimated management costs 1.43 % pa
(see page 10)
Minimum initial investment Please refer to your Platform for details
Minimum additional Please refer to your Platform for details
Minimum withdrawal Please refer to your Platform for details
Minimum investment balance Please refer to your Platform for details
Unit pricing Daily
Distributions (see page 14) Half yearly
Fund inception date 30 November 1999
Funds under management $425.5 million
31 January 2008
* This represents the portfolio of the underlying pooled fund.
About managed funds
What is a managed fund?
A managed fund allows individual investors to pool their money. This pool is then used to invest in a range of different
assets in line with the investment policy of the fund. For example, a typical Australian equities fund will be invested in
companies listed on the Australian Stock Exchange.
The Fund described in this PDS is a unit trust. When you invest in the Fund, you buy Units in the Fund, however this is
not a direct investment in the Fund’s assets. The value of the Units you hold represents the value of your proportion of
the assets the Fund owns.
As the Fund’s Unit value can rise and fall, the value of your investment can also rise and fall.
What are the types of investments available?
Investments are broadly grouped into categories called ‘asset classes’. The main asset classes in which managed funds
can invest are broadly defined below:
Shares Represent the legal ownership of part of a company, which may be local or foreign. Shares in
publicly listed companies may be bought and sold through a stock exchange, such as the Australian
Property A property investment may be either direct (e.g. houses, offices or factories) or indirect via securities
held in a property trust or property company.
Fixed interest A fixed interest investment is essentially a loan to an organisation or government that in return
issues a security (bond), and undertakes to pay a series of interest payments over time, and to repay
principal at maturity.
Cash A cash investment is typically a short-term, interest-bearing product such as a bank bill, commercial
bill, promissory note or bank deposit.
What are the significant benefits?
This section deals with the significant benefits of investing Access to investment opportunities
in managed funds, including the Fund, rather than benefits By investing in a managed fund you effectively pool your
arising from your Platform. money with that of other investors. This means you can
An investment in the Fund may provide you with certain take advantage of the greater buying power and investment
benefits in addition to exposing you to certain risks (see opportunities a large pool of money allows, even though you
page 5 for further details of risks). may have a comparatively small sum of money to invest.
Why invest in managed funds?
By investing in a managed fund your money can be spread
Some of the significant benefits of investing in managed
over a wide range of assets, and as a result, your exposure
funds generally include:
to risk can be reduced. A broader spread of assets can
Professional management increase your exposure to investment opportunities.
By investing in a managed fund, you benefit from your Right to income distribution (if any)
investment being managed by a team of highly qualified
Investing in a managed fund means you may receive
and experienced managers. The investment team
regular income from your investment in the form of income
manages the investment on your behalf by researching
distributions. There may be times however, when income
the markets and securities in which they invest. They have
distributions cannot be made, are lower than expected or
access to dedicated fulltime research resources, utilise
are delayed (see page 14 for more information).
rigorous investment processes and highly developed risk
management techniques and have access to advanced Liquidity
technology and trading systems. Investing in a managed fund generally allows you to add to
your investment, switch between funds or withdraw your
investment at any time (subject to the terms and conditions
outlined on page 13).
What are the significant risks?
This PDS does not contain any significant risks of investing for you, we recommend that you discuss your situation
in the Fund arising from your participation in your Platform. with your financial adviser, who will be able to advise what
It deals with the risks of direct investment only. However, all level of risk is appropriate for your circumstances.
forms of investment, including managed funds, involve some
level of risk, so it is important that you understand what risk Understanding volatility
is and how it might affect your investments in the Fund. At its simplest, volatility is the fluctuation of an
investment’s return over a period of time. Different types of
We do not guarantee the performance or success of investments have varying levels of volatility. For example,
the Fund, any level of capital or other return from, or Australian and international shares and listed property
the repayment of investments, in the Fund. We do not trusts generally have a higher level of volatility compared
guarantee that there will be no capital loss nor any particular to cash and fixed interest investments, particularly over the
taxation consequences of investing. Past performance is not short term when the value of the investment can fall below
a reliable indicator of future performance. An investment in the initial purchase cost.
the Fund may involve a high degree of risk, including the risk
The reward to investors for holding a more volatile
that you could incur substantial losses.
investment is potentially a higher level of return. History
suggests that over the long term (i.e. five years or more)
What is investment risk? an investment in, say, Australian shares and listed property
‘Investment risk’ is the possibility that your investment will provides a higher return than holding an investment with a
not perform as well as expected. For example, the value lower risk profile (e.g. bank deposits, and to a lesser extent,
of your investment could fall below its initial cost, and as a bonds). It is therefore vital to consider your investment
result you could lose money on that investment. ‘horizon’ when making your decision to invest.
The level of investment risk you are able to tolerate is an The following table is a guide to the broad differences in
important factor in choosing the investments that will best expected risk and return between various asset classes:
suit your needs. Before deciding if this Fund is appropriate
Cash Fixed interest Property Shares International
Volatility Low–Medium Medium Medium–High High High
Returns Low–Medium Medium Medium–High High High
Time frame (years) 1+ 3–5 + 5+ 5–7 + 5–7 +
Possible tax benefits No No Yes Yes Yes
Examples Bank accounts, bank Government bonds, Houses, offices, Shares, share funds, Shares funds, fixed
bills, cash funds debentures, bond factories, property listed investment interest funds
funds funds funds
What are the significant risks? continued
What are the different types of risk? to the Fund. If any of these events were to occur we would
There are a number of types of investment risk. Some or provide you with at least 30 days’ prior notice. There is also
all of the following may apply to the Fund, depending on the risk that investing in the Fund may produce different
which assets the Fund is invested in: results than investing individually because of income or
capital gains accrued in the Fund and the consequences of
Counterparty risk investment and withdrawal by other investors.
Counterparty risk is the risk that any of the Fund’s trading
Managed funds may be constrained by the amount of money
counterparties, including derivative counterparties, a
that we believe can be accepted without compromising the
custodian, or an issuer or guarantor of fixed income
efficient management of those funds. To ensure those funds
securities held by the Fund, becomes insolvent or cannot
remain efficient and competitive, we have the discretion to
otherwise meet their obligations to repay money.
close a fund to new investments from time to time when
Country, legal, tax and regulatory risk we believe the fund has reached capacity. If the Fund was to
This is the risk of being exposed to the regulatory (including close to new investments, we may elect not to accept new
tax and legal), economic and/or political climate in the or additional contributions. This could potentially impact your
countries in which a fund invests or has exposure to. particular investment strategy.
These risks may adversely affect investments held in those Investment specific risk
countries as well as impact on the Fund’s performance.
This refers to the inherent risk of an investment made by
Currency risk the Fund (e.g. an investment in a particular company’s
This is the risk that currency movements can adversely shares) that could adversely affect the Fund’s performance.
affect the value of international investments. For example, a Market risk
fall in the value of the Australian dollar can increase the value
This is the risk of being exposed to a particular investment
(in Australian dollar terms) of international investments held
market, such as international investment markets, or the
by the Fund. On the other hand, a rise in the Australian dollar
Australian share or property markets. The performance of
can reduce the value of that investment.
these markets can be affected by many factors including,
Derivative risk but not limited to, prospects of individual companies,
Derivatives are financial instruments that derive their general economic conditions, interest rates, and the level of
performance, at least in part, from the performance of inflation and taxation changes in each country. Movements
an underlying asset, index or interest rate (e.g. futures in investment markets will result in the value of the Fund’s
contracts, forward contracts, options, swaps and Access underlying assets, and the value of your investment,
Products). The use of derivatives involves risk different moving up or down.
from, or possibly greater than, the risks associated Unitholder liability risk
with investing directly in securities or more traditional
The Constitution of the Fund (‘Constitution’) limits your
investments, depending on the characteristics of the
Platform’s liability to the value of the Units your Platform
particular derivative and the Fund as a whole. Derivatives
holds in the Fund. However, we cannot absolutely assure
will permit the Fund to increase or decrease the level of
your Platform that it would not be liable to contribute to
risk of its assets, or change the character of the risk to
the Fund if there were a deficiency, because the law is not
which its assets are exposed. Derivatives may be subject
settled in this respect.
to various types of risk, including market risk, liquidity
risk, counterparty risk, legal risk and operations risk. In The Constitution does, however, allows us to recover from
addition, swaps and other derivatives can involve significant you any taxes or other amounts that we are required to pay
economic leverage and may, in some cases, involve because your Platform holds Units in the Fund or transacts
significant risks of loss. on its investment.
If the Fund was to be liquidated, that Fund’s general
creditors (including but not limited to us) will rank ahead of
This is the risk that the Fund could terminate, the fees Unitholders for repayment. Unitholders will be entitled to
and expenses could change, or our investment managers a proportionate share of the residual balance (if any). This
could change. We have the discretion to increase fees and sum may be less than their initial investment.
expenses or change the Investment Manager in relation
Our approach to managing investments
Fund investments Wellington Management focuses on ‘fundamental
The Goldman Sachs JBWere Global Small Companies company analysis’, which includes a detailed understanding
Wholesale Fund – ARSN 090 047 822 will invest in cash, of individual business franchises, industry and product
investments, and/or units in the Goldman Sachs JBWere specific issues, supported by direct contact with company
Global Small Companies Pooled Fund – ARSN 089 911 651. management, suppliers and competitors.
Goldman Sachs JBWere Asset Management also manages Original research is central to Wellington Management’s
the underlying pooled fund. The investments of the investment style and, in conjunction with the portfolio
underlying pooled fund are consistent with the Fund’s management teams, is a critical element in the construction
objectives and conform to the authorised investments of and management of our international equity portfolios.
the Fund. References in this PDS to the investments held in This investment process combines a number of important
the Fund relate to the underlying pooled fund. factors, including active stock selection and, where
appropriate, active country and sector management. The
Investing in international equities portfolio managers draw on the research of specialist global
Goldman Sachs JBWere Asset Management delegates industry, regional equity, fixed income and macroeconomic
the management of the international assets of the Fund analysts, who together provide a knowledge base of unique
offered in this PDS to US-based Wellington Management breadth and depth.
Company, llp, (‘Wellington Management’). Wellington The identification of investment themes is an important
Management, established in 1928, is one of the oldest and part of some of Wellington Management’s approach. These
largest investment management companies in the United may be based on economic cycles, demographic trends,
States and operates separately of Goldman Sachs JBWere technological changes or political and social developments.
Asset Management. Wellington Management’s sole These themes may pertain to an individual industry or
business is investment management, which it undertakes country, and guide the portfolio managers in their stock
for a range of clients worldwide. Wellington Management selection process to favour or look explicitly for stocks in
employs over 480 investment professionals throughout the locations or industries that will benefit from the identified
world and at 31 December 2007 managed approximately trends. In addition to investment themes, company
A$670 billion in total assets for clients. characteristics and valuation are also considered in the
Wellington Management’s investment expertise is selection of each investment.
built primarily on proprietary, original research, which is Once the investments have been selected for inclusion, the
produced by a dedicated group of analysts. These groups investment team then constructs the portfolio, deciding
include global industry, global macroeconomic, regional, the quantity of each investment to hold in order to create a
fixed income and specialist analysts. The company’s portfolio which best meets the investment objective. Short
portfolio managers use the insights of these analytical selling is not utilised in the management of the Fund.
groups to manage the Fund’s international assets.
Goldman Sachs JBWere Global Small Companies
To achieve medium-to-long term capital growth by investing in smaller companies globally. In doing so, we aim to
outperform the S&P/Citigroup Broad Market Index World less than US$2B ex Australia in A$ over rolling three-year
How will the underlying pooled fund be invested?
• Generally in companies with a market capitalisation below US$2 billion (excluding Australia).
• In securities of companies which are listed or domiciled in countries included in the S&P/Citigroup Broad Market Index
World less than US$2B ex Australia.
• Up to 15% of the portfolio may be invested in companies in emerging markets as defined by the S&P/Citigroup Broad
Market Index Emerging Markets.
• Minimum of 80% invested in equity securities.
• Maximum of 20% invested in cash.
• The currency exposure of this Fund will not be hedged back into A$.
• Generally 180 – 250 securities held in the portfolio across 10 – 30 markets.
Fund size as at 31 January 2008
Variability of returns
Recommended investment time frame
Medium term 5–7+ years
The latest performance, benchmark performance, asset allocation and size of the Fund can be viewed at
www.gsjbw.com/assetmanagement or can be obtained by phoning our Investor Services team on 1800 034 494 or
email firstname.lastname@example.org. Alternatively, your investment adviser may be able to provide you with details.
Fees and other costs
Consumer Advisory Warning
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
your Platform 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.fido.asic.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 when investing in the Fund. These fees and costs may be
deducted from your account balance or from the returns on your investment or from the assets of the Fund as a whole.
Taxes are set out in another section of this document (refer to page 19). You should read all of the information about fees
and costs, as it is important to understand their impact on your investment in the Fund. These fees are in addition to any
fees you pay your Platform. You should refer to the offer document of your Platform for details of those fees and other costs.
Type of fee or cost Amount How and when paid
Fee when your money moves in or out of a Fund
Establishment fee Not applicable
The fee to open your investment
Contribution fee Nil
The fee on each amount contributed to
Withdrawal fee Nil
The fee on each amount you take out of
Termination fee Not applicable
The fee to close your investment
The fees and costs for managing your Estimated ICR is 1.43% pa. Fees are based on the net asset value of the Fund
investment This equates to $715.00 pa for a (excluding deductions for accrued fees and charges).
A measure of the level of management $50,000 investment. Fees and charges are calculated daily and are charged to the
costs is the Indirect Cost Ratio or ICR. Fund before determining the income payable to Unitholders
The estimated ICR (% per annum) is via distribution and before determining Unit prices.
shown in the next column. Fees are paid out of each Fund generally within 14 days
of the end of March, June, September and December.
Expenses are charged as they are incurred.
Switching fee Not applicable
The fee for changing investment options
Additional explanation of fees and costs
Contribution fee • the Fund’s ICR will increase (but we will provide you with
The Constitution of the Fund provides for a contribution fee at least 30 days’ prior notice), or
of up to 5.5% of the value of each contribution made to the • we may advise you of our intention to terminate
Fund. At present no contribution fee is charged. the Fund.
We can increase the maximum amount of management
Withdrawal fee fees charged or include additional expenses which can
The Constitution of the Fund provides for a withdrawal fee be recovered from the Fund by amending the Fund’s
of up to 5.5% of the value of each withdrawal made from Constitution. We can do this only if we reasonably consider
the Fund. At present no withdrawal fee is charged. the change will not adversely affect Unitholder’s rights.
Otherwise, a special resolution of the Fund’s Unitholders
would be required.
The Fund has its own Constitution which governs its
operations. Under the Constitution for the Fund, we are Historical ICRs
entitled to certain levels of management costs including To assist you in comparing the past ICRs of the Fund
management fees and expense recoveries. with those of other managed investment schemes, the
A measure of the level of management costs we charge is ‘Additional fee disclosure table’ on page 11 sets out the
the Indirect Cost Ratio (‘ICR’). historical ICRs for the Fund.
What is the ICR? Breakdown of management costs
The estimated ICR quoted is a general measure of the fees The following provides more information on the
paid and some expenses an investor would incur through management costs charged by the Fund. These are not
an investment in the Fund over and above those expenses additional fees.
an investor would incur by being a direct investor in the
same underlying assets. The ICR for the Fund is the ratio
of the Fund’s management costs that are deducted from We receive an annual management fee calculated as a
the Fund (but are not deducted directly from your account) percentage of the Net Asset Value (‘NAV’) of the Fund.
to the Fund’s average net assets (excluding deductions for The fee is calculated daily and paid monthly. The Fund’s
accrued management fees and charges). Constitution specifies the quantum of the management
fee is determined by the Responsible Entity, subject to the
The estimated ICR includes management fees and certain
maximum fee permitted under the Constitution.
expense recoveries charged to the Fund along with the
Fund’s proportion of certain expenses recovered by the Expense recoveries
underlying pooled fund. It does not include: The Fund will pay certain third party expenses and
• where applicable, any contribution fee, or buy and sell administration costs which may include Custodian fees
spreads (see ‘Buy and sell spreads’ on page 11) and investment management fees. As expense recoveries
are charged to the Fund as and when incurred and at rates
• certain transaction costs recovered from the Fund such as
negotiated between us and our suppliers from time to time,
brokerage, settlement costs, custody costs on settlement
no maximum amounts can be provided. We always aim to
and borrowing costs (see page 11), and government
negotiate commercial fee arrangements with our suppliers.
taxes associated with dealing in the Fund’s underlying
investments (excluded when determining the ICR) which Whilst not part of the expense recoveries of the Fund,
are all recoverable expenses under the Fund’s Constitution. investment in Australian registered managed investment
schemes, including the Goldman Sachs JBWere Cash
The additional fee disclosure table on page 11 sets out the
Reserves Fund, may have their own expense recoveries.
estimated costs of the ICR payable in dollar terms on a
$50,000 investment in the Fund. Professional investors
Could the ICR increase? We may negotiate rebates of our management costs
with certain sophisticated (i.e. wholesale) or professional
We will not permit the actual ICR for the Fund to vary
investors (as defined in the Corporations Act).
by more than 2.5% of the estimated ICR for the Fund
as quoted in the ‘Fees and other costs’ table on page 9 These arrangements reflect terms privately agreed
without at least 30 days’ prior notice to Fund investors. between us and the sophisticated or professional investors.
We will be under no obligation to make arrangements on
The Fund may incur certain expenses which may be either
these terms available to all other investors.
paid directly by us or by the Fund and reimbursed by us
(these will occur at least on a semi-annual basis). We
reserve the right to cease paying, or reimbursing the Fund
A switch between Funds is treated as a withdrawal from
for, those expenses in the future where it is no longer
one Fund and a contribution to another Fund. There is no
economical for us to do so. Should this occur then:
switching fee payable on switching from this Fund to other
Goldman Sachs JBWere Wholesale Funds.
When you switch, the value of your investment will be slightly inclusive of the net impact of GST to the Fund (i.e. any GST
reduced because of the application of buy and sell spreads payable has been reduced by any input tax credits), where
(see ‘Buy and sell spreads’ below) and roundings which are applicable at the rate applying on the date of this PDS. All
built into the calculation of entry and exit Unit prices. other fees and charges are quoted in this PDS inclusive of
GST where applicable, unless otherwise stated.
Adviser Service fee
The following commissions do not include any other Buy and sell spreads
commissions or any fees or expenses that may be agreed A buy and sell spread is applied at the time of contribution
between you and your financial adviser. Your financial adviser and the time of withdrawal. We charge a spread because
should give you details of their remuneration arrangements. if you make contributions to or withdrawals from the
As financial advisers are not our agents or representatives, Fund, the Fund may need to buy or sell assets. These
we are not liable for their acts or omissions. transactions incur costs such as brokerage and security
settlement charges. These charges tend to vary between
different asset classes and different countries. In order to
No up-front commissions are paid to your financial adviser make sure other Unitholders are not penalised when one
on applications made under this PDS. Unitholder buys or sells Units in the Fund, a ‘spread’ is
Trailing commissions applied. Spreads are built into the entry and exit Unit prices.
No trailing commissions are paid to your financial adviser on The monetary value of the spread stays in the Fund to
applications made under this PDS. cover transaction costs – it is not a fee paid to us.
The ‘Additional disclosure fee table’ below sets out the
Insurance premiums spread that is applied both on contributions to the Fund
There is no insurance component associated with the Fund. (buy spread) and on withdrawals from the Fund (sell
spread). We reserve the right to alter these spreads.
For a general overview of the impact of taxation on your Miscellaneous fees
investment, refer to the ‘Taxation’ section on page 19. There are no additional miscellaneous fees charged by us
for investors investing through a Platform.
Goods and Services Tax (GST) However, we are entitled to receive, and will keep, any
The Fund may be required to pay GST on management interest paid in respect of monies held from time to
and other fees and expenses. However, where available, time in the trust accounts established for contributions,
the Fund will claim input tax credits for the GST incurred. distributions and withdrawals.
All references to Indirect Cost Ratio (ICR) are quoted
Additional fee disclosure table
Fund Current estimated ICR Historical ICRs
Estimated Estimated* Year ended Year ended Year ended Spread Maximum Maximum
ICR % pa ICR per 30 June 30 June 30 June applied to both management management
$50,000 2007 % 2006 % 2005 % contributions cost % pa cost per
invested $ pa (buy) and $50,000 $ pa
Global Small 1.43 $715 1.44 1.44 1.44 +/– 0.20 2.20 $1,100
* This does not reflect the actual cost of investing in the Fund.
Example of annual fees and costs
This table provides an example of how the fees and costs for the Fund can affect your investment over a one-year period.
You should use this table to compare this product with other managed investment products.
Example Balance of $50,000 with a contribution of $5,000 during year
Global Small Companies
Contribution fees Nil
Plus management costs 1.43% pa For every $50,000 you have in the Fund you will be charged $715 each year
Equals cost of Fund If you had an investment of $50,000 at the beginning of the year and you put in an
additional $5,000* during that year, you would be charged fees of $715
* Assumes $5,000 investment occurs on last business day of the year.
These fees are in addition to any fees you pay to your Platform. You should refer to the offer document of your Platform for
details of the Platform’s fees and other costs.
For all enquiries regarding administration of your investment or clarification of any of the following information, please
contact your Platform operator.
Information about investing, switching and withdrawing from the Fund
How do you invest? When investing through a Platform you must complete the documents that the Platform requires.
You do not need to fill out any of our forms.
Cooling-off period As you have invested through a Platform, you should check with your Platform as to any cooling-off
rights you have.
How are Unit prices The Unit entry (or exit) price is calculated by:
calculated? • establishing the value of the Fund based on the value of its net assets, which includes
undistributed income (after fees and expenses)
• dividing the value of the Fund by the number of units on issue to determine the net asset value of
• increasing (or decreasing) the net asset value of each unit by the buy (or sell) spread
• rounding the price up (or down) to the nearest 1/100th of a cent.
Your Platform as the Unitholder in the Fund will be allocated Units in the Fund. The number of Units
issued to the Platform operator is determined by dividing the investment amount by the Unit entry
price. The withdrawal value of the Platform investment at any time is determined by multiplying the
number of Units held by the current exit price. The fee and cost arrangement you have with your
Platform may require you to pay additional amounts for it to acquire Units on your behalf and may
mean you receive less than the withdrawal value (as determined by us) from your Platform operator
if you instructed it to withdraw your investment.
The Responsible Entity maintains a Unit pricing discretions policy regarding how it will exercise the
discretion reserved to it in the Constitution of each Fund in relation to the calculation of Unit entry
and exit prices on the future issue and redemption of Units. A copy of this policy is available from
us on request at no charge by calling our Investor Service team on 1800 034 494 or emailing
email@example.com. Alternatively, you may provide a written request addressed to:
Goldman Sachs JBWere Asset Management
Reply Paid 4898
Melbourne Vic 8060
How do we calculate your Distributions are calculated with reference to the number of Units held at the end of the distribution
When do we pay your Distributions are paid out half yearly.
How can you receive Your Platform will provide details of the methods by which you can receive income. Where
distributions?* permitted by the Platform, should you elect to reinvest your distribution in additional Units, the cash
value of your distribution will acquire additional Units in the Fund at the reinvestment price. The
reinvestment Unit price applied to the transaction will be based on the net value of the Fund (after
deducting the value of the distribution being paid) as at close of business on the distribution date. No
buy spread is applied by us when determining the reinvestment price.
How do you withdraw your As you have invested through a Platform, you will need to complete the documents which the
investment? Platform requires of you to withdraw from the Fund. You do not need to fill out any of our forms. The
Constitution provides that the withdrawal will include capital and, if we in our discretion determine,
an income component. We have determined that withdrawals will generally comprise a capital
When do we pay your While the Constitution allows for a maximum period of 30 days for payment of withdrawals, it is our
Platform? usual practice to dispatch payment within seven business days. Payments by us will be made to
your Platform. The occasions when this may take longer include those during which distributions are
being calculated, audited and paid.
How do you switch your Your ability to switch investments should be described in the offer document of your Platform. You
investment? do not need to fill out any of our forms.
For the latest information on • Contact your Platform
the Fund • Unit prices are also published regularly in selected major national and metropolitan newspapers
• Visit our website at www.gsjbw.com/assetmanagement
* For more information regarding distributions, please refer to ‘Distributions’ on page 14.
Additional investment information
Distributions Income distributions
This section does not affect or describe the way in which Income generated by the Fund takes the form of interest,
you receive income arising from your investment in the company dividends, distributions, currency gains and
Fund from your Platform. You should refer to the disclosure realised capital gains. The amount you receive will
document prepared by your Platform and any contract depend on the number of Units you hold for the end of a
between you and your Platform in relation to returns on distribution period.
your investments for more detail on how you receive Your Platform will receive its share of Fund income (if any)
income from your Platform. half yearly.
What makes up the return on my investment? While the Fund’s Constitution allows up to two months
The return you receive as a Fund investor is made up of after the end of each distribution period to pay distributions,
two things: a growth return and a distribution return. we aim to pay them as soon as practicable.
The growth return is measured by the movement in the The amount available for distribution by the Fund is the net
Unit price, and can be positive or negative, as the Unit income at the end of each distribution period. We prefer
price can fluctuate with changes in the market value of the to distribute net income comprising interest, company
underlying assets. dividends and distributions at each interim distribution, with
all other net income (including currency gains and realised
The distribution return is essentially the amount of
capital gains) for the distribution period ending 30 June.
income that is paid as a distribution. Depending on your
Platform, you may be able to instruct us to reinvest this The income distributed by the fund is likely to be primarily
amount. If you do this, the number of Units you hold will realised capital gains. It is therefore unlikely that the fund
increase as distributions are reinvested on your behalf. will pay an interim distribution, i.e. a distribution at a period
of time other than for the 30 June period. In these instances,
The performance numbers we publish in the performance
any income will be retained in the Fund and paid in the
tables listed on our website assume that any distributions
distribution period ending 30 June. It is unlikely that the Fund
have been reinvested and are quoted net of fees. They also
will pay any distribution in periods where equity markets have
do not take taxation into account. If you do not reinvest
not made capital gains nor appreciated in value.
your distributions, the performance of your investment may
appear to be different to our published performance. If you Income is included in the Unit price
have any queries about the Fund returns, please contact When we calculate Unit prices between distribution periods,
your Platform operator. we include net income in the net value of the Fund. Unit entry
and exit prices are adjusted at the end of each distribution
period to reflect the amount of any distribution paid.
If your Platform invests just prior to the end of a distribution
period, the Unit price will include the income about to be
distributed. Shortly after it makes its investment it will
receive an income distribution which may represent a
taxable return on its investment.
Important additional information
Goldman Sachs JBWere Managed Funds Limited As a Unitholder, your Platform has the right to:
– the ‘Responsible Entity’ • participate in distributions of capital and income from
The Responsible Entity for the Fund is Goldman Sachs the Fund
JBWere Managed Funds Limited, a wholly owned • receive financial statements
subsidiary of Goldman Sachs JBWere Capital Markets
• attend and vote at meetings (and to call meetings in
Limited. At 31 December 2007 Goldman Sachs JBWere
Managed Funds Limited managed more than A$8.1 billion
of investors’ funds. • have complaints handled in accordance with the
complaints handling procedures set out in the Constitution
Under the Corporations Act, a Responsible Entity is
required to either have a board of directors comprising • request the withdrawal of your investment (in accordance
not less than one half external directors, or to appoint with the Corporations Act), and
a compliance committee with a majority of external • convene a meeting of Unitholders at any time (by giving
representation. We comply by having a board of directors at least 21 days’ notice) to consider and vote on a
which includes not less than one half external directors. proposed resolution if a meeting is requested by:
As the Responsible Entity, we are subject to various duties - Unitholders with at least 5% of the votes that may be
imposed by the Constitution and the Corporations Act. cast on the resolution
We have appointed a custodian for the Fund. The role - at least 100 Unitholders who are entitled to vote on
of Custodian is limited to holding and maintaining the the resolution.
assets of the Fund as an agent of the Responsible Entity.
The Custodian has no supervisory role in relation to the Compliance plan
operations of the Fund and is therefore not responsible for As required by the Corporations Act, we have lodged with
protecting your interests. The Custodian has no liability or ASIC a compliance plan for the Fund, which sets out the
responsibility to you for any act done or omission made in measures we have in place to monitor compliance with our
accordance with the terms of the custodian agreement. obligations under the relevant constitution and the law. Our
adherence with the compliance plan is audited annually.
The Fund is governed by its Constitution and the Complaints resolution
Corporations Act. The Constitution deals with our Investors investing through a Platform should, in the first
responsibilities and obligations as the Responsible Entity instance, contact the operator of that Service.
and your Platform’s rights as a Unitholder. The Constitution
is required by law to contain certain minimum provisions. Change of Responsible Entity and Compliance
We can change the Constitution, but if we consider the Plan auditor
change will adversely affect Unitholders’ rights, we must If we want to retire as Responsible Entity of the Fund,
obtain Unitholders’ approval by special resolution given at we must convene a meeting of Unitholders to choose
a meeting of the Unitholders (unless otherwise permitted a new Responsible Entity. We can also be removed
pursuant to ASIC relief or under the Corporations Act 2001). as Responsible Entity for the Fund by an extraordinary
You can inspect the Constitution at our Melbourne resolution of Unitholders.
Administration Office or it can be made available to you by The Fund’s Compliance Plan auditor can retire or be
calling our Investor Services team on 1800 034 494. removed by us as auditor of the Fund only with the consent
Important additional information continued
Limits on borrowing Payments to your Platform
We may borrow up to 20% of the value of the Fund’s We may make volume based payments to a Platform,
assets to redeem units or to distribute income. Other where they include one or more of our managed investment
borrowing is not permitted. schemes on their menu. Such payments by us do not
exceed 0.38% pa (equivalent to $380 pa for every $10,000
Notice to Platforms invested) of the relevant Platform’s total investment in
Investors in any Platform that is authorised by us to use this relation to each particular Fund. We may also make flat-fee
PDS may rely on the information in this PDS (as varied by this payments to Platforms where they include one or more
paragraph) for the purposes of any application to invest in the Funds on their menu. Such payments do not exceed $10,000
Fund and also any direction or instruction given by the investor pa and may be in addition to or instead of volume based
to invest in the Fund during the currency of this PDS. payments. Any Platform payments are deducted from our
We will not accept an application by an investor in a management fee and are not a separate charge to you.
Platform for investment in the Fund if the relevant Platform
is not authorised to use this PDS. Alternative forms of remuneration
We do not participate in banned alternative forms
Where an investor in a Platform directs the operator,
of remuneration (also called soft-dollar commission
Responsible Entity or trustee of that Platform to acquire
arrangements). These are certain industry-banned
Units in the Fund on their behalf they do not become
arrangements where rewards or other benefits are paid
Unitholders in the Fund and accordingly have no rights as
to financial intermediaries over and above disclosed
a Unitholder. The operator, Responsible Entity or trustee
commissions based on the quantum of monies placed into
of the Platform (or their Custodian) is the direct investor,
our Funds. We do, however, participate in sponsorship of
and becomes a Unitholder. It is up to the Responsible
certain industry events on a commercial basis.
Entity or trustee of the Platform to determine whether it
will exercise its rights as a Unitholder in the Fund on behalf We keep an ‘alternative forms of remuneration register’
of the investor in that Platform. This will depend on the in line with standards set down by the Investment and
arrangements between the investor in the Platform and the Financial Services Association, of which we are a member.
Platform operator, Responsible Entity or trustee. Other fund managers, Platforms, and licensees and their
representatives maintain similar registers.
Accordingly, for the purposes of determining whether
an investor in a Platform should make a direction to The register outlines the alternative forms of remuneration
the Platform Responsible Entity or trustee to acquire which are paid and received by those entities.
Units in the Fund, investors in a Platform should ignore Our register is publicly available and can be sent to you at
information in the PDS which is relevant only to direct your request within 7 days by calling our Investor Services
investors, in particular, those sections entitled ‘Transfer of team on 1800 034 494.
Units’, ‘How do you invest?’, ‘How do you withdraw your
investment?’, ‘How do you switch your investment?’, ‘What Transfer of Units
documentation will you receive?’, ‘How can you transact Subject to the Constitution, your Platform may transfer Units
over the phone?’ and ‘Taxation’, and references to your in the Fund to another person by providing the Manager with
rights as a Unitholder. a signed and complete standard transfer form. A transfer
of Units involves a disposal of Units, which may have tax
implications for you (see ‘Taxation’ on page 19).
Suspension of contributions and withdrawals Payment errors
We may suspend withdrawals from the Fund for up to 28 In the event that we make an error in the processing of a
days where it is impracticable for us to calculate the value of Unitholder application or withdrawal request, we reserve
the Fund due to unforeseen circumstances (as set out in the the right to amend the error on discovery.
Fund’s Constitution). Unforeseen circumstances include: In the event we make an error by crediting an amount to your
• closure of, or trading restrictions on, stock or securities Platform account to which you were not entitled, we reserve
exchanges the right to recover any such amounts from your Platform.
• an emergency or other state of affairs
• on declaration of a moratorium in a country where the
If there are more than 100 Unitholders of a Fund, that
Fund invests or under the Corporations Act.
Fund will become a disclosing entity and will be subject
In this situation, the Unit entry and exit prices will be based to regular reporting and disclosure obligations. In those
on the value of the Fund applicable after the end of the circumstances, a copy of the annual financial report and
suspension period. the half-year financial report most recently lodged with
ASIC for that Fund will be given to you on request. Copies
Termination of documents lodged with ASIC for that Fund may be
The Fund will terminate on: obtained from, or inspected at, an ASIC office.
• the expiration of 80 years less one day from the date of
unless the Fund is terminated earlier by:
• the Manager electing to wind it up by giving notice to the
• extraordinary resolution of Unitholders resolving to wind
Upon termination, the investments of the Fund will be
realised. The costs of realisation and any amounts owed
to the Manager will be deducted from the proceeds and
the balance distributed to Unitholders in proportion to the
number of Units held.
Important additional information continued
Disclosure of entitlements Ethical Considerations
The Directors of Goldman Sachs JBWere Asset Goldman Sachs JBWere Investment Management Pty Ltd
Management are entitled to participate in employee takes environmental, social and ethical considerations and
remuneration arrangements of, and may hold shares in labour standards into account when assessing the financial
members of, the Goldman Sachs JBWere Group and/or performance and investment case of our non-quantitative
may hold Units in the Funds. Australian equity investments.
What we consider constitutes such standards and
Consents considerations and the extent that we may consider
Goldman Sachs JBWere Investment Management Pty Ltd these in the investment decision making process is not
has consented and has not before the date of this PDS predetermined; they may vary from time to time and/or on
withdrawn its consent, to the inclusion of the description of a case by case basis. Therefore, the extent to which they
its investment approach appearing on page 18, in the form are considered when making decisions relating to selecting,
and context in which those statements are made. retaining or realising our non-quantitative Australian equity
Wellington Management has consented and has not before investments cannot be quantified.
the date of this PDS withdrawn its consent to the inclusion For investments in other asset classes or when selecting
of statements on pages 7 and 18 regarding: external investment managers we may or may not consider
• its corporate profile labour standards, environmental, social or ethical considerations.
• its investment approach Investment decisions by these external investment managers
may or may not incorporate these factors.
in the form and context in which they are included.
Wellington Management Company, llp treats environmental,
Ernst and Young has consented and has not withdrawn
social, and ethical issues like any other aspect of investment
its consent before the date of this PDS to the inclusion of
analysis, and takes them into account to the extent that
the statements appearing in the section headed ‘Goods
they have an impact on company or portfolio performance.
and services tax’ on page 11 and the section headed
This can manifest itself within the investment thesis for
‘Taxation’ on pages 19 and 20 in the form and context
a particular stock, as well as within the development
which they are included.
and implementation of well-reasoned proxy voting and
company engagement policies. As scientific, political, and
public opinions have shifted in recent times to make the
financial impact of these issues more tangible, Wellington
Management is dedicating more resources to analysing
these issues. This organic growth of analysis varies by
sector, geography, and investment style, and Wellington
Management expects this growth to continue.
General Foreign income and foreign tax credits
The tax comments below: The Fund may distribute amounts of foreign income and
• provide a broad overview of the Australian income tax foreign tax credits attaching to that income. As with
and Goods and Services Tax (GST) implications for a franking credits, these amounts need to be included in
Platform which is a Unitholder investing in the Fund and the calculation of a Unitholder’s taxable income, however
for certain Platform Investors. The tax comments below the foreign tax credits will be limited to the amount of
do not, however, cover all the Australian tax implications Australian tax payable on foreign income of the same class.
of investing in the Fund (nor do the comments deal with Currently, excess foreign tax credits may be carried forward
any taxes, however described or calculated, that might be and used to offset foreign income of the same class. The
imposed by any foreign jurisdiction); quarantining of foreign tax credits within classes of foreign
income will cease to apply from 1 July 2008. For further
• relate to an Australian resident Platform who is a
details, refer to ‘Taxation Reform’ below.
Unitholder and an Australian resident individual Platform
Investor who is absolutely entitled to an interest in the Accrual amounts
Fund as against the Platform and where the interest is Although not generally expected, it is possible that a
held by that individual on capital account (other than the distribution from a Fund with foreign investments may
comments contained in the paragraph below ‘Taxation of include a Foreign Investment Fund (FIF) attribution amount.
Non-Resident Unitholders’); If the annual income statement includes a FIF attribution
• are based on the Australian tax laws as in force at the amount, Investors should seek specific tax advice.
date of issue of this PDS. Tax laws, and the interpretation
Distributions of capital gains
of tax laws by the Australian Taxation Office and/or the
Where the Fund makes a distribution which includes a net
courts, may change such that the following comments
capital gain, Investors may be required to gross up the net
might not reflect the tax consequences for Unitholders at
capital gain (that is, add back the capital gains tax discount
a particular time in the future; and
amount, if any). Investors may then apply any capital
• do not constitute taxation advice. losses to reduce the grossed up capital gain. Finally, where
Accordingly, it is recommended that both Unitholders and applicable, Investors may be able to apply the capital gains
Platform Investors (collectively referred to as Investors) tax discount (50% for individuals and certain trusts and
obtain advice from their professional advisers, particular to 33.33% for complying superannuation funds) to arrive at
their own circumstances, prior to investing in or otherwise their net capital gain. This amount should be included in the
dealing with their Units. calculation of an Investor’s taxable income.
Investors should obtain specific professional advice about
Taxation of the Fund the availability of the capital gains tax discount.
The Fund will be an Australian resident trust for Australian
income tax purposes and the income of the Fund should Tax deferred amounts
‘flow through’ to Unitholders on the basis that Unitholders Tax deferred amounts can arise if the Fund makes certain
are presently entitled to the net income of the Fund. The payments to Unitholders and some or all of the payments
Fund itself should not pay income tax. are not included in the Investors’ assessable income.
If the Fund incurs a tax loss, that tax loss cannot be passed Although tax deferred amounts are generally not subject to
on to Unitholders for income tax purposes. However, any income tax (and therefore are not required to be included
tax losses can be carried forward by the Fund and, subject in an Investor’s tax return), such amounts reduce the cost
to the Fund satisfying various requirements, be offset base of a Platform Investor’s Units. This may increase the
against relevant assessable income derived by the Fund in assessable capital gain or decrease the capital loss when
a later year. the Platform Investor ultimately disposes of their Units.
Distributions of capital gains tax Concession Amounts (the
Taxation of Resident Unitholders non-assessable component of a capital gain subject to the
The net income distributed to Unitholders may comprise capital gains tax discount) should not cause any adjustment
various amounts, including interest, dividends, distributions to the cost base of a Platform Investor’s Units.
and gains on the disposal of investments. Unitholders will be Taxation on Withdrawal, Switching or Transfer
assessed on their share of the taxable income of the Fund, of Units
in the year in which their entitlement relates (even if the The withdrawal, switching or transfer of Units by a
distribution is reinvested into additional Units in the Fund). Unitholder will generally constitute a disposal of those Units
Franking for capital gains tax (CGT) purposes. However, the CGT
The Fund will seek to distribute any franking credits implications of a disposal depends upon whether or not the
attaching to franked dividends. These amounts will Platform Investor is absolutely entitled to the Units in the
generally be included in the calculation of a Unitholder’s Fund as against the Platform. Platform Investors should
taxable income. Depending upon the particular seek independent professional advice as to whether or not
circumstances, Platform Investors may be able to offset the they have absolute entitlement.
franking credits against any resulting tax liability, or be paid If the Platform Investor is absolutely entitled to the Units in the
a refund if the franking credits exceed their total tax liability. Fund as against the Platform, any CGT event that happens to
the Units in the Fund will be regarded as giving rise to a CGT Taxation of Financial Arrangements
event to that Platform Investor (and not the Unitholder). On 20 September 2007, the Government introduced into
A capital gain will arise where the capital proceeds on Parliament the Tax Laws Amendment (Taxation of Financial
disposal exceed the cost base of the Units disposed of. A Arrangements) Bill 2007, (the Bill) containing stages 3 and
CGT discount of 50% may be applied by individual Platform 4 of the Taxation of Financial Arrangements (TOFA) reform
Investors against the net capital gain where the Units have program. The Bill subsequently lapsed with the calling of
been held by that individual for at least 12 months and the Federal election, however, it is expected that the Bill
certain other requirements have been met. will be re-introduced this year. If the Bill is re-introduced
A capital loss will arise where the capital proceeds on in substantially the same form as the lapsed Bill, the rules
disposal are less than the reduced cost base of the Units may have application to certain financial arrangements
disposed of. A capital loss may be offset against current or that the Fund starts to have in income years commencing
future capital gains (prior to application of the CGT discount). on or after 1 July 2009. However, the Fund may elect to
apply the rules to an income year commencing on or after
Last Remaining Unitholders 1 July 2008, and/or to bring within the TOFA rules certain
There is a risk that where the Fund has a small number of financial arrangements that the Fund started to have before
remaining Unitholders, the cash amount distributed may be the relevant commencement date.
less than the taxable income distribution.
Goods and Services Tax (GST)
Taxation of Non-Resident Unitholders The acquisition of Units and subsequent disposal or redemption
Distributions to non-resident Unitholders may have tax of Units in the Fund will not be subject to GST, regardless of
withheld by the Manager or may be subject to applicable whether or not the Unitholder is registered for GST. In the
rates of non-resident withholding tax (also withheld by instance the Unitholder is registered for GST, these transactions
the Manager), depending upon the nature of the amount will be considered input taxed financial supplies.
distributed and the Unitholder’s country of residence. Furthermore, the receipt of distributions does not give rise
Non-resident Unitholders may be entitled to a credit in their to any GST consequences as such amounts are considered
country of residence for the Australian tax withheld. Non- to be outside the scope of GST.
resident Unitholders should seek specific tax advice in their
However, Platform Investors should seek independent
advice with respect to the GST consequences arising from
Tax may be withheld from distributions relating to capital their investments.
gains derived by the Fund from the disposal of assets that
are taxable Australian property. Generally, assets are only Annual Income Statement
taxable Australian property where the asset is Australian To assist in the preparation of a Unitholder’s income
real property, a non-portfolio (10% or more) share or tax return, the Manager will provide an annual income
interest in a land rich entity, or an asset used in carrying distribution statement. This statement will contain details
on a business through a branch in Australia. Non-resident of income, capital gains and any tax credits included in the
Investors may be entitled to the 50% capital gains tax distribution from the Fund.
discount, depending on their circumstances.
Tax File Number (TFN), Exemptions and
Non-resident Investors should generally not be subject to
Australian tax on capital gains realised on the withdrawal or
Australian Business Number (ABN)
transfer of Units in the Fund, unless the Fund is regarded as It is not compulsory for a Unitholder to quote their TFN or
a land rich entity. their exemption details, however if a Unitholder does not,
the Manager may be required to deduct tax at the highest
Taxation Reform marginal rate (currently 45%) plus Medicare Levy (1.5%)
Foreign losses, foreign tax credits and quarantining from any income payable. Unitholders that hold Units as part
of an enterprise may quote their ABN instead of their TFN.
The Tax Laws Amendment (2007 Measures No. 4) Act
2007, will remove the current quarantining of foreign
losses and of foreign tax credits against particular classes
The taxation information has been provided by Ernst &
of foreign income. The Act will also remove the ability to
Young, which is not required to hold an Australian Financial
carry forward excess foreign tax credits from 1 July 2008.
Services Licence (AFSL) under the Corporations Act 2001,
This may impact the tax net income calculation of the
in order to provide this information. The information is
Fund where it has foreign income or losses (as well as the
confined to taxation issues and is only one of the matters
taxable income calculation of Platform Investors).
that must be considered when making a decision about
investing in the Fund. Investors should consider taking
advice from a holder of an AFSL before making a decision
about investing in the Fund.
Offices of the Manager
101 Collins Street
Melbourne, VIC 3000
Melbourne administration office
Our Melbourne Administration Office is the office to which all applications,
withdrawal and switching requests must be directed.
Reply Paid 4898
Melbourne Vic 8060
Telephone (03) 9679 1444
Freecall 1800 034 494
Facsimile (02) 8262 5461
Freecall facsimile 1800 624 983
Ausdoc number DX 39813, 101 Collins, VIC