Goldman Sachs JBWere Global Small Companies Wholesale Fund


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Goldman Sachs JBWere Global Small Companies Wholesale Fund

  1. 1. 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
  2. 2. Contents 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 Taxation 19 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, 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).
  3. 3. Important information 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. 1
  4. 4. Introducing Goldman Sachs JBWere Asset Management 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 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 time frame Variability of returns High Contribution fee Nil Withdrawal fee Nil Estimated management costs 1.43 % pa (see page 10) Contributions Daily Minimum initial investment Please refer to your Platform for details Minimum additional Please refer to your Platform for details investment Withdrawals Daily 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. 2
  5. 5. 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 Stock Exchange. 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. 3
  6. 6. 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. Diversification 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). 4
  7. 7. 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 5
  8. 8. 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 Fund risk 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 6
  9. 9. 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. 7
  10. 10. Goldman Sachs JBWere Global Small Companies Wholesale Fund 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. 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 $425.5 million Variability of returns High Recommended investment time frame Medium term 5–7+ years Fund performance The latest performance, benchmark performance, asset allocation and size of the Fund can be viewed at or can be obtained by phoning our Investor Services team on 1800 034 494 or email Alternatively, your investment adviser may be able to provide you with details. 8
  11. 11. 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 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 your investment Withdrawal fee Nil The fee on each amount you take out of your investment Termination fee Not applicable The fee to close your investment Management costs 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. Service fees Switching fee Not applicable The fee for changing investment options 9
  12. 12. 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 Management costs 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 Management fees 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 Switching fee 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. 10
  13. 13. 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 Up-front commissions 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. Taxation 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 withdrawals (sell) % Global Small 1.43 $715 1.44 1.44 1.44 +/– 0.20 2.20 $1,100 Companies Wholesale Fund * This does not reflect the actual cost of investing in the Fund. 11
  14. 14. 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 Wholesale Fund 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. 12
  15. 15. Investment instructions 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 each unit • 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 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 distributions?* period. When do we pay your Distributions are paid out half yearly. distributions?* 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 component only. 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 * For more information regarding distributions, please refer to ‘Distributions’ on page 14. 13
  16. 16. 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. 14
  17. 17. 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 certain circumstances) 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 Constitution 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 of ASIC. 15
  18. 18. 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). 16
  19. 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 Disclosing entity • 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 its establishment unless the Fund is terminated earlier by: • the Manager electing to wind it up by giving notice to the Unitholders, or • extraordinary resolution of Unitholders resolving to wind it up. 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. 17
  20. 20. 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. 18
  21. 21. Taxation 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 19
  22. 22. Taxation continued 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 home country. 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 Warning 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. 20
  23. 23. Offices of the Manager Registered office Level 17 101 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. Contact details 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 Email Website ME181_4325_G_FEB08 21
  24. 24. Back cover only