Download MLC Investment Trust Product Guide

MLC Investment Trust
Product Guide
Preparation date
1 July 2014
Issued by The Trustee,
MLC Investments Limited
ABN 30 002 641 661
AFSL 230705
The purpose of this guide is to give you
the information you need to decide whether
MLC Investment Trust is right for you.
This MLC Investment Trust Product Guide
(‘Guide’) provides additional information about
topics under the prescribed sections of the
Product Disclosure Statements (PDSs) listed on
page 3 of this Guide. The information in this
Guide forms part of those PDSs.
This Guide and the PDSs contain important
information you should consider before
making an investment decision in relation to
the products listed on page 3. The information
provided in this Guide and the PDSs is general
information only and does not take into
account your personal financial situation or
needs. We recommend you obtain financial
advice for your own personal circumstances
before making any investment decision.
Contents
About MLC
4
Trusts covered by this Guide
5
How the Trusts work
6
Risks of managed investment schemes
8
How we invest your money
12
Fees and costs
14
Keeping you informed
16
MLC Wholesale Investment Trust Product Guide | 3
About MLC
Who you go through life with makes all the difference
The MLC group has been looking after
Australians’ investment and insurance
needs for over 125 years.
This experience has taught us the right
solution for each investor is unique.
That’s why we specialise in creating a
diverse range of super, investment and
insurance solutions.
We do this so you and your financial
adviser can grow and protect your wealth
the way you want to.
And, as your needs will change with time,
we’ll continually enhance our products
and services so you can get the best out
of your experience with us.
Investing with us
We’re experts in putting together
portfolios for people. Our portfolios
have different investment objectives
because we know everyone has different
ideas about how their money should be
managed.
Our portfolios make sophisticated
investing straightforward.
Using our market-leading investment
approach, we structure our portfolios to
deliver more reliable returns in many
potential market environments.
And, as our view of world markets
changes, we evolve our portfolios to
manage new risks and capture new
opportunities.
We use specialist investment managers
in our portfolios. We have both expert
inhouse managers and the experience
and resources to find some of the best
managers from around the world.
Importantly, we stay true to the
objectives of our portfolios so you can
keep on track to meeting your goals.
4 | MLC Wholesale Investment Trust Product Guide
Trusts covered
by this Guide
Trusts
ARSN
PDS Date
MLC Wholesale Horizon 1 Bond Portfolio
117 295 495
1 July 2014
MLC Wholesale Horizon 2 Income Portfolio
117 295 584
1 July 2014
MLC Wholesale Horizon 3 Conservative Growth Portfolio
096 796 379
1 July 2014
MLC Wholesale Horizon 4 Balanced Portfolio
087 446 375
1 July 2014
MLC Wholesale Horizon 5 Growth Portfolio
087 446 633
1 July 2014
MLC Wholesale Horizon 6 Share Portfolio
096 796 075
1 July 2014
MLC Wholesale Horizon 7 Accelerated Growth Portfolio
102 215 501
1 July 2014
MLC Wholesale Inflation Plus – Conservative Portfolio
165 016 035
1 July 2014
MLC Wholesale Inflation Plus – Moderate Portfolio
165 016 151
1 July 2014
MLC Wholesale Australian Share Fund
087 447 078
1 July 2014
MLC Wholesale Australian Share Growth Style Fund
111 074 125
1 July 2014
MLC Wholesale Australian Share Index Fund
150 845 971
1 July 2014
MLC Wholesale Australian Share Value Style Fund
111 074 054
1 July 2014
MLC Wholesale Diversified Debt Fund
130 171 078
1 July 2014
MLC Wholesale Global Property Fund
124 947 164
1 July 2014
MLC Wholesale Global Share Fund
087 446 875
1 July 2014
MLC Wholesale Global Share Growth Style Fund
111 074 170
1 July 2014
MLC Wholesale Global Share Value Style Fund
111 074 152
1 July 2014
MLC Wholesale Hedged Global Share Fund
124 946 998
1 July 2014
MLC Wholesale IncomeBuilder
087 447 265
1 July 2014
MLC Wholesale Property Securities Fund
087 447 425
1 July 2014
MLC Horizon portfolios
MLC Inflation Plus portfolios1
MLC asset class funds
1 There is a third Inflation Plus portfolio known as MLC Wholesale Inflation Plus – Assertive Portfolio which does not
form part of this Product Guide. The PDS for the MLC Wholesale Inflation Plus – Assertive Portfolio is available at
www.mlcinvestmenttrust.com.au/mlcit/product_disclosure_statements
MLC Wholesale Investment Trust Product Guide | 5
How the
Trusts work
Opening an account
Overseas investors
If you invest in the Trusts via an IDPS,
please contact your IDPS operator for
details of how to invest with your IDPS.
This PDS only constitutes an offer if
received in Australia or New Zealand.
The Trusts may accept investors who are:
•
•
resident in Australia, or
resident in New Zealand and their
principal business is the investment
of money or, in the course of and
for the purposes of business, they
habitually invest money.
In addition some of the Trusts are
restricted to a ‘wholesale client’ within
the meaning of the Corporations Act
2001. If this applies it is indicated in
section 2 of each Trust’s PDS.
Investors who satisfy the above criteria
may invest directly in the Trusts. You
should, however, contact us to discuss
the application requirements before
making your first investment in the
Trusts. We will advise what you need to
do. Among other things, we may need
to request formal identification from
you before you can invest. Until all our
requirements are satisfied we cannot
accept an application.
If at any time after investing in the
Trusts you no longer satisfy the
eligibility criteria, you must advise us
and we may redeem your unitholding.
6 | MLC Wholesale Investment Trust Product Guide
As at the date of this PDS, no action has
been taken to register or qualify the units
or offer or otherwise permit the public
offering of the units outside Australia or
New Zealand. If you come into possession
of this PDS outside Australia or New
Zealand you should seek advice on and
observe any such restrictions imposed
by law. Any failure to comply with such
restrictions may violate securities laws in
that jurisdiction.
This PDS does not constitute an offer
or invitation in any jurisdiction in which
it would be unlawful to make such
an offer or invitation. We reserve the
right to make an offer of units to any
institutional investor outside Australia
or New Zealand where to do so would
not be in breach of the securities law
requirements of the relevant jurisdiction.
Applications and withdrawals
If accepted, application requests received
by MLC before 3:00 pm (Sydney time) on
any Business Day will receive that day’s
unit price. Application requests received
after 3:00 pm will receive the next
Business Day’s unit price.
Application money received will be held
in trust until processed. We will not
process your application unless we have
received all required information. If we’re
unable to process your application
within 30 days of receipt we will return
your money to you. Any interest earned
during this time will be kept by us.
If accepted, withdrawal requests received
by the Trusts before 3:00 pm (Sydney
time) on any Business Day will normally
receive that day’s unit price. Requests
received after 3:00 pm will normally
receive the next Business Day’s unit
price. Once lodged, withdrawal requests
may not be withdrawn except with
our consent.
We may deduct from a withdrawal
payment any amount owed under the
constitution, including taxes. We may
also redeem some or all of an investor’s
unitholding in the Trusts to satisfy any
such amounts or if we form the opinion
that the unitholding is prejudicial to the
interests of other investors.
We can only process transaction
requests when we receive all required
information. We will not be responsible
for any loss arising from unauthorised or
fraudulent requests.
Identity verification documents
Under the Anti-Money Laundering
and Counter-Terrorism Financing Act
2006 (Cth), we are required to collect
an original certified copy of original
document(s) (not fax or scanned copies)
to correctly verify your identity. We
may also need to verify the identity of
related parties. Until we receive such
document(s) we reserve the right to
withhold processing any withdrawal
requests you wish to make.
Business Days
Unit pricing
Transfers
Business Days are generally days on
which banks are open for business in
Sydney (except Saturday, Sunday and
public or bank holidays or such other
days as we determine from time to time).
We have the discretion to declare any day
to be a Business Day.
The overall value of your investment in
the Trusts will change according to the
unit price and the number of units held.
If you invest directly in the Trusts you
may be able to transfer all or some of
your unitholding in the Trusts to another
eligible investor.
Income distributions
If you invest in the Trusts via an IDPS,
please contact your IDPS operator for
details of how to receive any income
distributions from the Trusts.
Our policy is to distribute the net taxable
income of the Trusts to investors each
year (including net capital gains and
any net gains on currency management
where applicable).
To be eligible to receive a distribution
you must hold units in the Trusts on the
distribution calculation date. You can
request to have income distributions:
•
•
reinvested in the Trusts, or
paid into your bank account.
We may, in our absolute discretion,
accept or reject any such request. If you
do not make a selection we will reinvest
the income back into the relevant Trusts.
The unit price will reflect the
performance of the underlying assets,
income earned, fees, expenses and taxes
paid and payable. The performance
of the underlying assets is influenced
by movements in investment markets.
For unlisted assets MLC has policies
and guidelines to manage asset
valuations including valuation lags.
We usually calculate the unit price as at
the end of each Business Day and use
robust unit pricing policies to do this.
Our unit pricing philosophy is available
at www.mlc.com.au
If there is a unit pricing error that
substantially impacts the Trusts’
performance, an adjustment may
be made. This will generally involve
reprocessing affected transactions
using the corrected unit price and/or
by adjusting your account. The value
of your investment could be increased
or decreased as a result.
Investing in other MLC funds
The Trusts may access investment
managers via other funds operated
by MLC, via other managers’ pooled
investments and may also hold
direct assets.
Unitholders’ liability
The Trusts’ underlying assets are
owned by the Trustee on behalf of
investors. The Trusts’ constitutions limit
unitholders’ liability to their investment
in the Trusts. However, we cannot give
an absolute assurance that your liability
to the Trusts or any creditor of the
Trusts (for geared funds) is limited in all
circumstances, as the issue has not been
finally determined by a superior court.
If you elect to have any income
distributions reinvested, units will
be issued at the unit price applicable
at the distribution calculation date.
Transaction cost allowances do
not currently apply to the issue of
these units.
MLC Wholesale Investment Trust Product Guide | 7
Risks of managed
investment schemes
Diversify to reduce volatility
and other risks
Diversification—investing in a range
of investments—is a sound way to
reduce short-term volatility and help
smooth a portfolio’s returns. That’s
because different types of investments
perform well in different times and
circumstances. When some are providing
good returns, others may not be.
Portfolios can be diversified across types
of investments, industries and countries
as well as across investment managers
with different approaches.
The more you diversify, the less impact
any one investment can have on
your portfolio.
One of the most effective ways of
reducing volatility is to diversify across
a range of asset classes.
Diversification across asset classes
is just one way of managing risk.
At MLC, our multi-asset portfolios
diversify across asset classes and
investment managers. Please
read more about our investment
approach on page 12.
Asset classes
Asset classes are groups of similar
types of investments.
Each class has its risks and benefits,
and goes through its own market cycle.
A market cycle can take a couple of years
or many years; it’s different each time.
In the description of the investment
options (in each Trust’s PDS), we
include a minimum suggested time
8 | MLC Wholesale Investment Trust Product Guide
to invest. Investing for the minimum
time or longer improves your chances
of achieving the return you expect.
However, returns can’t be guaranteed.
•
Returns typically comprise interest
and changes in the market value of
the security.
•
There are different types of fixed
income securities and these will have
different returns and volatility.
•
The market value of a fixed income
security may fall due to factors such
as an increase to interest rates or
concern about defaults on loans.
This may result in a loss on your
investment.
•
The interest rate on a term deposit
is fixed for its specified term. That
means if held until maturity the
term deposit won’t be affected by an
increase or decrease in interest rates.
•
Fixed income securities denominated
in foreign currencies will be exposed
to exchange rate variations.
You need to be prepared for all sorts
of return outcomes when investing.
Here are the main asset class risks and
benefits.
Cash
Cash is generally a low risk investment.
Things to consider:
•
Cash is often included in a portfolio
to meet liquidity needs and for its
defensive characteristics.
•
The return is typically all income and
is referred to as interest or yield.
•
Cash is usually the least volatile type
of investment. It also tends to have
the lowest return over a market cycle.
•
The market value tends not to change.
However, when you invest in cash,
you’re effectively lending money to
businesses or governments that could
default on the loans. A default could
result in a loss on your investment.
•
Many cash funds invest in fixed
income securities that have a very
short term until maturity.
Property securities
Investing in property securities will give
your portfolio exposure to listed property
securities in Australia and around the
world. These are referred to as Real Estate
Investment Trusts (‘REITs’).
Things to consider:
•
Fixed income (including
term deposits)
Property securities may be volatile
and are usually included in a
portfolio for their income and growth
characteristics.
•
When investing in fixed income, you’re
effectively lending money to businesses
or governments.
Australian property securities are
dominated by only a few REITs and
provide limited diversification.
•
Returns are driven by many factors
including the economic environment
in various countries.
•
Investing outside Australia
means you’re exposed to exchange
rate variations.
Things to consider:
•
Fixed income securities are usually
included in a portfolio for their income
and defensive characteristics.
Australian shares
Alternatives
This asset class consists of investments
in companies listed on the Australian
Securities Exchange (and other regulated
exchanges). Shares are also known
as equities.
These are a very diverse group of
assets that aren’t like the mainstream
assets of cash, fixed income or shares.
Some examples include hedge funds,
infrastructure, and gold.
Things to consider:
Things to consider:
•
Australian shares can be volatile and
are usually included in a portfolio for
their growth characteristics.
•
Because alternatives are diverse they
may be included in a portfolio for their
defensive or growth characteristics.
•
The Australian share market has
recently been dominated by a few
industries such as Financials and
Resources.
•
•
Australian shares may provide
dividend income and tax advantages
through imputation (franking) credits.
Alternative investments are usually
included in portfolios to increase
diversification and provide returns
that aren’t strongly linked with the
performance of mainstream assets.
•
For some alternatives, such as hedge
funds, it can be less obvious what
assets you’re investing in than with
other asset classes.
•
Some alternative investments are
illiquid, which makes them difficult to
buy or sell.
•
To access some alternative
investments you generally need to
invest in a managed fund that, in
turn, invests in alternatives.
•
Because most alternative investments
aren’t listed on an exchange,
determining their value for a fund’s
unit price can be difficult and may
involve a considerable time lag.
•
You may be exposed to exchange
rate variations.
Global shares
Global shares consist of investments in
companies listed on securities exchanges
around the world.
Things to consider:
•
Global shares can be volatile and are
usually included in a portfolio for their
growth characteristics.
•
The number of potential investments
is far greater than in Australian
shares.
•
Returns are driven by many factors
including the economic environment
in various countries.
•
When you invest globally, you’re less
exposed to the risks associated with
investing in just one economy.
•
Investing outside Australia means
you’re exposed to exchange
rate variations.
Growth and defensive assets
Asset classes are generally grouped as either defensive or growth because of their
different characteristics.
Both defensive and growth assets are included in a multi-asset portfolio because
they generally perform differently. For example, fixed income may be in a portfolio
to provide returns when share markets are weak. In some market conditions, both
defensive and growth assets may deliver low or negative returns.
The main differences between defensive and growth assets are:
Defensive
Growth
Asset classes
include
Cash and fixed
income securities
Shares and property
securities
How they are
generally used
To generate an income and
stabilise returns
To provide long-term
capital growth
Risk and return
characteristics
Expected to produce lower
returns and be less volatile
over the long term
Expected to produce higher
returns and be more volatile
over the long term
MLC Wholesale Investment Trust Product Guide | 9
Risks of managed
investment schemes
Investment approaches
•
Growth – focuses on companies
they expect will have strong
earnings growth.
Investment managers have different
approaches to selecting investments.
There are two broad approaches: passive
and active management.
•
Value – focuses on companies they
believe are undervalued (their price
doesn’t reflect earning potential).
Passive management
•
Core – aims to produce competitive
returns in all periods.
Passive, or index managers, choose
investments to form a portfolio which
will deliver a return that closely tracks
a market benchmark (or index). Passive
managers tend to have lower costs
because they don’t require extensive
resources to select investments.
Active management
Active managers select investments they
believe, based on research, will perform
better than a market benchmark.
They buy or sell investments when their
market outlook alters or their investment
insights change.
The degree of active management can
vary. More active managers may deliver
returns quite different to the benchmark.
Active managers have different
investment styles and these affect their
returns. Some common investment
styles are:
•
Bottom-up – focuses on forecasting
returns for individual companies,
rather than the economy as a whole.
•
Top-down – focuses on forecasting
broad macroeconomic trends and
their effect on the market, rather than
returns for individual companies.
10 | MLC Wholesale Investment Trust Product Guide
Investment techniques
Investment managers, including MLC,
use different investment techniques that
can change the value of an investment.
Where the Trusts use these investment
techniques, we’ve made a note of it in the
PDS. Investment techniques include:
Derivatives
Derivatives are contracts that have a
value derived from another source such
as an asset, market index or interest
rate. There are many types of derivatives
including swaps, options and futures.
They are a common tool used to manage
risk or improve returns.
Some derivatives allow investment
managers to earn large returns from
small movements in the underlying
asset’s price. However, they can lose large
amounts if the price of the underlying
asset moves against them.
Investment managers, including
MLC, have derivatives policies which
outline how derivatives are managed.
Information on MLC’s Derivative Policy
is available on request.
Currency management
If an investment manager in Australia
invests in assets in other countries,
their returns in Australian dollars will
be affected by movements in exchange
rates (as well as changes in the value of
the assets).
A manager of international assets may
choose to protect Australian investors
against movements in foreign currency.
This is known as ‘hedging’. Alternatively,
the manager may choose to keep the
assets exposed to foreign currency
movements, or ‘unhedged’.
This exposure to foreign currency can
increase diversification in portfolios.
Gearing
Gearing can be achieved by using
loans (borrowing to invest), or through
investing in certain derivatives, such
as futures.
Gearing magnifies exposure to potential
gains and losses of an investment. As a
result, you can expect larger fluctuations
(both up and down) in the value of
your investment compared to the same
investment which is not geared.
Investment managers can take different
approaches to gearing. Some change the
gearing level to suit different market
conditions. Others maintain a target
level of gearing.
It’s important to understand both the
potential risks of gearing, as well as its
potential benefits. When asset values are
rising by more than the costs of gearing,
the returns will generally be higher
than if the investment wasn’t geared.
When asset values are falling, gearing
can multiply the capital loss. If the fall
is dramatic there can be even more
implications for geared investments.
For example, the lender requires the
gearing level to be maintained below
a predetermined limit. If asset values
fall dramatically, the gearing level may
rise above the limit, forcing assets to
be sold when values may be continuing
to fall. In turn this could lead to more
assets having to be sold and more
losses realised.
Withdrawals (and applications) may
be suspended in such circumstances,
preventing you from accessing your
investments at a time when values are
continuing to fall.
Other circumstances (such as the lender
requiring the loan to be repaid for other
reasons) may also prevent a geared
investment from being managed as
planned, leading to losses.
You need to be prepared for all types
of environments and understand their
impact on your geared investment.
Short-selling
Short-selling is used by an investment
manager when it has a view that an
asset’s price will fall. The manager
borrows the asset from a lender, usually
a broker, and sells it with the intention
of buying it back at a lower price. If all
goes to plan, a profit is made. The key
risk of short selling is that, if the price
of the asset increases, the loss could
be significant.
Although this is an extreme example,
significant market falls have occurred
in the past. Recovering from such falls
can take many years and the geared
investment’s unit price may not return
to its previous high.
MLC Wholesale Investment Trust Product Guide | 11
How we invest
your money
MLC’s approach to investing
We design investment solutions
to deliver more reliable returns
to investors.
For over 25 years we’ve been designing
portfolios to help investors achieve
their goals.
The four key aspects of our marketleading investment approach are:
1. Portfolio design
Our multi-asset Trusts focus on what
affects investor outcomes the most—
asset allocation.
Each asset class has its own risk and
return characteristics. We allocate money
between asset classes based on the
following beliefs:
•
Risk can’t be avoided, but can
be managed.
Key to MLC’s investment approach is our
unique Investment Futures Framework.
It guides our forward-looking approach
to managing risk.
You can find more information on
our Investment Futures Framework
at www.mlcinvestmenttrust.com.au
In an unpredictable and constantly
changing world, we use the Framework
to help continually identify the very wide
range of potential market scenarios—
both good and bad—that could occur.
The Framework also helps us analyse
how these scenarios could affect the
risks and returns of the asset classes in
the portfolios.
Our investment experts use the insights
from this analysis to work out the
combination of asset classes that will
best achieve a portfolio’s objective.
This helps us prepare our portfolios for
future market ups and downs.
•
Risks and returns vary through time.
Our Investment Futures Framework
shows us how the potential risks and
returns of each asset class could change
over the next three to seven years.
With this information we can adjust our
portfolios’ asset allocations to reduce the
risk or improve the return potential of
the portfolios.
•
Diversification matters.
Asset classes perform differently in
different market conditions.
Investing in many asset classes helps us
smooth out the overall portfolio returns,
as we can offset the ups and downs of
each asset class.
12 | MLC Wholesale Investment Trust Product Guide
2. Managing the portfolio
Our Trusts have different investment
objectives. That’s why our investment
experts select a different mix of assets
and investment managers for each.
Our investment managers may be
specialist inhouse managers, external
managers or a blend.
We research hundreds of investment
managers from around the world and
select from the best for our portfolios.
We then combine them in our Trusts so
they complement each other.
This multi-manager approach helps
to reduce risk and deliver more
consistent returns.
You can find out about our
current investment managers at
www.mlcinvestmenttrust.com.au
3. Ongoing review
To make sure our portfolios are working
hard for our investors, we continuously
review and actively manage them.
We may adjust the asset allocation,
investment strategies and
investment managers.
This is because our assessment of the
future market environment may have
altered or because we have found better
ways to balance risk and return in
the portfolios.
4. Portfolio implementation
We deliver better returns by avoiding
unnecessary costs. We do this by
carefully managing cash flows and
changes in our Trusts.
Each trust in the MLC Investment
Trust uses the aspects of our
approach to investing that are
relevant to it.
Benchmarks and assessing
performance
A Trust should be judged against its
investment objective.
Most investment objectives aim to
produce returns that are comparable
to a benchmark. Benchmarks used as
a measure of performance are usually
market indices that are publicly available.
Shares are often benchmarked against a
share market index and bonds against a
bond market index. Other benchmarks
can be based on particular industries
(eg mining), company size (eg mid caps)
or the wider market (eg S&P/ASX 200 or
the MSCI World Index).
Ethical investing
Investment managers may take
into account labour standards,
environmental, social or ethical
considerations when making decisions to
buy or sell investments.
At MLC, we expect our active investment
managers to consider material effects
these factors may have on the returns
from their investments, however we
don’t require them to. We don’t expect
our passive investment managers to
consider these factors.
Benchmarks for multi-asset portfolios
may be made up of a combination of
market indices weighted according to the
benchmark asset allocation. We refer to
these as composite benchmarks.
Alternatively, multi-asset portfolios
may be benchmarked against a single
measure, such as inflation. A common
index of inflation, which is the rise in
the cost of living, is the Consumer Price
Index (CPI).
When comparing returns to a benchmark
you should consider:
•
whether the Trust’s return is
calculated before or after fees
are deducted,
•
the period over which the return
should be measured, and
•
a Trust is unlikely to achieve its
objective in all market environments.
MLC Wholesale Investment Trust Product Guide | 13
Fees and costs
The fees and costs outlined in the PDSs and this Guide are for the Trusts only.
If you are investing in the Trusts via an IDPS, you will need to consider the fees and other costs of the IDPS when calculating the total
cost of your investment.
This section shows the fees and other costs that you may be charged. These fees and costs may be deducted from your money, from
the returns on your investment or from the assets of the relevant managed investment scheme as a whole. The information in this
table can be used to compare fees and costs between different simple managed investment schemes.
Type of fee or cost
Amount
How and when paid
Fees when your money moves in or out of the managed investment products.
Establishment fee
Nil
There is no establishment fee.
Nil
There is no contribution fee.
Nil
There is no withdrawal fee.
Nil
There is no exit fee.
Between 0.35% and 2.14% pa 2
Management costs are calculated daily on
the relevant Trust’s total value and reflected
in the daily unit price. They are paid from
the assets of the relevant Trust and are not
required to be paid by you separately.
The fee to open your investment.
Contribution fee
The fee on each amount contributed
to your investment.
Withdrawal fee
The fee on each amount you take
out of your investment.
Exit fee
The fee to close your investment.
Management Costs1
The fees and costs for managing
your investment.
(including GST net of Reduced Input Tax Credit).
If you invest directly in the Trusts, you may
be able to negotiate the management costs
by contacting MLC.
Performance fees
In addition to the above fees performance
fees may be charged by some of the specialist
investment managers appointed by us.
We estimate that the performance fees will
generally fall between 0–0.02% but in cases of
exceptional outperformance and asset allocation
changes fees may be above this range.
This will only apply when the investment
manager’s return exceeds a specified level.
Service fees
Switching fee
Nil
The fee for changing investment options.
1 See ‘Additional explanation of fees and costs’ on page 15 and in the PDSs for further details.
2 Rounded to the nearest two decimal places using conventional rounding.
14 | MLC Wholesale Investment Trust Product Guide
There is no switching fee.
Additional explanation
of fees and costs
Fund manager payments or
product access payments
Fees paid to the
NAB Group companies
Management costs
We may use the services of NAB Group
companies where it makes good
business sense to do so and will benefit
our customers.
See ‘Changes to fees and costs’ in the
relevant PDS for details of the maximum
fees permitted.
Fund manager payments or product
access payments are commercial
payments made by the Trustee to IDPS
operators. These payments may be
rebated to you or may be retained by
the IDPS operator. How and when these
payments are made vary between the
Trustee and IDPS operators from time
to time and are not additional costs to
you. They are paid by the Trustee out
of the management costs. If applicable,
more specific details should be disclosed
in the IDPS offer documents issued by
IDPS operators.
Reimbursable expenses
Non-monetary benefits
We are entitled to be reimbursed from the
Trusts for all costs and expenses incurred
in acting as Trustee or in relation to the
administration and management of
the relevant Trust. The expenses may
include, but are not limited to, audit fees,
PDS preparation and printing costs and
registry services.
We keep a register detailing certain
non-monetary benefits that we receive
(eg benefits valued between $100 and
$300, genuine education or training
and information technology software or
support). You can review an extract of
the register by contacting us. Please be
aware that MLC may charge you for the
cost of providing this information to you.
Wholesale investors (as defined in
the Corporations Act), may be able to
negotiate the management costs by
contacting MLC.
Any reduction in costs will be rebated
periodically. We suggest that you consult
your tax adviser in regard to the tax
treatment of any fee rebates.
We currently pay these costs and
expenses out of the management costs
and do not charge them to you as an
additional cost.
Examples of such service providers
include lenders, custody and registry
operators and investment managers.
Amounts paid for these services are
always negotiated on an arms length
basis and are included in the fees detailed
in the PDSs.
MLC Wholesale Investment Trust Product Guide | 15
Keeping you
informed
If you invest via an IDPS you can obtain information on your investment in the Trusts
by contacting your IDPS.
If you invest directly in the Trust we provide the following information to you:
Transaction confirmation
Confirms any investment, switch
or withdrawal.
Monthly transaction statement
Provides a summary of transactions and
investment details for the month.
Distribution statement
Provides details of the distributions paid.
Annual taxation statement
Provides details of the income and capital
gains paid for the financial year.
Constitution
This information is available on request,
free of charge.
Annual audited financial statement
Performance history
Unit Pricing Policy & exceptions register
Derivatives Policy
Privacy Policy
Product Disclosure Statement updates
You can obtain a copy of the PDS on request
free of charge. The PDS can be updated or
replaced from time to time.
16 | MLC Wholesale Investment Trust Product Guide
Contact details
If you invest via an IDPS you should
contact your IDPS for all enquiries.
If you invest directly in the Trusts,
the Trusts’ contact details are:
National Australia Bank Asset
Servicing – Registry Services
(for transaction and unitholding
related matters)
Telephone: 1300 761 354
Fax: 1300 365 601
Postal address
National Australia Bank
Asset Servicing – Registry Services
PO Box 1406
Melbourne VIC 3001
MLC Investments Limited
(for Trustee, investment and
product related matters)
Telephone: (02) 9936 4577
Fax: (02) 9936 4500
MLC Investments Limited ABN 30 002 641 661 AFSL 230705. Part of the National Australia Bank Group of
Companies. An investment with MLC is not a deposit or liability of, and is not guaranteed by, NAB.
86012M0614
Postal address
MLC Investment Trust
Level 18, 255 George Street
Sydney NSW 2000