Capital Emerging Markets Total. Opportunities Fund (Australia) Product disclosure statement. Contents

Transcription

1 Captal Emergng Markets Total Opportuntes Fund (Australa) Product dsclosure statement Contents 1. About WHTM Captal Management Lmted 2. How Emergng Markets Total Opportuntes Fund (Australa) works 3. Benefts of nvestng n Emergng Markets Total Opportuntes Fund (Australa) 4. Rsks of managed nvestment schemes 5. How we nvest your money 6. Fees and costs 7. How managed nvestment schemes are taxed 8. How to apply 9. Addtonal nformaton Informaton n ths PDS s a summary of sgnfcant nformaton and s general n nature. It contans references to other mportant nformaton whch you should consder before makng an nvestment decson. The nformaton does not take nto account your ndvdual objectves, fnancal stuaton or needs and we recommend that you seek professonal advce from a fnancal advser. Ths PDS has been prepared n accordance wth the smple managed nvestment scheme dsclosure regme under the Corporatons Regulatons. Updated nformaton The nformaton n ths PDS may change over tme. WHTM Captal Management Lmted (the Responsble Entty ) may update ths nformaton where ths does not nvolve a materal change and make t avalable to you va au/fund_nformaton/ where permtted by law. You can also obtan updated nformaton by callng the Responsble Entty on A paper copy of any updated nformaton s avalable free on request. Issued by WHTM Captal Management Lmted Phone no: ABN AFS Lcence No Issued 5 Aprl 2013 ARSN APIR WHT0053AU

2 1. About WHTM Captal Management Lmted WHTM Captal Management Lmted WHTM Captal Management Lmted ABN s the responsble entty (the Responsble Entty, RE, we, our, us ) of Captal Emergng Markets Total Opportuntes Fund (Australa) ARSN ( Emergng Markets Total Opportuntes Fund (Australa), the Fund ) detaled n ths Product Dsclosure Statement ( PDS ). WHTM Captal Management Lmted s responsble for the operaton of the Fund and s an afflate of Wlson HTM Investment Group Ltd, an Australan Securtes Exchange (ASX) lsted nvestment house wth foundatons from Captal Group Captal Group s one of the largest and most experenced nvestment management frms n the world. Snce 1931 Captal Group has been sngularly focused on delverng superor, consstent results for longterm nvestors usng hgh-convcton portfolos, rgorous research and ndvdual accountablty. One of Captal Group s afflates, Captal Internatonal, Inc. (ARBN ) ( the Investment Manager ), has been apponted by the RE as the Fund s nvestment manager, pursuant to the terms of an nvestment management agreement. There are three key factors that dfferentate Captal Group. Algned wth nvestor success Captal Group bases ts decsons on a long-term perspectve, whch Captal Group beleves algns ts goals wth the nterests of ts clents. Achevng superor, long-term returns s Captal Group s only goal, so managers are rewarded for ther results, not the level of assets they manage. The Captal System Captal Group s nvestment process, The Captal System, s desgned to enable ndvdual nvestment professonals to act on ther hghest convctons, whle lmtng the rsk assocated wth solated decson-makng. Each portfolo s dvded nto portons that are managed ndependently by nvestment professonals wth dverse backgrounds, ages and nvestment approaches. A dscplned, mult-layered governance structure oversees the system s operaton. Bult to last As a prvate frm wth an ndependent charter and robust balance sheet, Captal Group nvests n mprovng ts capabltes through up and down markets. Wth hgh rates of retenton, Captal Group has some of the most experenced nvestment professonals and a commtment to sustanng ts nvestment process over generatons. 2. How Emergng Markets Total Opportuntes Fund (Australa) works Lke most managed funds, the Fund s a unt trust. In exchange for your nvested money, you are ssued wth nterests n the Fund called unts. A unt represents an nterest n the Fund. Your unts are your proportonate share of the Fund and reflect the value of your nvestment, whch wll change over tme as the market value of the assets of the Fund rse and fall. Mnmum ntal nvestment You can make an nvestment n the Fund wth a mnmum ntal nvestment n the amount of $25,000 or as agreed wth the Responsble Entty. Addtonal nvestments You are able to ncrease your nvestment at any tme by buyng addtonal unts subject to the mnmum addtonal nvestment amount of $5,000. Wthdrawals You can also wthdraw at any tme any amount from your nvestment. The Responsble Entty endeavours to effect payment of wthdrawals wthn fve busness days (although the Fund consttuton allows up to 30 days). In certan crcumstances, such as f there s a freeze on wthdrawals, the Responsble Entty may delay payment of your wthdrawal proceeds. You should read the addtonal mportant nformaton about unt prces and nvestment ncome before makng a decson. Go to the secton enttled 2. How the Fund works The materal relatng to unt prces and nvestment ncome may change between the tme when you read ths PDS and the day when you sgn the Applcaton Form. Captal Emergng Markets Total Opportuntes Fund (Australa) Product dsclosure statement 2

3 The value of your nvestment at any pont n tme wll depend on the total number of unts you hold n the Fund and the relevant wthdrawal prce per unt. Dstrbutons Income from the Fund s pad annually to you followng the June fscal year-end close as a dstrbuton and wll nclude dvdends, nterest and other ncome from the nvestments, as well as captal gans from the sale of the Fund s assets. Income per unt s calculated by dvdng the dstrbutable ncome for the Fund by the number of unts n the Fund at the end of each dstrbuton perod. The amount of ncome you receve s based on the number of unts you hold at the end of the dstrbuton perod. 3. Benefts of nvestng n Emergng Markets Total Opportuntes Fund (Australa) Sgnfcant features The Fund nvests the majorty of ts assets n equty, hybrd and fxed ncome (both corporate and soveregn) securtes as well n short-term nstruments wth a vew to sezng varous opportuntes arsng from the growth of emergng economes. Securtes wll normally be lsted or traded on regulated or recognsed markets although unlsted securtes may also be purchased. The Fund may have some exposure to cash (ncludng short-term nstruments). It ams to provde long-term growth of captal, wth relatvely low volatlty. Lmted use of dervatves may be made. Detals of the Fund are set out later n ths PDS at secton 5 How we nvest your money. Sgnfcant benefts Investng n the Fund offers a number of benefts, ncludng: The potental for equty lke returns wth lower volatlty, by blendng emergng markets equty and debt; Access to nvestment opportuntes across a broad and dversfed range and mx of markets, ndustres, securtes and currences that are not generally avalable to ndvdual nvestors; Access to portfolo managers who have decades of experence nvestng n emergng markets; Exposure to nvestment professonals who are part of a globally ntegrated network wth global research capabltes delverng superor nvestment deas and capabltes to clents around the world; Partcpaton n any captal apprecaton and ncome dstrbutons from the Fund. 4. Rsks of managed nvestment schemes Every nvestment runs the rsk that ts value and/or ncome wll fluctuate through tme. Whle rsks may be general or specfc to a partcular asset class, the general rule of nvestng s that the hgher the expected returns from an nvestment, the hgher the expected level of rsk and assets wth the hghest long term returns may carry the hghest level of short term rsk. The Fund nvests n a range of carefully selected nvestments amed at addng value whle seekng to reduce the overall level of rsk to the portfolo. The Fund has establshed lmts on how much can be nvested n an ndvdual securty to ensure that your nvestment s well dversfed. Past performance s not a relable gude to future performance and should not be reled upon to predct the value of an nvestment. Nether the Responsble Entty, nor the Investment Manager guarantees the performance of the Fund, the repayment of captal or any partcular rates of return. Returns are not guaranteed, and you may lose some of your money. Whlst t s not possble to dentfy all rsks, through careful analyss and research, Captal Group seeks to dentfy as many of these rsks as possble before nvestng. Rsk factors that may nfluence the value of an nvestment n a Fund nclude: 1. Market rsk changes n the market can lead to changes n prces and overall market volatlty. 2. Interest rate rsk changes n nterest rates can drectly and ndrectly mpact nvestment value and returns. 3. Currency rsk changes n the value of the Australan dollar relatve to other currences can cause changes to the value of the Fund. As the Fund s unhedged, s t fully exposed to currency movements and any consequental changes ths may have on the value of the Fund. Captal Emergng Markets Total Opportuntes Fund (Australa) Product dsclosure statement 3

4 4. Credt rsk credtworthness of the Fund s nvestments can mpact the nvestment s ablty to meet ts oblgatons. 5. Lqudty rsk nvestments made n some securtes may be traded on an rregular or nfrequent bass. 6. Operatonal rsk dsruptons to admnstratve procedures or operatonal controls may mpact the admnstraton of the Fund. 7. Legal and regulatory rsk changes to laws or government polces that result n legslatve changes affectng regstered managed nvestment schemes and other matters may have an mpact on your nvestment. Please note the Fund s heghtened exposure to the rsks of emergng markets and of dervatves, whch are descrbed n more detal n Secton 4 of the addtonal mportant nformaton (as referred to n the sde panel). You can manage rsk by plannng your nvestment strategy wth your fnancal advser and consderng the followng: the level of rsk you feel comfortable wth; how long you want to nvest consderng your age; the level of returns you need; whether you are lookng for ncome or growth; and your current fnancal crcumstances, ncludng other assets and nvestments you have. You should read the addtonal mportant nformaton about the rsks of managed nvestment schemes before makng a decson. Go to the secton enttled 4. Rsks of managed nvestment schemes The materal relatng to the rsks of managed nvestment schemes may change between the tme when you read ths PDS and the day when you sgn the Applcaton Form. 5. How we nvest your money Wth a vew to generatng long-term captal growth wth relatvely low volatlty of returns, the Fund nvests the majorty of ts assets n equty, hybrd and fxed ncome (both corporate and soveregn) securtes as well n short term nstruments n order to seze varous opportuntes arsng from the growth of emergng economes. Securtes wll normally be lsted or traded on regulated or recognsed markets although unlsted securtes may also be purchased. The Fund may have some exposure to cash (ncludng short-term nstruments). Lmted use of dervatves may be made from tme to tme, among other reasons, to provde lqudty, to provde exposure not otherwse avalable, to manage rsk, to manage foregn currency exposure and, temporarly, to provde ncremental yeld and to gan economc exposure to the targeted assets n a more effcent manner. In ths context, the Fund may nvest n, but s not lmted to, credt-default swaps as a protecton buyer. It may sell protecton only for the purpose of offsettng an exstng buy-protecton n the portfolo, and not to rase exposure to credt. There can be no assurance, however, that the above goals wll be met through the use of dervatves. An nvestment n the Fund may sut you f you are seekng a long-term nvestment n emergng market equtes and fxed ncome, whch provdes exposure to foregn currency movements. You should consder the lkely nvestment return, rsk and your nvestment tmeframe when choosng to nvest n the Fund. Emergng Markets Total Opportuntes Fund (Australa) Investment objectve Investment return objectve Reference Benchmarks* To acheve long term captal growth wth relatvely low volatlty of returns and preservaton of captal As per Investment objectve JP Morgan Government Bond Index-Emergng Markets Global Dversfed JP Morgan Emergng Markets Bond Index Global MSCI Emergng Markets Investable Market Index You should read the addtonal mportant nformaton about how we nvest your money, ncludng about labour standards and envronmental, socal and ethcal consderatons, before makng a decson. Go to the secton enttled 5. How we nvest your money The materal relatng to how we nvest your money, ncludng about labour standards and envronmental, socal and ethcal consderatons may change between the tme when you read ths PDS and the day when you sgn the Applcaton Form. * These ndces are shown on an ndcatve bass only n order to provde a reference pont for nvestment results. Fund asset classes Asset class Investment range Internatonal equty and fxed ncome securtes (ncl. lmted dervatves) Cash (ncl. short-term nstruments) Up to 100% Ancllary Currency Australan Dollar Captal Emergng Markets Total Opportuntes Fund (Australa) Product dsclosure statement 4

5 Descrpton of portfolo Suggested mnmum nvestment perod Rsk level A portfolo wth a majorty of ts assets n equty, hybrd and fxed ncome securtes that are normally lsted or traded on regulated or recognsed markets as well n short term nstruments, desgned to seze opportuntes arsng from the growth of emergng economes. Lmted use of dervatves. 5 years Hgh 6. Fees and costs Consumer Advsory Warnng Dd you know? Small dfferences n both nvestment performance and fees and costs can have a substantal mpact on your long term returns. For example, total annual fees and costs of 2% of your fund balance rather than 1% could reduce your fnal return by up to 20% over a 30 year perod (for example, reduce t from $100,000 to $80,000). You should consder whether features such as superor nvestment performance or the provson of better member servces justfy hgher fees and costs. You may be able to negotate to pay lower contrbuton fees and management costs where applcable. Ask the fund or your fnancal advser. To fnd out more If you would lke to fnd out more, or see the mpact of the fees based on your own crcumstances, the Australan Securtes and Investments Commsson (ASIC) webste ( has a managed nvestment fee calculator to help you check out dfferent fee optons. The followng table shows fees and other costs you may be charged and can be used to compare costs between dfferent smple managed nvestment schemes. These fees and costs may be deducted from your money or from the returns on your nvestment or from the Fund assets as a whole. You should read all of the nformaton about fees and costs, as t s mportant to understand ther mpact on your nvestment. Type of fee or cost Amount Fees when your money moves n or out of the fund Establshment fee Contrbuton fee Wthdrawal fee Termnaton fee Management costs The fees and costs for managng your nvestment 1.40% p.a. More detals relatng to the nformaton appearng n the above table are provded below. Type of fee or cost Amount How and when pad Fees when your money moves nto or out of the Fund 1 Establshment Fee The fee to set up your nvestment Contrbuton fee The fee on each amount contrbuted to your nvestment Wthdrawal Fee Ths s the fee charged on each amount you wthdraw out of your nvestment Termnaton Fee The fee charged to close your nvestment Not applcable Not applcable Not applcable Not applcable Captal Emergng Markets Total Opportuntes Fund (Australa) Product dsclosure statement 5

6 Management costs The fees and costs for managng your nvestment 2 Servce fees Investment swtchng fee The fee for changng nvestment optons 1.40% p.a. Management costs are calculated on the Fund s gross asset value, expressed as a percentage of the Fund s net asset value and reflected n the daly unt prce and payable quarterly n arrears. Management costs are not charged separately to your nvestment. They are accrued daly and pad to the Responsble Entty quarterly n arrears. Management costs are shown nclusve of GST and any expected reduced nput tax credts. Extraordnary expenses are pad from the Fund assets as and when ncurred. 3 Not applcable You should read the addtonal mportant nformaton provdng addtonal explanaton of fees and costs before makng a decson. Go to the secton enttled 6. Fees and costs The materal relatng to provdng addtonal explanaton of fees and costs may change between the tme when you read ths PDS and the day when you sgn the Applcaton Form. 1 Transacton costs (Buy/Sell costs) apply. Refer to the Buy/Sell Spread secton below 2 Refer to Management Costs n Addtonal Explanaton of Fees and Costs n Secton 6 of the addtonal mportant nformaton (as referred to n the sde panel). 3 Refer to Extraordnary expenses n Addtonal Explanaton of Fees and Costs of the addtonal mportant nformaton (as referred to n the sde panel). Example of annual fees and costs for Emergng Markets Total Opportuntes Fund (Australa) Ths table gves an example of how the fees and costs for the Fund can affect your nvestment over a 1 year perod. You should use ths table to compare the Fund wth other managed nvestment products. Example Balance of $50,000 wth total contrbutons of $5,000 durng the year Contrbuton fees For every addtonal $5,000 you put n, you wll be charged $0. PLUS Management costs EQUALS Cost of fund 1.40% p.a. And, for every $50,000 you have n the fund you wll be charged $700 each year. If you had an nvestment of $50,000 at the begnnng of the year and you put n an addtonal $5,000 durng that year, you would be charged fees of: $700 * What t costs you wll depend on the nvestment opton you choose and the fees you negotate wth your fund or fnancal advser. * The example assumes management costs are calculated on a balance of $50,000 wth the $5,000 contrbuton occurrng at the end of the frst year. Therefore management costs are calculated usng the $50,000 balance only. Buy/sell spread When you nvest or wthdraw all or part of your nvestment we generally apply a transacton cost va a unt prce buy/sell spread, whch s an addtonal cost to you. A buy/sell spread operates to ncrease the relevant unt prce for each new nvestment and to decrease the unt prce for each wthdrawal to cover transactonal and operatonal costs of underlyng portfolo transactons, whch nclude brokerage, share settlement and clearng fees, government charges/stamp duty, bank charges and foregn exchange transacton fees. The current buy/sell spread for the Fund, whch s an estmate of these costs, s 0.20% on both nvestment and wthdrawal. Therefore: the cost of an nvestment of $25,000 would be $50; and the cost of a wthdrawal of $25,000 would also be $50. Increases or alteratons to fees and costs If the Responsble Entty ncreases ts fees and costs or apples any new fees (whch can be done wthout your consent), we wll notfy you 30 days pror to the ncrease. The Responsble Entty confrms that n the event of any such fee ncrease: the management fee wll not exceed 3% p.a. of the gross asset value of the Fund; and the buy/sell spread wll not exceed 0.35% p.a of the gross asset value of the Fund. Captal Emergng Markets Total Opportuntes Fund (Australa) Product dsclosure statement 6

7 These maxmums are set out n the Fund consttuton, exclude GST and cannot be ncreased above these amounts wthout pror untholder consent. The Responsble Entty also reserves the rght to wave or reduce any of the fees and costs descrbed n ths PDS wthout pror notce. 7. How managed nvestment schemes are taxed Investng n a regstered managed nvestment scheme s lkely to have tax consequences dependent on your personal crcumstances. Regstered managed nvestment schemes do not pay tax on behalf of nvestors. As t s ntended that all taxable ncome and captal gans wll be dstrbuted, t s expected that a Fund wll not pay tax on ts taxable net ncome and captal gans. Your share of the taxable net ncome and captal gans earned by the Fund should be ncluded n your tax return n the year you become presently enttled to the taxable net ncome and/or captal gans. We strongly advse you seek professonal tax advce about the specfc mplcatons relevant to your stuaton. 8. How to apply Investng To apply for unts n Emergng Markets Total Opportuntes Fund (Australa), please read ths PDS together wth any addtonal nformaton to the Product Dsclosure Statement avalable from au/fund_nformaton/. Please then complete the applcaton form. Intal applcatons for unts n the Fund must be made on the applcaton form accompanyng ths PDS or whch can be found at au/_pdf/fund_forms.pdf. Please then nclude the full amount to be nvested on a cheque made payable to WHTM CM - Captal Group Funds Apps and crossed Not negotable. The mnmum ntal nvestment s $25,000 or as agreed wth the Responsble Entty. Forward the cheque along wth the applcaton form and the requred dentfcaton documentaton to the Fund Admnstrator: JPMorgan Worldwde Securtes Servces Attn: Unt Regstry Team GPO Box 5111, Sydney, NSW 2001 IMPORTANT: (1) Investors wshng to nvest by electronc funds transfer may do so usng the followng Fund account detals: WHTM CM Captal Group Funds Apps BSB: Account Number: Please quote your depost reference number n secton 10 of the applcaton form. (2) If you apply for unts n an amount hgher than $10 mllon, you must lodge your applcaton form wth the Fund Admnstrator at the latest pror to 12:00pm AEST (Sydney Tme) on the busness day precedng the busness day on whch you wsh your applcaton to be effectve ( Effectve Subscrpton Date ). Cleared funds for your subscrpton may be receved on the Effectve Subscrpton Date pror to 12:00pm AEST. Your unts wll be ssued on the Effectve Subscrpton Date, usng the net asset value per unt (less the buy spread) at the close of busness on the Effectve Subscrpton Date. If your applcaton form s not receved as requred above, your nvestment n the Fund wll be delayed by one busness day. You should read the addtonal mportant nformaton about how managed nvestment schemes are taxed before makng a decson. Go to the secton enttled 7. How managed nvestment schemes are taxed The materal relatng to how managed nvestment schemes are taxed may change between the tme when you read ths PDS and the day when you sgn the Applcaton Form. You should read the addtonal mportant nformaton about applcaton form, authorsed representatve form, AML dentfcaton requrements, makng an addtonal nvestment, wthdrawng your nvestment and ndrect nvestors before makng a decson. Go to the secton enttled 8. How to apply The materal relatng to applcaton form, authorsed representatve form, AML dentfcaton requrements, makng an addtonal nvestment, wthdrawng your nvestment and ndrect nvestors may change between the tme when you read ths PDS and the day when you sgn the Applcaton Form. Indrect Investors If you nvest n the Fund va an nvestor drected portfolo servce ( IDPS ), a master trust or wrap account, dfferent terms may apply to your nvestment. You should read the dsclosure document for that IDPS, master trust or wrap account together wth ths PDS pror to nvestng. Coolng off rghts If an nvestor nvests less than $500,000 and s not a professonal or sophstcated nvestor, the nvestor has a 14 day coolng-off perod n whch to decde f the nvestment s rght for them. The 14 day perod commences on the earler of: ) the date the nvestor receves ther ntal nvestment transacton statement; or ) fve days after ther unts are ssued. Captal Emergng Markets Total Opportuntes Fund (Australa) Product dsclosure statement 7

8 The amount refunded wll be calculated usng closng prces at the day the Responsble Entty receves the nvestor s wrtten request to wthdraw ther nvestment, less any non-refundable tax or duty pad or payable. Accordngly, dependng upon the crcumstances, the amount refunded may be greater or less than the amount ntally nvested. However, the nvestor wll not be charged any fees. Coolng off rghts wll not apply where unts are ssued as part of the dstrbuton renvestment arrangement. Wthdrawng your nvestment If you wsh to apply to redeem your unts, you should lodge a completed redempton request form accompanyng ths PDS, or whch can be found at au/_pdf/fund_forms.pdf, wth the Fund Admnstrator by mal or by fax to There s no mnmum redempton amount. Important: Please note that f you apply to redeem unts for an amount hgher than $10 mllon, your unts wll be redeemed at the net asset value per unt (less the sell spread) at the close of busness on the busness day followng the busness day on whch your redempton request was receved pror to 12.00pm AEST. Complants The Responsble Entty has n place a procedure for handlng all complants. All complants should be made n wrtng to: The Dspute Resoluton Offcer WHTM Captal Management Lmted PO Box R1313 Offce hours: 8:30 am to 5:00 pm (AEST) Royal Exchange, NSW 1225 Telephone: All complants receved wll be acknowledged n wrtng. We wll act n good fath to ensure your complant s nvestgated and resolved. If the ssue has not been resolved wthn 45 days, you may be enttled to refer your complant to the Fnancal Ombudsman Servce Lmted. They wll be able to advse you whether they can assst you n ths matter. Please quote our membershp number to them whch s for WHTM Captal Management Lmted managed nvestment schemes. Further detals regardng the Fnancal Ombudsman Servce Lmted wll be provded on request or alternatvely you can contact the servce drectly on ther toll free number or by wrtng to: Fnancal Ombudsman Servce Lmted GPO Box 3 Fax: Collns Street West Emal: nfo@fos.org.au Melbourne, VIC 3001 Web: 9. Addtonal nformaton Contnuous dsclosure documents If the Fund becomes a dsclosng entty t wll be subject to certan regular reportng and dsclosure oblgatons under the Corporatons Act. Copes of documents lodged wth ASIC n relaton to the Fund may be obtaned from, or nspected at, an ASIC offce. We wll satsfy our contnuous dsclosure oblgatons for the Fund by publshng materal at au/fund_nformaton/. Accordngly, gven the dsclosure of materal nformaton wll be made on our webste, we wll not be requred to lodge contnuous dsclosure notces for the Fund wth ASIC. You should read the addtonal mportant nformaton about Fund consttuton, nvestment management agreement, rghts, oblgatons and role of the RE, your rghts as an nvestor, nvestment and borrowngs, consents and the warnng for NZ nvestors before makng a decson. Go to the secton enttled 9. Addtonal nformaton The materal relatng to Fund consttuton, nvestment management agreement, rghts, oblgatons and role of the RE, your rghts as an nvestor, nvestment and borrowngs, consents and the warnng for NZ nvestors may change between the tme when you read ths PDS and the day when you sgn the Applcaton Form. Captal Emergng Markets Total Opportuntes Fund (Australa) Product dsclosure statement 8