Investment Menu Retail Managed Accounts

Investment Menu Retail Managed Accounts

IMPORTANT INFORMATION This Investment Menu is issued by Linear Asset Management Ltd (ABN 11 119 757 596, AFSL 304542) ( Responsible Entity we, our or us ), the responsible entity of the Evans and Partners Retail Managed Accounts. The information contained in this Investment Menu forms part of the Product Disclosure Statement (PDS) for the Evans and Partners Retail Managed Accounts dated 7 July 2014. You should read this information together with the PDS before making a decision to invest. If you are considering an investment in a Managed Fund then you should also read the relevant PDS for that product. The information in this Investment Menu is of a general nature. The information is not advice or a recommendation to invest in any particular investment option. This Investment Menu has been prepared without taking into account your individual objectives, financial situation or particular needs. You should assess your own objectives, financial situation and needs before deciding to acquire any investment through the Evans and Partners Retail Managed Accounts. Before making an investment decision, we recommend that you seek the help of a person or organisation licensed to provide financial advice (your Adviser). Information in this Investment Menu is subject to change from time to time. Where the changes are not materially adverse, updated information will be made available at www.eandp.com.au via the Evans and Partners Portal. If you would like to request a hard copy of this Investment Menu free of charge, the PDS or any updated information, then contact your licensed Adviser or phone the Responsible Entity on 1300 669 891. Before you invest, we recommend you read the PDS in its entirety and check this website or www.eandp.com.au for any updated information. Defined terms used in this Investment Menu are defined in the PDS. This Investment Menu is dated 16 September 2015. CONTACT DETAILS: DISTRIBUTOR Evans and Partners Pty Ltd ABN 85 125 338 785 AFSL 318075 MELBOURNE OFFICE: SYDNEY OFFICE: Mayfair Building Level 6 171 Collins Street 50 Pitt Street Melbourne VIC 3000 Sydney NSW 2000 Phone: 03 9631 9888 Phone: 02 8070 6600 Fax: 03 8610 1608 Fax: 02 8569 0386 ISSUER AND RESPONSIBLE ENTITY Linear Asset Management Ltd ABN 11 119 757 596 AFSL 304542 Level 9 525 Flinders Street Melbourne VIC 3000 PO Box 482 Collins Street West VIC 8007 Phone: 1300 669 891 Fax: 03 9629 2550 *Cover Artwork: King River II, Geoff Dyer, 2004

INVESTMENT OPTIONS Your investment universe can be via: Model Portfolios which are professionally managed by Investment Managers according to their stated mandate; and Self-directed Investments - which provide you the flexibility to select any investment we list on the Investment Menu to follow your own strategy. ABOUT MODEL PORTFOLIOS This Investment Menu also sets out the Model Portfolio options, details about the Investment Manager of each Model Portfolio, as well as other details including the investment strategy. You should read all information about a Model Portfolio, consider your own personal circumstances and the risks relating to the underlying investment class, the Investment Manager s experience, and using Model Portfolios generally before you invest. MODEL PORTFOLIO WEIGHTINGS Your individual weightings or mix of Model Portfolios are applied on a floating basis. This means that although your Account will reflect the weightings in your Account Instruction at the time the investments are made, the weightings will fluctuate from time to time as the performance of one Model Portfolio differs from the performance of another. As an example, for an original investment of $100,000 allocated 50% to Model A Portfolio and 50% to Model B Portfolio, your Account would be divided as follows: Model A: Weighting 49% Value $49,000 Model B: Weighting 49% Value $49,000 Cash: Weighting 2% Value $2,000 Total: Weighting 100% Value $100,000 If after the first day of your Account being active, Model A Portfolio had performance of -5% and Model B Portfolio had performance of +5%, then your Account would adjust to reflect this variance in performance as follows: Model A: Weighting 46.5% Value $46,550 Model B: Weighting 51.5% Value $51,450 Cash: Weighting 2% Value $2,000 Total: Weighting 100% Value $100,000 This example is provided for the purpose of demonstrating the effect of applying Model Portfolio weightings on a floating basis and all values are approximate and indicative only. This effectively means that your initial Account weighting will only apply in the strictest sense on the first day of your investment. After this, each Model Portfolio will perform differently and therefore the value of it will change in dollar and percentage terms, thus changing your overall weightings. We will only then reweight your Account on instruction from you or your Adviser. CUSTOMISING YOUR MODEL PORTFOLIO Evans and Partners Retail Managed Accounts offers you the ability to customise your Model Portfolio investment by directing us to exclude or lock certain stocks within a Model Portfolio. This may mean that the customised Model Portfolios within your Account will perform differently from that Model Portfolio. Possible customisations include: Lock Model Portfolio: Locking a Model Portfolio suspends any transactions from occurring, other than the processing of corporate actions by the Responsible Entity. Where you elect to lock a Model Portfolio that has yet to be implemented, the Responsible Entity will lock that Model Portfolio after the initial purchases of securities are made. The investment management fee of the locked Model Portfolio will still apply. Exclude Securities: Where you do not wish to invest in a particular security, you can elect to exclude that security from a Model Portfolio. The dollar amount of any excluded security will then be invested across the remainder of the Model Portfolio. You should be aware that customisations may involve transaction costs. For further information on these costs please refer to the Fees and Other Costs section in the PDS. Not all Model Portfolios offer the ability to customise. Customising your Model Portfolio can be done at any time by providing us your Account Instruction. In addition to the customisation options, you can overlay Dynamic Trading Strategies such as Capital Preservation to your Model Portfolio investments. See the section in this Investment Menu about Dynamic Trading Strategies for details. 3

MODEL PORTFOLIOS Currently the following list of Model Portfolios is available for investment via the Evans and Partners Retail Managed Accounts. PORTFOLIO CODE PORTFOLIO NAME STRATEGY MINIMUM INVESTMENT FEE* (% P.A.) EAPINCR EAPAUEQR EAPPDFIR EAPGLEQR EAPINTR EAPDEFPR Evans and Partners Australian Equities Income Portfolio (Retail) Evans and Partners Australian Equities Growth Portfolio (Retail) Evans and Partners Diversified Income Portfolio (Retail) Evans and Partners Global Equities Core Portfolio (Retail) Evans and Partners International Focus Portfolio (Retail) Evans and Partners Defensive Plus Portfolio (Retail) Active $50,000 0.33 Active $50,000 0.33 Active $50,000 0.22 Active $50,000 0.11 Active $50,000 0.825 Active $50,000 0.11 *If you select any of the Model Portfolios above, then your Adviser will charge you a minimum Adviser Service Fee of 0.55% per annum (including GST) based on the amount you have invested in each Model Portfolio. For more information on Adviser Service Fees, please refer to the Fees and Other Costs section of the PDS or contact your adviser. 4

EVANS AND PARTNERS AUSTRALIAN EQUITIES INCOME PORTFOLIO (RETAIL) Portfolio Code: EAPINCR Portfolio Provider: Evans and Partners Pty Ltd Inception: 7 July 2014 Investments: Australian Equities, Cash Benchmark: S&P/ASX 200 Accumulation Index DESCRIPTION/STRATEGY The portfolio is built around the strategy and research views of the Evans and Partners research team. It has a medium term focus and is constructed and managed to provide a higher dividend yield with a higher franking benefit than that provided by the overall market. The portfolio typically has a lower beta bias. Given the income bias of the Portfolio, we expect performance will lag the ASX200 during periods of market strength and exceed periods of market weakness. Annual portfolio turnover is expected to average ~40%. INVESTMENT OBJECTIVES The key goal is to provide a total return that excess its benchmark over the medium to longer term with a bias toward a tax effective income stream. ASSET ALLOCATION RANGES 94% - 99% Australian Equities. 1% - 6% Cash. NUMBER OF SECURITIES 18-26 drawn predominantly from the ASX200 INVESTMENT TIMEFRAME: 3-5 years INVESTMENT FEE % P.A. 0.33% PERFORMANCE FEE % P.A. Nil CUSTOMISATION PERMITTED No MINIMUM INVESTMENT AMOUNT $50,000 5

EVANS AND PARTNERS AUSTRALIAN EQUITIES GROWTH PORTFOLIO (RETAIL) Portfolio Code: EAPAUEQR Portfolio Provider: Evans and Partners Pty Ltd Inception: 7 July 2014 Investments: Australian Equities, Cash Benchmark: S&P/ASX 200 Accumulation Index DESCRIPTION/STRATEGY The portfolio is built around the strategy and research views of the Evans and Partners research team. The portfolio sits between a pure defensive/income mandate and a pure growth mandate with a medium term focus, and constructed and managed to provide a large-cap focused portfolio drawn predominantly from the ASX200 universe with a least 75% within the ASX100. The portfolio will typically have earnings and distribution growth higher than that provided by the overall market. The portfolio is not index aware but does seek to provide investors with a balanced exposure across industries. Annual portfolio turnover is expected to average ~40%. INVESTMENT OBJECTIVES The key goal is to provide a total return that exceeds its benchmark over the medium to longer term with a bias towards capital growth. ASSET ALLOCATION RANGES 94% - 99% Australian Equities. 1% - 6% Cash. NUMBER OF SECURITIES 18-26 drawn predominantly from the ASX200 INVESTMENT TIMEFRAME 3-5 years INVESTMENT FEE % P.A. 0.33% PERFORMANCE FEE % P.A. Nil CUSTOMISATION PERMITTED No MINIMUM INVESTMENT AMOUNT $50,000 6

EVANS AND PARTNERS DIVERSIFIED INCOME PORTFOLIO (RETAIL) Portfolio Code: EAPPDFIR Portfolio Provider: Evans and Partners Pty Ltd Inception: 7 July 2014 Investments: Australian Government & Corporate Interest Rate Securities. Benchmark: 50% Bloomberg AusBond Bank Bill Index; 50% Bloomberg AusBond 0-3 years Composite Bond Index DESCRIPTION/STRATEGY A fixed interest portfolio designed to: 1. Provide a secure & predictable income stream. 2. Complement a balanced asset allocation strategy via the capacity to bias the portfolio heavily in favour of government debt if the macro outlook dictates. INVESTMENT OBJECTIVES The Portfolio will invest in various securities across Government Bonds, Investment Grade Corporate Bonds and Rated Hybrid Securities. The Portfolio Manager will implement and manage the portfolios via an Interest rate management committee to provide income ~2% above cash rates whilst targeting a moderate level of capital appreciation through the typical business cycle. ASSET ALLOCATION RANGES 0-50% Australian Government and Semi-Government bonds (or ETF s representing). 0-30% Non- Investment grade Corporate senior bonds and hybrids, each either OTC or ASX listed 20-98% Investment grade Corporate senior bonds and hybrids each either OTC or ASX listed. 2 90% Australian cash and cash enhanced. NUMBER OF SECURITIES 15-40 INVESTMENT TIMEFRAME 3 years INVESTMENT FEE % P.A. 0.22% PERFORMANCE FEE % P.A. Nil CUSTOMISATION PERMITTED No MINIMUM INVESTMENT AMOUNT $50,000 7

EVANS AND PARTNERS GLOBAL EQUITIES CORE PORTFOLIO (RETAIL) Portfolio Code: EAPGLEQR Portfolio Provider: Evans and Partners Pty Ltd Inception: 7 July 2014 Investments: Exchange Traded Funds (ETF s) and/or selective Managed Funds. Benchmark: MSCI All Countries World Accumulation Index (ex Australia) in Australian Dollars. DESCRIPTION/STRATEGY A portfolio comprising ETF s and/or selective managed funds that is designed to mirror Evans and Partners strategic global allocation views. Portfolio management is relatively passive. The objective is to provide the investor with a broad quasi-index exposure to the global equity market via ETF holdings that deliver sector and regional diversity. The Manager will then seek to add value by adopting a defensive (i.e. major market/large cap) or growth (i.e. emerging market/small cap) bias as market conditions dictate. The Portfolio is unhedged, however, the Manager may seek to add value through selective use of hedged ETF s. INVESTMENT OBJECTIVES The Portfolio aims to out-perform the MSCI All Countries World Accumulation Index (ex Australia) in Australian Dollar terms over the medium term. ASSET ALLOCATION RANGES 90% - 98% ETF s and/or Managed Funds. 2% - 10% Cash NUMBER OF SECURITIES 4-12 Exchange Traded Funds INVESTMENT TIMEFRAME 3-5 years INVESTMENT FEE % P.A. 0.11% PERFORMANCE FEE % P.A. Nil CUSTOMISATION PERMITTED No MINIMUM INVESTMENT AMOUNT $50,000 8

EVANS AND PARTNERS INTERNATIONAL FOCUS PORTFOLIO (RETAIL) Portfolio Code: EAPINTR Portfolio Provider: Evans and Partners Pty Ltd Inception: 7 July 2014 Investments: International Equities, Cash Benchmark: MSCI All Countries World Accumulation Index (ex Australia) in Australian Dollars DESCRIPTION/STRATEGY Active management of mid to large cap International Equities following a quality/value approach. The portfolio will aim to satisfy 4 main criteria; business quality, balance sheet quality, management quality and attractive valuation. Annual Portfolio turnover is expected to be relatively low (~30-40%) and average holding period is expected to be around 4 years. INVESTMENT OBJECTIVES The International Focus Portfolio aims to provide investors with an exposure to international Equity Markets that complements the Australian markets heavy bias towards banking and mining companies. The Portfolio has a medium to long term focus (5-7 years) its priority, first and foremost, is to protect capital in real terms and minimise risk of impairment of capital. It aims to generate absolute returns in in local currency of 8-12% pa over this investment horizon and to achieve returns that are superior to that of its benchmark the MSCI AC World Accumulation Index (ex Australia) in Australian dollars over the same time period. ASSET ALLOCATION RANGES 90% - 98% International Equities 2% - 10% Cash NUMBER OF SECURITIES 10-15 INVESTMENT TIMEFRAME 5-7 years INVESTMENT FEE % P.A. 0.825% Note: Transaction costs (excluding Taxes) related to this Model Portfolio are paid by the Investment Manager. PERFORMANCE FEE % P.A. Nil CUSTOMISATION PERMITTED No MINIMUM INVESTMENT AMOUNT $50,000 9

EVANS AND PARTNERS DEFENSIVE PLUS PORTFOLIO (RETAIL) Portfolio Code: EAPDEFPR Portfolio Provider: Evans and Partners Pty Ltd Inception: 19 October 2015 Investments: Australian Government & Corporate Interest Rate Securities, Cash Benchmark: 50% Bloomberg AusBond Bank Bill Index; 50% Bloomberg AusBond 0-3 years Composite Bond Index DESCRIPTION/STRATEGY A fixed interest portfolio designed to provide investors with regular income & capital stability from a portfolio of ASX listed Australian Government Bonds & high grade listed corporate bonds & hybrids. INVESTMENT OBJECTIVES The portfolio will typically invest approximately 50% in Listed Government Bonds providing capital stability and 50% in high grade corporate bonds to conservatively increase the portfolio s yield. Non- Government securities must be investment grade rated and are selected after credit risk and security structure reviews. Relative analysis is a key component of the investment process. ASSET ALLOCATION RANGES 30-70% Listed Government Bonds * 30 70% Listed Investment Grade Bonds ** 1 10% Australian cash * Listed Government Bonds are bonds issued by the Australian Federal Government. ** Listed Investment Grade Income Securities are debt and hybrid securities issued by investment grade Australian corporates. Securities are defined as Investment Grade if rated by a recognised agency such as S&P, Fitch, Moody s or Australian Ratings or by a credit analyst appointed by Evans and Partners. An Investment grade quality security to have at least a rating of BBB- (S&P, Fitch, Aust Ratings) or Baa3 (Moody s), or if the security unrated, the issuing company having a rating of at least BBB (S&P, Fitch, Aust Ratings) or Baa2(Moody s). NUMBER OF SECURITIES 10-25 INVESTMENT TIMEFRAME 3 years INVESTMENT FEE % P.A. 0.11% PERFORMANCE FEE % P.A. Nil CUSTOMISATION PERMITTED No MINIMUM INVESTMENT AMOUNT $50,000 10

ABOUT SELF-DIRECTED INVESTMENTS Below is the menu of Self-Directed Investments from which you may select. Fees and other costs apply to Self-Directed Investments and you should refer to the PDS of Evans and Partners Retail Managed Accounts for details. There are risks associated with Self-Directed Investments and you should consider the risks section of the PDS for Evans and Partners Retail Managed Accounts and your own personal circumstances before you invest. If you are investing in a Managed Fund then you should also consider the risks section of the PDS for that Managed Fund. MANAGED FUNDS Currently the following list of Managed Funds is available for investment via the Evans and Partners Retail Managed Accounts. FUND DETAILS Aberdeen Asian Opportunities Aberdeen Emerging Opportunities Australian Unity Wingate Global Equity Fund Unhedged Australian Unity Wingate Global Equity Fund Hedged Capital International Global EM Total Opportunities Capital International Global Equities (Hedged) Capital International Global Equities (Unhedged) Evans and Partners Australian Buy Write Fund Evans and Partners International Fund Evans and Partners International Fund (Hedged) Franklin Templeton Global Growth - W Class (Unhedged) Franklin Templeton Multisector Bond Fund - W Class Grant Samuel Epoch Global Equity Yield (Hedged) Grant Samuel Epoch Global Equity Yield (Unhedged) Investors Mutual Australian Share Fund Investors Mutual Equity Income Fund Macquarie Asia New Stars Fund APIR EQI0028AU ETL0032AU AUS0035AU WFS0547AU WHT0053AU WHT0019AU WHT0018AU ETL0389AU ETL0390AU ETL0391AU FRT0009AU FRT0011AU GSF0001AU GSF0002AU IML0002AU IML0005AU MAQ0640AU If you provide online Account Instructions to buy and sell Managed Funds via your Account, then the Responsible Entity will charge a fee of $27.50 per transaction (includes GST). See the Fees and Other Costs section in the PDS as other fees and costs apply to your Account. Note: Before EVANS AND PARTNERS UNIT TRUSTS Currently the following list of Evans and Partners Funds is available for investment via the Evans and Partners Retail Accounts: FUND DETAILS Evans and Partners Australian Buy Write Fund Evans and Partners International Fund Evans and Partners International Fund (Hedged) APIR ETL0389AU ETL0390AU ETL0391AU 11

ASX LISTED SECURITIES You can select from any listed security or exchange traded option that can be transacted on the Australian Securities Exchange (ASX). These include ordinary shares, property trusts and exchanged traded funds. If you provide an instruction to your Adviser to buy and sell ASX Listed Securities then the Responsible Entity will charge a fee of $3.30 (includes GST) per transaction. In addition, you may have agreed to an Adviser Service Fee with your Adviser which we estimate to be the greater of $137.50 (incl GST) or up to 1.65% (incl GST) of the transaction amount. The Responsible Entity will pay this amount to your Adviser as you have directed. INTERNATIONAL LISTED SECURITIES You can choose from a selected list of Listed International Securities. For details, please contact your Adviser. If you provide an instruction to your Adviser to buy and sell Listed International Securities the Responsible Entity will charge a fee of $5.50 (includes GST) per transaction. In addition, you may have agreed an Adviser Service Fee with your Adviser which we estimate to be the greater of $250 (incl GST) or up to 1.65% (incl GST) of the value of the transaction. The Responsible Entity will pay this amount to your Adviser as you have directed. TERM DEPOSITS You can select from a selected list of Term Deposits. This list is available on request from your Adviser. There are no transaction costs associated with Term Deposits. DYNAMIC TRADING STRATEGIES Dynamic Trading Strategies (DTS) can be applied to overlay selected Model Portfolios in accordance with a predefined strategy. If you apply a DTS to a Model Portfolio the Responsible Entity will make changes that could alter the asset allocation and performance of your investment in the Model Portfolio. When applying a DTS to a Model Portfolio it will apply to the entire Model Portfolio. You can only apply a DTS to a Model Portfolio that allows Customisations. Currently, the Responsible Entity only offers one trading strategy; Capital Preservation. Details about Capital Preservation and worked examples are set out below. Further examples (including worked examples) can be provided by your Adviser. When can I use it? It is possible to apply Capital Preservation to an investment in one or more Model Portfolios at any time provided that Model Portfolio allows Customisations. The list in the Investment Menu states whether the Model Portfolio can be Customised. How does it work? You, with your Adviser, select a Preservation Level for your Model Portfolio investment. Each day, the Responsible Entity applies the Dynamic Rebalancing Rules to your Model Portfolio investment to calculate the Target Exposure of your Model Portfolio investment to equities and cash, as well as the actual exposure of your Model Portfolio investment to equities and cash. The actual exposure of your Model Portfolio investment is then compared to the Target Exposure and if they differ by more than 15% then your Model Portfolio investment will be automatically rebalanced by the Responsible Entity buying or selling securities on your behalf. What is the Preservation Level? The Preservation Level is the level you choose to try and preserve through the Capital Preservation trading strategy. It must be a percentage you select of the highest ever value of the Investment Portfolio (i.e., a percentage of your portfolio s high water mark). The Preservation Level can be altered at any stage by providing us an Account Instruction. You should seek advice from your Adviser to determine the Preservation Level that is right for your needs. What are the Dynamic Rebalancing Rules? The Dynamic Rebalancing Rules apply to a Model Portfolio and a Cash Account together we refer to this as the Investment Portfolio. The Dynamic Rebalancing Rules are designed to ensure the value of your Investment Portfolio will not fall below the relevant Preservation Level. The Rules involve calculating a Target Exposure as follows: Target Exposure = Investment Portfolio Value Protection Level Investment Portfolio Value x Gap Rate The Target Exposure gives a percentage of the Investment Portfolio which needs to be invested in the Model Portfolio to maintain the Preservation Level. CAPITAL PRESERVATION What is the aim of capital preservation? Capital Preservation is designed to preserve a specified level of capital invested in a Model Portfolio through daily monitoring of the exposure between equities and cash with the aim to rebalance before the value falls below the Preservation Level you select. Does it guarantee my capital will be preserved? Capital Preservation does not mean capital safety and it does not guarantee your capital will be preserved. You should be aware that the composition of your portfolio will fluctuate as your investment is rebalanced between equities and cash in line with your chosen Preservation Level. What is the Gap Rate? The Gap Rate is the percentage representing the worst case fall in the Australian equities market over a two day period. We have selected 20% as the value for the Gap Rate and base this on what we believe is generally accepted in the industry. There is a risk that any market fall could be greater than 20%, in which case the ability of the Capital Preservation trading strategy to preserve capital would be reduced. What happens once the Target Exposure is calculated? Once the Target Exposure is calculated, the Responsible Entity compares it to the actual exposure of your Investment Portfolio, i.e., the actual asset allocation of equities and cash. Where the actual exposure of your Investment Portfolio differs to the Target Exposure by more than a nominated allowable amount (of 15%), then the Investment Portfolio will be rebalanced so that it has the same asset allocations as the Target Exposure. 12

What does rebalancing mean? Rebalancing means the Responsible Entity will buy or sell securities for you so that your Investment Portfolio has the same asset allocations as the Target Exposure (see details about the Dynamic Rebalancing Rules above). When the Investment Portfolio is increasing in value the Responsible Entity will rebalance your Investment Portfolio by buying the relevant assets to increase your allocation to a Model Portfolio (for example, buying Australian equities in the case of a Model Portfolio which invests in Australian equities) and therefore decreasing the allocation to Cash. Similarly, rebalancing when the Investment Portfolio s value is decreasing means the Responsible Entity decreases the exposure to the Model Portfolio by selling assets (for example Australian equities) and therefore increasing the allocation to Cash. The amount of your Investment Portfolio allocated to cash can therefore vary from 100% to 0%. The amount of your Investment Portfolio allocated to the Model Portfolio (and therefore the relevant assets, such as Australian equities in our examples above) can vary from 100% to 0%, depending on the asset allocation of the particular Model Portfolio. What are the risks? There are risks associated with the Capital Preservation trading strategy. The ability of this trading strategy to preserve capital is not guaranteed and your investment amount may still decline in value. The risks of the Capital Preservation trading strategy include the following: Your Portfolio may be subject to a high turnover of Australian equities if the market is volatile and therefore higher transaction fees as market fluctuations will lead to rebalancing in line with requested Preservation Levels. This may also have tax implications. There is a possibility that a large drop in the market could exceed the Gap Rate. If the market fell more than 20% then the ability of the Capital Preservation trading strategy to preserve capital would be negatively impacted. The Capital Preservation trading strategy relies on dynamic management, and unlike some other products, there is no swap or other derivative associated with the strategy to assist in preservation. In addition, there are still risks associated with each Model Portfolio and the investments made by the Investment Manager. See the Investment Menu for further details. May result in a high cash component from time to time, depending on the Protection Level you select. What are the benefits? Capital Preservation is a tailored solution which provides a number of benefits: The preservation level can be set by the investor as a percentage of the highest value of the Investment Portfolio. The Preservation Level can be altered at any stage with no fee or charge. It can be applied to any of the Model Portfolios. The Dynamic Rebalancing Rules are unique to each individual investor rather than to a generic portfolio allowing more flexible implementation of investment objectives. Are there any conditions that apply? There are fees that apply if you select Capital Preservation. The Responsible Entity charges a fee of 0.44% per annum (inclusive of GST) of the value of the Investment Portfolio to which Capital Preservation applies charged monthly in arrears (for example, if the Model Portfolio and cash amount to which Capital Preservation applied were $50,000 then the fee charged would be $220 per annum). There are also fees charged by the Investment Managers in respect of the Model Portfolio plus transaction fees that result from the constant rebalancing of your investment. See the Fees and other costs section of the PDS for details about other fees and costs. There is no cost for applying, removing or altering the preservation level of Capital Preservation and if you choose to remove the capital preservation then the underlying securities in the Model Portfolio are not liquidated, i.e., you can remain invested in the Model Portfolio. How do I apply Capital Preservation to my investment? Complete the application form online and provide instructions about Capital Preservation. Once your Account is open, then all instructions to apply, remove or edit the level of Capital Preservation are completed online through the Portal. Cut off times for daily rebalancing Important times are as follows: Cut off time for receipt of Account Instructions: Approximate time the Responsible Entity runs the calculation: Rebalancing of the portfolio until market close: 12 pm sharp AEST 2pm AEST Approximately 4pm AEST Any new instructions or variations to instructions must be received by the Responsible Entity by 12pm or the instructions will be held over until the following Business Day. What instructions do I need to provide to the Responsible Entity? You need to tell the Responsible Entity: 1. which Model Portfolio you would like capital preservation to apply to; and 2. what Preservation Level you would like to apply. You can give an Account Instruction at any time and further details are set out in the PDS. You should consult an Adviser as to whether Capital Preservation suits your needs and to assist you to determine an appropriate Preservation Level. Please ensure you have read a copy of the PDS and understand this risk of applying Capital Preservation on one or more Model Portfolios. 13