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Mason Stevens Managed AccountsMason Stevens Limited ACN 141 447 207 AFSL 351578www.masonstevens.com.au

AKAMBO MANAGED ACCOUNT SERVICE

INVESTMENT MANDATE - MARCH 2017


MASON STEVENS MANAGED ACCOUNTS 2

Important information

This service is offered by Akambo Pty Limited, ABN 65 233 939 629, AFSL 322056 (Akambo or the Program Adviser) in conjunction with Mason Stevens Limited, ABN 91 141 447, AFSL 351578 (Mason Stevens or the MDA Operator). If you are considering using a managed account you must read the Mason Stevens account application, the Investment Option and Model Portfolio information outlined in this document and the Mason Stevens financial services guide.

Mason Stevens has appointed a licensed sub-custodian to hold all client monies and financial products in accordance with regulatory requirements. A copy of the agreement under which the appointment of the sub-custodian was made is available for inspection at the registered office of Mason Stevens.

If you are a retail investor, you must obtain personal advice from a licensed financial adviser on whether a managed account and a particular Investment Option and/or Model Portfolio is appropriate for you given your personal goals, needs and financial circumstances. This document is produced without consideration of the investment goals, needs or financial circumstances of any person who may read it.

Investment involves risk, potentially resulting in (but not limited to) delays in payment of withdrawal proceeds and the loss of income and capital invested. Past performance is not necessarily indicative of future performance. Mason Stevens, Akambo and their respective directors, officers, employees, sub-contractors and associates do not assure or guarantee the capital value of your investments will be maintained or the investment performance of any investments acquired through the managed account under any Investment Option or Model Portfolio.

Where there are references in this document to data provided by third parties, neither Mason Stevens nor Akambo has control over that data and neither party accepts any responsibility for verifying or updating that data.

Mason Stevens, Akambo and their respective directors, officers, employees and associates may from time to time hold interests in investments of, or earn fees and other benefits from, corporations or investment vehicles which may be held in your managed account under any Investment Option or Model Portfolio.

Mason Stevens has issued this document. Akambo consents to the statements in this document attributable to it or referring to it, and has not withdrawn its consent. Akambo has confirmed the statements attributable to it or referring to it are not misleading or deceptive at the time of issue.

All amounts in this document are quoted in Australian dollars and all fees are stated inclusive of goods and services tax (GST).



1. INTRODUCTION

The Akambo Managed Account Service (Service) allows you to establish a managed account (Portfolio) to invest in a range of Investment Options and/or Model Portfolios that aim to deliver specific investment outcomes.

The Service enables you to delegate the day-to-day investment decisions of your Managed Account to the MDA Operator, which is advised by Akambo as the Program Adviser.

The Service allows you to consolidate your investments and to access the benefits of consolidated management and reporting, including viewing the investments, any transactions and any investment changes in your portfolios daily.

Importantly, you, the investor, retain beneficial ownership of all assets within the portfolios you choose to invest in.

2. HOW TO INVEST

With advice from your financial adviser you may choose from the following Investment Options offered by Akambo:

• Akambo Conservative Investment Option

• Akambo Moderately Conservative Investment Option

• Akambo Balanced Investment Option

• Akambo Moderate Growth Investment Option

• Akambo Growth Investment Option

• Akambo High Growth Investment Option

Akambo determines the initial asset allocation for and also manages the ongoing asset allocation of these Investment Options. The parameters for the Investment Options are detailed further from page 8 of this document.

The Investment Options are constructed and managed by Akambo through allocations to specific Model Portfolios listed below:

• Akambo Australian Shares Model Portfolio

• Akambo Australian ETF Model Portfolio

• Akambo Income-Focused Model Portfolio

• Akambo Income-Focused ETF Model Portfolio

• Akambo International Model Portfolio

• Akambo International ETF Model Portfolio

• Akambo Global Opportunities Model Portfolio

You may also invest directly in the Model Portfolios above from advice from your financial adviser. Further information for the Model Portfolios is detailed from page 12 of this document.

In addition to the Investment Options, you may also open a Self-Directed Account. Self-Directed Accounts are accounts which allow you, as the client, or your financial adviser as your representative, to instruct Mason Stevens to deal in investments on your behalf.

These accounts are client directed and you determine the composition of your portfolio. A Self-Directed Account does not form part of the Investment Options or Model Portfolios advised by Akambo in this Investment Mandate.

Self-Directed Accounts can be used to hold assets you specifically request or as a transitional portfolio before migrating into an Investment Option or Model Portfolio.

INVESTMENT MANDATE

About the Akambo Managed Account Service



INVESTMENT MANDATE

About the Akambo Managed Account Service

3. PARTIES TO THE INVESTMENT MANDATE

The Investment Mandate is between Mason Stevens and the investor (you) for your investment in one or more of the Investments Options and/or Model Portfolios set out in the document, which Mason Stevens administers subject to the terms of this Investment Mandate.

Akambo

Akambo is the Program Adviser for the Investment Options and Model Portfolios in accordance with an agreement with the MDA Operator. Akambos’ responsibilities include:

• to advise the MDA Operator on the initial asset allocations and changes to the ongoing asset allocations for the Investment Options;

• to advise the MDA Operator on and manage the Model Portfolio in accordance with the defined investment parameters outlined in this document;

• to advise the MDA Operator on the composition of the investment universe for the Model Portfolios and advise of any changes in accordance with the defined investment parameters on pages outlined in this document;

• to advise the MDA Operator on corporate actions arising from any direct investments held across any of the Model Portfolios.

Mason Stevens

Mason Stevens is the MDA Operator and Administrator of the Service. Mason Stevens’ responsibilities include:

• establishing your Managed Account;

• maintaining records of investments in your Portfolio;

• providing you with up-to-date, online reporting for your Portfolio;

• implementing transactions in accordance with:

- your instructions or delegated authority;

- changes in the asset allocation or investments in the Model Portfolios advised by the Program Adviser.

• implementing corporate actions in the Model Portfolios in response to advice from the Program Adviser;

• arranging the settlement of investments held in your Portfolio;

• recording income on investments held in your Portfolio and crediting the cash account;

• supervising compliance of the Program Adviser’s investment parameters in each Model Portfolio.

Mason Stevens is licensed by the Australian Securities and Investments Commission to provide custodial services to clients and has appointed a licensed sub custodian to hold all client monies and financial products.



INVESTMENT MANDATE

About Akambo

4. ABOUT AKAMBO

Akambo is a financial advisory firm established in 2007. Akambo has a strong background in investment advice and asset management gained through many years of experience in the financial services industry.

Akambo offers individually tailored advice for self-managed super funds, individuals, not-for-profits, families and corporate clients extending across a range of financial services and products. Through its expertise in asset management, financial planning, retirement planning and strategies, insurance products, securities and derivatives strategies, it aims to provide its clients with a broad range of wealth management solutions.

Akambo is able to draw on its broad reach of research and investment products to provide investment advice for your individual investment needs, objectives and financial circumstances.

5. INVESTMENT COMMITTEE

Akambo is responsible for advising the MDA Operator on the management and performance of the Investment Options and Model Portfolios available for investment through this Investment Mandate.

The role of the Akambo Investment Committee is to:

• assess performance and forecasts for domestic and global investment markets;

• assess political, economic and demographic influences on domestic and global investment markets;

• provide guidance on asset allocation and timing of changes to asset allocations in the Investment Options;

• provide guidance on selected investments within the Model Portfolios; and

• provide guidance on perceived investment risks and actions seeking to address these investment risks.

The establishment and management of the Investment Options and Model Portfolios are supervised by an experienced Investment Committee comprising the following members:

Chris Willaton

Chris has been working in the wealth management industry since 1987, when he first joined stockbroking firm McCaughan Dyson. He has since worked with Prudential Bache Securities, ANZ, and with Citigroup as a Vice President in the Private Client Group. He has extensive experience in managing investment portfolios and trading strategies over Australian and international equities and associated derivative products, in addition to providing broader investment solutions.

Chris has RG146 industry accreditation, extensive experience in advising on options and other derivative products, and has obtained US Series 7 qualifications, a requirement by the U.S. Securities and Exchange Commission to trade all U.S security products. He has a Bachelor of Arts from Monash University and a Masters Degree in International Business from the University of Melbourne.

Bernard O’Connor

Bernard has been advising clients in the financial services industry since 1983 and, with over 30 years of experience, has built extensive knowledge around a broad range of financial markets and products. This includes foreign exchange, futures, options, fixed interest, Australian and US securities, and commodities. Bernard has worked with McCaughan Dyson, UBS, ANZ and Citigroup. In addition to RG146 industry accreditation, he has also obtained US Series 7 qualifications, a requirement by the U.S. Securities and Exchange Commission to trade all U.S security products.

Daniel Basic

Daniel joined Akambo in 2013 having graduated with a Bachelor of Economics from LaTrobe University, with a focus on Finance and Macroeconomic Analysis. Daniel brings a quantitative and analytical overlay to Akambo’s investment processes, in addition to managing the portfolio administration processes within Akambo. He is currently studying to obtain the Chartered Financial Analyst (CFA) credential.

Members by Invitation

Akambo may periodically invite qualified experts in various fields to have input into the committee or to be a temporary member of the Investment Committee on an invitational basis. These members may include:

• Asset class specialists;

• Technical market analysts; and

• Independent research providers.



INVESTMENT MANDATE

Investment philosophy

6. INVESTMENT PHILOSOPHY

The investment philosophy of Akambo begins from the perspective that clients are seeking (and deserve) a transparent and flexible solution. Akambo embraces a holistic view of a client’s circumstances and seek to meet their goals and objectives through best of breed solutions and products, coupled with a personalised and interactive service.

The transparency is provided through a focus on direct investments and Exchange Traded Funds (ETFs) wherever possible. This approach helps to simplify and demystify the investment experience for the client, helping to build trust between adviser and client. Akambo’s investment universe is open to other alternatives where circumstances prescribe, however transparency and liquidity are critical in their selection of these.

This transparency and liquidity is supported by a primary focus on large market capitalisation companies. Akambo believe it is critical that to provide transparent outcomes to the client, as it provides confidence and reassurance. Akambo achieve transparency by investing in large companies that are either household names or have products and solutions that a retail client can relate to. This is coupled with an emphasis on concentrated, high conviction investment portfolios.

Akambo believes that active management assists to deliver a flexible, proactive, value-added overlay to their investment portfolios. This is carried out not only at an individual stock level, but through dynamic asset allocation within and across a portfolio. To this end, cash is used as a strategic tool to protect performance within a portfolio and may provide a buffer for opportunities where market conditions demand. If circumstances warrants, Akambo uses the techniques such currency hedging, in order to mitigate against downside protection.

Akambo aims to deliver absolute results within the tolerances of a client’s risk profile, however they are also respectful of the diversity of preferences among clients. As a result an ethical filter is applied to the investment portfolios (i.e. no tobacco or gaming) and Akambo also maintain flexibility to tailor a portfolio where a client expresses other preferences.

As Akambo is self-licensed they have the freedom to draw on research, opinions and data from a broad array of domestic and global providers. This flexibility and rigour behind the investment approach enhances the value in their client solution. This is overlaid with a local and global macro perspective, and prudent use of technical analysis which Akambo believe assists enhance risk management within a portfolio.

Education and communication are also very important, as Akambo believes this empowers the client. But the challenge lies in striking the balance between meeting the client’s appetite for knowledge versus overwhelming them with complex and confusing information. The key to finding this balance comes through asking questions and routinely checking in with what the client’s needs and understandings are.



INVESTMENT MANDATE

Investment process

7. INVESTMENT PROCESS

The Akambo investment process incorporates three key steps in constructing and managing its investment portfolios:

• Macroeconomic trends and analysis Akambo start by identifying regions, sectors, and themes that appear attractive and offer compelling value or momentum. These may be driven by economic, demographic, political or strategic factors (among others), and are derived from a broad selection research, data, and critical analysis on diverse and nuanced insight.

• Stockidentification An intensive process that draws on available research and market opinions to identify the companies that are best placed to exploit these opportunities. This also incorporates the use of technical analysis to identify trends and help fine-tune entry and exit of positions.

• Risk management An overarching focus on protecting client investments remains at the heart the Akambo investment process. This involves actively managing exposures across sectors, themes and geographic regions, and the use of cash as a strategic tool. Akambo are happy to maintain higher cash weightings (within the bounds of the portfolio guidelines) in the absence of any compelling opportunities. Whilst Akambo actively track and measure index correlations and benchmarks, they are not bound them.

IMPORTANT INFORMATION ON DERIVATIVES

The Program Adviser uses an investment strategy that may utilise specific derivatives within one or more of the Model Portfolios outlined in Section 9. If you are a Retail client as defined by the Corporations Act you must be given a Statement of Advice from your financial adviser which covers the features, risks and costs of these financial products as part of this Investment Mandate. In addition, there are also disclosure obligations that are required by the Program Manager and/or the MDA Operator.

For example where ASX-listed ETOs are used you should read the Product Disclosure Document (PDS) issued by the relevant clearing house. The PDS is an important document that is designed to assist you to decide whether use of ETOs are appropriate for you and to outline potential risks associated with investing specifically in this type of financial product. The MDA Operator is not the issuer of the PDS, a copy of the PDS can be obtained from your financial adviser or www.masonstevens.com.au.

In addition to the PDS, information with regards to ETOs can also be found in the ASX booklet, “Understanding Options Trading”. You can download a copy of the ASX booklet at www.asx.com.au. In instances where other ASX-listed or any other derivative listed on an international exchange such as warrants or Over-The-Counter (OTCs) are used by the Program Adviser within the Model Portfolios, the relevant PDS, disclosure document and/ or information booklet should also be made available by your financial adviser.

Due to the nature of these financial products derivatives also carry additional features due to the pooling of collateral and collateral obligations. These collateral obligations are not segregated amongst each derivative holder. These features carry risks that are detailed in Section 11. It is important to note that Mason Stevens does not permit the purchase or sale of any derivatives within any Model Portfolio that could result in any margining risk or a requirement to post collateral on material movements in market prices.



INVESTMENT MANDATE

The Investment Options

8. THE INVESTMENT OPTIONS

The Investment Options are managed according to risk profiles set by the Akambo Investment Committee and you can nominate the Investment Option for investment that you have agreed with your financial adviser. Each Investment Option is exposed to a variable allocation to specific Model Portfolios.

Akambo, as Program Adviser, will advise the MDA Operator of the initial asset allocation weightings for each Investment Option as well as any ongoing changes to these asset allocations. The MDA Operator will execute the changes on your behalf.

With advice from your financial adviser you may choose to invest in the following Investment Options:

• Akambo Conservative Investment Option

• Akambo Moderately Conservative Investment Option

• Akambo Balanced Investment Option

• Akambo Moderate Growth Investment Option

• Akambo Growth Investment Option

• Akambo High Growth Investment Option



AKAMBO CONSERVATIVE INVESTMENT OPTION

RiskProfile

The Akambo Conservative Investment Option (the Investment Option) is a portfolio of diversified investments with the emphasis on cash and fixed income securities. Growth in the Investment Option value will be derived from the accumulation of income.

The Program Adviser will aim to achieve a performance objective of CPI +1% per annum over a period of 3 years or more, net of fees and costs.

This Investment Option is suited to investors comfortable with a portfolio of diversified investments with the emphasis on cash and fixed interest. A low exposure to shares of up to 25% of the portfolio can be considered.

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Investment Parameters

Model Portfolio Weighting Parameters*

Akambo Australian Shares Model Portfolio or Akambo Australian Shares ETF Model Portfolio

15%

Akambo Income-Focused Model Portfolio or Akambo Income-Focused ETF Model Portfolio

55%

Akambo International Model Portfolio or Akambo International ETF Model Portfolio

5%

Cash 25%*The Program Adviser may alter the allocation of the underlying Model Portfolios by +/- 10 percentage points.

AKAMBO MODERATELY CONSERVATIVE INVESTMENT OPTION

RiskProfile

The Akambo Moderately Conservative Investment Option (the Investment Option) is a portfolio containing core investments which have a bias towards capital preservation. A portion of the Investment Option may be invested in property securities and Australian and international equities to provide capacity for some growth potential.


This Investment Option is suited to investors comfortable with a portfolio containing a mix of asset classes which has a bias towards security of capital. Investors are comfortable with some short term capital volatility over a period of three to five years.




25%


50%


10%




AKAMBO BALANCED INVESTMENT OPTION

RiskProfile

The Akambo Balanced Investment Option (the Investment Option) is a portfolio of investments split between aggressive asset classes such as Australian and international equities and investments with defensive income-producing attributes.

The Program Adviser will aim to achieve a performance objective of CPI +2.5% per annum over a period of 5 years or more, net of fees and costs.

This Investment Option is suited to investors comfortable with a balanced portfolio of investments across growth and defensive asset classes within the Model Portfolio. This Investment Option will aim to achieve a satisfactory market related return over the longer term (at least five years) with potential for moderate capital volatility in the shorter term.




35%


40%


15%


AKAMBO MODERATE GROWTH INVESTMENT OPTION

RiskProfile

The Akambo Moderate Growth Investment Option (the Investment Option) is a portfolio containing core investments which have a bias towards long-term growth. Typically more than half the portfolio will be invested in aggressive asset classes such as Australian and international equities.


This Investment Option is suited to investors comfortable with a balanced portfolio of investments with a moderate tilt towards the higher growth asset classes of Australian and International shares. The Investment Option is designed with a long term time horizon of five years or more. It will exhibit some volatility in the short term.




43%


30%


22%


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AKAMBO GROWTH INVESTMENT OPTION

RiskProfile

The Akambo Growth Investment Option (the Investment Option) is a portfolio of investments with a heavy bias toward growth assets, such as Australian and international equities. It is unsuitable for clients requiring high levels of income from their investment.


This Investment Option is suited to investors comfortable with a higher amount of capital volatility with a longer term investment time frame of more than 5 years. It is not suitable for investors requiring a high level of income.




50%


15%


30%


AKAMBO HIGH GROWTH INVESTMENT OPTION

RiskProfile

The Akambo High Growth Investment Option (the Investment Option) is a portfolio consisting predominantly of investments in growth asset classes such as Australian and international equities. It is unsuitable for clients requiring income from their investments.


This Investment Option is suited to investors comfortable with a portfolio of investments predominantly in Australian and international shares. Due to the inherently high levels of volatility associated with these asset classes this Investment Option is suited to people with an investment horizon of at least seven years. It is not suitable for investors requiring a high level of income.




55%


0%


43%


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The Model Portfolios

9. THE MODEL PORTFOLIOS

The following pages contain descriptions for each of the Model Portfolios that are available through this Investment Mandate. The Investment Options detailed in Section 8 will have asset allocations to the Model Portfolios below.

Your financial adviser may also tailor a Portfolio for you using these Model Portfolios. Each Model Portfolio is managed in accordance with an agreement between the Program Adviser and the MDA Operator.

With advice from your financial adviser you may choose to invest in the following Model Portfolios:

• Akambo Australian Shares Model Portfolio

• Akambo Australian ETF Model Portfolio

• Akambo Income-Focused Model Portfolio

• Akambo Income-Focused ETF Model Portfolio

• Akambo International Model Portfolio

• Akambo International ETF Model Portfolio

• Akambo Global Opportunities Model Portfolio



INVESTMENT MANDATE


AKAMBO AUSTRALIAN SHARES MODEL PORTFOLIO

MODEL PORTFOLIO OBJECTIVE

The investment objective of the Akambo Australian Shares Model Portfolio (the Model Portfolio) is to provide clients with medium and long term investment returns via a concentrated exposure to investments predominantly listed within the S&P/ASX 200.

MODEL PORTFOLIO PARAMETERS

Feature Description

Investment universe* Securities listed on the S&P/ASX 200 Accumulation Index (Up to 25% may be held in securities listed outside of the S&P ASX 200 Accumulation) including, managed funds, exchange traded funds (ETFs), listed warrants, and/or derivatives.

Up to 30% of the Model Portfolio value may be held in hybrid and/or fixed income securities in place of cash where relatively large cash balances would otherwise be held.

Investment strategy The strategy of the Model Portfolio is to predominantly invest in companies that will enable it to outperform the S&P/ASX 200 Accumulation Index. The Model Portfolio is not guided by or bound by the index weightings of the broader benchmark indices, but does take into consideration an appropriate balance of weightings between various investment sectors. The investment strategy of the Model Portfolio will be active to the extent that investments will be reviewed regularly and the composition will be scrutinised to ensure that it is well placed to achieve its goal of outperforming the relevant benchmark. The annual portfolio turnover will be dependent on market conditions and the performance of individual stocks within the Model Portfolio. The investment methodology will be guided by a selection of available broker research, relevant technical analysis, and other stock-specific and macro-economic news and data.

Benchmark S&P/ASX 200 Accumulation Index

Target Return To outperform the S&P/ASX 200 Accumulation Index

Minimum number of investments 6

Maximum number of investments 25

Maximum cash weighting 30%

Maximum single security weighting 30%

Rebalancing Program Adviser Discretion

Minimum initial investment $50,000

Suggested investment timeframe 5 years +

Please note these parameters are not absolutely fixed at all times. The Program Adviser targets these parameters but variations may develop from time to time due to corporate actions, market share prices, index changes and delays in rebalancing due to the Program Adviser minimising turnover of your investments. The timing of additional investments in your Managed Account may also lead to short term different balances of cash and securities as your portfolio is being implemented. Mason Stevens will give you reasonable notice of any change to these parameters.

It is at the sole discretion of the MDA Operator to accept investments below the minimum investment amount.

*The Program Adviser uses an investment strategy that may utilise specific derivatives within the Model Portfolios outlined above. If you are a Retail client as defined by the Corporations Act you must be given a Statement of Advice from your financial adviser which covers the features, risks and costs of these financial products as part of this investment mandate. For further important information about derivatives please refer to page 7.



AKAMBO AUSTRALIAN SHARES ETF MODEL PORTFOLIO


The investment objective of the Akambo Australian Shares ETF Model Portfolio (the Model Portfolio) is to provide clients with medium and long term investment returns in Australian equities via Exchange Traded Funds (ETFs) and Listed Investment Companies (LICs).


Feature Description

Investment universe Exchange Traded Funds (ETFs) and Listed Investment Companies (LICs) with exposure to Australian equities.

Investment strategy The strategy of the Model Portfolio is to invest in ETFs (and potentially LICs) which provide broad exposure to Australian equities. Whilst the general strategy is to obtain broad Australian equity exposure, the Manager may sometimes seek to overlay this with a thematic approach to asset allocation.

Benchmark S&P/ASX 200 Accumulation Index

Target Return To outperform the S&P/ASX 200 Accumulation Index










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AKAMBO INCOME-FOCUSED MODEL PORTFOLIO


The investment objective of the Akambo Income-Focused Model Portfolio (the Model Portfolio) is to obtain a rate of return above the relevant benchmark by investing primarily in domestic and international fixed income securities.


Feature Description

Investment universe Australian and international fixed income securities, asset backed securities, corporate bonds, hybrid securities, ETFs, term deposits and managed funds.

Investment strategy The strategy of the Model Portfolio is to extract enhanced income or distribution returns by investing in high quality and mostly liquid fixed income investments.

Benchmark RBA Cash Rate + 2.5%

Target Return To outperform the RBA Cash Rate +2.5%












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AKAMBO INCOME-FOCUSED ETF MODEL PORTFOLIO


The investment objective of the Akambo Income-Focused ETF Model (the Model Portfolio) is to obtain a rate of return above the relevant benchmark by investing primarily in domestic and international fixed income securities and/or domestic and international fixed income ETFs.


Feature Description

Investment universe Australian and international fixed income securities, asset backed securities, corporate bonds, hybrid securities, ETFs, term deposits and managed funds.

Investment strategy The strategy of the Model Portfolio is to extract enhanced income or distribution returns by investing in high quality and mostly liquid fixed income investments.

Benchmark RBA Cash Rate + 2.5%

Target Return To outperform the RBA Cash Rate +2.5%












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AKAMBO INTERNATIONAL MODEL PORTFOLIO


The investment objective of the Akambo International Model Portfolio (the Model Portfolio) is to provide clients with exposure to international markets.


Feature Description

Investment universe ASX and internationally listed ETFs, ASX listed instalment warrants, managed funds and international listed securities.

Investment strategy The strategy of the Model Portfolio is to invest in a mix of international shares, indices (via ETFs listed on the ASX or other major stock exchanges) or managed funds that will provide a concentrated geographic or thematic exposure, as well as obtain direct exposure to a number of listed international shares that either have a compelling longer term growth story, or provide shorter term strategic opportunities. The Model Portfolio may seek foreign exchange positions for hedging or investment purposes.

Benchmark MSCI® All-Country World Index (ACWI)

Target Return To outperform the MSCI® (ACWI) AUD over rolling 5 year periods












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AKAMBO INTERNATIONAL ETF MODEL PORTFOLIO


The investment objective of the Akambo International ETF Model Portfolio (the Model Portfolio) is to provide clients with exposure to international markets through the use of Exchange Traded Funds (ETFs).


Feature Description

Investment universe ASX and internationally listed ETFs, Listed Investment Companies (LICs) and managed funds.

Investment strategy The strategy of the Model Portfolio is to invest in ETFs (and potentially LICs) which provide broad exposure to international equities. Whilst the general strategy is to obtain broad international equity exposure, the Manager may sometimes seek to overlay this with a thematic approach to asset allocation.


Target Return To outperform the MSCI® (ACWI) AUD over rolling 5 year periods












AKAMBO GLOBAL OPPORTUNITIES MODEL PORTFOLIO


The investment objective of the Akambo Global Opportunities Model Portfolio (the Model Portfolio) is to take advantage of value and wholesale opportunities in Australian and international equities, fixed income and other asset classes. These opportunities may be through placements, new listings, or other means.


Feature Description

Investment universe Securities within the S&P/ASX 200 Index and their listed warrants and/or derivatives, international equities, managed funds and ETFs.

Up to 25% of the portfolio value may be invested outside of the S&P/ASX 200.

Up to 100% of the Model Portfolio value may be held in hybrid and/or fixed income securities should circumstances warrant.

Investment strategy The investment strategy of the Model Portfolio is to predominantly invest in value and event driven opportunities in local and international markets, in both equities and fixed income. The investment methodology will be guided by a research-driven stock selection process, as well as a technical overlay.


Target Return To outperform the MSCI® World Index AUD over rolling 5 year periods










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Investment risks

10. RISKS

Before you make an investment decision, it is important that you understand the risks that can affect your investment. You must be prepared for the risk that your investment does not meet your investment objectives or you lose money on your investment.

It is important for you to obtain personal advice about your financial circumstances and needs as well as the suitability of the managed account service and the Model Portfolios within this Investment Mandate before making your decision to invest.

Specific investment risks apply to all investments that may have an effect on your Managed Account. The risks to which your Managed Account (including the Portfolios individually) may be exposed include, but are not limited to the following factors:

• Investment risk - All investments have an innate level of risk. The general expectation is that a high risk investment offers a higher expected return on investment. Investment risk may result in performance less than you expect or the loss of some or even all of the capital invested or reduction in or no income and possible delays in repayment. Whilst it is the intention of the Program Adviser to implement strategies designed to minimise potential losses, there can be no assurance that these strategies will be successful.

• Individual investment risk - Investments held in an account can and do fall in value for many reasons, such as changes to the business operations, management, legislative or environmental factors that may affect the issuer of the investment.

The value of an individual company’s shares or income securities may change as a result of factors such as changes in management, market sentiment or industry specific events. The Program Manager and indeed the respective Investment Managers who are responsible for management of the underlying investments selected aim to reduce this risk through careful research and analysis, combined with a value bias investment approach and diversification.

Other risks of investment include:

• Specific model portfolio risk - The Program Adviser’s investment approach may result in an Model Portfolio whose asset allocation across different investments generates at any time a risk profile which is materially different from the description in this document and/or whose generated investment returns differs substantially from an industry benchmark and hence the investment returns may also differ substantially from industry benchmark returns.

• Derivatives risk - A derivative is a financial instrument which has characteristics derived from an underlying asset or index. Typically the derivatives are either cash settled or are realised by being closed out with a derivative of the opposite nature. Derivatives may be used by investment managers or managed funds to protect against changes in market value of existing investments, to simulate an investment position without purchasing or selling the underlying asset, to partially or substantially manage against various risks such as credit and interest rate risks or to gear an investment or a portfolio. The use of derivatives brings additional risks. These risks include the failure of the value of derivatives to move in line with the underlying asset, a derivative position may be costly to reverse, the parties/counterparties associated with the derivative contract do not fulfil their obligations, and derivatives may be impacted by market liquidity. Derivatives which are a leveraged investment can increase your potential losses and gains in relation to movements in the price of the underlying assets. Exchange traded derivatives, including the ETOs available for the Model Portfolio, do not remove all of the general risks of derivatives, and may have their own risks. Before investing in any derivatives instrument you must fully understand and accept the risks involved.

• Sophisticated product risk - The use of sophisticated financial products, such as derivatives including ETOs has the potential to cause losses that are large in proportion to the money invested in them. Such products may also have embedded leverage thereby potentially magnifying further losses. The cost of using such financial products may also reduce returns. The Model Portfolio may also invest in the above products and their use has the potential to cause losses that are large in proportion to the money invested in them or even unlimited losses. Before investing in any derivatives instrument you must fully understand and accept the risks involved.



INVESTMENT MANDATE

Investment risks

• Custody and margining risk - Mason Stevens is custodian for derivatives held for all of its clients, including for accounts which do not include these Model Portfolio’s. While Mason Stevens allocates derivatives to its clients in its records, as with other investment, the derivatives may be aggregated in the accounts of sub-custodians and clearing participants of exchanges. This can lead to derivative assets which are beneficially held for a client being available to meet the margin or other exchange obligations arising due to other derivatives held for Mason Stevens in the same account. This can expose a client’s assets to being lost, due to meeting those other obligations (i.e., without any default by the client). It is important to note that today Mason Stevens does not permit the purchase or sale of any derivatives within any Model Portfolio that could result in any margining risk or a requirement to post collateral on material movements in market prices.

• Specific portfolio risk - The selected investment managers investment approach may result in a Managed fund or Model Portfolio that differs substantially from an industry benchmark and hence the investment returns may also differ substantially from industry benchmark returns.

• Market risk - Unexpected conditions (i.e. economic, technological or political) can have a negative impact on the returns of all investments within a particular market. General movements in local and international stock markets, prevailing and anticipated economic conditions, investor sentiment, interest rates and exchange rates could all affect the value of listed securities and the investment returns.

• Company or security risk - Risks which could affect the value of a specific security, such as a fall in the profit performance of a company, may impact adversely on its market price and may also affect the interest rate it has to pay to borrow funds, which in turn, can affect the value of its securities.

• Economic risk - A downturn in the general economic conditions in Australia or globally may adversely affect the performance of the Portfolio.

• Legislative risk - A change in the government, or in the government’s policy can result in tax and other legislative conditions in Australia which may adversely affect the performance of the portfolio. Specifically, changes to negative gearing, franking credits, capital gains tax, superannuation law and regulations, trusts, and other tax deduction/ legislation changes can all significantly impact on the returns and values of investments held by the various portfolios and in turn the net returns to the investor.

• Currency risk - There is a risk that the portfolio is exposed to risk as a result of any unhedged investments that are denominated in foreign currencies. Returns to investors in their base currency (i.e. Australian dollars) are affected by changes in foreign currency rates.

• Credit risk - Any change in the market perception of the creditworthiness of a an issuer or to any security of that issuer, or the credit rating of the issuer or any security of that issuer, may affect the security’s value.

• Liquidity risk - There is a risk that certain investments in a Portfolio may be difficult to purchase or sell, preventing closing out of a position or rebalancing within a timely period and at a fair price.

• Inflation risk - Your investment may not keep pace with inflation. Broadly, this could mean that prices may increase more than the value of your investments in the portfolio and if this risk eventuates, you would not be able to buy as much with the value of your investments in the future as you could now.

• Concentration risk - If your Portfolio is concentrated in one investment or sector, a fall in that investment or sector may have a significant adverse effect on your total portfolio. Diversification is used as a strategy aimed at reducing the impact of any one investment on the portfolio of investments.

• Capital erosion risk - There is the risk that payments under a regular withdrawal plan will result in erosion of the value of your Portfolio over time. This will occur if withdrawal amounts and fees exceed the income and capital growth of your Portfolio.

• Interest rate risk - Changes in interest rates will affect the value of interest bearing securities and shares in some companies. Rises in interest rates may lead to losses in value and falls in interest rates may lead to rises in value.

• Portfolio and/or Investment Manager risk - The performance of a Portfolio and/or Investment Manager selected by the Program Adviser depends on the expertise and investment decisions of the investment managers key staff.

• Program Adviser risk - The performance of the Program Adviser to advise on the asset allocations for the Model Portfolios, the appointment of Portfolio and Investment Managers and any selection of direct investments within the Model Portfolios will depend on the expertise and processes employed by their key staff or delegates.



INVESTMENT MANDATE

Investment risks

• Personnel risk - There is the risk that key people who are significant to the management services of the Program Adviser or any Investment Manager become unable or unavailable to perform their role. This can adversely impact the investment returns for the relevant investments or, in the case of the Program Adviser, the return of the Model Portfolio.

• Performance risk - While the managed account service is managed within a risk management framework, the strategies adopted for any particular Model Portfolio may not be successful and the value of the total portfolio may decline.

• Diversification risk - Failure to adequately diversify between asset classes, securities and sectors may significantly increase risk.

• Time horizon risk - There is no assurance that in any time period, particularly in the short term, the portfolio will achieve the investment objectives. Many of the underlying assets may be volatile particularly over the short term. Many portfolios are more suitable for medium to long term investors and are not designed for short term investment.

• Counterparty risk - Underlying investments may be traded “over the counter” and as such investors face risk in transacting with counterparties, including settlement and execution.

• Third party risk - The MDA Operator uses information and services provided by third parties such as sub-custodians and other service providers. Procedures are in place to address risks associated with outsourcing, such as having comprehensive service agreements with service providers. If a service provider advises of an error, it is corrected and if material, it will generally be communicated to you or your financial adviser (or both).

• Systems and technology risk - The MDA Operator relies on the integrity and reliability of the portfolio trading and administration systems used to manage your Managed Account. To minimise potential risks, established systems operated by experienced system providers are used. The system providers must have back-up arrangements and business continuity plans. In the event that the systems fail there may be delays in processing transactions or in accessing your investment capital and investment returns may differ from those that would have been achieved.

Please note that this list is not designed to be exhaustive.

Investors who may have concerns regarding any of the above risk factors, or any other applicable risks are encouraged to contact their financial adviser.



INVESTMENT MANDATE

Fees

11. FEES

This section shows the fees and other costs you can be charged. These fees may be subject to change from time to time. You will be notified of any changes and given not less than 30 days’ written notice for any increase. The fees and costs will be either deducted from the cash holding of your Portfolios or deducted from the returns of some investments and paid to Mason Stevens. This is usually determined by the type of investment involved.

You should read all of the information about fees and costs because it is important to understand their impact on your investment.

Fees and costs may vary depending on the Investment Option and/or Model Portfolio(s) you choose. Details of the fees and costs relevant to you are included in the Statement of Advice you will receive from your financial adviser if you are a retail client. The fees you authorise to be paid to your financial adviser will be additional to the fees set out below. All adviser fees must be disclosed to you.

If the Investment Option or Model Portfolio invests in investments such as managed funds, fees and costs applicable to the underlying investments are set out in the relevant Product Disclosure Statements (PDS) or other disclosure document. All fees and costs are quoted inclusive of GST and are in A$.



INVESTMENT MANDATE

Fees

The following fees and costs (inclusive of GST) are applicable across all Model Portfolios.

Fee type Detail

Program Adviser fee 1.65% p.a. Calculated daily and charged monthly in arrears.

Transaction costs

• Domestic equities 0.22% of the value of each transaction, minimum $33.00 per transaction.

• International equities 0.825% of the value of each transaction, with minimum A$75.00 per transaction, or foreign equivalent (converted at time of the transaction).

Transaction charges may be converted and applied in the local currency. This may result in variances in the equivalent of the AUD transaction cost applied.

• Managed funds $16.50 per transaction.

• Bond transaction fee 0.55% of the value of each transaction, minimum $33.00 per transaction.

• External bond settlement fee 0.22% of the value of each transaction, minimum $33.00 per transaction.

In specie transfer fee Up to $33.00 per investment transferred out.

Administration & Custody fee 0.275% p.a. on balances up to and including $1,000,000. Calculated daily and charged monthly in arrears.

0.055% p.a. on the portion of the balance above $1,000,000. Calculated daily and charged monthly in arrears.

Account service fee $165 p.a. charged monthly in arrears (or on termination).

Adviser fees You may also agree with your financial adviser an entry and/or ongoing fee to be paid which is automatically deducted from your Managed Account. The timing and amount of the payment of this fee will depend on what you agree with your financial adviser. All adviser fees must be disclosed to you.



INVESTMENT MANDATE

Fees

12. EXPLANATION OF FEES & COSTS

Program Adviser fee

These fees are paid to Mason Stevens for the management of your investments. Mason Stevens uses these fees to pay the Program Adviser for the services they provide.

Administration & Custody fee

This fee is paid to Mason Stevens for the administration and custody of your investments.

Account service fee

This fee is paid to Mason Stevens for the establishment and ongoing operation of your Managed Account.

Transaction costs

Transaction costs are the costs incurred when buying and selling investments for your Managed Account. These costs are incurred at the time of the transaction. If the transaction cannot settle, any dishonour fee will be deducted from the cash holding of the account to which the transaction relates, together with any costs associated with the failed transaction that are passed onto Mason Stevens as the MDA Operator. These fees are deducted at the time the transaction fails to settle.

Corporate actions and receipt of income from investments ordinarily do not incur a transaction fee or brokerage.

On buying an investment, transaction fees are added to the purchase price which is deducted from the cash holding of your account at the time of purchase. On selling an investment, transaction fees are deducted from the sale proceeds credited to the cash holding of your account.

Other management fees and costs

You may also be charged fees and costs for holding various investments such as managed funds where the Program Adviser chooses to invest in these investments.

Some of the fees and costs may be a charged directly from your account or an indirect charge depending of the type of investment held. The Program Adviser should direct you to the relevant offer document for any associated fees or costs.

Inspecie transfer fee - direct equities

Should you request a transfer of direct equity investments in or out of your Managed Account, an inspecie transfer fee of up to $33.00 for each investment is payable on transfer. This fee is paid to Mason Stevens.

Inspecie transfer fee - managed funds

Should you request a transfer of managed fund investments in or out of your Managed Account, an inspecie transfer fee of up to $33.00 for each investment is payable on transfer plus any applicable stamp duties. This fee is paid to Mason Stevens.

Portfolio cash holdings

For further information on the cash holding of each of your Portfolios, refer to the ‘Cash Holdings’ section on Page 27 of this document.

The difference between the rate paid on your AUD cash holding and the rate paid by the sub-custodian on the underlying custodial account is retained by the MDA Operator as a fee to cover the direct and indirect costs of administering your cash holding.

Other fees and costs

All government and other fees and costs (including bank fees, stamp duty, cheque dishonours, fail fees and penalty interest), incurred as a result of a contribution or withdrawal, are on-charged to you. The fee or cost will be deducted from the cash holding of the Portfolio to which the transaction relates.

Changes to fees and other costs

Fees may be amended from time to time, due to changes in such matters as regulation, market conditions, market charges and procedures. However, the fees will not be increased without providing you with at least 30 days’ notice of the change.

Buy/selldifferential

Instructions may be received from different investors to buy and sell interests in the same financial product or security. These instructions may be offset by Mason Stevens so that only one net order is made to purchase or sell the security. If this occurs, and subject to the net request being accepted, investors who dispose of an investment will have that disposal effected and recorded by Mason Stevens. Similarly investors who acquire an investment will have that acquisition effected and recorded by Mason Stevens. Netting may reduce transaction costs and Mason Stevens is entitled to retain any resulting benefit that may be gained, in respect of and including the buy/sell spread on underlying investments.

After fees

The term “after fee performance objective” considers the direct costs of investment, and do not include the account service fee, inspecie transfer fee, other fees and costs, or any fees charged by your financial adviser.



INVESTMENT MANDATE

Establishing your managed account

To invest through the Service as a retail client you need to consult with your financial adviser and receive personal financial advice. As a retail client, you must receive a Statement of Advice from your financial adviser that communicates to you that a managed account and the relevant Investment Option and/or Model Portfolio(s) you have chosen are suitable for your circumstances. Your financial adviser must conduct an annual review for the managed accounts that you hold and determine the ongoing appropriateness of the respective managed discretionary account and investment mandate.

If you are a wholesale or sophisticated investor as defined by the Corporations Act, you are not required to be given a Statement of Advice or Record of Advice, even if personal advice is provided.

Before you decide to invest you should receive and read the following:

• Account Application;

• the Terms;

• Mason Stevens Financial Services Guide; and

• this document, which details the various Investment Options and Model Portfolios that you can invest in.

13. OPENING AN ACCOUNT

To open a managed account, please complete an Account Application Form. In the Account Application, you can select one or a combination of an Investment Option and/or Model Portfolio under which your investments will be managed.

You can invest cash or transfer an existing portfolio of approved investments into your Managed Account (or a combination of both).

Not all securities can be transferred into your account. Your financial adviser will confirm if any of your existing investments cannot be transferred.

The minimum investment requirement for each Investment Option and Model Portfolio is detailed earlier in this document. These minimums will apply unless agreed otherwise by Mason Stevens.

An email confirming that your application has been accepted and account opened will be sent to you (or by mail if no email is provided). It will contain details of your Managed Account and a user name and password, which will allow you to access information on your Managed Account at www.masonstevens.com.au.

An email confirming that your application has been accepted and account opened will be sent to you (or by mail if no email is provided). It will contain details of your Managed Account and a user name and password, which will allow you to access information on your Managed Account at www.akamboprivate.com. If we are unable to process your Account Application Form because it is incomplete or incorrectly completed we will contact you or your financial adviser and if necessary return the Account Application Form.

Cash contribution

Cash contributions can be made by bank deposit, electronic transfer or cheque and details are provided in the Account Application Form.

It is important to ensure that the account name is referenced when a payment is made by bank deposit or electronic transfer as it assists with the identification of your transaction. If you omit the account name, there may be delays in implementing your instructions for your Managed Account.

Transfer of investments

Securities and other investments that you own can be transferred to your Managed Account. To do so you will need to complete the appropriate documentation that will be provided by your financial adviser and your financial adviser will be able to assist you with completing the necessary documentation.

You can only transfer investments to your Managed Account that are beneficially owned by the applicant for the managed account and are in the name on the Account Application Form for the managed account.

A cost base history per parcel needs to be recorded for each of the investments transferred to your Managed Account before the transfer can be finalised. You should carefully check the details you are providing since Mason Stevens accepts the details you provide and accepts no liability for the information provided.

Investments you wish to transfer in or purchase in your Portfolio, that is not part of an Investment Option or Model Portfolio, may be held in a separate account known as a “Self- Directed Account”.

Self-Directed Accounts allow you, as the client, or your financial adviser, as your representative, to instruct Mason Stevens to deal in investments, securities and derivatives on your behalf. These accounts are client directed and you determine the composition of your Portfolio.

You can elect to establish a Self-Directed Account in the Account Application Form.



INVESTMENT MANDATE

Implementing and managing your portfolio

14. INVESTMENT

Once your account application has been accepted and your Managed Account established by Mason Stevens, your cleared funds are invested in securities and other investments at weightings determined by the Program Adviser, consistent with the objectives and strategy of the Investment Option and/or Model Portfolio(s) which you have nominated.

Generally, your initial investment amount and any subsequent contribution is invested within ten business days, although the Program Adviser will use its discretion to implement the strategy within a timely manner but no longer than 90 days. The implementation strategy will consider such factors as market conditions, availability and liquidity of investments, upcoming new issues and economic parcel sizes, so your account’s portfolio may differ from the Investment Option or Model Portfolio due to delays in implementation for these reasons. If the delay in implementing the strategy takes longer than 90 days, your financial adviser will communicate this to you and outline the reasons for this.

The Program Adviser is responsible for advising on the execution of the transactions to invest your Portfolio(s) using brokers or other intermediaries approved by Mason Stevens who will execute upon these instructions.

In managing your account’s portfolio, small uneconomic transactions will generally be avoided and a minimum transaction size determined by the Program Adviser may be applied. Purchases and sales of securities may be aggregated with those for other portfolios so that only transactions for the net changes are implemented, though all the changes will be reflected in all of the portfolios. Any costs associated with the purchase and sale of securities and investments will be apportioned between all relevant portfolios.

The composition of your Portfolio managed under a particular Investment Option or Model Portfolio may differ from the current Investment Option or Model Portfolio. The weightings of the securities and other investments in an individual portfolio will be managed with an allowance for the value of the holding to differ from target weightings.

Variations can also occur in the composition of your account’s portfolio and the Investment Option or Model Portfolio because of practical issues associated with investing. Factors such as additional investments, withdrawals and the payment of dividends and interest will affect the cash holding and the composition of your Portfolio.

Due to such variations, your Portfolios across any Investment Option and/or Model Portfolio may also differ from the aggregate of the current Investment Option and/or Model Portfolio.

The variations in the composition of your Portfolio may differ from other clients’ portfolios. This may result in variations in the performance between your Portfolio and the portfolios of others investing under the same Investment Option or Model Portfolio.

15. INVESTING IN YOUR MANAGED ACCOUNT

You can open or add to your account by contributing cash or securities. If you transfer in securities to open or add to your account, where they are held within an Investment Option or Model Portfolio, decisions relating to those securities will be the responsibility of the Program Adviser from the time the securities are registered in the name of the sub-custodian and transferred into your Managed Account. The securities are held and managed under the terms of your Managed Account contract and you remain the beneficial owner of the assets.

16. ONGOING MANAGEMENT

When you nominate an Investment Option or Model Portfolio, you are instructing Mason Stevens to ensure that your Portfolio is invested in accordance with the investment recommendation of the Program Adviser. You authorise Mason Stevens to make investment decisions within the investment parameters of the particular Investment Option or Model Portfolio. This includes buying and selling securities, and other investments, acquiring and redeeming units and responding to corporate actions and dividend elections.

If you have selected an Investment Option or Model Portfolio and the agreement between Mason Stevens and the Program Adviser is terminated, your instructions will be sought.

Should you wish to avoid investments in a particular company or industry you must provide written notice of your preference to your financial adviser. This will be processed by Mason Stevens once it receives this instruction from your financial adviser. This may be treated by Mason Stevens as terminating your Investment Mandate.



INVESTMENT MANDATE

Operating your managed account

17. CASH HOLDINGS

Each portfolio has a cash holding. Income received on shares and other investments held in your Portfolio will be credited to your cash holding of that portfolio. All fees and expenses are paid from the portfolio to which they relate.

At the discretion of the Program Adviser, the income may be used to add to existing investments in your Investment Option or Model Portfolio, invested in a new security or investment, or held in cash.

Mason Stevens will maintain the minimum cash holding of your account by selling or redeeming investments if necessary, after taking into account income received. Please note that the sale or redemption of these investments may result in transaction fees and capital gains being realised.

Interest is calculated on the daily balance and paid monthly at the rate determined by Mason Stevens and as notified to your financial adviser from time to time.

18. CORPORATE ACTIONS AND VOTING

The Program Manager is responsible for making decisions on any corporate actions arising from investments beneficially held by you in your Investment Option and/or Model Portfolio/s, and for direction of voting at shareholder meetings, under the terms of the agreement with Mason Stevens. Corporate actions include:

• participation in share buy-backs or takeover offers;

• rights issues;

• options; and

• any instruments that has attached holder voting rights.

The MDA Operator may receive reports, confirmations and other information relating to the investments of the Portfolios in your Managed Account from companies, brokers and other parties with such information being retained by Mason Stevens.

19. ADDITIONAL INVESTMENTS

You can make additional investments into your Managed Account at any time. Please refer to the relevant Investment Option or Model Portfolio for minimum additional investment amounts.

Additional investments can be made by bank deposit, electronic transfer, cheque, or via the transfer of shares or other approved investments you own.

20. WITHDRAWALS

You can request a withdrawal from a portfolio at any time, subject to maintaining the minimum balance in that portfolio, by providing a signed authorisation or written request from an authorised email address. Proceeds of the withdrawal will be paid by electronic transfer to your nominated bank account that is stipulated in your application form or as instructed by the authorised signatories for the managed account.

If sufficient cash is available in your nominated portfolio, withdrawal is usually completed within three business days.

If sufficient cash is not available in your nominated portfolio, Mason Stevens will sell or redeem investments in that portfolio to obtain the cash required. Proceeds of the withdrawal will generally be available within five to eight business days.

When an event outside Mason Stevens’ control affects the ability to sell investments such as suspension of trading in a market, or added liquidity risks in markets makes realising assets difficult, payment will be made as soon as is practicable.

21. CHANGING YOUR ACCOUNT DETAILS

To change the contact details of your Managed Account you should complete the Change of Details Form or provide a written request from an authorised email address.

If you wish to change the nominated bank account into which withdrawals are paid, you must complete a Change or Add New Nominated Bank Details Form with original signatures from all persons named as account holders. Once a request has been received Mason Stevens will confirm any change of bank details directly with at least one person named as account holder.



INVESTMENT MANDATE

Operating your managed account

22. CLOSING YOUR MANAGED ACCOUNT

If you decide to close your Managed Account you can request:

• the disposal of securities in your Portfolios and the proceeds to be retained to a Self-Directed Account; or

• the disposal of securities in your Portfolios and the proceeds be paid to your nominated bank account; or

• the transfer of securities in your Portfolios into an issuer or broker sponsored holding; or

• a combination of these.

To close your Managed Account, please complete an Account Closure Form.

If you decide to transfer securities, they will be transferred in accordance with your instructions either to an issuer sponsored or to a broker sponsored account (i.e. it has a CHESS HIN), which must be in the same name as your Managed Account. The managed account will generally be closed within ten days of receipt of your request.

Prior to closing your Managed Account, all fees and expenses will become due and payable and will be deducted. The managed account will generally be closed within ten days of receipt of your request.

Prior to closing your managed account, all fees and expenses will become due and payable and will be deducted.



INVESTMENT MANDATE

Instructions

23. GENERAL

Any instructions for your Managed Account must be in writing and provided directly to Mason Stevens or through your financial adviser if they have delegated authorities for that account.

24. ELECTRONIC INSTRUCTIONS

Both you and your financial adviser can use email to provide instructions for your Managed Account via an authorised email address specified on your application form.

In sending any electronic instruction by the terms of the Service you release Mason Stevens from and indemnify Mason Stevens against all losses and liabilities arising as a result of processing an instruction that includes your Managed Account number and a signature that is apparently your signature or that of an authorised signatory of your Managed Account or an email that purports to be your authorised email address. You also agree that neither you nor anyone claiming through you has any claim against Mason Stevens or the appointed sub-custodian in relation to any payment or action. You bear the risk of a fraudulent withdrawal request made by a person who has access to your Managed Account number, signature or email account.



25. TAXATION

As the beneficial owner of the assets held in the Portfolios in your Managed Account, all income, capital gains and capital losses and their taxation consequences are passed onto you or are attributable to you.

After the end of the financial year you will be provided with details of income, capital gains or losses, tax credits and other items to help you to complete your tax return.

26. TAX FILE NUMBER OR AUSTRALIAN BUSINESS NUMBER

If you are an Australian resident and a Tax File Number (TFN) or Australian Business Number (ABN) or exemption is not quoted, tax will be deducted from any income you earn at the highest marginal rate plus Medicare levy.

27. TAX ACCOUNTING METHOD

The Service allows you to view your capital gains tax position. Holdings of an investment will be sold starting with the highest cost parcel held over 12 months. This tax accounting methodology is known as long term, highest cost method.

INVESTMENT MANDATE

Taxation



INVESTMENT MANDATE

Reporting

28. ONLINE REPORTING

Once your Managed Account is established you are granted online access to information on your Managed Account via the secure website www.akamboprivate.com. Your agreement to access this online reporting will be acknowledged in the Account Application Form provided.

You will separately receive a user name and a password which allows you to access the website and reports for your Portfolios in your Managed Account. We suggest you change your password on your first visit to the website. Online reporting allows you to view daily reports for your Portfolio as at the previous business day that show:

• transactions affecting your account such as any purchases or sales in investments;

• income transactions including franking credits and withholding tax;

• portfolio valuation; and

• realised and unrealised capital gains.

The portfolio valuation uses 20 minute delayed prices for domestic listed investments when viewing your Portfolio. These are supplied by an independent financial data company. Any unlisted investment, such as managed funds, held in your Portfolio will be valued at least weekly where possible. For unlisted securities, Mason Stevens will provide a price which it reasonably considers reflects the market price of the security, or if it is unable to reasonably determine a market price, it will apply a best estimate of a fair price.

(Occasional downtime for maintenance will delay your access and is kept to a minimum.)

29. ANNUAL REPORT

Annually, you will also receive a report for your Portfolios that include:

• realised gains and losses from the sale of investments;

• income received from investment;

• franking credit received;

• income and expenses, and

• other tax components such as foreign income, deferred tax, TFN withholding tax and other items which relate to income received from your investments.

This annual report will assist in the preparation of your tax return. In your report, Mason Stevens will provide you with an annual statement and supporting important information that will assist you and your tax adviser in determining your tax obligations. Since taxation depends on your own circumstances, you should consult your tax agent or accountant when completing your return. Mason Stevens and the members of Akambo do not provide tax or legal advice.

This report will generally be available by the end of September each year and will include a statement from the auditors of Mason Stevens.

We usually provide this report and any statement from the auditors of Mason Stevens by emailing you with a link to your account.



INVESTMENT MANDATE

Additional information

30. YOUR MANAGED DISCRETIONARY ACCOUNT AGREEMENT

Your Managed Discretionary Account Agreement (MDA Agreement) comprises:

i. a signed Account Application Form;

ii. the Terms;

iii. the Mason Stevens Financial Services Guide;

iv. this Investment Mandate; and

v. your Statement of Advice (if you are considered to be a retail client).

If there is any inconsistency between the terms of this Investment Mandate and the other terms of your MDA Agreement, the terms of this Investment Mandate will prevail.

31. YOUR MANAGED ACCOUNT

References to “your Managed Account” in this mandate include all the investments in your designated holdings in the Portfolio (unless otherwise specified).

32. PERIOD OF OPERATION OF THE INVESTMENT MANDATE

This agreement remains in force until either party gives a notice of termination to the other of this Investment Mandate, or the Managed Account.

Please note that if we give you notice of changes to the Investment Mandate, your MDA Agreement continues until you give notice of termination of your Managed Account.

Also, if you instruct us to vary your Portfolio from the portfolio selected, we will treat that as your notice of termination of your Managed Account unless we tell you otherwise.

Subject to your agreement, your Managed Account will be managed in accordance with the terms of this Investment Mandate.

33. DISPUTE RESOLUTION

Mason Stevens has established an internal process for handling disputes with the view to ensuring the prompt, fair and effective resolution of complaints. If you have a concern or complaint, please tell us so that we can investigate and try to resolve the matter. We aim to resolve most issues within five business days.

You can contact us if you believe your complaint has not been satisfactorily dealt with, or if you have not received a response, within 45 days, you may wish to contact the Financial Ombudsman Service (‘FOS’). FOS is an independent dispute resolution service, registered with the Australian Securities and Investments Commission, which can consider complaints about financial products.

Mason Stevens is a member of FOS (our FOS membership number is 15155). The service is free to our clients.

The contact details for FOS are:

Financial Services Ombudsman Limited GPO Box 3 Melbourne VIC 3001

T: 1800 36 72 87 F: 03 9613 6399 E: [email protected] W: www.fos.org.au

34. CONFLICTS

Mason Stevens has a contractual arrangement with Akambo to support Mason Stevens with the administration and custody in relation to the operation of the Service. Under this arrangement Akambo is entitled to receive a fee.

Mason Stevens does not pay Akambo a fee for its role as Program Adviser as outlined in this Investment Mandate. However, Mason Stevens does facilitate fee payments direct from investors’ accounts to Akambo for their role of Program Adviser.

Outside of the arrangements described above, Mason Stevens does not have any relationships or associations which could be expected to influence the provision of this Service.

Mason Stevens may from time to time offer financial products and other services outside this Service and these will be disclosed separately.



INVESTMENT MANDATE

Additional information

35. CONTACTS

Please contact your financial adviser or Akambo if you have any queries or require further information.

Akambo’s contact details are:

Level 14 379 Collins Street Melbourne VIC 3000

T:+ 61 3 9602 3233 F: +61 3 9602 5009 E: [email protected] W: www.akamboprivate.com

Mason Stevens contact details are:

Level 21 9 Castlereagh Street Sydney NSW 2000

GPO Box 5003 Sydney NSW 2001

T: 1300 98 88 78 E: [email protected] W: www.masonstevens.com.au

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