finovia portfolio solutions annual reports for the year ended 30 … · 2014-09-28 · select asset...

Finovia Portfolio Solutions

Annual Reportsfor the year ended 30 June 2014

Finovia Balanced Portfolio ARSN 135 243 800Finovia Moderate Portfolio ARSN 135 243 622Finovia Growth Portfolio ARSN 135 243 435

Select Asset Management Limited is the Responsible Entity of the Finovia Portfolio Solutions,which are registered managed investment schemes, domiciled in Australia. Their registeredoffice and principal place of business is Level 10, 2 Bulletin Place, Sydney, NSW 2000.

Page No.

Directors' Report 1

Auditor's Independence Declaration 4

Statements of Comprehensive Income 5

Statements of Financial Position 6

Statements of Changes in Net Assets Attributable to Unitholders 7

Statements of Cash Flows 8

Notes to the Financial Statements 9

Directors' Declaration 25

Independent Audit Report 26

CONTENTS

Directors’ Report

The Schemes are:

Finovia Balanced PortfolioFinovia Moderate PortfolioFinovia Growth Portfolio

Directors

date of this report are:

Brendan Foley Appointed 25 June 2002Dominic McCormick Appointed 25 June 2002 Resigned 27 August 2014David Yale Appointed 23 September 2002 Resigned 27 August 2014Alex Wise Appointed 23 May 2013Patrick Bergin Appointed 23 May 2013Peter Bennett (Non-executive) Appointed 15 May 2005 Resigned 28 November 2013Clayton Freind (Non-executive) Appointed 25 June 2002 Resigned 27 August 2014

Scheme Information

is incorporated and domiciled in Australia.

The registered office of the Responsible Entity is located at Level 10, 2 Bulletin Place, Sydney, NSW 2000.

divestment decisions and therefore the performance of the Schemes in terms of returns to investors.

Principal Activity

The Schemes are unlisted registered managed investment schemes domiciled in Australia.

Constitutions of the Schemes. There have been no significant changes in the nature of this activity during the year.

Review of Operations

results are affected by the performance of the markets in which the individual Schemes invest.

Results

The performance of each Scheme, as represented by the results of its operations, was as follows:

Year ended30 June 2013

$Finovia Balanced Portfolio 1,450,548Finovia Moderate Portfolio 1,541,606Finovia Growth Portfolio 473,138

The results of the operations of the Schemes are disclosed in the Statements of Comprehensive Income of the financial reports. These

The Directors of Select Asset Management Limited (ABN 94 101 103 011, AFSL 223271), the Responsible Entity of the Finovia PortfolioSolutions ("the Schemes") present their report, together with the financial reports of the Schemes, for the year ended 30 June 2014.

The Directors of the Responsible Entity who, unless otherwise stated, have been in office from the beginning of the year and until the

Finovia Portfolio Solutions are Australian Registered Schemes. Select Asset Management Limited, the Responsible Entity of the Schemes,

Select Asset Management Limited is the Investment Manager for the Schemes and is responsible for the Schemes' investment and

The principal activity for the Schemes during the year was the investment of unitholders' funds in accordance with the provisions of the

921,198939,126

Net profit/(loss) attributable tounitholders after tax expense

and before finance costs


$

305,306

-1-

Directors’ Report (continued)

Results (continued)

$ CPU $ CPUFinovia Balanced Portfolio

Interim 714,045 13.50 47,261 0.25 Final 36,094 12.50 446,749 2.59

750,139 494,010

Finovia Moderate PortfolioInterim 685,751 9.00 115,806 0.50 Final 84,580 13.45 524,590 2.47

770,331 640,396

Finovia Growth PortfolioInterim 115,364 10.50 - - Final 6,814 7.96 128,897 2.66

122,178 128,897

The total amount unpaid at the reporting date is disclosed in the Statements of Financial Position.

Performance

made for the taxation of the distribution of income and are net of all fees.


%Finovia Balanced Portfolio 5.5Finovia Moderate Portfolio 5.3Finovia Growth Portfolio 5.7

Significant Changes in the State of Affairs

expected to be within the next 12 months.

year.

Significant Events After the Balance Date

August 2014.

future periods.

Likely Developments and Expected Results

to movements in the underlying investment markets over time.

Environmental Regulations

or of a State or Territory.

commenced winding up on 15 November 2013. Termination of the Schemes will be finalised once all assets are disposed of which is

The performance figures below have been calculated using exit prices and treating distribution of income as reinvested with no allowance

Since 30 June 2014, there have been no other matters or circumstances that have significantly or may significantly affect the Schemes in

There are no significant developments expected in respect of the Schemes. The performance of the Schemes in the future will be subject

The operations of the Schemes are not subject to any particular or significant environmental regulation under a law of the Commonwealth

Balanced Portfolio and the Finovia Growth Portfolio commenced winding up on 18 October 2013, while the Finovia Moderate Portfolio

Other than the changes mentioned above, there have been no other significant changes in the state of affairs of the Schemes during the

Distributions to unitholders

Select Asset Management Limited was acquired by OneVue Holdings Limited an Australian Securities Exchange listed company on 28

%(0.5)1.3

(4.8)

Year ended 30 June 2014 Year ended 30 June 2013


The Schemes are currently being wound up following the decision of the Responsible Entity to wind up their operations. The Finovia

-2-

A member firm of Ernst & Young Global LimitedLiability limited by a scheme approved under Professional Standards Legislation

4

Ernst & Young Centre680 George StreetSydney NSW 2000 AustraliaGPO Box 2646 Sydney NSW 2001

Tel: +61 2 9248 5555Fax: +61 2 9248 5959www.ey.com/au

Auditor’s Independence Declaration to the Directors of the ResponsibleEntity of the Schemes listed in Appendix A of the Audit Report

In relation to our audit of the financial report of the Schemes listed in Appendix A of the audit report forthe financial year ended 30 June 2014, to the best of my knowledge and belief, there have been nocontraventions of the auditor independence requirements of the Corporations Act 2001 or any applicablecode of professional conduct.

Ernst & Young

Jonathan PyePartner23 September 2014

Statements of Comprehensive IncomeFor the year ended 30 June 2014

2014 2013 2014 2013 2014 2013Note $ $ $ $ $ $

Investment IncomeDividends 16,348 - 12,946 - 6,044 - Trust distributions 50,693 321,071 87,777 385,623 13,232 90,974 Interest 22,349 1,879 26,994 2,684 10,243 45 Net foreign exchange gain - - - - 2 - Net changes in the fair value of investments 927,263 1,065,779 890,045 1,001,039 329,204 382,807 Responsible entity fee rebates 8(b) 43,469 292,145 44,901 417,658 14,861 68,998 Other income 2,471 - 2,135 - 1,017 - Total Investment Income 1,062,593 1,680,874 1,064,798 1,807,004 374,603 542,824

Expenses Investment management fees 8(b) 71,658 230,273 88,452 265,339 23,411 69,670 Other expenses 51,809 53 54,836 59 45,886 16 Total Expenses 123,467 230,326 143,288 265,398 69,297 69,686

Net Profit Attributable to Unitholders Before Tax Expense and Finance Costs 939,126 1,450,548 921,510 1,541,606 305,306 473,138

Withholding tax expense - - 312 - - - Net Profit Attributable to Unitholders After Tax Expense and Before Finance Costs 939,126 1,450,548 921,198 1,541,606 305,306 473,138

Finance Costs Attributable to UnitholdersDistributions to unitholders 750,139 494,010 770,331 640,396 122,178 128,897

Net Profit Attributable to Unitholders After Finance Costs 188,987 956,538 150,867 901,210 183,128 344,241

Other Comprehensive Income/(Loss) - - - - - -

Total Comprehensive Income Attributable to Unitholders 188,987 956,538 150,867 901,210 183,128 344,241

Finovia Balanced Portfolio Finovia Moderate Portfolio Finovia Growth Portfolio

-5-

Statements of Financial PositionAs at 30 June 2014

2014 2013 2014 2013 2014 2013Note $ $ $ $ $ $

AssetsCash and cash equivalents 7(a) 315,159 2,363 391,155 1,757 98,335 2,631 Receivables 3 1,195 293,335 1,072 296,898 524 95,580 Financial assets held at fair value through profit or loss 5 1,766,039 19,314,730 2,161,408 23,146,216 473,836 5,496,601 Total Assets 2,082,393 19,610,428 2,553,635 23,444,871 572,695 5,594,812

Liabilities Distributions payable 36,094 444,829 84,580 521,718 43,162 128,786 Return of capital payable 224,256 - 250,000 - - - Payables 4 40,000 18,076 40,000 20,999 40,000 5,828

Total Liabilities Excluding Net Assets Attributable to Unitholders 300,350 462,905 374,580 542,717 83,162 134,614

Net Assets Attributable to Unitholders 1,782,043 19,147,523 2,179,055 22,902,154 489,533 5,460,198


-6-

Statements of Changes in Net Assets Attributable to UnitholdersFor the year ended 30 June 2014

2014 2013 2014 2013 2014 2013$ $ $ $ $ $

Net Assets Attributable to UnitholdersOpening balance 19,147,523 27,057,892 22,902,154 30,125,860 5,460,198 8,605,596 Applications 89,804 642,193 365,951 1,852,590 58,541 180,246 Reinvested distributions 1,899 2,286 1,187 3,112 21 111 Redemptions (17,421,914) (9,511,386) (20,991,104) (9,980,618) (5,176,007) (3,669,996)Return of capital (224,256) - (250,000) - (36,348) -

1,593,056 18,190,985 2,028,188 22,000,944 306,405 5,115,957 Total Comprehensive Income Attributable to Unitholders 188,987 956,538 150,867 901,210 183,128 344,241 Net Assets Attributable to Unitholders 1,782,043 19,147,523 2,179,055 22,902,154 489,533 5,460,198


-7-

Statements of Cash FlowsFor the year ended 30 June 2014







Note $ $ $ $ $ $

Cash Flows from Operating Activities Proceeds from sale of financial instruments held at fair value through profit or loss 35,985,380 9,412,000 41,824,017 8,483,001 10,576,139 3,625,500 Payment for purchases of financial instruments held at fair value through profit or loss (17,507,198) (583,500) (19,949,164) (522,000) (5,224,170) (126,500) Dividends received 16,348 - 12,946 - 6,044 - Trust distributions received 322,383 550,630 360,315 738,087 104,205 141,534 Responsible entity fee rebates received 57,923 298,921 63,231 423,529 18,024 71,632 Interest received 21,829 1,861 26,455 2,642 10,061 55 GST received 4,288 3,356 5,497 2,674 1,102 1,201 Other income received 2,471 - 2,135 - 1,017 - Investment management fees paid (89,204) (237,705) (109,451) (271,771) (28,397) (72,558)Withholding tax paid - - (312) - - - Fixed expense recovery fees paid - (128) - (139) - (40)Other expenses paid (11,809) (53) (14,836) (59) (5,886) (16)Net Cash Inflow from Operating Activities 7(b) 18,802,411 9,445,382 22,220,833 8,855,964 5,458,139 3,640,808

Cash Flows from Financing ActivitiesApplications received 89,274 642,723 365,951 1,811,558 57,699 181,088 Redemptions paid (17,421,914) (9,511,386) (20,991,104) (9,980,618) (5,176,007) (3,669,996)Distributions paid (1,156,975) (580,064) (1,206,282) (717,283) (207,781) (150,902)Return of capital paid - - - - (36,348) - Net Cash Outflow from Financing Activities (18,489,615) (9,448,727) (21,831,435) (8,886,343) (5,362,437) (3,639,810)

Net increase/(decrease) in cash and cash equivalents held 312,796 (3,345) 389,398 (30,379) 95,702 998 Cash and cash equivalents at beginning of the financial year 2,363 5,708 1,757 32,136 2,631 1,633 Effect of foreign currency exchange rate changes - - - - 2 -

Cash and Cash Equivalents at End of the Financial Year 7(a) 315,159 2,363 391,155 1,757 98,335 2,631

Non-cash financing and operating activities 7(c) 4,127 2,286 1,187 3,112 21 111


-8-

Notes to the Financial Statements For the year ended 30 June 2014

1. Summary of significant accounting policies

consistently applied to all years presented, unless otherwise stated in the following text.

(a) Basis of Preparation

liabilities held at fair value through profit or loss, that have been measured at fair value.

amount expected to be recovered or settled within twelve months in relation to these balances cannot be reliably determined.

All amounts are presented in Australian dollars unless otherwise stated.

(b) Statement of Compliance

Board.

(i) New and amended standards adopted by the Schemes

effective for the annual reporting period commencing 1 July 2013. The affected policies are:

●

● Liabilities

adopting the standards above have been explained and summarised in Note 11.

(ii) New standards and interpretations not yet adopted

extent relevant to the Schemes) and interpretations is set out below:

●

Financial Instruments (effective from 1 January 2018)

accounting. The Schemes have not yet decided when to adopt AASB 9.

● (effective for annual reporting periods beginning on or after 1 January 2014)

the Schemes’ financial statements.

The derecognition rules have not been changed from the previous requirements, and the Schemes do not apply hedge

AASB 2012-3 Amendments to Australian Accounting Standards – Offsetting Financial Assets and Financial Liabilities

AASB 2012-3 clarifies the offsetting criteria in AASB 132 Financial Instruments : Presentation and addressesinconsistencies in their application. This includes clarifying the meaning of ‘currently has a legally enforceable right of set-off’and that some gross settlement arrangements may be considered equivalent to net settlement. The standard is effective forannual reporting period beginning on or after 1 January 2014. The Directors do not expect this to have a significant impact on

2010) , AASB 2012-6 Amendments to Australian Accounting Standards - Mandatory Effective Date of AASB 9 and TransitionDisclosures and AASB 2013-9 Amendments to Australian Accounting Standards - Conceptual Framework, Materiality and

AASB 9 Financial Instruments addresses the classification, measurement and derecognition of financial assets andfinancial liabilities. It has now also introduced revised rules around hedge accounting. The standard is not applicable until1 January 2018 but is available for early adoption. The Directors do not expect this to have a significant impact on therecognition and measurement of the Schemes’ financial instruments as they are carried at fair value through profit or loss.

AASB 2012-2 Amendments to Australian Accounting Standards – Disclosures – Offsetting Financial Assets and Financial

Any changes in accounting policies and adjustments to the amounts recognised in the financial statements as a result of

Certain new accounting standards and interpretations have been published that are not mandatory for 30 June 2014 reportingperiods and have not been early adopted by the Schemes. The Directors’ assessment of the impact of these new standards (to the

AASB 9 Financial Instruments (2009 or 2010 version) , AASB 2009-11 Amendments to Australian Accounting Standardsarising from AASB 9 , AASB 2010-7 Amendments to Australian Accounting Standards arising from AASB 9 (December

months, except for financial assets and liabilities held at fair value through profit or loss and net assets attributable to unitholders. The

The financial statements have been prepared in accordance with the Australian Accounting Standards as issued by the AustralianAccounting Standards Board and International Financial Reporting Standards as issued by the International Accounting Standards

The Schemes had to change some of its accounting policies as a result of new and revised accounting standards which became

AASB 13 Fair Value Measurement and AASB 2011-8 Amendments to Australian Accounting Standards arising from AASB 13

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been

The financial reports are general purpose financial reports, which have been prepared in accordance with the requirements of theCorporations Act 2001, Australian Accounting Standards and other authoritative pronouncements of the Australian AccountingStandards Board. The financial reports have also been prepared on a historical cost basis, except for financial assets and financial

The Statements of Financial Position are presented on a liquidity basis. Assets and liabilities are presented in decreasing order ofliquidity and are not distinguished between current and non-current. All balances are expected to be recovered or settled within twelve

-9-


1. Summary of significant accounting policies (continued)

(b) Statement of Compliance (continued)

(ii) New standards and interpretations not yet adopted (continued)

● Financial Statements (effective 1 January 2014)

1 January 2014. No significant impact is expected on adoption.

or future reporting periods and on foreseeable future transactions.

(c) Financial Instruments

(i) Classification

The Schemes classify financial assets and liabilities into the categories below in accordance with AASB 139.

Financial assets and liabilities at fair value through profit or loss

The category of financial assets and financial liabilities at fair value through profit or loss comprises:

Financial instruments held-for-trading

purpose of generating a profit from short-term fluctuation in price. (ii) Recognition/derecognition

and rewards of ownership. Financial liabilities are derecognised when the obligation under the liabilities are discharged.

(iii) Measurement

Financial assets and liabilities at fair value through profit or loss

value through profit or loss are expensed in the Statements of Comprehensive Income.

presented in the Statements of Comprehensive Income in the period in which they arise.

at the measurement date.

will determine the point within the bid-ask spread that is most representative of fair value.

market participants making the maximum use of market inputs and relying as little as possible on entity-specific inputs.

be made where deemed appropriate to reflect values based on recent actual market transactions.

For further details on how the fair value of financial instruments is determined, please see Note 9 (e).

The fair value of unlisted managed investment funds and unlisted unit trusts is determined on the basis of the published redemptionprices of those unlisted managed investment funds and unlisted unit trusts at the reporting date. Adjustments to these values may

The fair value of financial assets and liabilities that are not traded in an active market are determined using valuation techniques. TheSchemes use a variety of methods and makes assumptions that are based on market conditions existing at each reporting date.Valuation techniques used include the use of comparable recent arm’s length transactions, reference to other instruments that aresubstantially the same, discounted cash flow analysis, option pricing models and other valuation techniques commonly used by

and losses arising from changes in the fair value of the ‘financial assets or liabilities at fair value through profit or loss’ category are

For the year ended 30 June 2013, the fair value for financial instruments traded in active markets at the reporting date is based ontheir quoted price or binding dealer price quotations (bid price for long positions and ask price for short positions), without anydeduction for transaction costs. For the year ended 30 June 2014, the Schemes have adopted AASB 13 Fair Value Measurementand utilized the last traded market price as fair valuation input for both financial assets and financial liabilities where the last tradedprice falls within the bid-ask spread. In circumstances where the last traded price is not within the bid-ask spread, management

Fair value is the price that would be received to sell or paid to transfer a liability in an orderly transaction between market participants

These include equity securities and managed investment funds. These financial instruments are acquired or incurred principally for the

The Schemes recognise financial assets and financial liabilities on the date it becomes party to the contractual agreement (trade date)and recognise changes in fair value of the financial assets or financial liabilities from this date. Financial assets are derecognisedwhen the right to receive cash flows from the financial assets has expired or the Schemes have transferred substantially all risks

At initial recognition, the Schemes measure a financial asset at its fair value. Transaction costs of financial assets carried at fair

Subsequent to initial recognition, all financial assets and liabilities at fair value through profit or loss are measured at fair value. Gains

AASB 2013-5 Amendments to Australian Accounting Standards – Investment Entities and revised AASB 10 Consolidated

In August 2013, the AASB issued AASB 2013-5 Amendments to Australian Accounting Standards – Investment Entities,which provides an exemption from consolidation of subsidiaries under AASB 10 Consolidated Financial Statements forentities which meet the definition of an 'investment entity'. The amending standard requires that investment entities measuretheir investment in particular subsidiaries at fair value through profit or loss and is applicable for periods beginning on or after

There are no other standards that are not yet effective and that are expected to have a material impact on the Schemes in the current

-10-



(c) Financial Instruments (continued)

(iv) Offsetting financial instruments

the liability simultaneously.

As at the end of the reporting period, there are no financial assets or liabilities offset in the Statements of Financial Position.

(d) Foreign Currency Translation

(i) Functional and presentation currency

Schemes compete for funds and is regulated. The Australian dollar is also the Schemes’ presentation currency.

(ii) Transactions and balances

Comprehensive Income.

changes in the market price of securities. Such fluctuations are included with the net changes in the fair value of investments.

of Comprehensive Income on a net basis within net foreign exchange gain/(loss).

(e) Investment Income

measured. The following specific recognition criteria must also be met before income is recognised:

Dividend Income

withholding tax in the Statements of Comprehensive Income.

Trust Distributions Income

Trust distributions are recognised as income on an entitlements basis.

Interest Income

Interest earned on cash and cash equivalents is recogised in the Statements of Comprehensive Income on an accrual basis.

amount of the financial instrument.

Changes in the Fair Value of Investments

during the year).

(f) Cash and Cash Equivalents

Schemes' cash requirements.

For the purposes of the Statements of Cash Flows, cash and cash equivalents include deposits held at call with a bank or financialinstitution. Cash and cash equivalents also include highly liquid investments with original maturities of three months or less which are readilyconvertible to cash on hand at the Responsible Entity's option and which the Responsible Entity uses in its day to day management of the

fair value was determined. Translation differences on assets and liabilities carried at fair value are reported in the Statements

Income is recognised to the extent that it is probable that the economic benefits will flow to the Schemes and the income can be readily

Interest is recognised for all debt instruments using the effective interest rate method. This is the rate that discounts estimated futurecash receipts through the expected life of the financial instrument, or a shorter period where appropriate, to the net carrying value of the

Changes in the fair value of investments are recognised as income and are determined as the difference between the fair value at yearend or consideration received (if sold during the year) and the fair value as at the prior year end or cost (if the investment was acquired

Dividends are recognised as income on the date the share is quoted ex-dividend with any related foreign withholding tax recorded as anexpense. The Schemes currently incur withholding tax imposed by certain countries on investment income. Such income is recorded gross of

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of thetransactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translations at yearend exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Statements of

The Schemes do not isolate that portion of unrealised gains or losses on securities and derivative financial instruments that aremeasured at fair value through profit or loss and which is due to changes in foreign exchange rates from that which is due to

Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when

Financial assets and liabilities are offset and the net amount reported in the Statements of Financial Position when there is a legallyenforceable right to offset the recognised amounts and there is an intention to settle on a net basis, or realise the asset and settle

Items included in the Schemes’ financial statements are measured using the currency of the primary economic environment in whichit operates (the "functional currency''). This is the Australian dollar, which reflects the currency of the economy in which the

-11-



(g) Receivables

Responsible Entity consider that the carrying amounts of receivables approximate their fair values.

(h) Payables

carrying period is dictated by market conditions and is generally less than 30 days.

(i) Goods and Services Tax

of Financial Position.

activities which is recoverable from, or payable to, the taxation authority is classified as operating cash flows.

(j) Taxation

Schemes, and the Schemes fully distribute the taxable income.

(k) Distributable Income

at the end of each half year. Such distributions are determined by reference to the taxable income of the Schemes.

Distributable income includes capital gains arising from the disposal of assets.

capital gains.

Distributions to unitholders are recognised in the Statements of Comprehensive Income as finance costs.

(l) Use of Estimates

believed to be reasonable under the circumstances.

of the Investment Manager, independent of the area that created them.

financial instruments.

For more information on how fair value is calculated, please refer to Note 9 (e) of the financial statements.

(for example, pricing models) are used to determine fair values, they are validated and periodically reviewed by experienced personnel

Models use observable data, to the extent practicable. However, areas such as credit risk (both own and counterparty), volatilities andcorrelations require management to make estimates. Changes in assumptions about these factors could affect the reported fair value of

Distributable income does not include unrealised gains and losses on the net value of investments, accrued income not yet assessableexpenses provided for or accrued but not yet deductible and realised capital losses which are retained to offset future realised

The Schemes make estimates and assumptions that affect the reported amounts of assets and liabilities within the next financial year.Estimates are continually evaluated and based on historical experience and other factors, including expectations of future events that are

For the majority of the Schemes’ financial instruments, quoted market prices are readily available. However, certain financial instruments,for example over-the-counter derivatives or unquoted securities, are fair valued using valuation techniques. Where valuation techniques

Under current legislation, the Schemes are not subject to income tax provided the unitholders are presently entitled to the income of the

In accordance with the Constitutions, the Schemes fully distribute their distributable income to unitholders. Distributions are payable

Receivables include amounts where settlement has not yet occurred and are generally received within 30 days of being recorded asreceivables. Receivables are initially recognised at fair value and subsequently at amortised cost less impairment. The Directors of the

Payables are recognised for amounts to be paid in the future for goods and services received, whether or not billed to the Schemes. The

Responsible Entity fees and other expenses incurred by the Schemes are recognised net of the amount of goods and services tax (GST)recoverable from the Australian Tax Office (ATO) as a reduced input tax credit (RITC). Payables and accruals are stated with the amountof GST included. The net amount of GST recoverable/payable from/to the ATO is included as a receivable or payable in the Statements

Cash flows are included in the Statements of Cash Flows on a gross basis. The GST component of cash flows arising from financing

-12-



(m) Unit Exit Prices

Schemes less estimated transaction costs divided by the number of units on issue.

(n) Terms and Conditions of Units on Issue

of units redeemed.

Unitholders have various rights under the Constitutions and the Corporations Act 2001, including the right to: - have their units redeemed - receive income distributions - attend and vote at meetings of unitholders; and - participate in the termination and winding up of the Schemes.

The rights, obligations and restrictions attached to each unitholder class are identical in all respects.

(o) Capital Management

discretion of unitholders.

The Responsible Entity monitors the level of weekly applications and redemptions relative to the liquid assets in the Schemes.

to any externally imposed capital requirements.

due to changes in the value of assets held and because the Schemes are subject to weekly applications and redemptions at the

Unit exit prices are determined in accordance with the Constitutions and are calculated on a forward pricing basis as the net assets of the

In order to maintain or adjust the capital structure, the Responsible Entity may return capital to unitholders. The Schemes are not subject

Each unit confers upon the unitholder an equal interest in the Schemes, and is of equal value. A unit does not confer an interest in anyparticular asset or investment of the Schemes. Applications received for units in the Schemes are recorded net of any entry feespayable prior to the issue of units. Redemptions from the Schemes are recorded gross of any exit fees payable after the cancellation

The Responsible Entity manages its net assets attributable to unitholders as capital, notwithstanding that net assets attributable tounitholders are classified as a liability. The amount of net assets attributable to unitholders can change significantly on a weekly basis

-13-


2014 2013 2014 2013 2014 2013$ $ $ $ $ $

2. Auditor's Remuneration

Amounts paid or payable to Ernst & Young, the auditor ofthe Schemes for: Audit of the Financial Statements of the Schemes 3,500 5,100 3,500 5,100 3,500 5,100

3,500 5,100 3,500 5,100 3,500 5,100

As at30 June 2014

As at30 June 2013

As at30 June 2014

As at30 June 2013

As at30 June 2014

As at30 June 2013

$ $ $ $ $ $

3. Receivables

Distributions receivable 4 273,922 5 272,543 1 90,974 Responsible entity fee rebates receivable - 14,454 - 18,330 - 3,163 Interest receivable 584 64 715 176 186 4 GST receivable 607 4,895 352 5,849 337 1,439

1,195 293,335 1,072 296,898 524 95,580

4. Payables

Investment management fees payable - 17,546 - 20,999 - 4,986 Unit applications received in advance - 530 - - - 842 Other payable 40,000 - 40,000 - 40,000 -

40,000 18,076 40,000 20,999 40,000 5,828


-14-


2014 2013 2014 2013 2014 2013$ $ $ $ $ $

5. Financial Assets and liabilities held at fair value through profit or losss

Financial assets at fair value through profit or loss Financial instruments held for tradingEquity securities Listed equity securities 297,538 - 283,766 - 87,467 - Unlisted equity securities 277,178 - 265,897 - 95,530 -

Managed investment funds Unlisted managed investment funds 1,191,323 19,314,730 1,611,745 23,146,216 290,839 5,496,601 Total financial instruments held for trading 1,766,039 19,314,730 2,161,408 23,146,216 473,836 5,496,601

Total financial assets at fair value through profit or loss 1,766,039 19,314,730 2,161,408 23,146,216 473,836 5,496,601

2014 2013 2014 2013 2014 2013No. of Units No. of Units No. of Units No. of Units No. of Units No. of Units

6. Units on Issue

The movement in the number of units on issue during the year was as follows:

Opening balance 17,263,988 25,085,369 21,215,219 28,615,693 4,848,633 7,888,779 Applications 77,413 564,029 323,652 1,667,965 48,824 154,453 Reinvested distributions 1,655 2,041 1,064 2,866 18 98 Redemptions (15,261,479) (8,387,451) (19,051,523) (9,071,305) (4,355,197) (3,194,697)Closing balance 2,081,577 17,263,988 2,488,412 21,215,219 542,278 4,848,633



-15-


2014 2013 2014 2013 2014 2013$ $ $ $ $ $

7. Cash Flow Information

(a) Reconciliation of Cash and Cash EquivalentsCash and cash equivalents at the end of the period as shownin the Statements of Cash Flows is reconciled to the relateditems in the Statements of Financial Position as follows:

Cash on deposit 315,159 2,363 391,155 1,757 98,335 2,631 315,159 2,363 391,155 1,757 98,335 2,631

(b) Reconciliation of Change in Net Assets Attributable to Unitholders to Net Cash Inflow/(Outflow) from Operating ActivitiesNet profit attributable to unitholders 939,126 1,450,548 921,198 1,541,606 305,306 473,138

Proceeds from sale of financial instruments held at fair value through profit or loss 35,985,380 9,412,000 41,824,017 8,483,001 10,576,139 3,625,500 Payment for purchases of financial instruments held at fair value through profit or loss (17,507,198) (583,500) (19,949,164) (522,000) (5,224,170) (126,500)Net changes in the fair value of investments (927,263) (1,065,779) (890,045) (1,001,039) (329,204) (382,807)Net foreign exchange loss - - - - (2) - Investment income reinvested (2,228) - - - - -

Changes in assets and liabilities: Decrease in receivables 292,140 239,673 295,826 360,967 95,056 54,405 Increase/(decrease) in payables 22,454 (7,560) 19,001 (6,571) 35,014 (2,928)

Net cash inflow from operating activities 18,802,411 9,445,382 22,220,833 8,855,964 5,458,139 3,640,808

(c) Non-cash Financing and Operating ActivitiesNon-cash financing and operating activities carried out duringthe period on normal commercial terms and conditions included:

Reinvestment of unitholder distributions 1,899 2,286 1,187 3,112 21 111 Participation in reinvestment plans 2,228 - - - - -

4,127 2,286 1,187 3,112 21 111


-16-


8. Related Party Transactions

(a) General Information

The Responsible Entity of the Schemes is Select Asset Management Limited.

(b) Transactions with the Responsible Entity

to be reimbursed for certain expenditure incurred in the administration of the Schemes.

Details of rebates received and fees expensed during the year are set out below:

2014 2013 2014 2013

$ $ $ $

Finovia Balanced Portfolio 43,469 292,145 71,658 230,273 Finovia Moderate Portfolio 44,901 417,658 88,452 265,339 Finovia Growth Portfolio 14,861 68,998 23,411 69,670

Portfolio Solutions. The Responsible Entity receives a portion of the investment management fee from Austreon Pty Limited.

directly to the Schemes.

(c) Directors and Executive Disclosures

to be the Directors of the Schemes. These individuals and the Responsible Entity comprise the KMP of the Schemes.

the date of this report:

Name PositionBrendan Foley Executive Chairman / Chief Executive OfficerDominic McCormick Chief Investment Officer Resigned 27 August 2014David Yale Chief Risk Officer Resigned 27 August 2014Alex Wise Chief Operating officerPatrick Bergin Chief Financial OfficerPeter Bennett Non-executive Director Resigned 28 November 2013Clayton Freind Non-executive Director Resigned 27 August 2014

to services they render to the individual Schemes.

in 2014 and 2013.

Schemes have no employees, however the non-executive directors and executive directors of the Responsible Entity have been deemed

fees expensedrebates receivedInvestment managementResponsible entity fee

of the Schemes. It is the Responsible Entity's intention not to seek reimbursement of these expenses from the Schemes. From 1 December2013 until the date of this report, investment management fees were no longer charged to the Schemes following the announcement ofwinding up of operations of the Schemes on 13 October and 15 November 2013. Expenses associated with custody and audit are charged

The following non-executive directors and executive directors of Select Asset Management Limited held office during the year and until

Remuneration paid to the Responsible Entity is detailed above. No Director of the Responsible Entity was paid any remuneration by theSchemes during the year and their compensation paid by the Responsible Entity or related entities of the Responsible Entity is not related

From time to time, the Directors or their related entities may invest or withdraw from the Schemes. These investments or withdrawalsare on the same terms and conditions as those entered into by other investors. No units were held by the Directors of the Schemes

In accordance with the Constitutions, the Responsible Entity is entitled to receive fees for the provision of services to the Schemes and

The investment management fee is charged by Austreon Pty Limited, a member of the Finovia group and the promoter of the Finovia

During the period 1 July 2013 until 1 December 2013, the Responsible Entity has incurred certain expenses, including audit fees, on behalf

AASB 124 "Related Party Disclosures" defines key management personnel (KMP) as including all non-executive directors, executivedirectors and any other persons having authority and responsibility for planning, directing and controlling the activities of the entity. The

-17-


8. Related Party Transactions (continued)

(d) Investments

(i) Related party investments of the Schemes

Responsible Entity for, are set out below:

2014 2013 2014 2013 2014 2013

$ $ % % $ $

Finovia Balanced Portfolio Select Defensive Portfolio - 9,580,018 - 8.00 - 159,952 Select Growth Portfolio - 9,734,712 - 6.00 - 161,119

Finovia Moderate Portfolio Select Defensive Portfolio - 23,146,216 - 18.27 - 385,623

Finovia Growth Portfolio Select Growth Portfolio - 5,496,601 - 3.50 - 90,974

(ii) Related party investors in the Schemes

Responsible Entity, and other Schemes managed by the Responsible Entity, are set out below:

Number of units held Interest held

Number of units acquired during the year

Number of units disposed of during the

year

Distribution paid or payable during the year

% $2014

Finovia Balanced Portfolio Select Asset Management Limited 18 - 3 (99) 8

Finovia Moderate Portfolio Select Asset Management Limited 16 - 1 (101) 7

Finovia Growth Portfolio Select Asset Management Limited 13 - - (101) 4

2013

Finovia Balanced Portfolio Select Asset Management Limited 114 - 3 - 3

Finovia Moderate Portfolio Select Asset Management Limited 116 - 3 - 3

Finovia Growth Portfolio Select Asset Management Limited 114 - 3 - 3

Fair value of investment Interest held Distributions received or

receivable during the year

Details of the Schemes' investments in related entities, which are registered schemes of which Select Asset Management Limited is the

Details of related party investors in the Schemes, including the Responsible Entity, entities in the same wholly owned group as the

-18-


9. Financial Risk Management Objectives and Policies

(a) Financial Risk Management Objectives, Policies and Processes

change.

as trade debtors and creditors, which arise directly from their operations.

The Responsible Entity is responsible for identifying and controlling the risks that arise from these financial instruments.

level and at underlying investment levels.

The Responsible entity aims to minimise risks through a number of means as outlined below: - having in place appropriate asset allocation policies which are compatible with each Scheme's objectives. - concentrations of risk and sensitivity to key risk factors. - the risks in relation to their strategy. - tested annually. -

(b) Credit Risk

payment. Payment is made on a purchase once the securities have been received by the broker. The trade will fail if either party fails to meet its obligation. (c) Liquidity and Cash Flow Risk

in amount.

position on a regular basis.

attributable to unitholders are payable weekly or monthly as set out in its respective Product Disclosure Statement.

of these assets are impaired nor past due but not impaired. All transactions in listed securities are settled/paid for upon delivery usingapproved brokers. The risk of default is considered minimal, as delivery of securities sold is only made once the broker has received

Risks arising from holding financial instruments are inherent in the Schemes and are managed through a process of ongoing identification,measurement and monitoring. The Schemes are exposed to credit risk, liquidity and cash flow risk, market risk and risk of regulatory

Financial instruments of the Schemes' comprise investments in financial assets for the purpose of generating a return on the investment

credit risk exposure at balance date is the carrying amount of each class of recognised financial asset as indicated in the Statements ofFinancial Position. Other credit risk arises from cash and cash equivalents and deposits with banks and other financial institutions. None

Liquidity risk is the risk that the Schemes will encounter difficulty in realising assets or otherwise raising funds to meet commitments

made by unitholders, in addition to cash and cash equivalents, net assets attributable to unitholders, and other financial instruments such

The Responsible Entity maintains a comprehensive risk management program at the company operational level, at each individual Scheme

applying a rigorous portfolio construction process which includes scenario analysis and stress testing to identify/manage any potential

completing extensive and ongoing due diligence on the underlying investment and fund managers to ensure they are effectively managing

implementing systems to produce regular reports with consistency and accuracy, and maintaining a business continuity plan which is

Credit risk represents the risk that a counterparty will fail to perform contractual obligations under a contract. The Schemes' maximum

managing specific risks such as individual investment risk, investment style risk, manager risk, liquidity risk and market risk throughdiversification and by having limits on the allocations to individual investments, areas/sectors, investment managers and liquidity buckets.

associated with financial instruments. Cash flow risk is the risk that future cash flows associated with financial instruments will fluctuate

To control liquidity and cash flow risk, the Schemes' liquidity is managed so as to maintain sufficient liquid assets to enable them to offer

Under the terms of their Constitutions the Schemes have the ability in limited circumstances to manage liquidity risk by delaying redemptionsto unitholders, if necessary, until the funds are available to pay them. The Responsible Entity also monitors each Scheme's liquidity

appropriate liquidity to investors. In addition, the Schemes operate within established limits to ensure that there is no concentration of risk.

Financial liabilities of the Schemes comprise trade and other payables, distributions payable and net assets attributable to unitholders.Trade and other payables and distributions payable have no contractual maturities but are typically settled within 30 days. Net assets

-19-


9. Financial Risk Management Objectives and Policies (continued)

(d) Market Risk

strategies.

(i) Interest Rate Risk

equivalents are invested at short-term market interest rates.

the reporting date.

% % $ $

Finovia Balanced Portfolio +0.5% -0.5% 1,576 (1,576) Finovia Moderate Portfolio +0.5% -0.5% 1,956 (1,956) Finovia Growth Portfolio +0.5% -0.5% 492 (492)

Finovia Balanced Portfolio +0.5% -0.5% 12 (12)Finovia Moderate Portfolio +0.5% -0.5% 9 (9)Finovia Growth Portfolio +0.5% -0.5% 13 (13)

(ii) Currency Risk

are not subject to currency exchange risk.

(iii) Equity Price Risk

the Schemes' investment portfolios.

The analysis below demonstrates the impact of a movement in interest rates with all other variables held constant. The effect on interestincome shown in the table is based on income prior to any distributions to unitholders. It is assumed that the relevant change occurs at

Market risk is the risk that the fair value or future cash flows of financial instruments will fluctuate due to changes in market variables suchas interest rates, foreign currency exchange rates and equity prices. Market risk is managed and monitored using sensitivity analysis and

the Schemes' financial assets and liabilities are non-interest-bearing which are monitored on a regular basis. As a result, the Schemes arenot subject to significant amounts of risk due to fluctuations in the prevailing levels of market interest rates. Any excess cash and cash

The Schemes do not hold monetary or non-monetary assets denominated in currencies other than the Australian dollar. Hence, the Schemes

Equity price risk is the risk that the fair value of equities decreases as a result of changes in market prices, whether those changes are

2013

2014

caused by factors specific to the individual stock or factors affecting all instruments in the market. Equity price risk exposure arises from

minimised through ensuring that all investment activities are undertaken in accordance with established mandate limits and investment

Interest rate risk is the risk that a financial instrument's value will fluctuate as a result of the changes in market interest rates. The majority of

Change in interest rateImpact on Net Profit/(Loss) and Net Assets Attributable to Unitholders

Interest rate risk

-20-



(d) Market Risk (continued)

(iii) Equity Price Risk (continued)

table below.

reporting dates and assume all other factors are kept constant.

(a) ASX 200 Movement of + / -10%

% % $ $2014Finovia Balanced Portfolio +3.87% -3.87% 68,346 (68,346) Finovia Moderate Portfolio +2.99% -2.99% 64,626 (64,626) Finovia Growth Portfolio +4.75% -4.75% 22,507 (22,507)

2013Finovia Balanced Portfolio +3.94% -3.94% 761,000 (761,000)Finovia Moderate Portfolio +3.06% -3.06% 708,274 (708,274)Finovia Growth Portfolio +4.83% -4.83% 265,486 (265,486)

(b) MSCI World Index Movement of + / -10%

% % $ $2014Finovia Balanced Portfolio +2.44% -2.44% 43,091 (43,091) Finovia Moderate Portfolio +1.42% -1.42% 30,692 (30,692) Finovia Growth Portfolio +1.96% -1.96% 9,287 (9,287)

2013Finovia Balanced Portfolio +2.02% -2.02% 390,158 (390,158) Finovia Moderate Portfolio +1.50% -1.50% 347,193 (347,193) Finovia Growth Portfolio +2.57% -2.57% 141,263 (141,263)

(e) Fair Value Measurement

within the hierarchy is based on the lowest level input that is significant to the fair value measurement. The three levels are:

regularly occurring market transactions on an arms length basis.

for the asset or liability.

the extent that observable inputs are not available.

Level 1: Valued by reference to quoted prices in active markets for identical assets or liabilities. These quoted prices represent actual and

Level 2: Valued using inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (asprices) or indirectly (derived from prices), including: quoted prices in active markets for similar assets or liabilities, quoted prices in markets

by prices from observable current market transactions in the same instrument nor are they based on available market data. Unobservableinputs are determined based on the best information available, which might include the Scheme's own data, reflecting the Scheme's ownassumptions about the assumptions that market participants would use in pricing the asset or liability. Valuation techniques are used to

Change in equity price Equity price risk

The sensitivity is based on the volatility of change in the individual composite indices since inception of each Scheme. This has then beenapplied to the individual Schemes listed below based on their volatility and correlation to those indices. These are based on the 30 June

in which there are few transactions for identical or similar assets or liabilities, and other inputs that are not quoted prices but are observable

Level 3: Valued in whole or in part using valuation techniques or models that are based on unobservable inputs that are neither supported

Financial instruments carried at fair value are categorised under a three-level hierarchy, reflecting the availability of observable marketinputs when estimating the fair value. If different levels of inputs are used to measure a financial instrument's fair value, the classification

The effect on the Net Assets Attributable to Unitholders and Net Profit/(Loss) before distributions due to a reasonably possible change inmarket factors, as represented by possible movements in selected indices , with all other variables held constant is indicated in the

Impact on Net Profit/(Loss) and Net Asset Attributable to Unitholders

Change in equity price Equity price risk

Impact on Net Profit/(Loss) and Net Asset Attributable to Unitholders

-21-



(e) Fair Value Measurement (continued)

hierarchy:

Level 1 Level 2 Level 3 Total$ $ $ $

2014

Finovia Balanced PortfolioListed equity securities 297,538 - - 297,538Unlisted equity securities - - 277,178 277,178Unlisted managed investment funds - 420,915 770,408 1,191,323Total 297,538 420,915 1,047,586 1,766,039

Finovia Moderate PortfolioListed equity securities 283,766 - - 283,766Unlisted equity securities - - 265,897 265,897Unlisted managed investment funds - 540,808 1,070,937 1,611,745Total 283,766 540,808 1,336,834 2,161,408

Finovia Growth PortfolioListed equity securities 87,467 - - 87,467Unlisted equity securities - - 95,530 95,530Unlisted managed investment funds - 109,770 181,069 290,839Total 87,467 109,770 276,599 473,836

2013

Finovia Balanced PortfolioUnlisted managed investment funds - 19,314,730 - 19,314,730Total - 19,314,730 - 19,314,730

Finovia Moderate PortfolioUnlisted managed investment fund - 23,146,216 - 23,146,216Total - 23,146,216 - 23,146,216

Finovia Growth PortfolioUnlisted managed investment fund - 5,496,601 - 5,496,601Total - 5,496,601 - 5,496,601

The following table shows a reconciliation of the movement in the fair value of financial instruments categorised within Level 3 between thebeginning and the end of the financial year:

30 June 2014 30 June 2013 30 June 2014 30 June 2013$ $

Finovia Balanced PortfolioPurchases 267,938 - 871,189 - Sales - - (168,130) - Gain recognised in the Statement of Comprehensive Income 9,240 - 67,349 - Closing balance 277,178 - 770,408 -

Finovia Moderate PortfolioPurchases 257,034 - 1,195,283 - Sales - - (216,898) - Gain recognised in the Statement of Comprehensive Income 8,863 - 92,552 - Closing balance 265,897 - 1,070,937 -

Finovia Growth PortfolioPurchases 92,345 - 208,763 - Sales - - (43,795) - Gain recognised in the Statement of Comprehensive Income 3,185 - 16,101 - Closing balance 95,530 - 181,069 -

Total gain for the period included in changes in fair value of investmentsattributable to Level 3 instruments held at year end 21,288 - 176,002 -

The following table shows an analysis of financial instruments held at the balance date, recorded at fair value by level of the fair value

Unlisted equity securities

Unlisted managed investment funds

-22-



(e) Fair Value Measurement (continued)

inputs been available for the valuation of such investments, and the differences could be material.

unobservable inputs used to value investments that fall in this category.

AdjustmentFair Value at Valuation Unobservable applied to prior Sensitivity Effect on

30-Jun-14 technique input traded price used fair value

$'000 +/- $'000

Finovia Balanced Portfolio

Unlisted equity securities 277 TransactionsPrivate transactions\Market approach 15% 10% / (10%) 28

Unlisted managed investment funds 770 TransactionsPrivate transactions\Market approach 5% to 10% 10% / (10%) 77

Finovia Moderate Portfolio



Finovia Growth Portfolio



At 30 June 2014 and 30 June 2013, the Level 3 investments consist of both unlisted managed investment funds and unlisted equity securities.The inputs used in estimating the value of the Level 3 investments include the original transaction price, recent transactions in the same orsimilar instruments, completed or pending third-party transactions in the underlying investment or comparable issuers, subsequent rounds offinancing, recapitalisations and other transactions across the capital structure, offerings in the equity or debt capital markets, and changes infinancial ratios or cashflows. The fair value of the security has been assessed by the Investment Committee of the Responsible Entity whohas determined the best estimate valuation for the securities based on available information. The fair value of financial instruments is theresponsibility of the Investment Manager and is reviewed by the Investment Committee. The Investment Committee meet on a regular basisand consider where a fair value determination is required in order to price a security, which is not readily valued in the market. The InvestmentCommittee considers the valuations and valuation methodologies applied to the relevant securities and reviews all available security-specificand general market information in order to make a fair value determination. Because of the inherent uncertainty of valuation with respect tosuch investments, the Schemes' estimates of fair value may differ significantly from fair values that would have been used had observable

The table below discloses the valuation technique used in the valuation for Level 3 investments and quantifies the effect of significant

-23-


10. Commitments and Contingencies

The Schemes did not have any commitments or contingent liabilities as at 30 June 2014 (30 June 2013: nil).

11. Changes in Accounting Policies

changes in accounting policies and adjustments to the amounts recognised in the financial statements.

Fair value measurement

permitted by other Australian Accounting Standards.

the fair value of derivative liabilities changed on transition to AASB 13, largely due to incorporating credit risk into the valuation.

prices.

12. Events Subsequent to Balance Date

August 2014.

significantly affected or may significantly affect the Schemes.

13. Scheme Information

Directors of Select Asset Management Limited on the 23rd day of September 2014.

of the Responsible Entity is located at Level 10, 2 Bulletin Place, Sydney, NSW 2000.

14. Winding up of Schemes

be within the next 12 months.

The financial report of the Schemes for the year ended 30 June 2014 was authorised for issue in accordance with a resolution of the

Select Asset Management Limited, the Responsible Entity of the Schemes, is incorporated and domiciled in Australia. The registered office

As explained in Note 1(b), the Schemes have adopted a number of new or revised accounting standards this year that have resulted in

AASB 13 Fair Value Measurement aims to improve consistency and reduce complexity by providing a precise definition of fair value and asingle source of fair value measurement and disclosure requirements for use across Australian Accounting Standards. The standard

Select Asset Management Limited was acquired by OneVue Holdings Limited an Australian Securities Exchange listed company on 28

winding up on 15 November 2013. Termination of the Schemes will be finalised once all assets are disposed of which is expected to

does not extend the use of fair value accounting but provides guidance on how it should be applied where its use is already required or

Previously the fair value of financial liabilities (including derivatives) was measured on the basis that the financial liability would be settled or

The Schemes are currently being wound up following the decision of the Responsible Entity to wind up their operations. The Finovia BalancedPortfolio and the Finovia Growth Portfolio commenced winding up on 18 October 2013, while the Finovia Moderate Portfolio commenced

extinguished with the counterparty. The adoption of AASB 13 has clarified that fair value is an exit price notion, and as such, the fair valueof financial liabilities should be determined based on a transfer value to a third party market participant. As a result of this change,

On adoption of the standard, the Schemes have changed its valuation inputs for listed financial assets or liabilities and utilised last traded

Since 30 June 2014, there have been no other matters or circumstances not otherwise dealt with in the Financial Report that have

-24-


Ernst & Young680 George StreetSydney NSW 2000 AustraliaGPO Box 2646 Sydney NSW 2001

Tel: +61 2 9248 5555Fax: +61 2 9248 5959ey.com/au

Independent auditor's report to the unitholders of the Schemes listed inAppendix A

We have audited the accompanying financial report of the Schemes listed in Appendix A (“the Schemes”),which comprises the statements of financial position as at 30 June 2014, the statements ofcomprehensive income, statements of changes in net assets attributable to unitholders and statements ofcash flows for the year then ended, notes comprising a summary of significant accounting policies andother explanatory information, and the directors' declaration.

Directors' responsibility for the financial report

The Directors of the Responsible Entity are responsible for the preparation of the financial report thatgives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act2001 and for such internal controls as the Directors determine are necessary to enable the preparation ofthe financial report that is free from material misstatement, whether due to fraud or error. In Note 1(b),the Directors also state, in accordance with Accounting Standard AASB 101 Presentation of FinancialStatements, that the financial statements comply with International Financial Reporting Standards.

Auditor's responsibility

Our responsibility is to express an opinion on the financial report based on our audit. We conducted ouraudit in accordance with Australian Auditing Standards. Those standards require that we comply withrelevant ethical requirements relating to audit engagements and plan and perform the audit to obtainreasonable assurance about whether the financial report is free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures inthe financial report. The procedures selected depend on the auditor's judgment, including the assessmentof the risks of material misstatement of the financial report, whether due to fraud or error. In makingthose risk assessments, the auditor considers internal controls relevant to the entity's preparation of thefinancial report that gives a true and fair view in order to design audit procedures that are appropriate inthe circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity'sinternal controls. An audit also includes evaluating the appropriateness of accounting policies used andthe reasonableness of accounting estimates made by the Directors, as well as evaluating the overallpresentation of the financial report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion.

Independence

In conducting our audit we have complied with the independence requirements of the Corporations Act2001. We have given to the Directors of the Responsible Entity a written Auditor’s IndependenceDeclaration, a copy of which is included in the directors’ report.


Opinion

In our opinion:

a. the financial report of the Schemes is in accordance with the Corporations Act 2001, including:

i giving a true and fair view of the Schemes’ financial position as at 30 June 2014 and of itsperformance for the year ended on that date; and

ii complying with Australian Accounting Standards (including the Australian AccountingInterpretations) and the Corporations Regulations 2001; and

b. the financial report also complies with International Financial Reporting Standards as disclosed inNote 1(b).

Ernst & Young

Jonathan PyePartnerSydney23 September 2014


Appendix A – List of Schemes Covered by the Audit Opinion

Finovia Balanced PortfolioFinovia Moderate PortfolioFinovia Growth Portfolio

finovia portfolio solutions annual reports for the year ended 30 … · 2014-09-28 · select asset...

Documents