update to pre select funds product disclosure statement...pre select balanced fund $2.50 $12.50 pre...

Update to Pre Select Funds Product Disclosure Statement

Dated: 29 May 2020

Important information This document is prepared by Navigator Australia Limited (ABN 45 006 302 987, AFSL 236466), as responsible entity of the Funds. The responsible entity is a member of the National Australia Bank Limited (ABN 12 004 044 937) (NAB) group of companies. NAB does not guarantee or otherwise accept any liability in respect of the financial products referred to in this document.

This updates the Product Disclosure Statement dated 22 March 2019 (PDS) including the Online Update to the PDS dated 22 May 2020 for:

· Pre Select Conservative Fund ARSN 104 411 583

· Pre Select Balanced Fund ARSN 104 412 446

· Pre Select Growth Fund ARSN 104 410 782

· Pre Select High Growth Fund ARSN 104 411 467 (Funds) issued by Navigator Australia Limited (Responsible Entity).

What is changing?

Update to buy/sell spreads

Buy/sell spreads are incurred when investors apply for or redeem units in the Funds. They reflect the transaction

costs associated with the purchasing and selling of assets within the Funds in order to issue units or pay redemption

proceeds to investors. The application of buy/sell spreads to the Funds ensures fair attribution of costs between

transacting and non-transacting investors. NAL does not profit from these spreads.

Due to increased volatility in global investment markets following the uncertainty driven by COVID-19, there has

been a marked increase in transaction costs across asset classes. The buy/sell spreads for the Funds are likely to

vary from time to time and may increase or decrease significantly.

NAL has reviewed the buy/sell spreads applied for the Funds and the outcome of our review is reflected below.

Effective from 29 May 2020, the buy/sell spreads and dollar examples table on page 23 of the PDS is replaced with

the following:

You incur buy/sell spreads when you buy or sell units in the Fund:

Fund Buy Spread Sell Spread

Pre Select Conservative Fund +0.15% -0.15%

Pre Select Balanced Fund +0.10% -0.15%

Pre Select Growth Fund +0.10% -0.20%

Pre Select High Growth Fund +0.15% -0.15%

This means that for every $5,000 you contribute to or withdraw from a Fund, you will incur costs of:

Fund Contribution amount Withdrawal amount

Pre Select Conservative Fund $7.50 $7.50

Pre Select Balanced Fund $5.00 $7.50

Pre Select Growth Fund $5.00 $10.00

Pre Select High Growth Fund $7.50 $7.50

Further information

For a paper or electronic copy of this update (free of charge), call us from anywhere in Australia on 132 652.


Dated: 22 May 2020


This updates the Product Disclosure Statement dated 22 March 2019 (PDS) including the Online Update to the PDS dated 24 April 2020 for:





What is changing?










Effective from 22 May 2020, the buy/sell spreads and dollar examples table on page 23 of the PDS is replaced with

the following:



Pre Select Conservative Fund +0.15% -0.20%

Pre Select Balanced Fund +0.10% -0.15%

Pre Select Growth Fund +0.10% -0.20%

Pre Select High Growth Fund +0.15% -0.15%







Further information



Dated: 24 April 2020


This updates the Product Disclosure Statement dated 22 March 2019 (PDS) including the Online Update to the PDS dated 9 April 2020 for:





What is changing?










Effective from 24 April 2020, the buy/sell spreads and dollar examples table on page 23 of the PDS is replaced with

the following:



Pre Select Conservative Fund 0.10% 0.30%

Pre Select Balanced Fund 0.05% 0.25%

Pre Select Growth Fund 0.10% 0.20%

Pre Select High Growth Fund 0.15% 0.20%







Further information



Dated: 9 April 2020

Important information This document is prepared by Navigator Australia Limited (ABN 45 006 302 987, AFSL 236466), as responsible entity of the Funds (Responsible Entity). The Responsible Entity is a member of the National Australia Bank Limited (ABN 12 004 044 937) (NAB) group of companies. NAB does not guarantee or otherwise accept any liability in respect of the financial products referred to in this document

This updates the Product Disclosure Statement dated 22 March 2019 (PDS) including the Online Update to the PDS dated 1 October 2019 for:





What is changing?







been a marked increase in transaction costs across asset classes.


Effective from 9 April 2020, the buy/sell spreads and dollar examples table on page 23 of the PDS is replaced with

the following:













Further information


Update to Pre Select Funds Product Disclosure Statement Dated 1 October 2019

Update to Pre Select Funds Product Disclosure Statement | 1

This updates the Product Disclosure Statement (PDS) for:

• Pre Select Conservative Fund ARSN 104 411 583

• Pre Select Balanced Fund ARSN 104 412 446

• Pre Select Growth Fund ARSN 104 410 782

• Pre Select High Growth Fund ARSN 104 411 467

(Funds) issued by Navigator Australia Limited (Responsible Entity).

What is changing?

Update to investment adviser name

Effective from 1 October 2019, the investment adviser (as referenced on pages 4 and 7 of the PDS) changed their legal name as follows:

Existing Name New Name

NAB Asset Management Services Limited ABN 38 055 638 474 AFSL 230687

MLC Asset Management Services Limited ABN 38 055 638 474 AFSL 230687

There is no change to how the Funds are being managed or the investment adviser other than the change in name.

Update to fees and costs

In accordance with the fees and costs disclosure requirements in ASIC Regulatory Guide 97 Disclosing fees and costs in PDSs and

periodic statements (RG 97) including ASIC Class Order [CO 14/1252] (as amended) by ASIC Corporations (Amendment) Instrument

2016/1224 (CO 14/1252) certain fees and cost figures in the PDS for the Funds are updated as follows.

Page 20 – Fees and other costs

The table below replaces the equivalent section on page 20 of the PDS.

Type of fee or cost Amount How and when paid

Fees when your money moves in or out of the managed investment products.

Establishment fee

The fee to open your investment.

Nil There is no Establishment fee.

Contribution fee

The fee on each amount contributed to your investment.

Nil There is no Contribution fee.

Withdrawal fee

The fee on each amount you take out of your investment.

Nil There is no Withdrawal fee.

Exit fee

The fee to close your investment.

Nil There is no Exit fee.


Update to Pre Select Funds Product Disclosure StatementDated 1 October 2019

Management costs1,2

The fees and costs for managing your investment.

Management fee: • Pre Select Conservative Fund: 0.60% pa of the Fund’s net asset value

• Pre Select Balanced Fund: 0.65% pa of the Fund’s net asset value

• Pre Select Growth Fund: 0.70% pa of the Fund’s net asset value

• Pre Select High Growth Fund: 0.85% pa of the Fund’s net asset value

The Management fee is calculated daily on the relevant Fund’s net asset value and reflected in the daily unit price. It is paid from the assets of the relevant Fund and is not required to be paid by you separately.

Wholesale clients (as defined in the Corporations Act 2001 (Cth)) may be able to negotiate this fee by contacting us.

Estimated indirect costs3 • Pre Select Conservative Fund: 0.02% pa of the Fund’s net asset value




This is made up of:

• Estimated performance related costs, and

• Estimated other indirect costs

Indirect costs are costs and expenses incurred by the Fund that are not charged as a Management fee but are expected to reduce the net return of the relevant Fund and are reflected in the daily unit price.

Service fees

Switching fee

The fee for changing Funds.

Not applicable. Not applicable.

1. See ‘Additional explanation of fees and costs’ in this section for further details.

2. Rounded to two decimal places.

3. The estimated indirect costs are based on costs incurred for the 12 months to 30 June 2019, please see ‘Additional explanation of fees and costs’ for further details.

Page 21 – Example of annual fees and costs

The tables below replace the equivalent section on page 21 of the PDS.

Example of annual fees and costs for the Pre Select Balanced Fund

This table gives an example of how the fees and costs for this managed investment product can affect your investment over a 1 year

period. You should use this table to compare this product with other managed investment products.

EXAMPLE:

Pre Select Balanced Fund

Balance of $50,000 with a contribution of $5,000 during the year¹

Contribution Fees 0% For every additional $5,000 you put in, you will be charged $0.

PLUS

Management Costs Management fee Indirect costs Total

0.65%

0.02%

0.67%

And, for every $50,000 you have in the Fund you will be charged:

$325

+ $10

= $335 each year.

EQUALS

Cost of the Fund

If you had an investment of $50,000 at the beginning of the year and you put in an additional $5,000 during that year, you would be charged fees from:

$335

What it costs you will depend on the Fund you choose.

What it costs you will depend on the fees you negotiate with the Fund, your IDPS operator or your financial adviser.

1. This example assumes the $5,000 additional investment occurs at the end of the year.



Example of annual fees and costs for the Pre Select Growth Fund



EXAMPLE: Pre Select Growth Fund



PLUS

Management Costs Management fee Indirect costs Total

0.70%

0.02%

0.72%


$350

+ $10

= $360 each year.

EQUALS

Cost of the Fund


$360



1. This example assumes the $5,000 additional investment occurs at the end of the year.

Page 22 – Additional explanation of fees and costs

The information below replaces the equivalent section on page 22 of the PDS.

Indirect costs

The Funds may also incur costs and expenses that won’t be charged as a Management fee but are expected to reduce the net return

of the Funds. These indirect costs are reflected in the daily unit price and any reporting on the performance of the Funds. Indirect cost

amounts included in this document are based on actual costs incurred for the 12 months to 30 June 2019. Amounts may vary from time to time

and you will not be given advance notice of any changes to these amounts. You should refer to mlc.com.au for updated amounts.

Indirect costs are made up of:

• Performance related costs

Performance related costs are amounts that investment managers may charge when their performance exceeds a specified level.

This is independent of the overall performance of the Funds and therefore the amounts may be payable to the investment

managers even if the Fund itself produces negative performance. Different performance related costs may be charged by different

investment managers and will vary depending upon the investment managers’ performance.

• Other indirect costs

Underlying investment funds will generally charge a management fee and expense recoveries.


Transactional costs

When assets in a Fund or in underlying investments are bought or sold, costs such as brokerage, stamp duty and settlement costs are

incurred. Transactional costs may also be incurred when the market process for purchasing assets causes the price paid to be higher

than the value of the assets immediately after the purchase transaction, for example where bid/ask spreads are incurred. The

estimated transactional costs for the financial year to 30 June 2019 are as follows:

Fund (A)1

Estimated transactional costs as at 30 June 2019

(B)

Estimated transactional costs recovered from buy/sell spread

(C = A – B)

Estimated transactional costs reducing return of the Fund

Pre Select Conservative Fund 0.18% 0.02% 0.16%

Pre Select Balanced Fund 0.18% 0.04% 0.14%

Pre Select Growth Fund 0.17% 0.03% 0.14%

Pre Select High Growth Fund 0.18% 0.02% 0.16%

1. Estimate costs are based on each Fund’s net asset value.

These costs are not included in the management costs and are expected to reduce the net return of the relevant Fund and are

reflected in the daily unit price. No part of the transaction costs are paid to us or any investment managers.



Important information

This document is prepared by Navigator Australia Limited ABN 45 006 302 987, AFSL 236466), as responsible entity of the Funds (Responsible Entity). The Responsible Entity is a member of the National Australia Bank Limited (ABN 12 004 044 937) (NAB) group of companies. NAB does not guarantee or otherwise accept any liability in respect of the financial products referred to in this document.

The information below is to be inserted into page 22 of the PDS after ‘Transactional costs’.

Borrowing costs

Borrowing costs (or gearing costs) may be incurred in a number of circumstances, including (but not limited to) where money is

borrowed to purchase an asset and where securities are borrowed as part of a fund’s investment strategy. Borrowing costs are

generally paid to third parties such as banks, providers of a margin lending facility and prime brokers and may include upfront costs

to establish the arrangement and ongoing costs like interest payments. These costs are not included in the management costs but are

deducted from the assets of the Trust and reduce the unit price at the time they are incurred. Borrowing costs may rise and fall over

time, and will depend on the level of borrowing, the interest amount and other amounts paid to lenders. The estimated borrowing

costs for the previous financial year to 30 June 2019 are shown below:

Fund Borrowing costs pa of the relevant Fund’s net asset value

Pre Select Conservative Fund 0.01%

Pre Select Balanced Fund 0.01%

Pre Select Growth Fund 0.01%

Pre Select High Growth Fund 0.01%


Page 23 - Buy/sell spreads


You incur the buy/sell spread when you buy or sell units in the Fund. The buy/sell spreads from 1 October 2019 are:

Fund Buy amount Sell amount







Pre Select Conservative Fund $25 $25

Pre Select Balanced Fund $25 $25

Pre Select Growth Fund $25 $25

Pre Select High Growth Fund $25 $25

Further information


M153979-0919

Preparation date 3 October 2016

Trustee NULIS Nominees (Australia) Limited ABN 80 008 515 633 AFSL 236465 Issuer of MLC Insurance (Super)

Fund MLC Super Fund ABN 70 732 426 024

Insurer MLC Limited ABN 90 000 000 402 AFSL 230694 Issuer of MLC Insurance

Pre Select fundsProduct Disclosure Statement

Preparation date 22 March 2019

Issued by The Responsible Entity, Navigator Australia Limited ABN 45 006 302 987 AFSL 236466

Fund Pre Select Conservative Fund Pre Select Balanced FundPre Select Growth FundPre Select High Growth Fund

ARSN 104 411 583104 412 446104 410 782104 411 467

Pre Select funds Product Disclosure Statement | 3

Contents

About Navigator Australia Limited 4

Risks of investing 5

How we invest your money 10

Investing in the Funds 12

Fees and other costs 19

Additional information 24

Important information

This PDS provides information about the Pre Select funds listed on the front cover (Funds).

This PDS contains important information you should consider before making an investment decision in relation to the Funds. The information provided in this PDS is general information only and does not take into account your personal financial situation or needs. We recommend you obtain financial advice for your own personal circumstances before making any investment decision.

This PDS is intended only for use by persons investing through an investor directed portfolio service, IDPS-like scheme, master trust or wrap operator (collectively referred to as a ‘Portfolio Service’ in this PDS). In this PDS, references to ‘you’ or ‘investors’ are to persons investing through a Portfolio Service.

The Funds offered under this PDS and the content in this PDS may change from time to time. We’ll directly notify your Portfolio Service of changes that are materially adverse. Changes that aren’t materially adverse will be made available on mlc.com.au or you can obtain a paper copy of the changes on request free of charge. You should check you have the most up to date version before making an investment decision. All amounts in these documents are Australian dollars unless stated otherwise.

Navigator Australia Limited (Navigator), the issuer of this PDS and responsible entity of the Funds, is a fully owned subsidiary within the NAB Group. No company in the NAB Group guarantees the capital value, payment of income or performance of the Funds. An investment in the Funds does not represent a deposit with or liability of the NAB Group and is subject to investment risk, including possible delays in repayment and loss of income and principal invested.

References in this document to ‘we’, ‘our’ or ‘us’ should be read as references to Navigator in its capacity as Responsible Entity.

4 | Pre Select funds Product Disclosure Statement

About Navigator Australia Limited

Navigator is the Responsible Entity for

the Funds.

As the Responsible Entity, we’re

responsible for all aspects of operating

the Pre Select funds (Funds) including

administration of the assets and

investment policy.

Navigator is a member of the NAB Group.

We believe the best way to manage

the Funds is to employ the skills of

multiple specialist investment managers.

We’ve appointed the NAB Group’s retail

multi-asset management business,

NAB Asset Management Services Limited

(NSL) to advise on and manage the Funds’

investments. Our investment experts

have extensive knowledge and experience

at designing and managing funds using

a multi-manager investment approach.

Investing with us

Our Funds have different investment

objectives because we know everyone has

different ideas about how their money

should be managed.

Our Funds make sophisticated

investing straightforward.

Our investment experts use a market-

leading investment approach to

structure our Funds with the aim of

delivering more reliable returns in many

potential market environments.

And, as their assessment of world

markets changes, our Funds are evolved

to manage new risks and capture

new opportunities.

We use specialist investment managers

in our Funds. Our investment experts

research hundreds of investment

managers from around the world and

select the managers they believe are

the best for our Funds. Our investment

managers may be specialist in-house

managers, external managers or a

combination of both.

Importantly, we stay true to the

objectives of our Funds so you can keep

on track to meeting your goals.

Looking out for your interests

In this document we outline how we

manage your money, the benefits and

risks of investing in the Funds and the

fees and costs you’ll be paying.

This will help you decide whether the

investment you’re considering is right

for you.

If you need any further information,

please contact your financial adviser

or contact us.

About the Funds

The Funds operate like most other

managed investment schemes.

Your money is pooled together

with other investors’ money to buy

investments which are managed on

behalf of all investors. The Funds’

investments may be directly in

securities, or through trusts.

When you invest in a managed

investment scheme, such as the Funds,

you gain exposure to investments that

you may not ordinarily have access to,

if you invest on your own.

The Funds are governed by their

Constitutions which are registered

with the Australian Securities and

Investments Commission (ASIC). ASIC

takes no responsibility for this PDS or

the operation of the Funds by Navigator.

Who can invest

If you want to start an investment in the

Funds you can do so through a Portfolio

Service offered by a subsidiary of the

NAB Group.

If you already have an investment in

the Funds you can add or change your

investments, however some restrictions

may apply.


Risks of investing

Before you do any investing, there

are some things you need to consider,

including the level of risk you are

prepared to accept.

Factors that will affect your

decision include:

• your investment goals

• the savings you’ll need to reach

your goals

• your age and how many years you

have to invest

• where other parts of your wealth

are invested

• the return you may expect from your

investments, and

• how comfortable you are with

investment risk.

Investment risk

Even the simplest investment comes

with a level of risk. Different investments

have different levels of risk, depending on

the assets that make up the investment.

While the idea of investment risk can

be confronting, it’s a normal part of

investing. Without it, you may not get

the returns you need to reach your

financial goals. This is known as the

risk/return trade-off.

Many factors influence an investment’s

value. These include, but aren’t limited to:

• market sentiment

• changes in inflation

• growth and contraction in Australian

and overseas economies

• legislative changes

• changes in interest rates

• defaults on loans

• company specific issues

• liquidity (the ability to buy or sell

investments when you want to)

• changes in the value of the

Australian dollar

• investments and withdrawals by

other investors, and

• a counterparty not meeting

its obligations eg when buying

securities, the seller may not deliver

on the contract by failing to provide

the securities.

Volatility

The value of an investment with a

higher level of risk will tend to rise

and fall more often and by greater

amounts than investments with lower

levels of risk. That is, it is more volatile.

Periods of volatility can be unsettling

and may occur regularly. You may

find it reassuring to know that, often

investments that produce higher returns

and growth over long periods tend to be

more volatile in the short term.

By accepting that volatility will occur,

you’ll be better able to manage your

reaction to short-term movements.

This will help you stay true to your long-

term investment strategy.

When considering your investment it’s

important to understand that:

• its value, and returns, will vary

over time

• investments with higher long-term

return potential usually have higher

levels of short-term risk

• returns aren’t guaranteed and you

may lose some of your money

• future returns may differ from

past returns

• laws of overseas jurisdictions can

impact returns on international

investments, and

• laws affecting your investment may

change in future.

Diversify to reduce volatility and other risks

Diversification - investing in a range of

investments - is a sound way to reduce

the short-term volatility of a portfolio’s

returns. That’s because different types

of investments perform well in different

times and circumstances. When some

are providing good returns, others may

not be.

Portfolios can be diversified across

different asset classes, industries,

securities and countries as well as across

investment managers with different

approaches.

The more you diversify, the less impact

any one investment can have on your

overall returns. One of the most effective

ways of reducing volatility is to diversify

across a range of asset classes.

Diversification across asset classes is just one way of managing risk. Our Funds diversify across asset classes and investment managers. Please read more about our investment approach in `Our approach to investing’.

A financial adviser can help you clarify goals and assist with creating a financial plan which helps you manage risk and consider issues such as:

• how many years you have to invest

• the savings you’ll need to reach your goals

• the return you may expect from your investments, and

• how comfortable you are with volatility.


Types of assets

Asset classes are generally grouped as defensive, growth or alternatives based on their different characteristics.

Our Funds are usually invested across all these groups because each has different return and volatility characteristics. For example, defensive assets may help to provide returns in a Fund when share markets are weak. On the other hand, growth assets may be included in a Fund because of their potential to produce higher returns than cash in the long term. However, in some market conditions, all types of assets may move in the same direction, delivering low or negative returns at the same time.

The main differences between these types of assets are:

Defensive Growth Alternatives

Asset classes included

Cash and fixed income securities.

Shares and listed property securities.

A very diverse group of assets and strategies. Some examples include infrastructure and hedge funds. Because alternatives are diverse, they may be defensive or growth assets.

How they are generally used

To generate income and stabilise returns.

To provide long-term capital growth and income.

To provide returns that aren’t strongly linked with those of mainstream assets. They may be included for their income, defensive or growth characteristics.

Risk and return characteristics

Expected to produce lower returns, and be less volatile, than growth assets over the long term.

Expected to produce higher returns, and be more volatile, than defensive assets over the long term.

Expected to produce returns and volatility that aren’t strongly linked to mainstream assets such as shares.

Risk and return characteristics of different alternative investments can vary significantly.

Asset classes

Asset classes are groups of similar types

of investments.

Each class has its risks and benefits, and

goes through its own market cycle.

Risks of investing

A market cycle can take a couple of years

or many years as prices rise, peak, fall

and stabilise. Through investing for

the long term, at least through a whole

market cycle, you can improve your

chance of benefiting from a period of

strong returns and growth to offset

periods of weakness.


The following illustration shows

indicative returns and volatility for the

main asset classes over a whole market

cycle. But each market cycle is different,

so unfortunately it isn’t possible to

accurately predict asset class returns or

their volatility. Depending on the

conditions at the time, actual returns

could be significantly different from

those shown.

Indicative volatility

Lower Higher

Higher

Shares

Fixed incomeInd

icat

ive

retu

rns

Alternatives

Listed property securities

Cash

Alternatives

Alternatives

Alternatives

Indicative returns and volatility over a market cycle

Source: NAB Asset Management Services Limited. Alternatives are shown as having many different risk and return outcomes because they are a very diverse group of assets and strategies.

Here are the main asset class risks

and benefits.

Cash

Cash is generally a low risk investment.

Things to consider:

• Cash is often included in a portfolio

to meet liquidity needs and to

stabilise returns.

• The return is typically all income and

is referred to as interest or yield.

• Cash is usually the least volatile type

of investment. It also tends to have

the lowest return over a market cycle.

• The market value tends not to change.

However, when you invest in cash,

you’re effectively lending money to

businesses or governments that could

default on the loans, resulting in a loss

on your investment.

• Many cash funds invest in fixed

income securities that have a very

short term until maturity.

Fixed income (including term deposits)

When investing in fixed income, you’re

effectively lending money to businesses

or governments. Bonds are a common

form of fixed income security.

Things to consider:

• Fixed income securities are usually

included in a portfolio for their

relatively stable return characteristics.

• Returns typically comprise interest

and changes in the market value

of the fixed income security. Fixed

income securities’ values tend to move

in opposite directions to interest

rates. So when interest rates rise, fixed

income securities’ values tend to fall

and when interest rates fall, values can

rise. Short-term fixed are generally

less sensitive to interest rate changes

than longer-term securities.

• While income from fixed income

securities usually stabilises returns,

falls in their market value may result

in a loss on your investment. Market

values may fall due to concern about

defaults on loans or an increase in

interest rates. When interest rates are

low, the risk of rates rising and market

values falling is greatest.

• There are different types of fixed

income securities and these will have

different returns and volatility.

• Investing in fixed income securities

outside Australia may expose

your portfolio to movements in

exchange rates.


Property securities are listed on share

markets in Australia and around the

world. Listed property securities are also

referred to as Real Estate Investment

Trusts (REITs).

Things to consider:

• Listed property securities are usually

included in a portfolio for their income

and growth characteristics.

• Returns typically comprise income

(such as distributions from REITs) and

changes in REIT values.

• Returns are driven by many factors

including the economic environment

in various countries.

• The global REIT market is far more

diversified than the Australian REIT

market.

• Listed property securities’ returns can

be volatile.

• Investing outside Australia may

expose your portfolio to movements

in exchange rates.


Australian shares

This asset class consists of investments

in companies listed on the Australian

Securities Exchange (and other regulated

exchanges). Shares are also known

as equities.

Things to consider:

• Australian shares can be volatile

and are usually included in a

portfolio for their growth and

income characteristics.

• The Australian share market is less

diversified than the global market

because Australia is currently

dominated by a few industries such as

Financials and Resources.

• Returns usually comprise dividend

income and changes in share prices.

• Dividends may have the benefit of tax

credits attached to them (known as

franking or imputation credits).


including the performance of the

Australian economy.

Global shares

Global shares consist of investments in

companies listed on securities exchanges

around the world.

Things to consider:

• Global shares can be volatile and are

usually included in a portfolio for their

growth characteristics.

• The number of potential investments is

far greater than in Australian shares.

• Returns usually comprise dividend

income and changes in share prices.


including the economic environment

in various countries.

• When you invest globally, you’re less

exposed to the risks associated with

investing in just one economy.

• Investing outside Australia means

you’re exposed to movements in

exchange rates.

Alternatives

These are a very diverse group of

assets. Some examples include hedge

funds, real return strategies, gold,

listed infrastructure securities and

unlisted infrastructure.

Things to consider:

• Because alternatives are diverse, they

may be included in a portfolio for their

defensive or growth characteristics.

• Alternative investments are usually

included in portfolios to increase

diversification and provide returns

that aren’t strongly linked with the

performance of mainstream assets.

• Investment managers include

alternative investments in a portfolio

because they generally expect the

return and diversification benefits of

alternative investments to outweigh

the higher costs often associated

with them.

• Some alternative strategies are

managed to deliver a targeted

outcome. For example, real return

strategies aim to produce returns

exceeding increases in the costs of

living (ie inflation).

• For some alternatives, such as hedge

funds, derivatives may be used

extensively and it can be less obvious

which assets you’re investing in

compared to other asset classes.

• Some alternative investments are

illiquid, which makes them difficult to

buy or sell.

• To access alternative investments

you generally need to invest in a

managed fund that, in turn, invests

in alternatives.

• Because most alternative investments

aren’t listed on an exchange,

determining their value for a fund’s

unit price can be difficult and may

involve a considerable time lag.

• Alternatives invested outside

Australia may expose your portfolio

to movements in exchange rates.

Investment approaches

Investment managers have different

approaches to selecting investments,

which invariably results in different

returns. No single investment approach

is guaranteed to outperform all others

in all market conditions.

There are generally two broad

approaches: passive and active

management.

Passive management

Passive, or index managers, choose

investments to form a portfolio which

will deliver a return that closely tracks

a market benchmark (or index). Passive

managers tend to have lower costs

because they don’t require extensive

resources to select investments.

Risks of investing


Active management

Active managers select investments they

believe, based on research, will perform

better than a market benchmark over the

long term.

They buy or sell investments when their

market outlook alters or investment

insights change.

The degree of active management

affects returns. Less active managers

take small positions away from the

market benchmark and more active

managers take larger positions. Generally,

the larger an investment manager’s

positions, the more their returns will

differ from the benchmark.

Active managers have different

investment styles that also affect their

returns. Some common investment

styles are:

• Bottom-up – focuses on forecasting

returns for individual companies,

rather than the market as a whole.

• Top-down – focuses on forecasting

broad macroeconomic trends and

their effect on the market, rather than

returns for individual companies.

• Growth – focuses on companies they

expect will have strong earnings growth.

• Value – focuses on companies they

believe are undervalued (their price

doesn’t reflect earning potential).

• Income – focuses on generating

a regular income stream through

selecting companies, trusts and other

securities they believe will deliver

income, or through using derivatives

and other strategies.

• Core – aims to produce competitive

returns in all periods.

Ethical investing

Investment managers may take

into account labour standards,

environmental, social or ethical

considerations when making decisions

to buy or sell investments.

We expect our active investment

managers to consider material effects

these factors may have on the returns

from their investments; however, we

don’t require them to. We don’t expect

our passive investment managers to

consider these factors.

Investment techniques

Our investment experts and

investment managers may use different

investment techniques that can change

the value of an investment. Some of the

main investment techniques used in the

Funds are explained below.

Derivatives

Derivatives may be used in any of

the Funds.

Derivatives are contracts that have a

value derived from another source such

as an asset, market index or interest

rate. There are many types of derivatives

including swaps, options and futures.

They are a common tool used to manage

risk or improve returns.

Some derivatives allow investment

managers to earn large returns from

small movements in the underlying

asset’s price. However, they can lose large

amounts if the price movement in the

underlying asset is unfavourable.

Risks particular to derivatives include

the risk that the value of a derivative may

not move in line with the underlying

asset, the risk that counterparties to

the derivative may not be able to meet

payment obligations and the risk that

a particular derivative may be difficult

or costly to trade.

Investment managers, including

Navigator, have derivatives policies

which outline how derivatives are

managed. Information on our Derivative

Policy is available on request.

Currency management

If an investment manager invests in

assets in other countries, its returns in

Australian dollars will be affected by

movements in exchange rates (as well as

changes in the value of the assets).

A manager of international assets may

choose to protect Australian investors

against movements in foreign currency.

This is known as ‘hedging’. Alternatively,

the manager may choose to keep the

assets exposed to foreign currency

movements, or ‘unhedged’.

Returns from exposure to foreign

currency can increase diversification

in a fund.


How we invest your money

Our approach to investing

For over 30 years, our investment

experts have been designing portfolios

using a multi-manager approach, to help

investors achieve their goals.

The four key aspects of this market-

leading investment approach are:

1 Portfolio design

Our multi-asset Funds focus on what

affects investor outcomes the most –

asset allocation.

Each asset class has its own risk and

return characteristics. We allocate money

between asset classes based on the

following beliefs:

• Risks can’t be avoided, but can

be managed

Key to the investment approach is a

unique Investment Futures Framework

(Framework). The Framework guides

our forward-looking approach to

managing risk.

In an unpredictable and constantly

changing world, the Framework helps

continually identify the very wide range

of potential market scenarios – both

good and bad – that could occur.

The Framework also helps our

investment experts analyse how these

scenarios could affect the risks and

returns of the asset classes in the Funds.

The insights from this analysis are used

to work out the combination of asset

classes that they believe will best achieve

a Fund’s objective.

This helps us prepare our Funds for

future market ups and downs.

• Risks and returns vary through time

The Framework shows how the potential

risks and returns of each asset class

could change over the next three to

seven years.

With this information we can adjust our

Funds’ asset allocations to reduce the risk

or improve their return potential.

• Diversification matters

Asset classes perform differently in

different market conditions.

Investing in many asset classes helps

smooth out the Funds’ overall returns,

as asset class ups and downs can offset

one another.

2 Managing the portfolio

Our Funds have different investment

objectives. That’s why our investment

experts select a different mix of assets

and investment managers for each.

The investment managers may be

specialist in-house managers, external

managers or a combination of both.

Our investment experts research

hundreds of investment managers

from around the world and select the

managers they believe are the best for

our Funds.

They are then combined in the Funds

so they complement each other.

This multi-manager approach helps

to reduce risk and deliver more

consistent returns.

You can find out about our current

investment managers at mlc.com.au.


3 Ongoing review

To make sure our Funds are working

hard for investors, we continuously

review and manage them.

This includes adjusting the asset

allocation, investment strategies

and managers.

This may be because our investment

experts’ assessment of the future market

environment has altered or because we

have found new ways to balance risk and

return in our Funds.

4 Portfolio implementation

We deliver better returns by avoiding

unnecessary costs. Our investment

experts do this by carefully managing

cash flows, tax and changes in

our Funds.


Pre Select Conservative Fund ARSN 104 411 583

Investment objective To provide medium-term returns higher than those generally associated with cash and fixed income securities, while providing lower volatility in short-term investment returns than funds with a greater proportion of growth assets.

How the Fund is managed Investment markets are the main driver of the Fund’s investment returns. The Fund’s allocation to investment markets is shown in its target asset allocation and ranges below. The asset allocation has a strong bias to defensive assets and some exposure to growth assets.

Our investment experts actively manage the Fund’s exposure to the risks of investing in markets. Our investment experts do this by:

• Researching and selecting a broad range of mainstream asset classes, and including some exposure to alternative assets and strategies.

• Adjusting the allocations to the asset classes within the defined ranges shown below.

• Researching hundreds of investment managers from around the world and selecting the managers they believe are the best for the Fund. These investment managers, who are mainly active managers, choose many companies and securities in Australia and overseas for investment.

The Fund invests using all aspects of our approach to investing, outlined on page 10.

The Fund may be suited to you if ...

• you want to invest with a bias to defensive assets, with some exposure to growth assets, and

• you are seeking stable returns.

Minimum suggested time to invest

3 years

Target asset allocation and ranges

The Fund will be managed

within these ranges.

The asset allocation will

change over time. The most up

to date information is available

at mlc.com.au on our Fund

Profile Tool for MLC Wrap

and Navigator

68%

Defensive assets

32%

Growth assets

Asset class Target asset allocation (%)

Ranges (%)

Cash 15.5% 0%–30%

Fixed income 45.5% 30%–75%

Defensive alternatives and other

7% 0%–15%

Total defensive assets 68% 58%–78%

Australian shares 15% 0%–25%

Global shares 7% 0%–25%


7% 0%–15%

Growth alternatives and other

3% 0%–15%

Total growth assets 32% 22%–42%

In addition, most global assets are hedged to the Australian dollar. For benchmark currency hedging levels for global assets please refer to our Fund Profile Tool for MLC Wrap and Navigator at mlc.com.au

Estimated number of negative annual returns

Between 2 and 3 years in 20 years

Investing in the Funds


Pre Select Balanced Fund ARSN 104 412 446

Investment objective To provide medium to long-term returns that are generally higher than those achievable by investing in conservative strategies.

How the Fund is managed Investment markets are the main driver of the Fund’s investment returns. The Fund’s allocation to investment markets is shown in its target asset allocation and ranges below. The asset allocation has an approximately equal exposure to growth and defensive assets.







• you want to invest in an approximately equal mix of defensive and growth assets, and

• you want a portfolio with some long-term capital growth potential and can tolerate moderate to large changes in value.


5 years









and Navigator

52%

Defensive assets

48%

Growth assets


Ranges (%)

Cash 8% 0%–20%

Fixed income 39% 20%–60%


5% 0%–15%





3% 0%–15%


5% 0%–15%






Pre Select Growth Fund ARSN 104 410 782

Investment objective To produce higher returns than those expected from conservative and balanced strategies over the long term.

How the Fund is managed Investment markets are the main driver of the Fund’s investment returns. The Fund’s allocation to investment markets is shown in its target asset allocation and ranges below. The asset allocation has a strong bias to growth assets and some exposure to defensive assets.







• you want to invest with a bias to growth assets, and

• you want a portfolio with a bias to long-term capital growth potential and can tolerate moderate to large changes in value.


6 years









and Navigator.

32%

Defensiveassets

68%

Growth assets


Ranges (%)

Cash 6% 0%–20%



2% 0%–15%





4% 0%–15%


8% 0%–15%






Pre Select High Growth Fund ARSN 104 411 467

Investment objective To provide higher returns than those expected from conservative, balanced and growth strategies over the long term.

How the Fund is managed Investment markets are the main driver of the Fund’s investment returns. The Fund’s allocation to investment markets is shown in its target asset allocation and ranges below. The asset allocation invests predominately in growth assets with a small exposure to defensive assets.







• you want to invest with a strong bias to growth assets, and

• you want a portfolio with a strong bias to long-term capital growth potential and can tolerate large changes in value.


7 years









and Navigator.

19%

Defensive assets

81%

Growth assets


Ranges (%)

Cash 5% 0%–15%



1% 0%–15%





4% 0%–15%


9% 0%–15%


In addition, some global assets are not hedged to the Australian dollar. For benchmark currency hedging levels for global assets please refer to our Fund Profile Tool for MLC Wrap and Navigator at mlc.com.au





How to invest

Investment in the Funds is only available

through a Portfolio Service that we

offer via a subsidiary of the NAB Group.

We refer to people who invest through

a Portfolio Service as indirect investors.

As an indirect investor you may use the

information in this PDS to direct the

Portfolio Service to acquire units in a

Fund on your behalf. To access any of

the Funds, you will need to complete

the application form for the relevant

Portfolio Service.

To make an additional investment or

withdrawal from a Fund you will have

to direct the Portfolio Service to do

so. We will provide confirmation of

transactions, transaction statements,

tax statements and financial reports

to the Portfolio Service.

You should also refer to the relevant

Portfolio Service offer document for your

rights and entitlements, including any

relevant ‘cooling off’ provisions. This is

available from your financial adviser.

Eligibility

This offer to invest in the Funds is made

in Australia in line with Australian laws

and will be regulated by these laws.

As at the date of the PDS, the Funds are

sold predominately through a public

offering outside of the US, which means

the Funds are limited in the amount

of investment it will accept from ‘US

persons’ (as defined under Regulation S

of the US Securities Act of 1933).

Investor information relating to US

citizens, residents for US tax purposes,

or other foreign residents for tax

purposes, may be reported to the

relevant tax authorities.

Applications and withdrawals

We have the discretion to accept or refuse

any new or additional application for

units in the Funds without explanation.

Applications received by us from your

Portfolio Service before 12:00pm

(Melbourne time) on any Business Day

will receive that day’s unit price.

Applications received after 12:00pm will

receive the next Business Day’s unit price.

You should check with your Portfolio

Service to determine when applications

and redemptions will be made by them

to us on your behalf. Please be aware that

there may be a delay between when you

instruct your Portfolio Service to acquire

units and when units are allocated to

your Portfolio Service operator.

Application money received will be held

in trust until processed. We will not

process applications unless we have

received all required information from

your Portfolio Service. If we’re unable to

process an application within 30 days of

receipt we will return the money to your

Portfolio Service. Any interest earned

during this time will be kept by us.

Withdrawal requests received by the

Funds from your Portfolio Service

before 12:00pm (Melbourne time) on

any Business Day will normally receive

that day’s unit price. Requests received

after 12:00pm will normally receive the

next Business Day’s unit price. Once

lodged, withdrawal requests may not

be withdrawn except with our consent.

Who can invest?

Superannuation funds, companies,

partnerships, trusts and individual

investors may invest through a

Portfolio Service.

Investor rights

As an indirect investor in any of the

Funds, you are not a unit holder in

that Fund. Instead, the operator of the

Portfolio Service is the unit holder in the

Fund. Accordingly, you do not acquire the

rights of a unit holder of the Funds, or

any direct interest in each of the Funds.

For example:

• you will not receive reports directly

from the Funds, but you will get

updates from your Portfolio Service

• income distributions from each

Fund are paid to the Portfolio

Service operator or administrator

and allocated to your account, in

accordance with the relevant Portfolio

Service offer document

• you do not vote at unit holder

meetings of the Funds

• there will be a time lag from when you

request an investment or redemption

to when it is processed

• information is not directly available

from the Funds however you can

contact your Portfolio Service with

your requests, and

• any complaints you have should be

directed to your Portfolio Service.


Withdrawal requests will be actioned

by us promptly and we generally seek

to make payments within 4 Business

Days to your Portfolio Service. Payment

may be delayed, for example, if

underlying assets need to be sold. In

certain circumstances, such as when

there are adverse market conditions,

we may suspend withdrawals. In certain

circumstances, we may also process

requests in instalments over a period

of time.

In circumstances where withdrawals

are delayed, suspended or being paid in

instalments, the unit prices used for a

withdrawal will be those available on the

day the withdrawal takes effect, rather

than the day of the withdrawal request.

We may deduct from a withdrawal

payment any amount owed under the

Constitution.

The timing for the processing and pricing

of application and withdrawal requests

will also be subject to the rules of your

Portfolio Service. Please refer to the

relevant Portfolio Service offer document

for further information.

Income distributions

Our current practice is to generally

distribute the net taxable income of the

Funds to investors for each financial year

(including net capital gains and any net

gains on currency management).

As the Funds are Attribution Managed

Investment Trusts (AMITs), we have the

discretion to accumulate income (instead

of distributing all of the income) and if

we do so, the accumulated income will

be reflected in the unit price. We intend

to continue our current practice to

distribute all of the income (including

Australian taxation information

The Funds themselves should not be

liable for tax on their net earnings.

Managed investment schemes do not

pay tax on behalf of investors. Rather

investors should include their proportion

of the Funds’ net earnings as income

in their tax returns. Any net losses are

retained by the Funds and used to offset

future matching gains.

The unit price of units issued before

a distribution will include income

accumulated in the Funds. The income

that has been accumulating will generally

be distributed. You may potentially have

taxation liabilities on that income.

Depending on an investor’s

circumstances, a revenue or capital gain

or loss may arise when units in the Funds

are sold, switched or redeemed.

The AMIT regime

A specific regime for the taxation of

managed investment schemes (AMIT

regime) was introduced on 5 May 2016.

The AMIT regime is designed to provide

greater flexibility for managed funds

and fairness for their investors. We

elected for the AMIT regime apply for the

Funds for the 2017/2018 financial year

and onwards.

Under the AMIT regime, investors are

taxed on income that is attributed to

them on a “fair and reasonable” basis for

each financial year.

Under the AMIT regime it’s not necessary

for a Fund to distribute all its income

(including capital gains) in order to

ensure that the Fund doesn’t pay tax.

Instead we have the discretion to

any capital gains) for each year.

We will notify you if this changes.

Each Fund may distribute income

quarterly within 60 days of the end of

the quarter based on the unit holder’s

holding. There may be periods in which

no distributions are made or the Funds

may make additional distributions.

Distributions will be expressed as

cents per unit. Distributions will be

paid to your account by your Portfolio

Service in accordance with the relevant

Portfolio Service offer document and

any instructions you provide to the

Portfolio Service. Your reporting rights

and entitlements will be outlined in the

relevant Portfolio Service offer document.

Distributions, determined in accordance

with the Funds’ Constitutions, are

generally calculated based on the Funds’

net income at the end of the distribution

period divided by the number of units

on issue.

Please contact your Portfolio Service

for details of how to receive any income

distributions from the Funds.

How managed investment schemes are taxed

Investing in a managed investment

scheme is likely to have tax consequences.

Because this PDS is not a tax guide and

tax laws are complex and change from

time to time, we strongly recommend

that you obtain professional tax

advice in relation to your own personal

circumstances. This applies whether

you are an Australian resident or a non-

resident for tax purposes.


accumulate income in the Fund and

it would be reflected in the unit price.

Taxable income is attributed to investors,

even if a Fund doesn’t distribute

its income.

However, we intend to continue our

current practice of distributing all of a

Fund’s income (including any capital

gains) to our investors each financial

year. We will notify you if this changes.

The details of the taxable income

attributed to you will be set out in

an AMIT Member Annual Statement

(AMMA Statement), which will contain

all necessary tax information. The tax

payable (if any) depends on your

individual tax profile and applicable

tax rate.

If you disagree with our attribution of

taxable income, you can object to the

Commissioner of Taxation. If you decide

to take this course, it is important that

you obtain professional tax and legal

advice. The Constitution provides for

you to give us notice before making an

objection, so please do so and we will

work with you to try to resolve the issue.

Multiple classes of units

All of the Funds have multiple unit

classes. Only one class of units in each

of the Funds (Pre Select class) is offered

under this PDS. Other classes of units with

different fee structures may be offered

under other disclosure documents.

Unit pricing

The overall value of your investment in

the Funds will change according to the

unit price and the number of units held.

The unit price will reflect the

performance of the underlying assets,

income earned, fees, expenses and taxes

paid and payable. The performance of

the underlying assets is influenced by

movements in investment markets.

We usually calculate the unit price as at

the end of each Business Day and use

robust unit pricing policies to do this.

Our unit pricing philosophy is available

at mlc.com.au. For more details on our

policies relating to unit pricing please

contact us.

If there is a unit pricing error that

substantially impacts the Funds’

performance, an adjustment may

be made. This will generally involve

reprocessing affected transactions

using the corrected unit price and/or

by adjusting your account. The value

of your investment could be increased

or decreased as a result.

Business Days are generally days on

which banks are open for business in

Melbourne (except Saturday, Sunday

and public or bank holidays or such other

days as we determine from time to time).

We have the discretion to declare any

day to be a Business Day.

Unitholders’ liability

The Funds’ underlying assets are owned

by the Responsible Entity on behalf of

direct investors. The Funds’ constitutions

limit unitholders’ liability to their

investment in the Funds.

Cooling off

You should refer to your Portfolio

Service offer document in relation

to any cooling off rights that may

apply to your investment in the Funds.

The right to ‘cool off’ does not apply

to direct investments in these Funds.



The fees and costs outlined in this PDS are for these Funds only.

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

the Funds.

As the Funds are only available for investment via a Portfolio Service, you will need to consider the fees and other costs of the

Portfolio Service when calculating the total cost of your investment.

If you consult a financial adviser you may also pay an additional fee that will be set out in the Statement of Advice between you

and your financial adviser.

This section shows fees and other costs that you may be charged in relation to the Funds. These fees and costs may be deducted from

your money, from the returns on your investment or from the assets of the relevant managed investment scheme as a whole.

The information in this table can be used to compare fees and costs between different managed investment schemes.

All fees are shown inclusive of GST and net of Reduced Input Tax Credits (where applicable).

Fees and other costs

DID YOU KNOW?

Small differences in both investment performance and fees and costs can have a substantial impact on your long term returns.

For example, total annual fees and costs of 2% of your account balance rather than 1% could reduce your final return by up to 20% over a 30 year period (for example, reduce it from $100,000 to $80,000).

You should consider whether features such as superior investment performance or the provision of better member services justify higher fees and costs.

You may be able to negotiate to pay lower contribution fees and management costs where applicable. Ask the Fund or your financial adviser.

TO FIND OUT MORE

If you would like to find out more, or see the impact of the fees based on your own circumstances, the Australian Securities and Investments Commission (ASIC) website www.moneysmart.gov.au has a managed funds fee calculator to help you check out different fee options.


Type of fee or cost Amount How and when paid

Fees when your money moves in or out of the managed investment products.

Establishment fee The fee to open your investment.

Nil There is no Establishment fee.

Contribution fee The fee on each amount contributed to your investment.

Nil There is no Contribution fee.

Withdrawal fee The fee on each amount you take out of your investment.

Nil There is no Withdrawal fee.

Exit fee The fee to close your investment.

Nil There is no Exit fee.

Management costs1,2

The fees and costs for managing your investment.

Management fee: • Pre Select Conservative Fund: 0.60% pa of the Fund’s net asset value




The Management fee is calculated daily on the relevant Fund’s net asset value and reflected in the daily unit price. It is paid from the assets of the relevant Fund and is not required to be paid by you separately.

Wholesale clients (as defined in the Corporations Act 2001 (Cth)) may be able to negotiate this fee by contacting us.

Estimated indirect costs3 • Pre Select Conservative Fund: 0.00% pa of the Fund’s net asset value




This is made up of:

• Estimated performance related costs, and

• Estimated other indirect costs

Indirect costs are costs and expenses incurred by the Fund that are not charged as a Management fee but are expected to reduce the net return of the relevant Fund and are reflected in the daily unit price.

Service fees

Switching fee The fee for changing Funds.

Not applicable. Not applicable.

1 See ‘Additional explanation of fees and costs’ in this section for further details.2 Rounded to two decimal places. 3 The estimated indirect costs are based on costs incurred for the 12 months to 30 June 2018, please see ‘Additional explanation of fees and costs’

for further details.



Example of annual fees and costs for the Pre Select Balanced Fund



EXAMPLE: Pre Select Balanced Fund



PLUS

Management CostsManagement fee Indirect costs Total

0.65% 0.00% 0.65%


$325 + $0 = $325 each year.

EQUALS Cost of the Fund


$325



1 This example assumes the $5,000 additional investment occurs at the end of the year.

Example of annual fees and costs for the Pre Select Growth Fund



EXAMPLE: Pre Select Growth Fund



PLUS Management Costs

Management fee Indirect costs Total

0.70%

0.00%

0.70%


$350 + $0 = $350 each year.

EQUALS Cost of the Fund


$350



1 This example assumes the $5,000 additional investment occurs at the end of the year.


Additional explanation of fees and costs

Management costs

The management costs are fees and

costs for investing the Funds’ assets.

The management costs include the

Management fee and do not include

buy/sell spreads or transaction costs.

Management costs are made up of the

Management fee and indirect costs

described below.

Management fee

The Management fee includes fees

charged by the Responsible Entity, fees

paid to investment managers appointed

directly by us and other expenses

incurred in operating the Funds, such

as custody costs, registry costs, auditing

fees and tax return fees.

Indirect costs

The Funds may also incur costs and

expenses that won’t be charged as a

Management fee but are expected to

reduce the net return of the Funds.

These indirect costs are reflected in the

daily unit price and any reporting on the

performance of the Funds.

Indirect cost amounts included in this

document are based on actual costs

incurred for the 12 months to 30 June

2018. We expect the estimated indirect

costs for the Funds for the 12 months to

30 June 2019 and onward to be 0.01% pa.

Amounts may vary from time to time

and you will not be given advance notice

of any changes to these amounts. You

should refer to mlc.com.au for updated

amounts.

Fund (A)1

Estimated transaction costs as at 30 June 2018

(B)

Estimated transaction costs recovered from buy/sell spread

(C = A – B)

Estimated transaction costs reducing return of the Fund

Pre Select Conservative Fund

0.10% 0.03% 0.07%

Pre Select Balanced Fund

0.13% 0.04% 0.09%

Pre Select Growth Fund

0.16% 0.03% 0.13%

Pre Select High Growth Fund

0.18% 0.04% 0.14%

1 Estimate costs are based on each Fund’s net asset value.

These costs are not included in the management costs and are an additional cost to you.

No part of the transaction costs are paid to us or any investment managers.


Indirect costs are made up of:

• Performance related costs

Performance related costs are amounts that investment managers may charge

when their performance exceeds a specified level. This is independent of the

overall performance of the Funds and therefore the amounts may be payable to

the investment managers even if the Fund itself produces negative performance.

Different performance related costs may be charged by different investment

managers and will vary depending upon the investment managers’ performance.

• Other indirect costs

Underlying investment funds will generally charge a management fee and

expense recoveries.

Transaction costs

When assets in a Fund or in underlying investments are bought or sold, costs such as

brokerage, stamp duty and settlement costs are incurred. Costs may also be incurred

when the market process for purchasing assets causes the price paid to be higher than

the value of the assets immediately after the purchase transaction, for example where

bid/ask spreads are incurred. The estimated transaction costs for the financial year to

30 June 2018 are as follows:


Buy/sell spreads

You incur the buy/sell spread when you buy or sell units in the Fund. The current

buy/sell spreads are:

Fund Buy amount Sell amount





This means that for every $5,000 you contribute to or withdraw from a Fund, you will

incur costs of:

Fund Contribution amount

Withdrawal amount

Pre Select Conservative Fund $25 $50

Pre Select Balanced Fund $50 $50

Pre Select Growth Fund $50 $50

Pre Select High Growth Fund $50 $50

Reimbursable expenses

We are entitled to be reimbursed from

the Funds for all costs and expenses

incurred in acting as Responsible Entity

or in relation to the administration and

management of the relevant Funds.

The expenses may include, but are

not limited to, PDS preparation and

printing costs.

We currently pay these costs and

expenses out of the Management fee

and do not charge them to you as an

additional cost.

Switching charges

There is no charge for switching.

However, you may incur other expenses

applicable to each transaction such as

buy/sell spreads.

Financial adviser remuneration

Your financial adviser does not receive

payments (remuneration) from us in

respect of the issue of units in the Funds

offered under this PDS.

Non-monetary benefits

We keep a register detailing certain

non-monetary benefits that we receive

(e.g. benefits valued between $100 and

$300, genuine education or training

and information technology software or

support). You can review an extract of

the register by contacting your Portfolio

Service. Please be aware that we may

charge you for the cost of providing this

information to you.

Changes to fees and costs

We may vary fees or introduce new

fees up to the maximums described in

the Funds’ Constitutions, without

your consent.

Under the constitution the maximum

fee payable to the Responsible Entity is:

• a Management fee of 3% pa of the net

asset value of the relevant class of

units of the Fund

• a contribution/entry fee of 5% of

the application money (currently

not charged)

• an withdrawal fee of 5% of the net

asset value per unit in the Fund in

respect of each withdrawn unit in the

Fund (currently not charged), and

• an exit fee of 5% of the redemption

proceeds (currently not charged).

We are entitled to recover expenses

directly from the Funds. Currently

we pay them out of the Management

fee. If this changes we will notify your

Portfolio Service.

We will give your Portfolio Service

30 days’ notice of any increases in fees.

No prior notice will be given in respect

of changes to transaction costs or

buy/sell spreads. For updated details

go to mlc.com.au

Fees paid to NAB Group companies

We may use the services of NAB Group

companies where it makes good business

sense to do so and will benefit our

unitholders.

Examples of such service providers

include lenders, custody and registry

operators and investment managers.

Amounts paid for these services are

always negotiated on an arm’s length

basis and are included in the fees

detailed in this PDS.


Changes to the Funds

We may make changes to the Funds

(and the information in this PDS) at our

discretion including, but not limited to,

terminating the Funds. Some changes

may be made without prior notice,

including but not limited to closing

the Funds to new applications, and

changes to the investment strategy,

asset allocation, investment managers

and service providers.

Where possible we will give your Portfolio

Service 30 days’ advance written notice

of any materially adverse change. You

can contact your Portfolio Service to

obtain copies of these notices. Changes

that are not materially adverse will be

made available at mlc.com.au

You should check the website for the

latest information or you can obtain a

paper copy of any updated information

free of charge on request.

Resolving complaints

Your Portfolio Service offer

document contains details of the

complaints procedure.

Additional Information

Keeping you informed

mlc.com.au Provides you access to information about your account and investments. Also gives you resources to help build your knowledge on super, retirement and investing.

Reporting All relevant reports such as confirmation of transaction reports (daily), distribution statements (quarterly), tax statements, financial statements and financial report (annually) are provided to your Portfolio Service.

Constitution This information is available on request, free of charge.

Performance history

Unit Pricing Policy (including discretions register)

Derivatives Policy

Privacy Policy

Product Disclosure Statement updates

You can obtain a paper copy of the PDS on request free of charge by contacting us or by visiting the website mlc.com.au. The PDS can be updated or replaced from time to time.


Your notes

A148397-0119

For more information call MLC from anywhere in Australia on 132 652 or contact your financial adviser.

Postal address

Navigator Australia Limited

PO BOX 2567

Melbourne VIC 3001

Registered office

Ground Floor, MLC Building

105–153 Miller Street

North Sydney NSW 2060

mlc.com.au

update to pre select funds product disclosure statement...pre select balanced fund $2.50 $12.50 pre...

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