CBG Australian Equities Fund

CBG Australian Equities FundProduct Disclosure StatementARSN 107 322 789APIR FSP0001AUIssue Date 29 March 2019

About this PDSThis Product Disclosure Statement (“PDS”) has been prepared and issued by EquityTrustees Limited (“Equity Trustees”, “we” or “Responsible Entity”) and is a summary ofthe significant information relating to an investment in the CBG Australian Equities Fund(the “Fund”). It contains a number of references to important information (including aglossary of terms) contained in the CBG Australian Equities Fund Reference Guide(“Reference Guide”), which forms part of this PDS. You should carefully read and considerboth the information in this PDS, and the information in the Reference Guide, beforemaking a decision about investing in the Fund.

The information provided in this PDS is general information only and does not takeaccount of your personal objectives, financial situation or needs. You should obtainfinancial and taxation advice tailored to your personal circumstances and considerwhether investing in the Fund is appropriate for you in light of those circumstances.

The offer to which this PDS relates is only available to investors in an IDPS and otherWholesale Clients (as defined in the CBG Australian Equities Fund Reference Guide)receiving this PDS (electronically or otherwise) in Australia.

This PDS does not constitute a direct or indirect offer of securities in the US or to any USPerson as defined in Regulation S under the Securities Act of 1933 as amended (“USSecurities Act”). Equity Trustees may vary this position and offers may be accepted on meritat Equity Trustees’ discretion. The units in the Fund have not been, and will not be,registered under the US Securities Act unless otherwise approved by Equity Trustees andmay not be offered or sold in the US to, or for, the account of any US Person (as defined inthe Reference Guide) except in a transaction that is exempt from the registrationrequirements of the US Securities Act and applicable US state securities laws.

Contents1. About Equity Trustees Limited

2. How the CBG AustralianEquities Fund works

3. Benefits of investing in the CBGAustralian Equities Fund

4. Risks of managed investmentschemes

5. How we invest your money

6. Fees and costs

7. How managed investmentschemes are taxed

8. How to apply

9. Other information

The Reference GuideThroughout the PDS, there are references to additional information contained in the Reference Guide. You can obtain a copy of the PDS andthe Reference Guide, free of charge, by visiting www.cbgam.com.au or www.eqt.com.au/insto or by calling the Responsible Entity.

The information contained in the Reference Guide may change between the day you receive this PDS and the day you acquire the product. Youmust therefore ensure that you have read the Reference Guide current as at the date of your application.

Updated informationInformation in this PDS is subject to change. We will notify you of any changes that have a material adverse impact on you or othersignificant events that affect the information contained in this PDS. Any information that is not materially adverse information is subject tochange from time to time and may be obtained by visiting www.cbgam.com.au or www.eqt.com.au/insto. A paper copy of the updatedinformation will be provided free of charge on request.

Investment ManagerCBG Asset Management LimitedABN 12 098 327 809PO Box Q1286, Queen Victoria Building NSW1230 AustraliaPh: 1300 788 568www.cbgam.com.au

AdministratorLink Fund SolutionsUnitholder ServicesPO Box 5482Sydney NSW 2001

Responsible EntityEquity Trustees LimitedABN 46 004 031 298, AFSL 240975GPO Box 2307Melbourne VIC 3001Ph: +61 3 8623 5000Web: www.eqt.com.au/insto

CBG Australian Equities Fund PDS 1

1. About Equity Trustees LimitedThe Responsible EntityEquity Trustees LimitedEquity Trustees Limited ABN 46 004 031 298 AFSL 240975, asubsidiary of EQT Holdings Limited ABN 22 607 797 615, which is apublic company listed on the Australian Securities Exchange (ASX:EQT), is the Fund’s responsible entity and issuer of this PDS.Established as a trustee and executorial service provider by a specialAct of the Victorian Parliament in 1888, today Equity Trustees is adynamic financial services institution which continues to grow thebreadth and quality of products and services on offer.

Equity Trustees’ responsibilities and obligations as the Fund’sresponsible entity are governed by the Fund’s constitution(“Constitution”), the Corporations Act and general trust law. EquityTrustees has appointed CBG Asset Management Limited as theinvestment manager of the Fund. Equity Trustees has appointed acustodian to hold the assets of the Fund. The custodian has nosupervisory role in relation to the operation of the Fund and is notresponsible for protecting your interests.

The Investment ManagerCBG Asset Management Limited (“CBGAM”)CBGAM is a wholly-owned subsidiary of Clime InvestmentManagement Ltd, listed on the Australian Securities Exchange (ASX:CIW). Clime is an Australian-based fund manager specialising inabsolute return focused Australian and international equitiesinvesting. Clime is dedicated to providing investment solutionsaligned with their clients’ objectives, reflected in their values oftransparency, integrity and conviction.

Clime currently manages in excess of $800 million on behalf ofinvestors.

2. How the CBG AustralianEquities Fund works

The Fund is a registered managed investment scheme governed bythe Constitution. The Fund comprises assets which are acquired inaccordance with the Fund’s investment strategy. Direct investorsreceive units in the Fund when they invest. In general, each unitrepresents an equal interest in the assets of the Fund subject toliabilities; however, it does not give investors an interest in anyparticular asset of the Fund.

If you invest in the Fund through an IDPS (as defined in the ReferenceGuide) you will not become an investor in the Fund. The operator orcustodian of the IDPS will be the investor entered in the Fund’sregister and will be the only person who is able to exercise the rightsand receive the benefits of a direct investor. Your investment in theFund through the IDPS will be governed by the terms of yourIDPS. Please direct any queries and requests relating to yourinvestment to your IDPS Operator. Unless otherwise stated, theinformation in the PDS applies to direct investors.

Applying for unitsYou can acquire units by completing the Application Form thataccompanies this PDS. The minimum initial investment amount forthe Fund is $10,000.

Completed Application Forms should be sent along with youridentification documents (if applicable) to:

Attention: CBGAM Unit RegistryLink Fund SolutionsGPO Box 5482SYDNEY NSW 2001

Please note that cash cannot be accepted.

We reserve the right to accept or reject applications in whole or inpart at our discretion. We have the discretion to delay processingapplications where we believe this to be in the best interest of theFund’s investors.

The price at which units are acquired is determined in accordancewith the Constitution (“Application Price”). The Application Price ona Business Day is, in general terms, equal to the Net Asset Value(“NAV”) of the Fund, divided by the number of units on issue andadjusted for transaction costs (“Buy Spread”). At the date of thisPDS, the Buy Spread is 0.25%.

The Application Price will vary as the market value of assets in theFund rises or falls.

Making additional investmentsYou can make additional investments into the Fund at any time bysending us your additional investment amount together with acompleted Application Form. There is no minimum additionalinvestment amount.

DistributionsAn investor’s share of any distributable income is calculated inaccordance with the Constitution and is generally based on thenumber of units held by the investor at the end of the distributionperiod.

The Fund usually distributes income semi-annually and distributionsare usually paid to investors within 30 days of the period end, being30 June and 31 December, however, Equity Trustees may change thedistribution frequency without notice. Distributions are calculatedeffective the last day of each distribution period and are normallypaid to investors as soon as practicable after the distributioncalculation date.

Investors in the Fund can indicate a preference to have theirdistribution:

• reinvested back into the Fund; or• directly credited to their Australian domiciled bank account.

Investors who do not indicate a preference will have theirdistributions automatically reinvested. Applications for reinvestmentwill be taken to be received immediately prior to the next BusinessDay after the relevant distribution period. There is no Buy Spread ondistributions that are reinvested.

In some circumstances, the Constitution may allow for an investor’swithdrawal proceeds to be taken to include a component ofdistributable income.

Indirect Investors should review their IDPS Guide for information onhow and when they receive any income distribution.

Access to your moneyInvestors in the Fund can generally withdraw their investment bycompleting a written request to withdraw from the Fund and mailingit to:


Or sending it by fax to +61 2 9221 1194.

The minimum withdrawal amount is nil. Once we receive and acceptyour withdrawal request, we may act on your instruction withoutfurther enquiry if the instruction bears your account number orinvestor details and your (apparent) signature(s), or your authorisedsignatory’s (apparent) signature(s).

Equity Trustees will generally allow an investor to access theirinvestment within 7 days of acceptance of a withdrawal request bytransferring the withdrawal proceeds to such investors’ nominatedbank account. However, Equity Trustees is allowed to rejectwithdrawal requests, and also to make payment up to 30 days afteracceptance of a request (which may be extended in certaincircumstances) as outlined in the Constitution and Reference Guide.

2 CBG Australian Equities Fund PDS

We reserve the right to accept or reject withdrawal requests in wholeor in part at our discretion.

The price at which units are withdrawn is determined in accordancewith the Constitution (“Withdrawal Price”). The Withdrawal Price ona Business Day is, in general terms, equal to the NAV of the Fund,divided by the number of units on issue and adjusted for transactioncosts (“Sell Spread”). At the date of this PDS, the Sell Spread is0.25%.

The Withdrawal Price will vary as the market value of assets in theFund rises or falls.

Equity Trustees reserves the right to fully redeem your investment ifyour investment balance in the Fund falls below a certain value as aresult of processing your withdrawal request. In certaincircumstances, for example, when there is a freeze on withdrawals,where accepting a withdrawal is not in the best interests of investorsin the Fund including due to one or more circumstances outside itscontrol or where the Fund is not liquid (as defined in theCorporations Act), Equity Trustees can deny or suspend a withdrawalrequest and you may not be able to withdraw your funds in the usualprocessing times or at all. When the Fund is not liquid, an investorcan only withdraw when Equity Trustees makes a withdrawal offer toinvestors in accordance with the Corporations Act. Equity Trustees isnot obliged to make such offers.

If you are an Indirect Investor, you need to provide your withdrawalrequest directly to your IDPS Operator. The time to process awithdrawal request will depend on the particular IDPS Operator andthe terms of the IDPS.

Unit pricing discretions policyEquity Trustees has developed a formal written policy in relation tothe guidelines and relevant factors taken into account whenexercising any discretion in calculating unit prices (includingdetermining the value of the assets and liabilities). A copy of thepolicy and, where applicable and to the extent required, any otherrelevant documents in relation to the policy will be made availablefree of charge on request.

Additional informationIf and when the Fund has 100 or more direct investors, it will beclassified by the Corporations Act as a ‘disclosing entity’. As adisclosing entity, the Fund will be subject to regular reporting anddisclosure obligations. Investors would then have a right to obtain acopy, free of charge, of any of the following documents:

• the most recent annual financial report lodged with ASIC(“Annual Report”);

• any subsequent half yearly financial report lodged with ASICafter the lodgement of the Annual Report; and

• any continuous disclosure notices lodged with ASIC after theAnnual Report but before the date of this PDS.

Equity Trustees will comply with any continuous disclosure obligationby lodging documents with ASIC as and when required.

Copies of these documents lodged with ASIC in relation to the Fundmay be obtained from ASIC through ASIC’s website.

Further reading�

You should read the important information in the ReferenceGuide about:

• Application cut-off times;

• Application terms;

• Authorised signatories;

• Reports;

• Withdrawal cut-off times;

• Withdrawal terms; and

• Withdrawal restrictions,

under the “Investing in the CBG Australian Equities Fund”,“Managing your investment” and “Withdrawing yourinvestment” sections before making a decision. Go to theReference Guide which is available at www.cbgam.com.au orwww.eqt.com.au/insto. The material relating to these mattersmay change between the time when you read this PDS and theday when you acquire the product.

3. Benefits of investing in the CBGAustralian Equities Fund

The Fund aims to achieve its investment objective, which is tooutperform the S&P/ASX200 Accumulation Index over a rolling fiveyear period before fees, expenses and taxes, by investing primarily inAustralian listed shares included in the S&P/ASX 200 Index. The Fundaims to provide capital growth and some income.

The significant benefits of the Fund are:

• access to the expertise of an active, boutique Australian equitiesinvestment manager;

• access to investment opportunities, markets and riskmanagement techniques that may not be available to individualinvestors;

• diversification through pooling of assets that may not beavailable to an individual investor;

• potential to invest at a lower cost than investing direct; and• the right to receive any income distributions as well as any other

distributions (such as capital distributions). Distributions mayalso carry imputation, foreign or other tax credits.

4. Risks of managed investmentschemes

All investments carry risks. Different investment strategies may carrydifferent levels of risk, depending on the assets acquired under thestrategy. Assets with the highest long-term returns may also carry thehighest level of short-term risk. The significant risks below should beconsidered in light of your risk profile when deciding whether toinvest in the Fund. Your risk profile will vary depending on a range offactors, including your age, the investment time frame (how long youwish to invest for), your other investments or assets and your risktolerance.

The Responsible Entity and Investment Manager do not guaranteethe liquidity of the Fund’s investments, repayment of capital or anyrate of return or the Fund’s investment performance. The value of theFund’s investments will vary. Returns are not guaranteed and you maylose money by investing in the Fund. The level of returns will vary andfuture returns may differ from past returns. Laws affecting managedinvestment schemes may change in the future. The structure andadministration of the Fund is also subject to change.

In addition, we do not offer advice that takes into account yourpersonal financial situation, including advice about whether the Fundis suitable for your circumstances. If you require personal financial ortaxation advice, you should contact a licensed financial adviserand/or taxation adviser.


Derivatives riskThe Investment Manager may use Derivatives such as futures oroptions for Hedging purposes, to lower risk. Risks associated withusing these instruments might include the value of the Derivativefailing to move in line with the underlying asset, potential illiquidityof the Derivative, the possibility the Fund may not be able to meetpayment obligations and counterparty risk (this is where thecounterparty to the Derivative contract cannot meet its obligationsunder the contract). The Investment Manager aims to keepDerivative risk to a minimum by constantly monitoring the use ofDerivatives in the Fund, making sure the Fund can meet all itsobligations with respect to Derivatives, ensuring that all Derivativepositions are fully covered by physical assets and by entering intoDerivative contracts with reputable counterparties.

Equity riskThe risk that share prices will fall over short or extended periods oftime. Historically, shares have outperformed most other traditionalasset classes over the long term. Share markets, however, tend tomove in cycles and individual share prices may fluctuate andunderperform other asset classes over extended periods of time.

Fund riskRisks particular to the Fund include the possibility that the Fundcould be terminated, the fees and expenses could increase or wecould exercise our right to compulsorily redeem an investor’s units inthe Fund. We could be replaced as responsible entity of the Fund.Also, CBGAM could be replaced as investment manager. There isalso a risk that investing in the Fund may give a less favourable resultthan investing directly because of income or capital gains accrued inthe Fund and the consequences of investment and withdrawal byother investors in the Fund. The Fund may be more concentratedthan other similar funds. These risks are managed by monitoring theFund and acting in the best interests of the investor.

Inflation riskThis is the risk that the rate of inflation exceeds the net after taxreturn from an investment in the Fund.

Liquidity riskIf a share or security is not actively traded it may not be readilybought or sold without some adverse impact on the price paid orobtained. The Investment Manager aims to manage this risk throughits investment process, by carefully selecting the Fund’s investments,managing the purchase and sale of these investments and bymonitoring the cash levels in the Fund to ensure there is adequateliquidity.

Market riskEconomic, technological, political, regulatory or legal conditions,and even market sentiment, can (and do) change, and this can meanthat changes in the value of investment markets can affect the valueof the investments in the Fund. The Investment Manager managesthis risk in using research and analysis to form a view on thesematters and then makes investment decisions in the Fund aiming toreduce the impact.

Sector riskCompanies in different but closely related industries are said to be inthe same market sector. The values of shares in companies in thesame market sector may be similarly affected by a market oreconomic event.

5. How we invest your money

Warning: Before choosing to invest in the Fund you shouldconsider the likely investment returns, the risks of investing andyour investment time frame.

Investment objectiveThe Fund aims to out-perform the S&P/ASX 200 Accumulation Indexover a rolling five year period before fees, expenses and taxes.

BenchmarkS&P/ASX 200 Accumulation Index.

Minimum suggested time frameThe minimum suggested time frame for investment in the Fund isfive to seven years.

Risk level of the FundHigh.

The likelihood of the value of your investment in the Fund falling overthe short term is high compared to investments in funds that invest infixed interest or cash or diversified asset classes. Please see Section 4of this PDS for further information about the risks of investing in theFund.

Investor suitabilityThe Fund is suitable for investors seeking higher returns in Australianequities over the longer term.

Investment style and approachThe Fund invests primarily in shares of listed companies in theS&P/ASX 200 Index. It can also hold listed shares outside of theS&P/ASX 200 Index and acquire shares in IPOs on the ASX, as well assome cash and cash-type investments including listed interest ratesecurities.

Asset allocationAsset Class

Australian Listed Shares - 50-100%Cash - 0-50%Listed Interest Rate Securities (*) - 0-10%Initial Public Offerings (IPO) (**) - 0-10%

(*) this is a sub sector of the Cash Asset Class

(**) this will generally be a sub sector of the Australian Listed SharesAsset Class (unless an unlisted company does not proceed with itsIPO)

Changing the investment strategyThe investment strategy and asset allocation parameters may bechanged. If a change is to be made, investors in the Fund will benotified in accordance with the Corporations Act.

Labour, environmental, social and ethicalconsiderationsWe do not take labour standards or environmental, social or ethicalconsiderations into account when making investment decisions.However, to the extent that the Investment Manager believes thosematters may affect the value or performance of an underlyinginvestment, they may be considered. We do not have apredetermined view as to what constitutes a labour standard orenvironmental, social or ethical consideration.

Fund performanceUp to date information on the performance of the Fund is availableat www.cbgam.com.au. Past performance is not necessarily a guideto future performance.


6. Fees and costs

DID YOU KNOW?Small differences in both investment performance and feesand costs can have a substantial impact on your long-termreturns.

For example, total annual fees and costs of 2% of your accountbalance rather than 1% could reduce your final return by up to20% over a 30 year period (for example, reduce it from$100,000 to $80,000).

You should consider whether features such as superiorinvestment performance or the provision of better memberservices justify higher fees and costs.

You may be able to negotiate to pay lower contribution feesand management costs where applicable. Ask the fund or yourfinancial adviser.

TO FIND OUT MOREIf you would like to find out more, or see the impact of the feesbased on your own circumstances, the Australian Securities andInvestments Commission (ASIC) website(www.moneysmart.gov.au) has a managed funds fee calculatorto help you check out different fee options.

The information in the following template can be used to comparecosts between different simple managed investment schemes. Feesand costs can be paid directly from an investor’s account ordeducted from investment returns. For information on tax please seeSection 7 of this PDS.

TYPE OF FEE ORCOST Amount

Fees when your money moves in or out of the Fund

Establishment fee Nil

Contribution fee Nil

Withdrawal fee Nil

Termination fee Nil

Management costs

The fees and costs formanaging yourinvestment1

Management fees: 1.03% p.a. of the NAV ofthe Fund2

Performance fees: 20.5% of the amount bywhich the Fund’s performance exceeds theBenchmark. Any underperformance from aprior period must be recouped before a feecan be taken (we call this thehigh-watermark)3

1 All fees quoted above are inclusive of Goods and Services Tax(GST) and net of any Reduced Input Tax Credits (RITC). See below formore details as to how management costs are calculated.2 Management fees can be negotiated. See “Differential fees”below.3 This represents the performance fees which are payable as anexpense of the Fund to the Investment Manager. See “Performancefees” below for more information.

Additional Explanation of fees and costsWhat do the management costs pay for?Management costs comprise the additional fees or costs that aninvestor incurs by investing in the Fund rather than by investingdirectly in the underlying assets of the Fund. Management costsinclude management fees and performance fees.

In addition, management costs do not include transactional andoperational costs (i.e. costs associated with investing the underlyingassets, some of which may be met by Buy/Sell Spreads).

Management feesThe management fees of 1.03% p.a. of the NAV of the Fund arepayable to the Responsible Entity of the Fund for managing theassets and overseeing the operations of the Fund. The managementfees are accrued daily and paid from the Fund monthly in arrears andreflected in the unit price. As at the date of this PDS, ordinaryexpenses such as investment management fees, custodian fees,administration and audit fees, and other ordinary expenses ofoperating the Fund are covered by the management fees at noadditional charge to you.

The management fees shown above do not include extraordinaryexpenses (if they are incurred in future), such as litigation costs andthe costs of convening investor meetings.

Performance feesPerformance fees are payable to the the Investment Manager wherethe investment performance of the Fund exceeds the performanceof the Benchmark (“Benchmark”). The performance fees are 20.5% ofthis excess, calculated daily and paid semi-annually in arrears fromthe Fund and calculated based on the beginning NAV of the Fundover the relevant period.

No performance fees are payable until any accruedunderperformance (in dollar terms) from prior periods has beenmade up (this feature is sometimes referred to as a high-watermark).

Based on the current calculation methodology for the performancefee, the Responsible Entity has estimated that the typical ongoingperformance fee payable per annum may be $330 assuming anaverage account balance of $50,000 during the year. However, this isnot a forecast as the actual performance fee for the current andfuture financial years may differ. The Responsible Entity cannotguarantee that performance fees will remain at their previous level orthat the performance of the Fund will outperform the Benchmark.

It is not possible to estimate the actual performance fee payable inany given period, as we cannot forecast what the performance of theFund will be, but it will be reflected in the management costs for theFund for the relevant year. Information on current performance feeswill be updated from time to time and available atwww.eqt.com.au/insto.

Transactional and operational costsIn managing the assets of the Fund, the Fund may incur transactionaland operational costs such as brokerage, settlement costs, clearingcosts and applicable stamp duty when assets are bought and sold,and the costs of derivatives used for hedging purposes (ifapplicable). This generally happens when the assets of a fund arechanged in connection with day-to-day trading or when there areapplications or withdrawals which cause net cash flows into or out ofa fund.

The Buy/Sell Spread reflects the estimated transaction costs incurredin buying or selling assets of the Fund when investors invest in orwithdraw from the Fund. The Buy/Sell Spread is an additional cost tothe investor but is incorporated into the unit price and incurred whenan investor invests in or withdraws from the Fund and is notseparately charged to the investor. The Buy Spread is paid into theFund as part of an application and the Sell Spread is left in the Fundas part of a redemption and not paid to Equity Trustees or theInvestment Manager. The estimated Buy/Sell Spread is 0.25% uponentry and 0.25% upon exit. The dollar value of these costs based onan application or a withdrawal of $10,000 is $25 for each individualtransaction. The Buy/Sell Spread can be altered by the ResponsibleEntity at any time. The Responsible Entity may also waive theBuy/Sell Spread in part or in full at its discretion.


Transactional costs which are incurred other than in connection withapplications and withdrawals arise through the day-to-day trading ofthe Fund’s assets and are reflected in the Fund’s unit price. As thesecosts are factored into the NAV of the Fund and reflected in the unitprice, they are an additional implicit cost to the investor and are not afee paid to the Responsible Entity. These costs can arise as a result ofbid-offer spreads (the difference between an asset’s bid/buy priceand offer/ask price) being applied to securities traded by the Fund.Liquid securities generally have a lower bid-offer spread while lessliquid assets have a higher bid-offer spread reflecting thecompensation taken by market makers in providing liquidity for thatasset.

During the financial year ended 30 June 2018, the total transactioncosts for the Fund were estimated to be 0.52% of the NAV of theFund, of which 23.24% of these transaction costs were recouped viathe Buy/Sell Spread, resulting in a net transactional cost to the Fundof 0.40% p.a.

However, actual transactional and operational costs for future yearsmay differ.

Can the fees change?Yes, all fees can change without investor consent, subject to themaximum fee amounts specified in the Constitution. Equity Trusteeshas the right to recover all reasonable expenses incurred in relationto the proper performance of its duties in managing the Fund and assuch these expenses may increase or decrease accordingly. We willgenerally provide investors with at least 30 days’ notice of anyproposed change to the management costs. In most circumstances,the Constitution defines the maximum level that can be charged forfees described in this PDS. Expense recoveries may change withoutnotice, for example, when it is necessary to protect the interests ofexisting members and if permitted by law.

Payments to IDPS OperatorsSubject to the law, annual payments may be made to some IDPSOperators because they offer the Fund on their investment menus.Product access is paid by the Investment Manager out of itsmanagement fees and is not an additional cost to the investor. If thepayment of annual fees to IDPS Operators is limited or prohibited bythe law, Equity Trustees will ensure the payment of such fees isreduced or ceased.

Differential feesThe Responsible Entity or Investment Manager may from time totime negotiate a different fee arrangement (by way of a rebate orwaiver of fees) with certain investors who are Australian WholesaleClients.

Example of annual fees and costs for the FundThis table gives an example of how the fees and costs for thismanaged investment product can affect your investment over a 1year period. You should use this table to compare this product withother managed investment products.

EXAMPLE – CBG Australian Equities Fund

BALANCE OF $50,000 WITH A CONTRIBUTION OF $5,000DURING THE YEAR

Contribution Fees Nil For every additional $5,000you put in, you will becharged $0

Plus

ManagementcostsComprising:

Management fees:

Performance fees:

1.60% p.a.

1.03% p.a.

0.57% p.a.

And, for every $50,000 youhave in the Fund you will becharged $800 each yearcomprising:

$515

$285

EqualsCost of Fund

If you had an investment of$50,000 at the beginning ofthe year and you put in anadditional $5,000 during thatyear, you would be chargedfees of:$800*What it costs you willdepend on the fees younegotiate.

This example assumes the $5,000 contribution occurs at the end ofthe first year, therefore management costs are calculated using the$50,000 balance only.

* Additional fees may apply. Please note that this example does notcapture all the fees and costs that may apply to you such as theBuy/Sell Spread.

The performance fees stated in this table shows the actualperformance fees for the financial year ended 30 June 2018 as apercentage of the Fund’s average NAV. The performance of theFund, and the performance fees, may be higher or lower or notpayable in the future. As a result, the management costs may differfrom the figure shown in the table. It is not a forecast of theperformance of the Fund or the amount of the performance fees inthe future. See also above (next to the heading “Performance fees”)our estimated typical ongoing performance fees payable per annum.The actual indirect costs and performance fees for the currentfinancial year and for future financial years may differ. For moreinformation on the performance history of the Fund, visit EquityTrustees’ website at www.eqt.com.au/insto. Past performance is nota reliable indicator of future performance.

Warning: If you have consulted a financial adviser, you may payadditional fees. You should refer to the Statement of Advice orFinancial Services Guide provided by your financial adviser in whichdetails of the fees are set out.

ASIC provides a fee calculator on www.moneysmart.gov.au, whichyou may use to calculate the effects of fees and costs on accountbalances.

Further reading�

You should read the important information in the ReferenceGuide about:

• Performance fee example

under the “Additional information on fees and costs” sectionbefore making a decision. Go to the Reference Guide which isavailable at www.cbgam.com.au or www.eqt.com.au/insto. Thematerial relating to these matters may change between the timewhen you read this PDS and the day when you acquire theproduct.


7. How managed investment schemesare taxed

Warning: Investing in a registered managed investmentscheme (such as the Fund) is likely to have tax consequences.You are strongly advised to seek your own professional taxadvice about the applicable Australian tax (including incometax, GST and duty) consequences and, if appropriate, foreigntax consequences which may apply to you based on yourparticular circumstances before investing in the Fund.

The Fund is an Australian resident for tax purposes and does notgenerally pay tax on behalf of its investors. Australian residentinvestors are assessed for tax on any income and capital gainsgenerated by the Fund to which they become presently entitled or,where the Fund has made a choice to be an Attribution ManagedInvestment Trust (“AMIT”) and the choice is effective for the incomeyear, are attributed to them.

Further readingYou should read the important information in the ReferenceGuide about Taxation under the “Other important information”section before making a decision. Go to the Reference Guidewhich is available at www.cbgam.com.au orwww.eqt.com.au/insto. The material relating to these mattersmay change between the time when you read this PDS and theday when you acquire the product.

8. How to applyTo invest please complete the Application Form accompanying thisPDS, send funds (see details in the Application Form) and yourcompleted Application Form to:


Please note that cash cannot be accepted and all applications mustbe made in Australian dollars.

Who can invest?Direct investors must be Wholesale Clients and individual investorsmust be 18 years of age or over.

Investors investing through an IDPS should use the application formprovided by the operator of the IDPS.

Cooling off periodNo cooling off period applies to the offer made in the PDS, as theunits offered under this PDS are only available to Wholesale Clients.

Indirect investors should seek advice from their IDPS Operator as towhether cooling off rights apply to an investment in a fund by theIDPS. The right to cool off in relation to a fund are not directlyavailable to an indirect investor. This is because an indirect investordoes not acquire the rights of a unit holder in a fund. Rather, anindirect investor directs the IDPS Operator to arrange for theirmonies to be invested in a fund on their behalf. The terms andconditions of the IDPS Guide or similar type document will govern anindirect investor’s investment in relation to a fund and any rights anindirect investor may have in this regard.

Complaints resolutionEquity Trustees has an established complaints handling process andis committed to properly considering and resolving all complaints. Ifyou have a complaint about your investment, please contact us on:

Phone: 1300 133 472Post: Equity Trustees LimitedGPO Box 2307, Melbourne VIC 3001Email: [email protected]

We will acknowledge receipt of the complaint as soon as possibleand in any case within 3 days of receiving the complaint. We will seekto resolve your complaint as soon as practicable but not more than45 days after receiving the complaint.

If you are not satisfied with our response to your complaint, you maybe able to lodge a complaint with the Australian FinancialComplaints Authority (“AFCA”).

Contact details are:Online: www.afca.org.auPhone: 1800 931 678Email: [email protected]: GPO Box 3, Melbourne VIC 3001.

The external dispute resolution body is established to assist you inresolving your complaint where you have been unable to do so withus. However, it’s important that you contact us first.

9. Other informationConsentThe Investment Manager has given and, as at the date of this PDS,has not withdrawn:

• its written consent to be named in this PDS as the InvestmentManager of the Fund; and

• its written consent to the inclusion of the statements made aboutit which are specifically attributed to it, in the form and context inwhich they appear.

The Investment Manager has not otherwise been involved in thepreparation of this PDS or caused or otherwise authorised the issueof this PDS. None of the Investment Manager nor their employees orofficers accept any responsibility arising in any way for errors oromissions, other than those statements for which they have providedtheir written consent to Equity Trustees for inclusion in this PDS.

Further readingYou should read the important information in the ReferenceGuide about:

• Your privacy;

• The Constitution;

• Anti-Money Laundering and Counter Terrorism Financinglaws (“AML/CTF laws”);

• Indirect Investors;

• Information on underlying investments;

• Foreign Account Tax Compliance Act (“FATCA”); and

• Common Reporting Standard (“CRS”),

under the “Other important information” section before makinga decision. Go to the Reference Guide which is available atwww.cbgam.com.au or www.eqt.com.au/insto. The materialrelating to these matters may change between the time whenyou read this PDS and the day when you acquire the product.


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CBG Australian Equities Fund