MyNorth®Managed Portfolios - North Online€¦ · Issue number 5, 20 May ₂₀₂₀ MyNorth®Managed Portfolios Productdisclosurestatement–Part₁ Generalinformation Part1Generalinformation

Issue number 5, 20 May ₂₀₂₀

MyNorth®ManagedPortfoliosProduct disclosure statement – Part ₁General information

Part 1 General informationARSN 624 544 136® Registered trademark of NMMT Limted ABN 42 058 835 573 AFS Licence 234653

About this product disclosure statementProduct issuer, PDS structure and NorthPlatformsMyNorth Managed Portfolios is a non-unitised registered managedinvestment scheme. NMMT Limited (NMMT) ABN 42 058 835 573,AFSL 234653, issues the interests in, and is the responsible entity forMyNorthManaged Portfolios. NMMT is also the issuer of this productdisclosure statement (PDS).

This PDS is comprised of two parts:– Part 1 – General information (this document) – an overview of

howMyNorth Managed Portfolios work.– Part 2 – Managed portfolio menu – information on the managed

portfolios available to you, including fees and costs that apply.

The latest versions of these documents, which together comprise thisPDS are available free of charge from northonline.com.au or bycontacting the North Service Centre on 1800 667 841.

Investment in MyNorth Managed Portfolios is only available throughthe following superannuation products or investor directed portfolioservices (IDPSs) each of which are referred to in this PDS as a ‘NorthPlatform’:

– MyNorthSuper (USINMS0040AU) andPension (USINMS0039AU),North Super, and Pension (USI NMS0039AU), iAccess PersonalSuper (USI BNN0006AU) andAllocatedPension (USI BNN0005AU),Summit Personal Super (USI NMM0104AU) and Personal Pension(USI NMM0102AU) which are each plans offered as a part of theWealth Personal Superannuation and Pension Fund (the Fund).The Trustee of the Fund is N.M. Superannuation Pty Limited (NMSuper) ABN 31 008 428 322 AFSL 234654, or

– MyNorth Investment, North Investment, iAcess Investment andSummit Money Master, which are all IDPSs operated andadministered by NMMT in a separate capacity to its role asresponsible entity of MyNorth Managed Portfolios.

Note: Not all the managed portfolios are available across all of theproducts on the North Platform. Check availability of the managedportfolios in themanaged portfolio menu in Part 2 of this PDS.

In this PDS:– a member of MyNorth Managed Portfolios acting in the capacity

of trustee or operator of a North Platform is referred to as a'Platform Operator'

– the terms ‘you’ and ‘your’ refer to you as the investor for whoman interest in MyNorth Managed Portfolios is held through arelevant North Platform

– the terms 'we', 'us', and 'our' refer to NMMT in its capacity asresponsible entity of MyNorth Managed Portfolios

– a reference to 'your Portfolio', is a reference to the assets inMyNorthManaged Portfolios that are held in connectionwith theparticular interest inMyNorthManagedPortfolios that is referableto you. A separate interest and portfolio is held in respect of eachmanaged portfolio in relation to which you choose to invest inMyNorth Managed Portfolios

– references to your ‘Platform cash account’ are references to thecash account that formspart of your interest in the relevantNorthPlatform through which you access MyNorth managed Portfolios

In addition to reading this PDS, it is important that you read the latestterms and conditions of the relevant North Platform through whichyouare accessingMyNorthManagedPortfolios. Generally, the PlatformOperator cannot deal with your North investments without your priorinstructions except in certain circumstances such as where you haveprovided standing directions. When you invest in MyNorth ManagedPortfolios throughaNorth Platform, youprovide the PlatformOperatorwithanumberof standingdirections to facilitate that investment, andthese are set out in theNorth Platformaccount details – authorisationforms.

Persons appointed by NMMTNMMT has appointed:– RBC Investor Services Trust (RBC Investor Services) AFSL 295018

(Australian Branch), a company incorporated under the laws ofCanada, to act as custodian in relation to assets held in connectionwith MyNorth Managed Portfolios.

The custodian will hold the assets in MyNorthManaged Portfolios forthe responsible entity, who in turnwill hold its interest in those assetsfor the Platform Operators that are the members of the Scheme. Thismeans that you do not have a direct relationship with the custodianand the custodian does not provide any services to you directly inrelation to MyNorth Managed Portfolios. You retain the ultimatebeneficial interest in the assets that form part of your Portfolio.

Our experienced AMP Research team have designed and will monitorand make changes to specified managed portfolios in this PDS.

NMMT has also appointed Zenith Investment Partners Pty Limited(ABN27103132672,AFSL226872) (Zenith InvestmentPartners) ,QuillaConsulting Pty Ltd (ABN 99 600 052 659, AFSL 511401) (QuillaConsulting) , Lonsec Investment Solutions Pty Ltd (ABN 95 608 837583, CAR No: 1236821 of AFSL 421445) (Lonsec) and InvestSense PtyLtd (ABN 31 601 876 528, CAR No: 1006839 of AFSL 408 800)(InvestSense), Pendal Institutional Limited (ABN 17 126 390 627, AFSL316455) (Pendal) as Investment Managers for specified managedportfolios described in themanaged portfolio menu in Part 2 of thisPDS.

We will manage your Portfolio(s) in accordance with the managedportfolio(s) you have selected from the menu of available managedportfolios. Each managed portfolio is a notional portfolio of assetsmanaged in accordance with a particular investment strategy (asdescribed in this PDS). NMMTmay appoint investment managers toprovide it with advice on the composition and management ofmanaged portfolios.

NMMT will purchase, sell, subscribe for, apply for, transfer or redeemassets in order to align your Portfolio, as closely as is practicable, to thecomposition of the relevant managed portfolio.

NMMTmayappoint relatedpartieswithin theAMPgroupof companiesas the investmentmanagers in respectofparticularmanagedportfolios.Such appointments will be made on an ‘arm’s-length’ basis.

Platform cash accountYour Platform cash account will be used to:– settle transactions relating to MyNorth Managed Portfolios– fund the purchase of assets to be held as part of your Portfolio– receive the proceeds of asset disposals in connection with the

management of your Portfolio, and reinvest those amounts intoyour Portfolio

– receive any distributions relating to the assets held as part of yourPortfolio (and in some circumstances reinvest those amounts intoyour Portfolio), and

– pay fees, expenses, taxes and or charges in relation to the interestin MyNorth Managed Portfolios that is held for you through therelevant North Platform.

You provide standing instructions to the Platform Operator for yourPlatform cash account to be used for these purposes.

See platform cash account on page 8 for further information.

northonline.com.au

ApplicationsWemay accept or refuse (without reason) any application for aninterest in MyNorth Managed Portfolios. This PDS is only intended forNorth Platform account holders receiving it (including electronically)in Australia and should not be construed as being an offer made toinvest in any jurisdiction other than Australia.

AMP GroupNMMT and NM Super are wholly owned subsidiaries of AMP Limited.An investment in this scheme is not a deposit with, or other liabilityof, AMP Bank Limited ABN 15 081 596 009 AFSL 234517 (AMP Bank)nor any other AMP group company, and is subject to investment riskincluding possible delays in repayment and loss of income or principalinvested.

Neither AMP Bank, NMMT nor any other AMP group company standsbehind or otherwise guarantees any investment in, or performance of,anymanagedportfolio, the repayment of capital, or any particular rateof return.

Changes to the PDSInformation in this PDS that is notmaterially adversemay change fromtime to time. This informationwill be updated on northonline.com.auand a printed copy of any updated informationwill be provided to youfree of charge on request by contacting the North Service Centre viaemail at [email protected] or by calling us on 1800 667 841.

Before we increase the fees charged in connection with MyNorthManaged Portfolios, we will give you at least 30 days' prior writtennotice. For any other material changes we will inform you as soon aspracticable.

Communication sent to you regarding theMyNorthManagedPortolioswill be sent via North Online and stored in your online filing cabinet,or communicated via 'News & announcements' page.

General information onlyThe information contained in this PDS is general information only anddoes not take into account any of your individual objectives, financialsituation or needs. Before acting on the information in this PDS, youshould consider the appropriateness of this informationhaving regardto your individual objectives, financial situation or needs, and shouldconsult a financial adviser prior to investing.

There are many terms with a specific meaning, which will be in bold.Key terms are defined in the Glossary of terms starting on page 20.

Contents5Introducing MyNorth Managed Portfolios

7How your Portfolio works

12Howwemanage your Portfolio

13Howwe keep you informed on your Portfolio

14What are the risks?

16Taxation

17Other important information

20Glossary of terms

Managed portfolios are designed to deliver a flexible andefficient means of investing and gaining exposure to differentasset classes.

Amanaged portfolio is a notional portfolio of assets with astated investment objective that will guide its management.Your Portfolio(s)will bemanagedas far as practicable to reflectthe managed portfolios you select.

Managed portfolios may provide:– transparency in terms of:

– viewing the underlying assets in your Portfolio– tracking any changes made to your Portfolio– reviewing the performance of the underlying assets as

well as your Portfolio as a whole– potential for more efficient management of your tax, by

holding a beneficial interest in the assets in your Portfolio– oversight of your investment, as you have more

information about the underlying assets, on-goingmanagement and performance of your Portfolio.

Managed Portfolio choiceYou can choose from a range of managed portfolios withvarying investment strategies, objectives, growthanddefensiveasset exposures and underlying managed funds (described inthemanagedportfoliomenu). The rangeofmanagedportfoliosis designed to let you invest across a range of asset classesbased on what you determine to be your financial goals andtolerance to risk. We will select and monitor a range of assetsbased on each managed portfolio’s investment strategies andobjectives.

Expertise

The managed portfolios in this PDS are managed by our AMPResearch team or investment managers we have engaged todesign,monitor, andmake changes to their respective series ofmanaged portfolios in line with the stated investmentobjectives.

Choice

You can select from the range ofmanaged portfolios based onwhat you determine to be your financial goals and toleranceto risk. The managed portfolio menu offers:– 12 diversified managed portfolios constructed and

managed by our AMP Research team.– 4diversifiedmanagedportfolios constructedandmanaged

by Quilla Consulting.– 4diversifiedmanagedportfolios constructedandmanaged

by Zenith Investment Partners.– 3 retirement portfolios constructed and managed by

Lonsec.– 4diversifiedmanagedportfolios constructedandmanaged

by InvestSense.– 1diversifiedmanagedportfolio constructed andmanaged

by Pendal and our AMP Research team having regard tosustainable investment principles.

5

Introducing MyNorth Managed Portfolios

How to establish your PortfolioMore informationSteps

Speak to your financial adviserHow to apply – You will need to have a North Platform account to invest in MyNorth ManagedPortfolios.

Seemanaged portfolio menuSelect a managedportfolio to suit yourneeds

– Your financial adviser will help you select one or more managed portfolios havingregard to your needs and preferences.

– You may be able to transfer existing underlying assets which you hold, in yourNorth Platform account, into your Portfolio.

SeeReview andmonitor – You and your financial adviser can review the performance, asset allocation andtransactions on North Online. – How your Portfolio works

– Howwe keep you informed– We will regularly monitor and align your Portfolio, as closely as is practicable, tothe composition of the relevant managed portfolio.

– You can instruct your financial adviser to make additional investments andwithdrawals at any time.

6

You can access MyNorth Managed Portfolios via your accountin a relevant North Platform.

When you make an investment into MyNorth ManagedPortfolios, we will establish your Portfolio, and purchase theunderlying assets that form part of the managed portfoliosyou have selected.

Your interest inMyNorthManaged Portfolios is held for you bythe Platform Operator, under the terms and conditions thatapply to theNorthPlatformthroughwhich youaccessMyNorthManagedPortfolios. All underlying assets held in your Portfolioare held for us by the custodian that we appoint.

Eachmanagedportfolio has a stated investment objective thatwill guide its management. Each managed portfolio will bemonitored, and its asset allocation adjusted with a view toachieving its investment objective.

We exercise our discretion in making the managementdecisions relating to your Portfolio. Generally,wewill purchase,sell, subscribe for, apply for, transfer or redeem assets in orderto align your Portfolio, as closely as is practicable, to thecomposition of the relevant managed portfolio to which yourPortfolio relates.

The managed portfolios described in the managed portfoliomenu are invested in a range of asset classes. This will allowyou to select amanagedportfoliobasedonwhat youdetermineto be your financial goals and tolerance to risk. Speak to yourfinancial adviser about selectingmanaged portfolios thatmaybe suitable to your needs.

7

How your Portfolio works

Platform cash accountGenerally, your Platform cash account will be used for thepurposes of settling all transactions in relation to your Portfolio,including:– settling transactions relating to the assets held as part of

your Portfolio when it is rebalanced. This includes:– receivingnetproceeds fromadisposal of assets (disposal

proceeds), and reinvesting those amounts to acquireother assets, and

– making additional investments in circumstanceswherea rebalance involves a disposal of certain assets and acorresponding acquisition of substitute assets at thesame time, and market movements result in theproceeds from the asset disposal being less than thecosts of the asset acquisition (the amount of theadditional investment fromyour Platformcashaccountin these circumstances will be equal to the differencebetween the relevant disposal proceeds andacquisitioncosts)

– receiving income from underlying assets and reinvestingthese amounts (except in relation to those managedportfolios where such amounts are not reinvested – seethemanaged portfolio menu for details)

– pay any fees, expenses, taxes and or charges in relation toyour investment in MyNorth Managed Portfolios.

You provide the Platform Operator with standing instructions(as set out in theNorthPlatformaccountdetails – authorisationforms) to facilitate your investment in MyNorth ManagedPortfolios and use your Platform cash account in this way, andyou agree not to vary those instructions.

PerformanceAmanaged portfolio is a notional portfolio of assets that ismanagedaccording to aparticular investment objective.Whenyou invest in MyNorth Managed Portfolios and select aparticularmanagedportfolio, your Portfolio is established, andactual assets are acquired in proportions thatmatch (as closelyas practicable) the composition and asset allocation of themanaged portfolio.

The asset allocation of your Portfolio may differ from thenotional performance and asset allocation of the managedportfolio youhave selected.Not all investorswhohave selectedthe samemanaged portfolio will hold the same assets or thesame weights in those assets in their respective Portfolio.

Reasons for this variance between the asset allocation of yourPortfolio and that of the correspondingmanagedportfoliomayinclude (but are not limited to):– the timing of your investment in connection with the

relevant managed portfolio– cashflow (to and from) your Portfolio, including

contributions andwithdrawals youmake, and income thatmay be received in connection with the underlying assetsheld as part of your Portfolio

– differences in timing of processing instructions and thecorresponding price received for buy and sell transactions

– our decisions relating to the rebalancing of your Portfolio– wemaydecidenot to process a tradeor initiate a rebalance

to minimise small or inefficient trades, or if the rebalanceis not required because the difference between the assetallocation of your Portfolio and the asset allocation of therelevant managed portfolio is within the tolerance rangethat we have determined.

Accordingly, your Portfolio’s performance may differ from theperformance of the particular managed portfolio you haveselected.

The Platform Operator will report on your Portfolio's actualperformancevia reportsaccessible throughyourNorthPlatformaccount. In addition, we will report on the performance in themanaged portfolio quarterly updates also available on NorthOnline.

8

Transacting on your PortfolioAfter receiving your instructions, your financial adviser instructsyour PlatformOperator to perform transactions on your behalfin relation to assets in your North Platform account, includingyour investment into the MyNorth Managed Portfolios. Thesetransactions may include:– investing in a particular managed portfolio– making additional investments into your Portfolio– switching between managed portfolios– making in specie transfers of assets into your Portfolio

from your North Platform account– withdrawing (partial or full) assets from your Portfolio

Your financial adviser can also assist you in generating andviewing reports, communications and statements online. SeeHowwe keep you informed on your Portfolio on page 13 ofthis document for information about the kinds of reports thatcan be generated.

Any transactions made on your Portfolio will generally beconfirmed toyou throughNorthOnline (via yourNorthPlatformreports).

Therewill be timeswhenyour investment instructionsprovidedto the Platform Operator, and the resulting instructions thatthe Platform Operator provides to us, may not be processed orcould be delayed. This could be due to instructions beingunclear, invalid, incomplete, contrary to applicable law orunable to be implemented due tomarket disruptions. If this isthe case, thePlatformOperatorwill notify your financial adviserand seek further instructions.

Note: Your financial adviser only provides investmentinstructions in relation to your investment into MyNorthManaged Portfolios, not in relation to the underlying assetswithin a managed portfolio you have selected. Themanagement of the underlying assets within a managedportfolio is performed by us andmay be based on advice fromthe investment manager(s) that we appoint.

Investing in MyNorth Managed PortfoliosInitial investments into your Portfolio are subject tominimumamounts, which differ depending on the managed portfolioyou choose. These minimum amounts are specified in themanaged portfolio profiles included in themanaged portfoliomenu.

You can make additional investments to your Portfolio usingcash from your Platform cash account at any time, subject tothe rules of the relevantNorth Platform throughwhich you areaccessing MyNorth Managed Portfolios.

Your instructions to invest inMyNorthManaged Portfolioswillbeacteduponafter theyare received fromyour financial adviserby the PlatformOperator. Generally, the PlatformOperatorwillprocess the transaction on the same business day as theinstructions are received.

Once your Portfolio has been established, underlying assets ofthe same kind and in the same proportion as the assets in themanaged portfolio you have selectedwill be acquired andheldin your Portfolio. It can take time to set up your Portfolio withthese underlying assets if they aremanaged funds. The timetaken to process any request and the price at which units in amanaged fund will be traded will vary.

Before making an initial or additional investment in yourPortfolio, it is essential that you read and understand themanaged portfolio profiles, which provide youwith importantinformation about the managed portfolios, such as their keyfeatures and risks.

The managed portfolio profiles for the available managedportfolios are set out in themanaged portfolio menu.

9

Rebalancing your PortfolioEach availablemanaged portfolio ismanaged to a target assetallocation. This means the amount you invest will be used topurchase assets of the same kind and in the same proportionas the underlying assets in the relevant managed portfoliooption that you have selected.

Over a period of time, your Portfolio may deviate away fromthe target asset allocation of the managed portfolio due tomarket movements.

On a periodic basis, we will rebalance your Portfolio back (asclosely as practicable) to the original target asset allocation.

Tolerance rangesmayapply to theunderlyingassetsheldwithina managed portfolio. Setting tolerance ranges has the benefitof minimising costs by eliminating small inefficient trading inthe underlying asset holdings. Your Portfolio’s assets will becompared to the target asset allocation and if one or more ofyourholdings arewithin the set tolerance range, theseholdingsmay not be rebalanced.

If an underlying asset becomes illiquid or trading in that assetis suspended, we can exclude this underlying asset from themanaged portfolio and from further rebalances of yourPortfolio. If this occurs,wewill generally substitute theexcludedassetwith another asset that is consistentwith the investmentobjective and strategy of the relevant managed portfolio.

The excluded asset may be transferred in specie out of yourPortfolio to yourNorthPlatformaccount, andwill bedealtwithaccording to the rules of the relevant North Platform withrespect to the management of such assets. If the excludedasset generates income, this will be paid to your Platform cashaccount.

Income fromMyNorth Managed PortfoliosWhere income is derived from the underlying assets withinyour Portfolio, that income will either be:– paid into your Platform cash account as a partial

withdrawal from your Portfolio and subsequentlyreinvested back into your Portfolio (as per the strategy ofthe managed portfolio) in accordance with your standingdirections to the Platform Operator, or

– paid into your Platform account as a partial withdrawalfrom your Portfolio (as per the strategy of your managedportfolio) and not reinvested back into your Portfolio.

See themanaged portfoliomenu for information on howeachmanaged portfolio treats income.

How to withdrawWithdrawal requests (partial and full) from your Portfolio cangenerally be made at any time.

After we accept a partial withdrawal request, we willproportionally sell down theunderlying assets in your Portfolioand the net proceeds from the sale will be transferred to yourPlatform cash account.

Withdrawals fromyour Portfolio arenormally processedwithin21 days of us receiving all of the necessary information.

Theremay be exceptions to this time framewhich include (butare not limited to):– particular managed funds that have redemption

restrictions that may prevent us from satisfying thewithdrawal request within this period

– the time taken by fund managers to complete processingof sale transactions

– an existing buy or sell instruction has not been confirmed– illiquid managed funds may take longer to process and

thus prevent us from satisfying the withdrawal request– in the unlikely event that MyNorth Managed Portfolios

becomes illiquid,wewill only beable to allowwithdrawalsas permitted by the Corporations Act.

If you make a request to withdraw between 90% and 100% ofthe total asset value of your Portfolio, we may treat this as arequest for a full withdrawal.

If you decide tomake a partial or full withdrawal, net proceedsfromthe salewill be transferred to your Platformcashaccount,or the assets held in your Portfoliomay be transferred in specieto your Platform account.

In some circumstances, we may (at our discretion) initiate afull or partial withdrawal in connection with your Portfolio. Ifthis occurs, then (after the payment of any fees and costs)assets held as part of your Portfoliowill generally be transferredto your North Platform account, or the net proceeds of assetsthat are sold downwill be paid into your Platformcashaccount.

If you make a request to withdraw part of your interest in anymanaged portfolio (via a partial withdrawal or as part of a sellinstruction) and the withdrawal amount exceeds 90% of thecurrent asset value, the sale will be converted from adollar-based to a unit-based sale using the latest market unitprice held at the time of sale. This may result in a differentwithdrawal amount fromyouroriginal requestdue tovariationsinunit prices.Withdrawal periods varybetween fundmanagersand can be found in the underlying assets' PDS. For example,if you held 1,000 units in an investment option valued at $2perunit (1,000x $2=$2,000) and younominated to sell $1,900,we would automatically convert the sale to a unit based saleof 950 units (950 units x $2 = $1,900).

10

Transferring assets in and out of yourPortfolioYou may transfer certain managed fund holdings into yourPortfolio if those managed funds:– are first held in your North Platform account, and– form part of the particular managed portfolio in relation

to which you are investing.

This transfer of underlying assets will be done by way of anin-specie transfer from the North Platform into your Portfolio.

This in-specie transfer may result in the relative weighting ofthe asset you have transferred into your Portfolio exceedingtheweighting given to that asset in the target asset allocationfor that managed portfolio. This in turn may trigger arebalancing of your Portfolio (ie a proportional sell down ofsome underlying assets and purchase of other underlyingassets, so that your Portfolio corresponds to that of the relevantmanaged portfolio).

You may also make an in-specie transfer of underlying assetsheld in your Portfolio to your North Platform account, by wayof a partialwithdrawal request that is satisfied via an in-specietransfer out of your Portfolio. Again, this may result in arebalancing of the remaining assets in your Portfolio.

As responsible entity of MyNorth Managed Portfolios, we donot charge any fees for in-specie assets transfers, from yourNorth Platform account into your Portfolio, or from yourPortfolio into your North Platform account.

Switching between managed portfoliosYou may switch between managed portfolios at any time. Ifwe receive an instruction fromthePlatformOperator to changemanaged portfolios, we will:– compare the underlying asset holdings in your Portfolio

with the asset allocation of the newmanaged portfolio– retain in your Portfolio those underlying assets that can

form part of your Portfolio once it is managed inaccordance with the newmanaged portfolio you haveselected, and

– sell down the underlying assets that are not required onceyour Portfolio is managed in accordance with the newmanaged portfolio. The net proceeds of this sale will bepaid into your Platform cash account, and then reinvested(in accordance with your standing directions to thePlatform Operator) into your Portfolio to purchase theother underlying assets that make up the newmanagedportfolio.

Assets that cannot be held directly in yourNorth Platform accountCertain managed fund holdings that may form part of yourPortfolio are not available to be held directly in your NorthPlatform account. If these non-Platform assets form part ofyour Portfolio (and the underlying assets of the relevantmanaged portfolio) youmay not be able to transfer that assetin specie to your North Platform account. These non-Platformassets will generally be sold down and the net proceeds of thissale will be paid into your North Platform cash account.

11

Selecting the managersBefore we make a managed portfolio available, the managedportfolio and any investment manager are subject to duediligence assessment to determine their suitability.

The due diligence assessment is conducted by our internalresearch teams, which may draw upon external resources.There is an Investment Committee which has oversight of thedue diligence assessment and gives the final approval for amanaged portfolio to be added to the MyNorth ManagedPortfolios menu.

The due diligence assesses the investment managers'experience, investment processes and performance. Otherfactors specific to themanagedportfolio suchas its investmentstrategy and objective are also considered.

All managed portfolios are subject to the same due diligenceand reviewcriteria, includinganymanagedportfolios forwhichwe appoint a related party to construct and manage as ouragent.

AMP group entities may be appointed as an investmentmanager in relation to a number of the managed portfolios.We have policies as to how conflicts of interest are managedand these policies are applied in addition to the due diligenceand suitability criteria.

Our relationship with the investment manager is governed byan agreement and this sets out (among other things) theinvestment mandate applicable to each managed portfolio.

Changes to managed portfoliosWemay from time to time, add or removemanaged portfoliosbased upon the due diligence criteria and our on-goingmonitoring of the investment manager(s) and managedportfolios. If we decide to remove amanaged portfolio, wewillgenerally provide you with notice of the removal as soon aspracticable. If a managed portfolio is terminated, assets heldin your Portfolio (or the net proceeds from their sale) will betransferred to your North Platform account.

We recommend you consult your financial adviser beforeselecting a specific managed portfolio having regard to yourpersonal circumstances and investment strategy.

See themanaged portfolio menu for information on each ofthe managed portfolios available.

Monitoring and measuring performance ofyour PortfolioYou can track your Portfolio through North Online. This allowsyou and your financial adviser to review, transact and reporton your North Platform account. You can log-on at any time tosee how your investments are performing and perform awiderange of transactions.

All communications fromuswill be sent to youviaNorthOnlineand stored in your online filing cabinet, or communicated viathe ‘News & announcements' page.

Labour standards or environmental, socialor ethical considerationsUnless otherwise specified in the managed portfolio menu inPart 2 of this PDS, neitherwe, nor any investmentmanagerwehave appointed in connection with a particular managedportfolio, has taken into consideration labour standards orenvironmental, social or ethical considerations as part of theselection, construction, monitoring and management of therelevantmanagedportfolio.Where any of these considerationsare taken into account in relation to a managed portfolio, themanaged portfolio menu sets out general information aboutthe labour standardsor environmental, social or ethicalmattersthat are taken into account for that managed portfolio, andhow these issues are taken into account.

DerivativesNone of the available managed portfolios invest in derivativesor undertake short selling. However, the managed portfoliosmay indirectly have exposure to derivatives or short-sellingthrough the underlying asset holdings.

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How we manage your Portfolio

Both the Platform Operator and the responsible entity will keep you informed about your Portfolio(s).

All communications and reports sent from the PlatformOperator or uswill be sent via North Online and stored in your online filingcabinet, or communicated via the 'News & announcements’ page.

The table below summaries the types of communications and the reports that you may receive via your North Platform account.Please note the available reports may change from time to time.

Who providesPurposeCommunications/Report

Platform Operator

Details all transactions on:Transaction report

You and your financial adviser can generate thesereports over any time period using North Online.

– your North Platform account– betweenyourNorthPlatformaccountandyourPortfolio– within your Portfolio

A valuation report on:Client review report– your North Platform account; and– your Portfolio

Platform OperatorAn annual statement on:Annual statementThe annual statementwill generally bemade availableon your account anniversary and will be posted to youronline filing cabinet.

– your North Platform super and pension account; and– your Portfolio

Platform OperatorA tax statement on:Annual tax statementThe statement will generally bemade available withinthree months of the end of the financial year and willbe posted to your online filing cabinet.

– your North Platform account; and– your Portfolio

Responsible entityAn annual set of accounts on:Annual financial reportThe annual report will generally be made available bythe end of September each year and will be posted toNorth Online.

– MyNorth Managed Portfolios scheme's financialposition

Note this does not contain any information on yourparticular investment or your Portfolio.

Responsible entityYou can view or download from North Online

Details information on:Managedportfolioquarterlyupdate – the managed portfolio's performance versus its

benchmark; and– commentary from the investment manager

13

How we keep you informed on your Portfolio

The performance of your Portfolio and the interest held for you in MyNorth Managed Portfolios will depend on the performanceof the managed portfolio you choose, and the performance of the assets in your Portfolio. The managed portfolios offered aresubject to risk, includingpossible delays in repaymentand loss of incomeandcapital. Nomemberof theAMPgroupor the investmentmanager(s) guarantee the repayment of capital, payment of income or the performance of the managed portfolios chosen.

All investments carry a risk component. Risk in an investment context refers to the possibility that the investment will not returnits original capital or expected income and that the level of return will be volatile over any given time period. This risk can includemarket risk, company risk, currency risk, interest rate and inflation risk. Investments with a low risk profile will usually providelower, though more consistent, returns than those with a higher risk profile. For example, investing cash into bank accounts isconsidered low risk/low return, while the share market has historically provided higher returns over the longer term with higherrisk and volatility.

Risk associated with MyNorth Managed PortfoliosWe are dependent on the accuracy and efficiency of our administration and computer systems. There is a risk that a failurein any of these systems will cause a delay in processing and rebalancing of your Portfolio.

Operational andimplementationrisks We have procedures in place designed to reduce the risk of systems not working optimally, and we have procedures and

controls in place that are designed to address such occurrences.

A particular investment manager and managed portfolio may underperform their stated objectives and benchmark. Theperformance of your Portfolio is partly dependent on the performance of the investmentmanager(s), whomay not achievetheir investment objective. The degree of success of an investment manager’s strategies and methodologies can varyaccording to economic and other conditions.

Investmentmanager risk

Cash and fixed interestAsset sector risksHistorically, longer-term returns have generally been lower than other assets. In some cases, cash returns after fees andchargesmay not keep upwith price inflation over the long term. Cashmay include ‘cash like’ assets such as corporate bondsecurities and derivative instruments. Such assets may suffer loss of value, leading to negative returns.

PropertyRisks of property investing include vacancies, locational factors, unprofitable property development activities, decliningproperty values and realised losses when properties are sold. Property investments may be held in a trust listed on a stockexchange, and in that case, will also attract some of the risk associated with share market volatility. Property developmentmay also be undertaken where the risks include delays in obtaining required approvals, construction risk, leasing risk andmarket risk.

Alternative assetsAlternative assets can be classified as growth or defensive assets and often present higher risk than traditional investments.Alternative assets can include:– private equity (an unlisted company/enterprise),– venture capital (associated with new business),– mezzanine finance (a form of unsecured debt finance)– private placement debt– infrastructure debt or equity, commodities and trading strategies.

Specific risk may include loss of capital, and assets becoming illiquid.

Australian sharesShare market investments have historically produced higher returns than cash or fixed interest investments over the longterm. However, the risk of capital loss exists, especially over the shorter term. You should be aware that past share marketinvestment performance is not an indication of future performance.Specific risks may include a slowdown in economic growth, individual companies reporting disappointing profits anddividends, andmanagement changes.Where you are invested in listed securities, the value of these securitiesmay decreaseas a result of these and other events.

International sharesThese are influenced by global economic trends and individual country and industry risk factors as well as specific risksrelating to individual companies. Unhedged international share investments also carry currency risk. Capital gains mayoccur when the Australian dollar depreciates relative to other currencies and capital losses may occur when the Australiandollar appreciates.

14

What are the risks?

There is no guarantee that themanaged portfolios asset allocation approachwill provide positive investment performanceat all stages of the investment cycle.

Asset allocation risk

Inflation risk is the chance that your money may not maintain its purchasing power with increases in the price of goodsand services (inflation). When prices go up, your investment also needs to go up by the rate of inflation for you to purchasethe same amount of goods and services. If your investment returns are less than the rate of inflation, then the real valueof your investment will decline.

Inflation risk

Substantial losses can be incurred if a counterparty fails to deliver on its contractual obligations or experiences financialdifficulties.

Counterparty risk

There is a risk that assets held in your Portfolio may become illiquid, meaning that they cannot be disposed of, or readilysoldwithout affecting the price of the asset. This is also a risk thatMyNorthManaged Portfolios could itself become illiquid,meaning thatwithdrawals canonlybemade inaccordancewith theCorporationsAct,meaningdelays in satisfyingwithdrawalrequests.

Liquidity risk

15

Investing and dealing with investments often has tax implications. These implications generally depend on your individualcircumstances, and you should seek professional tax advice based on your own situation.

When investing in the MyNorth Managed Portfolios, the assets in your Portfolio are beneficially owned. As a result, all income,dividends, distributions, capital gains and capital losses, and their tax consequences, accrue directly to the relevant investor. If youare investing in theMyNorthManaged Portfolios via a North Platform IDPS account, this is you.If you are investing in theMyNorthManaged Portfolios via a North Platform super account, this is the relevant superannuation fund.

After the end of a tax year you will be sent details by the North Platform of any assessable income, capital gains, tax credits andany other relevant items in relation to your investment in the MyNorth Managed Portfolios to include in your tax return.

Tax on IncomeThe assets you hold through the MyNorth Managed Portfolios derive income such as dividends, distributions and interest. Thus,each financial year you (or the superannuation fund) will need to assess and pay tax on any income generated by your investment.However, tax credits from your assets may be received and may be able to be applied to offset the tax liability.

Expenses incurred in deriving assessable incomemay be able to be treated as allowable deductions.

Transaction costs incurred on the acquisition or disposal of an asset within your Portfolio are included in the cost base of the assetand thereby affect the capital gains or loss arising on disposal.

Tax of capital gainsCapital gains tax may arise from the disposal of assets within your Portfolio. Disposal of assets may arise from:– a realignment or rebalance of the assets within a managed portfolio (initiated by the investment manager or by us)– a partial or full withdrawal request– a decision to invest in, or switch between, managed portfolios.

Goods and Services Tax (GST)Goods and services tax (GST) is payable for most fees charged, or payable to us. Wemay be entitled to claim reduced input taxcredit (RITC) refunds for part of the GST incurred in relation to the fees.

Where other government charges, such as stamp duty, apply we will charge these directly to your Platform cash account.

Non-residents withholding taxIf you are not an Australian resident, Australianwithholding taxmay be deducted from your distributions. The tax ratewill dependon the nature of the distributions and the country in which you reside.

Withholding taxes will also arise if foreign securities such as some Exchange Traded Funds (ETFs) are held within your Portfolio.These taxes are charged by foreign jurisdictions and are generally deducted on payment of distributions to investors.

16

Taxation

The constitution and your rightsMyNorth Managed Portfolios is a registered managedinvestment scheme. Rights and obligations of the responsibleentity andmembers are governed by a constitution, as well asprovisions of the Corporations Act. A copy of the constitutionis available free of charge upon request. The constitutionincludes provisions that deal with:– the nature of your interest in the MyNorth Managed

Portfolios and the assets in your Portfolio– your rights to withdraw from the MyNorth Managed

Portfolios– details of how interests in MyNorth Managed Portfolios

are held where the member is a Platform Operator– rights and obligations of the responsible entity, including:

– the right to accept or refuse applications for interests– the obligation to invest andmanage assets held as part

of your Portfolio (together with assets in otherportfolios)

– the right to charge fees andbe reimbursed for expenses– the right tobe indemnifiedout of the assets ofMyNorth

Managed Portfolios, and the limitation of theresponsible entity’s liability in connection with thescheme (including its liability to members)

– the right to change the constitution (subject tomemberapproval at a meeting unless the responsible entityreasonably considers that the changewill not adverselyaffect members' rights)

– the process under which the responsible entity mayretire

– the process on termination and winding up of MyNorthManaged Portfolios

– complaints procedures in connection with MyNorthManaged Portfolios.

Limitation of liability and right of indemnityThe constitution places limits on NMMT’s liability. NMMT asresponsible entity is not liable to members of MyNorthManaged Portfolios or North Platform investors except to theextent the Corporations Act imposes such liability.

Under the constitution, the responsible entity is entitled to beindemnified out of the assets of your Portfolio(s) and the assetsof MyNorth Managed Portfolios generally for any liability itincurs in properly performing or exercising any of its powersor duties in relation to the MyNorth Managed Portfolios, or inrelation to tax or ‘user pays’ expenses that the responsibleentity incurs in relation to the assets in your Portfolio.

You can ask the Platform Operator to withdraw your interestinMyNorthManagedPortfolios at any time, butwewill finaliseany outstanding transactions and receipt of incomebefore theclosure.

CustodyWe have appointed a custodian to hold the assets in yourPortfolio on our behalf. As a result of the structure of theMyNorthManagedPortfolios, youwill not have the same rightsin respect of theassetsheldaspart of your Portfolio as someonewho holds those assets directly. For example, shareholders incertain companies can receive shareholder discounts on certaingoods and services. However, because the shareholder will bethe custodian, you will not have access to this type of benefit.Other rights that fall into this category include the right toattend and vote at shareholder or unitholder meetings, theright to receive annual reports, newsletters, and othercommunications and access to shareholder or unitholderwebsites or call centres.

Voting rights and corporate actionsUnder the constitution, neither we nor an agent appointed byus is obliged to act in relation to anynotices ofmeeting relatingto assets held as part of your Portfolio, and the responsibleentity may act and vote on such matters in its absolutediscretion. The responsible entitywill generally not participatein corporate actions in relation to assets in your Portfolio.

Cooling off rightsYour Portfolio inMyNorthManagedPortfolios is held byNMMTor by NM Super on your behalf through the North Platforms.As a result you do not have any cooling off rights in relation toany investment in MyNorth Managed Portfolios.

Conflicts of interestPotential conflictsmayarisebetween the interests ofmembers,and those of the responsible entity and our related entities. Toensure ongoing compliance with our statutory obligations,AMP has a conflicts of interest policy and procedures to dealwith conflicts of interests thatmayarise throughmanagement,avoidance or disclosure of the conflict.

MyNorth Managed Portfolios may invest in various funds ofwhichwe, or related entities of ours, are the responsible entityand or manager. There are no limitations on the level ofinvestment in such funds. We also may appoint any othermember of the AMP group as investment managers or toprovide other services or perform functions in relation to theMyNorth Managed Portfolios.

We will enter into financial or other transactions with relatedentities in relation to the assets within your Portfolio. Theserelated entities may be entitled to earn fees in relation to anysuch appointment. Such transactionswith related entitieswillbe based on arm’s length commercial terms or as otherwisepermissible under the law.

17

Other important information

During the course of operating MyNorth Managed Portfolios,wemay face conflicts in respect of ourduties owed toMyNorthManaged Portfolios, the North Platforms, other schemes andour own interests. In particular, NMMTmay face conflictsbetween its role as amember ofMyNorthManaged Portfolios(as operator of North Platforms) and its role as responsibleentity of MyNorth Managed Portfolios. The roles andinvolvementof othermembers of theAMPgroupmayalsogiverise to conflicts of interest and duties. In dealingwith conflicts,wemust preference the interests of ourmembers over our owninterests and resolve the conflicts fairly.

AMP companies receive fees and charges in relation to theMyNorth Managed Portfolios as outlined in this PDS. AMPemployees and/or directors receive salaries and/or benefitsfrom the AMP group.

The underlying investments that are held in connection withamanagedportfoliomay include investment in theAdvantageSeries of managed funds. AMP Capital Funds ManagementLimited (AMPCapital) ABN15159557721, AFSL 426455, is theresponsible entity for this series ofmanaged funds. AMPCapitalis a member of the AMP group and receives fees in relation toacting in capacity of responsible entity. A current PDS for eachof the managed funds within this series can be obtained freeof charge online at amp.com.au/advantagefunds.

Privacy collection statementWewill usually collect personal information directly from you,your financial adviser or anyoneauthorisedby you. Thepersonalinformation we collect from you will be used to:– establish and manage your Portfolio– ensure compliance with all applicable regulatory or legal

requirements– perform any appropriate related functions– manage and resolve complaints made– undertake market research and analysis for product and

service improvement– provide you with information about financial services

provided by us, other members of the AMP group or byyour financial adviser through direct marketing. If you donot want this please contact us on 1300 423 079 or [email protected].

If you do not provide the required information, we will not beable to perform the activities above.

We are required or authorised to collect your personalinformation under various laws including those relating totaxation and Anti Money Laundering and Counter TerrorismFinancing laws.

We will only share your personal information:– withothermembersof theAMPgroupandexternal service

providers that we need to deal with for the purposesdescribed above

– as required by law or regulations with courts, tribunals orgovernment agencies

– with persons or third parties authorised by you, or ifrequired or permitted by law.

Some external service providers we need to deal with can belocated or host data outside Australia. A list of countrieswherethese providersmay be located can be obtained via our privacypolicy. We take all reasonable steps to ensure that any datashared with external service providers is shared securely toprotect your information.

Where you provide us with the personal information of otherindividuals, it is your responsibility to:a. inform the other individuals that you have provided their

personal information to us; andb. provide themwith a copy of this Privacy Collection

Statement.

Our privacy policy provides further information about howyoucan access or update your personal information or make acomplaint about a breach or potential breach of our privacyobligations. You can view our privacy policy online atamp.com.au/privacy or contact us on 1300 423 079 for a copy.

18

www.amp.com.au/advantagefunds

mailto:mailto:[email protected]

https://amp.com.au/privacy

If you have an enquiry or a complaintIf youneedanyadditional informationabout theadministrationof your Portfolio or your investment in MyNorth ManagedPortfolios, or if you have a concern or complaint, then pleasecontact:– your financial adviser– call the North Service Centre on 1800 667 841– email us at [email protected], or– write to us at:

The ManagerNorth Service CentreGPO Box 2915MELBOURNE VIC 3001

Our customer service officers are available to answer yourenquiries and respond to your complaints.Wewill try to resolveyour enquiry or complaint as quickly as possible. To help us dothis, pleasegiveus asmuch informationaspossible about yourcomplaint, including your name and account number.

If you have a concern or complaint about your adviser or thefinancial product advice you received, please approach theAustralian financial services licensee for whom your adviserwas acting.

We have established procedures to deal with any complaints.If you make a complaint, we will:– acknowledge its receipt and ensure an appropriate person

properly considers the complaint, and– respond to you as soon as we can.

If your complaint cannot be resolved at first contact, then wewill keep you advised at regular intervals of the status of yourcomplaint.

If we cannot resolve your complaint to your satisfaction or youhave not had a response fromuswithin 45 days, then youmayhave the right to lodge a complaint with the AustralianFinancial Complaints Authority (AFCA).

AFCA will provide fair and independent financial servicescomplaint resolution that is free to consumers and will acceptcustomer complaints.

Contact details for AFCA are:

Web: afca.org.au

Email: [email protected]

Telephone: 1800 931 678 (free call)

Mail: GPO Box 3, Melbourne VIC 3001

19

afca.org.au

mailto:[email protected]

DescriptionTerm

AMP Limited and its subsidiaries, including AMP Life and NMMTAMP group

NMMT's internal research team that manages the Research Choice Series of managed portfoliosAMP Research Team

A day on which banks are open for general banking business (Sydney and Melbourne), other than aSaturday, Sunday or public holiday

Business day

InvestSense Pty Ltd (ABN 31 601 876 528, CAR No: 1006839 of AFSL 408 800)InvestSense

Lonsec Investment Solutions Pty Ltd (ABN 95 608 837 583,CAR No: 1236821 of AFSL 421445)Lonsec

Australian registered managed investment schemesManaged Funds

A notional portfolio of assets managed in accordance with a particular investment strategyManaged portfolio

NMMT LimitedNMMT

These are assets thatmay formpart of your Portfolio, butwhich cannot be held directly in your NorthPlatform account.

non-Platform assets

northonline.com.auNorth, North Online

An IDPS or superannuation product listed on the inside front cover of this documentNorth Platform

This form is sent to you by your financial adviser when you are selecting and or changing yourinvestments. By signing the form you authorise your financial adviser to submit the transaction viaNorth Online on your behalf.

North Platform account details –authorisation form

Pendal Institutional Limited (ABN 17 126 390 627 AFSL 316455)Pendal

The cash account that forms part of your interest in the relevant North PlatformPlatform cash account

Quilla Consulting Pty Ltd (ABN 99 600 052 659, AFSL 511401) (Quilla Consulting)Quilla Consulting

The responsible entity in respect of MyNorth Managed PortfoliosResponsible entity

The fixed target percentage asset allocation for each asset class within the managed portfolioTarget asset allocations

Your interest and asset holdings in MyNorth Managed Portfolio. A separate interest and portfolio isheld in respect of each managed portfolio in relation to which you choose to invest in MyNorthManaged Portfolios

your Portfolio

Means you as the investor for whom an interest in MyNorth Managed Portfolios is held through aNorth Platform account

you, your

NMMT in its capacity as the responsible entity for MyNorth Managed Portfolioswe, our, us

Zenith Investment Partners Pty Limited (ABN 27 103 132 672, AFSL 226872)Zenith Investment Partners

20

Glossary of terms

This page has been left blank intentionally.

21


22

23

2806

005

/20

Contact us1800 667 [email protected] ManagerNorth Service CentreGPO Box 2915MELBOURNE VIC 3001

mail

Issue number ₆, ₂₀May ₂₀₂₀

MyNorth®ManagedPortfoliosProduct disclosure statement – Part ₂Managed portfolio menu

Part 2 – Managed portfolio menuARSN 624 544 136® Registered trademark of NMMT Limted ABN 42 058 835 573 AFS Licence 234653

About this product disclosure statementThis product disclosure statement (PDS) for the MyNorth Managed Portfolios is an important document and will help you understand how theMyNorth Managed Portfolios work.

This PDS is comprised of two parts:– Part 1 – General information – an overview of howMyNorth Managed Portfolios work.– Part 2 – Managed portfolio menu (this document) – information on the managed portfolios available to you, including fees and costs that

apply.

The latest versions of these documents are available free of charge from northonline.com.au or by contacting the North Service Centre on 1800667 841. Youwill also findmore information on themanaged portfolios in themanaged portfolio quarterly updates, which are not part of the PDS.The managed portfolio quarterly updates are available to download at northonline.com.au.

NMMT Limited (‘NMMT’,’we’, ‘us’, ‘our’) ABN 42 058 835 573, AFSL 234653, issues the interests in, and is the responsible entity for MyNorthManaged Portfolios. NMMT is also the issuer of this PDS. No other member of the AMP group is responsible for any statements or representationsmade in this PDS.

Zenith Investment Partners Pty Limited (ABN 27103 132 672, AFSL 226872) (Zenith Investment Partners) , Quilla Consulting Pty Ltd (ABN 99 600052 659, AFSL 511401) (Quilla Consulting) , Lonsec Investment Solutions Pty Ltd (ABN 95 608 837 583, CAR No: 1236821 of AFSL 421445) (Lonsec)and InvestSense Pty Ltd (ABN 31 601 876 528, CAR No: 1006839 of AFSL 408 800) (InvestSense), Pendal Institutional Limited (ABN 17 126 390 627AFSL 316455) (Pendal) have each given (and have not withdrawn) their consent to the inclusion in the PDS of all information referable to them(and the managed portfolios they have been engaged to manage) in the form and context in which it appears.

The information contained in this PDS is general information only and does not take into any account your individual objectives, financial situationor needs. Before acting on the information in this PDS, you should consider the appropriateness of this information having regard to your individualobjectives, financial situation or needs, and should consult a financial adviser prior to investing through the North Platform.

The Morningstar name is a registered mark of Morningstar, Inc.

The Morningstar benchmark is calculated based on the average performance from peers in the sameMultisector category.

Changes to the PDSInformation in this PDS that is not materially adversemay change from time to time. This information will be updated on northonline.com.au anda printed copy of any updated information will be provided to you free of charge on request by contacting the North Service Centre via email [email protected] or by calling us on 1800 667 841.

Before we increase the fees charged in connection with MyNorth Managed Portfolios, we will give you at least 30 days' prior written notice. Forany other material changes we will inform you as soon as practicable.

Communication to you regardingMyNorthManagedPortfolioswill be sent viaNorthOnlineand stored in your online filing cabinet, or communicatedvia the 'News & announcements' page.

northonline.com.au

northonline.com.au

northonline.com.au

northonline.com.au

Contents4MyNorth Managed Portfolios4Investing in managed portfolios4Explanation of investment concepts6InvestSense Diversified Portfolio 27InvestSense Diversified Portfolio 38InvestSense Diversified Portfolio 49InvestSense Diversified Portfolio 5

10Lonsec Retirement Managed Portfolio - Conservative11Lonsec Retirement Managed Portfolio - Balanced12Lonsec Retirement Managed Portfolio - Growth13MyNorth Sustainable Managed Portfolio15Quilla Income Generator Portfolio16Quilla Wealth Accumulator Portfolio17Quilla Wealth Accelerator Portfolio18Quilla Wealth Accelerator Plus Portfolio19Research Choice Conservative Income Portfolio20Research Choice Moderately Conservative Income Portfolio21Research Choice Balanced Income Portfolio22Research Choice Moderately Aggressive Income Portfolio23Research Choice Aggressive Income Portfolio24Research Choice Conservative Accumulation Portfolio25Research Choice Moderately Conservative Accumulation Portfolio26Research Choice Balanced Accumulation Portfolio27Research Choice Moderately Aggressive Accumulation Portfolio28Research Choice Aggressive Accumulation Portfolio29Research Choice Cautious Income Portfolio (objective based)30Research Choice Income Builder Portfolio (objective based)31Zenith Essentials 50% Growth Portfolio32Zenith Essentials 70% Growth Portfolio33Zenith Essentials 85% Growth Portfolio34Zenith Essentials 100% Growth Portfolio

35Fees and other costs36Additional explanation of fees and costs40Example of annual fees and costs for a balanced managed portfolio or other managed portfolio

Investing in managed portfoliosMyNorth Managed Portfolios provides your with access to a range of professionally managed portfolios, where you retain theultimate beneficial interest in the underlying assets. You can choose from a range of managed portfolios with varying investmentstrategies, objectives, growth and defensive asset exposure and underlying managed funds.

The managed portfolios may invest in the Advantage series of managed funds as well as other suitable funds in the market.

Explanation of investment conceptsThe following pages describe each of the managed portfolios currently available. Before reading about them, here are someinvestment concepts you should understand.

Diversified portfoliosA diversified managed portfolio invests across a range of asset classes and investment opportunities, which can include:– Australian and international shares– property and infrastructure– Australian and international fixed interest and– alternative assets.

Defensive assetsDefensive assets include investments such as cash and fixed interest. Defensive assets tend to carry lower levels of risk and thereforeare more likely to generate lower levels of return over the longer term.

Growth assetsGrowth assets include Australian and international shares, listed property and some alternative investments. Growth assets tendto carry higher levels of risk and therefore are more likely to generate higher levels of return over the longer term.

VolatilityVolatility in investingmeans the degree to which an asset's value rises and falls over time. Rapid and large upward and downwardmovements may occur over a relatively short period of time due to market uncertainties or sentiment.

Income based portfoliosThese managed portfolios are generally designed to provide higher recurring income and lower downside risk. If your Portfolio ismanaged in accordance with one of these managed portfolios, any income derived from the assets forming part of your Portfoliomay be paid to your Platform cash account, and will not be reinvested into your Portfolio (unless you elect to make a subsequentinvestment).

Accumulation (growth) based portfoliosThese managed portfolios are generally designed to seek growth and accumulate investment return. If your Portfolio is managedin accordance with one of these managed portfolios, any income derived from the assets forming part of your Portfolio may bereinvested in your Portfolio.

4

MyNorth Managed Portfolios

Sustainable investment based portfoliosThe MyNorth Sustainable Investment Managed Portfolio has been designed in accordance with the sustainable framework andprinciples developed byNMMT Ltd and theAMPResearch Team. In addition, the investmentmanagerwehave appointed in relationto this managed portfolio and the underlying assets that comprise this managed portfolio have been selected considering thisframework. Generally, the underlying assets forming part of this managed portfolio have been selected having regard to financialperformance, but may also take into account non-financial concerns relating to the investment and its exposure, such as workingconditions, human rights, social impacts, shareholders’ rights and the environment.

For information about the extent towhich labour standards or environmental, social or ethical considerations are taken into accountin the construction and management of the MyNorth Sustainable Managed Portfolio, refer to the description of the MyNorthSustainable Managed Portfolio within this menu (this document) and refer to the Sustainable Investment (SI) section.

Objective based portfoliosThesemanagedportfolios are designed to seek a certain outcomeor objective over a defined time frame. Thesemanagedportfoliosinvest across a range of asset classes and in varying amounts in response to market conditions.

Standard risk measureThe standard risk measure is based on industry guidance and aims to allow investors to compare managed portfolios that areexpected to deliver a similar number of negative annual returns over any 20 year period.

Each managed portfolio described in this document includes a standard risk measure (referred to as risk band and risk label). Thetable below sets out the risk bands/labels used for each managed portfolio based on the estimated number of negative annualreturns that a managed portfolio may experience over any 20 year period.

Estimated number of negative annual returns over any 20 year periodRisk labelRisk band

Less than 0.5Very low1

0.5 to less than 1Low2

1 to less than 2Low to medium3

2 to less than 3Medium4

3 to less than 4Medium to high5

4 to less than 6High6

6 or greaterVery high7

The standard risk measure is not a complete assessment of investment risk. For instance, it does not detail what the size of anegative return could be or if a positive return is less than an investor may need to meet their objectives. Further, it does not takeinto account the impact of fees and taxes on the likelihood of a negative return.

You should still ensure that you are comfortable with the risks and potential losses associated with any managed portfolio thatyou choose.

Indicative asset allocation rangesThe indicative asset allocation rangeprovides an indication of the intendedallocationbetweendifferent asset classes for amanagedportfolio. The actual asset allocation for a managed portfolio may deviate from this indicative range.

Further informationTo further understand any of these investment concepts, please speak to your financial adviser.

Availability of the managed portfoliosNot all of themanagedportfolios are available for all the products on theNorth Platform. Refer to themanagedportfolio description.

5

InvestSense Diversified Portfolio ₂NTH0049Code

InvestSenseInvestment manager

DiversifiedAsset class

MyNorth, NorthAvailability

The managed portfolio aims to achieve a return of CPI +2% p.a. by investing in a mix of asset classes.Investment objective

The managed portfolio is designed for investors seeking;Designed for– returns above inflation butwith a low tomedium tolerance for risk and thus arewilling to accept

lower returns for a lower level of risk;– a portfolio diversified across a range of different asset classes; and– actively managed asset allocation based on changes in market valuations.

5 yearsMinimum investment horizon

$500Minimum investment amount

The managed portfolio gains this exposure by investing in 10 – 20 managed funds.Underlying assets

0.25% p.a. of your Portfolio balanceInvestment management fee

0.43% p.a.Indirect costs are variable and may be more or less than the estimated amounts. Refer to indirectcosts below for further details.

Estimated indirect costs

CPI + 2%Benchmark

Target growth/defensive exposure Defensive70%

Growth30%

MaxMinAsset class

Growth assets

Indicative asset allocation ranges

400Australian shares

400International shares

400Listed property/infrastructure

300Alternatives

Defensive assets

1000Australian fixed income

1000International fixed income

1000Cash

Incomederived fromassets in your Portfoliowill be paid to your Platformcashaccount, andwill notbereinvested into your Portfolio (unless you and your financial adviser elect to make a subsequentinvestment via an automatic buy instruction on your Platform account).

Portfolio income

Risk bandRisk band and risk label

7654321

Risk label

Very highHighMedium tohighMediumLow to

mediumLowVery low

6

InvestSense Diversified Portfolio ₃NTH0050Code





The managed portfolio is designed for investors seeking;Designed for– modest returns above inflationbutwith amediumtolerance for risk and thus arewilling to accept

some volatility in order to achieve their long-term objective;– a portfolio diversified across a range of different asset classes; and– actively managed asset allocation based on changes in market valuations.







CPI + 3%Benchmark


Growth50%

MaxMinAsset class

Growth assets





300Alternatives

Defensive assets



800Cash


Portfolio income


7654321

Risk label


mediumLowVery low

7

InvestSense Diversified Portfolio ₄NTH0051Code





The managed portfolio is designed for investors seeking;Designed for– higher returns above inflation but with a medium to high tolerance for risk and thus are willing

to accept a medium to high degree of volatility in order to achieve their long-term objective;– a portfolio diversified across a range of different asset classes; and– actively managed asset allocation based on changes in market valuations.







CPI + 4%Benchmark


Growth70%

MaxMinAsset class

Growth assets





300Alternatives

Defensive assets



600Cash


Portfolio income


7654321

Risk label


mediumLowVery low

8

InvestSense Diversified Portfolio ₅NTH0052Code





The managed portfolio is designed for investors seeking;Designed for– higher returns above inflation but with a high tolerance for risk and thus willing to accept a high

degree of volatility in their portfolio in order to achieve their long-term objective;– a portfolio diversified across a range of different asset classes; and– actively managed asset allocation based on changes in market valuations.







CPI + 5%Benchmark


Growth85%

MaxMinAsset class

Growth assets





300Alternatives

Defensive assets



400Cash


Portfolio income


7654321

Risk label


mediumLowVery low

9

Lonsec Retirement Managed Portfolio - ConservativeNTH0046Code

LonsecInvestment manager



Themanaged portfolio aims to generate 4%p.a. incomewith some capital growth over the suggestedminimum investment timeframe.

Investment objective

The managed portfolio is designed for investors focused on income and some capital growth. Theportfolio is constructed to generate incomeandgrowth,while at the same timemanage for risks suchas market and inflation risk.

Designed for



Themanaged portfolio gains this exposure by investing in approximately 10-25 wholesale managedfunds.

Underlying assets




Morningstar Australian Multi-Sector Moderate TR AUDBenchmark


Growth40%

MaxMinAsset class

Growth assets





300Alternatives

Defensive assets



300Cash

Income derived from assets in your Portfolio will be paid to your Platform cash account, andwill notbe reinvested into your Portfolio (unless you and your financial adviser elect to make a subsequentinvestment via an automatic buy instruction on your Platform account).

Portfolio income


7654321

Risk label


mediumLowVery low

10

Lonsec Retirement Managed Portfolio - BalancedNTH0047Code




The managed portfolio aims to generate 4% p.a. income with moderate capital growth over thesuggested minimum investment timeframe.


The managed portfolio is designed for investors focused on income and a moderate level of capitalgrowth. Theportfolio is constructed togenerate incomeandgrowth,while at the same timemanagingfor risks such as market and inflation risk.

Designed for




Underlying assets




Morningstar Australian Multi-Sector Balanced TR AUDBenchmark


Growth60%

MaxMinAsset class

Growth assets





300Alternatives

Defensive assets



250Cash


Portfolio income


7654321

Risk label


mediumLowVery low

11

Lonsec Retirement Managed Portfolio - GrowthNTH0048Code




Themanaged portfolio aims to generate 4% p.a. incomewith high capital growth over the suggestedminimum investment timeframe.


Themanagedportfolio is designed for investors focusedon incomewith ahigh level of capital growth.The portfolio is constructed to generate income and growth, while at the same timemanaging forrisks such as market and inflation risk.

Designed for




Underlying assets




Morningstar Australian Multi-Sector Growth TR AUDBenchmark


Growth80%

MaxMinAsset class

Growth assets





300Alternatives

Defensive assets



200Cash


Portfolio income


7654321

Risk label


mediumLowVery low

12

MyNorth Sustainable Managed PortfolioNTH0053Code

Pendal Institutional LimitedInvestment manager

Multi-assetAsset class


The managed portfolio seeks to generate capital growth and income over the medium to long termthrough a diversified portfolio of growth and defensive assets.


Themanagedportfolio is designed for investors seekinga sustainable investment thatdelivers financialreturns andmakespositive sustainable change. Theportfolio seeks tomaintain ahigher capital growthand may experience higher variability of returns or loss in any given year.

Designed for


$500 (managed funds only)Minimum investment amount


Underlying assets




Morningstar Australian Multisector Growth Average CategoryBenchmark


Growth70%

MaxMinAsset class

Growth assets





220Alternatives

Defensive assets

290Australian fixed interest

240International fixed interest

220Cash

Income derived from assets in your Portfolio will be paid to your Platform cash account, andwill bereinvested into your Portfolio (unless you and your financial adviser elect to make a subsequentinvestment via an automatic buy instruction on your Platform account).

Portfolio income

13

The portfolio employs a responsible and sustainable framework for investing.Sustainable investmentThe underlying managed funds forming part of the managed portfolio have been selected on thelikelihood of meeting their investment objectives and how the relevant fund manager integratesenvironmental, social and governance (ESG) considerations into their decision making. We invest inunderlying managed funds that, based on the information provided by the relevant fund managers,avoid investing in companies with material involvement in activities we consider to have a negativeimpact on the environment or the community.The assessment is centred around the following sustainability principles:

Fund Selection FocusPrinciple

We select underlying funds that have investment processesthat consider a company’s impact on the environment.Considerationsmay include the company’s energy usage andefficiency, pollution, contribution to climate change throughemissions, and carbon footprint.

Transitioning to a low carboneconomy.

We select underlying funds that seek to avoid exposure toinvestments in these activities and industries. The fundsmayhave revenue thresholds of up to 10% in these activities.

Avoid material investments inthermal coal, tobacco, gambling,pornography and controversialweapons.

We select underlying funds in which the relevant fundmanagers have expressed a commitment to influence theactivity orbehaviourof companieswith respect toESGmatters

Encouragepositive sustainable socialand environmental outcomes for thecommunity.

through ongoing constructive engagement and proxy voting.They may also consider human rights, workplace health andsafety, diversity, and modern slavery.

Assets are considered on a case-by-case basis, and we do not apply a particular weighting system ormetricswhen taking into account labour standards or environmental, social or ethical considerations.Other considerations in selecting an underlying fund include whether the relevant fund manager isa signatory to the United Nations Principles for Responsible Investment (UNIPRI) or is certified byResponsible Investment Association Australasia (RIAA).Currently, we do not take ESG considerations into account in selecting Cash assets.The underlying funds are reviewed on an on-going basis, however on an annual basis we reconfirmwhether the underlying fund continues to be consistent with our sustainability principles. If we formthat view (basedon informationprovidedby the relevantunderlying fundmanager) that theunderlyingfund no longer meets our selection criteria from either a sustainable or investment perspective, wewill generally take steps to remove and replace that underlying investment as soon as practicable.


7654321

Risk label


mediumLowVery low

14

Quilla Income Generator PortfolioNTH0020Code

Quilla ConsultingInvestment manager


MyNorth, North, iAccess, SummitAvailability

Aims to deliver a predominantly income-based investment return of 2.5% p.a. above inflation overrolling 3-year periods.


Themanagedportfolio is designed for investors seeking incomewith somepotential for capital growth.The portfolio is actively managed with a greater focus on wealth preservation and achievable returnobjectives.

Designed for




Underlying assets




Consumer Price Index TrimmedMean (CPI) + 2.5%Benchmark


Growth50%

MaxMinAsset class

Growth assets





300Alternatives

Defensive assets



1000Cash


Portfolio income


7654321

Risk label


mediumLowVery low

15

Quilla Wealth Accumulator PortfolioNTH0021Code




Aims to deliver an investment return of 3.5% p.a. above inflation over rolling 5-year periods.Investment objective

The managed portfolio is designed for investors seeking above average growth. The portfolio isactively managed with a greater focus on wealth preservation and achievable return objectives.

Designed for




Underlying assets






Growth70%

MaxMinAsset class

Growth assets





300Alternatives

Defensive assets



1000Cash


Portfolio income


7654321

Risk label


mediumLowVery low

16

Quilla Wealth Accelerator PortfolioNTH0022Code





Themanagedportfolio is designed for investors seeking above averagegrowth. Theportfolio is activelymanaged with a greater focus on wealth preservation and achievable return objectives.

Designed for




Underlying assets






Growth85%

MaxMinAsset class

Growth assets





500Alternatives

Defensive assets



1000Cash


Portfolio income


7654321

Risk label


mediumLowVery low

17

Quilla Wealth Accelerator Plus PortfolioNTH0023Code





The managed portfolio is designed for investors seeking higher returns, derived predominately fromincome. The portfolio is activelymanagedwith a greater focus onwealth preservation and achievablereturn objectives.

Designed for




Underlying assets






Growth90%

MaxMinAsset class

Growth assets





500Alternatives

Defensive assets



1000Cash


Portfolio income


7654321

Risk label


mediumLowVery low

18

Research Choice Conservative Income PortfolioNTH0001Code

AMP Research teamInvestment manager



Themanagedportfolio aims to provide stable return andhigher income throughadiversified portfolioof primarily defensive assets.


Themanaged portfolio is designed for investors seeking stable, additional income and low variabilityof returns or loss in any given year.

Designed for




Underlying assets




Morningstar Australian Multisector Moderate Average CategoryBenchmark


Growth30%

MaxMinAsset class

Growth assets





190Alternatives

Defensive assets



4212Cash


Portfolio income


7654321

Risk label


mediumLowVery low

19

Research Choice Moderately Conservative Income PortfolioNTH0002Code




The managed portfolio aims to provide higher income and reduced volatility over the medium termthrough a diversified portfolio of primarily defensive assets and some growth assets.


The managed portfolio is designed for investors seeking additional income and lower variability ofreturns or loss in any given year.

Designed for




Underlying assets




Morningstar Australian Multisector Balanced Average CategoryBenchmark


Growth50%

MaxMinAsset class

Growth assets





210Alternatives

Defensive assets



270Cash


Portfolio income


7654321

Risk label


mediumLowVery low

20

Research Choice Balanced Income PortfolioNTH0003Code




Themanaged portfolio aims to provide higher income and reduced volatility over themedium to longterm through a diversified portfolio of growth and defensive assets.


Themanaged portfolio is designed for investors seeking higher income and prepared to accept highervariability of returns or loss in any given year.

Designed for




Underlying assets






Growth70%

MaxMinAsset class

Growth assets





220Alternatives

Defensive assets



220Cash


Portfolio income


7654321

Risk label


mediumLowVery low

21

Research Choice Moderately Aggressive Income PortfolioNTH0004Code




Themanaged portfolio aims to provide higher income and reduced volatility over themedium to longterm through a diversified portfolio of growth assets and some defensive assets.


Themanaged portfolio is designed for investors seeking higher income and prepared to accept highervariability of returns or loss in any given year.

Designed for




Underlying assets




Morningstar Australian Multisector Aggressive Average CategoryBenchmark


Growth85%

MaxMinAsset class

Growth assets





210Alternatives

Defensive assets



210Cash


Portfolio income


7654321

Risk label


mediumLowVery low

22

Research Choice Aggressive Income PortfolioNTH0005Code




The managed portfolio aims to provide higher income and reduced volatility over the long termthrough a diversified portfolio of primarily growth assets.


The managed portfolio is designed for investors seeking higher income and prepared to accept highvariability of returns or loss in any given year.

Designed for




Underlying assets





Target growth/defensive exposure Growth100%

MaxMinAsset class

Growth assets





210Alternatives

Defensive assets



150Cash


Portfolio income


7654321

Risk label


mediumLowVery low

23

Research Choice Conservative Accumulation PortfolioNTH0006Code




The managed portfolio aims to provide stable return through a diversified portfolio of primarilydefensive assets.


The managed portfolio is designed for investors seeking low capital growth and low variability ofreturns or loss in any given year.

Designed for




Underlying assets




Morningstar Australian Multisector Moderate Average CategoryBenchmark


Growth30%

MaxMinAsset class

Growth assets





190Alternatives

Defensive assets



4212Cash

Income derived from assets in your Portfolio will be paid to your Platform cash account, andwillsubsequently be reinvested into your Portfolio, as per the strategy of the managed portfolio, and inaccordance with the standing directions that you give to your Platform Operator.

Portfolio income


7654321

Risk label


mediumLowVery low

24

Research Choice Moderately Conservative Accumulation PortfolioNTH0007Code




Themanaged portfolio aims to providemoderate returns over themedium term through a diversifiedportfolio of primarily defensive assets and some growth assets.


Themanagedportfolio is designed for investors seekingmoderate capital growthand lower variabilityof returns or loss in any given year.

Designed for




Underlying assets




Morningstar Australian Multisector Balanced Average CategoryBenchmark


Growth50%

MaxMinAsset class

Growth assets





210Alternatives

Defensive assets



270Cash


Portfolio income


7654321

Risk label


mediumLowVery low

25

Research Choice Balanced Accumulation PortfolioNTH0008Code




The managed portfolio aims to provide moderate to high returns over the medium to long termthrough a diversified portfolio of growth and defensive assets.


Themanaged portfolio is designed for investors seeking higher capital growth andprepared to accepthigher variability of returns or loss in any given year.

Designed for




Underlying assets






Growth70%

MaxMinAsset class

Growth assets





220Alternatives

Defensive assets



220Cash


Portfolio income


7654321

Risk label


mediumLowVery low

26

Research Choice Moderately Aggressive Accumulation PortfolioNTH0009Code




Themanagedportfolio aims toprovidemoderatelyhigh returnsover the long termthroughadiversifiedportfolio of primarily growth assets and some defensive assets.


Themanaged portfolio is designed for investors seeking higher capital growth andprepared to accepthigher variability of returns or loss in any given year.

Designed for




Underlying assets






Growth85%

MaxMinAsset class

Growth assets





210Alternatives

Defensive assets



210Cash


Portfolio income


7654321

Risk label


mediumLowVery low

27

Research Choice Aggressive Accumulation PortfolioNTH0010Code




The managed portfolio aims to provide high long term returns through a diversified portfolio ofprimarily growth assets.


The managed portfolio is designed for investors seeking high capital growth and prepared to accepthigh variability of returns or loss in any given year.

Designed for


$ 500Minimum investment amount


Underlying assets






MaxMinAsset class

Growth assets





210Alternatives

Defensive assets



150Cash


Portfolio income


7654321

Risk label


mediumLowVery low

28

Research Choice Cautious Income Portfolio (objective based)NTH0011Code




Themanaged portfolio aims to provide regular and higher income,modest capital growth and strongfocus towards capital preservation.


The managed portfolio is designed for low to zero tax payers seeking income with reduced volatilityand capital preservation.

Designed for




Underlying assets




Consumer Price Index (CPI) + 1.0%Benchmark

The asset allocation of these managed portfolios may change periodically to meet risk targets, as aresult there is no set target for the growth and defensive exposure.

Target growth/defensive exposure

MaxMinAsset class

Growth assets





210Alternatives

Defensive assets



270Cash


Portfolio income


7654321

Risk label


mediumLowVery low

29

Research Choice Income Builder Portfolio (objective based)NTH0012Code




Themanaged portfolio aims to provide higher current and future income,modest capital growth andgreater focus towards capital preservation.


Themanaged portfolio is designed for low to zero tax payers seeking incomewith lower volatility andsome capital gain.

Designed for




Underlying assets




Consumer Price Index (CPI) + 2.0%Benchmark

The asset allocation of these managed portfolios may change periodically to meet risk targets, as aresult there is no set target for the growth and defensive exposure.

Target growth/defensive exposure

MaxMinAsset class

Growth assets





220Alternatives

Defensive assets



220Cash


Portfolio income


7654321

Risk label


mediumLowVery low

30

Zenith Essentials ₅₀% Growth PortfolioNTH0024Code

Zenith Investment PartnersInvestment manager



Themanaged portfolio aims to provide a high level of income, amoderate level of capital growth anda moderate level of capital volatility.


This managed portfolio is designed for a moderate risk profile investor.Designed for




Underlying assets




Morningstar Australian Multi-Sector Balanced TR AUDBenchmark


Growth50%

MaxMinAsset class

Growth assets





400Alternatives

Defensive assets



500Cash


Portfolio income


7654321

Risk label


mediumLowVery low

31

Zenith Essentials ₇₀% Growth PortfolioNTH0025Code




Themanaged portfolio aims to provide a high level of income, amoderate level of capital growth anda moderately high level of capital volatility.


This managed portfolio is designed for a high risk profile investor.Designed for




Underlying assets




Morningstar Australian Multi-Sector Growth TR AUDBenchmark


Growth70%

MaxMinAsset class

Growth assets





400Alternatives

Defensive assets



500Cash


Portfolio income


7654321

Risk label


mediumLowVery low

32

Zenith Essentials ₈₅% Growth PortfolioNTH0026Code




The managed portfolio aims to provide a high level of income, a high level of capital growth and ahigh level of capital volatility.


This managed portfolio is designed for a high risk profile investor.Designed for




Underlying assets




Morningstar Australian Multi-Sector Aggressive TR AUDBenchmark


Growth85%

MaxMinAsset class

Growth assets





500Alternatives

Defensive assets



500Cash


Portfolio income


7654321

Risk label


mediumLowVery low

33

Zenith Essentials ₁₀₀% Growth PortfolioNTH0027Code




The managed portfolio aims to provide a high level of income, a high level of capital growth and avery high level of capital volatility.


This managed portfolio is designed for a very high risk profile investor.Designed for




Underlying assets




Morningstar Australian Multi-Sector Aggressive TR AUDBenchmark


MaxMinAsset class

Growth assets





500Alternatives

Defensive assets



500Cash


Portfolio income


7654321

Risk label


mediumLowVery low

34

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 to20% 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 servicesjustify higher fees and costs.

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

To find out more

If you would like to find out more, or see the impact of fees based on your own circumstances, the Australian Securities andInvestments Commission (ASIC)website (moneysmart.gov.au) has amanaged funds fee calculator tohelp you checkoutdifferentfee options.

This document shows fees and other costs that youmay be charged. These fees and costsmay be deducted from yourmoney, fromthe returns on your investment or from the assets of the managed investment scheme as a whole.

Taxes are set out in the general information document.

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

Fees and costs for particular managed portfolios are set out on pages 34-36.

MyNorth Managed Portfolios

How and when paidAmountType of fee or cost

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

Not applicableNilEstablishment feeThe fee to open your investment

Not applicableNilContribution feeThe fee on each amount contributed to yourinvestment

Not applicableNilWithdrawal feeThe fee on each amount you take out of yourinvestment

Not applicableNilExit feeThe fee to close your investment

Management costs

The investment management fee(i) is calculated bymultiplying your opening Portfolio balance on the dayof the fee deduction by the applicable fee rate and isdeducted from your Platform cash account each monthin arrears on your monthly account anniversary.

0.10% p.a. to 0.25% p.a. of yourPortfolio balance

The fees and costs formanaging your investmentThe amount you pay for specific managedportfolios is set out on pages 19-21.

Estimated indirect costs(i)are deducted from theunderlying assets held by themanaged portfolio as andwhen incurred. They are variable and may be more, orless, than the amounts shown.

Plus estimated 0.59% p.a. to 1.30%p.a. of your Portfolio balance

Service fees

Not applicableNil. However, underlying buy/sellcosts(ii)may apply.

Switching feeThe fee for changing investment options

Refer to relevant section under the additional explanation of fees and costs for more information.(i)Refer to transactional and operational costs under the additional explanation of fees and costs for more information.(ii)

35

Fees and other costs

moneysmart.gov.au

Additional explanation of fees and costsManaged portfolio management costsThe components of management costs applicable to each managed portfolio are shown in the table below and apply based onthe balance held in the managed portfolio.

Totalestimatedmanagementcosts % p.a.

Estimated indirect costs(i)

Investmentmanagementfee % p.a.

Managed portfolio name Total indirectcosts % p.a.

Estimatedother indirectcosts % p.a.

Estimatedperformancebased fees %p.a.(ii)

0.680.430.410.020.25InvestSense Diversified Portfolio 2




0.910.660.660.000.25Lonsec Retirement Managed Portfolio - Conservative

1.010.760.760.000.25Lonsec Retirement Managed Portfolio - Balanced

1.090.840.840.000.25Lonsec Retirement Managed Portfolio - Growth

0.890.690.690.000.20MyNorth Sustainable Managed Portfolio

0.910.660.640.020.25Quilla Income Generator Portfolio

0.970.720.690.030.25Quilla Wealth Accumulator Portfolio

0.980.730.700.030.25Quilla Wealth Accelerator Portfolio

1.060.810.780.030.25Quilla Wealth Accelerator Plus Portfolio

0.590.490.480.010.10Research Choice Conservative Income Portfolio

0.670.570.560.010.10Research Choice Moderately Conservative Income Portfolio

0.770.670.650.020.10Research Choice Balanced Income Portfolio

0.840.740.710.030.10Research Choice Moderately Aggressive Income Portfolio

0.920.820.790.030.10Research Choice Aggressive Income Portfolio

0.650.550.510.040.10Research Choice Conservative Accumulation Portfolio

0.770.670.610.060.10Research Choice Moderately Conservative AccumulationPortfolio

0.890.790.700.090.10Research Choice Balanced Accumulation Portfolio

0.980.880.770.110.10Research Choice Moderately Aggressive AccumulationPortfolio

1.090.990.860.130.10Research Choice Aggressive Accumulation Portfolio

0.630.530.520.010.10Research Choice Cautious Income Portfolio (objective based)

0.730.630.610.020.10Research Choice Income Builder Portfolio (objective based)

1.000.850.580.270.15Zenith Essentials 50% Growth Portfolio




Indirect costs are variable and actual indirect costs may be more or less than the estimated amounts shown. Refer to indirect costs below for further details.(i)These amounts are not an indication of future performance and should not be relied upon as such. If the performance based fee of a particular managed fund isbetter than the set benchmark the actual performance based fee could be much higher. Refer to performance based fees below for further details.

(ii)

36

Investment management feeThe investment management fee represents the base fee component payable for professional investment management of themanaged portfolios.

It is calculated by multiplying your opening Portfolio balance on the day of the fee deduction by the applicable fee rate and isdeducted from your Platform cash account each month in arrears on your monthly account anniversary.

However, if you withdraw all of your money from one or more managed portfolios before your monthly account anniversary, wewill use the managed portfolio balance on the previous day to the withdrawal and prorate the applicable fee rate for the numberof days since your last monthly account anniversary to the date of withdrawal.

In addition, we are entitled to be reimbursed for any authorised expenses incurred in the management and administration ofmanagedportfolios. Currently, all operational and administration expenses, such as custodian, accounting, audit and legal expenses(but excluding transaction costs), are paid out of the investment management fee and are not charged to you separately.

If any unexpected or extraordinary expenses are incurred, we may choose to recover these costs in addition to the investmentmanagement fee. Any such amounts will be deducted from your Platform cash account under your standing instructions.

Indirect costsThe underlying assets in which the managed portfolios invest will generally incur indirect costs including, but not limited to, thefollowing types of underlying asset fees and costs:– management fees– performance based fees (PBFs)– recoverable expenses such as audit and legal fees, tax and accounting services, custody, regulatory compliance, administration

and registry services and any similar expenses– costs of investing in over-the-counter (OTC) derivatives used to gain economic exposure to assets.

Indirect costs are incorporated into the managed portfolio's asset value. They are not fixed, will vary from time to time and willdepend on the type and mix of underlying assets held by the managed portfolio, as well as the trading of those assets, and theactual costs incurred.

We have assumed that the indirect costs of the underlying assets will not materially change from the last financial year, and havebased our estimate of indirect costs on those incurred for the last financial year.

Actual costs may be more than those estimated due to factors such as better than expected investment performance, abnormalexpenses arising (for example from litigation or a change in the law), or from changes to an investment strategy.

Performance based fees

NMMT does not currently charge a performance fee, however PBFs are paid to certain underlying investmentmanagers, includingAMP Capital, as a reward for exceeding specific investment performance targets. PBFs are generally expressed as a percentage ofthe out-performance over the relevant benchmark index. Any PBFs charged are deducted from the underlying assets of the relevantmanaged portfolio. They are in addition to any investment management fees we charge and will increase management costs.

Each PBF is calculated slightly differently but they all have the following common elements:– A PBF is only payable to an investment manager if they achieve a target level of return– Each time a PBF is paid, the pool of assets must reach the previous highest value plus the appropriate performance hurdle

before a new PBF is payable– PBFs are calculated and accrued regularly (at least monthly) and incorporated into the calculation of unit prices. The

accrued PBF can rise or fall in line with delivered performance.– PBFs are only payable at the end of each financial year and in certain circumstances payments may be delayed.

We have assumed that PBFs of the underlying assets will not materially change from the last financial year, and have based ourestimate of PBFs on those incurred for the last financial year.

Actual PBFs may be more than those estimated due to factors such as better than expected investment performance.

37

Managed portfolio transactional, operational and borrowing costsIn addition to the fees and other costs set out on page 34, managed portfolios may also incur transactional, operational andborrowing costswhendealingwith theunderlying assets of themanagedportfolio, including any assets of anyunderlyingmanagedfunds in which the managed portfolio invests. Estimated transactional and operational costs, and estimated borrowing costs,applicable to eachmanaged portfolio are shown in the table below. Unless otherwise stated they apply based on the balance heldin the managed portfolio.

Estimatedborrowingcosts %p.a.(iii)

Estimated transactional and operational costs

Managed portfolio nameBuy/sell costs %(ii)

Underlying transactionaland operational costs %p.a.(i)

0.000.05/0.210.08InvestSense Diversified Portfolio 2




0.000.11/0.330.09Lonsec Retirement Managed Portfolio - Conservative

0.000.14/0.310.07Lonsec Retirement Managed Portfolio - Balanced

0.000.18/0.290.06Lonsec Retirement Managed Portfolio - Growth

0.000.15/0.170.10MyNorth Sustainable Managed Portfolio

0.000.11/0.190.07Quilla Income Generator Portfolio

0.000.12/0.170.07Quilla Wealth Accumulator Portfolio

0.000.14/0.140.07Quilla Wealth Accelerator Portfolio

0.000.17/0.170.07Quilla Wealth Accelerator Plus Portfolio

0.000.19/0.180.08Research Choice Conservative Income Portfolio

0.000.22/0.200.10Research Choice Moderately Conservative Income Portfolio

0.000.22/0.200.11Research Choice Balanced Income Portfolio

0.000.20/0.190.10Research Choice Moderately Aggressive Income Portfolio

0.000.21/0.200.12Research Choice Aggressive Income Portfolio

0.000.23/0.180.13Research Choice Conservative Accumulation Portfolio

0.000.25/0.200.18Research Choice Moderately Conservative Accumulation Portfolio

0.000.23/0.200.21Research Choice Balanced Accumulation Portfolio

0.000.20/0.190.22Research Choice Moderately Aggressive Accumulation Portfolio

0.000.20/0.200.26Research Choice Aggressive Accumulation Portfolio

0.000.21/0.190.09Research Choice Cautious Income Portfolio (objective based)

0.000.22/0.200.10Research Choice Income Builder Portfolio (objective based)

0.000.11/0.310.14Zenith Essentials 50% Growth Portfolio




Underlying transactional and operational costs are in addition to management costs. They are variable and actual transactional and operational costs may bemore or less than the amounts shown. Refer to transactional and operational costs below for further details.

(i)

Buy/sell costs are estimated based on the buy/sell spreads of the underlying managed funds in which the managed portfolio invests. They apply to the amountof any new investments (buy costs) or withdrawals (sell costs) including rebalancing your portfolio. Buy/sell costs are variable and the actual buy/sell costs maybe more or less than the amounts shown. Refer to buy/sell costs below for further details.

(ii)

Borrowing costs are in addition to management costs. They are variable and actual borrowing costs may be more or less than the amounts shown. Refer toborrowing costs below for further details.

(iii)

38

Transactional and operational costsManaged portfolios may incur transactional and operational costs when dealing with the underlying assets of the managedportfolio, including any assets of any underlying managed funds in which the managed portfolio invests.

Transactional and operational costs are an additional cost to you andmay include brokerage, settlement and clearing costs, stampduty, the buy and sell spreads of any underlyingmanaged funds and the costs of (or transactional and operational costs associatedwith) derivatives. These costs are dependent on the number and amount of assets bought and sold andwill differ according to thetype of assets held by the managed portfolio or the purpose for which any OTC derivatives held in any underlying managed fundsare acquired.

Transactional and operational costs may also include property operating costs incurred in any underlying managed funds thathave exposure to real estate assets or hold investments vehicles that have exposure to real estate assets. Property operating costsinclude rates, utilities, repairs and maintenance costs that have not been recovered from tenants.

We have assumed that the transactional and operational costs of the underlying assets will not materially change from the lastfinancial year, and have based our estimate of transactional and operational costs on those incurred for the last financial year.

Actual transactional and operational costs may be more than those estimated due to factors such as changes to an investmentstrategy or the purchase or sale of a real property or an infrastructure asset.

Buy/sell costs

We do not directly charge a buy/sell spread on managed portfolios, however most managed funds held by managed portfolioshave buy and sell spreads. This is the difference between the unit price used to value any new investments (buy unit price) and theunit price used to value any withdrawals (sell unit price) and is the fund manager’s estimate of the costs of buying and sellingassets of the fund due to investments and withdrawals from the fund.– The buy spread is added to the unit price of the underlying managed fund to arrive at the buy price– The sell spread is deducted from the unit price of the underlying managed fund to arrive at the sell price

When you invest in amanaged portfolio, includingwhenwe rebalance your Portfolio, we purchase equivalentmanaged fund unitsat the buy price and you will incur buy costs based on the the underlying managed funds' buy spreads.

When you withdrawmoney from amanaged portfolio, including when we rebalance your Portfolio, we sell equivalent managedfund units at the sell price and you will incur sell costs based on the the underlying managed funds' sell spreads.

Wehave estimatedbuy/sell costs basedon the indicative asset allocation to theunderlyingmanaged funds and the actualmanagedfund buy and sell spreads that currently apply, and we have assumed that these will apply in the future.

Actual buy/sell costs may be more than those estimated due to factors such as a change to the underlying managed funds buyand sell spreads, or a variance between actual and indicative asset allocations.

Buy/sell costs are an additional cost to you.

Borrowing costsBorrowing costs are incurred in certain underlying managed funds in which managed portfolios may invest.

They are the costs associated with borrowing money or securities, such as interest, establishment fees, government charges andstock borrowing fees.

We have assumed that the borrowing costs of the underlying assets will not materially change from the last financial year, andhave based our estimate of borrowing costs on those incurred for the last financial year.

Actual borrowing costsmaybemore than thoseestimateddue to factors suchas changes toan investment strategyor thepurchaseor sale of a real property or an infrastructure asset.

Differential pricingWemay negotiate different fees with ‘wholesale clients’ (including ‘professional investors’) as defined in the Corporations Act.

Goods and Services Tax (GST)All fees and costs are inclusive of GST and, where applicable, less reduced input tax credits.

Taxation matters are set out in the general information document.

39

Changes to fees and costsWemay change fees and reimburse ourselves for any expenses.

If we increase a fee that we charge, we will give you at least 30 days' prior written notice.

Maximum feesThe MyNorth Managed Portfolio constitution provides for us to receive the following maximum fees :– Application fee – up to 5.00% of the applicationmoney paid in respect of each application for an interest inMyNorthManaged

Portfolios that we accept. We currently do not charge this fee.– Investment management fee – up to 3.00% p.a. of the aggregate value of the assets in your managed portfolio calculated and

accrued monthly on the basis of the highest aggregate value of those assets at any time during the relevant month.– Investment management performance fee - up to 5.00% p.a. of the aggregate value of the assets in your managed portfolio.

We currently do not charge this fee.– Transaction fee–up to $200or 2.00%of the considerationpayable or receivable (whichever is greater) in respect of anacquisition

or disposal involving assets in your managed portfolio. We currently do not charge this fee.

All maximum fees stated above are inclusive of GST, less any reduced input tax credits, where applicable.

Example of annual fees and costs for a balanced managed portfolio or other managedportfolioThis table gives anexample of how the fees and costs in abalancedmanagedportfolio or othermanagedportfolio for thismanagedinvestment product can affect your investment over a one year period. You should use this table to compare this product withother managed investment products.

Balanceof $50,000with a contributionof $5,000during the yearExample -ResearchChoiceBalancedAccumulationPortfolio

For every additional $5,000 you put in, you will be charged $0.NilContribution fees

And, for every $50,000 you have in the Research Choice BalancedAccumulation Portfolio you will be charged $445 each year.

0.89% p.a.PlusManagement costs(i)

If you had an investment of $50,000 at the beginning of the yearand you put in an additional $5,000 during that year, you wouldbe charged $445.

Equals Cost of the Research Choice BalancedAccumulation Portfolio(ii)

What it costs you will depend on the managed portfolio youchoose and the fees you negotiate.

Management costs include an investment management fee of 0.10% p.a. plus estimated indirect costs of the underlying assets of 0.89% p.a. The amount doesnot include management costs on the $5,000 contribution which would equate to $44.50 if invested at the beginning of the year.

(i)

Additional costs may apply.(ii)

40


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Contact us1800 667 [email protected] Service CentreGPO Box 2915MELBOURNE VIC 3001

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MyNorth®Managed Portfolios - North Online€¦ · Issue number 5, 20 May ₂₀₂₀ MyNorth®Managed Portfolios Productdisclosurestatement–Part₁ Generalinformation Part1Generalinformation