Thank you for requesting this Product Disclosure Statement from Funds
Focus.
Fee Reduction
As highlighted within our offers page, whilst most managed funds typically pay
an entry fee of up to 5%. Applications lodged through Wealth Focus will
receive a rebate of up to 5% directly into your fund, providing you with more
money in your fund.
How to Apply
Please have a read through the PDS and if you would like to invest the
application pages can generally be found towards the back of the document.
You will only need to send the application section back with a cheque payable
direct to the investment company (not ourselves). You should take note of any
minimum investment amounts that may apply.
Then mail the completed application directly to us.
We will then check to ensure your form is completed correctly before
forwarding your document on to the investment provider on your behalf.
Wealth Focus Pty Ltd
Reply Paid 760
Manly
NSW 1655
Please note that we are unable to track applications mailed directly to the
product provider and therefore cannot guarantee that your discounts have
been applied in these instances.
Should you wish to take advantage of our free annual valuation and tax report
for all your investments you should complete our broker nomination form for
The Wealth Focus Investment Service.
Regards
Sulieman Ravell
Managing Director
Wealth Focus Pty Ltd
ABN 87 123 556 730
56 The Corso, Manly, NSW 2095
Postal Address: Reply Paid 760, Manly, NSW 1655
Requirements for verifying your identity under the new Anti Money Laundering
(AML)/Counter Terrorism Financing (CTF) Act
The new AML/CTF Act cameinto effect on the 12th December 2007. All financial
planning and fund management companies are now required to collect, verify and
store specific customer information before arranging certain services such as managed
investments for a client. It is designed to prevent, detect and protect Australian
business from money laundering and the financing of terrorist activities.
We are currently in a transition phase and as such whilst most companies will not
accept any new business without a person identity being verified, there are a number
that still do not. To avoid confusion, we request that all new applications are sent with
‘certified documentation’.
We’ve found that the easiest way to provide the required documentation is to
have a copy of your driving licence or passport certified by Australia Post or a
Justice of the Peace (please see following page for a full list of individuals that
can certify documentation).
Once this has been completed, under the current requirements we will not
require you to send identification again.
What you need to do
You will need to enclose a certified piece of photographic evidence or one piece of
primary non-photographic evidence and one piece of secondary evidence (please refer
to the Identification Form for document requirements), with your application form
and post to us at the following address
Wealth Focus Pty Ltd
Reply Paid 760
Manly
NSW 1655
Please do not send us original driving licences or passports as these can very easily
get lost in the post. Copies of documents can be certified by an authorised individual,
they will need to sight and verify that the copy is a ‘certified true copy’, sign, date,
print their name and list their qualification.
ANTI-MONEY LAUNDERING REQUIREMENT FOR NEW APPLICATIONS
IDENTIFICATION FORM
INDIVIDUALS & SOLE TRADERS
GUIDE TO COMPLETING THIS FORM (MUST BE INCLUDED WITH ALL NEW APPLICQATIONS)
o Complete one form for each applicant. Complete all applicable sections of this form in BLOCK LETTERS.
o Please contact us on 1300 55 98 69 if you have any queries.
o If you wish to apply in the name of a super fund, trust or company, please contact us for an alternative identification
form.
SECTION 1A: PERSONAL DETAILS
Date of Birth dd/mm/yyyy
Surname
Full Given Name(s)
Residential Address (PO Box is NOT acceptable)
Street
Suburb
State
Postcode
Country
COMPLETE THIS PART IF INDIVIDUAL IS A SOLE TRADER
Full Business Name (if any)
ABN (if any)
Principal Place of Business (if any) (PO Box is NOT acceptable)
Street
Suburb
State
Postcode
Country
Who can verify customer identity documents?
Please find below a list of all the Approved Individuals that can certify documents:
•
A Justice of the Peace
•
An agent of the Australian Postal Corporation who is in charge of an office supplying postal services to the public, or a
permanent employee with more than two years continuous service (who is employed in an office supplying postal services to
the public)
•
A notary public (for the purposes of the Statutory Declaration Regulations 1993)
•
A person who is enrolled on the roll of the Supreme Court of a State or Territory, or the High Court of Australia, as a legal
practitioner (however described)
•
A judge, magistrate, registrar or deputy registrar of a court
•
A chief executive officer of a Commonwealth Court
•
A police officer
•
An Australian consular or diplomatic officer (within the meaning of the Consular Fees Act 1955)
•
An officer or finance company officer with two or more continuous years of service with one or more financial institutions (for
the purposes of the Statutory Declaration Regulations 1993)
•
An officer with, or authorised representative of, a holder of an Australian Financial Services Licence, having two or more
continuous years of service with one or more licensees, and
•
A member of the Institute of Chartered Accountants in Australia, CPA Australia or the National Institute of Accountants with
more than two years continuous membership.
1/2
V 200712.04
IDENTIFICATION FORM
INDIVIDUALS & SOLE TRADERS
VERIFICATION PROCEDURE
Attach a certified copy of the ID documentation used as proof of identity. ID enclosed should verify the applicant’s full
name; and EITHER their date of birth or residential address.
o Complete Part I (or if the individual does not own a document from Part I, then complete either Part II or III.)
o Contact your licensee if the individual is unable to provide the required documents.
PART I – ACCEPTABLE PRIMARY ID DOCUMENTS
Tick
3
Select ONE valid option from this section only
Australian State / Territory driver’s licence containing a photograph of the person
Australian passport (a passport that has expired within the preceding 2 years is acceptable)
Card issued under a State or Territory for the purpose of proving a person’s age containing a photograph of the person
Foreign passport or similar travel document containing a photograph and the signature of the person*
PART II – ACCEPTABLE SECONDARY ID DOCUMENTS – should only be completed if the individual does not own a document from Part I
Tick
3
Tick
3
Select ONE valid option from this section
Australian birth certificate
Australian citizenship certificate
Pension card issued by Centrelink
Health card issued by Centrelink
AND ONE valid option from this section
A document issued by the Commonwealth or a State or Territory within the preceding 12 months that records the provision of
financial benefits to the individual and which contains the individual’s name and residential address
A document issued by the Australian Taxation Office within the preceding 12 months that records a debt payable by the
individual to the Commonwealth (or by the Commonwealth to the individual), which contains the individual’s name and
residential address. Block out the TFN before scanning, copying or storing this document.
A document issued by a local government body or utilities provider within the preceding 3 months which records the provision
of services to that address or to that person (the document must contain the individual’s name and residential address)
If under the age of 18, a notice that: was issued to the individual by a school principal within the preceding 3 months; and
contains the name and residential address; and records the period of time that the individual attended that school
PART III – ACCEPTABLE FOREIGN ID DOCUMENTS – should only be completed if the individual does not own a document from Part I
Tick
3
BOTH documents from this section must be presented
Foreign driver's licence that contains a photograph of the person in whose name it issued and the individual’s date of birth*
National ID card issued by a foreign government containing a photograph and a signature of the person in whose name the
card was issued*
*Documents that are written in a language that is not English must be accompanied by an English translation prepared by an accredited translator.
2/2
Perpetual Protected Investments – Series 3
Supplementary Product Disclosure Statement Number 1
dated 23 May 2008 for Combined Financial Services Guide and Product
Disclosure Statement dated 17 March 2008 Issued by Perpetual Investment
Management Limited ABN 18 000 866 535 AFSL 234426
About this Supplementary Product Disclosure
Statement
Federal Budget impact on Perpetual Protected
Investments – Series 3
This Supplementary Product Disclosure Statement (SPDS) is to be
read in conjunction with Combined Financial Services Guide and
Product Disclosure Statement for Perpetual Protected Investments
– Series 3 dated 17 March 2008 (Combined FSG & PDS).
In the Federal Budget on 13 May 2008, the government
announced its intention to change the RBA Indicator Benchmark
Rate in the Income Tax Assessment Act 1997 from the RBA’s
Indicator Rate for Personal Unsecured Loans – Variable Rate
(14.60%*) to the RBA Indicator Rate for Standard Housing Loans
– Variable Rate (9.45%*) and that this change, once legislated, will
apply to any capital protected borrowing arrangements entered
into after 7:30pm 13 May 2008.
From 23 May 2008, the Product Disclosure Statement for
Perpetual Protected Investments - Series 3 comprises:
b the Combined FSG and PDS, and
b this SPDS.
Purpose of this SPDS
The purpose of this SPDS is to change and update the section
headed Tax Consequences on page 28 of the Combined
FSG and PDS following proposed changes to the interest rate
deductibility for capital protected borrowings announced in the
Federal Budget on 13 May 2008.
Words in italics (like this) are defined in the Glossary on pages
38-39 of the Combined FSG and PDS.
The dynamic management fee and the administration fee are
expected to remain fully tax deductible.
For more information see your adviser and the updated tax
opinion from Baker & McKenzie solicitors at
www.perpetual.com.au/structuredproducts/ppi3.
Perpetual Protected Investments – Series 3
remains a tax effective investment structure
Changes to the Combined FSG and PDS
Under the section headed Tax Consequences on page 28 of the
Combined FSG and PDS, the first paragraph on the right hand
column is deleted and replaced with:
‘Interest on any of the loans is generally partially deductible.’
This means investors will only be eligible to claim tax deductions
for interest on capital protected borrowings to a maximum of the
relevant Benchmark Rate, with any interest and amounts paid for
capital protection in excess of this rate being deemed to form part of
a cost base for the purposes of future capital gains tax calculations.
What you need to do?
All applicants are required to sign the acknowledgement at
the bottom of page 1 of the Application Form attached to the
combined FSG and PDS. If there is no acknowledgement
at the bottom of page 1 (either printed on the form or on
an attached sticker) please print and sign the following
‘I/we acknowledge and declare that I/we have read and
understood the Supplementary PDS dated 23 May 2008’
in the space at the bottom of page 1.
The table below shows indicative deductibility based on the current indicative interest rates for each of the various loan options
Loan Type*
24181_FAHPIS1_0508
Variable1
Fixed annually
2
Fixed for the term
1
2
3
*
3
Indicative interest rates*
Indicative Indicator Rate*
Excess
Indicative Deductibility
10.10%
9.45%
0.65%
93.6%
10.40%
9.45%
0.95%
90.9%
10.30%
9.45%
0.85%
91.7%
The RBA Indicator Rate will be the average Indicator Rate over the financial year
The RBA Indicator Rate will be the rate for the relevant month the loan was taken out, for the financial year only
The RBA Indicator Rate will be the rate for the relevant month the loan was taken out, fixed for the term
All the interest rates in this SPDS are the most up to date as at 23 May 2008 but may change which will vary the deductibility outcome.
23646_AABPES3_0308
Perpetual Protected
Investments – Series 3
New South Wales
Angel Place
Level 12
123 Pitt Street
Sydney NSW 2000
Perpetual Protected Investments – Series 3 Product Disclosure Statement
Queensland
Level 6
260 Queen Street
Brisbane QLD 4000
South Australia
Level 11
101 Grenfell Street
Adelaide SA 5000
Victoria
Level 28
360 Collins Street
Melbourne VIC 3000
Western Australia
Exchange Plaza
Level 29
2 The Esplanade
Perth WA 6000
www.perpetual.com.au
Experience. The difference.
Product Disclosure Statement
Combined Financial Services Guide and
Product Disclosure Statement
Dated 17 March 2008
Issued by Perpetual Investment
Management Limited
ABN 18 000 866 535
AFSL 234426
www.perpetual.com.au
Combined Financial Services Guide and Product Disclosure Statement
This document contains:
b Product Disclosure Statement (PDS) for Perpetual Protected Investments – Series 3 (‘the product’) (pages 1 to 35 and 38 to 76); and
b Financial Services Guide (FSG) for the dynamic management services provided to Investors in the product (pages 36 to 37).
The PDS is issued by Perpetual Investment Management Limited as responsible entity of Perpetual Protected Investments – Series 3.
The FSG is issued by Perpetual Investment Management Limited as a licensed financial services provider.
Glossary of terms
There is a glossary on page 38 that explains the terms in italics (like this) used in the PDS and application form.
About us
Perpetual is one of Australia’s leading funds management companies, with over $37 billion under management (as at 31 December 2007).
We aim to help Australians secure their financial independence and grow their wealth from generation to generation. We offer a range of
managed funds to suit most investors’ risk profiles, investment timeframes and income and capital growth requirements.
We have a range of products investing in Australian and international shares, property securities, direct property, credit, fixed interest, cash,
diversified asset classes and a range of superannuation and pension investments.
Important notice
The information in this PDS is of a general nature only. It has not been prepared taking into account any particular Investor’s or classes of
Investors’ investment objectives, financial situation or needs. Before you invest you should read this PDS in its entirety and assess whether the
product and loans offered in this PDS are appropriate for your circumstances. You should also consider the tax implications of investing in the
product and borrowing to invest. You should obtain independent financial or tax advice to help you with this.
If you would like more information on the product or the loans, contact your adviser or call us (See inside back cover for contact details).
Superannuation Investors – if you choose to borrow to invest with a Capitalised Investment Loan, you should also have an appropriate risk
management statement in place and assess if gearing is an appropriate investment strategy in light of that policy.
Perpetual Protected Investments – Series 3 is a managed investment scheme. Perpetual has lodged the scheme documents with ASIC in order
to register the scheme. ASIC takes no responsibility for the scheme documents. We expect that the scheme will be registered before the offer
opens and we will not accept any applications until the scheme is registered.
Australian offer
The PDS is only available to persons receiving it (electronically or otherwise) in Australia. You must be an
Australian resident operating from Australia for Australian tax purposes to invest in the product. You must not
be carrying on a business in the United Kingdom.
Electronic copies
If you are printing an electronic copy of the PDS you must print all pages including the application form. If you
make the PDS available to another person you must give them the entire electronic file or print-out including
the application form.
All amounts in this PDS are in Australian dollars (unless otherwise specified)
Repayment of capital and
returns are not guaranteed
There is no guarantee that the dynamic management strategy in this product will work. There is a risk that
your portfolio may be less than the value of your protected amount at the protection end date.
Neither Perpetual nor UBS nor any of their related entities or associates guarantee the performance of the
product, the payment of any distributions, the repayment of capital invested or any particular rate of overall
return. Participation in the product does not represent a deposit or any other liability of Perpetual or UBS or
any related entities or associates of Perpetual or UBS. Investors have no recourse to or rights against UBS
or any of their related entities or associates. The participation in the product is subject to investment risk,
including possible delays in repayment, loss of income and capital invested. UBS has not been involved in
the preparation of this PDS, is not the issuer of this product or this PDS and takes no responsibility for its
contents, accuracy, completeness or its compliance with the Corporations Act (Cth) 2001.
Changes to product
information
We may update the PDS for changes that are not materially adverse without issuing a supplementary PDS.
This information will be available by contacting us or visiting www.perpetual.com.au/structuredproducts/ppi3.
A paper copy of the PDS and updated information will be available free of charge on request. If we become
aware of any change that is materially adverse we will replace the PDS or issue a supplementary PDS.
If there is an increase in the fees and costs (other than federal government fees and charges and charges or
fees of the funds included in the product) we will give you 30 days’ written notice.
You should keep a copy of this PDS and any other supplementary material updating the PDS for future reference.
Changes to the offer period
We may vary the dates and times of the offer for the product. We may also vary any of the other key dates
relevant to the product.
Some key terms used in this PDS (also refer to Glossary on page 38) are:
Applicant, you, your
Person/entity that completes and lodges an application form to participate in the product.
Borrower, you, your
Applicants that complete and lodge an application form for a loan (and, where the context requires,
prospective Borrowers).
Investor, you, your
The registered holder of an interest in the product (and where the context requires, prospective Investors).
Lender
means Perpetual Loan Company Limited No 2 (ABN 40 008 739 035), or another subsidiary of Perpetual
Limited which provides of the loans under the Loan and Security Agreement.
Perpetual, we, us, our
means Perpetual Investment Management Limited (ABN 18 000 866 535) as the responsible entity of the
product. Perpetual is a wholly owned subsidiary of Perpetual Limited (ABN 86 000 431 827). Perpetual is the
issuer of the PDS.
Perpetual entities
means Perpetual Investment Management Limited, Perpetual Trustee Company Limited, and Perpetual Loan
Company Limited No 2 collectively or individually as the context requires.
Perpetual Group
means Perpetual Limited (ABN 86 000 431 827) and its subsidiaries.
PIML
means Perpetual Investment Management Limited (ABN 18 000 866 535) in its ‘personal’ capacity as licensed
financial services provider. PIML provides dynamic management services to Investors and is the issuer of the FSG.
UBS
means UBS AG, London branch, the provider of capital protection for the product.
Contact us
For further information, or a copy of any
of our Product Disclosure Statements,
please contact Perpetual:
Website
www.perpetual.com.au
www.perpetual.com.au/structuredproducts/ppi3
Email
ppi@perpetual.com.au
Telephone
During business hours, (Sydney time):
Investor Service Centre
1800 002 513
Adviser Service Centre
1800 002 513
Fax
Investors and advisers
02 8256 1416
Postal address
No stamp required if posted in Australia
Reply Paid 5126
Perpetual Protected Investments
GPO Box 5126
Sydney NSW 2001
Contents
Why invest?
2
Snapshot
4
Capital Protection: How do we protect your portfolio?
6
What are the risks?
8
Which funds can I choose from?
10
What are the fees and other costs?
18
Borrowing to invest – Part 1:
Overview of loans and gearing
21
Borrowing to invest – Part 2:
100% Investment Loan and Annual Interest Loan
22
Borrowing to invest – Part 3:
Capitalised Investment Loan
24
Additional information for all Borrowers
26
Taxation
29
Additional information for all Investors
30
Financial Services Guide
36
Glossary
38
Contacts
40
Who can apply?
41
How to apply?
42
Supporting documents for loans
43
Guide to completing the Application Form
45
Application Form
47
Why invest?
Perpetual Protected Investments – Series 3
(the product) offers gearing with capital
protection and no margin calls.
This gives you the potential to accelerate
your investment growth in positive markets
while helping to safeguard your capital in
any downturns.
The product also delivers the benefits of
a tax-effective structure.
1. Borrow up to 100% of your investment
amount plus the interest.
Non-Superannuation Investors¹ can borrow with a choice of:
b 100% Investment Loan, with
– fixed and variable interest options, plus
– an Annual Interest Loan2 to borrow and prepay the interest
on your 100% Investment Loan each year
OR
b a Capitalised Investment Loan to borrow up to approximately
50%3 of your total investment amount.
Superannuation Investors can borrow directly under the
product to gear your investments with a Capitalised Investment Loan.
2. Safeguard capital
Perpetual Protected Investments – Series 3 provides you with
access to a dynamic management strategy that aims to ensure
your portfolio value will be at least equal to your protected
amount at the protection end date (31 May 2015).
3. No margin calls
The dynamic management strategy also means you don’t pay
any margin calls along the way.
1 Loans offered are subject to credit approval.
2 Subject to choosing a fixed rate 100% Investment Loan
3 Estimate only – see page 24 for more details
2
4. Diversification
You can tailor your portfolio and build a growth-oriented portfolio
by choosing from a range of investment strategies.
The product gives you capital protected exposure to Australian
and global equities as well as other specialist asset classes
including China and other Asian equities, global resources, global
property and global infrastructure.
Because we know choice and diversification are important
to you, there is a selection of asset classes and investment
managers.
5. Manage cash flow
Payment of fees
Throughout the term of the investment, the dynamic management
and administration fees are automatically deducted out of the
product so you do not have to pay these fees from other sources.
Borrow to invest1
If you borrow to invest using a 100% Investment Loan you
can lock in fixed interest payments allowing you to better plan
your cash flows each year. If you borrow using a Capitalised
Investment Loan you don’t have to make any repayments until
the maturity date, completely freeing up your cash flow.
6. Tax-effective structure – you own the
assets in your portfolio
As an Investor in the product, you have absolute entitlement to
the units in the funds you select. This means any capital gains
and/or losses arising during the protection period in relation to
those fund units should be directly attributed to you. Capital
losses (if any) can be used to offset capital gains, including those
from your other investments.
In addition, if you borrow to invest, you will have the potential to
claim a partial or full tax deduction for fees and interest on the
loan as well as the fees for the product.
7. Capital gains lock-in
During the protection period, some of the unrealised gains within
your portfolio may be ‘locked-in’, increasing your protected amount.
You may also be able to borrow a further amount against this
increase (for investment purposes only), helping to build your
wealth even faster.
8. Flexibility at the protection end date
Because you own the units in the funds you select, you are able
to decide what you do with them when the protection period
ends, which means you control the timing of any capital gains
tax event.
You can continue holding the fund units (with no capital protection),
redeem them for cash or potentially roll them over into another
series of Perpetual Protected Investments (if one is available).
Having absolute entitlement to the fund units provides you with
flexibility and choice.
Perpetual Protected Investments – Series 3 3
Snapshot
Key dates2
Offer opens
26 May 2008
Offer closes
27 June 2008
Initial interest rate set date
20 June 2008
Investment Loan drawdown date
30 June 2008
Annual Interest Loan drawdown date
30 June 2008 then annually on each anniversary for the term of the product
Investment date
On or about 25 July 2008 (as soon as practicable after unit prices are published
for all the funds)
Protection start date
The same day as the investment date
Protection end date
31 May 2015
Maturity date (for loans)
31 May 2015
Investment strategies
See page(s)
Funds
Australian equity funds
You can determine your exposure1
to each of these funds through your
choice of investment strategies.
Ausbil Australian Active Equity Fund
11 to 17
Ausbil Australian Emerging Leaders Fund
Challenger Wholesale Australian Share Fund
Perpetual’s Wholesale Australian Fund
Schroder Wholesale Australian Equity Fund
Vanguard Australian Shares Index Fund
Global equity funds
AXA Wholesale Global Equity Value Fund
DWS Global Equity Thematic Fund
GVI Global Industrial Share Fund
Perpetual’s Wholesale International Share Fund
T. Rowe Price Global Equity Fund
Vanguard International Shares Index Fund (Hedged)
Specialist funds
Aberdeen Asian Opportunities Fund
Colonial First State Wholesale Global Resources Fund
IOOF/Perennial Global Property Trust
Macquarie International Infrastructure Securities Fund
Merrill Lynch Global Allocation Fund (Aust) (Class D Units)
Perpetual’s Wholesale Ethical SRI Fund
Platinum Asia Fund
Premium China Fund
1 The addition of capital protection through dynamic management means your exposure to the funds through the product is different to investing directly in the
funds. Your portfolio will include fund units and a cash account and possibly call options. See ‘Performance of your portfolio and the funds’ on page 10.
2 Dates and times are indicative only and subject to change.
4
Minimum amounts for
the loans and product
Investment only
100% Investment Loan
Capitalised Investment Loan
Minimum loan amount
n/a
$50,000
(plus multiples of $5,0001)
n/a2
Minimum total principal contribution
$25,000
(plus multiples of $5,0001)
n/a
$25,000
(plus multiples of $5,0001)
Minimum principal contribution per
investment strategy
$10,000
(plus multiples of $5001)
n/a
$5,000
(plus multiples of $5001)
Minimum investment amount per
investment strategy
$10,000
(plus multiples of $5001)
$10,000
(plus multiples of $5001)
n/a2
Minimum withdrawal per investment
strategy
$10,000 (or balance under $10,000) subject to minimum remaining balance of $10,000. Amounts
withdrawn prior to the protection end date are not capital protected.
1 Additional amounts must be in multiples of amount shown.
2 No minimum is shown because the minimum will be determined by the final Loan-to-Value Ratio (LVR).
Perpetual Protected Investments – Series 3 5
Capital protection: How do we
protect your portfolio?
The product has been structured with the aim of ensuring that
at the protection end date (31 May 2015) your portfolio value will
be at least equal to your protected amount. This is your initial
investment amount, adjusted upwards for any unrealised capital
gains which have been ‘locked in’ during the term of the product.
Here we explain how we manage your portfolio with the aim of
achieving this objective.
Protecting your investment with dynamic
management
The amount you invest in the product less the establishment fee
will initially be 100% invested in units in the funds you select.
We will then implement a strategy called dynamic management
for your portfolio.
Dynamic management involves us monitoring your portfolio value
each day during the term of the product and, where necessary,
switching your fund units in and out of call options. We do this
with the assistance of UBS, an international investment bank.
First we calculate your portfolio protection floor. This is the
hypothetical amount that you would need to invest in fixed
interest investments to make sure that your current portfolio value
grows to an amount at least equal to your protected amount by
the protection end date.
We use the portfolio protection floor to help us decide how much
of your portfolio to invest in fund units and how much to invest in
call options.
For example, assuming:
We keep a ‘downside buffer’ between the portfolio protection
floor and your portfolio value. If your portfolio value falls into this
buffer, we will sell some of your fund units to buy call options.
This is called a ‘sell trigger’.
Once your portfolio value rises back above the ‘upside buffer’, we
will exercise your call options to obtain fund units. This is called a
‘buy trigger’ (see Chart 1 below).
Lower interest rates will raise the portfolio protection floor,
resulting in a greater potential for allocation away from fund units
and into call options than when interest rates are higher.
While our main aim is to protect your capital, we also look to
maximise your exposure to fund units, as this is where there is
the greatest potential for capital growth.
Chart 1 – Buy and sell triggers
Portfolio value
Investment amount
Your portfolio will consist of fund units, a cash account and
possibly call options.
Buy trigger
100
Upside buffer
Sell trigger
Protected amount
Portfolio
protection
floor
Downside buffer
Issue date
Protection end date
Source: Perpetual.
(i) your current protected amount is $10,000 (the minimum
investment),
A ‘sell trigger’ means some of your fund units will be sold to buy
call options. A ‘buy trigger’ means call options will be exercised to
buy back into fund units in your chosen funds.
(ii) it is exactly seven years to the end of the product (protection
end date) and
Gains ‘lock-in’
(iii) an interest rate of 6.0% pa and
(iv) fees at the rate of 0.75% pa,
we would calculate that you would need to invest approximately
$7,100 in fixed interest investments today to grow to $10,000 at
the protection end date. Therefore, in this example, your portfolio
protection floor today would be $7,100.
We monitor your portfolio value and the portfolio protection floor
daily, as they change with market movements and changes in
interest rates.
6
Assuming the right conditions are met, we will ‘lock-in’ a portion
of any unrealised capital gains for all funds offered within the
product.
This can happen when your portfolio value reaches 180% of the
portfolio protection floor, at which time your protected amount
will be increased by 50% of the difference between your portfolio
value and your current protected amount.
For example – let’s say your original protected amount was
$10,000, your current portfolio protection floor is $8,500 and your
portfolio has performed well and is now worth $15,300, which
is 180% of the portfolio protection floor (i.e. $8,500 x 180% =
$15,300).
This means your protected amount can now be increased from
$10,000 to $12,650 locking in unrealised capital gains of $2,650.
We calculate your new protected amount as follows:
New protected amount:
= Original protected amount + [50% x (current portfolio value –
original protection amount)]
= $10,000 + [50% x ($15,300 – $10,000)]
= $12,650.
What you need to know about dynamic management
As dynamic management is an investment strategy in its own
right, you need to consider the risks associated with using it to
protect your initial investment in the product. Please refer to the
‘Risks’ section on page 8.
Changes to dynamic management
In certain circumstances (such as where there is a significant
change in the way a fund is being managed), a new fund may
be substituted for the fund you chose, or the terms of the
dynamic management changed. If a new fund is substituted,
your exposure will be to the new fund, instead of the fund you
originally selected.
At the protection end date
At the protection end date we will exercise any call options in
your portfolio on your behalf. If the dynamic management was
successful the value of your fund units will be at least equal to the
protected amount. (Refer to ‘What happens at the protection end
date’ on page 32 for more details).
Perpetual Protected Investments – Series 3 7
What are the risks?
There are many risks associated with investing in this product
that may affect your portfolio value. While it is not possible to
identify every one, we have detailed the significant risks here.
1. Suitability
Before you make an investment decision it is important to identify
your investment goals and the level of risk you are prepared to
accept. You should not invest in the product if:
b you have a short timeframe. If you withdraw any amount
from this investment before the protection end date it will not
be capital protected so when you invest in the product you
should do so with the intention of remaining for the full term to
the protection end date (31 May 2015). Your ability to obtain
cash proceeds quickly is limited (refer to ‘Can I withdraw from,
transfer or mortgage my investment?’ on page 31).
b you require a regular income stream. Most of your distributions
will be reinvested as part of the investment strategies.
b you are uncomfortable with investment volatility. All investments
are subject to market risk (see below), which impacts the value
of the funds.
b you are uncomfortable with interest rate volatility. Lower interest
rates raise the portfolio protection floor. There will be a greater
allocation away from fund units when they are declining in
value, than is the case when interest rates are higher.
2. Dynamic management
A sharp fall in the value of fund units may result in a substantial
allocation of your portfolio away from fund units into call options
and cash. This reduces your exposure to the fund and your ability
to participate in future gains made by the fund.
If the fall is significant enough, you may have no allocation to fund
units and no exposure to the fund.
If your portfolio becomes 100% invested in call options and cash,
you will only receive your protected amount when the call options
are exercised at the protection end date.
There is no guarantee that the dynamic management strategy will
work. There is a risk that your portfolio value may be less than the
protected amount at the protection end date.
For example if the value of your portfolio falls below the protection
floor before we are able to sell fund units and buy call options,
the call options we purchase will not increase sufficiently in value
to provide you with your protected amount at the protection end
date. If you borrow to invest this risk is mitigated by the Lender’s
Swap. If you don’t borrow you are exposed to this risk.
8
3. Volatility
Investment strategies which invest in funds with higher volatility
have a higher risk of selling fund units and buying call options
under the dynamic management strategy.
Again, this reduces your exposure to the fund and your ability to
participate in future gains made by the fund.
4. Borrowing to invest (gearing)
If you borrow to invest, interest on your loan is payable regardless
of the performance of your portfolio.
Depending on your portfolio value at the protection end date,
borrowing to invest could result in a loss, being some or all of the
interest that you have paid (or that is payable) under the loans.
If you withdraw before the protection end date, you lose the
benefit of the capital protection and you will have to repay all
outstanding loan amounts in full, (which may, unless you are a
Superannuation Investor, be more than your portfolio value).
5. Legal and Counterparty risk
This is the unlikely risk that the capital protection provider (UBS)
or one of the Perpetual entities defaults under the protection
agreements.
For example, if you borrow to invest, there is a risk that UBS fails
to pay the Lender the difference between the protected amount
and your portfolio value under the Lender’s Swap (for more
details of the Lender’s Swap please refer to ‘Gearing with capital
protection’ on page 21).
This could be due to a default of one of the parties (eg becoming
insolvent), or a major ongoing market disruption event lasting
90 days occuring at the protection end date. If such an unlikely
event occurs, unless you are a Superannuation Borrower, your
liability will not be limited to your portfolio value and you will be
required to make up any shortfall.
You should also refer to: ‘Non-Superannuation Investors –
circumstances where limited-recourse doesn’t apply’ on page 26.
We may recover your share of any liabilities arising as a result of
any such event under the protection agreements in accordance
with our power of attorney.
6. Market risk
10. Risks associated with individual funds
This is the risk that specific events have a negative effect on
the price of investments in a particular market (such as the
stock market for shares). These events may include changes in
economic, social, technological, political, legal or accounting
conditions, and investor confidence. These factors can affect
both Australian and international markets and, in particular, less
developed international markets.
You should also consider the risks associated with each fund.
Please refer to the relevant investment manager’s website for a
copy of the relevant product disclosure statement (refer pages
11 to 17).
7. Currency risk
Investment in international markets usually involves currency risk.
Currency risk is the potential for adverse movements in exchange
rates to reduce the Australian dollar value of international
investments. For example, if the Australian dollar falls, the value
of international investments expressed in Australian dollars can
increase. Conversely, if the Australian dollar rises, the value of
international investments expressed in Australian dollars can
decrease.
Currency risk potentially applies to all funds that have international
asset exposure.
8. Changes in laws
There is a risk that during the term of the product existing laws
may change or new laws may be introduced which affect the
potential benefits of the product (such as potential tax benefits)
or result in the product otherwise becoming unsustainable.
In such circumstances we may terminate the product on one
month’s notice to you and you would not receive the benefit of
the capital protection at the protection end date.
9. Limits of capital protection
The capital protection applies only to your investment amount at
the protection end date.
Depending on the performance of your portfolio, if you borrow to
invest, you may lose some or all of the money that you have paid,
or is payable in interest on your loan, plus any tax which may be
incurred during the term.
If you borrow to invest with a Capitalised Investment Loan you
could lose all of your principal contribution. See ‘Borrowing to
invest – Part 3: Capitalised Investment Loan’ on page 24 to 25
for more information.
Perpetual Protected Investments – Series 3 9
Which funds can I choose from?
Changes to information
The following information is current at the time of printing but
may change.
For more details and current information on the funds, please
see each fund’s Product Disclosure Statement (PDS) and any
updates for the relevant fund available from the website of the
investment manager for that fund (noted on pages 11 to 17).
We will not issue updated information regarding changes to the
funds (unless there is a materially adverse change during the offer
period). We will notify you of significant changes to the funds
during the term of the product as required by the Corporations Act.
Investment objectives of the funds
The investment objectives of the funds shown are not intended
to be forecasts. They are an indication of what the fund aims
to achieve over the medium to long term, assuming financial
markets remain relatively stable. Where the investment objective
is stated as performance against a benchmark, performance
is measured against the benchmark before the deduction of
fees and expense recoveries payable under the fund – unless
specified otherwise.
Past performance is not an indication of future performance.
Performance of your portfolio and the funds
The addition of capital protection through dynamic management
means the performance of your portfolio will be different to
the performance of the funds for the investment strategies you
choose. This is because you will not have 100% exposure to the
fund to the extent that your portfolio holds call options at any time.
In addition the fees and costs of the product will be reflected in
the net returns of your portfolio.
Consequently, the return you receive may be less than the
performance of the funds shown or the performance you might
have obtained if you had invested directly in the funds.
Asset class – fund
ARSN
Australian equity funds
Ausbil Australian Active Equity Fund
089 996 127
Ausbil Australian Emerging Leaders Fund
089 995 442
Challenger Wholesale Australian Share Fund
092 999 301
Perpetual’s Wholesale Australian Fund
091 189 132
Schroder Wholesale Australian Equity Fund
100 857 823
Vanguard Australian Shares Index Fund
090 939 718
Global equity funds
AXA Wholesale Global Equity Value Fund
098 445 464
DWS Global Equity Thematic Fund
090 379 105
GVI Global Industrial Share Fund
112 369 552
Perpetual’s Wholesale International Share Fund
091 186 837
T. Rowe Price Global Equity Fund
121 250 691
Vanguard International Shares Index Fund (Hedged)
093 254 909
Specialist funds
Aberdeen Asian Opportunities Fund
106 201 236
Colonial First State Wholesale Global Resources Fund
087 561 500
IOOF/Perennial Global Property Trust
118 190 542
Macquarie International Infrastructure Securities Fund
115 990 611
Merrill Lynch Global Allocation Fund (Aust) (Class D Units)
114 214 701
Perpetual’s Wholesale Ethical SRI Fund
099 975 041
Platinum Asia Fund
104 043 110
Premium China Fund
116 380 771
We chose the funds based on their manager’s experience and their suitability for capital protection.
We did not consider the underlying investments held by the funds or the fund manager’s labour, environmental, social or ethical
standards or policies.
10
Australian Equity funds
Fund
Ausbil Australian Active Equity
Fund
Ausbil Australian Emerging
Leaders Fund
Challenger Wholesale Australian
Share Fund
Investment manager1
Ausbil Dexia Limited
Ausbil Dexia Limited
Challenger Managed Investments
Limited
Investment objective
The aim of the fund is to outperform
the S&P/ASX 300 Accumulation
Index over the medium to long term
with moderate tax effective income.
The fund invests in a portfolio of
listed Australian equities that are
generally chosen from the S&P/ASX
300 Index.
The aim of the fund is to outperform
the benchmark over the medium
to long term. The performance
benchmark for the fund consists
of 70% S&P/ASX Midcap 50
Accumulation Index and 30% S&P/
ASX Small Ordinaries Accumulation
Index. The fund invests in both mid
and small cap stocks which possess
potential for superior growth.
The aim of the fund is to outperform
its benchmark, the S&P/ASX 300
Accumulation Index, over rolling
three-year periods.
Investment approach
Rather than focusing only on
growth or value investing, Ausbil’s
investment processes allow them
to exploit the inefficiencies across
the entire market, at all stages of
the cycle and across all market
conditions. The basic premise of
Ausbil’s philosophy is that stock
prices ultimately follow earnings and
earnings revisions. Ausbil’s process
seeks to identify earnings and
earnings revisions at an early stage,
and hence to pre-empt stock price
movements.
The fund invests in emerging
leaders/mid cap shares that are
greater than $250 million in market
capitalisation, primarily chosen from
the S&P/ASX 200 Index, excluding
shares from the Top 50 Leaders
Index. These shares provide
excellent performance opportunities
and diversification from large
capitalisation holdings while
avoiding potential liquidity problems
that many small capitalisation
companies present.
Challenger uses a wide variety
of information from sources
including in-house investment
research, stockbroker analysis and
publicly available data to generate
investment ideas. Companies that
rank well will then undergo further
analysis. Companies are rated
based on quantitative valuation
measures and qualitative factors,
with an emphasis on the company’s
free cash flow generation over
the medium term, balance sheet
strength and long term growth
prospects.
The final portfolio reflects the
company rating determined from
Challenger’s fundamental analysis,
their sector views as well as their
strong focus on risk management.
Portfolio construction guidelines
limit the Fund’s exposure to any one
company or sector.
Annual returns2 (pa)
as at 31-Dec-07
Total (%)
1 yr
3 yrs
5 yrs
1 yr
3 yrs
5 yrs
1 yr
3 yrs
5 yrs
16.36
23.45
24.76
16.01
23.46
30.57
12.04
20.75
21.07
Distribution (%)
7.28
5.57
5.75
10.91
8.60
10.80
7.60
14.29
10.27
Growth (%)
9.08
17.88
19.01
5.09
14.86
19.77
4.44
6.46
10.80
Past returns are not an indication of future returns
Management fees (pa)
0.90%
0.85%
0.90%
Performance fees
(estimate)3
Not applicable
0.30% (assuming performance of
2% above the benchmark)
Not applicable
How calculated
Not applicable
15% of any performance above
the benchmark (composite of 70%
S&P ASX Mid Cap 50 Accumulation
Index and 30% S&P ASX Small All
Ords Accumulation Index).
Not applicable
Buy/sell spread
0.30% / 0.30%
0.30% / 0.30%
0.30% / 0.30%
Cost recoveries
(estimate)4
Not applicable
Not applicable
Not applicable
www.ausbil.com.au
www.ausbil.com.au
www.challenger.com.au
For PDS or for
more information
See page 17 for footnotes 1,2,3 & 4.
Perpetual Protected Investments – Series 3 11
Australian Equity funds (continued)
Fund
Perpetual’s Wholesale
Australian Fund
Schroder Wholesale Australian
Equity Fund
Vanguard Australian Shares
Index Fund
Investment manager1
Perpetual Investment Management
Limited
Schroder Investment Management
Australia Limited
Vanguard Investments Australia Pty
Ltd
Investment objective
To provide long-term capital growth
and income through investment
in quality industrial and resource
shares and other securities.
To out perform the S&P/ASX
200 Accumulation Index over
the medium to long term. The
fund offers investors access to a
professionally managed portfolio of
predominantly Australian and New
Zealand equity securities.
Aims to match the total return of
the S&P/ASX 300 Index before
taking into account fund fees and
expenses.
Investment approach
Perpetual researches companies
of all sizes using consistent share
selection criteria. Perpetual’s
priority is to select companies
that represent the best investment
quality and are appropriately priced.
In determining investment quality,
investments are selected on the
basis of:
– conservative debt levels
– sound management
– quality business, and
– in the case of industrial shares,
recurring earnings.
At the heart of the investment
philosophy for the fund is a belief
that firms reinvesting in their
businesses at higher than average
rates of return will be rewarded with
better than average long term share
price performance.
Schroder believes that market
research is too short-term focussed
and neglects industry analysis
which can be used to identify the
attributes likely to drive firms that
generate superior return profiles
over time. Effectively the fund is
aiming to identify companies with
quality growth business models with
a long term sustainable competitive
advantage in their industry.
Vanguard selects a representative
sample of the S&P/ASX 300
Index and matches the risk/
return characteristics of the index.
Vanguard applies a buy and hold
strategy and trades less frequently
which in turn reduces transaction
costs.
Annual returns2 (pa)
as at 31-Dec-07
1 yr
3 yrs
5 yrs
1 yr
3 yrs
5 yrs
1 yr
3 yrs
5 yrs
Total (%)
14.29
18.79
21.59
13.17
20.22
20.37
15.89
20.70
20.77
Distribution (%)
13.08
10.93
8.30
18.46
18.77
13.39
5.30
5.54
5.02
Growth (%)
1.21
7.86
13.29
-5.29
1.45
6.98
10.59
15.16
15.75
Past returns are not an indication of future returns
Management fees (pa)
0.99%
0.87%
0.34%
Performance fees
(estimate)3
Not applicable
Not applicable
Not applicable
How calculated
Not applicable
Not applicable
Not applicable
Buy/sell spread
0.40% / nil
0.30% / 0.30%
0.20% / 0.10%
Cost recoveries
(estimate)4
Not applicable
0.05%
Not applicable
www.perpetual.com.au
www.schroders.com.au
www.vanguard.com.au
For PDS or for
more information
See page 17 for footnotes 1,2,3 & 4.
12
Global Equity funds
Fund
AXA Wholesale Global Equity
Value Fund
DWS Global Equity Thematic
Fund
GVI Global Industrial Share
Fund
Investment manager1
Bernstein Value Equities (a unit of
AllianceBernstein Australia Limited)
Deutsche Asset Management
(Australia) Limited
Global Value Investors Limited
Investment objective
To provide investors with long-term
capital growth and to outperform
its benchmark (MSCI World ex
Australia Index net dividends
reinvested in Australian dollars)
after costs and over rolling five-year
periods.
To outperform the MSCI World
ex-Australia Index ($A), after fees,
over rolling three year periods by
investing in securities listed on a
range of sharemarkets.
To provide long-term capital growth
and income to generate a rate of
return (after fees and expenses and
before taxes) which exceeds the
return of the benchmark of the fund,
(MSCI World Index (AUD) hedged)
over rolling three year periods.
Investment approach
The Bernstein belief is that when
faced with uncertainty, investors
overpay for investments that appear
secure, overestimate investment
risks and overcompensate others
for assuming those risks. Because
of this shares of companies that
seem well-positioned can become
over priced, while others vulnerable
to short-term concerns are often
under priced. This creates buying
opportunities in shares priced low
in relation to company long-term
earnings. Bernstein conducts
intensive research to identify these
buying opportunities.
The fund invests in around 90
to 130 global listed securities,
with some exposure to cash
investments. Investments in
emerging markets are allowed but
will generally not exceed 30% of the
fund. The fund may have exposure
to derivatives for investment and
currency management purposes.
GVI has a strong preference for
quality dividend-paying companies
that exhibit recurring earnings,
a strong balance sheet, a
competitive advantage and healthy
cashflows at attractive valuations.
GVI focuses on securities that it
believes have strong value and
quality characteristics. GVI believes
that this approach allows it to
identify securities that have been
overlooked, misunderstood or mispriced by the market. GVI prudently
manages clients’ money using a
conservative, disciplined and valuebased approach to investing.
Annual returns2 (pa)
as at 31-Dec-07
Total (%)
Distribution (%)
Growth (%)
1 yr
3 yrs
5 yrs
1 yr
3 yrs
5 yrs
1 yr
3 yrs
5 yrs
-7.83
10.85
10.63
-3.76
15.42
10.56
7.50
n/a
n/a
6.65
4.53
3.52
0.26
1.22
0.86
4.97
n/a
n/a
-14.48
6.32
7.11
-4.02
14.20
9.70
2.53
n/a
n/a
Past returns are not an indication of future returns
Management fees (pa)
0.97%
0.90%
1.23%
Performance fees
(estimate)3
Not applicable
Not applicable
Not applicable
How calculated
Not applicable
Not applicable
Not applicable
Buy/sell spread
0.20% / 0.20%
0.20% / 0.20%
0.40% / 0.40%
Cost recoveries
(estimate)4
0.03%
Not applicable
Not applicable
www.axa.com.au
www.dwsinvestments.com.au
www.gvi.com.au
For PDS or for
more information
See page 17 for footnotes 1,2,3 & 4.
Perpetual Protected Investments – Series 3 13
Global Equity funds (continued)
Fund
Perpetual’s Wholesale
International Share Fund
T. Rowe Price Global Equity
Fund
Vanguard International Shares
Index Fund (Hedged)
Investment manager1
Perpetual International Investment
Management Limited
T. Rowe Price Global Investment
Services Limited
Vanguard Investments Australia Pty
Ltd
Investment objective
To achieve long-term capital growth
through investment in international
shares with strong balance sheets
and a history of delivering earnings.
It aims to achieve returns in excess
of its benchmark, the MSCI World
ex-Australia Index in AUD, over
rolling three-year periods.
To seek long-term capital
appreciation primarily through
investment in established
companies operating in developed
markets throughout the world,
with faster earnings growth and
reasonable valuation levels relative
to market/sector averages. The
benchmark for the fund is the MSCI
All Country World Index (unhedged).
Aims to match the returns of the
MSCI World ex-Australia Index (with
net Dividends Reinvested), hedged
to $A before taking into account
Fund expenses.
Investment approach
PI Investment Management adopts
a fundamental, bottom-up approach
to stock selection focusing
on quality companies (strong
balance sheets, earnings visibility
and competitive position) with
attractive valuations within a global
framework. The currency exposure
of international assets is monitored
and hedging strategies may be
implemented.
T. Rowe Price has over 100
in-house analysts dedicated to
fundamental, bottom up priority
research, producing a group of
500-600 highly recommended
companies from which 100-200
investment candidates are selected.
The portfolio manager is actively
involved in the idea generation and
refinement process. The portfolio
typically holds 60-100 shares and
up to 20% of the fund may be
invested in emerging markets.
Vanguard selects a representative
sample of the MSCI World
ex-Australia Index and matches
the risk/return characteristics of
the index. Vanguard applies a buy
and hold strategy and trades less
frequently, which in turn reduces
transaction costs. Currency
movements are fully hedged to
Australian dollars.
Annual returns2 (pa)
as at 31-Dec-07
1 yr
3 yrs
5 yrs
1 yr
3 yrs
5 yrs
1 yr
3 yrs
5 yrs
Total (%)
-6.95
5.08
5.84
6.38
n/a
n/a
5.69
13.73
16.76
Distribution (%)
0.52
1.00
1.04
n/a
n/a
n/a
9.43
6.10
8.04
Growth (%)
-7.47
4.08
4.80
n/a
n/a
n/a
-3.74
7.63
8.72
Past returns are not an indication of future returns
Management fees (pa)
1.226%
1.16%
0.36%
Performance fees
(estimate)3
Not applicable
Not applicable
Not applicable
How calculated
Not applicable
Not applicable
Not applicable
Buy/sell spread
0.50% / Nil
0.30% / 0.30%
0.35% / 0.10%
Cost recoveries
(estimate)4
Not applicable
0.14%
Not applicable
www.perpetual.com.au
www.troweprice.com/institutional
www.vanguard.com.au
For PDS or for
more information
See page 17 for footnotes 1,2,3 & 4.
14
Specialist funds
Fund
Aberdeen Asian Opportunities
Fund
Colonial First State Wholesale
Global Resources Fund
IOOF/Perennial Global Property
Trust
Investment manager1
Aberdeen Asset Management
Limited
Colonial First State Investments
Limited
Perennial Real Estate Investments
Pty Ltd
Investment objective
To provide investors with high capital
growth over the medium to long term
(minimum between 3 to 5 years)
by seeking exposure to the Asian
markets, excluding Japan. In seeking
to achieve the fund’s objective,
Aberdeen may invest in securities
which are not contained in the index
used as the fund’s performance
benchmark, MSCI All Countries
Asia (Free) ex-Japan Index (AUD
unhedged).
To provide long-term growth by
predominantly investing in resource
companies around the world.
To provide a total return (after fees)
that exceeds the FTSE EPRA/
NAREIT Global Real Estate Index
(hedged) measured over a rolling
three year period.
Investment approach
Aberdeen is a truly active manager
and believes, given the inefficiency
of markets, superior long-term
returns are achieved by identifying
good quality stocks at a reasonable
price and holding for the long
term. Sound fundamentals drive
stock prices over time. Aberdeen
identifies good companies from
first-hand research, and adds value
from active management, which
constitutes intensive and ongoing
scrutiny at the company level.
Aberdeen utilises the resources
of its Singapore, Thailand, Hong
Kong and Malaysia-based equity
investment teams to undertake
stock selection.
Colonial’s strategy is to add value
by investing in global resource
companies over the medium to
long-term. Rather than attempting
to predict commodity price
movements, Colonial chooses
to focus on quality resource
companies all around the
world. Colonial concentrates on
companies that have strong balance
sheets, quality management,
high-quality assets and low-cost
production.
The trust gains exposure to listed,
or soon to be listed, property
securities from international
property markets which Perennial
believes can offer superior capital
growth and income characteristics.
Perennial places great emphasis
on bottom-up property securities
research. The portfolio generally
holds between 40 and 50 securities,
with a minimum of 25 stocks and
a maximum of 75 stocks. The trust
must have exposure to property
securities in at least three countries
at any one time, although normally
this figure would be considerably
higher.
Annual returns2 (pa)
as at 31-Dec-07
1 yr
3 yrs
5 yrs
1 yr
3 yrs
5 yrs
1 yr
3 yrs
5 yrs
Total (%)
14.64
21.59
n/a
42.33
36.07
29.53
-13.10
n/a
n/a
Distribution (%)
3.63
2.16
n/a
14.24
13.35
12.56
8.10
n/a
n/a
Growth (%)
10.63
19.43
n/a
28.09
22.72
16.97
-21.2
n/a
n/a
Past returns are not an indication of future returns
Management fees (pa)
1.18%
1.16%
1.05%
Performance fees
(estimate)3
Not applicable
Not applicable
Not applicable
How calculated
Not applicable
Not applicable
Not applicable
Buy/sell spread
0.55% / 0.55%
0.30% / 0.30%
0.35% / 0.35%
Cost recoveries
(estimate)4
Not applicable
Not applicable
Not applicable
www.aberdeen-asset.com.au
www.colonialfirststate.com.au
www.perennial.net.au
For PDS or for
more information
See page 17 for footnotes 1,2,3 & 4.
Perpetual Protected Investments – Series 3 15
Specialist funds (continued)
Fund
Macquarie International
Infrastructure Securities Fund
Merrill Lynch Global Allocation
Fund (Aust) (Class D Units)
Perpetual’s Wholesale Ethical
SRI Fund
Investment manager1
Macquarie Investment Management
Limited
BlackRock Investment Management
(Australia) Limited
Perpetual Investment Management
Limited
Investment objective
To invest in a portfolio of
infrastructure securities on a global
basis and to provide returns that
outperform the Macquarie Global
Infrastructure Total Return Index
($A Hedged) over the medium to
long term.
Aims to maximise total investment
returns while managing risk and is
generally diversified across markets,
industries and shares.
As the fund is a diversified fund its
benchmark consists of a weighted
average of the Australian dollar
hedged returns provided by market
indices for relevant asset classes.
To provide long-term capital growth
and income through investment in
quality shares of socially responsible
companies.
Investment approach
Macquarie believes that a
systematic fundamentals-based
approach to identifying long-term
potential value in infrastructure
companies will produce superior
investment performance. Macquarie
analyses infrastructure companies
to determine the quality of the
infrastructure assets that are
owned, operated or managed by
these companies and therefore
underpin these companies’ cash
flow and growth.
BlackRock’s Global Allocation Team
believes that competitive returns
with low to moderate levels of risk
can be achieved through a flexible,
research intensive, value oriented
approach that seeks the best
investment opportunities worldwide,
broadly diversified across asset
classes, countries and securities.
BlackRock’s current investment
strategy is to invest in global
equities, fixed income and cash.
The investment process combines a
top-down approach with bottom-up
security selection.
Perpetual researches companies
of all sizes using consistent share
selection criteria. Perpetual’s
priority is to select companies
that represent the best investment
quality and are appropriately priced.
In determining investment quality,
investments are selected on the
basis of:
– conservative debt levels
– sound management
– quality business, and
– in the case of industrial shares,
recurring earnings.
In addition to the above investment
approach Perpetual utilises a
strategy for screening ethical and
socially responsible investments.
Annual returns2 (pa)
as at 31-Dec-07
1 yr
3 yrs
5 yrs
1 yr
3 yrs
5 yrs
1 yr
3 yrs
5 yrs
Total (%)
16.76
n/a
n/a
13.34
n/a
n/a
13.36
20.36
22.68
Distribution (%)
8.61
n/a
n/a
14.23
n/a
n/a
14.54
14.05
10.82
Growth (%)
8.15
n/a
n/a
-0.89
n/a
n/a
-1.18
6.31
11.86
Past returns are not an indication of future returns
Management fees (pa)
1.00%
0.20%
1.175%
Performance fees
(estimate)3
0.20% pa (assuming performance
of 2% above the benchmark)
2.37% pa (assuming monthly
returns net of management fees
which fluctuate between
-3.13% and 7.20% and an initial
high water mark of 10%).
For further information relating to
performance fees please refer to
underlying PDS issued on 26 May
2006 and Supplementary PDS
issued 29 June 2006.
Not applicable
How calculated
Performance fee is 10% of return
of the fund above the Macquarie
Global Infrastructure Total Return
Index, subject to a high watermark.
Performance fee is 12.5% of any
out-performance from the previous
high water mark.
Not applicable
Buy/sell spread
0.38% / 0.25%
0.30% / 0.30%
0.20% / 0.20%
Cost recoveries
(estimate)4
0.08%
Not applicable
Not applicable
www.macquarie.com.au/mfm
www.blackrock.com.au
www.perpetual.com.au
For PDS or for
more information
See page 17 for footnotes 1,2,3 & 4.
16
Specialist funds (continued)
Fund
Platinum Asia Fund
Premium China Fund
Investment manager1
Platinum Investment Management
Limited
Sensible Asset Management
Limited and its sub-manager Value
Partners Limited
Investment objective
The fund primarily invests in listed
companies in the Asian region. The
fund aims to provide capital growth
over the long term.
Long term capital growth aiming to
generate net returns exceeding the
MSCI China Free Index (over a three
to five year period (before changes
in exchange rates). The fund is
denominated in Australian dollars,
while the MSCI China Free Index is
calculated in Hong Kong dollars.
Investment approach
The fund primarily invests in Asian
companies’ listed securities. Asian
companies may list their securities
on stock exchanges other than
those in Asia and the fund may
invest in those securities. The fund
may invest in companies not listed
in Asia but where their predominant
business is conducted in Asia.
The fund may invest in companies
that benefit from exposure to the
Asian economic region. The fund
will consist ideally of around 50 –
100 stocks that Platinum believes
to be undervalued by the market.
Where undervalued stocks cannot
be found funds may be invested
in cash. Platinum may short
sell securities that it considers
overvalued. Typically, the fund’s
portfolio will have 50% or more net
exposure to stocks.
The underlying investment
philosophy for the fund is based
on the belief that while markets are
inefficient and discrepancies exist
in the short run, prices in the long
run ultimately reflect fundamental
values. The fund seeks to identify
undervalued securities that will
benefit from the upside correction
between the market’s short-term
inefficiency and long-term efficiency.
Annual returns2 (pa)
as at 31-Dec-07
1 yr
3 yrs
5 yrs
1 yr
3 yrs
5 yrs
Total (%)
31.2
29.5
n/a
36.09
n/a
n/a
Distribution (%)
n/a
n/a
n/a
10.27
n/a
n/a
Growth (%)
n/a
n/a
n/a
25.82
n/a
n/a
Past returns are not an indication of future returns
Management fees (pa)
1.54%
1.88%
Performance fees
(estimate)3
Not applicable
0.30% pa (assuming the outperformance of the fund since
inception exceeds the previous
highest level of out-performance
since inception by 2%)5
How calculated
Not applicable
A performance fee of 15% of the
fund’s performance over the MSCI
China Free Index, Subject to out
performance exceeding previous
highest level of out-performance
since inception.
Buy/sell spread
0.25% / 0.25%
0.25% / 0.25%
Cost recoveries
(estimate)4
Not applicable
0.30%
www.platinum.com.au
www.premiumchinafunds.com.au
For PDS or for
more information
1 The investment manager may be
different from the responsible entity
for the fund.
2 Performance figures have been
obtained directly from the responsible
entity and/or the investment
manager for the relevant fund. Past
performance is no indication of future
performance and the performance of
your portfolio will be different to the
performance of the funds you choose
due to the dynamic management
strategy. Please refer to ‘Performance
of your portfolio and the funds‘ on
page 10.
3 The performance fees shown (if any)
are estimates only – the actual fees
may be more or less.
4 The cost recoveries shown (if any)
are estimates only – the actual cost
recoveries may be more or less.
5 This estimate does not represent any
actual or prospective performance of
the fund. It is not possible to estimate
the actual performance fee payable in
any given period, as the performance
of the fund cannot be accurately
forecasted.
Perpetual Protected Investments – Series 3 17
What are the fees and
other costs?
Fees and other costs
Did you know?
Small differences in investment performance, fees and costs
can have a substantial impact on your long term returns.
For example total fees and costs at 2% of your fund
balance instead of 1% could reduce your final return by up
to 20% over a 30 year period (for example, reduce it from
$100,000 to $80,000).
You should also consider whether features such as
superior investment performance or the provision of better
member services justify higher fees and costs.
You may be able to negotiate to pay lower contribution
fees and management costs where applicable. Ask us or
your financial adviser.
This document shows fees and other costs that you may be
charged. They may be deducted from your cash account, from
the returns on your investment or paid by selling your fund units
(under our power of attorney).
For additional explanation and an example of fees and costs
for the product, please refer to page 19 of the PDS. Costs of
borrowing are set out separately on page 27.
You should read all the information about fees and costs because
it is important to understand their impact on your investment.
To find out more
If you would like to know more or see the impact of fees on your
circumstances, the Australian Securities and Investments
Commission (ASIC) website www.fido.asic.gov.au has a
managed investment fee calculator to help you check out
different fee options.
Table 1 – Product fees and other costs
Type of fee or cost
Amount1
How and when paid
Fees when your money moves in or out of the product
Establishment fee
2.20%2
Calculated on the initial investment amount
when your portfolio is established.
Paid to your adviser.
Nil
Not applicable.
Nil
Not applicable.
Nil
Not applicable.
The fee to open your investment
Contribution fee
The fee on each amount contributed to your
investment
Withdrawal fee
The fee on each amount you take out of your
investment
Termination fee
The fee to close your investment
Management costs
The fees and costs for managing your investment
Administration fee
0.75% pa3
Dynamic management fee
0.70% pa of your protected amount3
(reduced to Nil if no fund units are held)
Underlying management costs
The amount you pay for specific funds is set
out on pages 11 to 17.
Calculated daily from the investment date
on your portfolio value and deducted from it
quarterly in arrears, on withdrawal from the
product and on the protection end date.
Calculated daily on your protected amount
and deducted from your portfolio quarterly in
arrears, on withdrawal from the product and
on the protection end date.
Management fees 0.34 – 1.88% pa4
Cost recoveries nil – 0.30%
Performance fees nil – 0.30% (estimates)5
Deducted from the funds as stated in the
PDS for the fund and reflected in the unit
price for the fund.
Not applicable.
Not applicable. You can’t switch investment
strategies after your initial investment.
Service fee
Investment switching fee
The fee for changing investment strategies
1 Fees and costs are inclusive of 10% GST (where applicable) less any available Reduced Input Tax Credits (RITCs).
2 See ‘Adviser remuneration for the product’ on page 20.
3 Inclusive of 10% GST. If you are registered for GST you may be able to claim a credit for some or all of the GST paid. See ‘Adviser remuneration for the product’ on
page 20.
4 Inclusive of 10% GST less any RITCs available to the funds.
5 Only some funds have performance fees – see the fund profiles on pages 11 to 17. The performance fees shown are estimates only – the actual fees may be more.
18
Example of annual fees and costs for the product
This table shows how the fees and costs for the product can affect your investment over one year. You should use this table to compare
with other managed investment products.
EXAMPLE — Aberdeen Asian
Opportunities Fund
Balance of $50,0001
Contribution Fees nil
You can’t make additional contributions to this product.
PLUS Management costs 2.63% pa
For every $50,000 you have in the investment strategy, you will be charged $1,315 each year.
EQUALS Cost of product2
If you had an investment of $50,000 at the beginning of the year, you will be charged fees of
$1,315. What it costs you will depend on the investment strategy you choose.
Note: Additional fees may apply:
Establishment fee: 2.20%. For every $50,000 you invest, you may initially be charged up
to $1,100 (refer to ‘Adviser remuneration for the product’ on page 20).
1
1 We have assumed the portfolio value is constant throughout the year and that the investment is equal to the current protected amount. We have not included
a contribution fee in the example because you can’t make additional contributions to this product. The management costs represents the 0.75% per annum
administration fee for the product, the dynamic management fee of 0.70% per annum (if in fund units) and the indirect cost of the 1.18% management
fee for the fund (see page 15).
2 Does not include buy/sell spreads that may be incurred when we buy/sell fund units as part of the dynamic management of your portfolio. See buy/sell spread
of funds in ‘Additional explanation of fees and costs for the product’ below.
Additional explanation of fees and costs for
the product
Payment of fees and charges
The administration fee and dynamic management fees will be
automatically deducted from your portfolio cash account by us
quarterly and paid to PIML. If there is insufficient money in your
portfolio cash account, we may sell fund units under our power
of attorney to pay these fees. This may have capital gains tax
implications, which are explained on page 29 under ‘Taxation’.
Fees and costs for the funds
The management costs for each of the funds are shown on
pages 11 to 17.
Where applicable, these fees and costs are deducted from the
value of the fund units and paid to the responsible entity and/or
investment manager for the fund as set out in the relevant fund
PDS. You should contact your adviser or refer to the website of
the investment manager of the fund for a copy of the PDS that will
explain these fees and costs in more detail and how they are paid.
Performance fees
In addition to the management fee, some fund managers may be
entitled to performance fees. Performance fees are payable when
the fund outperforms a specified benchmark, over a specified
period of time.
Performance fees paid are reflected in the unit price for the fund.
The method of calculating the performance fees varies. See the
fund profiles on pages 11 to 17 to see whether performance fees
are payable for a particular fund and how they are calculated. For
more information see the relevant fund’s PDS.
For example, say you have $50,000 worth of fund units and
the performance fee is 10% of return above the benchmark. If
the actual return for one year is 2% above the benchmark, the
performance fee payable would be 10% x 2% x $50,000 = $100
for the year. For more information see the relevant funds PDS.
Buy/sell spread of funds
Estimated transaction costs are allocated by the investment
manager when you (or we, acting on your behalf) buy or sell fund
units by incorporating a buy/sell spread in the relevant entry and/
or exit unit prices. This aims to ensure that you only pay the costs
associated with your own transactions and not those incurred
when other Investors buy or sell fund units.
When we acquire fund units for your portfolio, the price we pay
for them will reflect the buy spread of the relevant fund. When we
dispose of fund units from time to time to buy call options for your
portfolio in accordance with the dynamic management strategy,
the exit price of the fund units and the value of the call options
received will reflect the sell spread of the relevant fund. In this
way, the buy/sell spread of the funds is an indirect cost to you.
The buy/sell spreads for each of the funds as at the issue date of
this PDS are set out in the tables on pages 11 to 17. They may be
updated from time to time and may have changed since the issue
date of this PDS. The current buy/sell spreads for the funds at any
time are available by contacting the relevant investment manager
website as shown in the ‘Fund profiles’ table from page 11 to 17.
For example, if we dispose of fund units valued at $5,000 to buy
call options and the relevant spread for the fund is 0.30%, the sell
spread reflected in the value of the call options received will be $15.
The buy/sell spreads will impact the return on your investment.
As these costs are built into the funds’ unit prices, they will not be
recorded separately on your Investor statements.
The buy/sell spreads are not fees paid to us. They are charged by
the funds and retained in the fund to cover its transaction costs.
Cost recoveries
The constitutions for the funds may permit the fund manager
to recover other costs from the fund. The cost recoveries are
reflected in the unit price for the fund. See the ‘Fund profiles’ on
pages 11 to 17 to see whether cost recovery is permitted for a
particular fund and any limits that apply.
Perpetual Protected Investments – Series 3 19
For example, say you have $50,000 worth of fund units in a fund
and the fund permits cost recoveries of up to 0.10% p.a. The
maximum cost recovery permitted in respect of your portfolio’s
investment in the fund would be 0.10% x $50,000 = $50 for the year.
Some financial advisers have a practice of waiving all of their
commission but they are under no obligation to do so. If an
adviser does waive their commissions, your investment amount
and protected amount will be increased accordingly.
Government charges
You may be liable to pay commission if you take out a loan.
See ‘Adviser remuneration’ on page 28.
Government charges will be applied to your portfolio as
appropriate. These may include stamp duty on the transfer of
fund units. Whether stamp duty is payable or not on the transfer
of the fund units will depend on the fund. This means the stamp
duty consequences of the transfer of fund units can only be
determined at the time of transfer. You should consult the relevant
fund PDS and your financial or taxation adviser prior to the
transfer of any fund units held as part of your portfolio.
We are a member of IFSA and maintain a register (in compliance
with Industry Code of Practice on Alternative Forms of
Remuneration) for alternative forms of remuneration that are
paid in relation to the product. The register is publicly available.
Please contact us if you would like to see it.
Investment manager payments to us
Miscellaneous fees
If you invest using a cheque and it is dishonoured your financial
institution may charge us a dishonour fee, so we may charge you
that fee. The fee will differ depending on the institution. Please
contact your financial institution for further details.
If you authorise us to obtain your investment amount by direct
debit and that direct debit is dishonoured, you will be charged a
dishonour fee of $50. Your financial institution may also charge
fees to you, and to us, which we will also charge to you.
Increases or alterations to the fees and charges
Fees may change without your consent for many reasons,
including changes in the competitive, industry and regulatory
environment or changes in costs.
Fees or charges will not be increased without providing at least
30 days’ written notice to you, except for Government fees and
charges or fees of the funds included in the product.
If you withdraw your investment before the expiry of the notice
period you will not be affected by the fee change.
The management costs for the funds shown on pages 11 to 17
can generally only change on 30 days notice. See the relevant
fund PDS for maximum fees and details of how fees may change.
Adviser remuneration for the product
Financial adviser commissions
The commissions explained in this section are paid to your
financial adviser out of the establishment fees in relation to your
investment in the product.
The commissions that are paid to your financial adviser are
summarised in Table 2 below. Please refer to Table 1 on
page 18 for further information regarding fees and costs in
relation to the product.
Table 2 – Adviser commissions
Commission
Rate
Establishment Fee
2.20%
Cost per $50,000 invested
1
$1,1001
1 Amounts disclosed are inclusive of 10% GST.
20
Register
We may receive payments from some funds’ investment
managers. These payments are not an additional cost to you.
These payments may help to cover the costs incurred by us in
establishing and maintaining the investment strategies. These
amounts may be up to 1.00% pa of the money invested with the
investment manager (inclusive of GST if applicable).
Borrowing to invest – Part 1:
Overview of loans and gearing
Overview of loans and gearing
This section is a summary only. Before making a decision
to borrow, you should read all the sections on ‘Borrowing
to invest’ (pages 21 to 28) and the Loan and Security
Agreement which is available free of charge from our
website at www.perpetual.com.au/structuredproducts/ppi3
or by contacting us on 1800 002 531. The Loan and
Security Agreement forms part of this PDS. This means
when you submit an application you agree to the terms
and conditions contained in that document.
No matter which loan you select, the dynamic management strategy
is designed to ensure that at the protection end date your portfolio
value will be at least equal to your protected amount.
To protect against the unlikely event that the dynamic
management strategy doesn’t work, the Lender has entered
into a swap agreement with UBS (the Lender’s Swap). Under
that agreement UBS will pay the Lender the amount (if any) by
which your portfolio value falls short of your protected amount
at the protection end date. The Lender will then apply any such
payment towards repayment of your loan.
Withdrawing prior to the protection end date
This product gives you access to gearing via two different types
of Investment Loans:
b 100% Investment Loan – 100% gearing (with an optional
Annual Interest Loan) for all Non-Superannuation Investors only
(see pages 22 to 23 for more details).
b Capitalised Investment Loan – approximately 50%1 gearing
for all Investors including Superannuation Investors (see pages
24 to 25 for more details).
Gearing generally
By borrowing to invest or ‘gearing’ you increase the amount you
have to invest rather than just investing your own money. This
has the potential to accelerate both higher and lower returns.
As a result, returns generated from geared investments are more
volatile than those generated from non-geared investments.
When considering gearing, it is important to remember that there
is an ongoing cost attached to it – namely the interest and other
costs associated with the loan – and that the obligation to pay
those costs continues despite the performance of the investment.
If the income received from an investment is expected to be
greater than the cost of borrowing, one of the benefits of gearing
is that you may be able to claim a tax deduction for all your
interest payments. (For more details on the tax deductibility of
interest payments incurred by gearing see the section ‘Taxation’
on page 29.)
Gearing with capital protection
No matter what loan you choose, you only get the benefit of the
capital protection if you stay invested in the product until the
protection end date (31 May 2015).
If you withdraw prior to the protection end date, your investment
will not have the benefit of capital protection and so, depending
on the amount of your withdrawal proceeds (unless you are a
Superannuation Investor) you may be required to find additional
cash to pay out your loan. See ‘Can I withdraw from transfer or
mortgage my investment?’ on page 31 for more details.
Margin calls
One of the risks associated with some forms of gearing is the
possibility of having to pay for margin calls. This involves having to
repay some or all of your loan when the value of your investment
has fallen.
Margin calls may occur when the value of the relevant assets falls
(measured by the Loan-to-Value Ratio or LVR), requiring you to
pay additional money to the Lender to give them added comfort
that you will be able to repay your loan.
With Perpetual Protected Investments – Series 3, there are
no margin calls.
Loan drawdown and investment
All Investment Loans and any Annual Interest Loans for the first year
will be drawn down as at 30 June 2008 and held on trust in our
applications account. We retain the interest earned on this account.
Application money is held in the applications account until
the protection start date when all your application money is
transferred to your portfolio cash account and interests in the
product are issued to you. No interest is earned on your portfolio
cash account.
The money in your portfolio cash account is invested in the funds
you have selected on the investment date.
The capital protection always works the same way (see ‘Capital
protection: How do we protect your portfolio’ on page 6). There
may, however, be different consequences for you depending on
which loan you select.
1 50% is an estimate only subject to prevailing interest rates at the time of drawdown. See table on page 24 for more details.
Perpetual Protected Investments – Series 3 21
Borrowing to invest – Part 2:
100% Investment Loan
100% Investment Loan and Annual
Interest Loan
This section is a summary only. Before making a decision
to borrow, you should read all the sections on ‘Borrowing
to invest’ (pages 21 to 28) and the Loan and Security
Agreement which is available free of charge from our
website at www.perpetual.com.au/structuredproducts/
ppi3 or by contacting us on 1800 002 531. The Loan and
Security Agreement forms part of this PDS. This means
when you submit an application you agree to the terms
and conditions contained in that document.
The Lender is offering Non-Superannuation Investors the
opportunity to apply for:
b a 100% Investment Loan to borrow 100% of your investment
amount in the product
b an Annual Interest Loan so you can borrow and prepay the
interest on the 100% Investment Loan in June each year. In
order to qualify for an Annual Interest Loan you must choose a
fixed interest rate 100% Investment Loan.
Loan applications must be submitted with your application for
the product.
100% Investment Loan
You can borrow 100% of your investment amount subject to
satisfying the Lender’s credit approval criteria.
Interest rates
You can choose one of the following three interest rate options for
your 100% Investment Loan:
Table 3 – Interest rates
Option
Indicative interest rate
Variable
Fixed annually
see www.perpetual.com.au/
structuredproducts/ppi3
Fixed for the term
The Lender will determine interest rates for all Investment Loan
options on or about 20 June 2008. These rates will be published
at www.perpetual.com.au/structuredproducts/ppi3. You can also
phone us on 1800 002 513.
The interest rates for your loan will be notified to you in your loan
confirmation statement. The variable rates will be subject to
change from time to time (at the Lender’s discretion). The ‘fixed
annually’ rate changes in June each year.
You may switch between some of these interest options as set
out in the Loan and Security Agreement, subject to the Lender’s
approval. Your request to switch must be received by the Lender
at least 10 business days prior to the interest payment date on
which you wish the request to take effect.
The minimum amount you can borrow is $50,000, with additional
amounts in multiples of $5,000 (unless the Lender agrees otherwise).
Any interest that you have prepaid is not refundable (unless the
Lender asked you to repay the loan early and there has not been
an event of default). You may incur a fee for switching interest
options.
The 100% Investment Loan is an interest-only loan, with the
principal outstanding repayable in full on the maturity date.
Interest payments
Repayment of the principal under the 100% Investment Loan is a
limited-recourse obligation (limited to your portfolio value) at the
maturity date. Repayment of interest is a full-recourse obligation.
Interest payments on the 100% Investment Loan and Annual
Interest Loan are full-recourse obligations. This means that you
must make interest payments irrespective of how your portfolio is
performing.
Limited-recourse
Being ‘limited-recourse’ means that our right of recovery
against you for the loan principal at the maturity date is limited
to your portfolio value (subject to certain exceptions – see:
‘Non-Superannuation Investors – circumstances where limitedrecourse doesn’t apply’ on page 26).
22
All interest payments must be made by direct debit and we will
deduct your payments automatically on each payment date from
the account you specify in the application form.
In the event of non-payment, you will be personally liable for
all outstanding interest plus default interest on the total
outstanding amount.
Annual Interest Loan
Under the tax-effective structure we have designed for the
product, you have absolute entitlement to the units in the funds
you select. This means that if you borrow to invest, you will have
the potential to claim a partial or full tax deduction for fees and
interest on the loan as well as the fees for the product.
If you select a 100% Investment Loan with either the ‘fixed
annually’ or ‘fixed for the term’ interest rate options, you can elect
to prepay the next full year’s interest payment in June each year.
This allows you to claim a tax deduction in advance of the period
to which the payment relates.
All Annual Interest Loans are principal and interest, full-recourse
obligations requiring monthly repayments of principal and interest
throughout the term. Any principal outstanding is repayable in full
on the maturity date.
The interest rate for the Annual Interest Loan will be set in
June each year. The indicative rate for year 1 will be finalised
on 20 June 2008 and published on our website at
www.perpetual.com.au/structuredproducts/ppi3.
Annual Interest Loans are available in June each year and may be
renewed automatically each year subject to the Lender’s approval.
To assist you prepay the interest under a fixed rate 100%
Investment Loan you can also apply for an Annual Interest Loan
to make that prepayment.
Table 4 – The applicable interest rate options, rate set dates and interest payment dates for the 100% Investment Loan and
associated Annual Interest Loan
100%
INVESTMENT
LOAN
ANNUAL
INTEREST LOAN
VARIABLE
FIXED ANNUALLY
FIXED FOR TERM
Interest rate
Reviewed monthly
Rate set in June each year
for 12 months
Fixed as at 30 June 2008
for full term to maturity date
(31 May 2015)
Interest
payments
Monthly in arrears
Prepaid annually on
30 June each year
Prepaid annually on
30 June each year
Interest rate
Principal
and interest
payments
Rate set in June each year
Not available for variable
rate 100% Investment Loan
Loan principal and interest repaid monthly in arrears on the last
business day of the month commencing 31 July 2008.
New loan advanced in June each year with Lender’s approval.
Security
Guarantor
Your obligations under a 100% Investment Loan and any Gains
Loan (see below) are secured against the assets in your portfolio.
If the Borrower is a Corporate or a Corporate trustee, a director
of the company will also need to personally guarantee the
Borrower’s obligations under the loans.
Depending on the amount you borrow, we may ask you to
provide additional assets as security for your loans.
If the Borrower is a Corporate, you may also need to provide
a company charge (which attracts certain additional fees
and possibly stamp duty, see Table 9 on page 27 for more
information). We will provide you with all the necessary forms
if required.
If you are a Guarantor for a loan and the Borrower does not pay
any amounts under that loan when due, the Lender can ask you to
repay the amounts owing without having to first ask the Borrower.
Gains Loan
During the term of the product the Lender may also offer you
additional funds under a Gains Loan (which you can use for
other investment purposes) if your portfolio value has increased
above a certain level, resulting in a gains lock-in (see page 3 for
more details).
The terms of this loan are the same as those contained in the
Loan and Security Agreement in respect of 100% Investment
Loans. The interest option will be based on the same interest
option as your 100% Investment Loan and the interest rate will
be set when the loan is offered to you.
Perpetual Protected Investments – Series 3 23
Borrowing to invest – Part 3:
Capitalised Investment loan
Capitalised Investment Loan
Available to Superannuation Investors and Non-Superannuation
Investors
The LVR will depend on the final interest rate. The table below
shows LVR’s based on different indicative interest rates.
Table 5 – LVR
This section is a summary only. Before making a decision
to borrow, you should read all the sections on ‘Borrowing
to invest’ (pages 21 to 28) and the Loan and Security
Agreement which is available free of charge from our
website at www.perpetual.com.au/structuredproducts/
ppi3 or by contacting us on 1800 002 531. The Loan and
Security Agreement forms part of this PDS. This means
when you submit an application you agree to the terms
and conditions contained in that document.
Interest rate per annum
(fixed for term)
LVR
Invest a proportion of your own money
Unlike a 100% Investment Loan (see pages 22 to 23) a
Capitalised Investment Loan always requires you to invest a
proportion of your own money (or that of your Superannuation
Fund) (your principal contribution). This loan is limited to an
amount calculated by reference to your principal contribution
and a maximum ‘Loan-to-Value Ratio’ or ‘LVR’ (see below).
The Capitalised Investment Loan is a capitalised interest limited
recourse loan (see ‘Limited-recourse’ on the next page).
All interest is added to the principal each month (in arrears)
and the total outstanding principal and capitalised interest is
repayable in full on the maturity date.
8.75%
53%
9.00%
52%
9.25%
51%
9.50%
50%
9.75%
49%
10.00%
48%
10.25%
47%
The total amount invested in the product on your behalf will
depend on the amount of your principal contribution and the final
LVR (set on or about 20 June 2008).
The table below shows the total investment amount that will be
invested on your behalf based on different examples of principal
contributions and LVR’s.
Table 6 – Principal contributions, LVR, investment amount
Principal
Contribution
In other words while your principal contribution receives the
benefit of any capital growth in the investment strategy you
select and is capital protected at the protection end date, it also
provides additional security for the interest which accrues during
the term.
LVR
$
25,000
$
50,000
$ 100,000
Investment amount
53%
$
53,191
$
106,383
$
212,766
52%
$
52,083
$
104,167
$
208,333
51%
$
51,020
$
102,041
$
204,082
50%
$
50,000
$
100,000
$
200,000
Interest Rates
49%
$
49,020
$
98,039
$
196,078
The interest rate payable under a Capitalised Investment Loan
will be fixed for the term of the investment. We will set the interest
rate on or about 20 June 2008. The final rate (and indicative rates
leading up to the final rate) will be published on our website at
www.perpetual.com.au/structuredproducts/ppi3.
48%
$
48,070
$
96,154
$
192,308
47%
$
47,170
$
94,340
$
188,679
Capital Protection
Maximum Loan-to-Value Ratio (LVR)
We will calculate the LVR so that your principal contribution
covers the capitalised interest payable at the maturity date.
We will set the LVR for the Capitalised Investment Loan at the
same time as we set the interest rates for the loans (on or about
20 June 2008).
24
In other words while your principal contribution receives the
benefit of any capital protection in the investment strategy you
select and is capital protected at the protection end date, it also
provides additional security for the interest which accrues during
the term.
This means that under a Capitalised Investment Loan, you
should always have sufficient funds in your portfolio to repay
the amounts due under the loan at the maturity date, but if the
performance of your investments does not cover the interest, you
will not recover all of your principal contribution.
If your portfolio is worth more than the amount outstanding
under your loan when you default, you will receive the excess.
As a Superannuation Investor, if the assets in your portfolio are
worth less than the amount outstanding under your loan when
you default, you will not have to pay us the shortfall.
In some circumstances you could lose all of your principal
contribution.
Gains Loan
Limited-recourse
Gains Loans are not offered in association with Capitalised
Investment Loans.
Being ‘limited-recourse’ means that if you fail to repay the principal
and capitalised interest at the maturity date, or for Superannuation
Borrowers you default on your obligations under the loan at
anytime during the term, our right of recovery against you is
limited to your portfolio value subject to the following:
Superannuation funds
b Non-Superannuation Investors
For Non-Superannuation Investors using a Capitalised
Investment Loan, limited-recourse does not apply in certain
circumstances. Please refer to ‘Non-Superannuation Investors
– circumstances where limited-recourse doesn’t apply’ on
page 26.
b Superannuation Investors
For Superannuation Investors, limited-recourse applies in all
circumstances.
Superannuation Investors are reminded of their
obligation to formulate and implement an appropriate
investment strategy that has regard to the whole of
the circumstances of their fund and to act in the best
interests of the members of their fund.
This includes having an appropriate risk management
strategy in place to manage the risk associated with
gearing prior to making such an investment.
In exchange for us agreeing to grant Superannuation Investors
a limited-recourse Capitalised Investment Loan, when you
enter into the loan you agree that if you default on your
obligations under the loan at any time (see ‘Defaults’ on page
26), you will sell us the assets in your portfolio (or identical
replacement assets) for their current value at that time. In those
circumstances, we will then deduct the amount outstanding
under your loan (including any costs we incur) from the
purchase price we pay you.
Table 7 – Capitalised Investment Loan example
The table below is designed to illustrate how interest accrues with a Capitalised Investment Loan during the term of the product. The
example shows a hypothetical loan amount of $50,000 at an interest rate of 9.50% p.a. fixed for the term and compounded monthly.
Opening loan balance
Interest
Closing loan balance
$50,000
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
$50,000
$54,962
$60,417
$66,413
$73,014
$80,250
$88,215
$4,962
$5,455
$5,996
$6,601
$7,236
$7,965
$8,755
$54,962
$60,417
$66,413
$73,014
$80,250
$88,215
$96,970
Perpetual Protected Investments – Series 3 25
Additional information for
all Borrowers
Applications
Repayment at maturity
We have absolute discretion to accept or reject any application.
You may elect to repay your loan(s) in cash at the maturity date.
If you choose not to repay your loan(s) in cash we will exercise
our rights under the Loan and Security Agreement and apply the
proceeds of the sale of your portfolio to repay the loan(s).
Payments
All payments relating to the loans will be made via direct debit.
You must ensure there are sufficient funds available in your direct
debit account on the relevant drawdown date.
You will be liable to pay interest on the principal outstanding
between the maturity date and the date the loan(s) are repaid.
Repayment
Defaults
You must repay your loan(s) in full on the maturity date except
when:
In an event of default, we may enforce our rights under the Loan
and Security Agreement. Examples of events of default include
failure to pay money owing on time, failure to comply with any of
your obligations under the Loan and Security Agreement or you
being insolvent.
b you choose to withdraw from the investment before the
maturity date and make an early repayment – in which case
you must make a proportionate repayment of any loans
b you choose to repay your loan/s (and all other amounts that
you owe) early
b you have drawn down an Annual Interest Loan and choose to
change from prepaying interest on your loans to paying interest
monthly in arrears, in which case you must repay your Annual
Interest Loan in full at that time
b there is an event of default
b we ask you to repay your loan(s) at a different time.
Early repayment
There are some circumstances under the ‘Loan and Security
Agreement’ where we may require you to repay your loan early.
You may also decide, due to your own circumstances that you
want to repay either the whole or a portion of a loan before the
maturity date. You must give us 10 business days notice of your
intention to make an early repayment.
On early repayment, you must repay the outstanding principal,
any interest and any other amounts that may be owing to the
Lender under the Loan and Security Agreement (or a proportion
of them as notified by the Lender if you have elected to repay a
portion of your loan early).
If you repay early:
b the amounts repaid may not be re-borrowed
b you may be liable to pay early repayment fees including
break costs
b any prepaid interest is not refundable (unless the Lender has
asked you to repay the loan early and there has not been an
event of default).
26
Our rights in the event of a default include:
b charging interest at the default rate, which is your applicable
interest rate plus 4%
b declaring that your loans and related fees and charges are
immediately due and payable
b unless you are a Superannuation Investor redeeming all your
assets over which the Lender has taken security and applying
the proceeds to your outstanding loan obligations.
Non-Superannuation Investors –
circumstances where limited-recourse
doesn’t apply
If you are a Non-Superannuation Investor there are some
circumstances where the limited-recourse provisions of the loans
will not apply and you will be required to pay any shortfall in the
unlikely event one arises. These circumstances include:
b you withdraw from the product at any time other than the
maturity date and your portfolio value is less than the total
amount payable under your loans
b your loans must be repaid other than on the maturity date for any
other reason (see ‘Early repayment’ above) and your portfolio
value is less than the total amount payable under your loans
b you withdraw from the product at the maturity date and your
portfolio value plus the amount paid to the Lender by UBS
under the Lender’s Swap is less than the total amount payable
under your loans.
You will need to use your own money to cover related fees and
charges.
The obligation to pay interest on all loans and the obligation to
repay the principal and interest on an Annual Interest Loan are
full-recourse obligations for Non-Superannuation Investors.
Table 8 – Comparison of features of loans
Loan type
Credit
approval
Principal
contribution
required
Interest
loan
Principal
repayments
Interest
payments
Interest tax
deductibility
Protected
amount
Gains
lock-in
potential
Gains
Loan
potential
100%
Investment
Loan
Full
assessment
requires
supporting
documents
n/a
Yes
At maturity
Prepay
annually
or monthly
in arrears
Yes
Investment
amount
plus any
gains
lock-in
Yes
Yes
Annual
Interest
Loan
Part of
100%
check
n/a
n/a
Monthly
in arrears
Monthly
in arrears
Yes
n/a
n/a
n/a
Capitalised
Investment
Loan
Credit
check (no
supporting
documents
required)
Yes
n/a
At maturity
At maturity
date
Yes
Investment
amount
plus any
gains
lock-in
Yes
No
Table 9 – Loan fees and charges
All payments relating to the loan will be made via direct debit. You must ensure there are sufficient funds available in your direct debit
account on the relevant drawdown dates.
Type of fee or cost
Amount1
When paid
Nil
Not applicable
$135
On lodgement of the charge with ASIC
Stamp duty (on additional security including
company charge)
At prevailing rates applicable to relevant
Office of State Revenue
At commencement of product on registration
of security
Early repayment fee
This fee will be calculated by us and will
consist of:
On demand by the Lender
Fees applicable when you borrow to invest
Loan establishment fee
The fee to establish your loan
Security registration fee
The fee to register a charge with ASIC
(only if Borrower is a company)
The fee for repaying all or part of the loan
principal before the maturity date
– one month’s interest,
– 0.30% of your loan amount if repaid prior to
30 June 2012, and
– break costs for unwinding hedging and
funding arrangements subject to prevailing
interest rates at that time.
This fee will be calculated by us and will be
$50 plus break costs (calculated by us) for
the cost of unwinding hedging and funding
arrangements, subject to prevailing interest
rates at that time.
On demand by the Lender
The fee and costs for switching your interest
rate option before the maturity date
Security release fee
$65
At the time of repayment of the Investment
Loan
$50 plus $10 per page
On demand by the Lender
Additional copies of statements
and reports
$10 per page
On demand by the Lender
Direct Debit Dishonour Fee
$50
On demand by the Lender
Interest switching fee
Fee to release our charge registered with
ASIC when all amounts due to the Lender
under the loan are repaid in full
(Only if Borrower is a company)
Information retrieval fee
For providing archived or historical
information about the loan
Your financial institution may also charge you
fees relating to any dishonoured payments
1 Fees and costs are inclusive of 10% GST (where applicable) less any Reduced Input Tax Credits (RITCs).
Perpetual Protected Investments – Series 3 27
Loan fees and charges
The Lender is entitled to be reimbursed for all costs, charges
and expenses (including stamp duty, GST, search fees, security
registration fees, security release fees and legal fees) incurred
in relation to the Loan and Security Agreement and related
documentation, the administration of the loans and any action
to enforce the Lender’s rights under the Loan and Security
Agreement. These fees and charges include those set out in the
table above. All payments relating to the loan (including the fees
shown above) will be made via direct debit.
Increases or alterations to the fees
and charges
The fees set out above are current at the time of printing but may
be subject to change without your consent for reasons including
changes in the competitive, industry and regulatory environment
or changes in costs. The Lender will not increase fees or charges
without providing you with at least 30 days written notice,
except for Government fees and charges. If you withdraw your
investment or make a full loan repayment before the expiry of the
notice period you will not be affected by the fee change.
Payments to dealer groups
Certain dealer groups may receive payments from the Lender
based on the volume of business they generate. These payments
are not an additional cost to you, they are paid by the Lender.
The payments may be up to 1.00% pa of the total loan amount
generated via the dealer group.
Ongoing commissions
Ongoing commissions are paid by the Lender on the basis that:
b if you change your adviser, any ongoing commission payable
by the Lender after such change has been notified in writing
to Perpetual will be paid to your new adviser only
byour new adviser (as notified to Perpetual in writing) will be paid
the same rate of ongoing commission paid in respect of the
Investment Loan.
Some financial advisers may agree to waive (or rebate) their
commissions but have no obligation to do so.
Adviser remuneration
The Lender pays the following remuneration to advisers for the loans.
Table 10 – Adviser remuneration
Adviser remuneration
Amount (including 10% GST)
How and when paid
Upfront commission
up to 1.10% of the loan principal amount
This amount may be paid by us to your
adviser following your investment. It is paid at
our discretion out of our own funds. It is not
a cost to you.
Ongoing commission
up to 0.65% pa of either
This amount is paid by the Lender out of it’s
own money following your investment. It is
paid at the Lender’s discretion and is not an
additional cost to you.
i. the total amount of a 100% Investment Loan and any
Gains Loan, or
ii. a Capitalised Investment Loan
Adviser service fee
(100% Investment
Loan only)
28
i. 0.25%,
ii. 0.50%, or
iii. 0.75% pa of the amount of the 100% Investment Loan
and Gains Loan
You may agree to pay an adviser service fee
to your adviser by agreeing to increase the
interest rate you are charged on your loan
Paid by direct debit from the account notified
to us.
Taxation
Introduction
The following summary of the tax consequences of investing
in the product is presented in simplified language. It has been
derived from an opinion prepared for us by our tax advisers
Baker & McKenzie. The summary provides a brief description
of the common outcomes without detailing the conditions
that have to be met for these outcomes to arise. For a fuller
understanding, the Baker & McKenzie opinion can be
accessed at www.perpetual.com.au/structuredproducts/ppi3
The summary is of a general nature only. You should not rely on
it. The specific taxation consequences that apply to you depend
on your particular circumstances. You should seek professional
advice from a financial adviser and/or a tax adviser.
The summary is based on the law and administrative practice as
at 17 March 2008. Investors should be aware that the ultimate
interpretation of the taxation law rests with the Courts and that
the law and the way the Commissioner of Taxation administers
the law may change at any time.
Baker & McKenzie is not involved in the marketing of this product
and its role should not be interpreted to mean that it encourages
any party to invest.
Tax consequences
Trust distributions will include amounts subject to income tax.
They will be taxed in the year in which the trust derives the income
even though they may not be received until the following year.
Investors will generally be subject to the capital gains tax rules.
They will be taxed on any capital gains made when they sell fund
units and will be able to offset any capital losses against capital
gains they have made from the product or from any other source.
The Establishment Fee will form part of the cost base for capital
gains tax purposes.
Interest on any of the loans is generally fully deductible unless it
is not reasonably likely that the total trust distributions (that are
subject to income tax) will exceed the interest expense. In this
circumstance the Commissioner of Taxation can deny the interest
deduction if the purpose of acquiring the product was either the
tax benefits or the capital gains.
Interest paid in arrears is deductible on a daily basis as it accrues.
Prepaid interest is treated in two different ways:
For Investors who are Individuals not carrying on a business, the
interest can be claimed as a deduction upfront. Other Investors
spread the deduction over the period to which it relates.
The dynamic management fee and the administration fee are fully
deductible on a daily basis as they accrue.
If any amount of a loan does not have to be repaid under the
limited recourse terms of the loan by a Non-Superannuation
Investor, the amount of this benefit will be offset against revenue
losses, capital losses, various other deductible amounts and the
cost base of various assets.
If the Investor is a Superannuation Fund, the amount of the
benefit reduces the capital gains tax cost base of the fund units.
GST is included in most of the fees. Investors who are not
registered for GST or who do not acquire the product in the
course of a relevant business will not be able to claim input tax
credits for the GST.
There are reasonably strong arguments that the Commissioner
should not apply the anti-avoidance provisions in Part IVA to the
product.
If the Investor is carrying on a business in the United Kingdom
some amounts received may be subject to United Kingdom,
withholding tax.
Some part of a trust distribution may not be subject to income
tax but will be taxed as an adjustment to the capital gain or loss
on sale of the fund units.
Investors who are Individuals or trustees of Trusts will generally
get a 50% discount on the amount of a capital gain that is subject
to tax. For Superannuation Investors the discount is 331/3%.
A transfer of fund units from Perpetual to the Investor will not
incur capital gains tax at that time. No capital gain or loss is made
until the Investor sells the fund units.
Perpetual Protected Investments – Series 3 29
Additional information
for all Investors
Applying to invest
Processing your application
All application monies received will be held on trust in a bank
account while all applications are processed. We retain any
interest earned on this bank account.
Once your application has been accepted, your money is
transferred to your portfolio cash account and interests in the
product are issued to you on the protection start date. No interest
is earned on your portfolio cash account.
The money in your portfolio cash account is invested in the funds
you have selected on the investment date.
Receipt of information
If we do not receive the information required to complete your
application prior to the protection start date, we may decline your
application and return your money to you.
We have absolute discretion to accept or reject any application.
Tax File Number/Australian Business Number
In order to participate in the product, we require you to provide
your TFN or exemption information (if applicable).
An Australian Business Number (ABN) may be used as an
alternative to a TFN if your participation in the product is
undertaken in the course of carrying out an enterprise.
We are authorised under taxation laws to collect TFNs and ABNs
in connection with your investment in the funds.
Cooling-off rights
As an Investor in the product, you have from the time you lodge
your application until 19 days after the date we issue your interest
in the product (that is, from the protection start date) to withdraw
your investment from the product. This is the cooling-off period.
The amount that is repaid will be adjusted taking into account
any administration and transaction costs and any increase or
decrease in your portfolio value as a result of market movements
until your fund units are sold. If your portfolio contains call options
this may take up to 15 business days after the end of the coolingoff period.
Any commissions paid will be refunded. Any taxes paid which are
not recoverable or the amount of any taxes which remain payable
by us will not be refunded.
Withdrawing your investment may create a taxable gain or loss.
We recommend that you seek professional advice from your
financial and/or tax adviser.
30
Your right to be repaid during the cooling-off period does not apply
if you are a wholesale client (as defined in the Corporations Act).
If you would like your investment to be repaid during this period
you must write to us stating you would like to exercise your
cooling-off rights. Your letter must be received by us no later than
5pm on the last day of the cooling-off period.
If we receive your written request by 18 July 2008 your money will
not be invested and you will avoid any dynamic management and
administrative fees and exposure to market movements. You will
still be liable for interest charges and early repayment fees under
any loans.
You do not have any cooling-off rights as a Borrower. If you
borrow to invest and choose to withdraw from the product during
the cooling-off period, you may not be able to recover the fees
and costs of borrowing, nor any interest you have pre-paid if your
loan has been drawn down when you withdraw. You will be liable
to pay interest up to the date of repayment and may also be liable
for early repayment fees. In any event, you are liable to repay the
full amount of the loan regardless of the value of your portfolio.
Minimum level of applications for an investment strategy
We need a minimum value of applications for each investment
strategy in the product to effectively manage the investment
strategy.
If we do not receive enough applications in any particular
investment strategy, we will not be able to offer that investment
strategy as part of the product.
If this happens, based on your instructions in the application
form, we will either allocate the relevant application money across
the other investment strategies that you have selected (on a pro
rata basis) or contact you for further instructions.
Maximum level of applications for an investment strategy
We need to allocate a maximum value of applications for each
investment strategy in the product to manage the risk associated
with the investment strategy.
If any particular investment strategy is oversubscribed, we will
allocate relevant fund units on a proportionate basis, subject to a
minimum investment of $10,000.
If this happens, subject to your instructions in the application
form, we will either allocate the remaining application money
across the other investment strategies that you have selected (on
a pro rata basis) or contact you for further instructions.
How is my portfolio operated?
Power of attorney
When we accept your application you will be recorded as a
member. You have an absolute and indefeasible interest in
possession to all of the assets of your portfolio (including income)
and no interest in other Investors’ portfolios.
You grant PIML a revocable power of attorney so PIML can
instruct us to carry out the investment strategies and pay fees
and expenses on your behalf. Revoking or varying the power of
attorney will be treated as a withdrawal from the product.
Distributions
We will collect distributions on your behalf where the fund has net
income to distribute.
Distributions may be either paid into your portfolio cash account
when received or automatically reinvested. This will be at PIML’s
discretion. We will automatically deduct the administration and
the dynamic management fees for the product on instructions
from PIML in accordance with our power of attorney. We may sell
fund units to do this.
We may then automatically reinvest any balance in your cash
account following payment of fees (also in accordance with
PIML’s power of attorney) to increase your holding in fund units
and/or call options.
At PIML’s discretion, you may receive a cash distribution after
30 June each year.
Depending on your circumstances you may have to pay income
tax for your distributions regardless of whether you received
(all or part of) them in cash or they were reinvested. For more
information please see ‘Taxation’ on page 29 of this PDS.
Can I withdraw from, transfer or mortgage
my investment?
Cash withdrawals
The product is designed to provide you with your protected
amount only on the protection end date. Therefore when you
invest, you should do so with the intention of remaining in the
product for the full term to the protection end date, as any amounts
that you withdraw prior to that date are not capital protected.
Depending on the performance of the fund you invested in,
your portfolio value may be less than your investment amount
at any time prior to the protection end date. If you make a
partial withdrawal before the protection end date, the remaining
protected amount for that investment strategy will be reduced in
proportion to the amount that you withdraw.
You can request a cash withdrawal of all or part of your portfolio
value on a quarterly basis (as at 30 June, 30 September, 31
December or 31 March).
If you make a partial cash withdrawal you must withdraw at least
$10,000 (or the balance of your investment if less than $10,000)
and leave a remaining portfolio value of at least $10,000. Any
request to withdraw cash less than $10,000 will be rejected
(unless you are withdrawing the balance) and any request
which would result in a remaining portfolio value of less than
$10,000 will be deemed to be a request to withdraw the total
portfolio value.
A withdrawal request must be in writing in a form approved by us.
Please contact us to obtain the necessary form. The completed
and signed form must be received by us before 5pm on the first
business day of the last month of the relevant calendar quarter
(see table below). Any requests received after this time will not be
processed until the next withdrawal date.
Table 11 – Withdrawal dates
Withdrawal date
Written Notice to be received by 5pm on:
30 June
1st business day of June
30 September
1st business day of September
31 December
1st business day of December
31 March
1st business day of March
We will process your withdrawal request as follows:
1. a redemption request for all underlying fund units will be
submitted to the relevant fund manager(s) on the withdrawal
date (or, if that is not a business day, on the prior business day).
2. any call options in your portfolio will be exercised on the same
day. When we receive delivery of fund units (within 10 business
days after we exercise the options) we will redeem them.
In each case, the redemption of fund units is subject to the
fund’s standard redemption policies and procedures. You should
consult the relevant fund’s PDS for more information.
You are liable to pay all relevant fees and charges associated
with the product up to the withdrawal date. Your portfolio value
is subject to market movements until all fund units have been
redeemed.
The withdrawal proceeds will be net of any outstanding fees and
charges. We will endeavour to pay withdrawal proceeds to you
as soon as practicable. Proceeds will usually be available within 3
months from the withdrawal date. If, however, it is not practicable
for us to process your withdrawal within this time, we must do so
as soon as it becomes practicable in accordance with provisions
prescribed by the Corporations Act.
You should obtain financial advice before requesting a cash
withdrawal from your portfolio.
Withdrawal of the assets in your portfolio
Because you are the owner of the assets in your portfolio, at any
time prior to the protection end date you can also request that we
transfer the assets in your portfolio to you.
The value of any assets withdrawn prior to the protection end
date is not capital protected.
You should obtain financial advice before requesting withdrawal
of the assets from your portfolio.
Perpetual Protected Investments – Series 3 31
To withdraw fund units from your portfolio you must hold an
individual account with the relevant fund to which we will transfer
the units. If there are any call options in your portfolio UBS has
the right to bring forward the exercise date of the call options. If
UBS does this before they are transferred to you, we will exercise
the call options for you (in accordance with our power of attorney)
and the relevant fund units received will also be transferred to
your individual fund account.
Withdrawal of cash or assets where you have a loan
If you have borrowed to invest, you must repay a proportionate
amount of your Investment Loan (and any Annual Interest Loan
or any Gains Loan) when you withdraw cash or assets from your
portfolio.
If you are a Non-Superannuation Investor and the cash withdrawal
proceeds are less than the amount which then becomes due and
payable under your loans when you make a withdrawal prior to the
protection end date, you will have to make a payment to us from
your own money which is equal to the shortfall.
Mortgage of fund units
We may, in our absolute discretion, note certain mortgagee
interests over an investment (including any distribution reinvested
from that investment).
Superannuation Investors may not grant a charge over their
investment in the product.
Transfers
A transfer of your interest in the product (that is a transfer of your
rights as registered holder of your portfolio) will only be accepted
in the case of death, incapacity or change of trustee and will only
processed at a withdrawal date (see Table 11 above).
In these circumstances we require written instruction in
accordance with the notice requirements set out under ‘Cash
withdrawals’ above and any other documents we consider
appropriate. Nominal stamp duty will apply.
To transfer any fund units in your portfolio to another person you
will need to withdraw them from your portfolio (see ‘Withdrawal
of the assets in your portfolio’ above) and then direct the relevant
fund manager or responsible entity to transfer them to the other
person on your behalf. Transfers to another person will only be
possible where permitted by the constitution and PDS for the
relevant fund.
A transfer of fund units or of your interest in the product may
have tax implications. You should seek financial advice before
requesting a transfer.
What happens at the protection end date?
At the protection end date we will exercise any call options in your
portfolio to buy fund units and then transfer custody of all your
fund units to you or to an IDPS platform nominated by you. We
will process the final withdrawal as soon as practicable following
the protection end date. We can only transfer custody to you if
you meet the requirements of the fund for minimum investment
amounts or if the responsible entity of the fund agrees to waive
them for you.
32
If you do not meet the minimum investment requirements, the
responsible entity of the fund does not accept your application,
or if you fail to give us instructions, we will redeem the fund units
on your behalf and pay the cash proceeds to you. This may have
tax implications (see Taxation on page 29).
The value of your fund units at the protection end date will be net
of outstanding fees and charges. If there is insufficient cash in
your cash account at the protection end date to pay outstanding
fees and charges, we will sell some of the fund units to do so
(in accordance with our power of attorney). We will then transfer
custody of the remaining fund units according to your instructions.
Your fund units will not be capital protected after the protection
end date and their value may fall between the protection end date
and the date of transfer.
We will process the final withdrawal as soon as practicable
following the protection end date.
Where can I get information about my account?
Online account access
You can access information about your portfolio online, including:
b a list of your accounts
b your portfolio’s asset allocation
b a list of investments in each of your accounts
b a summary of transactions
b a detailed list of transactions.
You can also download this information in a format that may be
accessed by many other applications, for example accounting
software or a spreadsheet.
To register for Online Account Access please complete the
relevant section on the application form. Please refer to the
Online Account conditions of use at www.perpetual.com.au/
structuredproducts/ppi3
Continuous disclosure documents
The product may be subject to certain regular reporting and
disclosure obligations. Copies of the documents lodged with ASIC
in relation to the product may be obtained from an ASIC office.
As an Investor in the product you have the right to the following
documents from us:
b the annual financial report (including financial statements) we
lodged with ASIC for the product
b any half-year financial report (including financial statements)
lodged with ASIC for the product
b any continuous disclosure notices provided by us in respect
of the product after lodgement of the above mentioned annual
financial report and before the date of this PDS.
Reports
We will send you:
b an investment confirmation, confirming your investment in
the product
b an initial investment statement showing your fund units and the
protected amount this equates to
b a distribution statement detailing any distribution from your
fund units
b an annual financial report for each financial year ending
30 June (including financial statements) sent within three
months of year-end (optional)
b an annual tax statement for each financial year ending 30 June,
generally sent by the end of August, detailing income and capital
gains information for your tax return. This includes realised
capital gains and losses on disposal of assets in your portfolio
b a periodic statement at least yearly or when you exit the product
b a withdrawal statement for any withdrawal(s) you make from
the product.
These reports will also be sent to your adviser.
What do you do with my personal
information?
Privacy
Privacy laws apply to the way we and the Lender handle your
personal information.
We and the Lender collect information about you from your
application form to establish and support the administration
of your portfolio and to advise you of new developments. By
applying to invest in the product and to borrow to invest, you
agree with this usage.
Your application can’t be processed and your portfolio can’t be
administered if you don’t provide your personal information.
The Corporations Act requires us to collect some personal
information from you before we issue your interest in the product.
You will be entitled to access all your personal information that
we and the Lender hold about you (subject to limited exceptions)
and can ask us to correct information that is wrong. If you would
like to access your personal details or have any questions, please
contact us.
Disclosure
We maintain a record of the information required to establish your
account. This may include some of your personal information that
is provided to us. We may disclose your personal information to:
b external parties that provide services to us in relation to the
product (eg providers of printing or postal services)
b other members of the Perpetual Group for the purposes
described under ‘Your privacy’ above.
We also disclose information about your investments to your
adviser. We will not disclose your personal information to any
other parties unless required by law.
Our privacy policy is at www.perpetual.com.au.
Enquiries and complaints
If you have an enquiry, you can either call the Perpetual Protected
Investment Services Centre toll free on 1800 002 513 during
business hours (Sydney time) or write to:
Reply Paid 5126
Perpetual Protected Investments,
GPO Box 5126,
Sydney NSW 2001.
We will endeavour to respond to your enquiry within 30 days.
If you are not completely satisfied with the service you have
received please contact us and we will respond within five
business days. We will make every effort to resolve your issue
within 30 days of us being notified.
If your complaint remains unresolved after 45 days and the
disputed amount is less than $100,000 (or $150,000 from
1 July 2008), you may refer it to the Financial Industry
Complaints Service (FICS) on 1300 780 808.
We are a member of FICS, an external dispute resolution service
that helps resolve issues with financial service providers.
FICS’s address is:
PO Box 579,
Collins Street West,
Melbourne, Victoria 8007
Tel:
1300 780 808.
Website is: www.fics.asn.au
Consents
All companies whose statements are included in this PDS have
consented to the statements made by them and in the context in
which they appear.
The investment managers have prepared and consented to the
statements about them in this PDS. The companies that have
consented have not withdrawn their consent before the issue
date of this PDS and have not authorised or caused the issue of
this PDS.
Constitution
This product is a managed investment scheme governed by its
constitution (Constitution) and regulated under Chapter 5C of
the Corporations Act 2001 (Corporations Act). Perpetual is the
responsible entity of the product.
The Constitution is executed by Perpetual for the benefit of
Investors and each Investor is entitled to enforce the Constitution.
The terms of your portfolio (other than your instructions which
appear in the power of attorney) are detailed in the Constitution.
Perpetual Protected Investments – Series 3 33
The following summary lists other important terms of the
Constitution.
Property held on trust
We hold each portfolio in a separate trust for the relevant Investor
and may appoint a custodian to hold the assets of the portfolios.
Commencement, duration and winding-up
The product starts when we first receive application monies and
issue interests in the product. We may end the product by giving
at least a month’s notice to Investors. The product will end just
before the 80th anniversary of the date of the Constitution, if it is
not wound up before then.
When the product ends, we must (unless assets are transferred
to Investors) realise the assets and distribute the net proceeds
(after paying fees and liabilities) to the Investors. Following
distribution, we are discharged from further obligations.
Subject to the Corporations Act, we are not liable to the Investors
in contract, tort or otherwise for loss suffered in relation to the
product, except if the loss is caused by our fraud or breach of trust.
Subject to the Corporations Act, our liability to any person
(including an Investor) in respect of the product is limited to the
extent to which we are indemnified out of the assets for that liability.
We are not required to do anything:
b unless we are satisfied that our liability is satisfactorily limited
b for which we do not have full indemnity of the assets available
for that purpose and in respect of which there are sufficient
assets to fully discharge any such liability we consider.
We may retire when we want to and may appoint another
company to be the new responsible entity, subject to the
Corporations Act.
Issue of interests in the product
Rights and liabilities of Investors
We can set minimum levels for applications and portfolio values
and restrict when applications can be made. We can also reject
an application without giving reasons.
Your liability as an Investor with respect to the product is limited
to the value of your portfolio. You may be liable for a greater
amount under any loan arrangements.
An interest in the product is issued on the later of the receipt of
application money, approval of the application and the protection
start date.
We may convene a meeting of Investors at any time as prescribed
by the Corporations Act and must do so on receipt of Investors’
request made in accordance with the Corporations Act.
You do not become a member of the product and you do not
acquire any rights as a member until your application is processed
and your name is entered in the register of members for the
product. No certificates will be issued unless we decide to do so.
Changing the Constitution
Our investment powers
We must invest the assets of a portfolio as instructed by the
Investor. Subject to this restriction we have the power in relation
to the product that is legally possible for a natural person,
trustee, or corporation to have, including dealing in any property
(including any financial product).
Our rights and liabilities
We have rights to charge certain fees and to an indemnity for
expenses and other liabilities. We and our associates may:
b deal with our associates, the product, any Investors and
ourselves in relation to the product and we may be acting in
different capacities
b be interested in any contract or transaction with our associates,
the product or any Investor and retain for our own benefit any
associated profits or benefits
b act as responsible entity, trustee, investment manager or
similar capacity for any other scheme, subject to acting in
accordance with our duties under the Corporations Act.
To the extent permitted by the Corporations Act and any
indemnity allowed by the Corporations Act, we are entitled to be
indemnified from your cash account for any liability incurred by us
in the proper performance of our duties or powers in relation to
the product.
34
We may change the Constitution, subject to the Corporations Act.
Corporations Act requirements
Subject to any relief we may obtain, the terms of the Constitution
are subject to the requirements of the Corporations Act. This
means we must do certain things, including:
b holding application money in a complying account until the
interest in the product is issued or the money is repaid. We will
retain any interest on this money
b repaying the amount required by the Corporations Act if an
Investor exercises their cooling-off rights
b valuing assets in accordance with the compliance plan and
when required by the Corporations Act
b preparing accounts of the product (or cause them to be
prepared) in accordance with generally accepted accounting
principles as they apply to managed investment schemes,
ensuring that the accounts are maintained, audited and
reported on as prescribed by the Corporations Act
b appoint an independent registered company auditor to audit
the accounts of the product.
Instructions from Investors
You may only provide instructions to us to deal with the assets in
your portfolio by way of the power of attorney in the form contained
in Section 5 of the application form attached to this PDS.
Anti-Money Laundering / Counter Terrorism
Financing Laws
The rules
The Anti-Money Laundering and Counter-Terrorism Financing Act
2006 (AML/CTF Act) regulates financial services and transactions
in a way that is designed to detect and prevent money laundering
and terrorism financing.
Under the AML/CTF Act, we are required:
b to verify your identity before providing services to you, and to
re-identify you if we consider it necessary to do so
b where you supply documentation relating to the verification of
your identity, we must keep a record of this documentation for
7 years.
To ensure we comply with our obligations under the law,
Perpetual has implemented a number of measures and controls,
including carefully identifying and monitoring investors.
Consequences of compliance
As a result of the implementation of our compliance program:
b transactions may be delayed, blocked, frozen or refused where
we have reasonable grounds to believe that the transaction
breaches Australian law or the law or sanctions of any other
country
b where transactions are delayed, blocked, frozen or refused we
are not liable for any loss you suffer (including consequential
loss) as a result of our compliance with the
AML/CTF Act as it applies to the fund.
b we may from time to time require additional information from
you to assist us in this process.
Reporting obligations to AUSTRAC
We have certain reporting obligations pursuant to the
AML/CTF Act. The legislation prevents us from informing you
that any such reporting has taken place.
Where legally obliged to do so, we may disclose the information
gathered to regulatory and/or law enforcement agencies,
including AUSTRAC, who is responsible for regulating the
AML/CTF Act.
Perpetual Protected Investments – Series 3 35
Financial Services Guide
Issued by: Perpetual Investment Management Limited,
ABN 18 000 866 535 AFSL 234426
Dated 17 March 2008
About this Financial Services Guide
This Financial Services Guide (FSG) is an important document,
which we are required to give you in accordance with the law.
It provides you with information about Perpetual Investment
Management Limited which is a member of the Perpetual Group
(which means Perpetual Limited ABN 86 000 431 827 and its
subsidiaries). Perpetual Investment Management Limited is
referred to in this FSG as ‘PIML’, ‘we’, ‘us’ or ‘our’.
Words that appear in italics (like this) are defined in the Glossary
on pages 38 to 39 of the PDS.
This FSG will help you understand the financial services that PIML
provides and to determine whether or not you should use them. It
includes details about:
b how PIML can be contacted
b the financial services PIML is authorised to provide
b how PIML is remunerated
b the internal and external dispute resolution procedures that you
can access if you have a complaint about PIML’s services.
The information contained in this FSG is general information only
and has been prepared without taking into account any particular
person’s needs or objectives. PIML provides no warranty
regarding the suitability of any of the services described in this
FSG for any person.
Financial services provided by PIML
The financial services that we are authorised to provide that are
relevant to the product are described below.
We are also authorised to provide other financial services and
we will provide you with another FSG setting out details of
these authorisations before we provide any such services to
you. We are authorised to deal in financial products: applying
for, acquiring, varying or disposing of financial products on
behalf of another person in respect of the following classes of
products: deposit products, derivatives and interests in managed
investment schemes to retail clients.
PIML, acting in its personal capacity will provide dynamic
management services to you in respect of your portfolio by
giving instructions (on your behalf) to Perpetual in its capacity as
responsible entity of the product and trustee of your portfolio.
36
By giving dynamic management services instructions we will
arrange for the acquisition, holding and disposal of fund units, call
options and your cash account in accordance with your selected
investment strategies.
The dynamic management services are described in detail on
page 6 of the PDS.
Remuneration for the services provided
You will pay a dynamic management fee of 0.70% pa of your
protected amount (reduced to Nil if no fund units are held).
The dynamic management fee will be calculated daily on your
protected amount and deducted from your portfolio quarterly in
arrears, on withdrawal from the product and on the protection
end date.
The dynamic management services are provided to you as the
holder of a portfolio in the product. We will receive other fees in
relation to, the product as, set out in the section headed ‘Fees
and other costs’ on page 18 of the PDS.
We may also receive fees as the responsible entity of funds in
which you may invest through the product, as shown on page 18
of the PDS.
If you borrow to invest in the product, Perpetual Loan Company
No. 2 Limited will receive interest payments, fees and other
charges as set out on pages 16 of the PDS.
We are also entitled to charge administration fees (see Table 1
‘Product fees and other costs’ on page 18).
Who we act for
When providing the dynamic management services to you, PIML
acts on its own behalf.
However, when PIML gives dynamic management services
instructions to Perpetual (as the trustee of your portfolio) on your
behalf, we act on your behalf under our power of attorney.
Relationships with other entities
PIML is the issuer of the product and the issuer of some of the
funds in which you may invest through the product as disclosed in
the PDS. PIML is related to Perpetual Loan Company No. 2 Limited
who issues loans to Investors for investment in the product.
Product disclosure statements and statements of advice
You should also receive a product disclosure statement (PDS)
in relation to the product and for the relevant fund for each
investment strategy in which you invest through the product,
before you apply for investment in the product.
The PDSs contain important information relating to an investment
in the product and you should read them carefully.
If you receive advice from a financial adviser in relation to
investing in the product, you should also receive a statement of
advice, which includes important information about the suitability
of the product for you.
Providing instructions to us
Unless otherwise stated in the PDS, we require you to provide all
instructions to us in writing, signed by you.
Where those instructions are of a purely administrative nature, we
will act in accordance with those instructions.
If your instructions require us to act in the capacity of a trustee
or responsible entity, we will consider your instructions in
accordance with our legal obligations.
Personal information
Privacy laws apply to the handling of personal information. Any
personal information that we collect about you will be handled
according to our Privacy Policy.
Our Privacy Policy can be viewed on our website
www.perpetual.com.au or a copy obtained by contacting us
(our contact details are provided on the inside back cover of this
Combined PDS and FSG).
You may be entitled to access all personal information that
PIML holds about you. You also have the right to ask us to
correct information about you that is inaccurate, incomplete
or out of date. If you would like access or have any questions,
please contact us (our contact details are provided on the back
cover of this Combined PDS and FSG).
Professional indemnity insurance
We have adequate professional indemnity insurance in place to
cover us for the financial services we provide.
Contact details for FICS are as follows:
PO Box 579,
Collins Street West,
Melbourne, Victoria 8007
Tel:
1300 780 808.
Website is: www.fics.asn.au
Australian Securities and Investments Commission
You can also contact the Australian Securities and Investments
Commission (ASIC) on 1300 300 630 to make a complaint and to
obtain further information about your rights.
Online account access
If you choose to have online account access (see page 70), we
will post your login ID and password to your address separately
(for security purposes), including instructions on how to activate
your login details online.
Conditions of use
The conditions of use of the online account can be found
at www.perpetual.com.au/structuredproducts/ppi3. These
conditions form part of this PDS and are deemed to be agreed to
by you when you submit a completed application form attached
to this PDS.A copy of the Conditions of Use for Online Account
Access can also be obtained from us free of charge on request
by phoning 1800 002 513.
Direct Debit Request Service Agreement
When you complete the application form you must provide us
with a direct debit authority and are deemed to agree to the
terms of our Direct Debit Request Service Agreement. The terms
of this agreement must be read prior to completing the Direct
Debit Authorisation and can be found at www.perpetual.com.au/
structuredproducts/ppi3. These terms form part of this PDS.
A copy of the Direct Debit Request Service Agreement can also
be obtained from us free of charge on request by phoning
1800 002 513.
Complaints
If you have a complaint about the service provided, you should
call or write to us (our contact details are provided on the inside
back cover of the (combined PDS and FSG).
If you do not get a satisfactory outcome, you can contact the
Financial Industry Complaints Service to help you settle your
complaint.
Financial Industry Complaints Service
The Financial Industry Complaints Service (FICS) is an external
dispute resolution scheme which provides free advice and
assistance to consumers and Investors to help them in resolving
complaints relating to members of the financial services
industry. This includes managed investment schemes, pooled
superannuation trusts, financial advice, investment advice and
sales of financial or investment products.
Perpetual Protected Investments – Series 3 37
Glossary
100% Investment Loan
Loan offered for purposes of funding 100% of investment amount on pages 23 and 24.
Applicant
A person who completes and signs the application form.
AFSL
Australian Financial Services Licence.
Annual Interest Loan
Loan available to prepay interest annually in conjunction with a fixed rate 100% Investment Loan.
ASIC
The Australian Securities and Investment Commission.
Borrower
The borrower under the Loan and Security Agreement.
business day
A day that banks are open in Sydney and London.
call option(s)
Interests under the Call Option Agreement which gives the holder the right but not the obligation
to purchase funds units at a predetermined price on exercise of the call option.
The responsible entity will acquire call options from UBS on behalf of Investors.
Call Option Agreement
Master Call Option Confirmation Agreement between UBS and Perpetual in relation to the dynamic
management of the product.
Capitalised Investment Loan
Investment Loan offered on pages 24 and 25.
cash account
The cash account set up for each investment strategy that forms part of your portfolio. See page 6
for further details.
Corporate
A company registered with ASIC and holding a current Australian Company Number.
Corporations Act
The Corporations Act 2001 (Cth) and the Corporations Regulations 2001 (Cth).
dynamic management
A formula-based technique that seeks to safeguard your protected amount on the protection end date. It
allocates the assets in your portfolio between fund units and cash and call options (see page 6).
Dynamic Management Services
Agreement
The Dynamic Management Services Agreement between UBS and PIML which governs the provision of
dynamic management services by UBS to PIML (see page 6).
fund
A managed investment scheme that is offered or substituted as part of an investment strategy under the
product.
gains lock-in
An increase in your protected amount when certain conditions are satisfied (see page 2).
gearing
Borrowing money to invest with the intention that the return generated from the investment will be greater
than the cost of the borrowing.
Guarantor
The person (if any) who guarantees the Borrower’s obligations under the Loan and Security Agreement.
high water mark
The highest previous fund value (after adjustment for applications and redemptions), which is sometimes
used to determine performance fees. The manager will only receive performance fees when the fund
value is greater than its previous value.
IDPS
Investor Directed Portfolio Service.
Income Tax Assessment Act
The Income Tax Assessment Act 1936 or Income Tax Assessment Act 1997 as applicable.
Individual
A natural person over the age of 18 years.
investment amount
The total amount you invested in the product including your own principal contribution plus any amount
borrowed under an Investment Loan.
Investment Loans
The 100% Investment Loan (see pages 22 to 23) and the Capitalised Investment Loan (see pages
24 to 25).
investment strategy
An investment strategy available under the product through which you can obtain capital protected
exposure to a selected fund using dynamic management.
Investor
The registered holder of an interest in the product, which may include an Individual, Corporate, trustee,
or Superannuation Fund
Investor ID
Identification number to be used each time you contact Perpetual either by telephone or writing.
This number is also the registration number to enter the secure area of the website (if registered for
Perpetual’s website). An Investor will be issued one Investor ID for this product.
38
Lender
Perpetual Loan Company No. 2 Limited (ABN 40 008 739 035), (a subsidiary of Perpetual Limited which
provides the loans under the Loan and Security Agreement.
Lender’s Swap
A Master Gap Risk Protection Swap Agreement between the Lender and UBS dated on or about the
date of this PDS whereby in exchange for a fee (‘swap premium’) UBS agrees to pay to the Lender any
difference between the value of portfolios and the protected amounts at the protection end date.
Loan and Security Agreement
The agreement between the Borrower, the Guarantor (if applicable) and the Lender containing all the
terms and conditions of any loans offered in this PDS. A free copy of the agreement can be obtained at
www.perpetual.com.au/structuredproducts/ppi3 or by contacting us on 1800 002 513.
Loan–to-Value Ratio (or LVR)
The total value of the principal, interest and any other amounts outstanding under a loan, divided by the
value of the assets over which the Lender has security for repayment of that loan.
margin call
A payment required by a borrower to reduce the amount outstanding under a loan and restore the LVR
to an agreed amount in circumstances where the value of the relevant assets decreases.
maturity date1
The date your loan is repayable under the Loan and Security Agreement, being 31 May 2015.
Non-Superannuation Borrower
An investor other than a Superannuation Investor who borrows to invest in the product.
Non-Superannuation Investor
Investors other than Superannuation Funds.
offer period1
The period from and including the date the offer opens (26 May 2008), to and including the date the offer
closes (27 June 2008).
Partnership
Two or more individuals operating a business together with a view to making a profit.
Perpetual entities
Means Perpetual Investment Management Limited, Perpetual Trustee Company Limited, and Perpetual
Loan Company No. 2 Limited.
portfolio
The investments relating to an investment strategy under the product which comprises fund units, a
cash account and call options (if any). You will have a separate portfolio for each investment strategy you
select.
portfolio protection floor
A hypothetical value used to determine how much of your portfolio may be invested in a fund. It is equal
to the amount you would need to invest in fixed interest investments (at the relevant date) to grow to an
amount equal to the protected amount by the protection end date (See page 3).
portfolio value
The sum of the redemption proceeds of your fund units, the dollar amount of your cash account and the
market value of your call options (if any) in your portfolio.
power of attorney
An agreement whereby you appoint a person (attorney) to carry out actions on your behalf.
principal contribution
The amount of your own money invested in relation to a Capitalised Investment Loan or an investment only.
product
Perpetual Protected Investments – Series 3. The term product in this PDS does not include a loan.
protected amount
Your investment amount and any proportion of unrealised gains (gains lock-in) which are protected
during the protection period. If you withdraw any amounts prior to the protection end date, the protected
amount will be reduced in proportion with your withdrawal.
protection agreements
The Dynamic Management Services Agreement, the Call Option Agreement and the Lender’s Swap.
protection end date1
The date the capital protection under the product ends, which is 31 May 2015.
protection period
The period during which the capital protection under the product applies, which is from the protection
start date to the protection end date.
protection start date1
The date the capital protection under the product begins, which will be on or about 25 July 2008.
Superannuation Borrower
A Superannuation Investor who borrows to invest in the product.
Superannuation Fund
A superannuation fund that is a regulated superannuation fund for the purposes of section 19
of the Superannuation Industry (Supervision) Act 1993 (‘SIS Act’) including a self-managed
superannuation fund.
Superannuation Investor
An Investor who invests as the trustee of a Superannuation Fund.
Trust
A trust arrangement documented under a formal trust instrument.
trustee
A person (either a natural person or a body corporate) who holds property for the benefit of another.
The trustee owes a fiduciary duty to the beneficiaries of the trust and may deal with trust property only
as permitted by the terms of the trust as set out in the trust instrument and/or legislation and/or general
trust law.
UBS
Means UBS AG, London branch.
unincorporated association,
club, charity
A group of individuals working together with a common goal but not for the purposes of making
a commercial profit.
units
A legal interest in the underlying unit trust constituting a fund.
volatility
The extent of fluctuation in an asset’s price. The higher the volatility, the less certain an investor is
of return, and therefore volatility is one measure of risk.
1 Dates and times are indicative only and subject to change
Perpetual Protected Investments – Series 3 39
Contacts
Mail
Phone
Fax
Online
Reply Paid 5126
Perpetual Protected Investments
GPO Box 5126
Sydney NSW 2001 Australia
Investors
1800 002 513
02 8256 1416
Account Access Online
www.perpetual.com.au
Product and loan general information online
www.perpetual.com.au/structuredproducts/ppi3
Advisers
1800 002 513
Email
ppi@perpetual.com.au
No stamp required if posted in Australia
Transactions/changes
Mail
Make an
investment
✓
Make a partial or complete
withdrawal
✓
Fax
Phone
Online
What do I do?
–R
ead the current PDS and send us the completed
‘Application for investment’ form with your cheque or loan
application and supporting documentation.
Before the cut-off date for each quarterly withdrawal date:
✓
– send us a withdrawal form
–w
rite or fax us with your Investor ID and account ID, the
percentage you would like to withdraw from a particular
investment strategy or from your portfolio as a whole
(across all your investment strategies). Please sign and
date this document.
Change my contact details
✓
✓
✓
✓
–P
hone us with your new contact details. You’ll be asked
some security questions and your Investor and account ID.
–W
rite or fax us stating your name, Investor and account ID,
your old address and your new address. Please sign and
date this document.
40
Who can apply?
To invest you must be:
b over 18 years-of-age and not under a legal disability;
b an Australian resident for tax purposes. You must be an Australian resident operating from Australia for Australian tax purposes and
you must be not be carrying on a business in the UK. This restriction applies to individuals, corporates, trusts and guarantors (see
pages 21-22 ‘United Kingdom Taxation’ and ‘United Kingdom Withholding Tax’ for further details); and
b an eligible Investor as shown in the following table (see Glossary for definitions).
Investor
Eligible to Invest
Eligible for a
Capitalised
Investment Loan
Eligible for a 100%
Investment Loan (and
optional Interest Loan
Individual
YES
YES
YES
Corporate
YES
YES
YES
Individual trustee
YES
YES
YES
Corporate trustee
YES
YES
YES
Superannuation fund trustee – single trustee
YES
YES
NO
Superannuation fund trustee – joint trustees
YES
YES
NO
Joint investors
NO
NO
NO
Partnership
NO
NO
NO
Unincorporated associations, club, charities
NO
NO
NO
We reserve the right to accept or reject applications at our sole discretion.
Perpetual Protected Investments – Series 3 41
How to apply
To invest in Perpetual Protected Investments – Series 3, and
to obtain an Investment Loan you must complete the following
Application Form and submit it to us, along with all required
supporting documentation, so we receive your original
application before 5pm (AEST) Friday 27 June, 2008.
Application requirements
If you are investing using all your own money, or by making a
Principal contribution with a Capitalised Investment Loan please
include your cheque made payable to PIML – PPI3 (Investors
name), with your application. Alternatively we can direct debit
your nominated bank account.
We require a certified copy of photo identification that includes
a signature, such as a driver’s licence or passport, from all
persons signing the application form as (or on behalf of)
an Investor, Borrower or Guarantor.
If you are applying for a loan you must complete the loan
application section in the application form and submit it, along
with all required supporting documentation, with your application
for investing in the product. If approved, your loan proceeds will
be automatically drawn down and invested on your behalf. Loan
repayments will be direct debited from your nominated bank
account.
Unless we receive additional authorised signatory information, the
directors, company secretary or attorney signing the application will
be the only authorised signatories for the company’s investment
and loans(s) where applicable. You can add authorised signatories
by notifying us in writing, signed by authorised company officers
and all new authorised signatories, and providing us with proof of
identity for the new signatory (as above).
How to submit your application
Trustee Applicants
Please send us your application form, supporting documents
(and cheque if applicable) to one of the addresses listed below.
We must receive your original application (not a photocopy or fax)
before 5pm (AEST), Friday 27 June 2008.
All trustee applicants must supply a certified copy of the trust
deeds along with either a solicitors certificate or a request for
Perpetual to review (refer page 4 of the application form).
By mail (no stamp required if posted in Australia)
Reply Paid 5126
Perpetual Protected Investments
GPO Box 5126
Sydney NSW 2001
If the application is signed under a power of attorney, please send
the original power of attorney or a certified copy of it to us with
your application. If signed under power of attorney, the attorney
certifies that he or she has not received notice of revocation of
the power of attorney.
If mailing please post no later than Tuesday, 24 June 2008
to avoid missing the closing date due to mail delays.
What happens after your application has been submitted
In person
Perpetual Protected Investments
New South Wales
Level 12
Angel Place
123 Pitt Street
Sydney NSW 2001
42
Proof of identity
To comply with the new Anti-Money Laundering and
Counter Terrorism Financing Act (AML/CTF Act), we
require Proof of Identity from ALL signatories
Company signatories
Attorneys
We will send you a notification confirming receipt of your
application and notify you or your financial Adviser if your
application is approved and any conditions of approval. If you
choose to have Online Account Access to view your portfolio, you
will also receive your login details within a month of the protection
start date.
Supporting documents for loans
If applying for a 100% Investment Loan (with optional Annual Interest Loan) the following identifies when and what supporting
documentation is required.
Please note the dollar limit quoted in the tables below include total borrowings across ALL Perpetual Protected Investment series.
Income verification requirements (mandatory)
Individual or Individual trustee PAYG (one of the following)
Letter of
employment
The letter of employment must be typed and signed by an appropriate representative (Payroll Officer / Manager,
HR Manager OR Owner of the business).
The letter needs to be on the employer’s letterhead and must include the employer’s Australian Business Number (ABN).
The letter of employment must be dated and needs to confirm:
–
–
–
–
–
Date the employee commenced work
Position held
Basis of employment (full-time / part-time / casual)
Income earned (confirming any overtime)
Bonuses &/OR Allowances received
The letter of employment must not be more than two months old at time of initial assessment and approval.
Two consecutive
payslips
Two consecutive payslips will need to be provided with the latest payslip not being more than two months old. Where
the payslips do not demonstrate a consistent level of income received, such payslips can be annualised to determine
a consistent annual income amount – particularly where the year to date figure consists of overtime and/or shift
allowances received in addition to the base income.
Payslips will need to note:
–
–
–
–
–
Borrower’s name
Employer’s name and ABN
Pay period
Amount earned during pay period + Break-up of income received (base income, overtime, allowances, etc.)
include the year to date figure.
Cash pay envelopes and handwritten payslips are NOT acceptable.
PAYG Summary
and payslip
The most recent financial year’s PAYG Summary must be provided along with a payslip not being more than two
months old.
Hand written PAYG Summaries must be accompanied with the corresponding tax assessment notice.
The PAYG Summary must include:
– Employer’s name and ABN
– Borrower’s name and residential address
– Total Income amount received (incorporating any allowance received).
The payslip will need to note:
–
–
–
–
Last two years
tax returns
Borrower’s name
Employer’s name and ABN
Pay period
Total Income amount earned during the pay period + break-up of the income received (base income, overtime and
allowances etc) and include the year to date figure.
The last two years Personal Tax Returns that have been completed by a registered tax agent.
If the borrower is a director of a company, the last two years company returns will need to be provided, along with the
corresponding financial statements.
Partnership and Trust returns will need to be provided where income is derived via these means.
Individual or Individual trustees self-employed
Last two years
tax returns
The last two years Personal Tax Returns that have been completed by a registered tax agent.
If the borrower is a director of a company, the last two years company returns will need to be provided, along with the
corresponding financial statements.
Partnership and Trust returns will need to be provided where income is derived via these means.
Perpetual Protected Investments – Series 3 43
Corporate or Corporate trustee
Corporate
A copy of the full financials (including balance sheets and profit and loss statements) of the company showing the last
two years’ details, signed by an authorised officer and confirmation of the director’s income (as per Individuals above).
Trust
Trust
A copy of the full financials (including balance sheets and profit and loss statements) of the Trust showing the last two
years’ details, signed by an authorised officer and confirmation of the director’s income (as per Individuals above).)
Plus
Verification as required for the trustee from the above list.
Asset verification requirements
Asset verification requirements – where total Perpetual Protected Investments Series loans are $600,000 or greater
Shares and
managed funds
Copies of latest share holdings statements
Cash
Copies of bank statements showing cash holdings.
Statements are to be no older than one month.
Copies of Fixed Term Deposit Certificates, must still be current.
Property
Most recent rates notices or copy of the Certificate of Title.
Where a liability is outstanding on the property, copy of the most recent loan statement evidencing the liability.
44
Guide to completing
the application form
If you wish to apply to invest in Perpetual Protected Investments –
Series 3 you must complete the application form attached to the
PDS in accordance with the following instructions.
Read and complete:
Section 1
All Applicants
Section 5
Checklist
Section 1
Investing your own money only
Section 2
Section 5
Section 1
Capitalised Investment Loan
Section 3
Section 5
Section 1
100% Investment Loan
& optional Annual Interest Loan
Section 4
Section 5
Appendices
Where required
Adviser
Section 7
Perpetual Protected Investments – Series 3 45
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Perpetual Protected Investments – Series 3
Combined Financial Services Guide and Product Disclosure Statement dated 17 March 2008
Issued by Perpetual Investment Management Limited ABN 18 000 866 535 AFSL 234426
Application form
Wealth Focus Pty Ltd
PO Box 760
Manly NSW 1655
Tel 1300 55 98 69
Dealer Group Number: 51229609
Section 1
Applicant Details
(all applicants to complete)
For your application to proceed you must sign below.
I confirm that I have read and understood the
Supplementary PDS dated 23 May 2008
Signature
Signature
(same signatories as required in Section 5(c))
page 1 of 30
47
Perpetual Protected Investments – Series 3
Application form
Section 1 – Applicant details
Investor type (please indicate one)
g Individual (in personal capacity)
g Trust – Individual trustee
g Superannuation Investor – joint trustee
g Corporate (in own capacity)
g Trust – Corporate trustee
g Superannuation Investor – Corporate trustee
g Capitalised Investment Loan
g 100% Investment Loan + optional Annual Interest
Investment type (tick one only)
g Investment Only
(Complete Section 2)
(Complete Section 3)
Loan (Complete Section 4)
Tax residency status
Are you an Australian resident for tax purposes?
g yes g no
If no, you are not eligible to invest in this product.
Are you carrying on a business in the United Kingdom?
g yes g no
If unsure, please contact your adviser.
If yes, you are not eligible to invest in this product.
Please note that you should advise us of any subsequent change to your tax residency status or if you start to carry on a business
in the United Kingdom.
1(a) – Personal Details – Individual investor, trustee and Guarantor
Surname
Given name(s)
Title
Marital status
ggggggggggggggggggggggggg
ggggggggggggggggggggggggg
Mr g Mrs g Miss g Ms g Other
Date of birth g g g g g g g g
g g g g g g g g g g g male g female g number of dependents g g
Have you ever had an alias,
or been known by another name?
g no g Drivers Licence Number g g g g g g g g g
gggggggggggggggggggg
If yes, please provide your other name(s)
Residential address g g g g g g g g g g g g g g g g g g g g g g g g g
Suburb g g g g g g g g g g g g g
State g g g
Postcode g g g g
Postal address
ggggggggggggggggggggggggg
Suburb g g g g g g g g g g g g g
State g g g
Postcode g g g g
Phone (after hours) g g g g g g g g g g Phone (business hours) g g g g g g g g g g
Mobile g g g g g g g g g g Fax g g g g g g g g g g
Email g g g g g g g g g g g g g g g g g g g g g g g g g
Tax file number g g g g g g g g g ABN g g g g g g g g g g g
OR Exemption g g g g g g g g g g g g g g g g g g g g g g g g g
yes
(if different from above)
1,3
1,3
2,3
1.Existing clients (Australian Investors only): We will use the Tax File Number (TFN) & Australian Business Number (ABN) or Exemption you have
previously advised unless you request us not to. If you do not wish Perpetual to use the TFN & ABN or Exemption already quoted, please tick
the box on the right. For information regarding the provision of TFNs & ABNs or Exemptions please see page 30 of the PDS.
2.If exempt, please specify. If due to pension or allowance, please state full name of benefit, eg Age Pension. For information regarding the provision
of TFNs & ABNs or Exemptions please see page 30 of the PDS.
3.Guarantors and trustees are not required to complete the TFN, ABN or Exemption sections. A TFN, ABN or Exemption for a trust or Superannuation Investor is
to be provided in section 1(c).
48
page 2 of 30
Wealth Focus Pty Ltd
PO Box 760
Perpetual Protected Investments – Series 3Manly
Application form
NSW 1655
Tel 1300 55 98 69
Dealer Group Number: 51229609
1(a) – Personal Details (continued)
Previous residential
address
(if less than three years at
your current address)
Suburb
Country
Occupation
Employment status
Present employer
(if self employed state,
the trading name)
How long with
employer?
Employer phone
Previous employer
(if less than three years at
the current employer)
Previous employer?
ggggggggggggggggggggggggg
g g g g g g g g g g g g g State g g g Postcode g g g g
ggggggggggggggggggggggggg
ggggggggggggggggggggggggg
PAYG g
self-employed g
ggggggggggggggggggggggggg
g g / g g (years/months)
full-time g
part-time casual g
contracting g
gg gggg gggg
ggggggggggggggggggggggggg
g g / g g (years/months)
full-time g
part-time casual g
contracting g
1(b) – Corporate and Corporate trustee (to be completed by Corporate and Corporate trustee Investors)
ggggggggggggggggggggggggg
Registered address
ggggggggggggggggggggggggg
Suburb g g g g g g g g g g g g g
State g g g
Postcode g g g g
Country g g g g g g g g g g g g g g g g g g g g g g g g g
Trading address
ggggggggggggggggggggggggg
Suburb g g g g g g g g g g g g g
State g g g
Postcode g g g g
Country g g g g g g g g g g g g g g g g g g g g g g g g g
Contact name g g g g g g g g g g g g g g g g g g g g g g g g g
Direct Phone g g g g g g g g g g Phone (switch) g g g g g g g g g g
Tax file number g g g g g g g g g ABN g g g g g g g g g g g
OR exemption g g g g g g g g g g g g g g g g g g g g g g g g g
g Yes
g No
Is the company regulated?
g ASIC g ATO
g APRA OTHER
If yes, indicate by whom:
Company name
(if different from above)
(if different from above)
1,3
1
2,3
If the company is licensed by the above organisation(s), please provide license numbers:
1.Existing clients (Australian Investors only): We will use the Tax File Number (TFN) & Australian Business Number (ABN) or Exemption you have
previously advised unless you request us not to. If you do not wish Perpetual to use the TFN & ABN or Exemption already quoted, please tick
the box on the right. For information regarding the provision of TFNs & ABNs or Exemptions please see page 30 of the PDS.
2.If exempt, please specify. If due to pension or allowance, please state full name of benefit, eg Age Pension. For information regarding the provision
of TFNs & ABNs or Exemptions please see page 30 of the PDS.
3.Guarantors and trustees are not required to complete the TFN, ABN or Exemption sections. A TFN, ABN or Exemption for a trust or Superannuation Investor is
to be provided in section 1(c).
page 3 of 30
49
Perpetual Protected Investments – Series 3
Application form
1(c) – Trust or Superannuation Investor
Please complete this section for the Trust or Superannuation Investor and enter the trustee details in sections 1a and 1b above as
appropriate.
Name of Trust or
Superannuation Fund
Tax file number1
OR exemption2
ggggggggggggggggggggggggg
ggg ggg ggg
ABN g g g g g g g g g g g
ggggggggggggggggggggggggg
1
Where there are multiple or joint trustees all are to complete Appendix B.
1.Existing clients (Australian Investors only): We will use the Tax File Number (TFN) & Australian Business Number (ABN) or Exemption you have previously advised unless you request us not to. If you do not wish Perpetual to use the TFN & ABN or Exemption already quoted, please tick
the box on the right. For information regarding the provision of TFNs & ABNs or Exemptions please see page 30 of the PDS.
2.If exempt, please specify. If due to pension or allowance, please state full name of benefit, eg Age Pension. For information regarding the provision of TFNs &
ABNs or Exemptions please see page 30 of the PDS.
Certification from trustee’s solicitors
Trustee applicants are required to provide a certificate from their solicitor confirming details of the trust deed as set out in Appendix A.
I am submitting the following to Perpetual
g a Trustee Solicitor’s Certificate (Appendix A) signed by the trustee’s solicitor OR
g please have Perpetual review the trust documents and charge the fee of $330 (including GST) to my nominated bank account.
In all cases a certified copy of the Trust Deed including any amendments must be provided with your
application form
1(d) – Notifications (must be completed by all Investors)
Existing Clients
If you are a current investor with Perpetual Protected Investments, please complete:
Investor ID
gggggggg
Account ID
gggggggg
Online Account Access
I would like to view my investment details online. (Refer to page 32 and 37 of the PDS)
g Yes g No
Annual Financial Report
I would like to receive the PPI Annual Financial Report. Where no selection is made, an Annual
Financial Report will NOT be sent automatically each year. (Refer to page 32 of the PDS)
g Yes g No
Tax invoice (only complete if you require a tax invoice)
I am registered for GST and would like to receive tax invoices for product and/or loan related fees payable to Perpetual. (including
Adviser Service Fee if applicable)
Applicable ABN
50
page 4 of 30
ggggggggggg
Wealth Focus Pty Ltd
PO Box 760
Perpetual Protected Investments – Series 3 Manly
Application form
NSW 1655
Tel 1300 55 98 69
Dealer Group Number: 51229609
1(e) – Payments
1(e)(i) – Banking details (to be completed by all Investors)
Please nominate the bank account you would like your distributions from the product deposited into. This account must be in
the name of the Investor. If you are an Individual Investor, a joint bank account can be nominated, however, you must be one
of the holders of the joint account.
If you have applied for a loan, all payments due to the Lender under the loan (including without limitation payments on account
of principal, interest, fees and expenses) will be debited from this account.
If there are insufficient funds in your account, a direct debit dishonour fee (currently $50) will be charged by Perpetual. Your bank
may charge additional fees.
Account name
Financial institution
Branch
Branch number (BSB)
ggggggggggggggggggggggggg
ggggggggggggggggggggggggg
ggggggggggggggggggggggggg
ggg ggg
Account number g g g g g g g g g
1(e)(ii) – Direct debit authority (to be completed by all Investors)
I request and authorise the Lender, Perpetual Loan Company No. 2 Limited ABN 40 008 739 035, (debit user identification
number 338418) and Perpetual Investment Management Limited (PIML) 18 000 866 535 (debit user ID number 367531) to arrange
for any amount the Lender may debit or charge me pursuant to the terms of any loan, or any amount I have agreed to pay in regard
to the product to be debited through the bulk electronic clearing system from the account identified above, subject to the terms
and conditions of the direct debit request service agreement which I have read and hereby confirm my agreement with
(refer www.perpetual.com.au/structuredproducts/ppi3 and page 37 of the PDS).
All required account signatories must sign below. If it’s a company account, then the authorised signatories must sign.
Given name(s)
Surname
ggggggggggggggggggggggggg
ggggggggggggggggggggggggg
Signature
Given name(s)
Surname
Date
g g g g g g g g
g I confirm I am individually authorised to operate the joint account specified in 3a.
ggggggggggggggggggggggggg
ggggggggggggggggggggggggg
Signature
For all bank account related enquiries including rejected
distributions and dishonoured direct debits, please contact:
Date
g Myself
g g g g g g g g
g My adviser (if applicable)
If we cannot contact your adviser within the first 48 hours, we will contact you for these enquiries
Please proceed as follows – (one option only)
1. Investing your own money only – go to Section 2
2. Capitalised Investment Loan – go to Section 3
3. 100% Investment Loan and optional Annual Interest Loan – go to Section 4
page 5 of 30
51
Perpetual Protected Investments – Series 3
Application form
Section 2
Investment Only – No Loan
(only to be completed if you are investing only
your own money with no loan required)
Complete only one of Sections 2, 3 or 4
52
page 6 of 30
Wealth Focus Pty Ltd
PO Box 760
Perpetual Protected Investments – Series 3 Manly
Application form
NSW 1655
Tel 1300 55 98 69
Dealer Group Number: 51229609
Section 2 – Investment Only – (Do not complete if you are applying for a loan)
The minimum investment is $25,000 if you are investing your own money. If you are paying by cheque, please make the cheque
payable to PIML – PPI3 (Investors name). Alternatively Perpetual can direct debit these funds from your nominated bank account.
Please indicate below.
g g g g g g g g Minimum Investment amount $25,000 then increments in multiples of $5,000.
g I have enclosed a cheque for the above amount OR g Please direct debit my nominated bank account
Investment amount $
If direct debiting, we will direct debit the account nominated in section 1(e) above on or close to Monday, 14 July 2008
Investment Instructions
Asset class – fund
ARSN
Investment amount (minimum investment per
strategy $10,000 and then in increments of $500)
Australian equity funds
Ausbil Australian Active Equity Fund
089 996 127
$
,
,
0
0 . 0
0
Ausbil Australian Emerging Leaders Fund
089 995 442
$
,
,
0
0 . 0
0
Challenger Wholesale Australian Share Fund
091 189 132
$
,
,
0
0 . 0
0
Perpetual’s Wholesale Australian Fund
091 189 132
$
,
,
0
0 . 0
0
Schroder Wholesale Australian Equity Fund
100 857 823
$
,
,
0
0 . 0
0
Vanguard Australian Shares Index Fund
090 939 718
$
,
,
0
0 . 0
0
AXA Wholesale Global Equity Value Fund
098 445 464
$
,
,
0
0 . 0
0
DWS Global Equity Thematic Fund
090 379 105
$
,
,
0
0 . 0
0
GVI Global Industrial Share Fund
112 369 552
$
,
,
0
0 . 0
0
Perpetual’s Wholesale International Share Fund
091 186 837
$
,
,
0
0 . 0
0
T. Rowe Price Global Equity Fund
121 250 691
$
,
,
0
0 . 0
0
Vanguard International Shares Index Fund (Hedged)
121 250 691
$
,
,
0
0 . 0
0
Aberdeen Asian Opportunities Fund
106 201 236
$
,
,
0
0 . 0
0
Colonial First State Wholesale Global Resources Fund
087 561 500
$
,
,
0
0 . 0
0
IOOF/Perennial Global Property Trust
118 190 542
$
,
,
0
0 . 0
0
Macquarie International Infrastructure Securities Fund
115 990 611
$
,
,
0
0 . 0
0
Merrill Lynch Global Allocation Fund (Aust) (Class D Units)
114 214 701
$
,
,
0
0 . 0
0
Perpetual’s Wholesale Ethical SRI Fund
099 975 041
$
,
,
0
0 . 0
0
Platinum Asia Fund
104 043 110
$
,
,
0
0 . 0
0
Premium China Fund
116 380 771
$
,
,
0
0 . 0
0
$
,
,
0
0 . 0
0
Global equity funds
Specialist funds
Total investment amount
page 7 of 30
53
Perpetual Protected Investments – Series 3
Application form
Your money may need to be reallocated if:
• the minimum requirements of an investment strategy are not met causing it to be withdrawn from the product
(Please refer to ‘Additional Information’ on page 30 of the PDS); or
• the maximum amounts for an investment strategy are exceeded (see page 30 of PDS).
Please tick the box below if you would like to be contacted about the way your money is reallocated, otherwise we will reallocate
your money pro-rata across the investment strategies you have selected.
g Please contact me to confirm the reallocation of my money if necessary.
If I can’t be contacted within 24 hours, please
g reallocate that portion of my money pro rata across my other investment strategies,
g refund that portion of my money to my account nominated in 1(e)
Please proceed to Section 5, Declarations, representations, consents, acknowledgements and signatures.
54
page 8 of 30
Perpetual Protected Investments – Series 3
Application form
Section 3
Capitalised Investment Loan
(Complete this section if you are contributing
your own Principal to the investment and also
require a Capitalised Investment Loan)
See pages 21 and 24 to 28 of the PDS
Complete only one of Sections 2, 3 or 4
page 9 of 30
55
Perpetual Protected Investments – Series 3
Application form
Section 3 – Capitalised Investment Loan
3(a) – Principal Contribution
The minimum principal contribution is $25,000.00 plus increments of $5,000.
Principal contribution $
ggggggggggg
Your loan amount will be set based on a Loan to Value Ratio (LVR) determined by Perpetual on or close to Friday 20 June 2008 (at the same time final interest
rates are set)
g I have enclosed a cheque for the above amount
– OR –
g Please direct debit my nominated bank account
If direct debiting, we will direct debit your nominated bank account on or close to Monday, 14 July 2008
3(b) – Declaration as to purpose of loan (to be completed by all Individual Investors applying for a loan)
IMPORTANT: You should not sign this declaration unless this loan is wholly or predominantly for business or investment purposes
(or both). By signing this declaration you may lose your protection under the Consumer Credit Code.
I declare that the credit to be provided to me by the Lender (credit provider) is to be applied wholly or predominantly for business
or investment purposes (or both).
Borrower name
Borrower signature
56
page 10 of 30
ggggggggggggggggggggggggg
Date
g g g g g g g g
Perpetual Protected Investments – Series 3
Application form
3(c) – Investment Instructions
The minimum total principal contribution is $25,000, with a minimum principal contribution of $5,000 per investment strategy.
Asset class – fund
ARSN
Principal Contributions per Investment Strategy
(minimum $5,000 then in increments of $500)
Australian equity funds
Ausbil Australian Active Equity Fund
089 996 127
$
,
,
0
0 . 0
0
Ausbil Australian Emerging Leaders Fund
089 995 442
$
,
,
0
0 . 0
0
Challenger Wholesale Australian Share Fund
091 189 132
$
,
,
0
0 . 0
0
Perpetual’s Wholesale Australian Fund
091 189 132
$
,
,
0
0 . 0
0
Schroder Wholesale Australian Equity Fund
100 857 823
$
,
,
0
0 . 0
0
Vanguard Australian Shares Index Fund
090 939 718
$
,
,
0
0 . 0
0
AXA Wholesale Global Equity Value Fund
098 445 464
$
,
,
0
0 . 0
0
DWS Global Equity Thematic Fund
090 379 105
$
,
,
0
0 . 0
0
GVI Global Industrial Share Fund
112 369 552
$
,
,
0
0 . 0
0
Perpetual’s Wholesale International Share Fund
091 186 837
$
,
,
0
0 . 0
0
T. Rowe Price Global Equity Fund
121 250 691
$
,
,
0
0 . 0
0
Vanguard International Shares Index Fund (Hedged)
121 250 691
$
,
,
0
0 . 0
0
Aberdeen Asian Opportunities Fund
106 201 236
$
,
,
0
0 . 0
0
Colonial First State Wholesale Global Resources Fund
087 561 500
$
,
,
0
0 . 0
0
IOOF/Perennial Global Property Trust
118 190 542
$
,
,
0
0 . 0
0
Macquarie International Infrastructure Securities Fund
115 990 611
$
,
,
0
0 . 0
0
Merrill Lynch Global Allocation Fund (Aust) (Class D Units)
114 214 701
$
,
,
0
0 . 0
0
Perpetual’s Wholesale Ethical SRI Fund
099 975 041
$
,
,
0
0 . 0
0
Platinum Asia Fund
104 043 110
$
,
,
0
0 . 0
0
Premium China Fund
116 380 771
$
,
,
0
0 . 0
0
$
,
,
0
0 . 0
0
Global equity funds
Specialist funds
Total investment amount
Your money may need to be reallocated if:
• the minimum requirements of an investment strategy are not met causing it to be withdrawn from the product
(Please refer to ‘Additional Information’ on page 30 of the PDS); or
• the maximum amounts for an investment strategy are exceeded (see page 30 of PDS).
Please tick the box below if you would like to be contacted about the way your money is reallocated, otherwise we will reallocate
your money pro-rata across the investment strategies you have selected.
g Please contact me to confirm the reallocation of my money if necessary.
If I can’t be contacted within 24 hours, please
g reallocate that portion of my money pro rata across my other investment strategies,
g refund that portion of my money to my account nominated in 1(e)
Once your loan amount has been determined, your money will be allocated in the same proportions as the above selections.
Please proceed to Section 5, Declarations, representations, consents, acknowledgements and signatures.
page 11 of 30 57
Perpetual Protected Investments – Series 3
Application form
Section 4
100% Investment Loan
& optional Annual Interest Loan
(only to be completed if you require
one or both of the above options)
See pages 21 and 24 to 26 of the PDS
Complete only one of Sections 2, 3 or 4
58
page 12 of 30
Perpetual Protected Investments – Series 3
Application form
Section 4 – 100% Investment Loan & optional Annual Interest Loan
4(a) – Application summary
The minimum loan amount is $50,000.00 plus increments of $5,000.
g I would like a 100% Investment Loan for my total investment which is $ g g g g g g g g g g g
g I would also like an Annual Interest Loan. Please note – Annual Interest Loans are capped at a maximum of the interest
payable on a 100% Investment Loan of $750,000.
4(b) – Loan application
4(b)(i) – 100% Investment Loan interest rate options
The rates below are interest rate options for the 100% Investment Loan. We will set the actual interest rates for the first
interest period on or as soon as practicable after Friday, 20 June 2008. You can see the indicative and actual rates at
www.perpetual.com.au/structuredproducts/ppi3 or phone 1800 002 513.
Interest rate option
(select one only)
Payment
g
Variable
Interest will be debited monthly from your nominated bank account on
the last business day of each month commencing 31 July 2008.
g
Fixed annually
Prepaid interest will be debited from your nominated bank account on
or close to 30 June each year commencing 30 June 2008.
g
Fixed for the term
Prepaid interest will be debited from your nominated bank account on
or close to 30 June each year commencing 30 June 2008.
* All automatic direct debits will be processed at the close of business on the last business day of the relevant month.
Interest payments will be debited from the bank account that you nominated in section 1(d)(i).
4(b)(ii) – Declaration as to purpose of loan (to be completed by all Individual Investors applying for a loan)
IMPORTANT: You should not sign this declaration unless this loan is wholly or predominantly for business or investment purposes.
By signing this declaration you may lose your protection under the Consumer Credit Code.
I declare that the credit to be provided to me by the Lender (credit provider) is to be applied wholly or predominantly for business
or investment purposes (or both).
Borrower name
ggggggggggggggggggggggggg
Borrower signature
Date
g g g g g g g g
4(b)(iii) – Adviser service fee1 (optional)
I agree to pay an adviser service fee of:
g 0.25% pa g 0.50% pa g 0.75% pa of my 100% Investment Loan.
Borrower name g g g g g g g g g g g g g g g g g g g g g g g g g
Signature
Date
g g g g g g g g
1The adviser service fee is inclusive of 10% GST and represents the total amount which will be deducted from your nominated bank account by us to pay
your adviser on your behalf. This fee is added to the loan interest rate and taken as part of the interest charge from your nominated bank account.
page 13 of 30 59
Perpetual Protected Investments – Series 3
Application form
4(c) – Statement of financial position
Assets
Share
%
Amount $
Liabilities
Share
%
Amount $
Property (residence)
$
,
,
Mortgage (residence)
$
,
,
Property (investment)
$
,
,
Mortgage/loans
(investment)
$
,
,
Cash
$
,
,
Personal loans
and leases
$
,
,
Shares
$
,
,
Credit cards
$
,
,
Motor vehicles
$
,
,
$
,
,
Other (specify)
Other (specify)
Total
Annual Income
$
,
,
$
,
,
Total
Amount $
Annual expenses
Amount $
Salary (gross)
$
,
,
Mortgage/rent (residence)
$
,
,
Rent (gross)
$
,
,
Mortgage/loan payments (investment)
$
,
,
Dividends (gross)
$
,
,
Personal loan, and lease payments
$
,
,
Credit card
$
,
,
Living expenses and school fees
$
,
,
$
,
,
$
,
,
Other gross income (specify)
Total
$
,
,
Other (specify)
$
,
,
Total
If you are applying for a 100% Investment Loan you must provide supporting documentation. (Please refer to the ‘Supporting
documents for loans’ section on page 43 of the PDS for a list of required documents).
60
page 14 of 30
Perpetual Protected Investments – Series 3
Application form
4(d) – Investment Instructions
The minimum investment is $50,000.
Asset class – fund
ARSN
Investment amount (minimum investment per
strategy $10,000 and then in increments of $500)
Australian equity funds
Ausbil Australian Active Equity Fund
089 996 127
$
,
,
0
0 . 0
0
Ausbil Australian Emerging Leaders Fund
089 995 442
$
,
,
0
0 . 0
0
Challenger Wholesale Australian Share Fund
091 189 132
$
,
,
0
0 . 0
0
Perpetual’s Wholesale Australian Fund
091 189 132
$
,
,
0
0 . 0
0
Schroder Wholesale Australian Equity Fund
100 857 823
$
,
,
0
0 . 0
0
Vanguard Australian Shares Index Fund
090 939 718
$
,
,
0
0 . 0
0
AXA Wholesale Global Equity Value Fund
098 445 464
$
,
,
0
0 . 0
0
DWS Global Equity Thematic Fund
090 379 105
$
,
,
0
0 . 0
0
GVI Global Industrial Share Fund
112 369 552
$
,
,
0
0 . 0
0
Perpetual’s Wholesale International Share Fund
091 186 837
$
,
,
0
0 . 0
0
T. Rowe Price Global Equity Fund
121 250 691
$
,
,
0
0 . 0
0
Vanguard International Shares Index Fund (Hedged)
121 250 691
$
,
,
0
0 . 0
0
Aberdeen Asian Opportunities Fund
106 201 236
$
,
,
0
0 . 0
0
Colonial First State Wholesale Global Resources Fund
087 561 500
$
,
,
0
0 . 0
0
IOOF/Perennial Global Property Trust
118 190 542
$
,
,
0
0 . 0
0
Macquarie International Infrastructure Securities Fund
115 990 611
$
,
,
0
0 . 0
0
Merrill Lynch Global Allocation Fund (Aust) (Class D Units)
114 214 701
$
,
,
0
0 . 0
0
Perpetual’s Wholesale Ethical SRI Fund
099 975 041
$
,
,
0
0 . 0
0
Platinum Asia Fund
104 043 110
$
,
,
0
0 . 0
0
Premium China Fund
116 380 771
$
,
,
0
0 . 0
0
$
,
,
0
0 . 0
0
Global equity funds
Specialist funds
Total investment amount
Your money may need to be reallocated if:
• the minimum requirements of an investment strategy are not met causing it to be withdrawn from the product
(Please refer to ‘Additional Information’ on page 5 of PDS); or
• the maximum amounts for an investment strategy are exceeded (see page 5 of PDS)
• your loan is approved for a lesser amount (for Investors applying for a loan).
Please tick the box below if you would like to be contacted about the way your money is reallocated, otherwise we will reallocate
your money pro-rata across the investment strategies you have selected.
g Please contact me to confirm the reallocation of my money if necessary.
If I can’t be contacted within 24 hours, please
g reallocate that portion of my money pro rata across my other investment strategies,
g reduce my investment by that amount
Please proceed to Section 5, Declarations, representations, consents, acknowledgements and signatures.
page 15 of 30 61
Perpetual Protected Investments – Series 3
Application form
Section 5
Declarations, representations,
consents, acknowledgements
and signatures
(All applicants, trustees and Guarantors to read and sign)
62
page 16 of 30
Perpetual Protected Investments – Series 3
Application form
Section 5 – Declarations, representations, consents, acknowledgements
and signatures
5(a) – Borrower/Guarantor consents and acknowledgements
1.I declare that:
(a)I am duly authorised to complete this application;
(b)all information provided as part of this application is true and correct;
(c)I have read the PDS for the product and for the relevant funds I am applying for and I understand the risks associated with an
investment in the funds;
(d)I agree to be bound by the terms of this PDS for the product;
(e)I am not aware of any current or anticipated liquidation or bankruptcy proceedings against me;
(f) I have read and understood the terms of the Loan and Security Agreement and agree to be bound by them;
2.I acknowledge that:
(a)the Lender:
(i) has not authorised or caused the issue of the product;
(ii)takes no responsibility for any part of the product or the funds; and
(iii)does not endorse or recommend investment under the product;
(b) my obligations under the Loan and Security Agreement including repaying the loan and paying interest costs, fees and charges
are not affected by:
(i) the success or failure of any fund;
(ii)the level of return from or loss of money invested in the fund units; or
(iii)any illegality in connection with any funds;
(c)Investments in the funds are not deposits with, or other liabilities of, the Lender, its related bodies corporate or affiliates,
and are subject to investment risk, including possible delays in repayment and loss of income or capital invested. The Lender
and its related bodies corporate do not guarantee any particular rate of return or the performance of the funds nor do they
guarantee the repayment of capital invested; and
3.If acting as a trustee, I declare that I am duly authorised under the trust deed to borrow, invest and (subject to superannuation
laws) grant security over the assets in my portfolio and acknowledge personal liability if this or my other representations are false.
Use of information
1.I agree:
(a)the information in this application form and any other information provided by me for this application (Information) is to allow the
application for the loan to be processed and, if the application is successful, to allow the loan, and my obligations as Borrower/
Guarantor under the loan, to be administered and enforced. It may also be used and/or disclosed to the Lender’s affiliates
and contracted service providers (the Entities) to offer investment and loan products to me;
(b)should I fail to provide the Entities with any required information, the application for the loan may be refused and fund units will
not be issued to the Investor, and the Entities will not be liable for any loss arising as a result;
(c)the Information may be collected, held, used and disclosed by the Entities in accordance with the Privacy Act 1988 (Cth)
and, I consent to the Entities disclosing my Information to a person authorised by me and notified to any Entity
in writing as my representative, to the relevant fund investment managers and clearing houses, and foreign regulators;
(d)the Entities will not be liable to me for the unauthorised accessing and releasing of any Information
(except to the extent arising from the Entities’ gross negligence or fraud); and
(e)I may request access to my information by contacting the Lender.
2.I consent to the Entities (and any other party who has an interest in the provision of the loans under the product):
(a)using commercial credit information about me to assess an application for consumer or commercial credit or whether to accept
me as a Guarantor for credit applied for by, or provided to the Investor, and assessing my creditworthiness;
(b)using consumer credit information about me provided by a credit reporting agency to assess an application for consumer or
commercial credit, to assess my creditworthiness, to collect, overdue payments from me and to avoid defaulting on my obligations;
(c)giving to another credit provider (including one that has lent money on the same security) any information about my
creditworthiness, credit standing, credit history or credit capacity. In particular, the Entities may provide a reference on me;
(d)giving to any broker, financial consultant, accountant, lawyer or other adviser acting in connection with financing for me
any consumer or commercial credit information;
page 17 of 30 63
Perpetual Protected Investments – Series 3
Application form
(e)disclosing any report or personal information about me to another party in connection with funding involving securitisation;
(f) providing personal information and any of the above to my adviser; and
(g)giving a credit reporting agency personal and commercial information about me, including the following where applicable:
(i)information that is reasonably necessary to identify me (eg. name, gender, date of birth and current or last known address,
current or last known employer, driver’s licence number);
(ii) the fact that credit has been applied for and the amount;
(iii) that the Lender is a current credit provider to me;
(iv)that I am at least 60 days overdue in making a payment, including an interest payment, and that the Lender
has taken steps to recover the amount (including any interest outstanding);
(v)information about any overdue payment by me as the Guarantor under the guarantee given against default
by the Investor in repaying the amount;
(vi) that a cheque for more than $100 was drawn by me and was dishonoured twice;
(vii) that in the opinion of the Lender, I have committed a serious credit infringement;
(viii)that I am not and have not been overdue in making payments;
(ix) that the Lender is not a current credit provider for me;
(x) that the credit provided by the Lender has been paid or otherwise discharged;
(xi) that a court judgment has been made against me; and
(xii) that bankruptcy orders have been made against me.
Loan security
1.I declare that the Investment Loan is only being used to acquire an interest in the product (your portfolio).
2.I acknowledge that:
(a)my beneficial interest in the portfolio will be subject to a charge (or other arrangement compliant with superannuation laws) in
favour of the Lender
(b)after acquisition of my portfolio, the issuer will (if applicable) deliver to the Lender (or a nominee of the Lender):
(i) any title documents relating to my portfolio; and
(ii)any other documents relating to the loan.
Power of attorney for the Loan(s)
I appoint the Lender (the attorney) as my/our valid attorney in fact with full power to sign and deliver on my behalf any instruction
which is necessary for the Loan and Security Agreement or the protection of the interests of the Lender or the exercise of the powers
of the Lender.
I further authorise the attorney to do the following in respect to any of the documents referred to above
1.complete any blanks;
2.make any amendments or additions;
3.instruct the operator of any relevant managed discretionary account service or any broker or other person in respect to any
dealings (including any lodgements, applications, redemptions, releases and payment method and destination account of
any distribution of application of proceeds) with my interests in my portfolio (including the fund units);
4.perform any action which should have been done to make the relevant documents valid; and
5.attend to the stamping or registration of any documents referred to above, together with all related and ancillary documentation.
I declare that anything done by the attorney pursuant to the powers given to them will be binding on me as if those acts had been
done by me. I agree to indemnify the attorney against any loss or costs it suffers or incurs in exercising these powers. The attorney
may exercise the powers even if it involves a conflict of duty or conflict of interest.
I may revoke this power of attorney in writing at anytime.
Director’s declaration (for directors of Corporates and Corporate trustees only)
I am a director of the Investor named in Section 1b (Corporate) and certify to the Lender that:
1.all details currently noted on the ASIC register for the Investor are correct and up to date;
2.the board of directors of the Investor (Board) has passed a resolution approving the transactions (Transactions) contemplated
by the application form and the Loan and Security Agreement (the Documents) and authorising execution and delivery of the
application form (and thereby the Loan and Security Agreement) by the attorney;
3.I have made due enquiry of all the Investor’s other directors. On the basis this enquiry, to the extent that any director of the Investor
has an interest in the Transactions, all disclosures that are required by law have been made;
4.in approving the Documents and the Transactions, the Board:
(a)considers that the Investor is receiving fair value under the Documents and the Transactions;
64
page 18 of 30
Perpetual Protected Investments – Series 3
Application form
(b)has resolved that the Investor’s entry into and performance of the Documents and the Transactions is in the best interests
of the Investor;
(c)believes that the Investor can pay its debts as they become due, is not engaged or about to engage in business for which its
financial resources are unreasonably small, will be able to perform its obligations under the Documents and the Transactions
when required and will not become unable to pay its debts as they fall due as a result of its entry into the Documents and
the Transactions;
5.the execution of this application form is a proper exercise of power by the Investor having obtained all necessary authorisations and
consents to do so;
6.I am not aware of any liquidation proceedings that have been commenced or are anticipated by the Investor;
7.no additional consents are required by the Investor for entry into, execution or performance of the Transactions or the Documents
and they will not cause the Investor to be in breach of any obligation or law affecting it, and
8.the Investor is not a strata corporation.
5(b) – Investor declarations, representations, consents and acknowledgements
(For all applicants)
Power of attorney for the product
In consideration of Perpetual issuing the product, I appoint Perpetual (in its personal capacity) as my attorney to give instructions
to Perpetual (as the responsible entity for the product) for implementing my investment strategies in accordance with the dynamic
management and the PDS and paying for my portfolio expenses. This includes the power to give instructions to:
1.pay the fees and charges for which I am liable as set out in this PDS and my share of additional expenses, if any, payable under
the constitution for the product (including my share of any amounts payable under the Call Option Agreement which are referable
to the other) as they fall due from my cash account;
2.exercise call options and/or sell/redeem fund units to ensure that my cash account balance is sufficient to pay the above fees,
charges and expenses or to repay the aggregate benefit referred to in paragraph 3 below;
3.use the funds in my cash account and/or the income from my portfolio to buy fund units, call options and other assets in
accordance with my investment strategies or to repay any aggregate benefit accruing to my portfolio as a result of an error in the
application of the investment strategy so as to correct the error and ensure that the investment strategy continues to be applied
accurately;
4.enter into and exercise call options and pay call option premiums; and
5.otherwise deal with the assets in my portfolio in accordance with the relevant investment strategy.
I may revoke the power of attorney in writing at any time and agree that doing so will result in a termination of my participation
in the product.
Declaration of representations and acknowledgements
By signing this application form, you agree:
1.You have read and understood this PDS agree to be bound by its terms, and the constitution for the product. You understand the
risks that have been set out and that there may be other risks. You have considered your goals, financial situation and needs and
have decided that the product is suitable for you. In making this decision, you have taken independent financial, tax, accounting
and legal advice as you think fit;
2.you are over 18 years of age and have full legal capacity to make this application, including granting the power of attorney;
3.you have provided your/the Applicant’s tax file number (TFN), australian business number (ABN) or exemption on the basis
that we will:
(a)comply with the law that authorises and governs its collection, storage, security and disposal;
(b)apply it to all your investments and interests within the service;
P
lease note: You have not committed an offence if you do not provide your TFN, ABN or exemption. However,
we will be unable to process the application until your (the Applicant’s) TFN, ABN or exemption has been provided to us.
4.you are an Australian resident operating from Australia for Australian tax purposes and are not carrying on a business in the United
Kingdom; and
5.you acknowledge that we may have a material interest in a transaction entered into, with or for you. You authorise us to execute
transactions in these situations including dealing as principal in the fund units you are subscribing for, buying or selling or providing
services to other persons with interests in or who are proposing to subscribe for, buy or sell such fund units.
6.If acting as trustee on behalf of a Trust or Superannuation Fund you declare:
(a)you are duly authorised under the relevant trust deed to make this application;
(b)you are not prevented from granting the power of attorney; and
(c)the Trust documents provided to Perpetual are all the documents for the Trust.
page 19 of 30 65
Perpetual Protected Investments – Series 3
Application form
Administration fee and dynamic management fee
1.In consideration for the services provided to me under the product, I agree to pay the administration fee and the dynamic
management fee. (For more information, please refer to ‘Fees and other costs’ table on page 18 of the PDS.)
Consent to recording
I, 1. consent to the recording of all telephone conversations for this application or for future conversations about the
product or loans with or without the automatic tone warning device;
2. agree to obtain consent of, and give notice of such recording to, any of my personnel that may be affected by it; and
3. agree that recordings may be submitted in evidence in any proceedings relating to this application; and
4. agree that the Perpetual is not obliged to maintain copies of such recordings and transcripts for the benefit of any other party.
(end of page)
66
page 20 of 30
Perpetual Protected Investments – Series 3
Application form
Section 5(c) – Signatures
If signed under power of attorney, the attorney hereby certifies that he or she has not received notice of revocation of that power
and has the power to appoint a sub-attorney. (The signature of the attorney must be done in the presence of a witness who must
also sign and complete the ‘Witness’ section provided below. The original power of attorney, or a certified copy, must also be sent to
Perpetual, if not previously provided.
5(c)(i) – Individual or Individual trustee Investor (or their attorney)
Name
ggggggggggggggggggggggggg
Signature
Date
g g g g g g g g
Date
g g g g g g g g
Witness of attorney
I declare the attorney(s) above is/are personally known to me.
Witness signature
Witness name
Witness address
ggggggggggggggggggggggggg
ggggggggggggggggggggggggg
5(c)(ii) – Corporate or Corporate trustee Investor
Executed by the company in accordance with subsection 127(1) of the Corporations Act by authority of its director/s.
Full name
capacity
ggggggggggggggggggggggggg
g sole director
g director
g attorney
Signature
Full name
capacity
Date
g g g g g g g g
ggggggggggggggggggggggggg
g sole director
Signature
g director
g attorney
Date
g g g g g g g g
5(c)(iii) – Loan Guarantor (must be signed by the director acting as Guarantor for a Corporate or
Corporate trustee Investor)
I have obtained independent legal and financial advice and understand my obligations as the Guarantor.
Signature of Guarantor must be done in the presence of a witness who must complete the ‘Witness’ section above.
Guarantor name
Guarantor signature
Witness name
Witness signature
ggggggggggggggggggggggggg
Date
g g g g g g g g
ggggggggggggggggggggggggg
Date
g g g g g g g g
page 21 of 30 67
Perpetual Protected Investments – Series 3
Application form
Section 6
Checklist
(complete for all applicants)
68
page 22 of 30
Perpetual Protected Investments – Series 3
Application form
Investor Type
Investment Option
Requirements
Individual Investor
Investment Only
Section 1 – Applicant Details g
g
Section 2 – Investment Only
Section 5 – Declarations, representations, consents,
acknowledgements and signatures
g
g
g
Section 7 – Adviser Information (if applicable)
Cheque OR direct debit authority for the full investment amount
Capitalised Investment Loan
g
g
Section 1 – Applicant Details
Section 3 – Capitalised Investment Loan
Section 5 – Declarations, representations, consents,
acknowledgements and signatures
g
g
g
Section 7 – Adviser Information (if applicable)
Cheque OR direct debit authority for capital contribution amount
100% Investment Loan AND
Annual Interest Loan
g
g
g
g
Section 1 – Personal Details
Section 4 – 100% Investment Loan
Section 5 – Signatures, consents & acknowledgements
Section 7 – Adviser Information (if applicable)
Income verification in one of the following forms:
g
g
g
g
1. Letter of employment
2. Two consecutive payslips
3. PAYG summary and payslip
4. Last two years’ tax returns
100% Investment Loan > $600,000
Same as for 100% Investment Loan plus asset verification as follows:
Latest share holding statements – Shares and managed funds
Copies of bank statements – Cash or Term Deposits
Most recent rates notice or copy of Certificate of Title – Property
Identification
Corporate Investor
In compliance with the new Anti-Money Laundering and Counter-Terrorism Financing Act (AML/CTF) certified
copies of photographic identification must be provided for all individuals, individual trustees, company directors
and guarantors to the application
Investment Only
Section 5 – Declarations, representations, consents,
acknowledgements and signatures
g
g
g
Section 7 – Adviser Information (if applicable)
Cheque OR direct debit authority for the full investment amount
g
g
Section 1 – Applicant Details
Section 3 – Capitalised Investment Loan
Section 5 – Declarations, representations, consents,
acknowledgements and signatures
g
g
g
Section 7 – Adviser Information (if applicable)
Cheque OR direct debit authority for capital contribution amount
100% Investment Loan AND
Annual Interest Loan
g
g
g
g
g
g
Section 1 – Personal Details
Section 4 – 100% Investment Loan Section 5 – Signatures, consents & acknowledgements
Section 7 – Adviser Information (if applicable)
Income verification in one of the following forms:
Last two years’ financial statements and Taxation returns
100% Investment Loan > $600,000
Same as for 100% Investment Loan plus asset verification as follows:
Latest share holding statements – Shares and managed funds
Copies of bank statements – Cash or Term Deposits
Most recent rates notice or copy of Certificate of Title – Property
Identification
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Section 1 – Applicant Details
Section 2 – Investment Only
Capitalised Investment Loan
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In compliance with the new Anti-Money Laundering and Counter-Terrorism Financing Act (AML/CTF) certified
copies of photographic identification must be provided for all individuals, individual trustees, company directors
and guarantors to the application
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69
Perpetual Protected Investments – Series 3
Application form
Investor Type
Investment Option
Requirements
Trust Investor
Investment Only
Section 1 – Applicant Details
Section 2 – Investment Only
Section 5 – Declarations, representations, consents,
acknowledgements and signatures
Section 7 – Adviser information (if applicable)
Cheque OR direct debit authority for the full investment amount
Capitalised Investment Loan
Section 1 – Applicant Details
Section 3 – Capitalised Investment Loan
Section 5 – Declarations, representations, consents,
acknowledgements and signatures
Section 7 – Adviser information (if applicable)
Cheque OR direct debit authority for capital contribution amount
100% Investment Loan AND
Annual Interest Loan
Section 1 – Personal Details
Section 4 – 100% Investment Loan Section 5 – Signatures, consents & acknowledgements
Section 7 – Adviser Information (if applicable)
Income verification in one of the following forms:
Last two years’ financial statements and Taxation returns
100% Investment Loan > $600,000
Same as for 100% Investment Loan plus asset verification as follows:
Latest share holding statements – Shares and managed funds
Copies of bank statements – Cash or Term Deposits
Most recent rates notice or copy of Certificate of Title – Property
Identification
Superannuation Investor
In compliance with the new Anti-Money Laundering and Counter-Terrorism Financing Act (AML/CTF) certified
copies of photographic identification must be provided for all individuals, individual trustees, company directors
and guarantors to the application
Investment Only
Section 1 – Applicant Details
Section 2 – Investment Only
Section 5 – Declarations, representations, consents,
acknowledgements and signatures
Section 7 – Adviser information (if applicable)
Cheque OR direct debit authority for the full investment amount
Capitalised Investment Loan
Section 1 – Applicant Details
Section 3 – Capitalised Investment Loan
Section 5 – Declarations, representations, consents,
acknowledgements and signatures
Identification
70
page 24 of 30
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Cheque OR direct debit authority for capital contribution amount
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Not available for this investor type
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Section 7 – Adviser information (if applicable)
100% Investment Loan
g
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In compliance with the new Anti-Money Laundering and Counter-Terrorism Financing Act (AML/CTF) certified
copies of photographic identification must be provided for all individuals, individual trustees, company directors
and guarantors to the application
g
Perpetual Protected Investments – Series 3
Application form
Appendices
Appendix A
Trustee’s Solicitor’s Certificate
Required for all Trust applicants where
Perpetual has not been requested to review
the Trust Deed.
Appendix B
Declaration by Joint Trustees
To be completed by all superannuation fund
applicants where joint trustees are present.
page 25 of 30 71
Perpetual Protected Investments – Series 3
Application form
Appendix A. Trustee Solicitor’s Certificate
(To be completed by your solicitor if you’re an Individual trustee or Corporate trustee applying for a loan)
Solicitor’s certificate
I certify that:
1. I am a legal practitioner;
2. I am writing this certificate at the request of the trustee named in section 1a of this form for the benefit of PIML and the Lender
3.the Trust described in the section 1c, where the Investor is the trustee, was properly established under its Trust deed
and is valid at the date of this application;
5. the trustee(s) described in this application have been properly appointed and is/are presently existing;
6.having reviewed the Trust documentation, the trustee(s) have the power to (subject in respect of a Superannuation Fund, to
Superannuation law):
(a) borrow money;
(b) provide security;
(c) pay interest, fees and costs under the product and the loan, and
(d) appoint attorneys;
9.the terms of the Trust documents do not restrict the right of the trustee to be fully indemnified out of the Trust assets to satisfy
any liability to the Lender or to PIML that is incurred by the trustee; and
10.the terms of the Trust documents, consent, authorities and other documents let the trustee enter into the Transactions despite
any conflict of interest that may arise.
Solicitor’s last name
Given name(s)
Title
Name of firm
Phone (mobile)
Mailing address
Suburb
Country
Solicitor’s signature
72
page 26 of 30
ggggggggggggggggggggggggg
ggggggggggggggggggggggggg
g Mr g Mrs g Miss g Ms g Other
ggggggggggggggggggggggggg
g g g g g g g g g g Phone (business hours) g g g g g g g g g g
ggggggggggggggggggggggggg
g g g g g g g g g g g g g State g g g Postcode g g g g
ggggggggggggggggggggggggg
Date
g g g g g g g g
Perpetual Protected Investments – Series 3
Wealth Focus Pty Ltd
Application form
PO Box 760
Appendix B. Declaration by joint trustees
Manly NSW 1655
Tel 1300 55 98 69
Dealer Group Number: 51229609
Perpetual Protected Investments – Series 3 (PPI 3)
Perpetual Investment Management Limited ABN 18 000 866 535 AFSL 234426 (Perpetual)
Name of trust (Trust)
ggggggggggggggggggggggggg
(print full name)
Applicant Trustee:
ggggggggggggggggggggggggg
(print full name)
Other Joint Trustee:
ggggggggggggggggggggggggg
(print full name)
Other Joint Trustee:
ggggggggggggggggggggggggg
(print full name)
Other Joint Trustee:
ggggggggggggggggggggggggg
(print full name)
The Applicant Trustee and each Other Joint Trustee:
• declares that the Applicant Trustee and the Other Joint Trustees are the trustees of the Trust and there are no other trustees of the
Trust;
• declares that the Applicant Trustee has been appointed to act as agent of the Other Joint Trustees on behalf of the Trust for the
purposes of investing in PPI 3;
• declares that they agree to be bound by all the acts and omissions by the Applicant Trustee in respect of PPI 3;
• declares that the Applicant Trustee and the Other Joint Trustees have the power under their relevant trust instrument to invest
in PPI 3;
• declares that the Applicant Trustee and the Other Joint Trustees have the power under their relevant trust instrument and relevant
law to appoint PIML as their agent under the power of attorney in accordance with its terms;
• acknowledges that Perpetual may act on the individual directions of the Applicant Trustee only, including but not limited to
terminating and withdrawing the investment; and
• acknowledges that, if Perpetual issues an interest in the product to the Applicant Trustee in its capacity as trustee of the Trust, it
will do so in reliance on this declaration.
The Applicant Trustee further undertakes to terminate the investment if properly directed to do so by the Other Joint Trustees in
accordance with the terms of the Trust.
Please continue on next page.
page 27 of 30 73
Perpetual Protected Investments – Series 3
Application form
Signed by
(print full name of Applicant Trustee)
in the presence of:
Signature of witness
Signature of Applicant Trustee
Name of witness (please print)
Date:
Signed by
(print full name of Other Joint Trustee)
in the presence of:
Signature of witness
Signature of Other Joint Trustee
Name of witness (please print)
Date:
Signed by
(print full name of Other Joint Trustee)
in the presence of:
Signature of witness
Signature of Other Joint Trustee
Name of witness (please print)
Date:
Signed by
(print full name of Other Joint Trustee)
in the presence of:
Signature of witness
Signature of Other Joint Trustee
Name of witness (please print)
Date:
74
page 28 of 30
Perpetual Protected Investments – Series 3
Application form
Section 7
Adviser Information
(To be completed for all adviser
introduced applications)
page 29 of 30 75
Perpetual Protected Investments – Series 3
Application form
It is important that you provide all the required information to avoid your application being delayed or not accepted.
g This is my personal application, and/or I am submitting this under the adviser special offer.
Section – Adviser/Broker Details (This part is for Financial Adviser Use Only)
Wealth Focus Pty Ltd
Adviser Name
Adviser Company
Name
Postal address
Suburb
Phone (mobile)
Email
[1] Perpetual
adviser ID
OR [2] dealer
group AND
Dealer branch
Assistant name
Work number
g g gPOgBoxg760
gggggggggggggggggggg
g g gManly
g gNSWg1655
ggggggggggggggggggg
Tel 1300 55 98 69
g g gDealer
g gGroup
g gNumber:
g g g51229609
ggggggggggggggg
g g g g g g g g g g g g g State g g g Postcode g g g g
g g g g g g g g g g Phone (business) g g g g g g g g g g
ggggggggggggggggggggggggg
gggggggg
ggggggggggggggggggggggggg
ggggggggggggggggggggggggg
ggggggggggggggggggggggggg
gg gggg gggg
Mobile number g g g g g g g g g g
Do you require Perpetual to provide a GST Tax Invoice
to your client on your behalf where applicable
For more information regarding this application for please contact:
g
g
I give permission for a member of the Account Management Team to contact
my client directly to confirm any incomplete details on this application form
g
Adviser
g
g
Yes
g
Yes
Please note: the above contact details will be used to pay trailing commissions.
Investment Commissions – please tick one box
g Please waive all commissions payable on the investment side of the product
g Please pay commissions on the investment side of the product (2.2%)
X
AND
Loan Commissions – please tick on box
Please select one of the following commission structures, applicable to the loan side of the product.
X g
Waive all commissions payable on the loan
g Waive the upfront commission, but pay all ongoing commissions (up to 0.65% p.a. ongoing)
g Pay all commissions due on the loan (up to 1.1% up front and up to 0.65% p.a. ongoing)
If you do not tick a box we will pay full commission.
76
page 30 of 30
No
Assistant
No
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Combined Financial Services Guide and Product Disclosure Statement
This document contains:
b Product Disclosure Statement (PDS) for Perpetual Protected Investments – Series 3 (‘the product’) (pages 1 to 35 and 38 to 76); and
b Financial Services Guide (FSG) for the dynamic management services provided to Investors in the product (pages 36 to 37).
The PDS is issued by Perpetual Investment Management Limited as responsible entity of Perpetual Protected Investments – Series 3.
The FSG is issued by Perpetual Investment Management Limited as a licensed financial services provider.
Glossary of terms
There is a glossary on page 38 that explains the terms in italics (like this) used in the PDS and application form.
About us
Perpetual is one of Australia’s leading funds management companies, with over $37 billion under management (as at 31 December 2007).
We aim to help Australians secure their financial independence and grow their wealth from generation to generation. We offer a range of
managed funds to suit most investors’ risk profiles, investment timeframes and income and capital growth requirements.
We have a range of products investing in Australian and international shares, property securities, direct property, credit, fixed interest, cash,
diversified asset classes and a range of superannuation and pension investments.
Important notice
The information in this PDS is of a general nature only. It has not been prepared taking into account any particular Investor’s or classes of
Investors’ investment objectives, financial situation or needs. Before you invest you should read this PDS in its entirety and assess whether the
product and loans offered in this PDS are appropriate for your circumstances. You should also consider the tax implications of investing in the
product and borrowing to invest. You should obtain independent financial or tax advice to help you with this.
If you would like more information on the product or the loans, contact your adviser or call us (See inside back cover for contact details).
Superannuation Investors – if you choose to borrow to invest with a Capitalised Investment Loan, you should also have an appropriate risk
management statement in place and assess if gearing is an appropriate investment strategy in light of that policy.
Perpetual Protected Investments – Series 3 is a managed investment scheme. Perpetual has lodged the scheme documents with ASIC in order
to register the scheme. ASIC takes no responsibility for the scheme documents. We expect that the scheme will be registered before the offer
opens and we will not accept any applications until the scheme is registered.
Australian offer
The PDS is only available to persons receiving it (electronically or otherwise) in Australia. You must be an
Australian resident operating from Australia for Australian tax purposes to invest in the product. You must not
be carrying on a business in the United Kingdom.
Electronic copies
If you are printing an electronic copy of the PDS you must print all pages including the application form. If you
make the PDS available to another person you must give them the entire electronic file or print-out including
the application form.
All amounts in this PDS are in Australian dollars (unless otherwise specified)
Repayment of capital and
returns are not guaranteed
There is no guarantee that the dynamic management strategy in this product will work. There is a risk that
your portfolio may be less than the value of your protected amount at the protection end date.
Neither Perpetual nor UBS nor any of their related entities or associates guarantee the performance of the
product, the payment of any distributions, the repayment of capital invested or any particular rate of overall
return. Participation in the product does not represent a deposit or any other liability of Perpetual or UBS or
any related entities or associates of Perpetual or UBS. Investors have no recourse to or rights against UBS
or any of their related entities or associates. The participation in the product is subject to investment risk,
including possible delays in repayment, loss of income and capital invested. UBS has not been involved in
the preparation of this PDS, is not the issuer of this product or this PDS and takes no responsibility for its
contents, accuracy, completeness or its compliance with the Corporations Act (Cth) 2001.
Changes to product
information
We may update the PDS for changes that are not materially adverse without issuing a supplementary PDS.
This information will be available by contacting us or visiting www.perpetual.com.au/structuredproducts/ppi3.
A paper copy of the PDS and updated information will be available free of charge on request. If we become
aware of any change that is materially adverse we will replace the PDS or issue a supplementary PDS.
If there is an increase in the fees and costs (other than federal government fees and charges and charges or
fees of the funds included in the product) we will give you 30 days’ written notice.
You should keep a copy of this PDS and any other supplementary material updating the PDS for future reference.
Changes to the offer period
We may vary the dates and times of the offer for the product. We may also vary any of the other key dates
relevant to the product.
Some key terms used in this PDS (also refer to Glossary on page 38) are:
Applicant, you, your
Person/entity that completes and lodges an application form to participate in the product.
Borrower, you, your
Applicants that complete and lodge an application form for a loan (and, where the context requires,
prospective Borrowers).
Investor, you, your
The registered holder of an interest in the product (and where the context requires, prospective Investors).
Lender
means Perpetual Loan Company Limited No 2 (ABN 40 008 739 035), or another subsidiary of Perpetual
Limited which provides of the loans under the Loan and Security Agreement.
Perpetual, we, us, our
means Perpetual Investment Management Limited (ABN 18 000 866 535) as the responsible entity of the
product. Perpetual is a wholly owned subsidiary of Perpetual Limited (ABN 86 000 431 827). Perpetual is the
issuer of the PDS.
Perpetual entities
means Perpetual Investment Management Limited, Perpetual Trustee Company Limited, and Perpetual Loan
Company Limited No 2 collectively or individually as the context requires.
Perpetual Group
means Perpetual Limited (ABN 86 000 431 827) and its subsidiaries.
PIML
means Perpetual Investment Management Limited (ABN 18 000 866 535) in its ‘personal’ capacity as licensed
financial services provider. PIML provides dynamic management services to Investors and is the issuer of the FSG.
UBS
means UBS AG, London branch, the provider of capital protection for the product.
Contact us
For further information, or a copy of any
of our Product Disclosure Statements,
please contact Perpetual:
Website
www.perpetual.com.au
www.perpetual.com.au/structuredproducts/ppi3
Email
ppi@perpetual.com.au
Telephone
During business hours, (Sydney time):
Investor Service Centre
1800 002 513
Adviser Service Centre
1800 002 513
Fax
Investors and advisers
02 8256 1416
Postal address
No stamp required if posted in Australia
Reply Paid 5126
Perpetual Protected Investments
GPO Box 5126
Sydney NSW 2001
23646_AABPES3_0308
Perpetual Protected
Investments – Series 3
New South Wales
Angel Place
Level 12
123 Pitt Street
Sydney NSW 2000
Perpetual Protected Investments – Series 3 Product Disclosure Statement
Queensland
Level 6
260 Queen Street
Brisbane QLD 4000
South Australia
Level 11
101 Grenfell Street
Adelaide SA 5000
Victoria
Level 28
360 Collins Street
Melbourne VIC 3000
Western Australia
Exchange Plaza
Level 29
2 The Esplanade
Perth WA 6000
www.perpetual.com.au
Experience. The difference.
Product Disclosure Statement
Combined Financial Services Guide and
Product Disclosure Statement
Dated 17 March 2008
Issued by Perpetual Investment
Management Limited
ABN 18 000 866 535
AFSL 234426
www.perpetual.com.au