Research Choice. MyNorth Managed Portfolios

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1 Managed Portfolios MyNorth Managed Portfolios

2 About Managed Portfolios The Managed Portfolios are offered by NMMT Limited (NMMT), and expertly constructed and managed by the AMP Research team. There are 12 diversified managed portfolios available, designed to achieve different investment and risk objectives. Here s a bit about them and what they aim to do: Accumulation range Income range Objective-based range Five managed portfolios that aim to seek growth and reinvest earnings to further grow returns. These may be suitable if you re looking to save for your retirement. Five managed portfolios that aim to provide higher recurring income with less downside risk than the accumulation range. These may be suitable if you re looking for income in retirement. Two managed portfolios that seek set outcomes over defined periods with a focus on capital preservation. These may be suitable if you re looking for income and modest capital growth. About the AMP Research team The AMP Research team has substantial experience in fund manager research and portfolio management. In constructing and managing the portfolios, the team: selects assets from a range of quality managers to provide diversification across strategies and styles, and draws on quantitative and qualitative assessments to make portfolio changes to ensure they align to set investment objectives and risk levels. Managed Portfolios are investment options available from a MyNorth, North, Summit or ipac Access account. Full details on investing in these investment options can be found in the MyNorth Managed Portfolios product disclosure statement (PDS) available at northonline.com.au/managedportfolios MyNorth, North and Summit are registered trademarks of NMMT Limited ABN AFS Licence No ipac iaccess is a registered trademark of ipac asset management limited ABN

3 Key benefits The Managed Portfolios offer a flexible and efficient way of investing and implementing your investment strategy to help you reach your financial goals. The Managed Portfolios offer you A diversified portfolio of assets to help enhance returns and minimise risks The managed portfolios will offer you exposure to diversified assets, including investments in the Advantage Funds range. The Advantage Funds offer access to quality wholesale funds at great value and are issued by AMP Capital Funds Management Limited. 1 Highly experienced research team which specialises in building and managing diversified portfolios The AMP Research team regularly monitors the managed portfolios and makes any necessary changes to the underlying assets to ensure they align with their stated investment and risk objectives. Any changes can be made quickly to help take advantage of emerging opportunities or to manage risk. The ability to track the assets in the managed portfolio You can see where your money is invested and track the performance of assets in the managed portfolios via North Online. Ownership of assets in the managed portfolio You ll have beneficial ownership of the assets in the managed portfolio. You can choose to transfer the asset in and out of the managed portfolio. What are the risks The performance of the interest held for you in MyNorth Managed Portfolios will depend on the performance of the managed portfolio chosen, and the performance of the assets in the managed portfolio. The managed portfolios offered are subject to risk, including possible delays in repayment and loss of income and capital. No member of the AMP group or the investment manager(s) guarantee the repayment of capital, payment of income or the performance of the managed portfolios chosen. All investments carry a risk component. Risk in an investment context refers to the possibility that the investment will not return its original capital or expected income and that the level of return will be volatile over any given time period. This risk can include market risk, company risk, currency risk, interest rate and inflation risk. 1 The Managed Portfolios will include investment in the Advantage Funds range. AMP Capital Funds Management Limited (AMP Capital) ABN , AFSL , is the responsible entity for this series of managed funds. AMP Capital is a member of the AMP group and receives fees in relation to acting in capacity of responsible entity. A current PDS for each of the managed funds within this series can be obtained free of charge online at amp.com.au/advantagefunds

4 Snapshots Accumulation Managed Portfolios A summary of the five managed portfolios that aim to seek growth and reinvest earnings to further grow returns. These may be suitable if you re looking to save for your retirement. Full details can be found in the PDS. Conservative Moderately Conservative Balanced Investor profile seeking low capital growth and low variability of returns or loss in any given year. seeking moderate capital growth and lower variability of returns or loss in any given year. seeking higher capital growth who are prepared to accept higher variability Minimum investment horizon 3 years 4 years 5 years Investment objective Aims to provide stable returns through a diversified portfolio of primarily defensive assets. Aims to provide moderate returns over the medium term through a diversified portfolio of primarily defensive assets and some growth assets. Aims to provide moderate to high returns over the medium to long term through a diversified portfolio of growth and defensive assets. Investment management fee (i) 0. pa 0. pa 0. pa Estimated indirect costs (ii) 0.57% pa 0.68% pa 0.78% pa Target asset allocation Growth Defensive Long-term average target class allocation Growth assets Australian shares International shares Listed property / Infrastructure Alternatives Defensive assets Fixed income Cash % 8% % 20% 12% 8% 9% 8% 13% 27% 22% (i) A performance-based fee based on your managed portfolio balance that is deducted from the cash account. (ii) Indirect costs may be more or less than the estimated amounts and are reflected in the unit price of the underlying assets. Indirect costs may include management fees, performance-based fees, recoverable expenses, and costs of investing in derivatives. Example of $100,000 investment in Balanced The Balanced offers exposure to diversified assets, including investments in the Advantage Funds range. The Advantage Funds offer access to wholesale funds at great value from a range of fund managers and are issued by AMP Capital Funds Management Limited. Asset allocation is at September 2018 and can vary from time to time. Growth Australian shares Global equities Property and infrastructure Alternatives $9,220 $8,820 $7,020 $7,550 $6,020 $4,730 $3,250 $5,910 $4,430 $3,100 $6,060 $4,920 4

5 Moderately Aggressive seeking higher capital growth who are prepared to accept higher variability 6 years 7 years Aims to provide moderate high returns over the long term through a diversified portfolio of primarily growth assets and some defensive assets. 0. pa 0. pa 0.87% pa 0.97% pa Aggressive seeking high capital growth who are prepared to accept high variability of returns or loss in any given year. Aims to provide high long-term returns through a diversified portfolio of primarily growth assets The Managed Portfolios have been designed to achieve different investment and risk objectives. These snapshots provide a high level summary. Full details can be found in the PDS. 12% 36% 1 39% 13% 26% 34% Defensive Fixed interest Cash $6,760 $9,630 $6,810 $3,850 $1,920 5

6 Income Managed Portfolios A summary of the five managed portfolios that aim to provide higher recurring income, with less downside risk when compared to the accumulation managed portfolios. Income will be paid to your cash account and not reinvested (unless instructed otherwise). These may be suitable if you re looking for steady income in retirement. Full details can be found in the PDS. Conservative Moderately Conservative Balanced Investor profile seeking stable, additional income and low variability of returns or loss in any given year. seeking additional income and lower variability of returns or loss in any given year. seeking higher income who are prepared to accept higher variability Minimum investment horizon 3 years 4 years 5 years Investment objective Aims to provide stable returns and higher income through a diversified portfolio of primarily defensive assets. Aims to provide higher income and reduced volatility over the medium term through a diversified portfolio of primarily defensive assets and some growth assets. Aims to provide higher income and reduced volatility over the medium to long term through a diversified portfolio of growth and defensive assets. Investment management fee (i) 0. pa 0. pa 0. pa Estimated indirect costs (ii) 0.57% pa 0.64% pa 0.71% pa Target asset allocation Growth Defensive Long-term average target class allocation Growth assets Australian shares International shares Listed property / Infrastructure Alternatives Defensive assets Fixed income Cash 50% 20% 1 40% 27% 20% 6% 8% 9% 8% 13% 13% 36% (i) A performance-based fee based on your managed portfolio balance that is deducted from the cash account. (ii) Indirect costs may be more or less than the estimated amounts and are reflected in the unit price of the underlying assets. Indirect costs may include management fees, performance-based fees, recoverable expenses, and costs of investing in derivatives. Example of $100,000 investment in Balanced The Balanced offers exposure to diversified assets, including investments in the Advantage Funds range. The Advantage Funds offer access to wholesale funds at great value from a range of fund managers and are issued by AMP Capital Funds Management Limited. Asset allocation is at September 2018 and can vary from time to time. Growth Australian shares Global equities Property and infrastructure Alternatives $8,580 $9,210 $5,160 $7,790 $9,080 $4,380 $8,220 $8,840 6 $8,800

7 Objective-based Managed Portfolios A summary of the two managed portfolios that seek set outcomes over defined periods with a focus on capital preservation. These may be suitable for clients looking for income and modest capital growth. Moderately Aggressive Aggressive Cautious Income Builder Portfolio seeking higher income who are prepared to accept higher variability seeking higher income who are prepared to accept high variability May be suitable for low to zero taxpayers seeking income with reduced volatility and capital preservation. May be suitable for low to zero taxpayers seeking income with lower volatility and some capital gain. 6 years 7 years 4 years 5 years Aims to provide higher income and reduced volatility over the medium to long term through a diversified portfolio of growth assets and some defensive assets. Aims to provide higher income and reduced volatility over the long term through a diversified portfolio of primarily growth assets. Aims to provide regular and higher income, modest capital growth with a strong focus towards capital preservation. Aims to provide higher current and future income, modest capital growth and a greater focus on capital preservation. 0. pa 0. pa 0. pa 0. pa 0.76% pa 0.83% pa 0.64% pa 0.69% pa % 23% 44% 1 48% 42% 3 13% 52% 8% 18% 2 7% 7% 9% 7% Defensive Fixed interest Cash $4,950 $10,000 $4,920 $10,070 This brochure provides a summary on the Research Choice Managed Portfolios. Full details can be found in the MyNorth Managed Portfolios PDS available at northonline.com.au/ managedportfolios 7

8 We re here to help For more information, please refer to the MyNorth Managed Portfolios PDS, or contact your financial adviser, or the North Service Centre on phone web northonline.com.au mail North Service Centre GPO Box 2915 MELBOURNE VIC 3001 What you need to know Any advice in this document is provided by NMMT Limited ABN , AFSL (NMMT) and is general only. The issuer of MyNorth, North, Summit, iaccess Super and Pension products is N.M. Superannuation Pty Limited ABN , AFSL (NM Super). The issuer of MyNorth, North, Summit and iaccess Investment IDPS products and MyNorth Managed Portfolios is NMMT. AMP Capital Funds Management Limited (ABN , AFSL ) (AMPCFM) is the responsible entity of each of the Advantage Funds (Funds) and the issuer of the units in the Funds. The advice does not take into account any person s personal objectives, financial situation or needs. Therefore, before acting on the advice, a person should consider the appropriateness of this advice having regard to those matters. Before making a decision about the product, a person should consider the MyNorth Managed Portfolios PDS available from northonline.com.au or by contacting the North Service Centre on NMMT is part of the AMP group and can be contacted on or north@amp.com.au. If a person decides to purchase or vary a financial product, companies within the AMP group will receive fees and other benefits, which will be a dollar amount or a percentage of either the premium they pay or the value of their investments. Contact AMP for more details. The information in this document is current as at September 2018 and is subject to change without notice /18