International Shares Fund Product Disclosure Statement

Transcription

1 Product Disclosure Statement Dated 16 January 2006 CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITED ABN AFSL ARSN APIR CRS0005AU

2 Supplementary Product Disclosure Statement Dated 1 June 2006 This is a Supplementary Product Disclosure Statement (SPDS) issued by Credit Suisse Asset Management (Australia) Limited ABN and AFSL It supplements the Product Disclosure Statement (PDS) dated 16 January 2006 for the Credit Suisse Asset Management. This SPDS is to be read together with the PDS. The information in this SPDS replaces the existing Adviser remuneration and other arrangements section of the PDS. Adviser remuneration and other arrangements It is not our intention to make payments of commission to licensed financial advisers from our fees for 12 months following the date of this PDS. However, we may from time to time enter into arrangements with other fund managers, financial planning groups and platforms such as Mastertrusts or wrap accounts under which we may make fund manager payments to such parties of up to 0.40%pa of the total value of the Fund in return for promoting the Fund. These payments may be rebated to you or retained by the fund managers, financial planning groups or platforms as a commission. We make these payments from our own resources and not those of the Fund.

3 Investment objective To provide exposure to primarily international shares with potential for a high level of growth over the long term, with the benefit of exposure to world growth opportunities. The Fund aims to outperform the MSCI World ex Australia Index over the suggested investment time frame. The Fund aims to invest primarily in a range of quality international share investments with a wide geographic spread and actively manage currency risk to add additional value. The management of international shares combines the skills of Credit Suisse s Australian Asset Management team for country guidelines and currency management and Capital International, Inc for stock selection. Currency hedging of the Fund s assets may vary between 0 50%. The Fund s benchmark is unhedged. See page 3 for more information about our approach to currency hedging. Fund size as at 31 October 2005 $4,241.1 million Volatility/risk level 1 High Suggested investment time frame 2 Long term 5 years plus Date of inception February 1993 Asset allocation as at 31 October 2005 Cash and Other 3.5% Asia ex Japan 1.6% Europe and UK 33.9% 0% hedged back to the Australian dollar at 31 October United States and Canada 44.6% Japan 16.4% Performance at 31 October yr % 3 yrs %pa 5 yrs %pa Distribution returns Growth returns Net returns (total after fees) Total returns (total before fees) Benchmark returns Asset allocation ranges at 31 October 2005 Ranges United States and Canada +/-20% index weight Europe and UK +/-15% index weight Japan +/-10% index weight Asia ex Japan +/-10% index weight Cash and Other 0% 10% Past performance is not necessarily indicative of future performance. Returns are volatile and vary from year to year. Income distribution Annually at the end of June. Distribution history (cents per unit) June The volatility/risk level is designed to indicate to you the amount of risk you are taking on when investing. For example, as the Fund has a High volatility/risk level, it means that you can expect the Fund will experience periods of negative returns and periods of volatile returns. However, this also means that the Fund has greater potential for capital growth than a fund with a Low volatility/risk level. 2. The suggested investment time frame is not necessarily the period for which you should hold your investment in the Fund. A longer investment period may be required in order for your investment to meet the Fund s performance objective (ie. to outperform the relevant benchmark). 3. Net returns are calculated using pre distribution month end withdrawal prices and assumes all income is reinvested in additional units. Total returns are calculated by adding back the Management Costs deducted. When comparing our performance with the benchmark, the total returns (before fees) figure should be used. In calculating the distribution return we have accounted for income, realised capital gains and return of capital. Growth return represents the percentage change in the Fund s withdrawal price over the 1, 3 or 5 year period. Please call our Client Services Consultants on or visit our internet site for the latest performance information, available free of charge and updated monthly. 1

4 Managing risk While the ultimate investment strategy would achieve high investment returns with minimal risk and volatility, in reality the general rule of investing is the higher the expected returns on an investment, the higher the expected risk. Every investment runs the risk that its value and income will fluctuate. These risks may be general or specific to a particular asset class. We aim to invest in a range of carefully selected, quality investments aimed at reducing portfolio risk. We set strict limits on how much can be invested in an individual security or across sectors or countries to ensure that your investment is well diversified. Risk factors for this type of Fund include Market risk changes in economic, technological or political conditions, and even market sentiment can (and do) arise. This means that the investments we buy can fluctuate in value. We use research and analysis to keep abreast of these matters as best we can and then we may adjust, where necessary, the investment mix of the Fund to lessen the impact. We aim to outperform the market (ie. the benchmark of the Fund) rather than achieve an absolute return. Operational risk the breakdown in administrative procedures or operational controls may cause disruption to day to day operations. These business interruptions may arise internally through human error or technology and infrastructure failure, or possible external events such as regulatory changes. We have procedures in place for such occurrences and as much as possible we manage operational risk by monitoring these procedures to ensure they adequately mitigate the risk. Security specific risk within any given asset class different securities may perform differently. The individual securities selected by the Manager will determine the risk level and performance of the Fund. Where a security doesn t perform to expectation the result can be under performance of the Fund against the benchmark. Currency risk currency movements and the change in value relative to our dollar can cause changes to the value of the Fund. Currency risk is, as far as practicable, managed through currency hedging. Hedging international investments involves buying and selling currencies. If the Fund is unhedged, it is fully exposed to currency movements and any consequent changes this may have on the value of the Fund. The Fund may also be partially hedged removing a portion of the currency risk. The idea is to add value by varying the Fund s level of hedging according to the expected changes in the currency. Liquidity risk arises when an investment is made in securities that may be traded on an irregular or infrequent basis. Where we believe this could be an issue we monitor the Fund to ensure that it is liquid. Derivative risk includes where the value of a derivative falls in line with the underlying asset, potential illiquidity of a derivative and where the Fund or a counterparty to a derivative contract are not able to meet payment obligations. While derivatives such as futures and options, interest rate swaps, currency hedging and credit default swaps may be used, we do not use derivatives to gear the Fund or to take the Fund outside specified risk tolerances. Structural risk investing in a managed fund is not like investing directly in securities. A managed fund takes into consideration all applications and withdrawals made by all unitholders, which can result in different income or capital gains accrued. Therefore, income from the Fund will be different to that of a direct security. Legal risk revised Government policy that results in legislative changes can have an impact on the business operation and on your investment. Ways you can reduce risk Seek professional advice to assist in setting your investment objectives, understanding your financial situation and particular needs. This Product Disclosure Statement (PDS) does not replace the need for financial advice. Invest for at least the recommended time frame. Investing for a lesser time period than the one suggested may not provide the stated investment objective of the Fund. Plan your investment strategy (in conjunction with your adviser) by considering the following how much risk you feel comfortable with how long you want to invest for what level of returns you need whether you are looking for income or growth, and your current financial circumstances. 2

5 Investment information The value of your investment A unit represents an interest in the Fund. When you invest you are allocated a number of units according to the relevant application price. The number of units will change if you make additional investments or make a withdrawal. The value of your investment at any point in time will depend on the total number of units you hold in the Fund and the relevant withdrawal price. Example. Wholesale Unit price No. units Value 21 January 2004 Invest $ , $500,000 (application price) 4 March 2004 Invest additional $ , $20,000 (application price) 31 October 2005 $ , $570, (withdrawal price) These figures are not indicative of future returns. Unit prices Unit prices are generally calculated each business day, using a forward pricing model based on the net asset value of the Fund for that day and divided by the number of units on issue. There is a difference between the application price and withdrawal price of the units. This difference is known as the buy/sell spread (transaction costs) and relates to the costs incurred when buying and selling the underlying assets of the Fund when investments or withdrawals are made. More information regarding buy/sell spreads and the buy/sell spread for the Fund can be found on page 9. The net asset value of the Fund is calculated by deducting the value of the liabilities of the Fund from the value of the Fund s gross assets. Liabilities include accrual for the Management Costs for the Fund 1. Gross assets include securities valued at the most recently available market price, cash at bank, any amount of the Goods and Services Tax ( GST ) recoverable from the Australian Taxation Office ( ATO ) plus any entitlement to income prior to a distribution period end where the Fund has received or is entitled to receive income (including any imputation credits attributable to income, based on quarterly information available). We use an independent pricing service to value securities at their most recently available market value. Reasonable estimates may be used to value a specific asset or type of asset if the price is unavailable provided there is a verifiable methodology to support the estimate. The valuation methods and policies applied by us in determining the value of the Fund s assets and the amount of its liabilities will result in a calculation of the application and withdrawal price of units that is independently verifiable. Should an error occur in a unit price we will compensate you or the Fund where the error exceeds 0.30% of the unit price, and in the case of individual investors, where the payment will be $20 or more 2. Please see Operational risk on page 3 for information regarding mitigation of the breakdown in administrative or operational controls which can lead to pricing errors. We operate on a forward pricing model: applications to buy or sell units are processed using a price calculated and published after the applications have been received. The unit price for a particular business day is generally available the next business day. This means that if you invest with us today before the Fund s cut off time, the unit price applicable to your investment will be based on the net asset value as at the close of business today, and will generally be available the next business day. 1. Please refer to the Fees and other costs section in this PDS for information regarding costs applicable to your investment. 2. The current compensation methodology is based on industry guidance available at the time of publishing this PDS. 3

6 Investment income Income from the Fund is paid to you as a distribution and will include dividends, interest and other income from the investments, as well as capital gains from the sale of investments. Income is generally calculated by dividing the distributable income by the number of units in the Fund at the end of each distribution period. The amount of income you receive is based on the number of units you hold at the end of the distribution period. The Fund distributes annually at the end of June. Distributions are generally paid within 15 days after the end of the distribution period. If we change the income distribution period for the Fund we will give you not less than 30 days prior notice to the change taking effect. The amount of distributable income will vary from period to period and where there is insufficient income a distribution will not be made. Example. Wholesale 21 January 2004 $ , Invest $500,000 (application price) (no. units) 30 June CPU Fund distributes (cents per unit) Distribution income $4, The distribution amount in this example is the number of units held multiplied by the distribution amount (242, x ). The figures are not indicative of future distribution amounts. Changes to investment strategy We will make available (via our internet site details of any material changes to the investment strategy of the Fund. This includes changes to the Fund objective, benchmark asset allocation and performance benchmark. We will give you not less than ten days prior notice of any such changes taking effect. 4

7 Fees and other costs The specific fees and costs that will apply to your investment in the Fund are set out in this section. You should read it carefully before making a decision to invest. The information in the box on this page is standardised across all product issuers and does not provide any specific information on the fees and costs in the Fund and therefore, may not reflect what fees you may be charged. You should refer to the fees in the fee table on page 7 for information on the specific fees and costs that apply to the Fund. Did you know? Small differences in both investment performance and fees and costs can have a substantial impact on your long term returns. For example, total annual fees and costs of 2% of your fund balance rather than 1% could reduce your final return by up to 20% over a 30 year period (for example, reduce it from $100,000 to $80,000). You should consider whether features such as superior investment performance or the provision of better member services justify higher fees and costs. You may be able to negotiate to pay lower contribution fees and Management Costs where applicable. Ask the fund or your financial adviser. To find out more If you would like to find out more, or see the impact of the fees based on your own circumstances, the Australian Securities and Investments Commission (ASIC) website ( has a managed investment fee calculator to help you check out different fee options. 5

8 Fees and other costs This table shows fees and other costs that you may be charged when investing in the Fund. These fees and costs may be deducted from your money, from the returns on your investment or from the fund assets as a whole. Taxes are set out in another part of this document. You should read all of the information about fees and costs, because it is important to understand their impact on your investment in the Fund. Type of fee or cost Fees when your money moves in or out of the Fund Establishment Fee 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 1 The fees and cost for managing your investment. Service Fees 2 Investment Switching Fee The fee for changing investment options. Amount Nil Nil Nil Nil Administration and investment fee 0.92%pa plus Reimbursable expenses 0.04%pa at 30 June 2005 Nil How and when paid Not applicable Not applicable Not applicable Not applicable The administration and investment fee component of Management Costs is deducted from the assets of the Fund and is reflected in the unit price. This fee is calculated daily and paid to the Manager monthly in arrears. The reimbursable expenses component of Management Costs is also deducted from the assets of the Fund and reflected in the unit price. Reimbursable expenses are calculated daily and paid to the Manager monthly in arrears. Management Costs are not charged separately to your investment. Refer to Additional explanation of fees and costs in this section of the PDS for more information. Not applicable 1. Management Costs are net of any expected reduced input tax credits in respect of GST. 2. Incidental transaction fees may also apply. Refer to Incidental fees under Additional explanation of fees and costs for more information. 6

9 Example of annual fees and costs for the Fund This table gives an example of how the fees and costs for this Fund can affect your investment over a 1 year period. You should use this table to compare this product with other managed investment products. Example Contribution Fees PLUS Management Costs 1 EQUALS Cost of Fund Nil 0.96%pa Balance of $500,000 with total contributions of $10,000 during the year For every additional $10,000 you put in, you will be charged nil fees. And, for every $500,000 you have in the Fund you will be charged $4,800 each year. If you put in $10,000 during a year and your balance was $500,000, then for that year you will be charged fees of from: $4,800 What it costs you will depend on the investment option you choose and the fees you negotiate with your fund or your financial adviser. Additional explanation of fees and costs Management Costs There are two components as outlined below. 1. Administration and investment fee The administration and investment fee covers the general administration and management of the Fund (excluding transactional and operational costs). This includes fees paid to external investment managers 2 and other expenses. We may agree with wholesale clients (as defined in the Corporations Act 2001) to rebate some of the administration and investment fee on a case by case basis. We take into account relevant factors which may include the size of the investment. We are not permitted to enter into individual fee arrangements with other investors. 2. Reimbursable expenses Reimbursable expenses are in addition to the administration and investment fee. These expenses include custodial and insurance costs, accounting and audit expenses, printing and postage expenses, unit registry costs and unitholder meeting costs. The fee for custodial services is currently up to a maximum of 0.04%pa of the value of the Fund for international assets and up to a maximum of 0.02%pa of the value of the Fund for domestic assets. Incidental fees Bank fees in relation to your investment may be payable. These fees may include $35.00 per overseas telegraphic transfer, $10.00 per transfer within Australia, $6.50 per bank cheque and $12.00 per dishonour fee. These bank fees are withdrawn from your investment by deducting units at the time of the fee being incurred. Management Expense Ratio (MER) The MER is an annual measure of the Management Costs (excluding any contribution or withdrawal fees and transactional and operational costs) deducted from the assets of the Fund and expressed as a percentage of the average annual value of the Fund. As an Investment and Financial Services Association (IFSA) member, we calculate MERs in accordance with IFSA Guidelines. In simple terms, the MER takes into account the administration and investment fee and any reimbursable expenses. The table below shows the MERs for the last three years to 30 June In addition, the table illustrates the effect of the MER on a $100,000 investment for one year beginning 1 July 2005 and ending 30 June 2006 on the assumption that the MER for the period will be the same as 30 June Please note that this is a simplified example as the Management Costs are based on the value of the entire Fund which fluctuates daily. MER at 30 June (%) MER equivalent dollar amount Based on a $100,000 investment over one year MER at 30 June 2004 (%) 2003 (%) 0.96 $ Management Costs as at 30 June See Related parties and service providers on page 13 of this PDS. 3. The MERs shown are not indicative of future MERs. 7

10 Transactional and operational costs Transaction costs such as brokerage costs, Government or bank charges and market spreads 1 relate to the acquisition or disposal of assets of the Fund when investments or withdrawals are made. These costs are reflected as a percentage difference between the application and withdrawal prices and are commonly referred to as the buy/sell spread. The buy/sell spread for the Fund is 0.40%. The buy/sell spread for the Fund is based on the type of assets being purchased or sold. For example, the cost of trading shares is generally greater than the cost of buying or selling fixed interest securities. They may also vary due to the brokerage rate and transaction size. Buy/sell spreads are designed to protect investors by ensuring that the expense of buying or selling the underlying assets is borne by those who invest or withdraw. Transaction costs are retained in the Fund to meet this expense. In passing on these costs, the Manager does not receive any financial benefit. Adviser remuneration and other arrangements It is not our intention to make payments of commission to licensed financial advisers from our fees for 12 months following the date of this PDS. However, we may from time to time enter into arrangements with other fund managers and platforms such as Mastertrusts or wrap accounts under which we may make fund manager payments to such parties of up to 0.40%pa of the total value of the Fund in return for promoting the Fund. These payments may be rebated to you or retained by the fund managers or platforms as a commission. We make these payments from our own resources and not those of the Fund. Alternative forms of remuneration We maintain a register that outlines any material alternative forms of remuneration that we may provide to your adviser or asset consultant. If alternative remuneration is provided, the cost is paid by us and is therefore not an additional cost to you. This register is publicly available and can be obtained by contacting our Client Services Consultants on Example. Wholesale Unit price No. units Value Buy/sell Transaction spread cost 8 December 2004 Invest $ , % $1,000 $500,000 (application price) (buy spread) 18 February 2005 Invest additional $ , % $200 $100,000 (application price) (buy spread) 26 October 2005 Withdraw $ , % $100 $50,000 (withdrawal price) (sell spread) 30 November 2005 $ , $619, (withdrawal price) The buy/sell spread is 0.40% for the Wholesale Increases or alterations to fees and costs It is not our intention to increase any of the fees and costs set out in the Fees and other costs section for 12 months following the date of this PDS. However, should we decide to increase our fees and costs disclosed for any reason (which we can do without your consent) we will notify you two months prior to the increase. If we were to increase any of the fees and costs disclosed, we confirm that the contribution or withdrawal fee will not exceed 6% 2 of the amount invested or withdrawn and the administration and investment fee will not exceed 2%pa 2 of the net asset value of the assets of the Fund. Tax The fees and costs referred to in this section of the PDS include GST where applicable unless otherwise specified and are net of any expected (reduced) input tax credits payable to the Fund in respect of the GST on the fee. For other taxation information please refer to the Taxation information section in this PDS. We also reserve the right to waive or reduce any of the fees and costs described in this PDS without prior notice. 1. Market spreads are the difference in the price at which underlying investments can be bought or sold. 2. These maximums are set out in the Constitution, are excluding GST and cannot be increased without prior unitholder approval. 8

11 Taxation information The following information summarises some of the taxation issues you should consider before making your investment. Please consult your tax adviser about the specific implications relevant to your situation. Tax for Australian investors Tax on income As the Manager intends to distribute all taxable income, it is expected that the Fund will not pay tax on its taxable net income. Your share of the taxable net income earned by the Fund should be included in your tax return in the year you become presently entitled to the taxable net income. The tax treatment of this income in your hands may depend on the type of income it represents. The Fund s taxable net income may include interest income from investments in Australian cash (and equivalent) investments and revenue gains and losses from currency fluctuations throughout the year. Where the income distributed represents foreign sourced income you may be entitled to foreign tax credits for foreign tax already paid. The grossed up foreign income, which includes the foreign tax credit, should be included in your tax return as foreign income. Foreign investments held by the Fund may be interests in a foreign investment fund ( FIF ) for the purposes of the income tax law. This may result in taxable income arising to the Fund in relation to certain FIFs before the gains are realised. However, we will endeavour to manage the Fund s investments so that the FIF provisions do not apply to the Fund. Tax on capital gains Taxable net capital gains arising to the Fund may also be distributed to you. The Funds may also distribute the non assessable portion of the 50% discount. The tax treatment of these amounts in your hands will vary depending on your individual circumstances. Tax on disposal of units If you redeem, switch or transfer units this will constitute a disposal for tax purposes. Generally, profits arising from the disposal of units will be subject to capital gains tax ( CGT ). If you are a trader or institutional investor, such profits may be regarded as ordinary income. If you acquired units on or after 21 September 1999 and have held them for at least 12 months, half the difference between the disposal price and the cost base if you are an individual or trust (two thirds if you are a complying superannuation fund) will be a taxable capital gain. If you make a capital loss you can offset it against capital gains. In respect of capital gains benefiting from the discount, the capital loss is applied against the gross (pre discounted) gain. Tax for non resident investors Tax on income Income derived by the Fund may have been subject to tax in a country outside Australia. If you are a non resident of Australia you may, depending on your country s tax laws, be entitled to foreign tax credits for tax paid by the Fund in relation to its foreign sourced income. Foreign sourced income allocated to a non resident should not be subject to Australian tax. Tax at the relevant withholding tax rate will have to be withheld in respect of Australian sourced interest and unfranked dividends allocated to non residents. The rate depends on the country in which you are resident and the application of a double taxation agreement (if any) between Australia and that country. Depending on your country s tax laws, you may receive a credit for the withholding tax paid. The Fund will have to pay Australian tax on behalf of non resident beneficiaries in relation to its share of Australian sourced income (other than interest and dividends) and appropriate amounts will be withheld from distributions to non residents if such tax is payable. Depending on your country s tax laws, you may receive a tax credit for the Australian tax suffered. Distributions from the Fund to non residents will be reduced by the amount of tax that needs to be withheld in relation to Australian sourced income. Distributions from the Fund that include capital gains should be exempt for non residents to the extent such gains are attributable to assets without the necessary connection to Australia. Tax on disposal of units Where a non resident makes a profit on disposal of units in the Fund, it may be taxed as a capital gain or ordinary income, depending on the non resident s individual circumstances. The profit will not be subject to Australian tax as a capital gain if the units do not have the necessary connection with Australia. A non resident s units will have the necessary connection with Australia if the non resident has held 10% or more of the issued units in the Fund (or an option or right to acquire such units) at any time during the 5 years preceding that disposal. Capital gains made by certain non resident investors whose units have the necessary connection with Australia may also not be subject to Australian tax where the underlying assets of the Fund are 90% foreign assets. However, where a profit on disposal of units is taxed as ordinary income, the whole amount may be taxable (subject to any double taxation agreement) regardless of how many units are held. Depending on your country s tax laws, you may receive a tax credit for any Australian tax suffered. 9

12 Proposed changes to legislation The Government announced on 10 May 2005 that amendments would be made to the current legislation such that non residents of Australia will only be subject to tax on the disposal of assets (such as units in the Fund) if the assets are held through a permanent establishment in Australia, the assets are actually or predominantly real estate or shares or units in entities whose assets are wholly or predominantly real estate. It is not clear whether such exemption will also extend to non residents in circumstances where gains are made by the Fund on the sale of its investments and distributed to non residents. It was announced that the changes will apply to disposals occurring on or after the date the legislation receives Royal Assent. 10

13 Additional information Continuous disclosure documents If, at any time, the Fund is a disclosing entity under the Corporations Act, it is subject to certain regular reporting and disclosure obligations. Copies of any documents lodged with ASIC in relation to a disclosing entity may be obtained from, or inspected at, an ASIC office. While the Fund is a disclosing entity, the following documents may be obtained from us the annual report most recently lodged with ASIC by us in respect of the Fund any half yearly financial report lodged with ASIC by us in respect of the Fund after the lodgement of the above mentioned annual report and before the date of this PDS any continuous disclosure notices given by us in respect of the Fund after the lodgement of the above mentioned annual report and before the date of this PDS. We will send you a printed or electronic copy of any of the above documents free of charge within five days of receiving your request. Fund Constitution The Constitution provides the framework for the operation of the Fund and sets out certain rights, duties and obligations of us and you. Principal provisions of the Constitution include those dealing with the duration of the Fund including termination our duties and obligations and their delegation by us investment, borrowing and valuation powers and procedures fees and recoverable expenses, and the limiting of our liability and our indemnification amendment of the Constitution and investor meetings the method by which complaints are dealt with the calculation, entitlement to and distribution of income and proceeds of the Fund on termination unit issue and withdrawal mechanisms including when we can take the maximum time permitted to pay a withdrawal the calculation of unit value. The Constitution may be amended by us at any time if the amendments are not adverse to the rights of investors. Otherwise we must obtain the approval of investors by special resolution. You may inspect the Constitution at our offices on any business day, free of charge. Alternatively, if you would like a copy, please forward your request to us in writing. Our rights, obligations and role as Manager The role of the Manager is to make investment decisions in relation to the Fund and carry out the general administration and operation of the Fund. Legal title to assets of the Fund is held by the custodian on behalf of the Manager. The Manager must comply with the Fund s Constitution and the Corporations Act. The Fund s Compliance Plan, sets out the measures we take to ensure compliance with these requirements. Among other things, the Corporations Act provides that we must act in your best interests and give priority to your interests if they conflict with our own. The Constitution limits your liability to the value of your investment in the Fund so you should not, solely by reason of being a unitholder, be personally liable to indemnify the Manager or any creditor of the Fund should the Fund be unable to meet its debts. However, we cannot give you an absolute assurance about your liability because the issue has not been finally determined by a superior court. Proxy voting As a Fund Manager we acknowledge that we have an obligation to participate in the corporate governance of companies by exercising proxy votes. To obtain a copy of our proxy voting record for the previous year please contact our Client Services Consultants on Investments and borrowing There are no limitations in the Constitution on the types of assets able to be acquired or the extent of borrowing. Apart from derivatives and short term needs, it is not our intention to borrow on behalf of the Fund. If we change our investment or borrowing policy we will notify you not less than ten days before the change takes effect. Termination The Fund terminates 80 years from commencement, but we can terminate it earlier by notice to you. On termination we will realise the assets and pay your share of the net proceeds to you. 11

14 Related parties and service providers The Manager may use the services of other companies within the Credit Suisse Group and pay fees for their services at commercial rates. The types of services the Manager may use for the management of the Fund are broking, underwriting, investment management, futures trading and clearing. The Manager may also use the services of external companies. Currently the Manager uses the services of Capital International, Inc., a US based asset manager appointed by the Manager to provide stock selection for the Fund. Indirect investors Investors accessing the Fund through an investor directed portfolio services (IDPS) or IDPS like scheme (commonly a master trust or wrap account) may use this PDS to give a direction to the operator of that service to invest in the Fund. Indirect investors do not become unitholders nor do they acquire the rights of an investor. The operator of that service acquires those rights and can exercise, or decline to exercise them, on behalf of indirect investors. Indirect investors do not receive income or reports directly from us, nor do they directly participate in investor meetings or the winding up of the Fund. Withdrawal times depend on the withdrawal times of the service. Indirect investors should seek appropriate tax advice. In addition to reading this PDS, indirect investors should carefully read the service operator s offer document, which explains the service and the fees payable by the indirect investor to the service operator. Disclosure of interests Credit Suisse Asset Management (Australia) Limited receives fees as Manager of the Fund. Directors of the Manager may receive a salary as employees of Credit Suisse Group and Credit Suisse Asset Management (Australia) Limited. From time to time the Directors may hold interests in shares of the Credit Suisse Group or units in the Fund. Current product disclosure statement This PDS may be updated or replaced from time to time with the duration generally being 12 months from the date of issue. A copy of the most current PDS for the Fund is available from us on request at any time, free of charge. You can either call our Client Services Consultants on or access our internet site for a copy. Complaints We have arrangements in place for handling your complaints. If you have a complaint about your investment either contact our Client Services Consultants on or write to The Complaints Resolution Officer Credit Suisse Asset Management (Australia) Limited Reply Paid 240 Royal Exchange NSW 1224 We will endeavour to resolve your complaint in accordance with the complaint handling provisions of the Constitution and the policy for complaints resolution. We will let you know in writing that your complaint has been acknowledged within 14 days of receipt. Every effort will be made to resolve your complaint within 45 days of receipt. If your complaint is not resolved to your satisfaction or you have not received a response from us within 45 days of our receipt of your correspondence, you may contact the Financial Industry Complaints Service (FICS) of which we are a member. This external body has been approved by ASIC to consider the merits of complaints brought forward to it. You can contact FICS at: Financial Industry Complaints Service PO Box 579 Collins Street West Melbourne VIC 8007 or by phoning Environmental, social and ethical considerations Decisions about the selection, retention or realisation of investments in the Fund are primarily based on economic factors and we do not take into account labour standards, environmental, social or ethical considerations when making those decisions except to the extent that they impact on the financial value of the investment. 12

15 About us Credit Suisse is a leading global financial services organisation headquartered in Zurich. It is focused on serving its clients in three business lines: Investment Banking, Private Banking, and Asset Management. Established in 1856, few firms can match the experience, expertise and heritage that Credit Suisse strives to deliver to clients. The asset management business of Credit Suisse is comprised of the bank s discretionary asset management businesses and manages portfolios, pooled schemes, and other investment vehicles for a broad spectrum of clients, ranging from governments, institutions, and corporations to private individuals around the world. Credit Suisse s asset management business offers products across the full spectrum of investment asset classes, ranging from equities, fixed income, and multiple asset class products, to alternative investments such as real estate, hedge funds, private equity and volatility management. Credit Suisse s asset management business has local, regional and global teams in more than 17 countries dedicated to delivering the best investment ideas and capabilities to clients. In Australia, our strength and structure has helped Credit Suisse fulfil the expectations of a large and diverse group of investors, including superannuation funds, Government agencies, large companies and private individuals. As at 30 September 2005, Credit Suisse Asset Management (Australia) Limited has approximately AUD 19.8 billion in funds under management. Investment philosophy Our committed team of disciplined and experienced investment managers have a philosophy of selecting investments based primarily on quality. By leveraging off our global and local resources, we can combine in depth analysis with a rigorous investment process, enabling us to identify profitable investment opportunities. Supporting this process, we carefully manage investment risk, constructing portfolios to achieve investment returns while reducing risk and volatility. This philosophy allows us to create a diverse range of investment portfolios designed to meet our clients expectations. We believe that investing in high quality global companies that have a sustainable competitive edge and are reasonably priced relative to their long term earnings potential will help to deliver outperformance over the long term. A global network of fund managers and analysts identify high quality companies through extensive company visits and global research which enables us to add value. We believe we can add further value to the portfolio by actively managing currency exposure. For more information on the asset management capabilities of Credit Suisse, visit our website at Credit Suisse Asset Management global network Asia Pacific Australia Hong Kong Japan Korea Americas USA Brazil Europe Channel Islands Czech Republic France Germany Hungary Italy Luxembourg Netherlands Poland Spain Switzerland UK 13

16 This PDS dated 16 January 2006 is issued by Credit Suisse Asset Management (Australia) Limited (ABN and AFS Licence Number ), Level 31 Gateway, 1 Macquarie Place, Sydney NSW Globally, Credit Suisse Asset Management (Australia) Limited is the Australian Asset Management business of Credit Suisse. Throughout this PDS the Manager, we, us, and our means Credit Suisse Asset Management (Australia) Limited. This PDS has been prepared without taking into account your individual objectives, financial situation or needs. Therefore before acting on information in this PDS, you should assess the appropriateness of the information, and consider talking to a financial adviser before making an investment decision. If you have obtained a copy of this PDS electronically, you need to print all of it. If you would like us to send you a paper copy of this PDS, contact us and we will send you one free of charge. The offer to which this PDS relates is available only to persons receiving this PDS within Australia. Neither money invested in the Fund nor any particular rate of return on any money invested in the Fund is guaranteed by Credit Suisse Asset Management (Australia) Limited, Credit Suisse (the bank ) (ABN and AFS Licence Number ), or by any other member of the Credit Suisse Group. Your investment does not constitute a deposit with or other liability of the bank or any other member of the Credit Suisse Group. An investment in the Fund is a unit linked investment. Such investments are subject to risk. This means that the value of your investment can fluctuate up or down with the value of assets of the Fund. Investors should be aware that these risks may result in possible loss of income, principal invested and possible delays in repayment. Information relating to the Fund that is not materially adverse may change from time to time. This information may be updated and made available to you on our internet site at or by contacting us on A paper copy of any updated information is available free on request. 14

17 For more information please contact CREDIT SUISSE ASSET MANAGEMENT (AUSTRALIA) LIMITED PO Box R240 Royal Exchange NSW 1225 Client Services am to 6pm Monday to Friday (EST) Adviser Services am to 6pm Monday to Friday (EST) or visit our internet site at CSA284