Managed Account. Managed Model Profiles. Morningstar. 19 April 2018

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1 Managed Account Managed Model Profiles 19 April 2018 Morningstar Morningstar Diversified Income Portfolio Morningstar Moderate Portfolio Morningstar Balanced Portfolio Morningstar Growth Portfolio Morningstar High Growth Portfolio Netwealth Investments Limited ABN AFSL Responsible Entity of the Netwealth Managed Account ARSN

2 This document has been prepared and issued by Netwealth Investments Limited (ABN , AFS Licence No ) ( Netwealth, we, us or our ) as the Responsible Entity of the Netwealth Managed Account ( Managed Account ) which is a registered managed investment scheme (ARSN ). This document describes the Morningstar Managed Models for which Netwealth has appointed Morningstar Investment Management Australia Limited (ABN , AFS Licence No ) ( Morningstar ) as the. The information in this document is taken to be included in the Managed Account Product Disclosure Statement ( PDS ) issued by Netwealth. If you received this document electronically, we will provide a paper copy free upon request. If obtaining an electronic copy, please ensure you have a complete copy of it, and all of the relevant parts of the PDS. You should consider all parts of the PDS and all of the documents referred to in the PDS that are relevant to you before making an investment decision. The information in this document about Morningstar is based on information provided to us by Morningstar and: we have not independently verified the information provided by Morningstar and, to the extent permitted by law, take no responsibility for it; neither Morningstar nor any of its related bodies corporate has authorised or caused the issue of this document or the PDS or been involved in the preparation of them other than providing information about Morningstar; and Morningstar and each of its related bodies corporate expressly disclaim and take no responsibility for any part of this document or the PDS other than in respect of any part of this document to which it has expressly given its consent. We may choose not to implement the advice provided by Morningstar in relation to the investment portfolio for the Morningstar Managed Models where we believe that doing so may breach relevant law or result in an outcome that is not consistent with the investment mandate of the Morningstar Managed Models and we may adjust the investment portfolios of the Morningstar Managed Models in our absolute discretion. An investment in the Managed Account is not a deposit with or other liability of Morningstar or any of its related bodies corporate and is subject to investment risk including possible delays in repayment and loss of income or principal invested. Neither Morningstar nor any of its related bodies corporate guarantees the performance of the Managed Account, the repayment of capital from the Managed Account or any particular rate of return. Morningstar has given and not withdrawn its consent to be named in this document in the form and context in which it is named. Contact details Netwealth Head office Level 8 52 Collins Street Melbourne VIC 3000 Postal address Netwealth Investments Limited PO Box 336 South Melbourne VIC 3205 Freecall Phone Fax contact@netwealth.com.au Web netwealth.com.au 2 Managed Account Morningstar Managed Model Profiles 19 April 2018

3 About the Morningstar is a leading provider of asset allocation, portfolio construction and investment research services with over 35 years experience in the United States, Australia and other international markets. Morningstar advises and manages funds for superannuation funds, institutions, platform distributors, financial advisers and individuals. Morningstar s disciplined investment approach delivers objective, cost effective and holistic solutions for its clients - helping them reach their financial goals. This longterm, valuation driven approach is underpinned by an emphasis on preserving capital and undertaking comprehensive fundamental analysis of global asset classes and securities. Morningstar Managed Model Managed Funds List The Managed Models referred to in this document may invest in managed funds. The managed funds that may currently be held in the Morningstar Managed Models, along with their product disclosure statements, are listed in the Morningstar Managed Model Managed Funds List available on our website at netwealth.com.au/managedaccountforms. Before you invest using a Managed Model that can invest in managed funds, you must be given and read the current product disclosure statement for any managed funds that may be included in the Managed Model. To use the Managed Account, you must first apply to open a Netwealth platform account. If you have appointed your adviser as your adviser representative in relation to your platform account, your adviser representative offers to act as your agent to receive on your behalf any documents relating to any of the assets acquired or held in your managed account and provide this information to you. By completing the Application, you accept your adviser representative s offer and appoint your adviser representative as your agent authorised to receive such documents. We agree to ensure that your adviser representative (in their capacity as your agent) receives the current product disclosure statement for any managed funds included in your managed account before those managed funds are acquired for you. Your financial adviser should give you the current product disclosure statements for those managed funds. 3 Managed Account Morningstar Managed Model Profiles 19 April 2018

4 Morningstar Diversified Income Portfolio Managed Model Profile Model code MACC To earn a rate of return that exceeds CPI by at least 2% per annum (after the investment management fee) with a level of income at or above prevailing cash levels. Investors with an investment time horizon of 4 years who seek a level of income at or above prevailing cash levels and the potential for long term capital growth through a diversified portfolio with an emphasis on income producing assets across multiple asset classes, investment strategies, investment managers and styles. This strategy is to invest in an actively managed diversified portfolio of securities across both defensive asset classes, such as cash and fixed interest securities, and growth asset classes such as Australian equities, property and global securities. In general, the portfolio s long term average exposure will be around 60% defensive assets and 40% growth assets, however the allocations will be actively managed within the allowable ranges depending on market conditions. Australian equities 0 to 40 International equities 0 to 40 Australian Property 0 to 25 Global Property 0 to 25 Global infrastructure 0 to 25 Alternatives 0 to 20 Australian fixed interest 0 to 40 International fixed interest 0 to 40 Global inflation linked bonds 0 to 20 Cash 1 to % p.a. As this portfolio may typically hold between 40 and 50 assets (and possibly more), it is important for you to understand that it is likely that an investment of less than 4 Managed Account Morningstar Managed Model Profiles 19 April 2018

5 Morningstar Moderate Portfolio Managed Model Profile Model code MACC To earn a rate of return that exceeds CPI by at least 1% per annum (after the investment management fee) over rolling 3-year periods by investing in a diversified portfolio of defensive and growth assets with an emphasis on defensive asset classes. Investors with an investment time horizon of 3 years who seek the potential for stable income and some capital growth and diversification across multiple asset classes, investment strategies, investment managers and styles. This strategy is to invest in an actively managed diversified portfolio of assets across both defensive asset classes, such as cash and fixed interest securities, and growth asset classes such as Australian equities, property and global securities. Assets may include a combination of listed securities, exchange traded funds and managed funds. In general, the portfolio s long-term average exposure will be around 70% defensive assets and 30% growth assets; however the allocations will be actively managed within the allowable ranges depending on market conditions. Australian equities 0 to 30 International equities 0 to 30 Global property and infrastructure 0 to 25 Alternatives 0 to 25 Australian fixed interest 0 to 50 International fixed interest 0 to 50 Cash 10 to % p.a. As this portfolio may typically hold between 40 and 50 assets (and possibly more), it is important for you to understand that it is likely that an investment of less than 5 Managed Account Morningstar Managed Model Profiles 19 April 2018

6 Morningstar Balanced Portfolio Managed Model Profile Model code MACC To earn a rate of return that exceeds CPI by at least 2.5% per annum (after the investment management fee) over rolling 5-year periods by investing in a diversified portfolio of defensive and growth assets. Investors with an investment time horizon of 5 years who seek the potential for moderate capital growth with some income and diversification across multiple asset classes, investment strategies, investment managers and styles. This strategy is to invest in an actively managed diversified portfolio of assets across both growth asset classes such as Australian equities, property and global securities; and defensive asset classes, such as cash and fixed interest securities. Assets may include a combination of listed securities, exchange traded funds and managed funds. In general, the portfolio s long-term average exposure will be around 50% growth assets and around 50% defensive assets; however the allocations will be actively managed within the allowable ranges depending on market conditions. Australian equities 0 to 45 International equities 0 to 45 Global property and infrastructure 0 to 35 Alternatives 0 to 25 Australian fixed interest 0 to 40 International fixed interest 0 to 40 Cash 1 to % p.a. As this portfolio may typically hold between 40 and 50 assets (and possibly more), it is important for you to understand that it is likely that an investment of less than 6 Managed Account Morningstar Managed Model Profiles 19 April 2018

7 Morningstar Growth Portfolio Managed Model Profile Model code MACC To earn a rate of return that exceeds CPI by at least 3.5% per annum (after the investment management fee) over rolling 7-year periods by investing in a diversified portfolio of growth and defensive assets with an emphasis on growth assets. Investors with an investment time horizon of 7 years who seek the potential for capital growth and diversification across multiple asset classes, investment strategies, investment managers and styles. This strategy is to invest in an actively managed diversified portfolio of assets across both growth asset classes such as Australian equities, property and global securities; and defensive asset classes, such as cash and fixed interest securities. Assets may include a combination of listed securities, exchange traded funds and managed funds. In general, the portfolio s long-term average exposure will be around 70% growth assets and around 30% defensive assets; however the allocations will be actively managed within the allowable ranges depending on market conditions. Australian equities 0 to 60 International equities 0 to 60 Global property and infrastructure 0 to 40 Alternatives 0 to 25 Australian fixed interest 0 to 30 International fixed interest 0 to 30 Cash 1 to % p.a. As this portfolio may typically hold between 40 and 50 assets (and possibly more), it is important for you to understand that it is likely that an investment of less than 7 Managed Account Morningstar Managed Model Profiles 19 April 2018

8 Morningstar High Growth Portfolio Managed Model Profile Model code MACC To earn a rate of return that exceeds CPI by at least 4.5% per annum (after the investment management fee) over rolling 9-year periods by investing in a diversified portfolio of mainly growth assets with a small portion of defensive asset classes. Investors with an investment time horizon of 9 years who seek the potential for moderate to high capital growth and diversification across multiple asset classes, investment strategies, investment managers and styles. This strategy is to invest in an actively managed diversified portfolio of assets across both growth asset classes such as Australian equities, property and global securities; and defensive asset classes, such as cash and fixed interest securities. Assets may include a combination of listed securities, exchange traded funds and managed funds. In general, the portfolio s long-term average exposure will be around 90% growth assets and around 10% defensive assets; however the allocations will be actively managed within the allowable ranges depending on market conditions. Australian equities 0 to 75 International equities 0 to 75 Global property and infrastructure 0 to 45 Alternatives 0 to 25 Australian fixed interest 0 to 20 International fixed interest 0 to 20 Cash 1 to % p.a. As this portfolio may typically hold between 40 and 50 assets (and possibly more), it is important for you to understand that it is likely that an investment of less than 8 Managed Account Morningstar Managed Model Profiles 19 April 2018