Standard Life Investments Absolute Return Global Bond Strategies Trust Product Disclosure Statement

Transcription

1 Standard Life Investments Absolute Return Global Bond Strategies Trust Product Disclosure Statement ARSN APIR ETL0134AU Issue Date 28 September 2017 New Zealand Investors: Selling Restriction The offer made to New Zealand investors is available only to, and may only be accepted by, a Wholesale Investor who has completed a Wholesale Investor Certification. Each New Zealand investor acknowledges and agrees that: (a) he, she or it has not offered, sold, or transferred, and will not offer, sell, or transfer, directly or indirectly, any units in a Fund; and (b) he, she or it has not granted, issued, or transferred, and will not grant, issue, or transfer, any interests in or options over, directly or indirectly, any units in a Fund; and (c) he, she or it has not distributed and will not distribute, directly or indirectly, a PDS or any other offering materials or advertisement in relation to any offer of any units in a Fund, in each case in New Zealand other than to a person who is a Wholesale Investor; and (d) he, she or it will notify Equity Trustees Limited if he, she, or it ceases to be a Wholesale Investor. All references to Wholesale Investor in this document are a reference to Wholesale Investor in terms of clause 3(2) of Schedule 1 of the Financial Markets Conduct Act 2013 (New Zealand). Contents 1. Fund at a glance 3 2. ASIC benchmarks 4 3. Disclosure principles 5 4. Who is managing the Fund? 7 5. How the Fund Invests 8 6. Managing risk Investing and withdrawing Keeping track of your investment Fees and other costs Taxation Other important information Glossary of important terms 28 Investment Manager and Client Services Standard Life Investments Limited ABN Incorporated in Scotland SC Web: australia.standardlifeinvestments.com/ institutional Ph: Administrator and Custodian State Street Australia Limited Unit Registry Level 14, 420 George Street SYDNEY NSW 2000 Ph: Fax: Responsible Entity Equity Trustees Limited ABN , AFSL GPO Box 2307 Melbourne VIC 3001 Ph: Web: Standard Life Investments Absolute Return Global Bond Strategies Trust PDS 1

2 This Product Disclosure Statement ( PDS ) was issued on 28 September This PDS is for the offer of interests in the Standard Life Investments Absolute Return Global Bond Strategies Trust ARSN (referred throughout this PDS as the Fund ). This PDS has been prepared and issued by Equity Trustees Limited (ABN , Australian Financial Services Licence ( AFSL ) No in its capacity as the responsible entity of the Fund (referred throughout this PDS as the Responsible Entity, Equity Trustees, us or we ). The investment manager is Standard Life Investments Limited (referred to throughout this PDS as Standard Life Investments or the Investment Manager ). The Responsible Entity has authorised the use of this PDS as disclosure to investors and prospective investors who invest directly in the Fund, as well as investors and prospective investors of an investor directed portfolio service, master trust, wrap account or an investor directed portfolio service-like scheme ( IDPS ). This PDS is available for use by persons applying for units through an IDPS ( Indirect Investors ). The operator of an IDPS is referred to in this PDS as the IDPS Operator and the disclosure document for an IDPS is referred to as the IDPS Guide. If you invest through an IDPS, your rights and liabilities will be governed by the terms and conditions of the IDPS Guide. Indirect Investors should carefully read these terms and conditions before investing in the Fund. Indirect Investors should note that they are directing the IDPS Operator to arrange for their money to be invested in the Fund on their behalf. Indirect Investors do not become unitholders in the Fund or have rights of unitholders. The IDPS Operator becomes the unitholder in the Fund and acquires these rights. Indirect Investors should refer to their IDPS Guide for information relating to their rights and responsibilities as an Indirect Investor, including information on any fees and charges applicable to their investment. Information regarding how Indirect Investors can apply for units in the Fund (including an application form ( Application Form ) where applicable) will also be contained in the IDPS Guide. Equity Trustees accepts no responsibility for IDPS Operators or any failure by an IDPS Operator to provide Indirect Investors with a current version of this PDS as provided by Equity Trustees or to withdraw the PDS from circulation if required by Equity Trustees. Please ask your adviser if you have any questions about investing in the Fund (either directly or indirectly through an IDPS). This PDS is prepared for your general information only. It is not intended to be a recommendation by the Responsible Entity, Investment Manager, any associate, employee, agent or officer of the Responsible Entity, Investment Manager or any other person to invest in the Fund. This PDS does not take into account the investment objectives, financial situation or needs of any particular investor. You should not base your decision to invest in the Fund solely on the information in this PDS. You should consider the suitability of the Fund in view of your financial position and investment objectives and needs and you may want to seek advice before making an investment decision. Equity Trustees and its employees, agents or officers do not guarantee the success, repayment of capital or any rate of return on income or capital or the investment performance of the Fund. Past performance is no indication of future performance. Units in the Fund are offered and issued by the Responsible Entity on the terms and conditions described in this PDS. You should read this PDS in its entirety because you will become bound by it if you become a direct investor in the Fund. The offer made in this PDS is available only to Wholesale Clients receiving this PDS in Australia (electronically or otherwise) and persons who qualify as wholesale investors within the meaning of clause 3(2) of Schedule 1 of the Financial Markets Conduct Act 2013 receiving this PDS in New Zealand (electronically or otherwise) who have completed a wholesale investor certification. This PDS has not been, and will not be, lodged with the Registrar of Financial Service Providers in New Zealand and is not a product disclosure statement under the Financial Markets Conduct Act New Zealand Wholesale Investors wishing to invest in the Fund should be aware that there may be different tax implications of investing in the Fund and should seek their own tax advice as necessary. If you received this PDS electronically we will provide a paper copy free upon request during the life of this PDS. Please call Standard Life Investments on for a copy. This PDS does not constitute a direct or indirect offer of securities in the US or to any US Person as defined in Regulation S under the US Securities Act of 1933 as amended ( US Securities Act ). Equity Trustees may vary its position and offers may be accepted on merit at Equity Trustees discretion. The units in the Fund have not been, and will not be, registered under the US Securities Act unless otherwise determined by Equity Trustees and may not be offered or sold in the US to, or for, the account of any US Person (as defined) except in a transaction that is exempt from the registration requirements of the US Securities Act and applicable US state securities laws. Information in this PDS that is not materially adverse is subject to change from time to time. We may update this information. You can obtain any updated information: by calling Standard Life Investments on ; or by visiting Standard Life Investments website at literature/index.html A paper copy of the updated information will be provided free of charge on request. Unless otherwise stated, all fees quoted in this PDS are inclusive of GST, after allowing for an estimate for Reduced Input Tax Credits ( RITC ), and all amounts are in Australian dollars. 2 Standard Life Investments Absolute Return Global Bond Strategies Trust PDS

3 1. Fund at a glance Fund details Name of the Fund Standard Life Investments Absolute Return Global Bond Strategies Trust ARSN APIR ETL0134AU Investment objective 1 The primary investment objective of the Fund is to deliver a positive absolute return over the medium to long term in all market conditions. The fund is actively managed, with a wide investment remit to target a level of return over rolling 3 year periods equivalent to cash^ plus 3% per year, gross of fees. We would expect annualised volatility* to be between 2% and 4% in ordinary market conditions. Investments held The Fund will invest in the Australian Dollar Hedged Share Class of the Standard Life Investments Global SICAV Absolute Return Global Bond Strategies Sub Fund ( Underlying Fund ) and may hold up to 5% in cash. Who should invest? The Fund is only available to institutional and individual investors who are Wholesale Clients (in Australia) or Wholesale Investors (in New Zealand). Recommended investment The minimum suggested investment time frame for the Fund is at least 5 years. timeframe We recommend that you consider, with your financial adviser, the suggested investment period for the Fund in relation to your own investment timeframe. You should review this regularly to ensure that the Fund continues to meet your investment needs. Minimum initial investment $50,000 Minimum additional $5,000 investment Minimum withdrawal amount $5,000 Minimum balance $50,000 Cut off time for applications 3pm AEDT on a Business Day. and withdrawals Cooling Off As the Fund is only available to Wholesale Clients and Wholesale Investors, no cooling off rights apply. Indirect Investors should seek advice from their IDPS Operator as to whether cooling off rights apply. Valuation frequency Daily. Unit pricing Daily. Access to funds Generally within 7 days of receipt of a withdrawal request. The Constitution allows Equity Trustees to make payment up to 30 days after receipt of a request which may be further extended in certain circumstances. Income distribution The Fund usually distributes income (if any) annually at the end of June. Distributions are calculated on the last day of each accounting period end (30 June), and are normally paid to investors within 14 days of the period end. Equity Trustees may amend the distribution frequency without notice. Management costs 0.96% (inclusive of GST less RITC) Entry fee/ exit fee Nil Performance fee Nil 1 The investment objective is expressed before the deduction of management fees, expense recoveries and taxation. See pages for details on fees and costs and pages for details on taxation. The investment objective is not a forecast. It is only an indication of what the investment strategy aims to achieve over the medium to long term, assuming financial markets remain relatively stable during that time. The Fund may not achieve its investment objective. Returns are not guaranteed. ^ Cash returns are referenced to Bloomberg AusBond Bank Bill Index *measured over 3 years of monthly returns. Standard Life Investments Absolute Return Global Bond Strategies Trust PDS 3

4 2. ASIC benchmarks The information summarised in this table and explained in detail in the identified section reference is intended to assist investors with analysing the risks of investing in the Trust. Investors should consider this information together with the detailed explanation of various benchmarks and principles referenced throughout this PDS and the key risks of investing in the Trust highlighted in section 6 of this PDS. ASIC Benchmark Valuation of assets This benchmark addresses whether valuations of the Fund s non-exchange traded assets are provided by an independent administrator or an independent valuation service provider. Is the benchmark satisfied? Summary For further information Yes We have appointed an independent administrator, State Street Australia Limited, to value the Fund s assets. Please refer to page 7 of this PDS for further information. Periodic reporting This benchmark addresses whether the responsible entity of the Fund will provide periodic disclosure of certain key information on an annual and monthly basis. Yes We will report to you on the following as at 30 June each year: Net Asset Value ( NAV ) of the Fund; unit price actual asset allocation; liquidity profile of assets of the Fund; maturity profile of liabilities of the Fund; leverage ratio for the Fund; Derivative counterparties; updated investment performance; and any change in key service providers We will provide the report as soon as practicable after 30 June each year. We will make this information available at literature/index.html and update it as required. In addition to annual reporting, monthly updates (which may be given on the website) are required for: current total NAV of the Fund and redemption value of a unit (for each class) when NAV calculated; since last report on the following the net return on Fund s assets after fees, costs and taxes; any material change in Fund s risk profile; any material change in Fund s investment strategy; and any change in individuals playing a key role in investment decisions for Fund; and any change to key service providers, including any change in their related party status. Please refer to page 19 of this PDS for further information. 4 Standard Life Investments Absolute Return Global Bond Strategies Trust PDS

5 3. Disclosure principles Investment strategy Investment manager Trust structure Summary The Fund will invest in the Underlying Fund and may hold up to 5% in cash. The objective of the Underlying Fund is to deliver a positive absolute return in the form of both income and capital growth over the medium to longer term in all market conditions. The Fund is actively managed, with a wide investment remit to target a level of return over rolling 3 year periods equivalent to cash^ plus 3% per year, gross of fees. We would expect it to exhibit annualised volatility* of between 2% and 4% in ordinary market conditions. The Fund has been established as a feeder fund for the Underlying Fund and invests in: - unlisted international equities (units in the Underlying Fund) (95 100%); and - cash equivalent investments (0 5%). The Underlying Fund may invest in: - over the counter ( OTC ) Derivatives; - fixed interest securities; - cash equivalent investments; and - other investments (including eligible transferable securities, and undertakings for collective investment). Other than limits imposed by UCITS Regulations, the Underlying Fund does not have explicit limits on the above investments. In practice, limits on the above investment are determined in consideration of Underlying Fund s liquidity requirements and risk profile. The Underlying Fund uses exchange traded and OTC Derivatives including short selling to achieve its investment objectives. At present the Fund and Underlying Fund do not intend to borrow except for short-term cash management purposes. The strategy will produce investment returns through dynamic allocation to a wide range of return seeking investment opportunities in traditional and advanced asset classes, and also separately exploits security selection expertise. The Underlying Fund routinely uses a variety of conventional derivatives for investment, liquidity, efficiency and hedging purposes and may take both long and short positions. The key risks for this investment strategy include investment strategy risk, counterparty risk, Derivatives risk and collateral risk. See Section 6: Managing risk for an outline of key risk factors and Section 5.8: Diversification guidelines for key aspects of our risk management strategy. The required notification will be provided to investors should any material change occur in the investment strategy of the Fund. Standard Life Investments Limited Standard Life Investments is the Investment Manager of the Fund and the Underlying Fund and is approved and regulated by the Financial Conduct Authority in the United Kingdom. The Fund is structured as an Australian trust, with Equity Trustees acting as responsible entity. The Fund invests in the Underlying Fund which is a Luxembourg domiciled SICAV regulated by the Commission De Surveillance Du Secteur Financier ( CSSF ). The Fund is administered by State Street Australia Limited and the Underlying Fund is administered by Bank of New York Mellon (Luxembourg) S.A. The Fund pays investment management fees. No investment management charge is deducted from the Underlying Fund. There are some additional expenses in the Underlying Fund including audit, custody and administration fees. Section (for further information) Section 5.2, 5.8 and 6 Section 4 Section 5.3 Standard Life Investments Absolute Return Global Bond Strategies Trust PDS 5

6 Valuation, location and custody of assets Liquidity Leverage Derivatives Short selling Withdrawals Summary The Fund assets are held by its custodian: State Street Australia Limited The assets of the Underlying Fund are held by its custodian: The Bank of New York Mellon (Luxembourg) S.A. 2-4 Rue Eugene Ruppert L-2453 Luxembourg The Fund is available for subscriptions and redemptions on any Business Day. The Underlying Fund is also available for subscription and redemption on any day that is a business day in Luxembourg. Because the Underlying Fund is a Luxembourg domiciled SICAV, its liquidity is managed in accordance with UCITS Regulations. The Fund and the Underlying Fund may borrow on a secured or unsecured basis for any purpose (up to 10% of the Fund). At present the Fund and Underlying Fund do not intend to borrow except for short-term cash management purposes. The use of Derivatives and other instruments may cause the nominal investment exposure of the Underlying Fund to routinely exceed 100% of the value of assets. Derivatives are not used in the Fund. Derivatives are used in the Underlying Fund to achieve the investment objective. The Underlying Fund will seek to maintain a diversified portfolio of Derivatives including futures, options, swaps, forward currency contracts. The Fund does not take short positions. The Underlying Fund has the ability to take both long and short market exposures across a range of fixed income instruments and sectors, however it does not take short positions in individual securities and it would be unlikely to be net short of credit exposure. There are no formal limits on the level of short selling permitted but there are limits on the gross exposures of total positions for the fund as well as risk limits for different types of exposures (interest rates, currencies, etc). This is done in a risk appropriate manner with risk analysis conducted prior to any new strategy being implemented and diversification benefits explored on the overall portfolio level. The Underlying Fund strategy is based on a proprietary multi-year view of markets. Generally within 7 days of receipt of a withdrawal request. The Constitution allows Equity Trustees to make payment up to 30 days after receipt of a request, which can be extended in certain circumstances. ^ Cash returns are reference to Bloomberg AusBond Bank Bill Index *measured over 3 years of monthly returns. Section (for further information) Section 5.7 Section? Section 5.6 Section 5.10 Section 5.9 Section? 6 Standard Life Investments Absolute Return Global Bond Strategies Trust PDS

7 4. Who is managing the Fund? The Responsible Entity Equity Trustees Limited Equity Trustees Limited ABN AFSL ( Equity Trustees ), a subsidiary of EQT Holdings Limited ABN , which is a public company listed on the Australian Securities Exchange (ASX: EQT), is the Trust s Responsible Entity and issuer of this PDS. Established as a trustee and executorial service provider by a special Act of the Victorian Parliament in 1888, today Equity Trustees is a dynamic financial services institution which continues to grow the breadth and quality of products and services on offer. Equity Trustees responsibilities and obligations as the Trust s Responsible Entity are governed by the Trust s Constitution ( Constitution ), the Corporations Act and general trust law. Equity Trustees has appointed Standard Life as the Investment Manager of the Trust. Equity Trustees has appointed a Custodian to hold the assets of the Trust. The Custodian has no supervisory role in relation to the operation of the Trust and is not responsible for protecting your interests. The Investment Manager Standard Life Investments Limited Standard Life Investments is an investment company and has been appointed by Equity Trustees as the Investment Manager. Standard Life Investments focuses on delivering consistently leading investment results for its clients. It does this by working as an integrated global team using an investment style that focuses on change and processes that are both robust and repeatable. Standard Life Investment s global investment network, enhanced by their presence on the ground in key markets, gives them a clear understanding of worldwide investment issues. Standard Life Investments Limited (ABN ) is incorporated in Scotland (No. SC123321) and is exempt from the requirement to hold an AFSL under paragraph 911A(2)(l) of the Corporations Act 2001 (Cth) (the Act ) in respect of the provision of financial services as defined in Schedule A of the relief instrument no.10/0264 dated 9 April 2010 issued to Standard Life Investments Limited by the ASIC. These financial services are provided only to wholesale clients as defined in subsection 761G(7) of the Act. Standard Life Investments is regulated in the United Kingdom by the Financial Conduct Authority under the laws of the United Kingdom, which differ from Australian laws. The appointment of Standard Life Investments may be terminated by the Responsible Entity if Standard Life Investments is in default under the investment management agreement including if it breaches any material provision of the agreement and fails to rectify the breach within 10 Business Days of receiving written notice by the Responsible Entity requiring it to do so. At the date of this PDS, the key people involved in managing the Underlying Fund are Roger Sadewsky, Katy Forbes and Adam Skerry. No adverse regulatory finding has ever arisen against them. Each of them is involved on a regular basis (as a team, usually spending between 90 and 120 hours in total per week) in managing the Fund. Roger Sadewsky Investment Director Roger has been involved in the management of the Absolute Return Global Bond Strategies Trust since inception. He provides research input into the macro fixed income environment and has been central to the development and expertise in credit Derivatives. His previous investment experience over 32 years includes rates, credit and credit Derivatives. Roger s qualifications include BA (Hons) in Politics, an MBA (Cranfield School of Management) and an Investment Management Certificate. It is expected Roger will spend approximately 30 hours per week (on average) on fund management activities which include managing the Underlying Fund. Katy Forbes Investment Director Katy has been involved in the management of the Absolute Return Global Bond Strategies Trust since Q Katy s investment experience, over 15 years, includes working in treasury, Derivatives and inflation linked bonds. Katy s qualifications include a BSc (Hons.) in Maths and Statistics and an Investment Management Certificate. Katy is a Chartered Financial Analyst Charterholder. It is expected Katy will spend approximately 30 hours per week (on average) on fund management activities which include managing the Underlying Fund. Adam Skerry Investment Director Adam Skerry joined Standard Life Investments as an Investment Director on the Real Returns Team in March In May 2016 he was appointed joint manager of the Absolute Return Global Bond Strategies Fund with Roger and Katy. He also acts as manager of both UK and Global Inflation Linked Bond portfolios analysing key market themes and feeding inflation insights into both his own funds and the absolute return suite of portfolios. He began his career in 1998 at PricewaterhouseCoopers and then moved onto other investment management roles at Henderson Global Investors, Saxon Financial, and Baring Asset Management. Adam has 18 years experience in the industry. Adam s qualifications include BA (Hons) in Modern History & Economics (1998), IMC (1999), ASIP (2001). It is expected Adam will spend approximately 30 hours per week (on average) on fund management activities which include managing the Underlying Fund. The Custodian and Administrator State Street Australia Limited ( State Street ) State Street is the administrator of the Fund and provides administration and accounting services. State Street is responsible for calculating the Fund s NAV. State Street has been appointed as the custodian and administrator for the Fund under a custody and investment administration agreement dated 27 May 2014 (as amended) ( Custody and Investment Administration Agreement ). State Street s role as custodian is limited to holding assets of the Fund. As administrator, State Street is responsible for the day to day administration of the Fund. State Street has no supervisory role in relation to the operation of the Fund and has no liability or responsibility to you for any act done or omission made in accordance with the Custody and Investment Administration Agreement. Standard Life Investments Absolute Return Global Bond Strategies Trust PDS 7

8 5. How the Fund Invests 5.1 Investment objective The primary investment objective of the Fund is to deliver a positive absolute return over the medium to long term in all market conditions. The Fund s benchmark is the Bloomberg AusBond Bank Bill Index and its performance target is to outperform the benchmark by 3% per annum gross of fees, on a three year rolling basis**. The fund is actively managed, with a wide investment remit to target a level of return over rolling three-year periods equivalent to cash^ plus 3% per year, gross of fees. We would expect annualised volatility* to be between 2% and 4%. See pages for details on fees and other costs and pages for information on taxation. The investment objective is not a forecast, it is only an indication of what the investment strategy aims to achieve over the medium to long term. The Fund may not achieve its investment objective. 5.2, 5.8 and 6 Investment strategy The Fund invests in the Underlying Fund, and holds up to 5% of its assets in cash. The Underlying Fund aims to deliver a return of Sterling LIBOR +3% per annum, gross of fees, over rolling three-year periods. The investment team who actively manage the Underlying Fund have a wide investment remit to help them try to achieve this aim. The team look to exploit market inefficiencies through active allocation to a diverse range of market positions. The Underlying Fund utilises a combination of traditional assets (such as bonds, cash and money market instruments) and investment strategies based on advanced Derivative techniques resulting in a highly diversified portfolio. The Underlying Fund can take long and short positions in markets, securities and groups of securities through Derivative contracts. 5.3 Trust Structure The following diagram summarises the Fund structure at the date of this PDS. ^ Cash returns are referenced to Bloomberg AusBond Bank Bill Index * Measured over 3 years of monthly returns. ** The investment objective is expressed before the deduction of management fees, expense recoveries and taxation, i.e. performance is measured relative to the Fund s benchmark before fees and costs and taxes are deducted. The investment objective is not intended to be a forecast. It is only an indication of what the investment strategy aims to achieve over the medium to long term, assuming financial markets remain relatively stable during that time. The Fund may not achieve its investment objective. Returns are not guaranteed. # These include but are not limited to audit, custody and administration fees and tax d abonnement (a Luxembourg subscription tax). There is no performance fee for the Fund or the Underlying Fund. Because the Underlying Fund is located in Luxembourg, it is subject to the risk of changes of law (including tax laws) which may affect its operation. 8 Standard Life Investments Absolute Return Global Bond Strategies Trust PDS

9 5.4 Hedging and Benchmarks The Fund invests in the Australian dollar hedged share class of the Underlying Fund. In this share class, Derivatives (forward currency exchange forwards) are used to Hedge the impact between Australian Dollars and Sterling. Investors should note that the Hedging strategy is designed to reduce, but not eliminate, exchange-rate risk. There is no guarantee that the exposure of the currency in which the Fund is denominated can be fully Hedged against the Base Currency of the Underlying Fund. Investors should note that the hedging strategy is a passive investment strategy and is not intended for speculative purposes. The successful implementation of the hedging strategy may reduce the benefit to the Fund of decreases in the value of the Australian Dollar in relation to the Base Currency of the Fund. The Underlying Fund s benchmark is 3 month Sterling LIBOR but, through hedging within the Australian Dollar share class of the Underlying Fund, Fund benchmark returns are expected to broadly be in line with Bloomberg AusBond Bank Bill Index over time. There will be a performance differential between the Fund and the Underlying Fund due to several factors including cash held in the Fund and additional expenses. 5.5 Monitoring service providers The Responsible Entity ensures that its key service providers comply with their service level obligations through a service provider monitoring programme. This involves a quarterly compliance certification, complemented by a six monthly review meeting with a standard agenda and a predefined list of documents that need to be submitted by the service provider. 5.6 Leverage The Fund and the Underlying Fund may borrow on a secured or unsecured basis for any purpose (up to 10% of the Fund). At present the Fund and Underlying Fund do not intend to borrow except for short- term cash management purposes. The Fund and the Underlying Fund will pay interest on such borrowed monies. The use of Derivatives and other instruments may cause the nominal investment exposure of the Underlying Fund to routinely exceed 100% of the value of assets. As a regulated European Union UCITS fund leverage is restricted to 1000% (that is, for every $1 of the fund s net asset value, the fund may beleveragedupto$10). Leverage in the Underlying Fund will be a result of the use of Derivatives. Derivative gearing may increase the volatility of the Underlying Fund s unit price by potentially magnifying gains and losses from the Underlying Fund s investments. The value and liabilities associated with leveraged investment strategies can be more variable than traditional investments and there may be greater exposure to possible losses. Accordingly, a geared fund may be regarded as having a higher risk profile than a comparable fund which has no Derivative gearing. The use of Derivatives and the associated leverage is sometimes required to implement volatility reduction strategies. The leverage exhibited in the Underlying Fund is monitored daily to ensure any new risks that are introduced into the Underlying Fund remain minimal and under control. If the leverage associated with an individual strategy were to exceed a given threshold, specific stress testing would be undertaken. As at the end of June 2017, the collateral posted by the Underlying Fund was approx. GBP 40 million. As at the end of June 2017, the collateral held by the underlying fund was approx. GBP 22.5 million. The Investment Manager uses diversified leverage in the Underlying Fund to mitigate the overall risk and volatility of the Fund. For example if the portfolio in Table 1 was 200% leveraged in a global high yield portfolio then the aggregate risk would be twice the risk of the unleveraged 100% portfolio as there is no diversification of risk. Portfolio A in the table below demonstrates the impact of leveraged exposure of a single investment risk. However, if the leverage is used with a wide diversity of strategies then there is the ability to reduce risk through diversification. Potential diversification benefits are highlighted in Portfolio B below where the 200% exposure results in a portfolio of just 3.1% volatility, or one third the risk of an unleveraged 100% global high yield portfolio. Please note this is an illustrative example not reflective of maximum use of potential leverage in the Fund. This means that the leveraged diversified portfolio should provide more stable returns than a 200% fixed income portfolio. Collateral is managed in the Underlying Fund on a daily basis with a range of counterparties. This limits the impact on open positions of the failure of a counterparty. Collateral is limited to accepting only cash or G7 sovereign bonds under 30 years it is ensured that in the event of needing to call on the collateral, it has not itself been downgraded. Table 1. Volatility of 180 equally weighted weekly returns from APT Market Risk Solution Portfolio Nominal exposure Weighting Asset class volatility Weighted volatility Aggregate risk Diversified risk Portfolio A 200% Global high yield 200% 5.3% 10.6% 10.6% 10.6% Portfolio B 200% Italian v German duration 25.0% 9.8% 2.5% Long USD v SGD 25.0% 4.8% 1.2% Standard Life Investments Absolute Return Global Bond Strategies Trust PDS 9

10 Table 1. Volatility of 180 equally weighted weekly returns from APT Market Risk Solution Portfolio Nominal exposure Weighting Asset class volatility Weighted volatility Aggregate risk Diversified risk UK investment grade credit 25.0% 3.8% 1.0% US investment grade credit 25.0% 2.6% 0.7% European long end steepener 25.0% 2.6% 0.7% Korean government bonds 25.0% 2.3% 0.6% US and Europe v UK duration 25.0% 1.9% 0.5% Short French forward-start inflation 25.0% 1.1% 0.3% 7.3% 3.1% Data as at 31 December 2015 The following graph and table show how we expect that the current leveraged investment strategy of the Underlying Fund (with greater than 100% gross exposure) would have performed (compared to an unleveraged strategy) during some of the key financial market events over the past 2 decades (Table 2) with the actual performance of the strategy shown on a continuous basis over the past 5+ years (Graph 1). This simulated performance of Graph 1 has been calculated by Standard Life Investments using a recognised industry risk system (RiskMetrics) and shows simulated gross performance. No allowance is made for the costs incurred by the Underlying Fund, the fees you pay in the Fund, or any tax payable by you or the Underlying Fund. Table Rate Rise 1994 (P) Asian Crisis 1997 (P) Russian Devaluation 1998 Sep 11th 2001 (P) Gulf War (2003) Bond Sell Off (2003) Emerging Market Sell Off (2006) QE Jitters (2013) Absolute Return Global Bond Strategies Bloom Barc Global Agg Corp* JPM Global Fixed Int Bond** * Bloomberg Barclays Global Aggregate Corp ** JPM Global Fixed Interest Bond Source: Standard Life Investments, RiskMetrics, 31 March 2017 The purpose of these charts is to show the relative effect of the use of leverage only. The simulated past performance of the Underlying Fund is not a reliable indicator of future performance of the Fund. The past performance of the Underlying Fund shown is a simulation only. While Standard Life Investments believes the calculations on which it is based are accurate, and the data used as the basis for the calculations are reliable, the completeness or accuracy of the information is not certain. Investors should not rely on the chart, or the simulated performance as the basis for their investment decision. In any event, past performance is not a reliable indicator of future performance. 10 Standard Life Investments Absolute Return Global Bond Strategies Trust PDS

11 Graph 1. Absolute Return Global Bond Strategies vs 3m Euribor (cash) vs target return 122 Absolute Return Bond Strategies Fund (%)* 3m Euribor (%)** Target return*** Mar 11 Jun 11 Sep 11 Dec 11 Mar 12 Jun 12 Sep 12 Dec 12 Mar 13 Jun 13 Sep 13 Dec 13 Mar 14 Jun 14 Sep 14 Dec 14 Mar 15 Price (indexed to 100 at inception) Jun 15 Sep 15 Dec 15 Mar 16 Jun 16 Sep 16 Dec 16 Mar 17 * Standard Life Investments Absolute Returns Global Bond Strategies Fund GBP shareclass converted to EUR until 04 April 2012 then the EUR shareclass thereafter ** 3m Euribor from Thomson Reuters DataStream *** Target of 3m Euribor +2.5% to 30 June 2013, then 3m Euribor +3.0% thereafter Source: Standard Life Investments, gross price performance, from 30 March 2011 to 31 May 2017 Standard Life Investments claims compliance with the Global Investment Performance Standards (GIPS ). The fund specific data presented above is supplementary information to the SICAV Absolute Returns Global Bond Strategy GIPS composite report, which is enclosed in the Appendix for your reference 5.7 Valuation, location and custody of assets The value of a unit is generally derived on a Business Day and is determined on the basis of the NAV of the Fund. The NAV is calculated by deducting the value of the liabilities of the Fund from the gross value of the Fund assets. Generally, investments will be valued at the next available market value but other valuation methods and policies may be applied by Equity Trustees if appropriate or if otherwise required by law or applicable accounting standards. The application price of a unit in the Fund is based on the NAV divided by the number of units on issue. The Responsible Entity can also make an allowance for transaction costs required for buying investments when an investor acquires units. Valuation Policy The valuation and fund accounting services for the Fund are provided by State Street Australia Limited. The valuation and fund accounting services for the Underlying Fund are provided by the Bank of New York Mellon (Luxembourg) S.A. Type of assets The Fund holds shares in the Underlying Fund. The Underlying Fund can invest in a range of assets including fixed interest securities, deposits, money market instruments, undertakings for collective investment and cash as well as a range of Derivatives. See 5.10 Derivatives. For asset allocation and limits, see Investment strategy on page Diversification guidelines Diversification guidelines The Underlying Fund is positioned to be capable of performing well under a wide variety of possible future outcomes. It is intended that the Underlying Fund will be resilient under potential stress scenarios that might cause material losses in individual markets. There is a comprehensive range of concentration limits that ensure that no one strategy dominates the risk profile of the portfolio. Instead of applying portfolio exposure limits in cash terms, which are inflexible, a risk based approach is used: - No more than 40% of the ex-ante (predicted) aggregate stand-alone risk is to be associated with any single market return strategy. These strategy groups are defined as duration, credit, currencies, cross-market inflation and volatility - No more than 30% of the ex-ante aggregate stand-alone risk is to be associated with any single market return sub-strategy (i.e. UK credit, Yen duration, etc.) Location and custody of assets The Fund holds shares in the Underlying Fund, which is domiciled in Luxembourg. Geographic location is not a consideration in the construction of the Underlying Fund assets. Lending guidelines The Fund does not lend stock or securities. The Underlying Fund may lend stock and securities. Standard Life Investments Absolute Return Global Bond Strategies Trust PDS 11

12 5.9 Short selling The Underlying Fund may, subject to and in accordance with the Undertaking for Collective Investment Law and applicable CSSF circulars, take long and short positions in markets, securities and groups of securities through Derivative contracts. In general, the risk when short selling is that the short sold security increases in value and generates a loss for the Fund in addition when physically short individual equity securities, there is the risk of the stock being recalled by the lender at a time that may trigger a loss for the Fund. However, this Underlying Fund does not take short positions in individual securities and it would be highly unlikely to be net short of equity exposure. For how this risk is managed, see Short selling on page Derivatives Listed below are the main types of Derivatives used in the Underlying Fund: fixed income futures index futures currency swaps and options interest rate swaps currency forwards credit default swaps forward exchange contracts inflation linked swaps variance swaps interest rate options swaptions interest rate futures total return swaps options on futures assets swaps dividend futures and swaps Derivatives are used in the Underlying Fund to achieve the investment objective. The Underlying Fund can take positions in both OTC and exchange traded derivatives. For an outline of the collateral provided and held by the Underlying Fund, see Leverage on page 9. Collateral provided by the Underlying Fund may be used to cover liabilities or exposures in the event of certain default or termination scenarios, for example, the insolvency of the Underlying Fund or a counterparty Suggested investment timeframe The suggested investment timeframe is at least 5 years Labour standards and environmental, social and ethical considerations Standard Life Investments may informally consider labour standards and environmental, social and ethical considerations as part of its investment process, but it does not apply any specific labour standards and environmental, social or ethical criteria when selecting, retaining or realising investments for the Fund or the Underlying Fund Trust performance Up to date Fund performance is available by contacting Standard Life Investments on or online at literature/index.html 12 Standard Life Investments Absolute Return Global Bond Strategies Trust PDS

13 6. Managing risk There is an extensive risk management infrastructure to ensure that the Fund and the Underlying Fund operates within the scope of their risk framework. Risk is monitored and controlled by a combination of organisational structures and processes. These include the Underlying Funds management team, the Investment Risk team and the Risk and Exposure Committee as well as other governance functions within the Investment Manager. Risk Investment in any fund carries risks, including volatility of returns. Volatility refers to the degree to which returns may fluctuate around their long-term average. Each Asset Class, whether it is cash, fixed interest, property, Australian or international shares, has associated investment risks and the return achieved by each will vary accordingly. You should be aware that an investment in the Fund contains risk and neither the performance of the Fund nor the security of your investment is guaranteed by Equity Trustees or Standard Life Investments. Investments in the Fund and the Underlying Fund are generally subject to risks, including possible delays in the payment of withdrawal proceeds, and loss of income and capital. The following discussion of certain risk factors does not purport to be an exhaustive list or a complete explanation of all the risks involved in an investment in the Fund or the Underlying Fund. We recommend you talk to an adviser about the risks involved in investing in the Fund and how it might impact on your individual financial circumstances. General risk factors All investments involve risk and there can be no guarantee against loss resulting from an investment in the Fund or the Underlying Fund, nor can there be any assurance that the Fund s or the Underlying Fund s investment objective will be attained. Neither Equity Trustees or Standard Life Investments, nor any of their worldwide affiliated entities, guarantee the performance of the Fund or the Underlying Fund. Past performance is not a guide to future returns. Charges also affect what investors will get back and the amount returned may be less than the original investment. The value of your investment and any income received from itmaygodownaswellasup. Tax laws may change in future. The fees and charges payable may increase in the future. Inflation reduces the buying power of your investment and income. Investment strategy risk This is the risk that the investment strategy of the Fund or the Underlying Fund will sustain losses due to the poor performance of capital markets or poor decisions by the Investment Manager within the confines of the investment strategy. Counterparty risk This is the risk that parties to Derivatives contracts and other investment instruments may not perform their contractual obligations and may default when settlement is due. The Investment Manager will seek to minimise the risk by entering into transactions with counterparties which are, in the Investment Manger s opinion, established and reputable. In addition, the Investment Manager of the Underlying Fund will look to mitigate counterparty risk through the use of collateral for OTC Derivatives and all counterparties are subject to an International Swaps and Derivatives Association Master Agreement (ISDA). There are also internal limits on exposure to individual counterparties. Derivative risk Derivatives are financial contracts that offer access to the performance of an underlying asset and are used to implement investment strategies in the most risk efficient manner possible. The use of Derivatives to Hedge the risk of physical securities will involve basis risk, which refers to the possibility that Derivatives may not move exactly in line with the physical security. Fluctuations in the price of Derivatives will be reflective of movements in the underlying assets, reference rate or index to which the Derivatives relate. Consequently the Derivatives should not be expected to fully Hedge the risk of the physical security. Derivatives are also used as substitutes for physical securities. In doing so there is the risk that a Derivative may not be a perfect substitute for the underlying security it aims to replace, and may not mirror its movements completely. Other risks associated with Derivatives may include: Loss of value because of a sudden price move or because of the passage of time; Potential illiquidity of the Derivative; The Underlying Fund being unable to meet payment obligations as they arise; The counterparty to any Derivative contract not being able to meet its obligations under the contract; or Significant volatility in prices. Note that neither the Responsible Entity nor the Investment Manager guarantee that the Underlying Fund s Derivatives strategy will be successful. Collateral risk This is the risk of loss arising from errors in the nature, quality, pricing or characteristics of collateral securing a transaction with credit risk. Fund risk As with all managed funds, there are risks particular to the Fund, including that it could terminate, the fees and expenses could change, Equity Trustees is replaced as Responsible Entity or Standard Life Investments is replaced as Investment Manager. There is also a risk that investing in the Fund may give different results than investing directly in securities because of income or capital gain accrued in the Fund and the consequence of withdrawal or investment by other investors. Interest rate risk The value of fixed income securities held by the Underlying Fund will generally vary inversely with changes in interest rates and such variation may affect the value of the Underlying Fund accordingly. While changes in interest rates may affect the Underlying Fund s interest income, such changes may also positively or negatively affect the NAV of the Fund and Underlying Fund on a daily basis. Investment selection risk The Investment Manager uses an investment selection process to identify investment opportunities which it believes are most likely to outperform over the medium to long term. There is a risk that these investments will not perform in line with the Investment Manager s expectations however this risk is mitigated to some extent by the knowledge, experience and processes of the Investment Manager. Standard Life Investments Absolute Return Global Bond Strategies Trust PDS 13

14 Investment in fixed income or other debt securities All fixed income or other debt securities have the fundamental risk that the issuer may be unable to make interest payments or repay the capital. Generally, government securities offer the lowest credit risk, which is reflected in their lower yield. Corporate debt offers a higher yield due to its higher risk. However changes in economic and political outlook affect the value of such securities. Investment in high yielding debt securities Due to the volatile nature of sub-investment grade assets and the corresponding risk of default, there may be significant temporary capital losses and the possibility of fluctuations in the income return level of the Underlying Fund. The Investment Manager will endeavor to mitigate the risks associated with subinvestment grade securities, by diversifying its holdings by issuer, industry and credit quality. Sector selection risk The Investment Manager may make poor investment decisions resulting in sub-standard returns (for example, where the Investment Manager gains exposure to a sector which significantly underperforms relative to other sectors). This may be brought about by a change of employees at the Investment Manager or a change of Investment Manager. Investment specific risk There may be instances where an investment in which the Fund invests will fall in price because of investment specific factors (for example, where a company s major product is subject to a product recall). The value of investments can vary because of changes to management, product distribution, investor confidence, internal operations or the company s business environment. Warrants With regard to investment in warrants investors should note that the gearing effect of investment in warrants and the volatility of warrant prices make the risk attached to the investment in warrants higher than in the case with investment in equities. Exchange rates The Base Currency of the Underlying Fund is not necessarily the investment currency of the Underlying Fund. Investments are made in those currencies that best benefit the performance of the Underlying Fund in the view of the Investment Manager. Changes in foreign currency exchange rates will affect the value of the Fund and Underlying Fund. Investment in emerging markets Investments in emerging markets carry risks additional to those inherent in other investments. In particular, (i) investment in any emerging market carries a higher risk than investment in a developed market (e.g. investment and repatriation restrictions, currency fluctuations, government involvement in the private sector, investor disclosure requirements, possibility of limited legal recourse for the Company); (ii) emerging markets may afford a lower level of information and legal protection to investors; (iii) some countries may place controls on foreign ownership; and (iv) some countries may apply accounting standards and auditing practices which do not conform with the result that financial statements prepared in accordance with those which would have been prepared by accountants following internationally accepted accounting principles. In addition taxation of interest and capital gains received by non-residents varies among emerging and less developed markets and, in some cases may be comparatively high. There may also be less well-defined tax laws and procedures and such laws may permit retroactive taxation so that the Fund could in the future become subject to local tax liabilities that had not been anticipated in conducting investment activities or valuing assets. Market risk Changes in legal and economic policy, political events, technology failure, changes in interest rates, economic cycles, investor sentiment and social climate can all directly or indirectly create an environment that may influence (negatively or positively) the value of your investments in the Fund. In addition, a downwards move in the general level of the markets can have a negative influence on the performance of the Fund. Operational risk Operational risk addresses the risks of trading and back office errors that may result in a loss to the Fund. This could be the result of negligence, ineffective securities processing procedures, computer systems problems or human error. Gearing risk The Fund and the Underlying Fund may borrow on a secured or unsecured basis for any purpose. At present the Underlying Fund does not intend to borrow except for short-term cash management purposes. The Underlying Fund will pay interest on such borrowed monies. The Fund will not use Derivatives, although the Underlying Fund will do so. The use of Derivatives and other instruments may cause the nominal investment exposure of the Underlying Fund to routinely exceed 100% of the value of assets. Such exposure may exaggerate or diminish the effect on Net Asset Value of any increase or decrease in the market value of the portfolio. The use of leverage creates opportunities for greater total return but at the same time can create greater risks. Gearing may increase the volatility of the Underlying Fund s unit price by potentially magnifying gains and losses from the Underlying Fund s investments. The value and liabilities associated with leveraged investment strategies can be more variable than traditional investments and there may be greater exposure to possible losses. Accordingly, a geared fund may be regarded as having a higher risk profile than a comparable fund which has no gearing. Liquidity risk There may be times when securities may not be readily saleable (for example, in falling market conditions). If there is an interruption to regular trading in the market generally, or for a particular investment of the Fund or Underlying Fund, there may be delays in processing withdrawal requests. Note that neither the Responsible Entity nor the Investment Manager guarantees the liquidity of the Fund s investments. Legal risk This is an international investment and it is subject to the risk that laws may change in any jurisdiction where the Fund is invested or operates. There is also a risk that taxation or other applicable laws may change in Australia that may affect the operation of the Fund or in Luxembourg which may affect the operation of the Underlying Fund. Suspension of valuation of units and withdrawals The Responsible Entity reserves the right to suspend the valuation of the units during periods where the underlying investments may not be easily valued or sold. If the Responsible Entity believes it is in the best interests of all investors, it may also suspend withdrawals and the payment of withdrawal proceeds during such periods. Hedged share classes Investors should note that the hedging strategy between the currency of the Fund and the Base Currency of the Underlying Fund is designed to reduce, but not eliminate, exchange-rate risk. There is no guarantee that the exposure of the currency in 14 Standard Life Investments Absolute Return Global Bond Strategies Trust PDS

15 which the Fund is denominated can be fully Hedged against the Base Currency of the Underlying Fund. Investors should note that the hedging strategy is a passive investment strategy and is not intended for speculative purposes. The successful implementation of the hedging strategy may reduce the benefit of decreases in the value of currency of investment in relation to the Base Currency of the Underlying Fund. Non-hedging transactions The Underlying Fund is authorised to use the Derivatives as outlined in section 5. The use of non-hedging transactions constitutes a higher risk than investments in transferable securities due to their greater volatility and less liquidity. Such transactions will be used in a manner that does not interfere with the investment objectives and policies of the Underlying Fund. Securities lending transactions The Underlying Fund s securities may be lent to financial institutions of high standing, or through recognised clearing institutions. Although risks from such transactions are mitigated through collateral agreements, there is the risk that the stock borrower could default. Transactions in options, futures and swap contracts For the purpose of hedging, efficient portfolio management, duration management and risk management the Underlying Fund may seek to protect or enhance the returns from their underlying assets by using options, futures and swap contracts as described in section 5. The ability to use these techniques and instruments may be limited by market conditions and regulatory limits and there can be no assurance that the objective sought to be attained from the use of these techniques and instruments will be achieved. Participation in the options or futures markets, in swap contracts and in foreign exchange transactions involves investment risks and transaction costs to which the Underlying Fund would not be subject if they did not use these techniques and instruments. If the Investment Manager s predictions of movements in the direction of the securities, foreign currency and interest rate markets are inaccurate, the adverse consequences to the Underlying Fund may leave the Underlying Fund in a less favourable position than if such techniques and instruments were not used. Risks specific to credit default swaps (CDSs) Counterparty risk, which is the risk that the counterparty of the credit default swaps transaction, will default on its obligations. As protection buyer, the counterparty risk materialises only when a credit event occurs and if the protection seller would not be able to pay the protection buyer the face value of the contract. As protection seller the counterparty risk materialises if the protection buyer is not able to pay the periodic fees under the contract. The counterparty risk is however mitigated by the fact that the Underlying Fund will only enter into CDS transactions with highly rated financial institutions specialised in this type of transaction as approved by the Investment Manager as Derivative counterparties; Credit risk, which is the risk carried by the protection seller that a credit event would occur in respect to the reference entity. In case of occurrence of a credit event, the capital loss for the protection seller might be substantial (and in case of the Underlying Fund rise to a total loss of the Underlying Fund s assets) as the protection seller would have to pay the face value of the contract to the protection buyer against being delivered by the protection buyer the obligations mentioned in the contract having a market value near to recovery rate; Mark-to-market risk, which is the risk that a credit default swap investor runs by unwinding its position before the maturity of the contract. This risk is affected by the liquidity of the underlying contract. The lower the liquidity, the higher the unwinding costs. Settlement risk, which is the risk of the protection buyer to deliver the underlying issues not held by the counterparty when entering into the CDS transaction. Standard Life Investments Absolute Return Global Bond Strategies Trust PDS 15

16 7. Investing and withdrawing Indirect investors The Responsible Entity has authorised the use of this PDS as disclosure to investors or prospective clients of IDPSs (including IDPS- like schemes, wraps and platforms) which provide investors with a menu of investment opportunities, referred to in this PDS as Indirect Investors. Indirect Investors may rely on the information in this PDS to give a direction to the IDPS Operator to invest in the Fund on their behalf. The Responsible Entity agrees to promptly provide notice of any supplementary or replacement PDS to IDPS Operators. Importantly, Indirect Investors do not become unitholders of the Fund. In those instances, the unitholder of the Fund is the IDPS Operator. The unitholder s rights set out in this PDS may only be exercised by the IDPS Operator on behalf of the Indirect Investor for whom they have acquired the units. Indirect Investors should read this PDS in conjunction with the offer documents issued by the IDPS Operator. Indirect Investors complete the Application Form for their IDPS or IDPS-like scheme and receive reports concerning the Fund from their IDPS Operator. Enquiries should be directed to the IDPS Operator. Initial applications To invest, please complete the Application Form accompanying this PDS and attach your cheque and send with relevant certified identification documentation as outlined in the Application Form to: Standard Life Investments Absolute Return Global Bond Strategies Trust C/- State Street Australia Limited Level 14, 420 George St Sydney NSW 2000 Fax All cheques should be crossed Not Negotiable and must be in Australian currency, and drawn on an Australian domiciled financial institution. Cheques should be made payable to: Standard Life Investments Applications Account. Reference: Please quote the investor name as per your Application Form Alternatively, transfer funds via EFT to: Bank Name: Westpac Banking Corporation Bank Address: Level 1, 275, Kent Street Sydney, NSW, 2000 Account Name: Standard Life Investments Applications Account BSB: Account Number: Reference: Please quote the investor name as per your Application Form Please note that cash cannot be accepted. Indirect Investors (investing through an IDPS) should use the application form attached to their IDPS Guide (and not the Application Form attached to this PDS) to invest in the Fund. At the date of this PDS, the minimum initial investment amount is $50,000. New Zealand investors must specify the amount in Australian dollars and application amounts quoted in New Zealand dollars are unable to be accepted. If you are an Indirect Investor you should refer to the IDPS Guide or IDPS Operator for the minimum initial investment amount. New Zealand investors must also complete the wholesale investor certification at the back of the Application Form. If you are an Indirect Investor you should refer to the IDPS Guide or IDPS Operator for the minimum initial investment amount. Additional applications For additional applications you can either mail your completed Application Form to the address above, or fax it to the following number: The minimum additional investment is $5,000. Attention: Standard Life Investments Absolute Return Global Bond Strategies Trust C/- State Street Australia Limited Level 14, 420 George St Sydney NSW 2000 Fax The same terms apply as for initial applications. Terms and conditions for applications If we receive correctly completed Application Forms, identification documents (if applicable) and cleared application money: before or on 3pm AEDT on a Business Day, the application will be processed on that Business Day. This means you will receive the application price calculated for that Business Day, and after 3pm AEDT on a Business Day, the application will be processed on the next Business Day. This means you will receive the application price calculated for the next Business Day. We will only start processing an application if: we consider that you have correctly completed the Application Form you have provided us with the relevant identification documents, and we have received the application money (in cleared funds) stated in your Application Form. The time it takes for application money to clear varies depending on how you transfer the money and your bank (it may take up to four Business Days). Please note that we do not pay interest on monies received prior to the Application Cut Off Date (any interest is credited to the Fund). If you are an Indirect Investor, you need to contact your IDPS Operator regarding the cut-off times for pricing purposes. Equity Trustees reserves the right to refuse any application without giving a reason. If for any reason Equity Trustees refuses or is unable to process your application to invest in the Fund, Equity Trustees will return your application money to you, subject to regulatory considerations, less any taxes or bank fees in connection with the application. You will not be entitled to any interest on your application money in this circumstance. Under the Anti-Money Laundering and Counter- Terrorism Financing Act 2006 applications made without providing all the information and supporting identification documentation requested on the Application Form cannot be processed until all the necessary information has been provided. As a result, delays in processing your application may occur. Cooling off period No cooling off period applies to the offer made in this PDS as the units are only available to Wholesale Clients and Wholesale Investors. Indirect Investors should seek advice from their IDPS Operator as to whether cooling off rights apply. The right to cool off may not apply if you are an Indirect Investor, even if you are a Retail Client. The terms and conditions of the IDPS Guide or similar type document will govern your investment in relation to the Fund and any rights you may have in this regard. 16 Standard Life Investments Absolute Return Global Bond Strategies Trust PDS

17 Making a withdrawal Investors (other than Indirect Investors) can withdraw their investment by mailing a withdrawal request to: Attention: Standard Life Investments Absolute Return Global Bond Strategies Trust C/- State Street Australia Limited Level 14, 420 George St Sydney NSW 2000 Fax: The minimum withdrawal amount is $5,000. Withdrawal requests received from New Zealand investors must specify: The withdrawal amount in Australian dollars; or The number of units to be withdrawn. We are unable to accept withdrawal amounts quoted in New Zealand dollars. Please note that the withdrawal amount paid to you will be in Australian dollars and may differ from the amount you receive in New Zealand dollars due to: Foreign Exchange spreads between Australian and New Zealand dollars (currency rate differs daily); and Overseas Telegraphic Transfer ( OTT ) costs. Withdrawals will only be paid directly to the unit holder s bank account held in the name of the unit holder with an Australian domiciled bank. Withdrawal payments will not be made to third parties. Withdrawal cut-off times All withdrawal requests should be received by 3pm AEDT on a Business Day for processing that day. Any withdrawal request received after that time will be treated as having been received the following Business Day. Once we receive a withdrawal request, we may act on it without further enquiry, if the request bears an account number or investor details and (apparent) signature(s), or the investor s authorised signatory s (apparent) signature(s). Withdrawal terms The Responsible Entity is not required to give effect to a withdrawal request if it is for less than the minimum withdrawal amount. Equity Trustees has the right to fully withdraw an investor s investment in the Fund where their holding falls below the minimum balance amount. Equity Trustees can deny a withdrawal request in other certain circumstances, including where accepting the request would cause the Fund to cease to be liquid or where accepting the request would unfairly prejudice another investor. Equity Trustees will refuse to comply with any request if the requesting party does not satisfactorily identify themselves as the investor. Withdrawals will only be paid to the investor and will not be made to third parties (including authorised nominees), and will only be paid directly to the investor s bank account held in the name of the investor at a branch of an Australian domiciled bank. By lodging a faxed withdrawal you release, discharge and agree to indemnify Equity Trustees from and against any and all losses, liabilities, actions, proceedings, account claims and demands arising from the faxed withdrawal request. You also agree that any payment made in accordance with the fax instructions shall be a complete satisfaction of the obligations of Equity Trustees, notwithstanding any fact or circumstance including that the payment was made without your knowledge or authority. You agree that if the payment is made in accordance with these instructions, you and any person claiming through or under you shall have no claim against Equity Trustees in relation to the payment. Withdrawal restrictions Under Australian securities law (the Corporations\ Act), you do not have a right to withdraw from the Fund if the Fund is illiquid. In such circumstances you can only withdraw where Equity Trustees makes a withdrawal offer in accordance with the Corporations Act. Equity Trustees is not obliged to make such offers. The Fund will be liquid if at least 80% of its assets are liquid assets (generally cash and marketable securities). In addition, if Equity Trustees is unable to repatriate funds to meet withdrawal payments, it may suspend the calculation of the NAV and withhold withdrawal proceeds. Access to funds Except where the Fund is not liquid (see below), the Responsible Entity will generally allow investors in the Fund to access their investment within 7 days after the next withdrawal date provided your withdrawal request is received by State Street Australia Limited on the withdrawal cut off date. However, the Constitution allows the Responsible Entity to make payment up to 30 days after receipt of a withdrawal request (which may be extended by up to a further 30 days in certain circumstances outside the control of the Responsible Entity). Extension to the withdrawal period will be notified through Equity Trustees website. The Responsible Entity reserves the right to increase or reduce the withdrawal periods for the Fund subject to the above extensions of time. If the Fund is not liquid (as defined in the Corporations Act) an investor does not have a right to withdraw from the Fund and can only withdraw where the Responsible Entity makes a withdrawal offer to investors in accordance with the Corporations Act. The Responsible Entity is not obliged to make such offers. The Fund will be liquid if at least 80% of the assets of the Fund are liquid assets. Broadly, liquid assets are money in an account or on deposit with a financial institution, bank accepted bills, marketable securities, other prescribed property and other assets that the Responsible Entity reasonably expects can be realised for their market value within the period specified in the Constitution for satisfying withdrawal requests while the Fund is liquid. Equity Trustees will generally allow investors of the Fund to access their investment within 7 days of receipt of a withdrawal request by transferring the withdrawal proceeds to their nominated bank account. However, the Constitution allows Equity Trustees to make payment up to 30 days after receipt of a request (which may be extended by a further 30 days in certain circumstances). The price at which units are withdrawn ( Withdrawal Price ) is determined in accordance with the Constitution. The Withdrawal Price on a Business Day, is in general terms, equal to the NAV of the Fund, divided by the number of units on issue less an allowance for transaction costs required for selling investments. This allowance is known as the Sell Spread ( Sell Spread ). At the date of this PDS, the Sell Spread is 0.37%. The Withdrawal Price will vary as the market value of assets in the Fund rises or falls. We reserve the right to fully withdraw your investment upon 30 days notice if your investment balance in the Fund falls below $50,000 as a result of processing your withdrawal request. The payment of fees to your financial adviser is not regarded as a withdrawal request for these purposes. Equity Trustees can deny a withdrawal request in certain circumstances, including where accepting the request would cause the Fund to cease to be liquid or where the Fund is not liquid (as defined in the Corporations Act). When the Fund is not liquid, an investor can only withdraw when Equity Trustees Standard Life Investments Absolute Return Global Bond Strategies Trust PDS 17

18 makes a withdrawal offer to investors in accordance with the Corporations Act. Equity Trustees is not obliged to make such offers. Indirect Investors, need to provide their withdrawal request directly to their IDPS Operator. The time to process a withdrawal request will depend on the particular IDPS Operator. Equity Trustees will notify you of any material changes to withdrawal terms or access to funds within 30 days. Distributions The Fund usually distributes income (if any) annually at the end of June. Distributions are calculated on the last day of each accounting period end, and are normally paid to investors within 30 days of the period end. Equity Trustees may amend the distribution frequency without notice. An investor s share of any distributable income is calculated in accordance with the Constitution and is generally based on the number of units held by the investor at the end of the distribution period and the distributable income. In some circumstances, where an investor makes a large withdrawal request (5% or more of the units on issue at the start of the relevant distribution period), their withdrawal proceeds may be taken to include a component of distributable income. Investors can have their distribution reinvested or paid to a nominated bank account. Investors who do not indicate a preference will have their distributions automatically reinvested. Indirect Investors should review their IDPS Guide for information on how and when they receive any income distribution. If New Zealand investors elect to have their distribution paid out, they will need to nominate an AUD-denominated bank account with an Australian domiciled bank held in their own name. Valuation of the Fund The value of the investments of the Fund is generally determined daily. Generally, investments will be valued at the next available market value but other valuation methods and policies may be applied by Equity Trustees if appropriate. The Responsible Entity reserves the right to suspend the valuation of the units during periods where the underlying investments may not be easily valued or sold. If the Responsible Entity believes it is in the best interests of all unitholders, it may also suspend withdrawals and the payment of withdrawal proceeds during such periods. The value of a unit in the Fund is determined on the basis of the value of the investments in the Fund (after taking into account any liabilities of the Fund), in accordance with the Constitution. The investment in units in the Underlying Fund are valued on a mid-market value basis. The application price of a unit in the Fund is based on the NAV of the Fund divided by the number of units on issue plus an allowance for transaction costs required for buying investments. This allowance is known as the Buy Spread ( Buy Spread ). At the date of this PDS, the Buy Spread is 0.37%. Equity Trustees has developed a formal written policy in relation to the guidelines and relevant factors taken into account when exercising any discretion in calculating unit prices (including determining the value of the assets and liabilities). A copy of the policy and, where applicable and to the extent required, any other relevant documents in relation to the policy will be made available to investors free of charge on request to Equity Trustees. Joint account operation For joint accounts, each signatory must sign withdrawal requests. Please ensure both signatories sign the declaration in the Application Form. Joint accounts will be held as joint tenants. Appointment of authorised nominee to operate account Investors may elect to appoint an authorised nominee to operate their account. The relevant sections on the Application Form need to be completed, including the name and signature of the authorised nominee, the signature of the investor and the date. Only investors can appoint authorised nominees. If you appoint an authorised nominee we suggest that you ensure that: they cannot appoint another nominee; and the appointment lasts until cancelled by you in writing or by the Responsible Entity. If the Responsible Entity determines that the circumstances require, the Responsible Entity may cancel an appointment by giving the investor 14 days notice in writing. If an appointment is cancelled, the Responsible Entity will not be obliged to act on the instructions of the authorised nominee. If the instructions are varied, the Responsible Entity will act only in accordance with the varied instructions. By completing and lodging the relevant sections on authorised nominees on the Application Form you release, discharge and agree to indemnify the Responsible Entity from and against any and all losses, liabilities, actions, proceedings, account claims and demands arising from the Responsible Entity acting on the instructions of your authorised nominee. You also agree that any instructions of your authorised nominee to Responsible Entity, which are followed by Responsible Entity, shall be a complete satisfaction of the obligations of Responsible Entity, notwithstanding any fact or circumstance, including that the instructions were made without your knowledge or authority. You agree that if the authorised nominee s instructions are followed by the Responsible Entity, you and any person claiming through or under you shall have no claim against the Responsible Entity in relation to the instructions. An authorised nominee can, among other things: apply for additional investment units; request that distribution instructions be altered; change bank account details, withdraw all or part of your investment; and enquire as to the status of your investment and obtain copies of statements. Withdrawal payments will not be made to third parties. If a company is appointed as an authorised nominee, the powers will extend to any director and authorised officer of the company. If a partnership, the powers will extend to all partners. Electronic instructions If an investor instructs Equity Trustees by electronic means, such as facsimile, or internet the investor releases Equity Trustees from and indemnifies Equity Trustees against, all losses and liabilities arising from any payment or action Equity Trustees makes based on any instruction (even if not genuine) that Equity Trustees receives by an electronic communication bearing the investor s investor code and which appears to indicate to Equity Trustees that the communication has been provided by the investor e.g. a signature which is apparently the investor s and that of an authorised signatory for the investment or an address which is apparently the investor s. The investor also agrees that neither they nor anyone claiming through them has any claim against Equity Trustees or the Fund in relation to such payments or actions. There is a risk that a fraudulent withdrawal request can be made by someone who has access to an investor s investor code and a copy of their signature or address. Please take care. 18 Standard Life Investments Absolute Return Global Bond Strategies Trust PDS

19 8. Keeping track of your investment Enquiries and complaints If you have any questions regarding the management of the Trust, you can contact the Investment Manager on If you are not completely satisfied with any aspect of our services regarding the management of the Trust, please contact Equity Trustees. Equity Trustees seeks to resolve potential and actual complaints over the management of the Trust to the satisfaction of investors. If you wish to lodge a formal complaint please write to: Compliance Team Equity Trustees Limited GPO Box 2307 Melbourne VIC complianceteam@eqt.com.au Equity Trustees will respond within 14 days of receiving the complaint and will seek to resolve your complaint as soon as practicable but not longer than 45 days after receiving the complaint. If we are unable to resolve your complaint, you may be able to seek assistance from the Financial Ombudsman Service ( FOS ). To find out whether you are eligible (and if so, to make a complaint) contact FOS on (Australia) or , info@fos.org.au or GPO Box 3, Melbourne VIC Please include the Equity Trustees FOS membership number with your enquiry. It is FOS can assist you if Equity Trustees cannot. FOS may not consider a dispute where the value of a person s claim exceeds $500,000. FOS is only able to make a determination of up to $309,000 per managed investment claim (excluding compensation for costs and interest payments). These monetary limits and the FOS terms of reference do change from time to time. Current details can be obtained from the FOS website ( Reports We will make the following statements available to all investors; A transaction confirmation statement, showing a change in your unit holding (provided when a transaction occurs or on request). The Fund s annual audited accounts for each period ended 30 June. Annual distribution, tax and confirmation of holdings statements for each period ended 30 June. Annual report detailing each of the following: the actual allocation to each asset type; the liquidity profile of the portfolio assets as at the end of the period; the maturity profile of the liabilities as at the end of the period; the derivative counterparties engaged (including capital protection providers); and the leverage ratio (including leverage embedded in the assets of the Trust, other than listed equities and bonds) as at the end of the period; the key service providers if they have changed since the latest report given to investors, including any change in their related party status. The latest annual report will be available online from The following information is available on Equity Trustees s s website and/or is disclosed monthly: the current total NAV of the Trust and the redemption value of a unit in each class of units as at the date the NAV was calculated; the monthly or annual investment returns over at least a five-year period (or, if the Trust has not been operating for five years, the returns since its inception); any change to key service providers if they have changed since last report given to investors; for each of the following matters since the last report on those matters: the net return on the Trust s assets after fees, costs and taxes; any material change in the Trust s risk profile; any material change in the Trust s strategy; and any change in the individuals playing a key role in investment decisions for the Trust. By applying to invest in the Trust, you agree that, to the extent permitted by law, any periodic information which is required to be given to you under the Corporations Act or ASIC policy can be given to you by making that information available on Equity Trustees or the Investment Manager s website. Please note that Indirect Investors who access the Trust through an IDPS will receive reports directly from the IDPS Operator and not from the Responsible Entity. However, Equity Trustees will be providing the reports described above to relevant IDPS Operators. Indirect Investors should refer to their IDPS Guide for information on the reports they will receive regarding their investment. If and when the Fund has 100 or more direct investors it will be classified by the Corporations Act as a disclosing entity. As a disclosing entity the Fund will be subject to regular reporting and disclosure obligations. Investors would have a right to obtain a copy, free of charge, of any of the following documents: the most recent annual financial report lodged with ASIC ( Annual Report ); any subsequent half yearly financial report lodged with ASIC after the lodgement of the Annual Report; and any continuous disclosure notices lodged with ASIC after the Annual Report but before the date of this PDS. Equity Trustees will comply with any continuous disclosure obligation by lodging documents with ASIC as and when required to. Copies of these documents lodged with ASIC in relation to the Fund may be obtained from or inspected at an ASIC office. Standard Life Investments Absolute Return Global Bond Strategies Trust PDS 19

20 9. Fees and other costs The warning statement below is required by law to be displayed at the beginning of the Fees and other costs section of product disclosure statements for managed investment products. The example given in the warning statement does not relate to any investments described within this PDS. 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 investment 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 funds fee calculator to help you check out different fee options. This table shows fees and other costs that you may be charged. These fees and costs may be deducted from your money, from the returns on your investment or from the Trust s assets as a whole. Information about taxation is set out in Section 10 of this document. You should read all the information about fees and costs because it is important to understand their impact on your investment. For Indirect Investors, the fees listed in the Fees and other costs section of this PDS are in addition to any other fees and charges charged by your IDPS Operator. The table below shows fees and other costs that you may be charged. These fees and costs may be deducted from your money, from the returns on your investment or from the Fund s assets as a whole. Information about Taxation is set out in section 10 of this document. You should read all the information about fees and costs because it is important to understand their impact on your investment. Type of fee or cost Amount How and when paid Fees when your money moves in or out of the Trust 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 Exit fee The fee to close your investment Management costs 1 The fees and costs for managing your investment Nil Nil Nil Nil Management fees: 0.75% p.a. of the value of your units in the Fund 2 Indirect costs: 0.21% p.a. of the value of your units in the Fund 3 There is no establishment fee payable when you set up your investment in the Trust. There is no contribution fee payable when you invest in the Trust. There is no withdrawal fee payable when you redeem investments from the Trust. There is no termination fee payable when you close your investment in the Trust. 1 All fees quoted above are inclusive of Goods and Services Tax (GST) and net of any Reduced Input Tax Credits (RITC). See below for more details as to how management costs are calculated. 2 Management fees can be negotiated. See Differential fees below. 3 The indirect costs are calculated with reference to the relevant costs incurred during financial year ended 30 June See Indirect costs below for more information. 20 Standard Life Investments Absolute Return Global Bond Strategies Trust PDS

21 Additional Explanation of Fees and Costs What do the Management Costs pay for? Management Costs comprise the additional fees or costs that a unitholder incurs by investing in the Fund rather than by investing directly in the assets. The management fees of 0.75% p.a. of the NAV of the Fund is payable to the Responsible Entity of the Fund for managing the assets and overseeing the operations of the Fund. The management fees are accrued daily and paid from the Fund monthly in arrears and reflected in the unit price. As at the date of this PDS, ordinary expenses such as investment management fees, custodian fees, administration and audit fees, and other ordinary expenses of operating the Fund are covered by the management fees. The Management Costs shown above do not include extraordinary expenses (if they are incurred in future), such as litigation costs or the costs of convening unitholder meetings. In addition, Management Costs do not include transactional and operational costs (i.e. costs associated with investing the underlying assets, some of which may be recovered through Buy/Sell Spreads). Indirect Costs Indirect costs include fees and management costs (if any) arising from underlying funds and a reasonable estimate of the cost of investing in over-the-counter derivatives to gain investment exposure to assets or implement the Fund s investment strategy. Indirect costs are reflected in the unit price of the Fund and borne by Investors, but they are not paid to the Responsible Entity or Investment Manager. The estimated components of the Fund s indirect costs are based on the financial year ended 30 June Actual indirect costs for future years may differ. If in future there is an increase to indirect costs disclosed in this PDS, updates will be provided on Equity Trustees website at where they are not otherwise required to be disclosed to investors under law. Transactional and operational costs In managing the assets of the Fund, the Fund may incur transaction costs such as brokerage, settlement costs, clearing costs and applicable stamp duty when assets are bought and sold. This generally happens when the assets of a fund are changed in connection with day-to-day trading or when there are applications or withdrawals which cause net cash flows into or out of a fund. The Buy/Sell Spread reflects the estimated transaction costs incurred in buying or selling assets of the Fund when investors invest in or withdraw from the Fund. The Buy/Sell Spread is an additional cost to the investor but is incorporated into the unit price and incurred when an investor invests in or withdraws from the Fund and is not separately charged to the investor. The Buy/Sell Spread is paid into the Fund and not paid to Equity Trustees or the Investment Manager. The estimated Buy/Sell Spread is 0.30% upon entry and 0.30% upon exit. The dollar value of these costs based on an application or a withdrawal of $50,000 is $150 for each individual transaction. The Buy/Sell Spread can be altered by the Responsible Entity at any time. The Responsible Entity may also waive the Buy/Sell Spread in part or in full at its discretion. Transactional costs which are incurred other than in connection with applications and redemptions arise through the day-to-day trading of the Fund s assets and are reflected in the Fund s unit price. As these costs are factored into the net asset value of the Fund and reflected in the unit price, they are an additional implicit cost to the investor and are not a fee paid to the Responsible Entity. These costs can arise as a result of bid-offer spreads (the difference between an asset s bid/buy price and offer/ask price) being applied to securities traded by the Fund. Liquid securities generally have a lower bid-offer spread while less liquid assets have a higher bid-offer spread. During the financial year ended 30 June 2017, the total transaction costs for the Fund were estimated to be 0.21% of the NAV of the Fund, of which 31.5% of these transaction costs were recouped via the Buy/Sell Spread, resulting in a net transactional cost to the Fund of 0.15% p.a. IDPS For Indirect Investors, the fees listed in the Fees and other costs section of this PDS are in addition to any other fees and charges by your IDPS Operator. Alternative forms of remuneration As a member of the Financial Services Council, we maintain an Alternate Forms of Remuneration Register. The register, which you can review by contacting us, outlines some alternative forms of remuneration that we may pay to or receive from AFS licensees, fund managers or representatives (if any is paid or received at all in relation to the Fund). Differential fees The Responsible Entity or the Investment Manager may from time to time negotiate a different fee arrangement (by way of a rebate or waiver of fees) with investors who are Wholesale Clients in Australia or Wholesale Investors in New Zealand. Payments to IDPS operators Subject to the law, annual payments may be paid to some IDPS Operators because they offer the Fund on their investment menus. Product access is paid by BNP Paribas Asset Management out of its management fees and is not an additional cost to the investor. If the payment of annual fees to IDPS Operators is limited or prohibited by the law, Equity Trustees will ensure the payment of such fees is reduced or ceased. Can the fees change? Yes, all fees can change without investor consent. In most circumstances the Constitution defines the maximum fees that can be charged for fees described in this PDS. We have the right to recover all proper and reasonable expenses incurred in managing the Fund and as such these expenses may increase or decrease accordingly. We will generally provide investors with at least 30 days notice of any proposed change to the Management Costs. Expense recoveries and Buy/Sell Spreads may change without notice, for example, when it is necessary to protect the interests of existing members and if permitted by law. Standard Life Investments Absolute Return Global Bond Strategies Trust PDS 21

22 GST All fees and other costs quoted include GST less any reduced input tax credits. Example of annual fees and costs This table gives an example of how the fees and costs for this managed investment product can affect your investment over a one year period. You should use this table to compare this product against other managed investment products. Example Standard Life Investments Absolute Return Global Bond Strategies Trust BALANCE OF $50,000 WITH A CONTRIBUTION OF $5,000 DURING THE YEAR Contribution Fees Nil For every $5,000 you put in, you will be charged $0. Plus Management Costs comprising: Management fees: 0.75% p.a. $375 Indirect costs: 0.21% p.a. $105 Equals Cost of Trust 0.96% And, for every $50,000 you have in the Trust you will be charged $480 each year, comprising: If you had an investment of $50,000 at the beginning of the year and you put in an additional $5,000* during that year, then you would be charged fees of: $480** What it costs you will depend on any differential fees you may negotiate. * This example assumes the $5,000 contribution occurs at the end of the first year, therefore management costs are calculated using the $50,000 balance only. Indirect costs are not a fee earned by or paid to the Responsible Entity or the Investment Manager. **Additional fees may apply. Please note that this example does not capture all the fees and costs that may apply to you such as the Buy/Sell Spread. Additional fees may be paid to a financial advisor if you have consulted a financial adviser. You should refer to the Statement of Advice provided by your financial adviser in which details of the fees are set out. ASIC provides a fees calculator on its website which you could use to calculate the effects of fees and costs on your investment in the Fund. 22 Standard Life Investments Absolute Return Global Bond Strategies Trust PDS

23 10. Taxation The following information summarises some of the Australian taxation issues you may wish to consider before making an investment in the Fund and assumes that you hold your investment in the Fund on capital account and are not considered to be carrying on a business of investing, trading in investments or investing for the purpose of profit making by sale. The information should be used as a guide only and does not constitute professional tax advice as individual circumstances may differ. A number of tax reform measures are currently under review by the Australian Government, including the deregulation of the Taxation of Financial Arrangements ( TOFA ) regime. These reforms may impact on the tax position of the Fund and its investors. Accordingly, it is recommended that investors seek their own professional advice, specific to their own circumstances, of the taxation implications of investing in the Fund. Australian Taxation Treatment of the Fund General The Fund is an Australian resident trust estate for Australian tax purposes. On the basis that all of the Fund s trust components are attributed to investors on a fair and reasonable basis under the new AMIT regime or the Fund has distributable income to which investors are presently entitled (which is the Responsible Entity s intention if the Fund does not qualify to be an AMIT), and the Fund is not a public trading trust, the Fund should be treated as a flow-through trust for tax purposes. This means that investors should be taxed on their attributed amounts or (in the case of a fund that is not an AMIT) their share of the Fund s net taxable income, and the Fund should not be subject to Australian income tax. In the case where the Fund makes a loss for Australian tax purposes, the Fund cannot distribute the tax loss to investors. However, the tax loss may be carried forward by the Fund for offset against taxable income of the Fund in subsequent years, subject to the operation of the trust loss rules. While the Fund is not expected to receive distributions or dividends from the Underlying Fund, it is expected to derive assessable income upon the redemption or buyback of shares in the Underlying Fund. It is likely that these shares will be treated as being held on revenue account by the Fund. Deemed Capital Gains Tax ( CGT ) election Eligible managed investment trusts ( MITs ) may make an irrevocable election to apply a deemed capital account treatment for gains and losses on disposal of certain eligible investments (including equities and units in unit trusts but excluding derivatives, debt securities and foreign exchange contracts). The Fund did not make the election for deemed capital account treatment. As such, the Fund holds its eligible investments on revenue account. On this basis, the realised gains of the Fund will be income or revenue gains and not capital gains, with no entitlement to the CGT discount concession. Realised losses will be revenue losses which, subject to the Fund meeting certain conditions, will be able to be claimed as a deduction against any assessable income of the Fund. Controlled Foreign Company ( CFC ) Provisions There are certain tax rules (i.e. the CFC provisions) which may result in assessable income arising in the Fund in relation to the Fund s investment in the Underlying Fund, where certain control thresholds are met. The Fund s investment strategy is expected to minimise the impact of the CFC regime on the Fund. Nevertheless, the taxable income of the Fund may include gains in respect of the Underlying Fund even though such gains are unrealised. Taxation of Financial Arrangements ( TOFA ) The TOFA rules should generally not currently apply to the Fund as it has been under the $100 million threshold for TOFA to apply at all relevant times, and the Fund has not elected into TOFA. Where the TOFA regime applies, itseeks to recognise sufficiently certain returns from financial arrangements on an accruals basis for tax purposes rather than on a realisation basis. Where returns from derivative instruments are not sufficiently certain they will continue to be recognised on a realisation basis, unless specific tax timing elections are made. The main financial arrangement the Fund will have is the equity investment in the Underlying Fund. However, equities are effectively excluded from the operation of the TOFA rules. Accordingly, the TOFA rules are not expected to have any significant impact on the taxation of the Fund. The Administrator of the Fund will assist the Responsible Entity in complying with the TOFA rules. Attribution Managed Investment Trusts ( AMITs ) In May 2016, the Australian Federal Government enacted legislation establishing a new tax system for Attribution Managed Investment Trusts (AMITs). Trusts that meet the eligibility criteria to be an AMIT may elect into the AMIT rules. Equity Trustees is intending that an election into AMIT be made effective from 1 July 2017 in respect of the Trust and thereafter the following will apply: Fair and reasonable attribution: Each year, the Fund s determined trust components of assessable income, exempt income, non-assessable non-exempt income and tax offsets (i.e. credits) will be allocated to investors on a fair and reasonable attribution basis, rather than being allocated proportionally based on each investor s present entitlement to the income of the Fund. Unders or overs adjustments: Where the Fund s determined trust components for a year are revised in a subsequent year (e.g. due to actual amounts differing to the estimates of income, gains / losses or expenses), then unders and overs may arise. Unders and overs will generally be carried forward and adjusted in the year of discovery. Cost base adjustments: Where the distribution made is less than (or more than) certain components attributed to investors, then the cost base of an investor s units may be increased (or decreased). Details of cost base adjustments will be included on an investor s annual tax statement, referred to as an AMIT Member Annual Statement (AMMA). Large redemptions: In certain circumstances, gains may be attributed to a specific investor, for example, gains on disposal of assets to fund a large redemption being attributed to the redeeming investor. Multi-class AMITs: A choice is available to elect to treat separate classes of units as separate AMITs. EQT may make the AMIT multi-class election if appropriate depending on the specific circumstances involved. Penalties: In certain circumstances (e.g. failure to comply with certain AMIT rules), specific penalties may be imposed. The new rules are intended to reduce complexity, increase certainty and reduce compliance costs for managed investment trusts and their investors. Standard Life Investments Absolute Return Global Bond Strategies Trust PDS 23

24 Taxation Reform The tax information included in this PDS is based on the taxation legislation and administrative practice as at the issue date of this PDS, together with proposed changes to the taxation legislation as announced by the Government. However, the Australian tax system is in a continuing state of reform, and based on the Government s reform agenda, reform is likely to escalate rather than diminish. Any reform of a tax system creates uncertainty as to the full extent of announced reforms, or uncertainty as to the meaning of new law that is enacted pending interpretation through the judicial process. Current reforms in progress include refinements to the new tax system for AMITs, the Asia Region Funds Passport rules, the Corporate Collective Investment Vehicles (CCIV) regime and a TOFA deregulation review which may impact on the tax position of the Fund and its investors. Accordingly, it will be necessary to closely monitor the progress of these reforms, and investors should seek their own professional advice, specific to their own circumstances, of the taxation implications of investing in the Fund. Tax File Number ( TFN ) and Australian Business Number ( ABN ) It is not compulsory for an investor to quote their TFN or ABN. If an investor is making this investment in the course of a business or enterprise, the investor may quote an ABN instead of a TFN. Failure by an investor to quote an ABN or TFN or claim an exemption may cause the Responsible Entity to withhold tax at the top marginal rate, plus levies, on gross payments including distributions of income to the investor. The investor may be able to claim a credit in their tax return for any TFN or ABN tax withheld. Collection of TFNs is permitted under taxation and privacy legislation. By quoting their TFN or ABN, the investor authorises the Responsible Entity to apply it in respect of all the investor s investments with Equity Trustees. If the investor does not want to quote their TFN or ABN for some investments, Equity Trustees should be advised. Australian Taxation of Australian Resident Investors Distributions Each Australian resident investor will be subject to taxation on their attributed trust components under the new AMIT regime or their proportionate share of the net taxable income derived by the Fund (if the Fund is not an AMIT) in proportion to their share of the distributable income of the Fund. Such income will retain its character as it flows through the Fund, and may include capital gains and Australian and foreign sourced income. Generally, an Australian resident investor s entitlement (share) of the net income of a Fund for a year of income, including amounts that are received in a subsequent year of income or which are reinvested, forms part of their assessable income for that year. The tax consequences for investors of receiving distributions from the Fund depend on the components of the distributable income to which investors have been attributed or become entitled. Investors who are attributed trust components or become entitled to a distribution from the Fund in respect of a financial year will receive an AMIT member annual statement (AMMA statement) or an annual tax statement detailing all relevant taxation information concerning distributions, including details of any Foreign Income Tax Offset ( FITO ) entitlements and returns of capital. Based on the investment strategy of the Fund, gains derived by the Fund are likely to be treated as ordinary income, rather than capital gains. Under current practice, distributions of non- assessable amounts are generally not subject to tax in the hands of investors holding their units on capital account but are treated as reducing the cost base of the investors units. Similarly under the new AMIT regime, the receipt of certain non-assessable amounts will reduce the cost base of the Australian resident investor s units in the Fund for CGT purposes. This results in either an increased capital gain, or a reduced capital loss, upon the subsequent disposal of the investor s units in the Fund. Foreign Source Income and FITOs The Fund is expected to predominantly derive foreign source income that might be subject to tax overseas, for example withholding tax. Australian resident investors should include their share of both the foreign income and the amount of any foreign tax withheld in their assessable income. In such circumstances, investors may be entitled to a FITO for their share of foreign tax paid, against the Australian tax payable on the foreign source income. To the extent the investors do not have sufficient overall foreign source income to utilise all of the FITOs relevant to a particular year of income, the excess FITOs cannot be carried forward to a future income year. Other Considerations An investor may receive their share of the net income of the Fund through distributions made during the year or where they have made a large withdrawal from the Fund, in which case their withdrawal proceeds may include a component of distributable income. In addition, because Australian investors can move into and out of the Fund at different points in time, there is the risk that taxation liabilities in respect of gains that have benefited past investors may have to be met by subsequent investors. Disposal of Units by Australian Resident Investors If an Australian resident investor transfers or redeems their units in the Fund, this will constitute a disposal for tax purposes. Where an investor holds their units in the Fund on capital account, a capital gain or loss on the disposal may arise and each investor should calculate their capital gain or loss according to their own particular facts and circumstances. As noted above, proceeds on disposal may include a component of distributable income. In calculating the taxable amount of a capital gain, a discount of 50% for individuals and trusts or 33 1/3% for complying Australian superannuation funds may be allowed where the units in the Fund have been held for 12 months or more. No CGT discount is available to corporate investors. Any capital losses arising from the disposal of the investment may be used to offset other capital gains the investor may have derived. Net capital losses may be carried forward for offset against capital gains of subsequent years but may not be offset against ordinary income. The discount capital gains concession may be denied in certain circumstances where an investor (together with associates) holds 10% or more of the issued units of the Fund, the Fund has less than 300 beneficiaries and other requirements are met. Investors who together with associates are likely to hold 10% or more of the units in the Fund should seek advice on this issue. Australian Taxation of Non-Resident Investors Tax on Income The Fund expects to derive predominantly foreign source income which would generally not be subject to Australian withholding tax when distributed by the Fund to non-resident investors. Australian withholding tax may be withheld from distributions of Australian source income and gains paid to a non-resident investor. The various components of the net income of the Fund 24 Standard Life Investments Absolute Return Global Bond Strategies Trust PDS

25 which will be regarded as having an Australian source may include Australian sourced interest and Australian sourced gains. For a fund that is an AMIT, withholding tax may also be payable in respect of amounts attributed. We recommend that non-resident investors seek independent tax advice before investing, taking into account their particular circumstances and the provisions of any relevant Double Taxation Agreement/ Exchange of Information Agreement ( EOI ) between Australia and their country of residence. Disposal of Units by Non-Resident Investors Based on the Fund s investment profile, generally non-resident investors holding their units on capital account should not be subject to Australian capital gains tax on the disposal of units in the Fund unless the units were capital assets held by the investor in carrying on a business through a permanent establishment in Australia. Australian tax may apply in certain circumstances if the non-resident holds their units on revenue account. We recommend that non-resident investors seek independent tax advice in relation to the tax consequences of the disposal of their units. Standard Life Investments Absolute Return Global Bond Strategies Trust PDS 25

26 11. Other important information Consent The Investment Manager has given and, as at the date of this PDS, has not withdrawn: its written consent to be named in this PDS as the Investment Manager of the Trust; and its written consent to the inclusion of the statements made about it which are specifically attributed to it, in the form and context in which they appear. The Investment Manager and the Custodian have not otherwise been involved in the preparation of this PDS or caused or otherwise authorised the issue of this PDS. Neither the Investment Manager, the Custodian nor their employees or officers accept any responsibility arising in any way for errors or omissions, other than those statements for which it has provided its written consent to Equity Trustees for inclusion in this PDS. Non-listing of units The units in the Trust are not listed on any stock exchange and no application will be made to list the units in the Trust on any stock exchange. Termination of the Trust The Responsible Entity may resolve at any time to terminate and liquidate the Trust (if it provides investors with notice) in accordance with the Constitution and the Corporations Act. Upon termination and after conversion of the assets of the Trust into cash and payment of, or provision for, all costs, expenses and liabilities (actual and anticipated), the net proceeds will be distributed pro-rata among all investors according to the aggregate of the Withdrawal Price for each of the units they hold in the Trust. Our legal relationship with you Equity Trustees responsibilities and obligations, as the Responsible Entity of the Trust, are governed by the Constitution of the Trust, as well as the Corporations Act and general trust law. The Constitution of the Trust contains a number of provisions relating to the rights, terms, conditions and obligations imposed on both Equity Trustees, as the Responsible Entity of the Trust, and investors. Equity Trustees may amend the Constitution if it considers that the amendment will not adversely affect investors rights. Otherwise the Constitution may be amended by way of a special resolution of investors. To the extent that any contract or obligation arises in connection with the acceptance by Equity Trustees of an application or reliance on this PDS by an investor, any amendment to the Constitution may vary or cancel that contract or obligation. Further, that contract or obligation may be varied or cancelled by a deed executed by Equity Trustees with the approval of a special resolution of investors, or without that approval if Equity Trustees considers the variation or cancellation will not materially and adversely affect investor s rights. A copy of the Constitution of the Trust is available, free of charge, on request from Equity Trustees. Compliance plan Equity Trustees has prepared and lodged a compliance plan for the Trust with ASIC. The compliance plan describes the procedures used by Equity Trustees to comply with the Corporations Act and the Constitution of the Trust. Each year the compliance plan for the Trust is audited and the audit report is lodged with ASIC. Unit pricing discretions policy Equity Trustees has developed a formal written policy in relation to the guidelines and relevant factors taken into account when exercising any discretion in calculating unit prices (including determining the value of assets and liabilities). A copy of the policy and, where applicable and to the extent required, any other relevant documents in relation to the policy (such as records of any discretions which are outside the scope of, or inconsistent with, the unit pricing policy) will be made available to investors free of charge on request. Indemnity Equity Trustees, as the responsible entity of the Trust, is indemnified out of the Trust against all liabilities incurred by it in performing or exercising any of its powers or duties in relation to the Trust. To the extent permitted by the Corporations Act, this indemnity includes any liability incurred as a result of any act or omission of a delegate or agent appointed by the Responsible Entity. Subject to the law, Equity Trustees may retain or pay out from the assets of the Trust any sum necessary to affect such an indemnity. Anti-Money Laundering and Counter Terrorism Financing ( AML/CTF ) Australia s AML/CTF laws require Equity Trustees to adopt and maintain an AML/CTF Program. A fundamental part of the AML/CTF Program is that Equity Trustees knows certain information about investors in the Trust. To meet this legal requirement, we need to collect certain identification information and documentation ( KYC Documents ) from new investors. Existing investors may also be asked to provide KYC Documents as part of a re-identification process to comply with AML/CTF laws. Processing of applications will be delayed or refused if investors do not provide the applicable KYC Documents when requested. Under the AML/CTF laws, Equity Trustees is required to submit regulatory reports to AUSTRAC. This may include the disclosure of your personal information. Equity Trustees may not be able to tell you when this occurs. The Responsible Entity shall not be liable for any loss you may suffer because of compliance with the AML/CTF laws. Privacy Statement When you provide instructions to Equity Trustees or its related bodies corporate, Equity Trustees will be collecting personal information about you. You must ensure that all personal information which you provide to Equity Trustees is true and correct in every detail, and should your personal details change it is your responsibility to ensure that you promptly advise Equity Trustees of the changes in writing. This information is needed to facilitate, administer and manage your investment, and to comply with Australian taxation laws and other laws and regulations. Otherwise, your application may not be processed or Equity Trustees and its delegates will not be able to administer or manage your investment. The information that you provide may be disclosed to certain organisations, including but not limited to: the ATO, AUSTRAC and other government or regulatory bodies; your broker, financial adviser or adviser dealer group, their service providers and/or any joint holder of an investment; organisations involved in providing, administering and managing the Trust, the administrator, custodian, auditors, or those that provide mailing or printing services; and 26 Standard Life Investments Absolute Return Global Bond Strategies Trust PDS

27 those where you have consented to the disclosure and as required by law. Currently Equity Trustees does not disclose any privacy information to parties outside Australia but this is subject to change. Equity Trustees may from time to time provide you with direct marketing and/or educational material about products and services Equity Trustees believes may be of interest to you. Should you not wish to receive this information from Equity Trustees (including by or electronic communication), you have the right to opt out by advising Equity Trustees by telephoning , or alternatively by contacting us via at Subject to some exceptions allowed by law, you can ask for access to your personal information. We will give you reasons if we deny you access to this information. Equity Trustees Privacy Statement outlines how you can request to access and seek the correction of your personal information. Equity Trustees Privacy Statement is available at and can be obtained by contacting Equity Trustees Privacy Officer on , or alternatively by contacting us via at Equity Trustees Privacy Statement contains information about how you can make a complaint if you think Equity Trustees has breached your privacy and about how Equity Trustees will deal with your complaint. You should refer to Equity Trustees Privacy Statement for more detail about the personal information that Equity Trustees collects and how Equity Trustees collects, uses and discloses your personal information. Common Reporting Standard ( CRS ) The CRS is a standardised set of rules developed by the Organisation of Economic Co-operation and Development that requires certain financial institutions resident in a participating jurisdiction to document and identify reportable accounts and implement due diligence procedures. These financial institutions will also be required to report certain information on reportable accounts to their relevant local tax authorities. Australia signed the CRS Multilateral Competent Authority Agreement and has enacted provisions within the domestic tax legislation to implement CRS in Australia. Australian financial institutions need to document and identify reportable accounts, implement due diligence procedures and report certain information with respect to reportable accounts to the ATO. The ATO may then exchange this information with foreign tax authorities in the relevant signatory countries. In order to comply with the CRS obligations, we may request certain information from you. Unlike FATCA, there is no withholding tax that is applicable under CRS. However, penalties may apply for failing to comply with the CRS obligations. Information on underlying investments Information regarding the underlying investments of the Trust will be provided to an investor of the Trust on request, to the extent Equity Trustees is satisfied that such information is required to enable the investor to comply with its statutory reporting obligations. This information will be supplied within a reasonable timeframe having regard to these obligations. Foreign Account Tax Compliance Act ( FATCA ) In April 2014, the Australian Government signed an intergovernmental agreement ( IGA ) with the United States of America ( U.S. ), which requires all Australian financial institutions to comply with the FATCA Act enacted by the U.S. in Under FATCA, Australian financial institutions are required to collect and review their information to identify U.S. residents that invest in assets through non-u.s. entities. This information is reported to the Australian Taxation Office ( ATO ). The ATO may then pass that information onto the U.S. Internal Revenue Service. In order to comply with the FATCA obligations, we may request certain information from you. Failure to comply with FATCA obligations may result in the Trust, to the extent relevant, being subject to a 30% withholding tax on payment of U.S. income or gross proceeds from the sale of certain U.S. investments. If the Trust suffers any amount of FATCA withholding and is unable to obtain a refund for the amounts withheld, we will not be required to compensate unitholders for any such withholding and the effect of the amounts withheld will be reflected in the returns of the Trust. Standard Life Investments Absolute Return Global Bond Strategies Trust PDS 27

28 12. Glossary of important terms AEDT Australian Eastern Daylight Time Application Cut Off Date 1 Business Day prior to the Valuation Date. Application Form The Application Form used by investors who wish to subscribe for units directly in the Fund (other than indirectly through an IDPS Operator) and attached to this PDS. ASIC Australian Securities and Investments Commission. Asset Class A category of financial assets. The major asset classes are shares, property, fixed interest securities and cash. ATO Australian Tax Office Base Currency The Base Currency of the Underlying Fund is Sterling. Business Day A day other than a Saturday or Sunday on which banks are open for general banking business in Sydney. Buy/Sell Spread The difference between the application price and Withdrawal Price of units in a Fund, which reflects the estimated transaction costs associated with buying and selling the assets of a Fund, when investors invest in or withdraw from a Fund. Constitution The Constitution describes the rights, responsibilities and beneficial interests of both investors and the Responsible Entity in relation to the Fund. Corporations Act The Corporations Act 2001 (Cth) and Corporations Regulations 2001 (Cth), as amended from time to time. Derivative A financial contract that derives its value from an underlying security, liability or index. Derivatives come in many varieties, including forwards, futures, options and swaps. GST Goods and Services Tax. Hedge An investment made in order to reduce the risk of adverse price movements in an investment. IDPS Investor directed portfolio service. An IDPS is generally the vehicle through which an investor purchases a range of underlying investment options from numerous investment managers, with the IDPS Operator providing the investor with consolidated and streamlined transaction statements and other reporting. IDPS Operator An entity that operates and offers an IDPS. Indirect Investor A person who invests indirectly in units in a Fund through an IDPS. Leverage The use of borrowings, various financial instruments and/or borrowed securities to increase the potential return of an investment. When Leverage is used by an underlying fund, the exposure of the fund to investments exceeds the Net Asset Value of the fund. Net Asset Value or NAV The value of assets of a Fund, less the value of the liabilities of a Fund. OTC Over the Counter, traded other than on a formal exchange. Retail Client Persons or entities defined as retail clients under section 761G of the Corporations Act. RITC Reduced Input Tax Credit. Equity Trustees will apply for reduced input tax credits on behalf of the Fund, where applicable, to reduce the GST cost to the Fund. UCITS Undertaking for Collective Investment In Transferrable Securities. UCITS Regulations European Union regulations governing UCITS. US Person A person so classified under securities or tax law in the United States of America ( US ) including, in broad terms, the following persons: (a) any citizen of, or natural person resident in, the US, its territories or possessions; or (b) any corporation or partnership organised or incorporated under any laws of or in the US or of any other jurisdiction if formed by a US Person (other than by accredited investors who are not natural persons, estates or trusts) principally for the purpose of investing in securities not registered under the US Securities Act of 1933; or (c) any agency or branch of a foreign entity located in the US; or (d) a pension plan primarily for US employees of a US Person; or (e) a US collective investment vehicle unless not offered to US Persons; or (f) any estate of which an executor or administrator is a US Person (unless an executor or administrator of the estate who is not a US Person has sole or substantial investment discretion over the assets of the estate and such estate is governed by non- US law) and all the estate income is non-us income not liable to US income tax; or (g) any trust of which any trustee is a US Person (unless a trustee who is a professional fiduciary is a US Person and a trustee who is not a US Person has sole or substantial investment discretion over the assets of the trust and no beneficiary (or settlor, if the trust is revocable) of the trust is a US Person); or (h) any discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary for the benefit or account of a US Person; or (i) any non-discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary organised, incorporated or (if an individual) resident in the US for the benefit or account of a US Person. Valuation Date The date the Fund is valued for calculating a unit price for applications and redemptions. 28 Standard Life Investments Absolute Return Global Bond Strategies Trust PDS

29 Wholesale Clients Persons or entities defined as wholesale clients under section 761G of the Corporations Act. Wholesale Investor In the case of a New Zealand investor, has the meaning given in clause 3(2) of Schedule 1 of the New Zealand Financial Markets Conduct Act Standard Life Investments Absolute Return Global Bond Strategies Trust PDS 29

30 Standard Life Investments Trusts Application Form If completing by hand, use a black or blue pen and print within the boxes in BLOCK LETTERS Use ticks in boxes where applicable The applicant must complete, print and sign this form Keep a photocopy of your completed Application Form for your records Please ensure all relevant sections are complete before submitting this form This application form is part of the Product Disclosure Statements ('PDS') issued by Equity Trustees Limited (ABN , AFSL ) relating to units in one of the following Funds: Standard Life Investments Global Absolute Return Strategies Trust Standard Life Investments Absolute Return Global Bond Strategies Trust Standard Life Investments Global Corporate Bond Trust Standard Life Investments Global Equity Unconstrained Trust Standard Life Investments Global Focused Strategies Trust Each PDS contains information about investing in the Fund. You should read the PDS before applying for units in the Fund. A person who gives another person access to the Application Form must at the same time and by the same means give the other person access to the PDS. Equity Trustees will provide you with a copy of the PDS and the Application Form on request without charge (If you make an error while completing your application form, do not use correction fluid. Cross out your mistakes and initial your changes). US Persons: This offer is not open to any US Person. Please refer to the Product Disclosure Statement and Reference Guide for further information. Section 1 Introduction Are you an existing investor and the information provided for that investment remains current and correct? YES my details are: Account Number Account Name Contact Telephone Number (Including Country Code) Not appointing a power of attorney, agent or financial adviser Complete sections 8, 9, 10 Appointing a power of attorney, agent or financial adviser Complete sections 6 and/or 7, 8, 9, 10 * Please note there will be instances where we may be required to collect additional information about you and may ask you to provide certified copies of certain identification documents along with the Application Form. NO Only complete the sections relevant to you, as indicated below: Select One Investor Type Sections to Complete Identification Requirement Groups to Complete Individual(s) 1, 2, 7, 8, 9, 10 Group A Partnership 1, 3, 7, 8, 9, 10 Group A and B Trust: 1, 2, 4, 5, 7, 8, 9, Individual trustee(s) or 2. Corporate trustee(s) 1. Group A and C 2. Group A, C and D Company 1, 5, 7, 8, 9, 10 Group A and D If you are appointing an agent or authorised representative or a financial advisor also complete the relevant section as indicated below: Agents; Authorised 6 or 7 Group A or D Representatives; Financial Advisor If you are an Association, Co-operative, Government Body or other type of entity not listed above, please contact the Fund. Standard Life Investments Trusts Application Form December 2017 Page 1 of 16

31 Contacting the Fund Fund Manager: Post your completed application to: Standard Life Investments Limited Ph State Street Australia Limited Attention: Unit Registry Level 14, 420 George St Sydney NSW 2000 AML/CTF Identity Verification Requirements The AML/CTF Act requires the Responsible Entity to adopt and maintain an anti-money laundering and counter-terrorism financing ('AML/CTF') program. The AML/CTF program includes ongoing customer due diligence, which may require the Responsible Entity to collect further information. Identification documentation provided must be in the name of the Applicant. Non-English language documents must be translated by an accredited translator. Applications made without providing this information cannot be processed until all the necessary information has been provided. If you are unable to provide the identification documents described please contact the Fund These documents should be provided as an original or a CERTIFIED COPY of the original. GROUP A Individuals Each individual investor, individual trustee, partner, beneficial owner, or individual agent or authorised representative must provide one of the following primary photographic ID: A current Australian driver s licence (or foreign equivalent) that includes a photo and signature An Australian passport (or foreign equivalent) (not expired more than 2 years previously) An identity card issued by a State or Territory Government that includes a photo If you do NOT own one of the above ID documents, please provide one valid option from Column A and one valid option from Column B. Column A Column B Australian birth certificate Australian citizenship certificate Pension card issued by Department of Human Services 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 GROUP B Partnerships Provide one of the following: A certified copy of the partnership agreement or equivalent, showing the full name of the partnership, name and residential address of each partner. In addition, please provide verification documents for one partner(s) and beneficial owner(s) of the Partnership as listed under Group A for individuals. The beneficial owners of a partnership include partners with a 25% partnership share or more; partners (if any) who control the partnership; any managing partner. If in doubt, founding partners should be considered beneficial owners. Standard Life Investments Trusts Application Form December 2017 Page 2 of 16

32 GROUP C Trusts Registered Managed Investment Scheme, Government Superannuation Fund or a trust registered with the Australian Charities, Regulated Superannation Fund (including a self-managed super fund) and Not-for-profit Commission (ACNC),provide one of the following: A copy of the company search of the relevant regulator s website e.g. APRA, ASIC or ATO A copy or relevant extract of the legislation establishing the government superannuation fund sourced from a government website. A copy from the ACNC of information registered about the trust as a charity Annual report or audited financial statements. A certified copy of a notice issued by the ATO within the previous 12 months. A certified copy of the Trust Deed For all other Unregulated trust (including Foreign trust), provide the following: A certified copy of the Trust Deed. If the trustee is an individual, please also provide verification documents for one trustee as listed under Group A. If the trustee is a company, please also provide verification documents for a company as listed under Group D. GROUP D Companies For Australian Registered Companies provide one of the following (must clearly show the Company s full name, type (private or public) and ACN): A certified copy of the company s Certificate of Registration or incorporation issued by ASIC. A copy of information regarding the company s licence or other information held by the relevant Commonwealth, State or Territory regulatory body e.g. AFSL, RSE, ACL etc. A full company search issued in the previous 3 months; If the company is listed on an Australian securities exchange, provide details of the exchange and the ticker (issuer) code; If the company is a majority owned subsidiary of a company listed on an Australian securities exchange, provide details of the exchange and the ticker (issuer) code for the holding company For Foreign Companies, provide one of the following: A certified copy of the company s Certificate of Registration or incorporation issued by the foreign jurisdiction s in which the company was incorporated, established or formed. A certified copy of the company s articles of association or constitution. A copy of a company search on the ASIC database or relevant foreign registration body. All of above must clearly show the company s full name, its type (i.e. public or private) and the ARBN issued by ASIC, or the identification number issued to the company by the foreign regulator. In addition please provide verification documents for each beneficial owner (senior managing official and shareholder) as listed under Group A. A beneficial owner of a company is any customer entitled (either directly or indirectly) to exercise 25% or more of the voting rights, including a power of veto, or who holds the position of senior managing official (or equivalent). In addition to the above entity groups: GROUP E Agents and Authorised Representatives If you are an Individual Agent or Representative please also provide the identification documents listed under Group A. If you are a Corporate Agent or Representative please also provide the identification documents listed under Group D All Agents and Authorised Representatives must also provide a certified copy of their authority to act for the investor e.g. the POA, guardianship order, Executor or Administrator of a deceased estate, authority granted to a bankruptcy trustee, authority granted to the State or Public Trustee etc. Standard Life Investments Trusts Application Form December 2017 Page 3 of 16

33 Additional Information In most cases the information that you provide in this form will satisfy the AML/CTF Act, the US Foreign Account Tax Compliance Act ( FATCA ) and the Common Reporting Standards ( CRS ). However, in some instances the Responsible Entity may contact you to request further information. It may also be necessary for the Responsible Entity to collect information (including sensitive information) about you from third parties in order to meet its obligations under the AML/CTF Act, FATCA and CRS. When you complete this Application Form you make the following declarations: I/We have received the PDS and made this application in Australia or New Zealand. I/We have read the PDS to which this Application Form applies and agree to be bound by the terms and conditions of the PDS and the Constitution of the Fund in which I/we have chosen to invest. I/We have considered our personal circumstances and, where appropriate, obtained investment and / or taxation advice. I/We hereby declare that I/we are not a US Person as defined in the PDS. I/We acknowledge that (if a natural person) I am/we are 18 years of age or over and I am/we are eligible to hold units in the Fund in which I/we have chosen to invest. I/We acknowledge and agree that Equity Trustees have outlined in the PDS provided to me/us how and where I/we can obtain a copy of the Equity Trustees Group Privacy Statement. I/We consent to the transfer of any of my/our personal information to external third parties including but not limited to fund administrators, fund investment manager(s) and related bodies corporate who are located outside Australia for the purpose of administering the products and services for which I/we have engaged the services of Equity Trustees or its related bodies corporate and to foreign government agencies for reporting purposes (if necessary). I/we hereby confirm that the personal information that I/we have provided to Equity Trustees is correct and current in every detail, and should these details change, I/we shall promptly advise Equity Trustees in writing of the change(s). I/We agree to provide further information or personal details to the Responsible Entity if required to meet its obligations under anti-money laundering and counter-terrorism legislation, US tax legislation or reporting legislation and acknowledge that processing of my/our application may be delayed and will be processed at the unit price applicable for the Business Day as at which all required information has been received and verified. If I/we have provided an address, I/we consent to receive ongoing investor information including PDS information, confirmations of transactions and additional information as applicable via . I/We acknowledge that Equity Trustees does not guarantee the repayment of capital or the performance of the Fund or any particular rate of return from the Fund. I/We acknowledge that an investment in the Fund is not a deposit with or liability of Equity Trustees and is subject to investment risk including possible delays in repayment and loss of income or capital invested. I/We acknowledge that Equity Trustees is not responsible for the delays in receipt of monies caused by the postal service or the applicant s bank. Declarations If I/we lodge a fax application request, I/we acknowledge and agree to release, discharge and agree to indemnify Equity Trustees from and against any and all losses, liabilities, actions, proceedings, account claims and demands arising from any fax application. If I/we have completed and lodged the relevant sections on authorised representatives/agents on the Application Form then I/we agree to release, discharge and indemnify Equity Trustees from and against any and all losses, liabilities, actions, proceedings, account claims and demands arising from Equity Trustees acting on the instructions of my/our authorised representatives, agents and/or nominees. If this is a joint application each of us agrees that our investment is held as joint tenants. I/We acknowledge and agree that where the Responsible Entity, in its sole discretion, determines that: o I/we are ineligible to hold units in a Fund or have provided misleading information in my/our Application o Form; or I/we owe any amounts to Equity Trustees, then I/we appoint the Responsible Entity as my/our agent to submit a withdrawal request on my/our behalf in respect of all or part of my/our units, as the case requires, in the Fund. For Australian applicants - I/We acknowledge that I am / we are a Wholesale Client (as defined in Section 761G of the Corporations Act 2001 (Cth)) and are therefore eligible to hold units in the Fund. For New Zealand applicants - I/We acknowledge and agree that: o o o o o I/we have read the New Zealand Wholesale Investor Fact Sheet and PDS for the Fund; I am/we are a Wholesale Investor and am/are therefore eligible to hold units in the Fund; and I/we have not: Offered, sold, or transferred, and will not offer, sell, or transfer, directly or indirectly, any units in the Fund; Granted, issued, or transferred, and will not grant, issue, or transfer, any interests in or options over, directly or indirectly, any units in the Fund; and Distributed and will not distribute, directly or indirectly, the PDS or any other offering materials or advertisement in relation to any offer of units in the Fund, in each case in New Zealand, other than to a person who is a Wholesale Investor; and I/we will notify EQT if I/we cease to be a Wholesale Investor; and I/we have separately provided a signed Wholesale Investor Certification. All references to Wholesale Investor in this Declaration are a reference to Wholesale Investor in terms of clause 3(2) of Schedule 1 of the Financial Markets Conduct Act 2013 (New Zealand). Terms and conditions for collection of Tax File Numbers (TFN) and Australian Business Numbers (ABN) Collection of TFN and ABN information is authorised and its use and disclosure strictly regulated by tax laws and the Privacy Act. Investors must only provide an ABN instead of a TFN when the investment is made in the course of their enterprise. You are not obliged to provide either your TFN or ABN, but if you do not provide either or claim an exemption, we are required to deduct tax from your distribution at the highest marginal tax rate plus Medicare levy to meet Australian taxation law requirements. For more information about the use of TFNs for investments, contact the enquiries section of your local branch of the ATO. Once provided, your TFN will be applied automatically to any future investments in the Fund where formal application procedures are not required (e.g. distribution reinvestments), unless you indicate, at any time, that you do not wish to quote a TFN for a particular investment. Exempt investors should attach a copy of the certificate of exemption. For super funds or trusts list only the applicable ABN or TFN for the super fund or trust. When you sign this Application Form you declare that you have read and agree to the declarations above. Standard Life Investments Trusts Application Form December 2017 Page 4 of 16

34 Section 2 Individual(s) or Individual Trustee(s) Complete this section if you are investing in your own name or as an individual trustee. For AML documentary requirements please refer to page Type of investor Tick one box only and complete the specified parts of this section. Individual complete 2.2 Sole Trader complete 2.2 and 2.4 Jointly with another individual(s) complete 2.2, 2.3 Individual trustee for an individual complete 2.2, 2.3 and 2.5 and 2.5 (if there is more than one individual trustee) Individual trustee for a trust complete 2.2 and 2.3 (also complete section 4) 2.2 Investor 1 Title Given Name(s) Surname Telephone Number (Including Country Code) Date of Birth (DDMMYY) Tax File Number (TFN) or exemption code Reason for TFN Exemption Residential Address (not a PO Box) Unit Number Street Number Street Name Suburb State Post Code Country of Birth What is your occupation? Do you hold a prominent public position or function in a government body (local, state, territory, national or foreign) or in an international organisation or are you an immediate family member or a business associate of such a person? No Yes, please give details Are you a foreign resident for tax purposes? No Yes, please advise country of residence Do you hold dual citizenship? No Yes, please advise which countries 2.3 Investor 2 Title Given Name(s) Surname Telephone Number (Including Country Code) Date of Birth (DDMMYY) Tax File Number (TFN) or exemption code Reason for TFN Exemption Residential Address (not a PO Box) Unit Number Street Number Street Name Suburb State Post Code Country of Birth Standard Life Investments Trusts Application Form December 2017 Page 5 of 16

35 What is your occupation? Do you hold a prominent public position or function in a government body (local, state, territory, national or foreign) or in an international organisation or are you an immediate family member or a business associate of such a person? No Yes, please give details Are you a foreign resident for tax purposes? No Yes, please advise country of residence Do you hold dual citizenship? No Yes, please advise which countries 2.4 Sole Trader Details Business Name (if applicable, in full) Australian Business Number (ABN) (if obtained)* Street Address Suburb State Postcode Country 2.5 Signing Authority Please tick to indicate signing requirements for future instructions (e.g. withdrawals, change of account details, etc.) Only one investor required to sign All investors must sign * See page 4 of the Application Form for terms and conditions relating to the collection of TFNs and ABNs Section 3 Partnerships Complete this section if you are investing for a partnership or as a partner. For AML documentary requirements please refer to page General Information Full Name of Partnership Registered Business Names of Partnership (if any) Country where Partnership is established Tax File Number (TFN) or exemption code Reason for TFN Exemption 3.2 Type of Partnership Is the partnership regulated by a professional association? Yes, please provide details (need only give information below for partners with a 25% or greater interest or, if there are no such partners, for just one partner) Name of Professional Association Membership Details No, provide number of partners Partner 1 Title Given Name (s) Surname Standard Life Investments Trusts Application Form December 2017 Page 6 of 16

36 Telephone Number (including Country Code) (daytime) Date of Birth (DDMMYY) Unit Street Number Street Name (residential address) Suburb State Postcode Country Country of Birth Does this partner hold a prominent public position or function in a government body (local, state, territory, national or foreign) or in an international organisation or is the partner an immediate family member or a business associate of such a person? No Yes, please give details Partner 2 Title Given Name (s) Surname Telephone Number (including Country Code) (daytime) Date of Birth (DDMMYY) Unit Street Number Street Name (residential address) Suburb State Postcode Country Country of Birth Does this partner hold a prominent public position or function in a government body (local, state, territory, national or foreign) or in an international organisation or is the partner an immediate family member or a business associate of such a person? No Yes, please give details Section 4 Trust / Superannuation Fund Complete this section if you are investing for a trust or superannuation fund. For AML docmentary requirements please refer to page General Information Full Name of Trust or Superannuation Fund Full Name of Business (if any) Country where Trust established Tax File Number (TFN) or exemption code Reason for TFN Exemption 4.2 Trustee Details How many trustees are there? Individual - trustee(s) must complete Section 2 of this form Company - trustee(s) must complete Section 5 of this form Combination - trustee(s) from each investor type must complete the relevant section of this form 4.3 Type of Trust Registered Managed Investment Scheme Australian Registered Scheme Number (ARSN) Regulated Trust (including self-managed superannuation funds and registered charities that are trusts) Name of Regulator (e.g. ASIC, APRA, ATO, ACNC) Registration/Licence Details Australian Business Number (ABN)* Standard Life Investments Trusts Application Form December 2017 Page 7 of 16

37 Other Trust (Unregulated) (also complete section 4.4) Please Describe 4.4 Beneficiaries of an Unregulated Trust Complete Section 4.4 and 4.5 only if you ticked Other Trust in 4.3 Does the Trust Deed name beneficiaries? Yes, how many? Provide the full name of each beneficiary who directly or indirectly is entitled to an interest of 25% or more in the trust No, describe the class of beneficiary: (e.g. the name of the family group, class of unit holders, the charitable purpose of charity name) * See page 4 of the Application Form for terms and conditions relating to the collection of TFNs and ABNs. 4.5 Beneficial Owners and other persons of interest in an Unregulated Trust Please provide the full name of any beneficial owner of the trust. A beneficial owner is any individual who directly or indirectly has a 25% or greater interest in the trust or a person who exerts control over the trust. This includes the appointer of the trust (who holds the power to appoint or remove the trustees of the trust. All beneficial owner(s) who meet the above definition will need to provide information and AML verification documents set out in Group A, F, G or H. Please provide beneficial owners as an attachment if there is insufficient space below: Does any beneficial owner hold a prominent public position or function in a government body (local, state, territory, national or foreign) or in an international organisation or is the beneficial owner an immediate family member or a business associate of such a person? No Yes, please give details Please provide the full name of the settlor of the trust where the initial asset contribution to the trust was greater than $10,000 and the settlor is not deceased. Section 5 Company / Corporate Trustee Complete this section if you are investing for a company or where a company is acting as a trustee. For AML documentary requirements please refer to page Company Type Australian Listed Public Company complete 5.2 Australian Proprietary Company or non-listed public company complete 5.2 and 5.4 Foreign Company complete all sections 5.2 Company Details Company Name ACN/ABN (if registered in Australia) Tax File Number (TFN) or exemption code Reason for TFN Exemption Given Name(s) of Contact Person Standard Life Investments Trusts Application Form December 2017 Page 8 of 16

38 Telephone Number (Including Country Code) Registered Office Street Address (Not PO Box) Suburb State Post Code Country Principal place of business in Australia Note for non-australian companies registered with ASIC: you must provide a local agent name and address if you do not have a principal place of business in Australia. Tick if the same as above, otherwise provide: Registered Street Address (Not PO Box) Suburb State Post Code 5.3 Additional Details for non-australian Company Tick if the company is registered with ASIC Australian Registered Body Number (ARBN) Tick if the company is registered with a foreign regulatory body Name of Foreign Regulatory Body Company Identification Number Issued (if any) Country of formation, incorporation or registration Company type (eg private company) Registered Company Address (Not PO Box) Suburb State Post Code Country 5.4 Beneficial owners a. Senior Managing Official and controlling person: All proprietary or non-listed public domestic companies and foreign companies must provide the full name of each senior managing official and controlling person of the company (such as the managing director or a senior executive who exerts control over the company i.e. authorised to sign on the company s behalf, make policy, operational and financial decisions): If there are more than 4 directors please provide as an attachment. b. Shareholders and other beneficial owners: All proprietary or non-listed public domestic companies and foreign companies must provide the full name of each shareholder and those who owns directly, indirectly, jointly or beneficially 25% or more of the company s issued capital If there are more than 4 shareholders please provide as an attachment. Does any beneficial owner hold a prominent public position or function in a government body (local, state, territory, national or foreign) or in an international organisation or is the beneficial owner an immediate family member or a business associate of such a person? No Yes, please give details * See page 4 of the Application Form for terms and conditions relating to the collection of TFNs and ABNs. Standard Life Investments Trusts Application Form December 2017 Page 9 of 16

39 Section 6 Authorised representative or agent Complete this section if you are completing this Application Form as an agent under a direct authority such as a Power of Attorney. You must also complete the section relevant to the investor/applicant that you are acting on behalf of. For AML documentary requirements please refer to page Appointment of Power of Attorney or other Authorised Representative I am an agent under Power of Attorney or the investor s legal or nominated representative - complete 6.2 Full name of authorised representative / agent Title of role held with applicant Signature 6.2 Documentation You must attach a valid authority such as a Power of Attorney, guardianship order, grant of probate, appointment of bankruptcy trustee etc: The document is an original or certified copy The document is signed by the applicant / investor or a court official The document is current and complete The document permits the attorney / agent / representative (you) to transact on behalf of the applicant / investor Section 7 Financial adviser By completing this section you nominate the named adviser as your financial adviser for the purposes of your investment in the Fund. You also consent to give your financial adviser / authorised representative / agent access to your account information unless you indicate otherwise by ticking the box below. For AML documentary requirements please refer to page Financial adviser I am a financial adviser completing this application form as an authorised representative or agent. Name of Adviser AFSL Number Dealer Group Name of Advisory Firm Postal Address Suburb State Post Code Country Address of Advisory Firm (required) Address of Adviser Business Telephone Facsimile 7.2 Financial Adviser Declaration I/We hereby declare that I/we are not a US Person as defined in the PDS I/We hereby declare that the investor is not a US Person as defined in the PDS I/We have completed an appropriate Customer Identification Procedure (CIP) on this investor which meets the requirements (per type of investor) set out above. AND EITHER I/We have attached the relevant CIP documents; OR I/We have not attached the CIP documents however I/We confirm that I/We have completed AML/KYC checks on the applicant(s) in accordance to the AUSTRAC requirements. I/We agree to provide Equity Trustees the relevant CIP documents on request. Financial Adviser Signature 7.3 Access to Information Unless you elect otherwise, your financial adviser will be provided access to your account information or receive copies of statements and transaction confirmations. Please tick this box if you DO NOT want your financial adviser to have access to information about your investment. Please tick this box if you DO NOT want copies of statements and transaction confirmations sent to your adviser. Standard Life Investments Trusts Application Form December 2017 Page 10 of 16 Date

40 Section 8 INVESTMENT INSTRUCTIONS (All investors MUST complete) 8.1 Investment Details Full name investment to be held in (must include name of Applicant) Mailing Address Suburb State Post Code Country Address Phone Name of Fund APIR Code Investment Amount (AUD) Standard Life Investments Absolute Return Global Bond Strategies Trust Standard Life Investments Global Absolute Return Strategies Trust Standard Life Investments Global Corporate Bond Trust Standard Life Investments Global Equity Unconstrained Trust Standard Life Investments Global Focused Strategies Trust 8.2 Distribution Instructions ETL0134AU $ ETL0130AU $ ETL0132AU $ ETL0489AU $ ETL0465AU $ Distribution (indicated preference with an X) (See 8.2) Reinvest We will automatically reinvest your distribution in units of your chosen fund if you do not make a selection between reinvest distributions and pay distributions to the bank account below. If you select to pay distributions to the bank account below for your distributions, please provide your bank details in section 8.3. Reinvest distributions If you select this option your distributions will be reinvested in the Fund. Pay distributions to the bank account below AUD-denominated bank account with an Australian domiciled bank Cash 8.3 Investor Banking Details for Redemptions and Distributions (if applicable)(must match Applicant name) Account name Financial Institution Branch (including Country) BSB Account Number 8.4 Payment Method Cheque Make cheque made payable to Equity Trustees Ltd as RE for Standard Life Investments Trust Austraclear Funds should be transferred to Austraclear code SSBS20 Standard Life Investments Trusts Application Form December 2017 Page 11 of 16

41 Electronic Funds Transfer Bank Name & Address (including country) Account Name BSB Number Account Number Reference 8.5 Elections Westpac Banking Corporation Level 1, 275 Kent Street, Sydney NSW 2000 Standard Life Investments Applications Account Please quote investor name as per application form Annual Financial Report The annual financial report for the Fund will be available on from 30 September each year, however, if you would like a hard copy of the annual financial report sent to you please tick the box. Direct Marketing Do you wish to receive marketing information from Equity Trustees (and Equity Trustees related bodies corporate) about products and services that may be of interest to you? This information may be distributed by mail, or other form of communication. Yes No 8.6 Purpose of Investment and Source of Funds Please outline the purpose of investment (e.g. superannuation, portfolio investment, etc) Please outline the source/s of initial funding and anticipated ongoing funding (e.g. salary, savings, business activity, financial investments, real estate, inheritance, gift, etc and expected level of funding activity or transactions) Standard Life Investments Trusts Application Form December 2017 Page 12 of 16

42 Section 9 Foreign Account Tax Compliance Act (FATCA) & Common Reporting Standard (CRS) Self-Certification Form - Australia (All investors MUST complete) Existing investors Did your FATCA or CRS status change from what was previously provided? Yes: Complete the below relevant sections No: Continue to question 12 SECTION I - INDIVIDUALS Please fill this Section I only if you are an individual. If you are an entity, please fill Section II. 1. Are you a US citizen or resident of the US for tax purposes? Yes: Provide your Taxpayer Identification Number (TIN) below. Continue to question 2 Investor 1 Investor 2 TIN TIN No: Continue to question 2 2. Are you a tax resident of any other country outside of Australia? Yes: Provide the details below and skip to question 12. If resident in more than one jurisdiction please include details for all jurisdictions Investor 1 Investor Country of Tax Residence Tax Identification Number (TIN) or equivalent Reason Code if no TIN provided If TIN or equivalent is not provided, please provide reason from the following options: o Reason A: The country/jurisdiction where the entity is resident does not issue TINs to its residents o Reason B: The entity is otherwise unable to obtain a TIN or equivalent number (Please explain why the entity is unable to obtain a TIN in the below table if you have selected this reason) o Reason C: No TIN is required. (Note. Only select this reason if the domestic law of the relevant jurisdiction does not require the collection of the TIN issued by such jurisdiction) If Reason B has been selected above, explain why you are not required to obtain a TIN Investor 1 Investor 2 No: Skip to question 12 SECTION II ENTITIES Please fill this Section II only if you are an entity. If you are an individual, please fill Section I. 3. Are you an Australian Retirement Fund? Yes: Skip to question 12 A. FATCA No: Continue to question 4 4. Are you a US Person? Yes: Continue to question 5 No: Skip to question 6 5. Are you a Specified US Person? Yes: Provide your Taxpayer Identification Number (TIN) below and skip to question 7 TIN Standard Life Investments Trusts Application Form December 2017 Page 13 of 16

43 No: Please indicate exemption type and skip to question 7 Type: 6. Are you a Financial Institution for the purposes of FATCA? Yes: Provide your GIIN below and continue to question 7 GIIN If you do not have a GIIN, please provide your FATCA status below and continue to question 7 B. CRS Exempt Beneficial Owner Type: Deemed-Compliant FFI (other than a Sponsored FI or a Trustee Documented Trust) Type: Non-Participating FFI Type: Sponsored Financial Institution. Please provide the Sponsoring Entity s name and GIIN. Sponsoring Entity s Name: Sponsoring Entity s GIIN: Trustee Documented Trust. Please provide your Trustee s name and GIIN. Trustee s Name: Other Details: No: continue to question 7 Trustee s GIIN: 7. Are you a tax resident of any country outside of Australia? Yes: Provide the details below and continue to question 8. If resident in more than one jurisdiction please include details for all jurisdictions Country of Tax Residence Tax Identification Number (TIN) or equivalent Reason Code if no TIN provided If TIN or equivalent is not provided, please provide reason from the following options: o o o Reason A: The country/jurisdiction where the entity is resident does not issue TINs to its residents Reason B: The entity is otherwise unable to obtain a TIN or equivalent number (Please explain why the entity is unable to obtain a TIN in the below table if you have selected this reason) Reason C: No TIN is required. (Note. Only select this reason if the domestic law of the relevant jurisdiction does not require the collection of the TIN issued by such jurisdiction) If Reason B has been selected above, explain why you are not required to obtain a TIN No: Continue to question 8 8. Are you a Financial Institution for the purposes of CRS? Yes: Specify the type of Financial Institution below and continue to question 9 Reporting Financial Institution Non-Reporting Financial Institution: Specify the type of Non-Reporting Financial Institution below No: Skip to question 10 Trustee Documented Trust Other: Please Specify 9. Are you an Investment Entity resident in a Non-Participating Jurisdiction for CRS purposes and managed by another Financial Institution? Yes: Skip to question 11 No: Skip to question 12 Standard Life Investments Trusts Application Form December 2017 Page 14 of 16

44 C. NON-FINANCIAL ENTITIES 10. Are you an Active Non-Financial Entity (Active NFE)? Yes: Specify the type of Active NFE below and skip to question 12 Less than 50% of the Active NFE s gross income from the preceding calendar year is passive income (e.g. dividends, distribution, interests, royalties and rental income) and less than 50% of its assets during the preceding calendar year are assets held for the production of passive income Corporation that is regularly traded or a related entity of a regularly traded corporation Governmental Entity, International Organisation or Central Bank Other: Please Specify No: You are a Passive Non-Financial Entity (Passive NFE). Continue to question 11 D. CONTROLLING PERSONS 11. Does one or more of the following apply to you: o Is any natural person that exercises control over you (for corporations, this would include directors or beneficial owners who ultimately own 25% or more of the share capital) a tax resident of any country outside of Australia? o If you are a trust, is any natural person including trustee, protector, beneficiary, settlor or any other natural person exercising ultimate effective control over the trust a tax resident of any country outside of Australia? Yes: Complete details below and continue to question 12 1 Name Date of Birth Residential Address Country of Tax Residence TIN or equivalent Reason Code if no TIN provided 2 3 If there are more than 3 controlling persons, please list them on a separate piece of paper. If TIN or equivalent is not provided, please provide reason from the following options: o o o Reason A: The country/jurisdiction where the entity is resident does not issue TINs to its residents Reason B: The entity is otherwise unable to obtain a TIN or equivalent number (Please explain why the entity is unable to obtain a TIN in the below table if you have selected this reason) Reason C: No TIN is required. (Note. Only select this reason if the domestic law of the relevant jurisdiction does not require the collection of the TIN issued by such jurisdiction) If Reason B has been selected above, explain why you are not required to obtain a TIN No: Continue to question 12 E. DECLARATION 12. Signature I undertake to provide a suitably updated self-certification within 30 days of any change in circumstances which causes the information contained herein to become incorrect. I declare the information above to be true and correct. Investor 1 Investor 2 Signature Signature Date Date Name of authorised representative Name of authorised representative Name of entity/individual Name of entity/individual Standard Life Investments Trusts Application Form December 2017 Page 15 of 16

45 Section 10 DECLARATIONS (All Investors MUST complete) By signing as or on behalf of the Applicant, you make all the declarations set out above, in all sections. Applicant 1 Applicant Given Name(s) Capacity Individual Signatory Director Executive Office Partner Sole Director / Secretary Authorised Signatory Signature Date Company Seal (if applicable) Applicant 2 Applicant Given Name(s) Capacity Individual Signatory Director Executive Office Partner Sole Director / Secretary Authorised Signatory Signature Date Company Seal (if applicable) Application Checklist Have you completed all sections relevant to you (as set out in the introduction)? Have you nominated your financial adviser in section 7 (if applicable)? Have you provided certified copies of your identification documents or has your financial adviser completed this for you? Have you completed all other relevant details and SIGNED the Application Form? New Zealand Investors: Have you completed the Wholesale Investor Certification? If you can tick all of the boxes above, send the following: Completed Application Form; Certified copies of identification documents; A cheque made payable to Equity Trustees Ltd as RE for Standard Life Investments Trust (unless you are paying by direct debit, Electronic Funds Transfer or Austraclear). by post to: State Street Australia Limited Attention: Unit Registry Team Standard Life Level 14, 420 George St Sydney NSW 2000 For additional applications the duly completed Application Form (including details regarding your direct credit payment) may be mailed to the postal address above or faxed to the following fax number: State Street Australia Limited Attention: Unit Registry Team - Standard Life. Standard Life Investments Trusts Application Form December 2017 Page 16 of 16

46 Standard Life Investments Trusts Wholesale Class Wholesale Investor Certification (Clause 44 of Schedule 1 of the Financial Markets Conduct Act 2013 (FMCA)) Warning New Zealand law normally requires people who offer financial products to give information to investors before they invest. This information is designed to help investors make an informed decision. If you are a wholesale investor, the usual rules do not apply to offers of financial products made to you. As a result, you may not receive a complete and balanced set of information. You will also have fewer other legal protections for these investments. Ask questions, read all documents carefully, and seek independent financial advice before committing yourself. Offence It is an offence to give a certificate knowing that it is false or misleading in a material particular. The offence has a penalty of a fine not exceeding $50,000. The Offer Units in the Standard Life Investments Trusts ( the Funds ) are offered and issued to investors by Equity Trustees Limited ( Equity Trustees ), with Standard Life Investments Limited appointed as the Investment Manager in respect of the Fund. Offers of units in the Fund in New Zealand are limited to wholesale investors within the meaning of clause 3(2) of Schedule 1 of the Financial Markets Conduct Act In order to access units in the Funds, please review the Standard Life Investments Trusts product disclosure statement ( PDS ) and New Zealand Wholesale Investor Fact Sheet, read this form, select the type(s) of wholesale investor criteria that apply to you, and complete the certification below. If you have any queries in relation to the Fund, please contact Equity Trustees at Any queries in relation to your wholesale investor certification should be directed to Equity Trustees Product Team at productteam@eqt.com.au. Standard Life Investments Trusts Application Form September 2017 Page 1 of 4

47 The client identified below certifies that: the client is a wholesale investor within the meaning of Schedule 1 of the FMCA, clause 3(2) (in relation to offers of financial products); and the client understands the consequences of being certified as a wholesale investor in terms of the FMCA and has received the Standard Life Investments Trusts PDS. The type of wholesale investor outlined in Schedule 1 that applies to the client is identified below, along with the grounds on which the client claims that they fall within the identified type. Unless Equity Trustees agrees otherwise, by completing this form the client is certifying that every transaction on the account referred to below is carried out on its own behalf and not on behalf of any third party. Please contact Equity Trustees if you are acting on behalf of any third party. [Please select all types of wholesale investor below that are applicable by marking a or a in the relevant box(es). For each type that applies, please also select the relevant grounds on which the client is within the identified type]. The client is an investment business (clause 3(2)(a)) Note: other than authorised financial advisers, this applies to entities, not individuals Grounds for claiming the client is within this type: The client is an entity whose principal business consists of investing in financial products The client is an entity whose principal business consists of acting as an underwriter The client is an entity whose principal business consists of providing a financial adviser service within the meaning of section 9 of the Financial Advisers Act 2008) in relation to financial products The client is an entity whose principal business consists of providing a broking service (within the meaning of section 77B of the Financial Advisers Act 2008) in relation to financial products The client is an entity whose principal business consists of trading in financial products on behalf of other persons The client is a registered bank (within the meaning of section 2(1) of the Reserve Bank of New Zealand Act 1989) The client is a non-bank deposit taker (within the meaning of section 5 of the Non-bank Deposit Takers Act 2013) The client is a licensed insurer (within the meaning of section 6(1) of the Insurance (Prudential Supervision) Act 2010) The client is a manager of a registered scheme, or a discretionary investment management service, that holds a market services licence The client is a derivatives issuer that holds a market services licence The client is a QFE or an authorised financial adviser Standard Life Investments Trusts Application Form September 2017 Page 2 of 4

48 The client meets the investment activity criteria (clause 3(2)(b)) Grounds for claiming the client is within this type: The client (including any entity that the client controls or controlled at the relevant time) owns, or at any time during the two-year period before the date of this certificate has owned, a portfolio of financial products (excluding category 2 products, interests in KiwiSaver or any other form of retirement scheme, or financial products issued by an associated person of the client) of a value of at least NZ$1 million (in aggregate) The client (including any entity that the client controls or controlled at the relevant time) has, during the two-year period before the date of this certificate, carried out one or more transactions to acquire financial products (excluding category 2 products, interests in KiwiSaver or any other form of retirement scheme, or financial products issued by an associated person of the client) where the amount payable under those transactions (in aggregate) is at least NZ$1 million, and the other parties to the transactions were not associated persons of the client The client is an individual who has, within the last 10 years before the date of this certificate, been employed or engaged in an investment business and has, for at least two years during that 10-year period, participated to a material extent in the investment decisions made by the investment business The client is large (clause 3(2)(c)) Grounds for claiming the client is within this type: As at the last day of each of the two most recently completed financial years before the date of this certificate, the net assets of the client and any entities controlled by the client exceeded NZ$5 million In each of the two most recently completed financial years before the date of this certificate, the total consolidated turnover of the client and any entities controlled by the client exceeded NZ$5 million The client is a government agency (clause 3(2)(d)) Grounds for claiming the client is within this type: The client is a government department named in Schedule 1 of the State Sector Act 1988 The client is a Crown entity under section 7 of the Crown Entities Act 2004 The client is a local authority The client is a State enterprise (within the meaning of section 2 of the State-Owned Enterprise Act 1986) The client is the Reserve Bank The client is the Board of Trustees of the National Provident Fund continued under the National Provident Fund Restructuring Act 1990 (or a company appointed under clause 3(1)(b) of Schedule 4 of that Act) Standard Life Investments Trusts Application Form September 2017 Page 3 of 4

49 If the client is an entity, the client certifies that it was not established or acquired with a view to being used as an entity to which offers of financial products may be made in reliance upon this exclusion. The client undertakes to provide Equity Trustees Limited with any information it reasonably requests in order to support the certifications provided. The client acknowledges that this certificate is provided to Equity Trustees Limited and Standard Life Investments Limited for the purposes of determining the client s eligibility to be treated as a wholesale investor for the purposes of the FMCA, and that they will be reliant upon the certifications provided in offering financial products or services to the client (whether as part of the Fund or otherwise). The client understands that this certificate is valid and may be relied upon by Equity Trustees Limited and Standard Life Investments Limited for a period of two years following its date, unless earlier revoked. Name of client: Account number: Signatures all individuals/trustees/partners/officers and two directors must sign Individual/Joint/Trustee/Director Signature x Date D D M M Y Y Y Y Full Name Capacity Individual/Joint/Trustee/Director Signature x Date D D M M Y Y Y Y Full Name Capacity Individual/Joint/Trustee/Director Signature x Date D D M M Y Y Y Y Full Name Capacity Standard Life Investments Trusts Application Form September 2017 Page 4 of 4