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1 Smarter Money Active Cash Fund ARSN mfund Investor/Assisted Investor APIR: CRE0014AU mfund code: SMF01 ISIN: AU60CRE00140 Direct Investor APIR Code: SLT0042AU Morningstar Ticker: Additional Information Issued 29 August 2014 Smarter Money Investments Before you start This Additional Information relates to the Product Disclosure Statement dated 29 August 2014 (the PDS) for the Smarter Money Active Cash Fund (the Fund). The information in this document forms part of the PDS should be read together with the PDS. Smarter Money Investments Pty Limited ACN (SMI or Investment Manager) is the investment manager of the Smarter Money Active Cash Fund (formerly called the YBR Smarter Money Fund) (the Fund). Select Asset Management Limited (Select, we or us) is the responsible entity the issuer of the PDS this Additional Information. Numbering headings in this Additional Information follow the numbering headings in the PDS. Text which is materially the same is greyed, like this. Additional information is in normal black text. LEARN MORE New Investors: contact the Customer Service Team on Existing Investors: contact the Administrator on Learn more about : Learn more about the Investment Manager: Find forms at the Download Centre: You may request a free printed copy of the PDS any other document or policy mentioned in or incorporated into the PDS by calling Select on during business hours. 6. costs* DID YOU KNOW? Small differences in both investment performance s costs can have a substantial impact on long term returns. For example, total annual s costs of 2% of your Fund balance rather than 1% could reduce your final return by up to 20% over a 30 year period (for example, reduce it from $100,000 to $80,000). You should consider whether features such as superior investment performance or the provision of better member services justify higher s costs. You may be able to negotiate to pay lower contribution s costs where applicable. Ask us or your TO FIND OUT MORE: If you would like to find out more, or see the impact of the s based on your own circumstances, the Australian Securities Investments Commission (ASIC) website ( au) has a managed investment calculator to help you check out different options. This section shows s other costs that you may be charged. These s other costs may be deducted from your money, from the returns on your investment, or from the Fund s assets as a whole. Taxes are discussed on in the PDS. You should read all of the information about s costs, because it is important to underst their impact on your investment in the Fund. These s other costs are inclusive of Goods Services Tax (GST). The information in the following table can be used to compare s costs between different simple managed investment schemes. These s other costs may be deducted from your account balance, from the returns on your investment, or from the Fund s assets as a whole. 1

2 TYPE OF FEE OR COST AMOUNT when your money moves in or out : HOW AND WHEN PAID Establishment Nil Not applicable Nil Not applicable Withdrawal Nil Not applicable Termination Nil Not applicable Management costs (the s costs for managing your investment) DIRECT INVESTORS Management s are less when you invest more: Amount invested On any amount up to $100,000 On any amount between $100,000 $250,000 On any amount above $250,000 You pay this much on that balance % pa 0.87% pa 0.66% pa These s are calculated accrued daily are paid monthly in arrears out of the Fund s assets. These s are not negotiable. ASSISTED INVESTORS Management s ALL INVESTORS Performance Fee If you invest through an investment platform or with the support of a financial adviser or broker, the s are even lower: (although you may also pay s to your platform or adviser or broker) Account balance any balance You pay 0.66% pa If earned, this is 20.5% of any amount by which the Fund outperforms the Benchmark provided that performance has been higher than any previously achieved cumulative monthly performance level (details are below). This is not always payable. When payable, it is calculated payable monthly in arrears. This is not negotiable. Additional explanation of s costs Management s for direct investors Investors who invest by themselves direct investors - pay s s can also pay performance s (see below) (if you invest through an investment platform or are supported by a financial adviser or a broker, see below). Management s are charged primarily for managing the assets of the Fund. The covers Select s costs operating the Fund. Both are calculated accrue daily are paid monthly in arrears out s assets. The Fund rewards direct investors by charging lower s the more that is invested. We calculate whether you are entitled to any discounts at the end of each month, using the monthly average value of your account. On any balance between $100,000 $250,000, the usual is reduced to 0.87%pa; on any balance greater than $250,000 it is decreased even further, to 0.66%pa. For those who invested themselves (even if assisted by a financial adviser or broker) prior to 3 December 2013, additional discounts can apply. Management s for assisted investors You may access the Fund indirectly through an investment platform, often called a master trust or wrap account, managed discretionary account or investor directed portfolio service. You may also have the assistance of a financial adviser or a broker. These types of investors assisted investors - also pay s s can also pay performance s (see below). Because the amounts that investment platforms invest is often large offer savings to the Fund, because dealing with your financial adviser or broker also offers savings to the Fund, we can offer an even lower for assisted investors: 0.66% pa. There are no discounts for investing longer or for investing more. Obtaining discounts If you are entitled to a discount for any month, we will lower your s automatically you don t need to do anything. And we don t pay cash for any discounts you might earn, rather we issue more units to your account, do this shortly after the end of the relevant month using the then current unit price. If you withdraw before month end, you don t earn the discount for that month. Performance Fee: A performance is also payable when returns are above both the benchmark a high watermark. The benchmark is the RBA official target cash rate + 1% pa, calculated pro-rated monthly, after s ordinary expenses, but before any performance (the Benchmark). The High Water Mark is when the Fund s performance (calculated as the cumulative return, including distributions but before performance s, since inception) is higher than any previously achieved cumulative monthly performance level (the High Water Mark). The Benchmark is calculated monthly based on the unit price at the beginning of the month. If the Investment Manager successfully manages the Fund so as to out-perform the Benchmark in any month as well as the High Water Mark, it is entitled to a performance. The performance is only ever earned if both of these requirements are met. If earned, it is calculated daily paid shortly after the end of each month. The accrues in the unit price through the month. Adjustments are made for applications, withdrawals distributions through the month when doing the calculation. The Benchmark is not intended to be a forecast. It is only an indication of what the Investment Manager aims to achieve to earn its performance. The Fund may not perform. Returns are not guaranteed. Note that performance may exceed the Benchmark even when the investment objective for the Fund is not met: see section 5 of the PDS for details. Sell spread You pay for transaction costs associated with selling s investments through the Sell Spread. Money is not actually deducted from your withdrawal amount. Instead, the exit price is made 0.05% lower. For example, if you withdraw $1,000 in the Fund then a sell spread $0.50 would apply. Changes We may change the s costs without your consent. You will receive at least 30 days notice of any increase. In any case, you cannot be charged more than the constitution for the Fund allows. Such a change to the constitution requires approval of investors. 2

3 Other s costs Investors accessing the Fund through an investment platform are likely to also be paying s for using that platform. Ask your platform operator. If there is not enough money in your bank account when we debit it for a regular investment into the Fund, your bank may charge you s. Ask your bank. Investors accessing the Fund with the assistance of their financial adviser are likely to also be paying s for their assistance. Ask your adviser about this. Your broker may charge you a to help you buy or sell units through mfund: ask them. The may for example be a fixed cost per application (for example, $25, or this could be an amount calculated on the amount you are buying or selling (if for example this was 0.25% you invested $10,000, the broking cost would be $25)). Government s, duties bank charges may also apply to investments withdrawals these would be paid by the Fund or you. Other payments commissions Subject to the law, s charged in relation to the Fund may be paid to others. We maintain a register of alternative remuneration of $300 or more paid to ( received from) financial service licensees advisers. You can inspect this during business hours by contacting the Responsible Entity or the Investment Manager. Investing on the best terms We aim to invest on the best terms possible. If the Fund invests on an institutional basis, we aim to secure reductions. Often paid by a rebate, these amounts are paid into the Fund for the benefit of all investors. We do not charge you twice If the Fund invests into any other Smarter Money fund, we ensure that s payable to SMI are charged only once. We would generally do this by way of a rebate. YBR group entities may take performance s in both funds, because all funds have costs, we do not rebate any Administration charged by us to those funds (these pay for the costs of running these funds). We look after our employees We can choose not to charge members of our YBR group staff, those people associated with them, Investment Management on their investments, as permitted by ASIC policy. Large investments Very large investors are important to any investment business. Large amounts provide buying power, for example, from which all investors benefit. SMI Select can choose not to charge large investors some or all s on their investments, or may pay them some of its own s. ASIC generally regulates how this can be done. We can also do this by way of issuing different classes of units. We are not permitted to enter into individual arrangements with investors who are not wholesale clients as the Corporations Act defines this. s of annual s costs The following tables give examples of how the s costs for the Fund can affect your investment over a one year period. You should use these tables to compare the Fund with other managed investment products. The total of the plus the will range from 0.66% pa to 0.97% pa, depending on what type of investor you are (direct or assisted) what discounts you may be entitled to, but s could be higher if a performance is earned by SMI. Refer to section 6 of the PDS for an example of s payable by a direct investor, assuming no discounts no performance s. 1 Assisted investor, with no performance s An assisted investor is an investor who is accessing the Fund through an investment platform or with the support of a financial adviser or broker Balance of $50,000 including 0.66% pa And, for every $50,000 you have in the Fund you will be charged $330 your balance was $50,000, then you would be charged s of $330. the s you negotiate with your This example assumes no performance was payable. If the RBA official target cash rate + 1% pa) after s ordinary expenses, this was higher than the High Water Mark, a performance of $ would also be payable. 2 Direct investor with an account less than $100,000, no performance (because they invested before 3 December 2013 stayed invested for more than 1 year), a loyalty bonus applies. Balance of $50,000 including 0.87% pa And, for every $50,000 you have in the Fund you will be charged $435 your balance was $50,000, then you would be charged s of $435. the s you negotiate with your This example also assumes no performance was payable. If the RBA official target cash rate + 1% pa) after s ordinary expenses, this was higher than the High Water Mark, a performance of $ would also be payable. 3

4 3 Direct investor with an account balance of more than $100,000 but less than $250,000, no performance no loyalty bonus applies Balance of $250,000 including 0.87% pa And, for every $50,000 you have in the Fund you will be charged $435, then you would be charged s of $435 for each $50,000 invested. the s you negotiate with your In this example the investor is entitled to a discount for having a balance of more than $100,000 but less than $250,000 (in this case, it is assumed the balance was in this range for the entire year). This example also assumes no performance was payable. If the RBA official target cash rate + 1% pa) after s ordinary expenses, this was higher than the High Water Mark, a performance of $ would also be payable for each $50,000 invested. 4 Direct investor with an account balance of more than $100,000 but less than $250,000, no performance (because they invested before 3 December 2013 stayed invested for more than 1 year), a loyalty bonus applies In this example: Balance of $250,000 including 0.87% pa on initial $100, % pa on balance And, on the initial $100,000 you have in the Fund you will be charged $870 each year plus for every $50,000 you have in the Fund over $100,000 you will be charged $385, had a balance of $250,000 through the year then you would be charged s of $2,025. the s you negotiate with your the investor is entitled to a discount for having a balance of more than $100,000 (in this case, it is assumed the balance was more than this for the entire year) the investor is also entitled to a discount for investing for more than a year This example also assumes no performance was payable. If the RBA official target cash rate + 1%) after s ordinary expenses, this was higher than the High Water Mark, a performance of $ would also be payable for each $50,000 invested. 5 Direct investor with an account balance of more than $250,000, invested for less than 1 year, no performance In this example: Balance of $50,000 including 0.97% pa on initial $100,000; 0.87% pa on next $150,000; 0.66% pa on balance And, on initial $100,000 you have in the Fund you will be charged $970 Plus, on next $150,000 you have in the Fund you will be charged $1,305 Plus, for every $50,000 you have in the Fund over $250,000 you will be charged $330, had a balance of $300,000 through the year then you would be charged s of $2,605. What it costs you may depend on the s you negotiate with your the investor is entitled to a discount for having a balance of more than $250,000 (in this case, it is assumed the balance was in this range for the entire year) further discounts would be applicable if (because they invested before 3 December 2013 stayed invested for more than 1 year), a loyalty bonus applied. This example also assumes no performance was payable. If the RBA official target cash rate + 1% pa) after s ordinary expenses, this was higher than the High Water Mark, a performance of $ would also be payable for each $50,000 invested. For all examples There are a few things to keep in mind when considering these examples: it is assumed that you invested after 30 November 2013 unless noted otherwise assisted investors may incur additional costs associated with their investment platform, adviser or broker they assume that s are applied to a constant balance over the course of the year ( the Fund s unit price does not change during the year), all expenses are ordinary (abnormal expenses may make the cost higher, noting ordinary expenses includes all ongoing, custody, responsible entity s, expenses other s that would normally be payable by the Fund except for transaction costs, government charges abnormal expenses), unless stated otherwise, a performance is not payable (performance s will increase s payable). 4

5 Further Information New Investors Contact the Customer Service Team on Existing Investors Contact the Administrator FundBPO Pty Limited on E: GPO Box 4968 Sydney NSW 2001 F: Find forms at the Download Centre: Distributed by: Smarter Money Investments Pty Limited an authorised representative, #414337, of Yellow Brick Road Investment Services Pty Limited AFSL Issued by: Select Asset Management Limited AFSL Level 10, 2 Bulletin Place Sydney NSW 2000 Australia T: F: E: info@selectfunds.com.au 5

6 United States tax status form for ALL Investors Why this form? The Foreign Account Tax Compliance Act (FATCA) is a United States (US) regulatory requirement that aims to deter tax evasion by US taxpayers. The Australian US Governments (through their tax offices) have an agreement which means we must ask you, you must answer, these questions. Information we gather is reported to the ATO in turn to US tax authorities. For more information visit the ATO Website: If you are unsure of any of the answers please contact a legal, accounting or immigration professional. 1. If you are a super fund If you can tick this box, you don t need to go past this question other than to sign this form at the end: unless you have a GIIN. I am a super fund. If you can tick this box, you don t need to go past this question other than to sign this form at the end: 2. If you are trustee of a testamentary trust If you can tick this box, you don t need to go past this question other than to sign this form at the end: I am a trustee of a testamentary trust. 3. If you are a US individual Whether investing for yourself or as a trustee, if you are an individual that is a US citizen, or a resident of the US for tax purposes, please give details: Name Name Name Not enough room? Write their details clearly attach them. Thanks! For you, sign this form at the end you re done! : THIS IS NOT YOUR TFN. It s short for US Taxpayer Identification Number, one of a number of IDs issued by US authorities it could for example be a US Social Security Number, a US Individual Taxpayer Identification Number or an US Employer Identification Number. US citizen or resident of the US for tax purposes: anyone born in the US who hasn t renounced their US citizenship a US citizen including persons with dual or multiple citizenships US lawful permanent residents eg green card holders 4. If you are a US company or trust Only consider this question if you haven t been able to complete question #2 above. If you are a US company or trust, please give details: or if your status is exempt payee, write exempt payee Thanks! For you, sign this form at the end you re done! a company created in the US, established under the laws of the US or which is a US taxpayer a trust subject to the laws of the US controlled by one or more persons that are citizens or residents of the US 6

7 United States tax status form for ALL Investors 5. If you are a Financial Institution Only consider this question if you haven t been able to complete question #2 0r #3 above. If you are: a Financial Institution, Australian Regulated Trust, or a trust whose trustee is a Financial Institution, please give details: GIIN If you don t have GIIN, tell us your FATCA status: Deemed compliant Foreign Financial Institution Excepted Foreign Financial Institution Registered deemed compliant Foreign Financial Institution Non-participating Foreign Financial Institution Exempt Beneficial Owner Non-Participating Foreign Financial Institution GIIN applied for but not yet issued Non reporting IGA Foreign Financial Institution Other: please detail GIIN: Global Intermediary Identification Number, a unique ID number issued by US tax authorities to non-us financial institutions when they register for FATCA Financial Institution: a depository institution you accept deposits in the ordinary course of a banking or similar business eg a bank a custodial institution a substantial portion of your business (20 %+of gross income) is held in financial assets for the account of others eg a custodian an investment entity this includes entities that trade in financial assets or that are investing, administering, managing funds, money, or certain financial assets on behalf of other persons eg investment companies. Note: if you are a professional trustee, you will usually fall within this category certain prescribed entities eg types of insurance companies that have cash value products or annuities. More information can be found at: Corporations/Information-for-Foreign-Financial-Institutions Australian Regulated Trust: ASIC registered investment schemes other trusts which are registered with the ATO or ASIC but excluding self-managed superannuation funds, APRA regulated superannuation funds, Australian Government or Semi-Government Superannuation Funds pooled super trusts (together Super Entities), unless such Super entities have a GIIN. 6. If you are a public company I am a public company. Thanks! For you, sign this form at the end you re done! Public companies have the status of Active Non-Financial Entity thanks for letting us know. 7. Are you still trying to tell us something? Only consider this question if you haven t been able to complete any question above. Commonly, it is proprietary (or Pty) companies, whether investing themselves or as a trustee, that make it to this last question. We need to know whether or not you are a Passive Non-Financial Entity: don t be put off! It s not too complicated To work this out, consider whether any of the people listed below are a US citizen or resident of the US for tax purposes: anyone that beneficially owns 25% or more of your issued capital? anyone that exercises control over you? by way of determining decisions about the financial operating policy if you are a trust, any beneficiary or settlor? If you ticked any box, please give details: Name Address Name Address Name Address Name Address A Passive Non-Financial Entity is broadly where someone involved with you is caught by the US tax system. A US citizen or resident of the US for tax purposes is defined above. Not enough room? Write their details clearly attach them. OR none of the people listed above are a US citizen or resident of the US for tax purposes Thanks! Whether you completed this question or left it blank, for you, now simply sign this form you re done! Signature Signature 7