Lincoln Australian Growth Fund. Product Disclosure Statement (PDS) Includes Application Form. Issue Date: 28 September 2017

Transcription

1 Lincoln Australian Growth Fund Product Disclosure Statement (PDS) Includes Issue Date: 28 September 2017 Investment Manager: Lincoln Indicators Pty Limited ABN , as Corporate Authorised Representative of Lincoln Financial Group Pty Ltd ABN , AFSL Responsible Entity: Equity Trustees Limited ABN , AFSL

2 Product Disclosure Statement ( PDS ) Contents 1. About Equity Trustees Limited 2 2. How the Lincoln Australian Growth Fund works 3 3. Benefits of investing in the 4 4. Risk of managed investment schemes 4 5. How we invest your money 5 This PDS is prepared for your general information only. It is not intended to be a recommendation by the Responsible Entity, any associate, employee, agent or officer of the Responsible Entity 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 should obtain financial advice tailored to your personal circumstances before making an investment decision. The offer to which this PDS relates is only available to persons receiving the PDS in Australia. 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) (see Section 9 Other important information ). The units in the fund have not been, and will not be, registered under the US Securities Act 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. Phone: Fax: managedinvestments@lincolnindicators.com.au Web: This product disclosure statement ( PDS ) outlines the main features, benefits and risks of the Lincoln Australian Growth Fund (ARSN ) ( Fund ). The Fund is comprised of two classes of units: Lincoln Retail Australian Growth Fund (APIR code: ETL0089AU), which is a retail class; and Lincoln Wholesale Australian Growth Fund (APIR code: ETL0043AU). This PDS is a summary of significant information and contains references to additional information contained in the Lincoln Australian Growth Fund Reference Guide ( Reference Guide ) which forms part of the PDS. You should read and consider the information in the Reference Guide before making a decision to invest in the Fund. The Reference Guide is available on or or you can also request a copy by calling Lincoln on The information contained in the Reference Guide may change between the day you receive this PDS and the day you acquire the product. You must therefore ensure that you have read the Reference Guide current at the date of your application. We will notify you of any changes to the PDS that may have a materially adverse impact on you or other significant events that affect the information contained in this PDS. Any updated information which is not materially adverse may be obtained online at or au/insto or by calling Lincoln on A paper copy of the updated information will be provided free of charge on request. 6. Fees and costs 6 7. How managed investment schemes are taxed 8 8. How to apply 8 9. Other important information 8 1. About Equity Trustees Limited The Responsible Entity: Equity Trustees Limited Equity Trustees Limited ABN , AFSL a subsidiary of Equity Trustees Holdings Limited ABN , a public company listed on the Australian Securities Exchange (ASX: EQT), is the Fund 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 Fund s Responsible Entity are governed by the Fund s constitution ( Constitution ), the Corporations Act and general trust law. Equity Trustees has delegated the investment management functions to Lincoln Indicators Pty Ltd which will make investment decisions in relation to the Fund. Equity Trustees has appointed a custodian to hold the assets of the Fund. The Custodian has no supervisory role in relation to the operation of the Fund and is not responsible for protecting your interests. The Investment Manager: Lincoln Indicators Pty Ltd Lincoln Indicators Pty Ltd ( Lincoln or Investment Manager ) is the investment manager of the Fund. Lincoln also separately manages the Lincoln Australian Income Fund. As a boutique fund manager, Lincoln specialises in identifying attractive Australian companies within our professionally managed funds. The funds managed by Lincoln are backed by Lincoln s academically-developed Financial Health methodology as well as Lincoln s experienced and dedicated team of investment professionals. Founded in 1984 by esteemed academic and Olympian Dr Merv Lincoln, Lincoln was established as a consultancy business. Dr Lincoln s son Tim Lincoln, joined the business in 1991 and became Managing Director of Lincoln in In 2003 Lincoln s managed investment business was established originally with an Investor Directed Portfolio Service ( IDPS ) and was replaced in 2005 with the Lincoln Australian Growth Fund for wholesale investors. In 2007 the retail investors were invited to invest. Today Tim Lincoln oversees the managed investments business alongside the managed investments team which has over 50 years experience in financial services. 2

3 2. How the Lincoln Australian Growth Fund works The is a registered managed investment scheme. The Fund is comprised of two classes of units: Lincoln Wholesale Australian Growth Fund and Lincoln Retail Australian Growth Fund, which is a retail class. The Fund is governed by the Constitution. The Fund comprises of assets which are acquired in accordance with the Fund s investment strategy. You will acquire either wholesale or retail units in the Fund when you invest. Subject to the rights, obligations and restrictions of a class, each unit represents an equal undivided beneficial interest in the assets referable to the relevant class of the Fund subject to liabilities, but does not give you an interest in any particular property of the Fund. If you invest in the Fund through an IDPS (as defined in the Reference Guide) you will not become a unitholder in the Fund. The operator or custodian of the IDPS will be the unitholder entered in the Fund s register and will be the only person who is able to exercise the rights and receive benefits of a unitholder. Please direct any queries and requests relating to your investment to your IDPS Operator. Unless otherwise stated, the following explanation applies to direct investors. Applying for units Investors can acquire units by completing an application form. The minimum investment amount for the Lincoln Wholesale Australian Growth Fund is $250,000 and the Lincoln Retail Australian Growth Fund is $20,000. The price at which units are acquired is determined in accordance with the Constitution ( Application Price ). The Application Price on a Business Day, is generally, equal to the net asset value of the class, divided by the number of units on issue and adjusted for transaction costs ( Buy Spread ). The Application Price will vary for each class as the market value of assets of the class rise or fall. Making additional investments You can make additional investments in the Fund at any time by sending us your additional investment amount together with a current completed application form. You can also invest on a monthly basis via the Savings Plan for as little as $250 per month. The minimum additional investment into the Lincoln Wholesale Australian Growth Fund is $5,000 and the Lincoln Retail Australian Growth Fund is $1,000. Distributions 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. The Fund usually distributes half yearly at the end of June and December. Distributions are calculated as at the last day of each period, and are normally paid to investors as soon as practicable after the distribution calculation date. Equity Trustees may amend the distribution frequency without notice. 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 Access to your money Investors in the Fund can generally withdraw their investment by completing a written request to withdraw from the Fund and mailing it to: Link Market Serivices, PO Box 3721, Rhodes NSW 2138 or sending it by to lincoln@linkmarketservices.com.au. The minimum withdrawal amount for both the Lincoln Wholesale Australian Growth Fund and the Lincoln Retail Australian Growth Fund is $1,000. Once we receive your withdrawal request, we may act on your instruction without further enquiry if the instruction bears your account number or investor details and your (apparent) signature(s), or your authorised signatory s (apparent) signature(s). The price at which units are withdrawn is determined in accordance with the Constitution ( Withdrawal Price ). The Withdrawal Price for units of the Lincoln Retail Australian Growth Fund and Lincoln Wholesale Australian Growth Fund, is generally, equal to the net asset value of the Fund referable to that class, divided by the number of units on issue in that class, and adjusted for transaction costs ( Sell Spread ). Whilst 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 your nominated bank account. However, the Constitution allows Equity Trustees to make payment up to 30 days after receipt of a withdrawal request (which may be extended by a further 30 days in certain circumstances). Equity Trustees can deny a withdrawal request in certain circumstances which will mean that you will not be able to withdraw your funds within the usual withdrawal period. These circumstances include when accepting the request would cause the Fund to cease being liquid or where the Fund is not liquid (as defined in the Corporations Act). If you are an indirect investor, you need to provide your withdrawal request directly to your IDPS Operator. The time to process a withdrawal request will depend on the particular IDPS Operator. 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 the Fund s 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. Further information You should read the important information in the Reference Guide Investing in a Lincoln Fund, Direct Debit Requests, Managing your investment and Redeeming your investment sections, about: application cut-off times; Right to reject applications; Direct Debit Requests; authorised signatories; investments through an IDPS; minimum balance; redemption cut-off times; and redemption terms before making a decision. Go to the Reference Guide at or The material relating to these matters may change between the time when you read this PDS and the day when you acquire the product. 3

4 Product Disclosure Statement ( PDS ) 3. Benefits of investing in the Lincoln Australian Growth Fund Access to sharemarket opportunities investing in the Fund will provide exposure to a range of listed Australian companies, which an individual investor with limited funds for investment may not otherwise be able to obtain. This diversification is intended to reduce risk and exposure and increases stability. Professional investment expertise investing in the Fund enables investors to take advantage of the team of research and investment professionals at Lincoln. Your investment will be expertly managed by Australian equity specialists who bring a wealth of experience to the investment management process. Freedom from administrative burden investing in the Fund helps to free investors from the burden of ongoing paperwork and regular monitoring required when directly investing in sharemarkets. Investors will be provided with consolidated, comprehensive reports on the performance of the classes of units of the Fund. Income from your investment as well as seeking capital growth through an increase in unit prices, the Fund aims to provide investors with an income payment in the form of a distribution half yearly. Fees the Fund does not charge establishment, contribution or exit fees. Time efficient for investors who would like to outsource the work involved in direct investing and still access Lincoln s fundamental Financial Health methodology. 4. Risks of managed investment schemes 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, have different levels of investment risk and the return achieved by each will vary accordingly. Higher risk assets, such as Australian shares, on average produce higher long-term returns than lower risk investments. An investment in the Fund involves risk and neither the performance of the Fund nor the security of your investment is guaranteed by the Responsible Entity or the Investment Manager. The value of your investment in the Fund will vary and there is a risk that investors will lose some of their investment. The level of returns will vary, and future returns may differ from past returns. An acceptable level of risk will vary for each investor depending on a number of factors, the investor s age, how long the investor intends to invest in the Fund, whether the investor has a diversified portfolio and the investor s tolerance to risk. We recommend you talk to an adviser about the risks involved in investing in the Fund and how they might impact on your individual financial circumstances. Company specific risk There may be instances where the value of a company s securities will fall because of company specific factors (for example, where a company s major product is subject to a product recall). The value of a company s securities can also vary because of changes to management, product, distribution or the company s business environment. Derivatives risk Generally, in the case of Derivatives, fluctuations in price will reflect movements in the underlying assets, reference rate or index to which the Derivatives relate. The use of Derivatives to hedge the risk of movements in an underlying asset, reference rate or index involves basis risk, which refers to the possibility that Derivatives may not move perfectly in line with the underlying asset, reference rate or index. As a consequence, Derivatives cannot be expected to perfectly hedge the risk of the underlying asset, reference rate or index. 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 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; and significant volatility in prices. Fund risk As with all managed funds, there are risks particular to the Fund, including the possibility it could terminate, fees and expenses could change and the Responsible Entity and/or the Investment Manager may be replaced. There is also a risk that investing in the Fund may give different results than investing directly in the underlying shares. This might occur because of income or capital gains accrued in the Fund and the consequence of redemptions by other investors. Interest rate risk Changes in official interest rates can directly and indirectly impact on investment returns. Generally, an increase in interest rates has a contractionary effect on the state of the economy and the valuation of securities. For example, rising interest rates can have a negative impact on a company s value as increased borrowing costs may cause earnings to decline. As a result, the company s share price may fall. Investment selection risk The Investment Manager may make poor investment decisions resulting in substandard returns (for example where the Investment Manager invests in a company that significantly underperforms relative to the sharemarket). This risk is mitigated to some extent by the knowledge and experience of the Investment Manager. Legal risk There is a risk that laws, including tax laws or laws affecting registered managed investment schemes, might change or become difficult to enforce. This risk is generally higher in emerging markets (in which the Fund does not invest). Liquidity risk There may be times when investments may not be readily realised (for example, in a falling market where some traded securities may become less liquid). However, trading volumes of investments are generally sufficient to satisfy liquidity requirements when necessary. The Investment Manager attempts to mitigate the liquidity risk factor by ensuring that the Fund has sufficient cash exposure to meet liquidity requirements. Note that neither the Responsible Entity nor the Investment Manager guarantees the liquidity of the Fund s investments. Market risk Changes in legal and economic policy, political events, technology failure, 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 investment in the Fund. Regulatory risk This is the risk that domestic laws or regulations are changed adversely or that regulatory supervision of transactions and reporting is performed by the Investment Manager at less than an appropriate standard. The Investment Manager aims to manage this risk by regularly and closely reviewing changes in the regulatory environment. 4

5 5. How we invest your money The Fund invests in a range of industrial, financial and resource shares listed on the Australian Securities Exchange ( ASX ). Derivatives, such as futures, options, swaps and forward rate agreements will not be used to gear the Fund s assets or for speculative purposes. The Fund may only use Derivatives as an alternative to direct purchases or sales, or to manage risk associated with market prices. You should consider the likely investment return, the risk and your investment timeframe when choosing whether to invest in the Fund. The table below shows a summary of the available investment option: Investment objective To outperform the S&P / ASX 300 Accumulation Index ex top 20 over the medium to long term, after fees and expenses, with income distributed half-yearly. Benchmark S&P/ASX 300 Accumulation Index ex top 20. Minimum suggested timeframe Risk level of the Fund Investor suitability Asset allocation The minimum suggested investment time frame for the Fund is at least 5 years. High. There is a risk investors may lose some or all of their investment. Higher risk investments tend to fluctuate in the short term but can produce higher returns than lower risk investments over the long term. The Fund is designed to suit investors seeking a medium to long term investment that provides the potential for capital growth with some income. The asset allocation benchmark for the Fund is stated in the table below. While the benchmark reflects the intended asset allocation at any time, from time to time prevailing market conditions or liquidity requirements may see the Fund alter its asset allocation. Benchmark Allocation* Australian Shares 100% 92.07% Cash 0% 7.93% Investment style and approach Labour, environmental, social and ethical considerations Fund performance The Lincoln investment process involves the assessment of the following factors: The financial health of the business a measure of a company s quality which is demonstrated in its financial accounts (bank and insurance companies are deemed healthy due to their more stringent regulatory requirements). A set of quantitative and qualitative measures are also assessed including: management of the company; its profitability; its relative share price value; and overall business performance. The final investment decision is based on a combination of quantitative scores and relevant qualitative factors such as recent company developments, changes in earnings outlook and the likelihood of maintaining quantitative scores. Equity Trustees and Lincoln do not specifically take into account labour standards or environmental, social or ethical considerations for the purposes of selecting, retaining or realising investments. However, where earnings sustainability of the companies that the Fund invests in may be impacted by factors such as poor labour standards or environmental, social or ethical matters, investment holdings will be reviewed in light of those issues and may be removed from the Fund, or the Fund s exposure may be reduced. Fund performance is available from or by calling Lincoln on Please note that due to the historical nature of performance information and the volatility of returns, future returns may differ from past returns. Investment style and approach *As at 31/08/2017. Asset allocations can change over time. The unique Lincoln research methodology (as documented by Dr Merv Lincoln) involves rigorous analysis of company fundamentals to assess each prospective investment s financial health and strength. Drawing on both quantitative and qualitative research, Lincoln screens a broad range of shares listed on the ASX, including trusts that invest in listed shares. The selection of individual shares for the Fund is guided primarily by Lincoln s unique investment methodology. Lincoln aims to invest directly in shares and indirectly by investing in trusts that invest in shares. Lincoln targets financially healthy companies with strong management earnings and growth, thereby exhibiting long-term growth potential. This reflects the philosophy that quality companies demonstrate their potential through performance and Financial Health. continued Further information You should read the important information in the Reference Guide How we invest your money for more information on: investments in the Fund; compliance plan; and indemnity; before making a decision. Go to the Lincoln Reference Guide at or Material relating to these matters may change between the time when you read this PDS and the day when you acquire the product. 5

6 Product Disclosure Statement ( PDS ) 6. Fees and costs 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 $ 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. The information in the following table can be used to compare costs between this and other simple managed investment schemes. Fees and costs may be paid directly from your investment or deducted from investment returns. For information on how managed investment schemes are taxed please see Section 7 of this PDS. Type of fee or cost Fees when your money moves in or out of the Fund Lincoln Retail Australian Growth Fund Amount Establishment fee Nil Nil Contribution fee Nil Nil Lincoln Wholesale Australian Growth Fund Additional explanation of fees and costs What do the Management costs pay for? Can the fees change? 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 the NAV of the Fund are 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. 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 at no additional charge to you. The management costs shown above do not include extraordinary expenses (if they are incurred in future) such as litigation costs, the costs of convening unitholder meetings and other costs. 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). Yes, all fees can change without investor consent, subject to the maximum fee amounts specified in the Constitution. Equity Trustees has 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. In most circumstances, the Constitution defines the maximum fees that can be charged for fees described in this PDS. Expense recoveries may change without notice, for example, when it is necessary to protect the interests of existing members and if permitted by law. Withdrawal fee Nil Nil Exit fee Nil Nil Management costs1 The fees and costs for managing your investment 1.75% p.a. of the value of your units in the Fund2 0.95% p.a. of the value of your units in the Fund2 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. 6

7 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 0.35% upon entry and 0.35% upon exit. The dollar value of these costs based on an application or a withdrawal of $20,000 is $70 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 bidoffer 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 0.58% of the NAV of the Fund, of which 31% of these transaction costs were recouped via the Buy/Sell Spread, resulting in a net transactional cost to the Fund of 0.40% p.a. However, such costs for future years may differ. Example of annual fees and costs for the Fund This table gives an example of how the fees and costs for this managed investment product can affect your investment over a 1 year period. You should use this table to compare this product with other managed investment products. Example 1 Example Lincoln Retail Australian Growth Fund Contribution fees PLUS Management costs EQUALS Cost of fund Nil 1.75% p.a. Example 2 Example Lincoln Wholesale Australian Growth Fund Contribution Nil fees PLUS Management costs EQUALS Cost of fund 0.95% p.a. BALANCE OF $50,000 WITH A CONTRIBUTION OF $5,000 DURING THE YEAR For every additional $5,000 you put in, you will be charged $0. And for every $50,000 you have in the Fund, you will be charged $ each year. 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, you would be charged fees from: $875.00** What it costs you will depend on the fees you negotiate. BALANCE OF $250,000 WITH A CONTRIBUTION OF $5,000 DURING THE YEAR For every additional $5,000 you put in, you will be charged $0. And for every $250,000 you have in the Fund, you will be charged $2, each year. If you had an investment of $250,000 at the beginning of the year and you put in an additional $5,000 during that year, you would be charged fees from: $2,375.00** What it costs you will depend on the fees you negotiate. ** This example assumes the $5,000 contribution occurs at the end of the 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. If you have consulted a financial adviser, you may pay additional fees. You should refer to the Statement of Advice or Financial Services Guide provided by your financial adviser in which details of the fees are set out. ASIC provides a fee calculator on which you may use to calculate the effects of fees and costs on your investment in the Fund. Further information You should read the important information in the Reference Guide under Fees and costs about the fees and costs associated with investing in the Fund before making an investment decision. Go to the Reference Guide which is available at The material relating to these matters may change between the time when you read this PDS and the day when you acquire the product. 7

8 Product Disclosure Statement ( PDS ) 7. How managed investment schemes are taxed Warning: Investing in a registered managed investment scheme (such as the Fund) is likely to have tax consequences. You are strongly advised to seek your own professional tax advice about the applicable Australian tax (including income tax, GST and duty) consequences and, if appropriate, foreign tax consequences which may apply to you based on your particular circumstances before investing in the Fund. The Fund is an Australian resident for tax purposes and does not pay tax on behalf of its investors. Australian resident investors are assessed for tax on any income and capital gains generated by the Fund to which they become presently entitled or, where the Fund has made a choice to be an Attribution Managed Investment Trust, are attributed to them. 8. How to apply To invest please complete the application form accompanying this PDS and either; attach your cheque or money order payable to Equity Trustees Limited, or Direct credit funds by electronic transfer, details are in the and send your application form to: Link Market Services Limited PO Box 3721 Rhodes NSW 2138 Please note that cash cannot be accepted. 9. Other important information Consent Lincoln Indicators Pty Ltd has given and, at the date of this PDS, has not withdrawn its written consent: to be named in this PDS as the Investment Manager of the Fund; and to the inclusion of the statements made about them and the Fund in the form and context in which they appear. Lincoln has not otherwise been involved in the preparation of this PDS and has not caused or otherwise authorised the issue of this PDS. Lincoln and its employees and officers do not accept any responsibility arising in any way for errors or omissions from this PDS, other than in relation to the statements for which it has provided its consent. Link Market Services Limited has given and, at the date of this PDS, has not withdrawn its written consent to be named in this PDS as the registrar of the Fund. Indirect Investors Equity Trustees authorises the use of this PDS by investors who wish to access the Fund through an IDPS (as that term is defined in the Reference Guide). Further information You should read the important information in the Reference Guide Investing in a Lincoln Fund, Enquiries and complaints and Other important information sections, about: Cooling-off rights; Constitution for the Fund; Enquiries and complaints; Joint account operation; Privacy; Non-listing of units; Investor s liability; Termination of the Fund; Anti-Money Laundering; Foreign Account Tax Compliance Act; and Common Reporting Standards. before making a decision. Go to the Reference Guide at or The material relating to these matters may change between the time when you read this PDS and the day when you acquire the product. 8

9 Page 1 This (this form) is part of the Product Disclosure Statement dated 28 September 2017 ( PDS ) relating to units in the (Fund) issued by Equity Trustees Limited (Equity Trustees) (ABN , AFSL ). The 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 must at the same time and by the same means give the other person access to the PDS. Lincoln will provide you with a copy of the PDS and the on request without charge. US Persons: This offer is not open to any US Person. Please refer to the PDS and Reference Guide for further information. General Instructions: 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(s) must print, complete and sign this form. Please ensure you complete ALL relevant sections (provided in the table in Section 1) before submitting this form. You MUST provide all the ID requirements as outlined in the table in Section 1. Please see page 2 of this form for details on how to certify your ID documents. You MUST complete the United States Tax form (FATCA) even if you are not a US citizen or resident for tax purposes (Section 9). If you are a Financial Planner or Adviser and are completing this form on behalf of your client then please ensure you also complete Section 7 of this form. If you would like to give a third party authority on this investment then please ensure you complete Section 6 of this form. If you make an error while completing this form, do not use correction fluid. Cross out your mistakes and initial your changes. Keep a photocopy of your completed for your records. Communications will be ed to you so please ensure you provide a current address. If you have any queries, please contact us on or managedinvestments@lincolnindicators.com.au. Lodging the form: Please send the completed application form, along with your payment (if it s a cheque) and documents that verify your ID to: LINK Market Services Limited PO Box 3721 Rhodes NSW 2138 Australia Contacting the Fund Investment Manager: Lincoln Indicators Pty Ltd Ph managedinvestments@lincolnindicators.com.au

10 Product Disclosure Statement ( PDS ) Page 2 Anti-Money Laundering & Counter Terrorism Financing 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. Please note: 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 Certified ID documents: All certified ID documents provided must be original certified documents. This means that you must provide the copy that is actually signed by the certifier and it must be sent by post (cannot be ed or faxed) with your application. Who can certify documents? Police Officer Medical Practitioner Pharmacist Judge Lawyer Justice of the Peace Notary Public Magistrate Agent of the Australian Postal Corporation who is in charge of an office supplying postal services to the public (eg Post Office employee) Full time employee of financial service company (including a bank) or holder of an Australian financial services license (must have 2 or more consecutive years experience) A Registrar or Deputy Registrar of a court A member of the Institute of Chartered Accountants in Australia (CPA or National Institute of Accountants membership, with 2 or more consecutive years of membership)

11 Page 3 Section 1 Introduction Do you have an existing investment in the? YES please contact Lincoln Indicators for a different application form. NO only complete the sections relevant to you, as indicated below: Name the account will be held in (eg: J Smith ATF Smith Family Super Fund): Account type Select One Account Type Sections to Complete Starting Page Number Identification Requirements Individual(s) Each individual investor, individual trustee, partner, beneficial owner, or individual agent or authorised representative must provide one certified copy of the following primary photographic ID: A current Australian driver s licence (or foreign equivalent) that includes a photo and signature An Australian passport (not expired more than 2 years previously) An identity card issued by a State or Territory Government that includes a photo A current passport (or similar) issued by a foreign government or the United Nations (UN) (or an agency of the UN) that includes your photograph and signature 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 (certified copy) Australian birth certificate Australian citizenship certificate Pension card issued by Department of Human Services Column B 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 Partnership(s) Provide identification as outlined next to Individuals for each partner(s) and beneficial owner(s) of the Partnership and one of the following: A certified copy or certified extract of the partnership agreement. A notice issued by the Australian Taxation Office ( ATO ) within the last 12 months. An original or certified copy of a certificate of registration of business name issued by a government agency in Australia. A certified copy or certified extract of minutes of a partnership meeting. All the above must show the full name of the partnership. 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. table continued over

12 Product Disclosure Statement ( PDS ) Page 4 Account type continued Select One Account Type Sections to Complete Starting Page Number Identification Requirements Trusts (e.g. SMSF s) Registered Managed Investment Scheme, Regulated Superannuation Fund (including a Self-Managed Super Fund), Government Superannuation Fund or a trust registered with the Australian Charities and Not-for-profit Commission (ACNC). Provide identification as outlined next to Individuals for each Individual Trustee(s) or identification as outlined next to Australian Companies, Foreign Companies or Agent/ Authorised Representative for Corporate Trustee(s) and provide one of the following: A copy of the company search of the relevant regulator s website e.g. APRA, ASIC or the ATO database 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 All the above must show the Trust s full name and type (i.e. registered managed investment scheme, regulated superannuation fund (including a self- managed super fund) or government superannuation fund). Other Trusts (unregulated) (e.g. Family Trusts) Must provide identification as outlined next to Individuals for each Individual Trustee(s) or identification as outlined next to Australian Companies, Foreign Companies or Agent/ Authorised Representative for Corporate Trustee(s) and provide identification as outlined next to Individuals for each beneficial owner of the trust and in relation to the Trust, one of the following: A certified copy or certified extract of the Trust Deed Annual report or audited financial statements A certified copy of a notice issued by the ATO within the previous 12 months Signed meeting minutes All the above must show the full name of the Trust, its trustees, the appointer (the person authorised to appoint or remove trustees) and the settlor of the Trust (if any). A beneficial owner of a trust is any individual who has a 25% or more interest in the trust or controls the trust. This includes the appointor of (who holds the power to appoint or remove the trustees of the trust), the settlor of, and the beneficiaries with at least a 25% interest in, a trust. Australian Companies Must provide identification as outlined next to Individuals for each beneficial owner(s), and for the Company provide one of the following (must clearly show the Company s full name, type (private or public) and ACN): 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; A certificate of Company Registration; 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 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). Foreign Companies Provide identification as outlined next to Individals for each beneficial owner/s, and in relation to the foreign company, one of the following: A certified copy of the company s Certificate of Registration or incorporation issued by ASIC or the equivalent 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. 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).

13 Page 5 You must also complete the following if you are a third party or if you would like to appoint a third party authority: 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. Select One Account Type Sections to Complete Starting Page Number Identification Requirements Authorised representative or agent Power of Attorney 6 12 Individual agent must provide identification as outlined in this table next to Individuals on page 2. Corporate agent must provide identification as outlined next to Australian Companies or Foreign Companies in the table above You must attach an original certified copy of a valid Power of Attorney. The document must be signed by the applicant/investor and must be current and complete. The document must permit you to transact on behalf of the applicant/investor (so it must be a financial or enduring Power of Attorney). Financial Adviser 7 13 Corporate agent must provide identification as outlined next to Foreign Companies or Australian Companies in the table above. Section 2 Individual(s) or Individual Trustee(s) 2.1 Type of investor Tick one box only and complete the specified parts of this section. Individual complete 2.2 Jointly with another individual(s) complete 2.2, 2.3 and 2.5 Individual trustee for a trust complete 2.2 and 2.3 (also complete section 4) Sole Trader complete 2.2 and 2.4 Individual trustee for an individual complete 2.2, 2.3 and 2.5 (if there is more than one individual trustee) 2.2 Investor 1 Title Given Name(s) Surname Telephone Number (including Country Code) (daytime) Date of Birth (DDMMYY) Tax File Number (TFN) or exemption code Reason for TFN Exemption

14 Product Disclosure Statement ( PDS ) Page 6 Street Address (not a PO Box) Unit number Street number Street name Suburb State Postcode 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) (daytime) 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 Postcode Country of Birth What is your occupation?