Managed Accounts Investment Menu Dated 3 April 2018 This Investment Menu is issued by Praemium Australia Limited Separately Managed Accounts ARSN 114 818 530 ABN 92 117 611 784 Australian Financial Services Licence No. 297956 The information in this document forms part of the following Product Disclosure Statement Managed Accounts Product Disclosure Statement (PDS) dated 3 April 2018 1
Managed Accounts CONTENTS Single Asset Model Portfolios 3 Managed Funds 3 Model Portfolio Managers and Model profiles 4 Diversified Income 5 Property 6 Global Shares 7 Cash 8 High Growth 9 Growth 10 Balanced 11 Conservative 12 Defensive 13 Australian Shares - Core 14 Australian Shares - High Yield 15 Australian Shares - Small Cap 16 Contact details for enquiries about the Managed Accounts General number for enquiries: 1800 571 881 Email enquiries: support@praemium.com.au The name and contact details of the Responsible Entity are: Praemium Australia Limited Level 19, 367 Collins Street Melbourne VIC 3000 PO Box 322 Collins Street West MELBOURNE VIC 8007 Email: support@praemium.com.au Website: www.praemium.com.au 2
Single Asset Model Portfolios Managed Funds Model Code* Model Portfolio Name APIR Code IF0100 Morningstar High Growth Real Return Fund (B) INT0043AU IF0101 Morningstar Growth Real Return Fund (B) INT0039AU IF0102 Morningstar Balanced Real Return Fund (B) INT0029AU IF0103 Morningstar Moderate Real Return Fund (B) INT0035AU * These Model Portfolios invest in funds which have a fee disclosed in the issuer s PDS. For more information please visit the issuer s website which can be accessed by clicking on the Model Portfolio Names above. 3
Model Portfolio Managers and Model profiles Securities Australia Pty Ltd Securities Australia Pty Ltd ( ) (ABN 47 097 797 049; AFSL 236523) is recognised as a leading, independently owned wealth management dealer group with an extensive network of Financial Advisers. founder had the vision to provide a commercially friendly financial services environment that met the total investment and financial planning needs of consumers. After being associated with a large financial institution for many years, the business founders saw that these larger institutions were overlooking many of the important financial advice needs of consumers. was developed to fill this void and offers Financial Advisers and their clients the freedom of choice to ensure their financial products correctly align with their lifestyle goals and strategic objectives. Morningstar Investment Management Australia Limited Morningstar Investment Management Australia Limited (ABN 54 071 808 501; AFSL 228986) ( Morningstar ) is a leading provider of asset allocation, portfolio construction and investment research services with over 35 years experience in the United States, Australia and other international markets. Morningstar advises and manages funds for superannuation funds, institutions, platform distributors, financial advisers and individuals. Morningstar s disciplined investment approach delivers independent, cost effective and holistic solutions for our clients helping them reach their financial goals. This long-term, valuation driven approach is underpinned by an emphasis on preserving capital and undertaking comprehensive fundamental analysis of global asset classes and securities. 4
Model Portfolio Profile: IF0001 Diversified Income Investment objective: To achieve a consistent level of income at or above prevailing cash levels and the potential for long term capital growth, by investing in a diversified portfolio that has an emphasis on income producing assets. The Diversified Income Model Portfolio is designed for investors whose main objective is to generate consistent income with the potential for capital growth over the long term. They are prepared to accept a low to moderate risk of capital loss to achieve this objective. An actively managed diversified portfolio of securities across both income oriented asset classes, such as cash and fixed interest securities, and growth asset classes such as Australian equities, property and global securities. In general, the portfolio s long term average exposure will be around 60% income assets and 40% growth assets, however the allocations will be actively managed within the allowable ranges depending on market conditions. CPI plus 2% p.a. 25-80 0.61% p.a. Indirect Cost Ratio (approx) 0.14% p.a. Australian Shares 0 40 Global Shares 0 40 Australian Property Shares 0 25 Global Property Shares 0 25 Global Infrastructure 0 25 Alternatives 0 20 Australian Bonds 0 40 Global Bonds (hedged) 0 40 Global Inflation linked (hedged) 0 20 Cash 0 80 5
Model Portfolio Profile: IF0002 Property Investment objective: To achieve a mixture of capital growth and income by investing predominantly in a portfolio of ASX listed Australian Real Estate Investment Trusts. The Property Model Portfolio is designed for investors whose main objective is to achieve capital and income growth through predominantly ASX listed Australian Real Estate Investment Trusts. They are prepared to accept a high risk of capital loss to achieve this objective. This is an actively managed diversified portfolio of Australian REITs and property with a greater focus on Australian commercial property rental income and stronger balance sheet strength. S&P/ASX 200 A-REITS Accumulation Index 2-15 0.39% p.a. Indirect Cost Ratio (approx) 0.00% p.a. Australian Equities 0 10 Property Securities 90 100 Cash 0 10 6
Model Portfolio Profile: IF0003 Global Shares Investment objective: To achieve capital growth by investing in a diversified portfolio of ASXlisted ETFs and Managed Funds based on portfolios of international equities. The Global Shares Model Portfolio is designed for investors whose main objective is to achieve capital growth through international equities. They are prepared to accept a high risk of capital loss to achieve this objective. This is an actively managed portfolio of ASX-listed ETFs and Managed Funds with global equities exposure. MSCI ACWI Accumulation Index (Net Dividends Reinvested) 2-40 0.65% p.a. Indirect Cost Ratio (approx) 0.36% p.a. International Shares 90 100 Cash 0 10 7
Model Portfolio Profile: IF0004 Cash Investment objective: To deliver a consistent income return, whilst preserving the underlying capital. The Cash Model Portfolio is designed for investors whose main objective is to achieve consistent income return while preserving underlying capital. A lower risk of capital loss can be expected, but overall returns are also likely to be lower. This is a defensive portfolio of quality cash and fixed income investments. UBS Australia Bank Bill Index 1-20 0.28% p.a. Indirect Cost Ratio (approx) 0.08% p.a. Fixed Income/Debt 0 90 Cash 10 100 8
Model Portfolio Profile: IF0005 High Growth Investment objective: To achieve capital growth through investing in a diversified portfolio of predominantly growth asset classes. The High Growth Model Portfolio is designed for investors whose main objective is to accumulate assets by targeting capital growth over the long term. They are prepared to accept a moderate to high risk of capital loss to achieve this objective. This is an actively managed diversified portfolio of securities across both growth asset classes such as Australian equities, property and global securities; and income oriented asset classes, such as cash and fixed interest securities. In general, the portfolio s long term average exposure will be around 95% growth assets and around 5% income assets, however the allocations will be actively managed within the allowable asset allocation ranges depending on market conditions. CPI plus 5% p.a. 25-80 0.77% p.a. Indirect Cost Ratio (approx) 0.20% p.a. Australian Shares 0 70 Global Shares 0 70 Australian Property Shares 0 30 Global Property Shares 0 30 Global Infrastructure 0 20 Alternatives 0 20 Australian Bonds 0 10 Global Bonds (hedged) 0 10 Global Inflation Linked 0 10 Cash 0 20 9
Model Portfolio Profile: IF0007 Growth Investment objective: To achieve capital growth through investing in a diversified portfolio of growth and income asset classes, with an emphasis on growth asset classes. The Growth Model Portfolio is designed for investors whose main objective is to achieve balanced returns to meet their medium to long term financial goals. They are prepared to accept a medium risk of capital loss to achieve this objective. This is an actively managed diversified portfolio of securities across: growth asset classes such as Australian equities, property and global securities; and income-oriented asset classes, such as cash and fixed interest securities. In general, the portfolio s long-term average exposure will be around 70% growth assets and around 30% income assets, however the allocations will be actively managed within the allowable asset allocation ranges depending on market conditions. CPI plus 3.5% p.a. 25-80 0.66% p.a. Indirect Cost Ratio (approx) 0.20% p.a. Australian Shares 0 60 Global Shares 0 60 Australian Property Shares 0 25 Global Property Shares 0 25 Global Infrastructure 0 20 Alternatives 0 25 Australian Bonds 0 20 Global Bonds (hedged) 0 20 Global Inflation Linked (hedged) 0 15 Cash 0 45 10
Model Portfolio Profile: IF0008 Balanced Investment objective: To achieve a moderate amount of capital growth along with a consistent income return, by investing in a diversified portfolio of growth and income assets. CPI plus 2.5% p.a. 25-80 The Balanced Model Portfolio is designed for investors whose main objective is to maintain stable returns. They are prepared to accept a low to medium risk of capital loss to achieve this objective. Indirect Cost Ratio (approx) 0.61% p.a. 0.18% p.a. This is an actively managed diversified portfolio of securities across: growth asset classes such as Australian equities, property and global securities; and income-oriented asset classes, such as cash and fixed interest securities. In general, the portfolio s long term average exposure will be around 50% growth assets and around 50% income assets, however the allocations will be actively managed within the allowable asset allocation ranges depending on market conditions. Australian Shares 0 45 Global Shares 0 45 Australian Property Shares 0 20 Global Property Shares 0 20 Global Infrastructure 0 15 Alternatives 0 25 Australian Bonds 0 30 Global Bonds (hedged) 0 30 Global Inflation Linked (hedged) 0 20 Cash 0 55 11
Model Portfolio Profile: IF0009 Conservative Investment objective: To achieve a consistent income return and a modest amount of capital growth, by investing in a diversified portfolio of income and growth asset classes, with an emphasis on income asset classes. CPI plus 1% p.a. 25-80 The Conservative Model Portfolio is designed for investors whose main objective is stability of income and capital protection. A lower risk of capital loss can be expected, but overall returns are also likely to be lower. Indirect Cost Ratio (approx) 0.55% p.a. 0.13% p.a. This is an actively managed diversified portfolio of securities across: income oriented asset classes, such as cash and fixed interest securities; and growth asset classes such as Australian equities, property and global securities. In general, the portfolio s long term average exposure will be around 70% income assets and around 30% growth assets, however the allocations will be actively managed within the allowable asset allocation ranges depending on market conditions. Australian Shares 0 30 Global Shares 0 30 Australian Property Shares 0 15 Global Property Shares 0 15 Global Infrastructure 0 10 Alternatives 0 25 Australian Bonds 0 30 Global Bonds (hedged) 0 30 Global Inflation Linked (hedged) 0 20 Cash 10 70 12
Model Portfolio Profile: IF0010 Defensive Investment objective: To achieve a consistent income return by investing in a diversified portfolio of predominantly income asset classes, with a small proportion of growth asset classes. CPI plus 0.75% p.a. 2-80 The Defensive Model Portfolio is designed for investors whose main objective is stability of income and capital protection. A lower risk of capital loss can be expected, but overall returns are also likely to be lower. Indirect Cost Ratio (approx) 0.55% p.a. 0.13% p.a. This is an actively managed diversified portfolio of securities across both income oriented asset classes, such as cash and fixed interest securities, and growth asset classes such as Australian equities, property and global securities. In general, the portfolio s long term average exposure will be around 85% income assets and around 15% growth assets, however the allocations will be actively managed within the allowable ranges depending on market conditions. Australian Shares 0 15 Global Shares 0 15 Australian Property Shares 0 10 Global Property Shares 0 10 Global Infrastructure 0 10 Alternatives 0 20 Australian Bonds 0 65 Global Bonds (hedged) 0 65 Global Inflation Linked (hedged) 0 30 Cash 10 90 13
Model Portfolio Profile: IF0011 Australian Shares - Core Investment objective: To outperform the S&P/ ASX 200 Accumulation Index over a complete cycle. The Australian Shares Core Model Portfolio is designed for investors seeking a portfolio of Australian equities aimed at providing capital growth as well as tax effective income via franked dividends. This is an actively managed concentrated portfolio consisting of our best ideas in the S&P/ASX 200 Index. Portfolio holdings primarily consist of companies trading at attractive discounts to intrinsic value relative to the portfolio universe according to our research team. All else equal, we also strive to own companies with economic moats as high quality companies tend to outperform with reduced volatility. Total return from the Core Portfolio will tend to be driven by both capital appreciation and dividend yield with the mix dependent on the opportunities available. S&P/ASX 200 Accumulation Index 15-30 0.65% p.a. Indirect Cost Ratio (approx) 0.00% p.a. Australian Equities 90 100 Cash 0 10 14
Model Portfolio Profile: IF0012 Australian Shares - High Yield Investment objective: To outperform the S&P/ ASX 200 Accumulation Index over a complete cycle. The Australian Shares High Yield Model Portfolio is designed for investors seeking a reliable, above-market average income yield with moderate long term capital growth relative to that of the performance benchmark. This is an actively managed concentrated portfolio consisting of our best income ideas in the S&P/ASX 200 Index. Portfolio holdings primarily consist of companies with greater than average sustainable net yield expectations and trade at attractive discounts to intrinsic value relative to the portfolio universe according to our research team. All else equal, we also strive to own companies with economic moats because high quality companies tend to outperform with reduced volatility. Total return will tend to be driven more by income than capital appreciation, although both are of course desirable. S&P/ASX 200 Accumulation Index 15-30 0.65% p.a. Indirect Cost Ratio (approx) 0.00% p.a. Australian Equities 90 100 Cash 0 10 15
Model Portfolio Profile: IF0013 Australian Shares - Small Cap Investment objective: To outperform the S&P/ ASX Small Ordinaries Accumulation Index over a complete cycle. The Australian Shares Small Cap Model Portfolio is designed for investors who are seeking shareholder returns through investment in smaller Australian listed companies. Overall returns are expected to be commensurate with the risks, though investors must be prepared for individual stock losses and high levels of volatility. This is an actively managed concentrated portfolio consisting of our best small cap ideas outside of the S&P/ASX 100 with sufficient liquidity. Portfolio holdings primarily consist of companies trading at attractive discounts to intrinsic value relative to the portfolio universe. All else equal, we also strive to own companies with economic moats as high quality companies tend to outperform with reduced volatility. Total return from the Small Cap Portfolio will tend to be driven by both capital appreciation and dividend yield with the mix dependent on the opportunities available. S&P/ASX Small Ordinaries Accumulation Index 15-30 0.85% p.a. Indirect Cost Ratio (approx) 0.00% p.a. Australian Equities 90 100 Cash 0 10 16