t. rowe price global equity (hedged) fund - s classproduct disclosure statement arsn 153 990 044...

T. Rowe Price Global Equity(Hedged) Fund - S ClassProduct Disclosure StatementARSN 153 990 044APIR ETL6472AUIssue Date 14 February 2020

About this PDSThis Product Disclosure Statement (“PDS”) has been prepared and issued by EquityTrustees Limited (“Equity Trustees”, “we” or “Responsible Entity”) and is a summary ofthe significant information relating to an investment in the T. Rowe Price Global Equity(Hedged) Fund - S Class (the “Fund”). It contains a number of references to importantinformation (including a glossary of terms) contained in the T. Rowe Price FundsReference Guide (“Reference Guide”), which forms part of this PDS. You should carefullyread and consider both the information in this PDS, and the information in the ReferenceGuide, before making a decision about investing in the Fund.

The information provided in this PDS is general information only and does not takeaccount of your personal objectives, financial situation or needs. You should obtainfinancial and taxation advice tailored to your personal circumstances and considerwhether investing in the Fund is appropriate for you in light of those circumstances.

The offer to which this PDS relates is only available to persons receiving this PDS(electronically or otherwise) in Australia.

This PDS does not constitute a direct or indirect offer of securities in the US or to any USPerson as defined in Regulation S under the US Securities Act of 1933 as amended (“USSecurities Act”). The Units in the Fund have not been registered under the United StatesSecurities Act of 1933, as amended, or under the securities laws of any state of theUnited States and the Fund has not been and will not be registered under the United StatesInvestment Company Act of 1940, as amended. Accordingly, unless Equity Trustees issatisfied that Units can be allotted without breaching United States securities orcommodities laws, Units may not be directly or indirectly offered or sold in the United Statesof America, or any of its territories or possessions or areas subject to its jurisdiction, or to orfor the benefit of a US person.

Contents1. About Equity Trustees Limited

2. How the T. Rowe Price GlobalEquity (Hedged) Fund - S ClassWorks

3. Benefits of investing in theT. Rowe Price Global Equity(Hedged) Fund - S Class

4. Risks of managed investmentschemes

5. How we invest your money

6. Fees and costs

7. How managed investmentschemes are taxed

8. How to apply

9. Other information

The Reference GuideThroughout the PDS, there are references to additional information contained in the Reference Guide. You can obtain a copy of the PDS andthe Reference Guide, free of charge, by visiting www.eqt.com.au/insto or by calling the Responsible Entity.

The information contained in the Reference Guide may change between the day you receive this PDS and the day you acquire the product. Youmust therefore ensure that you have read the Reference Guide current as at the date of your application.

Updated informationInformation in this PDS is subject to change. We will notify you of any changes that have a material adverse impact on you or othersignificant events that affect the information contained in this PDS. Any information that is not materially adverse information is subject tochange from time to time and may be obtained by visiting www.eqt.com.au/insto. A paper copy of the updated information will beprovided free of charge on request.

Investment ManagerT. Rowe Price Australia LimitedABN 13 620 668 895, AFSL 503741Level 50, Governor Phillip Tower1 Farrer Place, Suite 50BSydney NSW 2000Ph: +61 2 8667 5707Fax: +61 2 8667 5701Web: www.troweprice.com.au

AdministratorJPMorgan Chase Bank, National Association(Sydney Branch)ABN 43 074 112 011, AFSL 238367Level 18, 85 Castlereagh StreetSydney, NSW, 2000

Responsible EntityEquity Trustees LimitedABN 46 004 031 298, AFSL 240975GPO Box 2307Melbourne VIC 3001Ph: +613 8623 5000Web: www.eqt.com.au/insto

T. Rowe Price Global Equity (Hedged) Fund - S Class PDS 1

1. About Equity Trustees LimitedThe Responsible EntityEquity Trustees LimitedEquity Trustees Limited ABN 46 004 031 298 AFSL 240975, asubsidiary of EQT Holdings Limited ABN 22 607 797 615, which is apublic 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 specialAct of the Victorian Parliament in 1888, today Equity Trustees is adynamic financial services institution which continues to grow thebreadth and quality of products and services on offer.

Equity Trustees’ responsibilities and obligations as the Fund’sresponsible entity are governed by the Fund’s constitution(“Constitution”), the Corporations Act and general trust law. EquityTrustees has appointed T. Rowe Price Australia Limited as theinvestment manager of the Fund. Equity Trustees has appointed acustodian to hold the assets of the Fund. The custodian has nosupervisory role in relation to the operation of the Fund and is notresponsible for protecting your interests.

The Investment ManagerT. Rowe Price Australia LimitedThe Investment Manager is a subsidiary of the Baltimore-basedT. Rowe Price Group, Inc. which is a global investment managementorganization with $1,410.9 billion in assets under management as ofJune 30, 2018. T. Rowe Price provides a broad array of mutual funds,subadvisory services, and separate account management forindividual and institutional investors, retirement plans, and financialintermediaries. The organisation also offers sophisticated investmentplanning and guidance tools. T. Rowe Price’s disciplined, risk-awareinvestment approach focuses on diversification, style consistency,and fundamental research.

2. How the T. Rowe Price GlobalEquity (Hedged) Fund - S ClassWorks

The Fund is a registered managed investment scheme governed bythe Constitution. The Fund comprises assets which are acquired inaccordance with the Fund’s investment strategy. Direct investorsreceive units in the Fund when they invest. In general, each unitrepresents an equal interest in the assets of the Fund subject toliabilities; however, it does not give investors an interest in anyparticular asset of the Fund.

If you invest in the Fund through an IDPS (as defined in the ReferenceGuide) you will not become an investor in the Fund. The operator orcustodian of the IDPS will be the investor entered in the Fund’sregister and will be the only person who is able to exercise the rightsand receive the benefits of a direct investor. Your investment in theFund through the IDPS will be governed by the terms of yourIDPS. Please direct any queries and requests relating to yourinvestment to your IDPS Operator. Unless otherwise stated, theinformation in this PDS applies to direct investors.

Applying for unitsYou can acquire units by completing the Application Form thataccompanies this PDS. The minimum initial investment amount forthe Fund is $50,000.

Completed Application Forms should be sent along with youridentification documents (if applicable) to:

T. Rowe Price Australia LimitedC/- LINK Market Services LimitedPO Box 3721Rhodes NSW 2138

Please note that cash cannot be accepted.

We reserve the right to accept or reject applications in whole or inpart at our discretion. We have the discretion to delay processingapplications where we believe this to be in the best interest of theFund’s investors.

The price at which units are acquired is determined in accordancewith the Constitution (“Application Price”). The Application Price ona Business Day is, in general terms, equal to the Net Asset Value(“NAV”) of the Fund, divided by the number of units on issue andadjusted for the buy spread (“Buy Spread”). For further details on theBuy Spread, please refer to the paragraph headed “Buy/Sell Spread”under Section 6.

The Application Price will vary as the market value of assets in theFund rises or falls.

Making additional investmentsYou can make additional investments into the Fund at any time bysending us your additional investment amount together with acompleted Application Form. The minimum amount for eachadditional investment into the Fund is $5,000 or $500 per monththrough a savings plan. For more information on the savings plan seethe Application Form.

DistributionsAn investor’s share of any distributable income is calculated inaccordance with the Constitution and is generally based on thenumber of units held by the investor at the end of the distributionperiod.

The Fund usually distributes income as at 30 June each year.Distributions are calculated effective the last day of the distributionperiod and are normally paid to investors as soon as practicable afterthe distribution calculation date.

Investors in the Fund can indicate a preference to have theirdistribution:

• reinvested back into the Fund; or• directly credited to their Australian domiciled bank account.

Investors who do not indicate a preference will have theirdistributions automatically reinvested. Applications for reinvestmentwill be taken to be received immediately prior to the next BusinessDay after the relevant distribution period. There is no Buy Spread ondistributions that are reinvested.

In some circumstances, the Constitution may allow for an investor’swithdrawal proceeds to be taken to include a component ofdistributable income.

Indirect Investors should review their IDPS Guide for information onhow and when they receive any income distribution.

Access to your moneyInvestors in the Fund can generally withdraw their investment bycompleting a written request to withdraw from the Fund and mailingit to:


Fax: +612 9287 0375

The minimum withdrawal amount is $5,000. Once we receive andaccept your withdrawal request, we may act on your instructionwithout further enquiry if the instruction bears your account numberor investor details and your (apparent) signature(s), or yourauthorised signatory’s (apparent) signature(s).

2 T. Rowe Price Global Equity (Hedged) Fund - S Class PDS

Equity Trustees will generally allow an investor to access theirinvestment within 14 days of acceptance of a withdrawal request bytransferring the withdrawal proceeds to such investors’ nominatedbank account. Equity Trustees is allowed to reject withdrawalrequests, and also to make payment up to 30 days after acceptanceof a request (which may be extended in certain circumstances) asoutlined in the Constitution. In certain circumstances, for example,when there is a freeze on withdrawals, where accepting a withdrawalis not in the best interests of investors in the Fund including due toone or more circumstances outside its control or where the Fund isnot liquid (as defined in the Corporations Act), Equity Trustees candeny or suspend a withdrawal request and you may not be able towithdraw your funds in the usual processing times or at all. When theFund is not liquid, an investor can only withdraw when EquityTrustees makes a withdrawal offer to investors in accordance with theCorporations Act. Equity Trustees is not obliged to make such offers.

We reserve the right to accept or reject withdrawal requests in wholeor in part at our discretion.

The price at which units are withdrawn is determined in accordancewith the Constitution (“Withdrawal Price”). The Withdrawal Price ona Business Day is, in general terms, equal to the NAV of the Fund,divided by the number of units on issue and adjusted for the sellspread (“Sell Spread”). For further details on the Sell Spread pleaserefer to the paragraph headed “Buy/Sell Spread” under Section 6.

The Withdrawal Price will vary as the market value of assets in theFund rises or falls.

Equity Trustees reserves the right to fully redeem your investment ifyour investment balance in the Fund falls below $50,000 as a result ofprocessing your withdrawal request.

If you are an Indirect Investor, you need to provide your withdrawalrequest directly to your IDPS Operator. The time to process awithdrawal request will depend on the particular IDPS Operator andthe terms of the IDPS.

Unit pricing discretions policyEquity Trustees has developed a formal written policy in relation tothe guidelines and relevant factors taken into account whenexercising any discretion in calculating unit prices (includingdetermining the value of the assets and liabilities). A copy of thepolicy and, where applicable and to the extent required, any otherrelevant documents in relation to the policy will be made availablefree of charge on request.

Additional informationIf and when the Fund has 100 or more direct investors, it will beclassified by the Corporations Act as a ‘disclosing entity’. As adisclosing entity, the Fund will be subject to regular reporting anddisclosure obligations. Investors would then have a right to obtain acopy, 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 ASICafter the lodgement of the Annual Report; and

• any continuous disclosure notices lodged with ASIC after theAnnual Report but before the date of this PDS.

Equity Trustees will comply with any continuous disclosure obligationby lodging documents with ASIC as and when required.

Copies of these documents lodged with ASIC in relation to the Fundmay be obtained from ASIC through ASIC’s website.

Further reading�

You should read the important information in the ReferenceGuide about:

• Application cut-off times;

• Application terms;

• Online applications;

• Authorised signatories;

• Reports;

• Withdrawal cut-off times;

• Withdrawal terms; and

• Withdrawal restrictions,

under the “Investing in the T. Rowe Price Funds”, “Managingyour investment” and “Withdrawing your investment” sectionsbefore making a decision. Go to the Reference Guide which isavailable at www.eqt.com.au/insto. The material relating tothese matters may change between the time when you read thisPDS and the day when you acquire the product.

3. Benefits of investing in the T. RowePrice Global Equity (Hedged)Fund - S Class

An investment in the Fund provides the following benefits andfeatures:

• exposure to larger capitalization global equities that arerepresentative of the highest conviction securities held acrosssector and/or regional portfolios managed by T. Rowe Price.

• a currency hedging overlay strategy that aims to reduce theFund’s exposure to fluctuations between its currency ofdenomination (ie AUD) and the currencies of the Fund’sinvestments.

• access to the expertise of T. Rowe Price which has a team ofsenior investment professionals that have a long track record ofinvesting in sector or regional specialty portfolios and thatprovide investment insights and facilitate the comparison ofstocks on a global basis. The extensive experience of this team isinvaluable in its ability to effectively identify strong investmentcandidates from the universe of potential mid- to large-capsecurities.

• access to the research of the firm’s global research platform ofregional and sector specialists. The diversity of the team andtheir involvement in the industries they cover ensure they areexperts in their respective sectors.

• portfolios are constructed from the bottom-up, and T. RowePrice looks for companies with the potential either for growth orrelative improvement, located in industries where the outlook isbecoming more attractive. T. Rowe Price believes bottom-upstock selection supported by proprietary, fundamental researchcan uncover and exploit anomalies among global equities, and isthe key driver of value-added active management. T. RowePrice’s focus and commitment to fundamental research gives thefirm an information edge that is a powerful competitiveadvantage.


4. Risks of managed investmentschemes

All investments carry risks. Different investment strategies may carrydifferent levels of risk, depending on the assets acquired under thestrategy. Assets with the highest long-term returns may also carry thehighest level of short-term risk. The significant risks below should beconsidered in light of your risk profile when deciding whether toinvest in the Fund. Your risk profile will vary depending on a range offactors, including your age, the investment time frame (how long youwish to invest for), your other investments or assets and your risktolerance.

The Responsible Entity and the Investment Manager do notguarantee the liquidity of the Fund’s investments, repayment ofcapital or any rate of return or the Fund’s investment performance.The value of the Fund’s investments will vary. Returns are notguaranteed and you may lose money by investing in the Fund. Thelevel of returns will vary and future returns may differ from pastreturns. Laws affecting managed investment schemes may change inthe future. The structure and administration of the Fund is alsosubject to change.

In addition, we do not offer advice that takes into account yourpersonal financial situation, including advice about whether the Fundis suitable for your circumstances. If you require personal financial ortaxation advice, you should contact a licensed financial adviserand/or taxation adviser.

Active managementTypically, the Investment Manager actively seeks attractive securitiesto invest in, rather than investing in a predetermined basket ofsecurities, such as a basket of securities that reflects an index.Consequently, as the Fund does not fully replicate the securities byreference to which the benchmark index is calculated, the Fund mayunderperform relative to its stated benchmark.

Concentration riskConcentration of investments in the Fund (between individualinvestments and types of investments) will reduce the potentialbenefit of diversification. The potential benefit of diversification is toreduce volatility of investments.

Currency riskThe Fund may invest in securities denominated in currencies otherthan Australian dollars. If these currencies change in value relative tothe Australian dollar, the value of the investment can change. TheFund, whose strategy includes currency hedging, will, however, seekto minimise or remove some of this risk.

Derivatives riskThere are risks associated with using futures, swaps, options andother types of Derivatives as these instruments may expose the Fundto leverage, are relatively less liquid and could result in losses inexcess of the original investment.

Emerging markets riskThere is a risk associated with investing in securities issued bycompanies domiciled in countries with less developed political,economic and financial systems.

Fund riskThe Fund could terminate, the fees and expenses could change, theInvestment Manager or Responsible Entity could be replaced andthe Investment Manager’s investment professionals could change.There is also a risk that investing in the Fund may give differentresults than investing directly in the underlying assets of the Fundthemselves because of income or capital gains accrued in the Fundand the consequences of investment and withdrawal by otherinvestors.

General risksThe market price of investments may go up or down, sometimesrapidly or unpredictably. Assets may decline in value due to factorsaffecting markets generally or particular industries represented in themarkets. The value of an investment may decline due to generalmarket conditions which are not specifically related to a particularcompany, such as real or perceived adverse economic conditions,supply and demand for particular securities or instruments, changesin the general outlook for corporate earnings, changes in interest orcurrency rates or adverse investor sentiment generally. They may alsodecline due to factors which affect a particular industry or industries,such as labour shortages or increased production costs andcompetitive conditions within an industry. During a general marketdownturn, multiple asset classes may decline in value simultaneously.Further, changes in tax, legal and economic policy, political eventsand technology failure can all directly or indirectly create anenvironment that may influence the value of the investments of theFund.

Hedging riskThe Investment Manager’s currency hedging programme may not besuccessful or achieve its intended purpose. The Fund may not befully hedged as it may prove impracticable and/or too costly tohedge the smaller currency exposures.

Individual investment riskIndividual investments of the Fund, for example, securities on a stockexchange, can and do fall in value for many reasons such as changesin a company’s internal operations or management, or in its businessenvironment. The Investment Manager aims to reduce these riskswith careful analysis of research from many sources and by talking tothe management of relevant companies who are responsible forchanges which may impact on the Fund’s investments.

Legal and regulatory riskLegal risk is the risk of losses to the Fund occurring as a result of legalissues, principally loss due to the non-enforcement of a contract. Thisnon-enforcement may arise from insufficient documentation,insufficient capacity or authority of a counterparty, uncertainty inrelation to the interpretation of the law or unenforceability inbankruptcy or insolvency. There is also risk that laws, includingtaxation laws, might change, adversely affecting the ability of theFund to achieve its objective and/or adversely affecting the Fund’sperformance.

Liquidity riskThere may be times when securities may not be readily saleable (forexample a securities exchange imposed limit on price fluctuations ona particular day in both falling and rising market conditions) and thismay impact the investment and markets to which the Fund hasexposure. If there is an interruption to regular trading in a marketgenerally, or for a particular investment to which the Fund hasexposure, there may be delays in processing withdrawal requests.Neither the Responsible Entity nor the Investment Managerguarantees the liquidity of the Fund’s investments or of investmentsin the Fund.

Market riskThe value of your investment and market price of securities owned bythe Fund may be affected (negatively or positively) by changes inlegal and economic policy, political events, technology failure,economic cycles, investor sentiment and social climate. Neither pastnor current performance should be taken as an indication orguarantee of the Fund’s future performance.

Political riskThere is high political risk due to the fragile nature of some of thedeveloping countries in which the Fund will invest. Political instabilityand/or political disturbances are more common in developingcountries than in developed countries and can affect the value ofcompanies domiciled in the affected country. Policy mistakes bygovernments in developing countries can affect the value ofcompanies domiciled in the affected country. Severe currencydepreciation can occur in developing countries.


Repatriation riskRestrictions on repatriation of the invested capital may impact on theFund’s ability to meet the redemption requests of investors.

Underlying strength of the cash flowsReturns are affected by the underlying strength of the cash flows,balance sheets and management of the companies in which theFund invests.

5. How we invest your money

Warning: Before choosing to invest in the Fund you shouldconsider the likely investment returns, the risks of investing andyour investment time frame.

Investment objectiveThe Fund’s objective is to provide long-term capital appreciation byinvesting primarily in a portfolio of securities of companies which aretraded, listed or due to be listed, on recognised exchanges and/ormarkets throughout the world. The portfolio may includeinvestments in the securities of companies traded, listed or due to belisted, on recognised exchanges and/or markets, of developingcountries. The Investment Manager may seek to achieve the Fund’sobjective through investment of up to 100% of the Fund’s assets inone or more managed investment schemes, managed by theInvestment Manager or an affiliate of the Investment Manager, thathave the same or similar investment objectives as the Fund.

The Investment Manager will seek, where material and to the extentreasonable, to reduce the Fund’s exposure to the fluctuationbetween its currency of denomination (ie AUD) and the currencies ofinvestment of the Fund through the use of various techniquesincluding the use of Derivatives such as forward currency contracts,currency options and futures.

BenchmarkMSCI All Country World Index ex-Australia (Hedged).

Minimum suggested time frameThe minimum suggested investment time frame for the Fund is 5 to 7years.

Risk level of the FundHigh.

There is a risk investors may lose some or all of their initialinvestment. Higher risk investments tend to fluctuate in the shortterm but can produce higher returns than lower risk investments overthe long term. This grading is not intended to be a guarantee of anyactual level of risk or an indication of likely returns.

Investor suitabilityThe Fund may be suitable for investors seeking the potential formoderate capital appreciation over time and greater diversificationfor their equity investments and can accept the volatility associatedwith investing in equities as well as the special risks that accompanyglobal investing

Investment style and approachThe investment process involves determining the Fund’s investmentuniverse, which includes companies traded, listed or due to be listed,on recognised exchanges and/or markets, of countries which T RowePrice has determined are developed or developing countries.T. Rowe Price leverages the proprietary fundamental research andanalysis performed by the organisation’s integrated worldwidenetwork of more than 100 equity investment professionals to identifyhighly recommended companies. T. Rowe Price engages equityinvestment professionals to identify superior investment ideas,assess opportunities in a global sector context, overlaymacroeconomic and local market factors to refine industry andcompany analysis, and select what they believe to be investmentswith the most attractive risk-reward characteristics.

The portfolio manager is actively involved with the network of equityinvestment professionals during the idea generation and refinementprocess. Ultimately, the portfolio manager applies judgment toconstruct a focused global portfolio consisting of the highestconviction investment ideas, typically a minimum of 90 holdings,within a diversified framework of country, sector and companyguidelines.

Asset allocationThe assets of the Fund will generally be invested in accordance withthe following guidelines:

• The Fund aims to invest in a portfolio of approximately 90-145securities of companies which are traded, listed or due to belisted, on recognised exchanges and/or markets throughout theworld. The Fund may achieve this through investing in securitiesdirectly and/or through a managed investment schememanaged by the Investment Manager or an affiliate of theInvestment Manager that have a similar portfolio construction.

• The Fund may invest a portion of its portfolio in the securities ofcompanies established, or conducting a significant part of theirbusiness activity, in countries which T. Rowe Price considers to bedeveloping countries.

• The Fund may invest in derivatives to hedge and reduce itsexposure to the fluctuation between its currency ofdenomination (ie AUD) and the currencies of investments of theFund.

• The Fund aims to be fully invested in equities (includingmanaged investment schemes invested in equities) however attimes the Fund may hold cash or cash equivalents fortransactional purposes.

Due to movements in the market or similar events, the guidelines setout above may not be adhered to from time to time. In thesecircumstances, the Investment Manager will seek to bring the Fund’sinvestments within the guidelines within a reasonable period of time.

Labour, environmental, social and ethicalconsiderationsThe Investment Manager currently does not intend for the Fund toinvest in or hold any companies in the tobacco industry (as perGlobal Industry Classification Standard). In addition, labourstandards, environmental, social and ethical considerations will onlybe taken into account to the extent that they are not anticipated tonegatively impact investment returns. Neither Equity Trustees northe Investment Manager have a formal requirement for consideringhow these considerations impact an investment decision or will betaken into account.

Fund performanceUp to date information on the performance of the Fund will beavailable by calling the Investment Manager on +61 2 8667 5707. Afree of charge paper copy of the information will also be available onrequest. Past performance is not necessarily a guide to futureperformance.

Changing the investment strategyThe investment strategy and asset allocation parameters may bechanged. If a change is to be made, investors in the Fund will benotified in accordance with the Corporations Act.


6. Fees and costs

DID YOU KNOW?Small differences in both investment performance and feesand costs can have a substantial impact on your long-termreturns.

For example, total annual fees and costs of 2% of your accountbalance rather than 1% could reduce your final return by up to20% over a 30 year period (for example, reduce it from$100,000 to $80,000).

You should consider whether features such as superiorinvestment performance or the provision of better memberservices justify higher fees and costs.

You may be able to negotiate to pay lower contribution feesand management costs where applicable. Ask the fund or yourfinancial adviser.

TO FIND OUT MOREIf you would like to find out more, or see the impact of the feesbased on your own circumstances, the Australian Securities andInvestments Commission (ASIC) website(www.moneysmart.gov.au) has a managed funds fee calculatorto help you check out different fee options.

The information in the following template can be used to comparecosts between different simple managed investment schemes. Feesand costs can be paid directly from an investor’s account ordeducted from investment returns. For information on tax please seeSection 7 of this PDS.

TYPE OF FEE ORCOST Amount

Fees when your money moves in or out of the Fund

Establishment fee Nil

Contribution fee Nil

Withdrawal fee Nil

Termination fee Nil

Management costs

The fees and costs formanaging yourinvestment1

Management fees: 1.22% p.a. of the NAV ofthe Fund2

Indirect costs: 0% p.a. of the NAV of theFund3

1 All fees quoted above are inclusive of Goods and Services Tax(GST) and net of any Reduced Input Tax Credits (RITC). See below formore details as to how management costs are calculated.2 Management fees can be negotiated. See “Differential fees”below.3 The indirect costs are calculated and incorporate estimatedamounts with reference to the relevant costs incurred during financialyear ended 30 June 2018. See “Indirect costs” below for moreinformation.

Additional Explanation of fees and costsWhat do the management costs pay for?Management costs comprise the additional fees or costs that aninvestor incurs by investing in the Fund rather than by investingdirectly in the underlying assets of the Fund. Management costsinclude management fees and indirect costs.

In addition, management costs do not include transactional andoperational costs (i.e. costs associated with investing the underlyingassets, some of which may be recovered through Buy/Sell Spreads).

Management feesThe management fees of 1.22% p.a. of the NAV of the Fund arepayable to the Responsible Entity of the Fund for managing theassets and overseeing the operations of the Fund. The managementfees are accrued daily and paid from the Fund monthly in arrears andreflected in the unit price. As at the date of this PDS, ordinaryexpenses such as investment management fees, custodian fees,administration and audit fees, and other ordinary expenses ofoperating the Fund are covered by the management fees at noadditional charge to you.

The management fees shown above do not include extraordinaryexpenses (if they are incurred in future), such as litigation costs andthe costs of convening investor meetings.

Indirect costsIndirect costs include fees and other management costs (if any)arising from underlying funds and, if applicable, a reasonableestimate of the cost of investing in over-the-counter derivatives togain investment exposure to assets or implement the Fund’sinvestment strategy. Indirect costs are reflected in the unit price ofthe Fund and borne by investors, but they are not paid to theResponsible Entity or Investment Manager.

The estimated components of the Funds indirect costs are based onthe financial year ended 30 June 2018.

Actual indirect costs for future years may differ. If in future there is anincrease to indirect costs disclosed in this PDS, updates will beprovided on Equity Trustees’ website at www.eqt.com.au/instowhere they are not otherwise required to be disclosed to investorsunder law.

Transactional and operational costsIn managing the assets of the Fund, the Fund may incur transactionaland operational costs such as brokerage, settlement costs, clearingcosts and applicable stamp duty when assets are bought and sold,and the costs of derivatives used for hedging purposes (ifapplicable). This generally happens when the assets of a fund arechanged in connection with day-to-day trading or when there areapplications or withdrawals which cause net cash flows into or out ofa fund.

Transactional costs which are incurred other than in connection withapplications and withdrawals arise through the day-to-day trading ofthe Fund’s assets and are reflected in the Fund’s unit price. As thesecosts are factored into the NAV of the Fund and reflected in the unitprice, they are an additional implicit cost to the investor and are not afee paid to the Responsible Entity. These costs can arise as a result ofbid-offer spreads (the difference between an asset’s bid/buy priceand offer/ask price) being applied to securities traded by the Fund.Liquid securities generally have a lower bid-offer spread while lessliquid assets have a higher bid-offer spread reflecting thecompensation taken by market makers in providing liquidity for thatasset.

During the financial year ended 30 June 2018, the total transactioncosts for the Fund were estimated to be 0.41% of the NAV of theFund, of which 55.28% of these transaction costs were recouped viathe Buy/Sell Spread, resulting in a net transactional cost to the Fundof 0.19% p.a. However, such costs for future years may differ.

Buy/Sell SpreadThe Buy/Sell Spread reflects the estimated transaction costs incurredin buying or selling assets of the Fund when investors invest in orwithdraw from the Fund. The Buy/Sell Spread is an additional cost tothe investor but is incorporated into the unit price and incurred whenan investor invests in or withdraws from the Fund and is notseparately charged to the investor. The Buy Spread is paid into theFund as part of an application and the Sell Spread is left in the Fundas part of a redemption and not paid to Equity Trustees or theInvestment Manager. As at the date of this PDS, the estimatedBuy/Sell Spread is 0.25% upon entry and 0.20% upon exit. TheBuy/Sell Spread is reviewed periodically and may be changed at anytime by the Responsible Entity without providing notice to investors.You should contact the investment manager on +612 8667 5707 priorto making an investment or withdrawal to obtain the current Buy/SellSpread. The Responsible Entity may also waive the Buy/Sell Spreadin part or in full at its discretion.


Can the fees change?Yes, all fees can change without investor consent, subject to themaximum fee amounts specified in the Constitution. Equity Trusteeshas the right to recover all reasonable expenses incurred in relationto the proper performance of its duties in managing the Fund and assuch these expenses may increase or decrease accordingly. We willgenerally provide investors with at least 30 days’ notice of anyproposed change to the management costs. In most circumstances,the Constitution defines the maximum level that can be charged forfees described in this PDS. Expense recoveries may change withoutnotice, for example, when it is necessary to protect the interests ofexisting members and if permitted by law.

Payments to IDPS OperatorsSubject to the law, annual payments may be made to some IDPSOperators because they offer the Fund on their investment menus.Product access is paid by the Investment Manager out of itsmanagement fees and is not an additional cost to the investor. If thepayment of annual fees to IDPS Operators is limited or prohibited bythe law, Equity Trustees will ensure the payment of such fees isreduced or ceased.

Differential feesThe Responsible Entity or Investment Manager may from time totime negotiate a different fee arrangement (by way of a rebate orwaiver of fees) with certain investors who are Wholesale Clients.

Example of annual fees and costs for the FundThis table gives an example of how the fees and costs for thismanaged investment product can affect your investment over a 1year period. You should use this table to compare this product withother managed investment products.

EXAMPLE – T. Rowe Price Global Equity (Hedged) Fund - S Class

BALANCE OF $50,000 WITH A CONTRIBUTION OF $5,000DURING THE YEAR

Contribution Fees Nil For every additional $5,000you put in, you will becharged $0

Plus

ManagementcostsComprising:

Management fees:

Indirect costs:

1.22% p.a.

1.22% p.a.0% p.a.

And, for every $50,000 youhave in the Fund you will becharged $610 each yearcomprising:

$610$0

EqualsCost of Fund

If you had an investment of$50,000 at the beginning ofthe year and you put in anadditional $5,000 during thatyear, you would be chargedfees of:$610*What it costs you willdepend on the fees younegotiate.

This example assumes the $5,000 contribution occurs at the end ofthe first year, therefore management costs are calculated using the$50,000 balance only.

* Additional fees may apply. Please note that this example does notcapture all the fees and costs that may apply to you such as theBuy/Sell Spread.

Warning: If you have consulted a financial adviser, you may payadditional fees. You should refer to the Statement of Advice orFinancial Services Guide provided by your financial adviser in whichdetails of the fees are set out.ASIC provides a fee calculator on www.moneysmart.gov.au, whichyou may use to calculate the effects of fees and costs on accountbalances.

Further reading�

You should read the important information about Indirect costsunder the “Additional information on fees and costs” section inthe Reference Guide before making a decision. Go to theReference Guide which is available at www.eqt.com.au/insto.The material relating to these matters may change between thetime when you read this PDS and the day when you acquire theproduct.

7. How managed investment schemesare taxed

Warning: Investing in a registered managed investmentscheme (such as the Fund) is likely to have tax consequences.You are strongly advised to seek your own professional taxadvice about the applicable Australian tax (including incometax, GST and duty) consequences and, if appropriate, foreigntax consequences which may apply to you based on yourparticular circumstances before investing in the Fund.

The Fund is an Australian resident for tax purposes and does notgenerally pay tax on behalf of its investors. Australian residentinvestors are assessed for tax on any income and capital gainsgenerated by the Fund to which they become presently entitled or,where the Fund has made a choice to be an Attribution ManagedInvestment Trust (“AMIT”) and the choice is effective for the incomeyear, are attributed to them.

Further readingYou should read the important information in the ReferenceGuide about Taxation under the “Other important information”section before making a decision. Go to the Reference Guidewhich is available at www.eqt.com.au/insto. The materialrelating to these matters may change between the time whenyou read this PDS and the day when you acquire the product.

8. How to applyTo invest please complete the Application Form accompanying thisPDS, send funds (see details in the Application Form) and yourcompleted Application Form to:


Please note that cash cannot be accepted and all applications mustbe made in Australian dollars.

Who can invest?Eligible persons (as detailed in the ‘About this PDS’ section) caninvest, however individual investors must be 18 years of age or over.Investors investing through an IDPS should use the Application Formprovided by the operator of the IDPS.

Cooling off periodIf you are a Retail Client who has invested directly in the Fund, youmay have a right to a ‘cooling off’ period in relation to yourinvestment in the Fund for 14 days from the earlier of:

• confirmation of the investment being received; and• the end of the fifth business day after the units are issued.

A Retail Client may exercise this right by notifying Equity Trustees inwriting. A Retail Client is entitled to a refund of their investmentadjusted for any increase or decrease in the relevant ApplicationPrice between the time we process your application and the time wereceive the notification from you, as well as any other tax and otherreasonable administrative expenses and transaction costs associatedwith the acquisition and termination of the investment.


The right of a Retail Client to cool off does not apply in certainlimited situations, such as if the issue is made under a distributionreinvestment plan, switching facility or represents additionalcontributions required under an existing agreement. Also, the rightto cool off does not apply to you if you choose to exercise your rightsor powers as a unit holder in the Fund during the 14 day period. Thiscould include selling part of your investment or switching it toanother product.Indirect Investors should seek advice from their IDPS Operator as towhether cooling off rights apply to an investment in the Fund by theIDPS. The right to cool off in relation to the Fund is not directlyavailable to an Indirect Investor. This is because an Indirect Investordoes not acquire the rights of a unit holder in the Fund. Rather, anIndirect Investor directs the IDPS Operator to arrange for theirmonies to be invested in the Fund on their behalf. The terms andconditions of the IDPS Guide or similar type document will govern anIndirect Investor’s investment in relation to the Fund and any rightsan Indirect Investor may have in this regard.

Complaints resolutionEquity Trustees has an established complaints handling process andis committed to properly considering and resolving all complaints. Ifyou have a complaint about your investment, please contact us on:

Phone: 1300 133 472Post: Equity Trustees LimitedGPO Box 2307, Melbourne VIC 3001Email: [email protected]

We will acknowledge receipt of the complaint as soon as possibleand in any case within 3 days of receiving the complaint. We will seekto resolve your complaint as soon as practicable but not more than45 days after receiving the complaint.If you are not satisfied with our response to your complaint, you maybe able to lodge a complaint with the Australian FinancialComplaints Authority (“AFCA”).

Contact details are:Online: www.afca.org.auPhone: 1800 931 678Email: [email protected]: GPO Box 3, Melbourne VIC 3001.

The external dispute resolution body is established to assist you inresolving your complaint where you have been unable to do so withus. However, it’s important that you contact us first.

9. Other informationConsentThe 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 Fund; and

• its written consent to the inclusion of the statements made aboutit which are specifically attributed to it, in the form and context inwhich they appear.

The Investment Manager has not otherwise been involved in thepreparation of this PDS or caused or otherwise authorised the issueof this PDS. None of the Investment Manager nor their employees orofficers accept any responsibility arising in any way for errors oromissions, other than those statements for which they have providedtheir written consent to Equity Trustees for inclusion in this PDS.

Commodity Futures Trading CommissionWith respect to the Fund; Equity Trustees is exempt from registrationwith the U.S. Commodity Futures Trading Commission (“CFTC”) as acommodity pool operator (“CPO”) pursuant to CFTC Rule 4.13(a)(3).Therefore, unlike a registered CPO, the Funds’ disclosure documentsand certified annual reports to investors are not subject to CFTCrequirements.

Further readingYou should read the important information in the ReferenceGuide about:

• Your privacy;

• The Constitution;

• Anti-Money Laundering and Counter Terrorism Financinglaws (“AML/CTF laws”);

• Indirect Investors;

• Information on underlying investments;

• Foreign Account Tax Compliance Act (“FATCA”); and

• Common Reporting Standard (“CRS”),

under the “Other important information” section before makinga decision. Go to the Reference Guide which is available atwww.eqt.com.au/insto. The material relating to these mattersmay change between the time when you read this PDS and theday when you acquire the product.


Equity Trustees Application Form – 2020

• • • • •

•

• •

Financial details and customer identification declaration

•

•


Link Market Services

PO Box 3721 Rhodes NSW 2138

Fax: +61 2 9287 0341

Please complete if you are investing individually, jointly or you are an individual or joint trustee.

See Group A AMUCTF Identity Verification Requirements in Section 9

Investor 1

Title First name(s) Surname

I �---�

Residential address (not a PO Box/RMB/Locked Bag)

Suburb State Postcode

l��l�I ��Country

Email address Contact no.

Date of birth (DD/MM/YYYY)

I I

Country of birth Occupation

Investor 2

Title First name(s)

I � -'-'----� Residential address (not a PO Box/RMB/Locked Bag)

Tax File Number* - or exem tion code

Surname

Suburb State Postcode Country

l��l�I ��Email address Contact no.

Date of birth (DD/MM/YYYY) Tax File Number* - or exem tion code

I I

Country of birth Occupation

If there are more than 2 beneficial owners, please provide details as an attachment.

Do any of the investors named 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:

Equity Trustees Application Form - 2020

Beneficial owner 2

Title First name(s)

I ..--------�-------.


Surname



I I

Country


Do any of the beneficial owners named 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?

D No D Yes, please give details:


Please complete if you are investing for a trust or superannuation fund.

See Group C AML/CTF Identity Verification Requirements in section 9

Full name of trust or superannuation fund

Full name of business (if any) Country where established

Australian Business Number* (if obtained)

Tax File Number* - or exem tion code

Trustee details - How many trustees are there?

D Individual trustee(s) - complete section 3 - Investor details - Individuals/Joint

D Company trustee(s) - complete section 4 - Investor details - Companies/Corporate Trustee

D Combination - trustee(s) to complete each relevant section

Type of Trust

D Registered Managed Investment Scheme

Australian Registered Scheme Number (ARSN)

D 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

D Other Trust (unregulated)Please describe

Beneficiaries of an unregulated trust Please provide details below of any beneficiaries who directly or indirectly are entitled to an interest of 25% or more of the trust.

1 2

3 4

If there are no beneficiaries of the trust, describe the class of beneficiary (e.g. the name of the family group, class of unit holders, the charitable purpose or charity name):

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:

Beneficial owners of an unregulated trust Please provide details below 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 owners will need to provide Group A AML/CTF Identity Verification Requirements in Section 9

Beneficial owner 1

Title First name(s)

I �---�


Surname



I I

Beneficial owner 2

Title First name(s)

I ��--� Surname

Country

Residential address (not a PO Box/RMB/Locked Bag) �-----------------------,

Suburb State Postcode Country


I I


Do any of the beneficial owners named 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:


o

o

o

o

o


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