Baker Steel Gold Fund · 2020-03-01 · David Baker is a fund manager and a founding managing...

Baker Steel Gold Fund Product Disclosure Statement

Issued by Select Asset Management Limited ABN 94 101 103 011

AFSL No. 223271

5 November 2009

Baker Steel Gold FundARSN 106 634 717

APIR SLT0006AU

What’S iNSide

Application booklet is included at the end of the Product Disclosure Statement.

SectioN PaGe

SeLect aSSet MaNaGeMeNt LiMited BAKER STEEL GOLD FUND

1. Anintroduction 3

2. AboutSELECT 4

3. TheBakerSteelGoldFund 6

4. Fundataglance 8

5. Riskmanagement 9

6. Feesandothercosts 15

7. Tax 21

8. Howtogetstarted 22

9. Accessingyourinvestment 25

10. Stayingintouch 27

11. Yourrightsandotherimportantissues 29

12. Howtocontactus 31

BeFore you Start

Choosing the right managed fund as part of your investment strategy can be a very effective way of achieving your financial goals, and it is important to realise that no two funds or investment strategies are the same.

In the context of a professional financial plan, this offer document (called a Product disclosure Statement or PdS) is designed to help you decide if this Fund is the right investment for you.

This is a PDS for the Baker Steel Gold Fund (formerly called the Select Gold Fund) ARSN 106 634 717, referred to in this PDS as the Fund or the Baker Steel Gold Fund.

This PDS is an important document and we encourage you to read it carefully and to seek appropriate independent professional advice from your financial adviser and tax specialist or accountant – investing is a serious discipline and any decisions should be well informed.

The information contained in this PDS is general information only and does not take into account the investment objectives, financial situation or particular needs of any particular person. Before making an investment decision on the basis of this PDS you should consider whether the investment is appropriate for you.

This PDS speaks of our investment objectives for the Fund, particularly for performance. It is very important to understand that these objectives are NOT forecasts, promises or guarantees. They are simply our goals. Remember:

performance and volatility change over time,

past performance and volatility are a poor indicator of what may happen in the future,

neither returns or the money you invest are guaranteed – you can lose as well as make money, and

actual performance and volatility depends on many factors including financial market performance overall and the risks we discuss in this PDS.

We are focused on investment outcomes. Our investment decisions do not take into account labour standards or environmental, social or ethical considerations in the selection, retention or realisation of any investment.

We are Select Asset Management Limited (SELECT), the issuer of this PDS and the “responsible entity” (or trustee or manager) of the Fund.

For further information on terms and phrases used in this PDS visit www.selectfunds.com.au/glossary and you can request a paper copy free of charge from your adviser or by contacting us.

Our contact details are on the back cover. If you have questions, then speak to your adviser, visit our website at www.selectfunds.com.au or call us on +61 2 8252 2200.

1SELECTASSETMANAGEMENTLIMITED BAKER STEEL GOLD FUND

2 SELECTASSETMANAGEMENTLIMITED BAKER STEEL GOLD FUND

This is a professionally managed specialist investment fund.

The Baker Steel Gold Fund is a long only gold and precious metals fund whose underlying assets are managed by Baker Steel Capital Managers LLP (Baker Steel or the Investment Manager), based in London and Sydney.

Using a well-established, fundamentals based research process, Baker Steel focuses on emerging gold and precious metal producers, backing strong management teams where Baker Steel considers that the investment offers good value according to its research and investment models, with above average growth potential.

The Fund generally consists of at least 50 equities of gold and precious metals companies globally, with a small to mid-cap focus, and has the ability to have up to 50% of its net asset value invested in gold and precious metal bullion.

about the investment ManagerBaker Steel Capital Managers LLP

Founded in the United Kingdom in 2001, Baker Steel is a specialist natural resources asset management and advisory firm, operating from its head office in London and its branch office in Sydney.

It has an experienced team of analysts and fund managers covering the precious metals, base metals, minerals and energy sectors worldwide, both commodity equities and the commodities themselves. As at 30 October 2009, Baker Steel had assets under management of approximately AUD$800 million across a number of traditional and hedge fund mandates.

The investment principals of Baker Steel are recognised as experts in the gold, precious metals and resources investment area. By way of background, brief resumes for the investment team are set out below.

More information on Baker Steel can be found on its website: www.bakersteelcap.com.

aN iNtroductioN

1


aN iNtroductioN

1Baker Steel’s Management and research team

DavidBakerManaging Partner BSc Minerals Processing (Birmingham, UK), MSc Minerals Production Management (Imperial College, London)

David Baker is a fund manager and a founding managing partner of Baker Steel. Until November 2001, he was a senior portfolio manager at Merrill Lynch Investment Managers (MLIM) specialising in the natural resources sector. David initially worked as a metallurgist on the lead/zinc mines of CRA in Broken Hill, Australia, then as a mining analyst with a regional broker in Sydney before moving to the mining desk of James Capel in London.

In 1992, he moved to Mercury Asset Management (MAM), MLIM’s predecessor, and helped to create a specialist team, which at its peak, managed over US$2.5 billion of Natural Resource assets encompassing several award-winning funds. He moved in 1994 to carry out the same functions from MAM’s office in Sydney, Australia.

TrevorSteelManaging Partner BSc Mining Geology (Imperial College, London)

Trevor Steel is Chief Investment Officer and a founding managing partner of Baker Steel. Until November 2001, he was a senior portfolio manager at MLIM where he specialised in the natural resources sector. Over a 9 year period he worked alongside David Baker and others in building MLIM’s natural resources team. Like David Baker, Trevor’s investment responsibilities have also involved researching companies spanning the base and precious metal mining industries, the oil and gas industry and the alternative energy sector.

JamesWithallPortfolio Manager MSc Mineral Project Appraisal (Imperial College, London) BSc (Hons) Applied Geology (Leicester University)

Prior to joining Baker Steel in 2003, James worked for 7 years as a geologist in Western Australia before returning to London to gain his Masters degree. Previously James ran his own applied geology consultancy practice for a year and worked for Xstrata AG from 1998 to 2001. From 1996 to 1998, James worked for Precious Metals Australia, most recently as a Senior Project Geologist. He began his career working on various projects as a contract geologist. He is a member of the Institute of Materials, Minerals and Mining and the Association of Mining Analysts.

MatthewHustonresearch analyst BSc (Hons) Geology (Adelaide, Australia), MSc Mineral Project Appraisal (Imperial College, London)

Prior to joining Baker Steel in 2009, Matthew worked as a geologist and mining analyst for 13 years on project evaluations and feasibility studies in Australia, North America, Europe and West Africa. He has had exposure across all levels of the industry, from hands on exploration to detailed project modelling. Most recently, from 2005 to 2009 he worked as the in-house Mining Analyst for Dundee Precious Metals, Toronto, Canada. He is a member of the Australasian Institute of Mining and Metallurgy.


2aBout SeLect

SELECT was founded in June 2002 as a specialist investment management group. We manage around $550 million in assets on behalf of investors. Over that time we have earned a reputation as one of Australia’s leading providers of truly diversified portfolio solutions.

In addition to building truly diversified portfolios for its clients, SELECT provides responsible entity services for alternative and specialist investment managers including Baker Steel.

When you invest in the Baker Steel Gold Fund you can take comfort from having a quality team of professional investment specialists looking after your wealth.

experienced investment team and executive directors

BrendanFoleyexecutive chairman BSc and BAcc (Wits, South Africa), CA (SA)

Brendan has over 20 years of experience in the financial services and technology industries. Brendan’s primary role is to oversee all aspects of SELECT’s business to ensure that SELECT is regarded as one of Australia’s premier investment management groups.

In 1995, prior to co-founding SELECT, Brendan co-founded a technology business in the UK, Inventure (later renamed Fenics Limited), focused on the finance sector, which was sold in April 2001. In 1991 Brendan joined the Man Group PLC (Man) where he was respectively Treasurer of its Fund Management Division, Finance Director of its major subsidiary, Adam, Harding and Lueck (AHL), and, after Man’s IPO in 1994, a director of Man Investments Limited. Brendan qualified as a Chartered Accountant with Ernst & Young where he worked for eight years in both South Africa and the United Kingdom.

AndrewFairweatherchief executive officer and executive director Ass Dip Bus (USA), Dip FP (RMIT), GAICD (AICD), MBA (Executive) (AGSM)

Andrew has almost 20 years experience in the financial services industry. Andrew joined SELECT in May 2008 as the Head of Corporate Development responsible for strategy development and implementation and other strategic initiatives before becoming the Chief Executive Officer in April 2009. Andrew is a member of SELECT’s investment committees.

From 2004 to 2007, Andrew was Chief Executive Officer of MMC Asset Management Limited (MMC) before becoming the Chief Executive Officer of ASX listed financial services firm MMC Contrarian Limited from 2007 to 2008, responsible for the development of its fund management incubator model and the management of MMC and Edinburgh based, Contrarian Global Asset Management. Before joining MMC, Andrew worked at AMP from 2000 to 2004 with his last role as the Head of Business Development in AMP’s Savings and Retirement division. Prior to AMP, Andrew was Vice President at Salomon Smith Barney Asset Management responsible for retail and mezzanine distribution throughout Australia where he worked from 1997 to 2000. From 1992 to 1997, Andrew worked for Prudential Asset Management in funds management distribution.


2aBout SeLect

DominicMcCormickchief investment officer and executive director BEc (Sydney), MCom (NSW), ASIA

Dominic has worked in financial services and investment management for over 25 years and maintains a high and well respected industry profile through his regular contribution to industry articles and conferences. Dominic’s expertise, particularly in relation to building diversified portfolio solutions, became the foundation for the first Select Portfolio Solutions, launched in 2002. Dominic has overall responsibility for investment strategy and research of SELECT’s range of diversified portfolio solutions. Prior to co-founding SELECT, Dominic provided investment consultancy advice to a number of Australia’s major financial planning organisations.

Dominic joined the research area of Bridges in 1993 and in 1996 was promoted to head of research where he remained until 2001. Prior to that, Dominic worked at Pembroke Financial Planners, MLC and AMP where his career in financial services began in 1985.

DavidYalechief risk officer and executive director BSc (Hons) Physics & Computer Science (Manchester, UK), DFS (Sydney)

David has over 20 years experience in the computer software and technology industry within the finance sector. David leads SELECT’s rigorous and disciplined approach to risk management. A key member of the investment committee, David is responsible for risk management across SELECT’s portfolios and funds including the Baker Steel Gold Fund, and for the infrastructure to enable SELECT to scale effectively. In 1996, David founded the software business line at CWB Plc in the UK, which developed financial risk management systems for investment banking. David worked in funds management in the UK from 1991 to 1996 in the position of Head of IT for AHL, then for Man, after Man acquired AHL.

MichaelWinchesterhead of research BInt Bus (Flinders), MCom (NSW)

Michael has worked in financial services and investment management for almost 10 years and has experience in covering a wide range of products in both mainstream and alternative asset classes. He joined SELECT in 2004 and is the Head of Research as well as Portfolio Manager for the Select Listed Investments Fund. Michael developed SELECT’s extensive valuation database for listed investment funds and is responsible for co-ordinating SELECT’s overall research effort. Prior to SELECT, Michael was an analyst at Macquarie Equities and covered managed investments, hedge funds and structured products for the financial planning, private bank and full service stockbroking advice channels.

RobertGraham-Smithhead of Portfolio Management BCom (WA), ACA

Robert has worked in financial services and investment management for over 16 years and his core area of expertise is in alternative investments and portfolio management. Robert maintains a high profile in the alternative investment industry through his regular contribution to industry articles and conferences. Robert joined SELECT in 2004 and is the Head of Portfolio Management responsible for the day to day management of the Select Portfolio Solutions as well as being Portfolio Manager for the Select Alternatives Portfolio. Robert’s expertise in alternative investments began in 1999 when he returned from London and joined DB Absolute Return Strategies, the hedge fund specific business within the Deutsche Bank group, working as a senior hedge fund analyst, investment specialist and quantitative specialist for absolute return products. Prior to that, Robert worked in London for Deutsche Bank, ING Barings and for KPMG in London and Perth.


3the Baker SteeL GoLd FuNd

investment strategyThis is a professionally managed specialist investment fund.

Actively managed by Baker Steel, the Fund is a portfolio of globally listed gold and precious metals equities, with a small to mid-cap focus.

The core of the strategy is to invest in value-oriented stocks using a bottom-up approach.

The Fund consists principally of the equities of gold and precious metal (for example, platinum and silver) companies globally, but with an ability to have up to 50% of its net asset value invested in gold and precious metal exchange traded funds, futures and commodities. The Fund may also hold investments of companies and commodities within the wider mining sector from time to time.

The Fund may hold up to 25% of its net asset value in cash and other fixed or variable rate debt instruments if the Investment Manager considers this appropriate for risk reduction, and may invest globally in other listed equities, as well as in unlisted equities (up to 10% of the net asset value of the Fund, measured at the time the investment is made), related primarily to the gold and precious metal sectors.

The Fund is diversified by country.

Options, warrants and futures can be used to reduce risk or gain exposure to other types of investments when Baker Steel considers it appropriate. Currency risk management is generally conducted by using a passive foreign exchange hedging overlay to hedge approximately 50% back to the Australian dollar, normally against the US dollar exposure and taking into account the value of Australian dollar denominated securities held. This is generally adjusted on at least a monthly basis. However, hedging levels may vary from time to time.

The indicative time frame for this investment is at least 5 years.

investment objectivesThe Fund’s objectives, over rolling 5 year periods, are:

to provide capital growth by investing in a portfolio consisting principally of globally listed gold and precious metal equities and their related instruments, and

to outperform the FTSE# Gold Mines Index (expressed 50% in USD and 50% in AUD and after fees and expenses)

but remember that neither of these objectives is intended to be a forecast. They are not guaranteed.

investment processBaker Steel’s investment process has the following key features:

a well-established value-oriented and metals-based research process, enhanced by research visits to companies and projects throughout the world,

an in-house valuation database with in excess of 500 natural resource deposits and 200 mining companies for evaluating mining opportunities worldwide, and

a team-based stock selection and investment decision-making process with controlled investment and position limits.

# FTSE is a trademark of London Stock Exchange and The Financial Times Limited and is used by FTSE International Limited under licence.


3the Baker SteeL GoLd FuNd

investment in gold and precious metal equitiesExposure to gold and precious metal values may be beneficial in markets where:

gold production growth falls or cannot be maintained and larger cap producers may have to acquire other producers as a consequence,

there is an increased demand for gold where the development of exchange traded products outstrips supply, and

gold regains its status as an alternative financial asset as a hedge during inflationary and deflationary periods.

competitive edgeBaker Steel considers that it has important advantages in comparison to many other precious metals and natural resources fund managers, including:

the wide experience of its principals in investing in the resources sector and complementary investing skills,

the strong technical backgrounds of its portfolio managers in mining and geology,

a well-established value-oriented and metals-based research process, and

a nimble investment process, with no size constraints but with a focus on small and mid-cap stocks.

PerformanceFor recent Baker Steel Gold Fund performance information, please visit our website at www.selectfunds.com.au, contact us or speak to your adviser.

When considering the past returns, remember that past performance is not a reliable guide to future performance. No-one guarantees your investment or that you will receive income.


FuNd at a GLaNce

4InvestmentManager Baker Steel Capital Managers LLP

Style A geographically diversified portfolio of globally listed gold and precious metals equities, with a small to mid-cap focus

Investments Principally the equities of gold and precious metal companies globally, with an ability to have up to:

50% of the Fund’s net asset value invested in gold and precious metal exchange traded funds, futures and commodities and from time to time investments of companies and commodities within the wider mining sector (with exposure to any one issuer representing no more than 15% of the Fund’s net asset value)

25% in cash and other fixed or variable rate debt instruments

10% in unlisted equities related primarily to the gold and precious metal sectors, and may invest globally in other listed equities related primarily to the gold and precious metal sectors

Objectives Over rolling 5 year periods:

to provide capital growth by investing in a portfolio consisting principally of globally listed gold and precious metal equities and their related instruments, and

to outperform the FTSE Gold Mines Index# (expressed 50% in USD and 50% in AUD and after fees and expenses)

Suggestedinvestmenttimeframe

Minimum 5 years

Levelofrisk High

StartDate 27 October 2003

Minimuminvestment Generally $25,000

ManagementCosts

Investment Management and Expense Recovery Fee

1.89% p.a. (including irrecoverable GST) of the net asset value of the Fund (excluding any buy-sell spreads) before any Management Costs for the period. See page 16 for detail.

PerformanceFee 10.25% (including irrecoverable GST), on any out-performance over the FTSE# Gold Mines Index return* with a high watermark. See page 16 for detail.

Buyspreadandsellspread

Both 0.25%. See page 18 for detail.

APIR SLT0006AU

Distributions Annually: 30 June

Applications Weekly and each month

Withdrawals Weekly and each month

Unitpricing Weekly and each month


* the FTSE Gold Mines Index return used is expressed 50% in US dollars and 50% in Australian dollars for comparative purposes since the Fund is approximately 50% hedged back to the Australian dollar.


5riSk MaNaGeMeNt

risk is unavoidableAll investments are subject to varying risks, and the value of your investment will rise and fall over time. Risk is the other side of the return equation. Changes in value can be significant and they can happen quickly – the greater and faster the changes the greater the volatility^. Different types of investments have different risk characteristics which will affect investment performance.

The significant risks associated with an investment in the Baker Steel Gold Fund are discussed below.

Please remember that neither the performance of your investment, nor capital invested, in the Fund is guaranteed and although our job is to make you money, you can also lose money.

Managing riskA great deal of time is spent considering risks and we aim to manage these as far as we consider practicable in a way which is compatible with the Fund’s objectives. The potential for returns is always assessed in light of the associated risks involved. As a general rule, the higher the potential returns, the higher the level of risk.

Baker Steel does many things in managing risk, but risk cannot be fully eliminated, many risks are difficult to manage effectively and some risks are beyond their control altogether. You need to accept this when investing in the Fund.

You sometimes hear investment managers speak of “attractive risk-adjusted returns” and this is what Baker Steel aims for – returns which, in light of the associated risks, are still considered attractive.

The focus of the Fund is on gold and precious metals, considered alternative investments by many. Sometimes people assume that alternative investments must be high risk. However, we do not consider the Fund to be high risk when used appropriately in conjunction with mainstream assets in an investor’s overall portfolio.

The Fund offers the opportunity for traditional share, bond and property investors to diversify their portfolios~ the Fund is designed for this, rather than being used as a stand-alone investment. Including it within a portfolio has the potential to lower overall risk and volatility.

When used on its own, however, the Fund can be volatile^. To mitigate this risk investors should hold units in the Fund only in conjunction with mainstream assets in their portfolio.

And of course, we do not just identify risks, we actively seek to manage them or have them managed as far as is considered practicable, but this may not be successful. Baker Steel’s disciplined approach, summarised below, includes a broad range of risk management activities from the careful selection of investments through to using sophisticated financial tools to offset specific risks.

You can also help reduce the impact of risk. You can:

get professional advice suitable to your investment objectives, financial situation and particular needs (nothing in this PDS can replace tailored professional advice), and

have the right investment timeframe – however, speak to your adviser to see if this suits your individual circumstances. Be patient – in practice, investing does not make you wealthy overnight.

~ increasing levels of dispersion around the mean lead to higher standard deviations indicating a higher degree of volatility and risk.

^ Volatility is a measure of the degree of variation of returns around a mean or average return and is often used to quantify risk.


5riSk MaNaGeMeNt

rigorous and disciplined approach to risk managementAs the responsible entity for the Fund, SELECT:

completed an extensive due diligence on Baker Steel and continues to monitor the performance of their obligations regularly, and

maintains a comprehensive risk management program at the company operational level (in accordance with Australian Standard AS 2004:4360 Risk Management) and maintain a business continuity plan which is tested every six months by simulating a total loss of our main site.

Baker Steel is responsible for the overall management of risks associated with the investment of the Fund, and in this respect:

has in place asset allocation policies it considers appropriate that are compatible with the Fund’s objectives, and processes designed to ensure a level of diversification considered appropriate,

applies a rigorous portfolio construction process,

completes initial and ongoing due diligence on the investments of the Fund, and

seeks to manage specific risks such as individual investment risk, liquidity risk and market risk through diversification and by having limits on the allocations to individual investments and liquidity buckets as appropriate.

As the investment manager for the Fund, Baker Steel rigorously monitors and seeks to manage, as far as is practicable, risk across the entire investment process.

types of risksNeither we nor Baker Steel can predict all risks, but because managing your money is our and their business, we both use our experience to reduce risks for you as far as is practicable.

Marketandvolatilityrisk

Markets are subject to many influences which can cause losses as well as gains and which influence volatility.

Economic, technological, political or legal conditions, disasters both natural and man-made, and even market sentiment can (and do) change, and this can cause changes in the value of investment markets which can affect the value of the investments in the Fund.

Stock markets in general are volatile and commodity markets more so and, given that the Fund will principally be investing in these types of markets, the Fund will be subject to this volatility.

Investors should be aware that precious metal and mining shares are countercyclical in nature – their performance generally has a low level of correlation with equity market performance as a whole. As equity markets rise, gold and precious metals prices often fall.

Commodity prices generally relate to the overall level of economic activity and industrial production. Historically, during periods of economic or financial instability, commodities and the securities of producers have been subject to extreme fluctuations in market price. In turn, the earnings and general financial conditions of producers are highly dependent on the market price of the underlying resources which, historically, have been extremely volatile.

Baker Steel uses research and analysis to form a view on these matters as best it can and then rebalances the investment mix of the Fund in an effort to reduce the impact.


5riSk MaNaGeMeNt

Borrowingrisk

Most of us borrow, but borrowing for investment has special risks. Borrowing is sometimes called gearing or leverage.

Direct borrowing or indirect leverage using derivatives (such as interest rate swaps) magnifies other Fund risks. The Fund may also hold underlying investments that themselves utilise leverage. Both types of leverage may enhance any positive gains but, conversely, can magnify any losses.

You may borrow to invest in the Fund. This is fine with us. But remember, although borrowing does increase the potential for returns, the potential for you to lose money increases as well. Please get professional advice before you do this.

The Fund will generally not borrow directly, but may borrow directly in the short term up to a maximum 10% of net asset value to fund distributions and to manage withdrawals or settlement mismatches when buying and selling securities, and then only if it is considered to be prudent and in the best interests of all investors.

Credit markets can change, and an inability to borrow may hamper investment strategies and force the sale of investments at unattractive prices.

Interestraterisk

The Fund will sometimes be exposed to investments consisting partly of invested money (equity) and partly of borrowed money (debt).

Changes in interest rates can have a positive or negative impact directly or indirectly on investment values or returns – for example the cost of borrowing can decrease or increase. When an investment is geared (that is, purchased with some debt) the potential for gains and losses is greater.

As part of the investment process, the gearing levels of investments into which the Fund invests are monitored regularly by Baker Steel as far as is practicable.

The global interest rate environment will have a bearing on precious metal prices, in particular on gold given its quasi-monetary status. Generally, an environment of low or negative real interest rates will positively impact precious metal prices and an environment of high real interest rates will tend to impact precious metal prices negatively.

Derivativerisk

Derivatives may be used to reduce risk or to gain exposure to certain types of investments, but they can also introduce risks.

Derivatives are financial tools where the value is based on, or derived from, the value of another asset. They can be traded for small amounts of money (relatively) but if the value of the asset moves the wrong way, larger sums of money may need to be paid.

Risks associated with using these tools might include the value of the derivative failing to move in line with the underlying asset, potential illiquidity of the derivative, the investment manager not being able to meet payment obligations as they arise, and counterparty risk (this is where the other party to the derivative cannot meet its obligations).

Baker Steel aims to manage derivative risk as far as is practicable by making sure it can meet all its obligations with respect to derivative contracts, by entering into derivative contracts with reputable counterparties and by monitoring the effective exposures generated by these positions on a regular basis.


5riSk MaNaGeMeNt

Currencyrisk

Changes in the value of currencies can also impact on returns, both positively and negatively. Investments which are based overseas or which are exposed to other countries are often denominated in other currencies.

When currencies change in value relative to one another, the value of investments based on those currencies can change as well.

Investment managers sometimes aim to “hedge” some of this risk. This involves some financial arrangement designed to offset changes in currencies. Sometimes derivatives can be used.

SELECT will generally undertake some hedging of foreign currency exposure with the goal of partially reducing the impact of movements in exchange rates between the Australian Dollar and selected other currencies on Australian domiciled investors. Generally hedging will be conducted by using a passive foreign exchange hedging overlay to hedge approximately 50% of the Fund value back to the Australian dollar, normally against the US Dollar exposure and taking into account the value of Australian dollar denominated securities held.

SELECT will generally adjust the hedge monthly but may do so more frequently (for example if there are substantial subscriptions, redemptions or fluctuations in value) or less frequently and may leave hedges unchanged.

Hedging levels may vary from time to time. For example, less than 50% hedging may be in place where SELECT considers hedging is not cost effective or practicable. Investors accept that hedging levels will fluctuate, at times substantially. At times of considerable market or Fund stress, there may be no hedging. Fluctuations are not generally advised to investors.

Unfortunately hedging is generally imperfect. It is not always successful, not always used to offset all Fund currency risk, and is sometimes not cost effective or practical to use.

So, in spite of potential hedging from time to time, currency risk remains.

IndividualcompanyandInvestmentrisk

Individual investments the Fund buys can (and do) fall in value for many reasons, which depend on the nature of the investment. Reasons for a fall in value may include:

a change in the attractiveness of a sector relative to the broader markets,

a change in the profitability of a particular investment strategy, or

changes in an entity’s internal operations, management, or in its business environment.

Natural resource companies are, however, subject to specific operational and geological risks in addition to normal business and management risks. Examples of operational risk include mine rock falls, underground explosions and pit wall failures. Geological risk would include faulting of the ore body and misinterpretation of geotechnical data and fraud or simply that a mine does not produce what was expected.

The use of commodity and currency derivative instruments by producers has also increased in recent years. There have been examples of companies that have mismanaged their exposures resulting, in extreme cases, in financial distress or even bankruptcy.

Baker Steel seeks to manage individual company risk by diversifying the Fund across different individual investments.


5riSk MaNaGeMeNt

Liquidityrisk

We aim to make your invested money available to withdraw when you need to, but this may not always be possible.

Because we pay cash to your account when you withdraw, Baker Steel may need to sell investments to pay you.

Depending on factors such as the state of the markets, doing this is not always possible, practicable or in the best interests of investors as a whole.

This is one of the reasons why the constitution for the Fund has some limited circumstances where there could be a delay in meeting your withdrawal requests.

Also, as the Fund is not listed on a public exchange, selling your units through a stockbroker is not possible. You may transfer units to anyone you wish but you may not find a buyer or a buyer at the price you want and stamp duty will likely be payable.

Baker Steel monitors the Fund’s liquidity levels as far as is practicable with a view to managing the Fund’s overall level of liquidity.

CountryandEmergingMarketrisk

The Fund invests in many countries globally and so will also be subject to country risk. The production of some commodities can be concentrated in geographic regions or specific countries, and as such the impact of natural, political or social factors can have a significant effect. Commodity prices can be influenced, often unpredictably, by co-operative or co-ordinated actions, by producers or sovereign nations. There is the risk that one or more of these markets may perform poorly relative to others.

The Fund is likely to invest in precious metals companies which are located in emerging markets (that is, less developed markets than Australia). It should be noted that some governments exercise substantial influence over the private sector, and the political risk for many emerging markets is a significant factor. Adverse social and political circumstances (such as wars and political change) can significantly impact on the value of investments.

Governments in emerging markets have been involved in policies of expropriation, confiscatory taxation, nationalisation, intervention in the securities market and trade settlement, and imposition of foreign investment restrictions and exchange controls, and these could be repeated in the future.

Generally accepted accounting, auditing and financial reporting practices in emerging markets may be significantly different from those in developed markets. These markets are often less rigorously regulated than more mature markets and, as such, the accuracy of this information may not be as reliable.

Trading volumes in emerging markets, when compared with more mature markets, can be lower, which could result in lack of liquidity and greater price volatility. Practices in relation to settlement of securities transactions in emerging markets involve higher risks than those in developed markets, in part because the Fund may need to use brokers and counterparties which are less well capitalised, and custody, registration and title of assets in some countries may be less reliable.

To the extent that it is considered appropriate and practicable, Baker Steel monitors the Fund’s exposure to geographic and political regions with a view to assessing the impact of such risk.

NaturalResourceandTechnologyrisk

Natural disasters such as earthquakes, droughts and floods, can lead to severe supply disruptions. These events may significantly influence commodity prices. Similarly, supply interruptions as a result of social factors such as strikes, civil unrest and wars can have a significant impact on commodity prices.


5riSk MaNaGeMeNt

The discovery of a significant mineral deposit could have a major adverse impact on the price of the commodity due to the prospect of increased supply.

New technology and changes in laws, treaties and protocols could lead to substitution of a commodity or commodities, thereby reducing demand and so price. Similarly, new technology, laws, treaties and protocols could lower production costs and increase supply of a commodity or competing technology, influencing its price.

Fundrisk

All investment vehicles, including managed funds, have some inherent risks.

For example, the Fund could be terminated, we could be replaced as responsible entity or Baker Steel as investment manager, and our or their investment and management team could change.

Investment decisions are not always successful.

There is a risk that investing in the Fund may give different results than investing in the individual investments; for example, income or capital gains accrued in the Fund and the consequences of investment and withdrawal by other investors.

Fund risk is managed as far as is practicable by diligently managing the Fund and retaining staff for the long term.

DependenceonBakerSteel

Baker Steel make the day to day investment decisions, but they may not always get it right. A manager may not perform as we hope or as they are required. Baker Steel is no exception. The success of the Fund is largely dependent upon Baker Steel’s skill as the investment manager.

SELECT attempts to mitigate this risk by performing extensive due diligence and ongoing monitoring on Baker Steel to ensure they remain a quality manager. Baker Steel has a proven track record and expertise.


6FeeS aNd other coStS

Didyouknow?

Small differences in both investment performance and fees and costs can have a substantial impact on long term returns.

For example, total annual fees and costs of 2% of your Fund balance rather than 1% could reduce your final return by up to 20% over a 30 year period (for example, reduce it from

$100,000 to $80,000).

you should consider whether features such as superior investment performance or the provision of better member services justify higher fees and costs.

you may be able to negotiate to pay lower contribution fees and management costs where applicable. ask us or your financial adviser.

Tofindoutmore

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 (www.fido.asic.gov.au) has

a managed investment fee calculator to help you check out different fee options.

This section shows fees and other costs that you may be charged. These fees and other costs may be deducted from your account balance, from the returns on your investment, or from the Fund’s assets as a whole. Taxes are set out in another part of this PDS. You should read all of the information about fees and costs, as it is important to understand their impact on your investment in the Fund.

These fees and other costs are inclusive of Goods and Services Tax (GST).

type of fee or cost amount how and when paid

FeeswhenyourmoneymovesinoroutofaFund.

Establishmentfee: The fee to open your investment.

Nil Not applicable

Contributionfee: The fee on each amount contributed to your investment.

Nil Not applicable

Withdrawalfee: The fee on each amount you take out of your investment.

Nil Not applicable

Terminationfee: The fee to close your investment.

Nil Not applicable


type of fee or cost amount how and when paid

ManagementCosts

InvestmentManagementFee:This is an ongoing fee payable to SELECT and then shared with Baker Steel for managing your investment.

1.54% p.a. (including irrecoverable GST) of the net asset value of the Fund (excluding any buy-sell spreads) before the deduction of any Management Costs for the period.

This fee is deducted from the Fund before unit prices are determined, and is paid monthly in arrears.

This fee may be negotiable for wholesale clients – see page 19.

ExpenseRecoveryFee:This is an ongoing fee payable to SELECT out of which SELECT pays the usual administration costs incurred in operating the Fund.

0.35% p.a. (including irrecoverable GST) of the net asset value of the Fund (excluding any buy-sell spreads) before the deduction of any Management Costs for the period.

This fee is deducted from the Fund before unit prices are determined, and is paid monthly in arrears.

This fee is not negotiable.

PerformanceFee:This is a fee payable to SELECT and then shared with Baker Steel when a certain performance level for the Fund is satisfied.

Rate: 10.25% (including irrecoverable GST).

Benchmark FTSE# Gold Mines Index return*

Period Half yearly

Detail Calculated on any new out-performance over the Benchmark return, both measured cumulatively from 30 June 2008 and adjusted for distributions.

This fee is not always payable.

When payable, it is deducted from the Fund before unit prices are determined, and is paid at the end of the relevant half year period.

This fee may be negotiable for wholesale clients – see page 19.

Service Fees

Investment switching Fee: This is the fee for changing investment options.

Nil Not applicable






additional explanation of Fees and costs

InvestmentManagementFees

For a worked dollar example of Fees, please refer to the “Example of annual fees and costs” on page 20.

PerformanceFees

The Management Costs part of the table on page 16 includes any Performance Fee charged to the Fund. Remember that Performance Fees are payable when your investment is performing well. It is a way for those who create success to share in that success.

The Performance Fee methodology is as follows:

at the end of the relevant period, we determine if there has been any increase in the Fund’s value over the period

– if the Performance Fee is payable, this increase is calculated after deduction of our Investment Management and Expense Recovery Fees, and is based on the net assets of the Fund

the Fund’s value must also be in comparison to a value at a previous time (that is, there is a “high water mark”)

– the previous value we compare this to is the highest value at the end of any preceding half year period (which is initially set to the unit price as at 30 June 2008) – this often called a high water mark.

– when we are comparing performance to a prior period, we add back distributions made since that preceding half year period

we then check if we have also outperformed the benchmark

– a benchmark is simply a level of performance. The benchmark is the FTSE# Gold Mines Index return*

If there is an entitlement to a Performance Fee, the Performance Fee is equal to 10.25% (including irrecoverable GST) multiplied by any new out-performance over the Benchmark, both measured cumulatively from 30 June 2008.

The performance fee (if any) will be deducted prior to when the unit price is determined, and is payable at the end of the relevant calendar half year period.

In the case where units are redeemed during a half year period and a performance fee would have been payable on the day of the redemption if that day had been the end of the half year period (i.e. the performance fee has been accrued in the unit price used for that processing day), then we are entitled to receive the amount of the performance fee attributable to the units redeemed payable at the end of the half year period in which the redemption took place.

For a worked dollar example of fees, please refer to the “Example of annual fees and costs” on page 20.




expense recovery FeeThe Fund has an Expense Recovery Fee. From this fee we pay all the usual expenses associated with operating the Fund.

These expenses include fund establishment, promotion, licensing, custodian, registry, audit, taxation advice, external consultants, accounts, stationery, postage, compliance and compliance committee costs, insurance costs and regulatory expenses, as well as any GST impact on these services.

We may determine that unusual expenses such as investor meetings, fund termination or any dispute management may be in addition to this.

For a worked dollar example of fees, please refer to the “Example of annual fees and costs” on page 20.

transaction costsTransaction costs are those costs associated with the buying and selling of the Fund’s investments from time to time such as brokerage and government or bank charges.

You pay for transaction costs through the Buy and Sell Spreads of the Fund, which is our estimate of the average transaction costs associated with buying and selling investments (discussed below).

Buy and Sell SpreadsA Buy Spread is a cost charged when you enter the Fund and the Sell Spread is a cost charged when you withdraw from the Fund.

Buy and Sell Spreads are designed to pay for the transaction costs associated with (as relevant) buying or selling investments.

Currently, the Buy and Sell Spreads are each set at +/-0.25% of the unit price of the Fund.

In practice, money is not actually deducted from your investment or withdrawal amount. Instead, the entry price is made 0.25% higher and the exit price is made 0.25% lower.

So, for example:

if you invest $50,000, there is an adjustment of the entry price up so that in effect you pay $125 for the costs of us then going and buying investments with your money, and

if you withdraw $50,000, there is an adjustment of the exit price down so that in effect you pay $125 for the costs of us selling investments so we can pay cash to you.

The Buy and Sell Spreads are paid to the Fund and not to SELECT.

SELECT has a policy in place, which sets out the guidelines and relevant factors and discretions for calculating unit prices (including Buy and Sell Spreads). A copy of this policy (and records of any departures from our policy) is available from SELECT without charge on request.

We may choose not to charge a Buy or Sell Spread from time to time, for example where there is no change in beneficial ownership of an investor’s units.




other payments and commissionsInvestment Management and Performance Fees earned by SELECT from the Fund may be paid from SELECT’s own money to others. This is paid entirely from SELECT’s own resources, does not impact on returns and is not an additional cost borne by investors. For details of any commission received by your financial planner, please refer to the financial services guide and/or statement of advice they provide you.

We have a register of alternative remuneration of $300 or more paid to (and received from) financial service licensees and advisers. You can inspect this during business hours – contact us.

We do look after our employeesOur employees are at the heart of our business and we can choose not to charge members of our staff and those people associated with them Performance and Investment Management Fees on their investments in accordance with ASIC policy.

We value very large investmentsVery large investors are important to any investment management business. Large amounts give us buying power, for example, from which all investors benefit.

We can choose not to charge large investors some or all of our Performance Fees and Investment Management Fees on their investments, or we may pay them some of our own fees. Large investors may contact us as to eligibility. ASIC regulates how we can do this.

We are not permitted to enter into individual fee arrangements with investors who are not “wholesale clients” as the Corporations Act defines this.

changes in fees and costs It is possible for the fees and costs to change. Although we aim to keep fees and costs constant and competitive, the business environment changes as do operating costs.

We will give you at least 30 days prior notice of any increase.

In any case, we cannot charge more than the constitution for the Fund allows – to change the constitution in this regard we require investor approval.

Bank and government chargesIn addition to the fees and costs described in this section, standard government fees, duties and bank charges may also apply such as stamp duties. Some of these charges may include additional GST and will apply to your investments and withdrawals as appropriate.

taxThe fees and other costs in the Fees and other Costs table take into consideration the net effect of GST (this incorporates the benefits of reduced input tax credits). For additional information regarding tax, please refer to page 21.


example of annual fees and costsThis table gives an example of how the fees and costs for the Fund can affect your investment over a 1 year period. You should use these tables to compare the Fund with other managed investment products.

example Balance of $50,000 with a contribution of $5,000 during year

Contribution fee Nil For every additional $5,000 you put in, you will be charged $0.

PLUS Management Costs paid to SELECT

1.89% p.a. And for every $50,000 you have in the Fund you would have been charged $945 for Management Costs paid to SELECT.

EQUALS Cost of the Fund

Nil If you had an investment of $50,000 at the beginning of the year and you put in an additional $5,000 during the year, you would have been charged Management Costs of $945.

What it costs will depend on the fees you negotiate with your fund or financial adviser.

Aboutthisexample

There are a few things to keep in mind when considering this example:

they assume that fees are applied to a balance of $50,000 over the course of the year, that is, no contributions or withdrawals are made during the year, and the Fund’s unit price does not change,

no Buy or Sell Spread is included, so assuming a Buy Spread of 0.25%, you would incur $12.50 for a $5,000 contribution, paid to the Fund,

the figures do not reflect all indirect costs - any actual or estimated fees charged by underlying investments are not actually known or reported to us in a meaningful way and cannot practically be estimated, and so are not included,

they assume that no unusual expenses are incurred nor bank or government charges apply – these may increase costs,

there were no Performance Fees paid to SELECT in the last financial year and if there had been the Management Costs would have been higher, but so would the performance of the Fund, and

as with all past matters, these historical fees examples do not represent any promise that Fund fees will remain at these levels. They could be lower or higher than those shown in the Example, especially if the Fund performs well and a Performance Fee is charged.



7tax

tax is a part of lifeYou will probably need to pay tax in relation to your investment in a Fund – generally income or capital gains tax, but you might be able to claim some tax credits or have the benefits of some concessions.

Your tax liability ultimately depends on your circumstances and so we recommend that you seek professional advice before you invest or deal with your investment.

We will send you all the information you need each year to complete your tax return.

tax when you receive distributions from the FundYou probably will have a tax liability when you receive distributions from the Fund.

Your tax impact depends on what makes up the distributions and your personal circumstances. Distributions could comprise: income (for example, dividends and interest), net capital gains (from the sale of the Fund’s investments), tax credits (for example, franking credits attached to dividend income and credits for tax paid on foreign income), and tax deferred income.

tax when you withdrawYou probably will have a tax liability when you withdraw from the Fund.

Australian residents are generally subject to capital gains tax on gains when they withdraw any money for themselves or to invest in another fund or transfer units to someone.

Depending on the kind of taxpayer you are, and how long you have held your units, you may be entitled to a capital gains concession which can reduce the liability by up to one half.

tFNs and aBNs?You do not have to tell us your TFN or ABN, but most people do.

If you choose not to and do not have an exemption, we must deduct tax at the highest personal rate, plus the Medicare levy, before paying any distribution to you.


complete the application bookletSimply:

complete a current application booklet,

complete the correct investor identification form for you,

give them to your adviser or send them to:

BNP Paribas Fund Services australasia Pty Ltd c/– registry Services department PO Box R209 Royal Exchange NSW 1225 Australia

send us your application money by cheque or electronic funds transfer (as detailed on page 3 of the application booklet).

BNP Paribas Fund Services Australasia Pty Ltd is our administrator.

Generally, you need $25,000 to start and need to keep $25,000 invested.

We will confirm with you when we accept your application.

are you investing more?Use a current application booklet or write to us and tell us your investor number, the Fund and the amount. Also, tell us if you have paid by funds transfer, otherwise include your cheque. You do not need to send us any more investor identification forms, although you must sign the booklet or letter.

Give them to your adviser or send them to:

BNPParibasFundServicesAustralasiaPtyLtdC/–RegistryServicesDepartment PO Box R209 Royal Exchange NSW 1225 Australia F: +61 2 9222 0010

The minimum amount for further investments is $1,000.

If you wish to make an initial investment into any of our other products then you must complete and send to us the application booklet. An application booklet should always be accompanied by the PDS for that product. Please ensure you read the relevant PDS carefully and we encourage you to seek professional advice.

The current PDS governs your investment from time to time. If we issue a new PDS or supplement or replace it we will let you know and we recommend that you read it carefully. Copies are always available free from us and from our website.

8hoW to Get Started


applicationsGenerally, we process application requests each week on Wednesday and at the beginning of each month (each a processing day) although processing after the end of June can take longer – up to 6 weeks.

That means we need to have your completed application booklet and cleared money by at least 5pm Sydney time the business day before this.

If we receive an application booklet or cleared money after this, or on a non-business day for us, it will wait for the next processing day.

For applications, we use the unit price next calculated after 5.00 pm every Tuesday and on the last business day of the month.

The SELECT website contains a timetable for processing days relating to the Fund - visit www.selectfunds.com.au/calendar.aspx.

Please note that we do not pay interest on monies received prior to processing days (any interest is credited to the Fund).

What about unit prices?Askyouradviser,visitourwebsiteorcontactusforthelatestprices.

We determine the unit price of the Fund each month based on the information we have most recently available.

We calculate unit prices in three steps:

we calculate the value of the investments of the Fund and take away the value of the liabilities – this gives us the “net asset value”,

we divide this by the number of units we have on issue, and

we generally make an adjustment for the “Buy Spread” or “Sell Spread” – see page 18.

can i use borrowed money to invest?yes, you can.

But we recommend you get professional advice first.

Remember that the Fund may borrow or be exposed to borrowing. Borrowing can increase returns but also increase losses. See the Risks section on page 11.

can you change your mind?once lodged, applications cannot generally be withdrawn.

But the law provides that once units are issued, you can change your mind. If you decide that you do not want the units we have issued you, we must repay your money to you. We are allowed to (and generally do) make adjustments for market movements up or down, as well as any tax and reasonable transaction and administration costs (for example, if you invest $50,000 and the value of the units falls by 1% between the time you invest and the time we act on your request that you wish to withdraw your investment, we may charge you $500 on account of the reduced unit value and an administration fee of $50).

If you change your mind, you have 14 days to tell us, starting on the earlier of:

when we send you confirmation that you are invested, or

the end of the 5th day after the day on which we issue the units to you.

8hoW to Get Started


investing through a master trust or wrap account?Ifso,youarenotadirectinvestorintheFund,andsomethingsaredifferentforyou.

SELECT authorises the use of this PDS as disclosure to investors who wish to access the Fund through an investor directed portfolio service (commonly referred to as a master trust or wrap account).

These “indirect” investors do not themselves become investors in the Fund, and do not acquire the rights of an investor. The investor is the operator of the master trust or wrap account is who acquires those rights and can exercise, or decline to exercise them on behalf of their investors.

It follows that indirect investors do not receive income or reports directly from us, nor do they directly participate in investor meetings or possible winding up of the Fund. They do not complete our application booklet or investor identification forms. Overall time to access monies invested in the Fund depends on the application and withdrawal times of the operator of that master trust or wrap account.

Please read your master trust or wrap account guide carefully to understand the structure, fees and communications procedures for your master trust or wrap account and consult your financial adviser if you have any questions. We are not responsible for the operation of any master trust or wrap account.

are applications always accepted?Generallyyes.

Although, we can refuse them in whole or part and need not give reasons.

8hoW to Get Started


distributionsWe aim to make payments from the Fund regularly, but you might find it worthwhile to reinvest distributions automatically instead.

Distributions can automatically be reinvested into the Fund at the price equivalent to the net asset value per unit on the processing day following the end of June, that is, without any Buy Spread applied.

Any income payable is usually paid within 6 weeks after the end of June each year (although the constitution for the Fund allows a little longer).

If you have invested via a master trust or wrap account service, reinvestment of distributions may be automatically done for you. You need to speak to the master trust or wrap account operator to see if that is the case.

WithdrawalsFor withdrawals, simply write to or fax our administrator.

You can write or fax to our administrator BNP Paribas Fund Services Australasia Pty Ltd the amount you wish to withdraw. Do not forget your investor number, the amount you wish to withdraw, and to sign the withdrawal request.

The minimum withdrawal amount is $1,000, and generally, you need to keep $25,000 invested.

We pay by transfer to your nominated account, normally within 12 days of the request being processed. There can be delays in certain circumstances – as set out on the next page.

Once lodged, withdrawal requests cannot generally be withdrawn.

take a note of our processing daysGenerally, we process withdrawal requests each week on Wednesday and at the beginning of the month (each a processing day), although processing after the end of June can take longer – up to 6 weeks.

That means we need to have your withdrawal request by 5pm, 2 business days before this. If we receive a withdrawal request after this or on a non-business day for us, it will wait for the next processing day.

For withdrawals, we use the unit price next calculated after 5.00pm Sydney time every Tuesday and on the last business day of the month.

The SELECT website contains a timetable for processing days relating to the Fund – visit www.selectfunds.com.au/calendar.aspx.

9acceSSiNG your iNveStMeNt


can there be delays?yes, in some circumstances.

We can delay your access to your money:

if the Fund becomes illiquid (the law dictates this) the law says we can, if we wish, make some money available, and requires us to allocate it on a pro rata basis among those wanting to exit,

if something outside our control impacts on our ability to properly or fairly calculate the unit price (for example, if the investments are subject to restrictions or if there is material market uncertainty) – then we can delay payment for so long as this goes on, or

in order to balance the weekly access to your investment with the potential illiquidity of some of the underlying investments, if the Fund receives requests in respect of any withdrawal processing day which if paid would result in 10% or more of the net asset value of the Fund calculated on that day having been withdrawn over the previous 4 weeks, we can stagger those withdrawal payments over the next 4 weeks (or such longer period as we consider in the best interests of investors). Payments to investors must be in the proportion that their redemption monies bear to all other redemption monies which were payable at that processing day.

Unit prices are generally calculated at the time the delay ends.

Will any deductions be made from payments?Perhaps, in some circumstances.

We may make a deduction from any money payable to an investor for:

any money due to us (as trustee or in any other capacity) by the investor, or

any money we (as trustee or in any other capacity) owe someone else relating to this specific investor (for example, to the tax office).

can you be forced to leave the Fund?yes, but only in very limited circumstances.

Sometimes we can redeem your investment without asking you first:

if you breach your legal obligations to us,

to satisfy money you owe us or anyone else,

you fail to meet any minimum holding we may set from time to time (currently generally $25,000), or

where law allows, or stops you from legally being an investor.

9acceSSiNG your iNveStMeNt


regular reporting to youWe will keep you informed as to your investment.

To keep you informed, we will:

confirm every transaction you make in accordance with the law,

report to you at least monthly on money you invest and your balance (if you want an update at any time, ask us and we will send it to you),

at tax time, send you a report to help you with your tax return,

each year (around September) make the accounts of the Fund available on our website (we will also email or mail them to you if you wish), and

notify you if we change this PDS and any other significant event as required by law.

Copies of documents we may lodge with the ASIC (such as any half-year and annual financial reports) may be obtained from or inspected at an ASIC office. We will email (or if you do not have an email address, post) you copies of any document which we lodge, if you request.

We intend to make information that we are required to disclose to satisfy our continuous disclosure obligations available on our website at www.selectfunds.com.au and you can request a paper copy free of charge from your adviser or by contacting us.

The information in this PDS is subject to change from time to time. If a change is not of such a nature that you would be materially adversely affected by not receiving it, we may update the PDS by notice at www.selectfunds.com.au and you can request a paper copy free of charge from your adviser or by contacting us. Otherwise, we will replace this PDS or issue a supplementary PDS.

Finding out morecontact your adviser, or us.

The most convenient ways to access information on your investment – such as unit prices – are visiting our website, calling your adviser or calling us. If you are investing through a master trust or wrap account then reports on your investment will come from the operator of that service.

information about youit is important you keep us up to date about you.

If you think our records about you are wrong or out of date – particularly your address, email address, or adviser’s details – it is important that you contact us and we will correct them. You must provide us with all information regarding you and your investment which law requires, for example, regarding your identity or the source or use of invested monies.

StayiNG iN touch

10


complaintscontact us.

If you are unhappy with any of our services, you can contact us. We will respond within 2 business days and attempt to resolve it within 45 days. We will tell you further avenues for complaint if you remain unhappy. One of these is to take your complaint to the Financial Ombudsman Service (FOS) (of which we are a member): GPO Box 3, Melbourne, Victoria, 3001 or call 1300 78 08 08. Their email is [email protected].

FOS is an independent body that can assist you if we cannot. In order for a complaint to be considered by FOS, the claim involved must be under $150,000 and from 1 January 2010 under $500,000 (unless we and you agree otherwise in writing).

If you are investing through a master trust or wrap account then complaints should be directed to the operator of that service, not to us.

PrivacyWe do respect what you tell us about yourself.

We use personal information about you to administer your investment, comply with laws and also to conduct research. We also use it to send promotional material to you – if you do not want this, contact us at any time.

We will not tell anyone any information that we have about you unless:

you agree,

the law requires us to,

we consider that they need the information, typically because they are your adviser or to assist us, or

to administer your investment.

If you do not provide us with your contact details and other information we may not be able to have or keep you as an investor.

If our details about you are wrong, we will correct them free of charge if you let us know.

A copy of our Privacy Policy is available on our website at www.selectfunds.com.au.

StayiNG iN touch

10


the constitutionthis is at the heart of our legal relationship with you.

Our legal relationship with you is governed by the Fund’s constitution together with this PDS and certain financial services laws. We will send you a copy of the constitution for free if you ask.

Some of the provisions of the Fund’s constitution are discussed elsewhere in this PDS. Other provisions relate to:

the nature of units of the Fund – all are identical within the Fund,

our powers and how and when we can exercise them,

our ability to combine the investments of the Fund with other assets, as ASIC policy allows,

when the Fund terminates (we can terminate it at anytime) or when we retire and what happens if we do (if we terminate the Fund you share the net proceeds from us selling the investments), and

changing the constitution (we will get your approval for any changes which are adverse to investors’ rights).

transferring your unitsyou can transfer your units.

If you want to transfer your units, speak to us or, if you have invested via a master trust or wrap account, speak to the operator and they will contact us.

We have the required form and you will generally need to pay stamp duty.

Meetingsyou can generally attend and vote at any investor meetings.

Meetings are an uncommon event. However, investors can attend and generally vote at meetings. They are largely regulated by the Corporations Act.

The quorum for a meeting of investors is generally at least 2 investors present in person or by proxy together holding at least 10% of all units in the Fund.

changing the responsible entityWe can retire or be removed.

Retirement and removal is largely regulated by the Corporations Act. Investors can requisition a meeting to propose we be removed. The quorum for a meeting where there is any proposal to remove us is at least 2 investors present in person or by proxy together holding at least 75% of all units in the Fund.

terminating the Fundthe Fund can terminate.

We can decide to do this and if we do, we will sell all the investments, pay all monies owing (including fees and expenses) and distribute the net proceeds to investors. We can transfer assets in place of proceeds.

your riGhtS aNd other iMPortaNt iSSueS11


Limits on our responsibilityWe are on the line for almost everything we do.

The constitution does, however, have some limits on when we are liable to you (for example, when we rely in good faith on professional advice) and some limits on our liability.

Subject always to any liability which the Corporations Act might impose on us, if we act in good faith and without gross negligence, we are not liable to you for any loss suffered in any way relating to your investment in the Fund.

The constitution also contains a provision that it alone is the source of our relationship with you and not any other laws (except of course those laws we cannot exclude).

Limits on your responsibilityWe have included provisions in the constitution designed to protect you.

The constitution of the Fund limits your liability to the value of your investment in the Fund and provides that you will not, by reason of being an investor alone, be personally liable to indemnify us and/or any creditor in the event that the liabilities of the Fund exceed the assets of the Fund.

But we cannot give you an absolute assurance about these things – the issue has not been finally determined by Australian courts.

LegalThe Fund is an Australian resident open-ended unit trust operated as a registered managed investment scheme.

ASIC takes no responsibility for the contents of this PDS.

Baker Steel has given its written consent to the inclusion of statements concerning it, its investment and risk management approach and its directors in this PDS in the form and context in which such statements are included. Apart from this, Baker Steel does not make any statements or representations in or take any responsibility (whether express or implied) for any parts of this PDS.

The offer made in this PDS is available only to persons receiving this PDS in Australia (electronically or otherwise). If you received this PDS electronically, we will provide a paper copy free of charge upon request during the life of this PDS.

The information contained in this PDS is general information only and does not take into account your individual objectives, financial situation or requirements. You should seek professional advice before investing or dealing with your investment.

Unless otherwise stated, all figures are in Australian dollars and are inclusive of the net impact of GST.

GlossaryFor further information on terms and phrases used in this PDS visit www.selectfunds.com.au/glossary and you can request a paper copy free of charge from your adviser or by contacting us.

11your riGhtS aNd other iMPortaNt iSSueS


hoW to coNtact uS

12Administrator BNPParibasFundServices

AustralasiaPtyLtd

C/– Registry Services Department PO Box R209 Royal Exchange NSW 1225 Australia

Fax: +61 2 9222 0010

Investorenquiries SelectAssetManagementLimited

Level 10 2 Bulletin Place Sydney NSW 2000

Phone: +61 2 8252 2200 Fax: +61 2 8252 2201 www.selectfunds.com.au [email protected]

Auditorandtaxadviser Ernst&Young

Ernst & Young Centre 680 George Street Sydney NSW 2000

Legaladviser Baker&McKenzie

AMP Centre, 50 Bridge Street Sydney NSW 2000

This page has been left blank intentionally.

AdministratorBNPParibasFundServicesAustralasiaPtyLtdC/–RegistryServicesDepartmentPO Box R209Royal ExchangeNSW 1225 AustraliaF: +61 2 9222 0010

Registered officeSelectAssetManagementLimitedLevel 10, 2 Bulletin Place, Sydney NSW 2000 AustraliaP: +61 2 8252 2200 F: +61 2 8252 2201W: www.selectfunds.com.auE: [email protected]

Australian financial services licence no. 223271

ApplicAtion form bookletIssued by Select Asset Management Limited ABN 94 101 103 011AFS Licence No. 223271

contentS

Important Information 3

The Application – Section A 6

The Application – Section B 9

Identification Forms 14

Identification Form 1 – Individuals 15

Identification Form 2 – Companies 16

Identification Form 3 – Trusts and Trustees 21

3SELECT ASSET MANAGEMENT APPLICATION FORM BOOKLET – SEPTEMBER 2009 AUSTRALIAN AND NEW ZEALAND EDITION

About this bookletFor each account you wish to open, you will need generally to complete:

an application form, and

one of the attached identification forms.

before you startDo not complete this application form without making an informed investment decision!

You should read all of the current product disclosure statement (PDS) carefully before you invest. The PDS is an important document and we encourage you to seek professional advice — investing is an important discipline and decisions should be taken wisely.

Paper application forms should always be accompanied by a paper copy of the current PDS. Electronic application forms (such as downloaded and emailed copies) should always be attached to the current PDS (in the same file).

If the PDS is missing, do not complete this form. Instead, contact your adviser or us and we will send you the current PDS free of charge. Prior to its completion and signing, this application form must not be handed to any person unless accompanied by the PDS and any supplementary PDS.

practicalitiesPrint clearly!

And use a dark pen.

If you make a mistake, then cross it out and initial the change. Do not use white out or liquid paper.

If you run out of room, photocopy the page you need, or just attach the information clearly. Ensure that you complete all required fields to avoid delays with processing your application.

We will not accept some applicationsWe do not accept applications from:

individuals less than 18 years old in their own name — a guardian must be the applicant,

individuals who are in bankruptcy, or

unincorporated associations and unincorporated co-operatives — if incorporated, that is fine.

In any case, we can refuse any application in whole or part and need not give reasons although we do not generally do this.

Application moneyCheques are acceptable

We accept personal and bank cheques from Australian and New Zealand financial institutions like banks, building societies, credit unions and cash management trusts.

Cheques should be crossed “not negotiable” for your own peace of mind, and should be made payable to:

[choose correct fund name from the list below], [your name]

For example, to invest in the Select Defensive Portfolio, complete your cheque as follows:

SAML-SDP, John Smith

You will need to give us a separate cheque for each investment.

Electronic funds transfers also work

We generally accept electronic funds transfers from Australian or New Zealand accounts only — account details are below.

Use the name of the applicant as the reference when making the transfer.

Call us if you wish to transfer funds from any other country.

You will need to make a separate funds transfer for each fund investment.

Forms of payment we do not accept

We do not accept cash, foreign cheques (other than from New Zealand although we do not recommend this as the processing time can be long) or money orders. We do not currently accept BPay payments.

Payment details

Please refer to the table below for payment details.

For New Zealand investors: the BIC code for fund transfers is WpAcAU2S. Please include your name and the relevant Fund name as your reference details on electronic funds transfers.

fund cheque payable to

bSb/Account number for funds transfers

Select Defensive portfolio

SAML-SDP 032-002/ 355143

Select Growth portfolio

SAML-SGP 032-002/ 355370

Select Alternatives portfolio

SAML-SAP 032-002/ 379356

Select listed investments fund

SAML-SLIF 032-002/ 446758

Aspect futures fund

SAML-AFF 032-002/ 544921

baker Steel Gold fund

SAML-BSGF 032-002/ 389925

importAnt informAtion

4 SELECT ASSET MANAGEMENT APPLICATION FORM BOOKLET – SEPTEMBER 2009 AUSTRALIAN AND NEW ZEALAND EDITION

Where to send the forms?Your adviser can look after lodgement of the application and accompanying identification form for you, else you will need to send it to our administrator:

BNP Paribas Fund Services Australasia Pty LtdC/— Registry Services DepartmentPO Box R209Royal Exchange NSW 1225Australia

We do not accept faxed or emailed copies of this form or any document accompanying it.

Who completes the application form?It is very important to write the correct details in your form. Take a moment to find which category below best describes you.

What type of investor are you?

…then this is the name of your account

…and this is the tax number or exemption you should complete for

…and this is who must sign

individual

John Smith John Smith John Smith John Smith plus witness

Joint and several

John Smith and Jane Smith John Smith and Jane Smith John Smith and Jane Smith John Smith and Jane Smith

Several

John Smith and Jane Smith jointly

John Smith and Jane Smith John Smith and Jane Smith John Smith and Jane Smith

company

Smith Pty Limited Smith Pty Limited Smith Pty Limited

2 directors OR

a company secretary and a director OR

sole director

trustIndividual trustees

John Smith and Jane Smith as trustees for the Smith Family Super Trust

John Smith and Jane Smith as trustees for the Smith Family Super Trust

John Smith OR Jane Smith AND Smith Family Super Trust

John Smith and Jane Smith

trustCorporate trustee

Smith Pty Limited as trustee for the Smith Family Super Trust

Smith Pty Limited as trustee for the Smith Family Super Trust

Smith Pty Limited AND Smith Family Super Trust

2 directors OR

a company secretary and a director OR

sole director

Deceased estate

Jane Smith as trustee for the estate of the late John Smith

Jane Smith as trustee for the estate of the late John Smith

Estate if available else executor

Executor plus witness

investing for a child under 18

Jane Smith for Johnny Smith (minor)

Parent/guardian details Parent/guardian Parent/guardian plus witness

Attorney or agent

John Smith as attorney for Jane Smith

Attorney or agent

John Smith

Their appointer

Jane Smith

Attorney or agent

John Smith

borrowing from a margin lender

ABC Margin Lending Limited

Margin lender


Margin lender


Margin lender


importAnt informAtion (cont.)


What about tax file numbers?Most investors quote their Tax File Number (TFN) or an exemption code.

It is not an offence to choose not to quote your TFN or exemption.

However, if you do not provide your TFN or exemption, this may delay your application and in any case we must withhold an amount at the highest marginal tax rate plus Medicare levy from any distribution to you.

Some people and organisations can claim an exemption from quoting a TFN or ABN even if their investment earns them income more than or equal to the relevant threshold. These include certain non-residents, pensioners and non-profit organisations. The codes to use in the application form are noted below.

We recommend you ask your accountant if you are unsure. If you are not an Australian investor, please give us your tax or inland revenue department number.

the investor is: the exemption code is:

a recipient of a centrelink (age or disability support) or Service (veteran’s) pension

444444441

a recipient of other eligible centrelink pension or benefit

For example, parenting payment and widow allowance. New start allowance and sickness allowance are not eligible benefits for exemption purposes.

444444442

an entity not required to lodge an income tax return

For example, a ‘not for profit’ organisation.

555555555

an investor in the business of providing consumer or business finance

666666666

a norfolk island resident 777777777

a non-resident 888888888

What am i agreeing to when i sign?You are agreeing to some important things, and you should read this part carefully.

In signing this form (or in authorising someone to sign it for them), the applicant is telling us that they have read the current PDS and any supplementary PDS, and they agree to be bound by the constitution of the relevant fund as amended from time to time.

They and any person so authorised are also telling us that the information given to us:

is complete and correct,

if about another person, has been provided under any necessary authority,

may be used in connection with any of the actual or potential provision of products or services from us or any agent in any capacity, and

can be used as our privacy policy allows and as law allows or requires (such as under anti-money laundering and counter-terrorism financing laws).

It can be a criminal offence to (amongst other things) knowingly provide:

false or misleading information on this form, or

false documents in support of any information on this form.

Questions?Call your adviser, or contact us as follows:

Select Asset management limitedABN 94 101 103 011AFSL No. 223271

Level 102 Bulletin PlaceSydney NSW 2000 Australia

Phone: +61 2 8252 2200 (Request Customer Service)Fax: +61 2 8252 2201

[email protected]

importAnt informAtion (cont.)


Account name? It is important that you correctly describe your account name — please refer to the guidance on page 4 of this application booklet.

Account name

What are each investor’s details? If you are an individual or a company, simply complete the first column. If you are a trust and there is more than one trustee, complete

the first column — that is, for one trustee only — we will ask about the other trustees later in the application.

If there is more than one investor (typically, when spouses apply) then complete each column. We assume such investors are investing jointly and severally, and note that all investors will need to sign to transact on the account.

the ApplicAtionSection A

Title

Name or full company name for companies as registered by ASIC or the New Zealand Companies Office

Business names are not acceptable.

Residential addressor registered office for companies

PO Boxes are not acceptable.

State Postcode

Country

Date of birth for individuals

D D / M M / Y Y

Title

Name or full company name for companies as registered by ASIC or the New Zealand Companies Office




State Postcode

Country

Date of birth for individuals

D D / M M / Y Y

investor 1 investor 2

Already an investor?Does this application relate only to a further investment in one or more funds?

Yes — my investor number is — go to Section B (page 9)

No, please continue.


Phone numbersBusiness

( )

After hours

( )

Mobile

Usual occupation For companies, trustees and other applicant types, what is your business?

1

2

Sole trader? If yes: What is your full business name?

What is your place of business if different from your residential address?


State Postcode

Country

ACN or New Zealand company numberFor companies, or ARSN for registered schemes

Bankrupt? For individuals, are you currently bankrupt?

Yes No

What is your Tax File Number or for New Zealand investors, your IRD number or exemption code?

Your TFN is generally an eight or nine digit number. Australian companies can choose to write their ABN instead.

TFN exemption codes are listed on page 5.

For New Zealand investors, your IRD number is a unique number issued to you by Inland Revenue. Your IRD number will be in the range of 10-000-000 to 999-999-999.

Phone numbersBusiness

( )

After hours

( )

Mobile

Usual occupation For companies, trustees and other applicant types, what is your business?

1

2

Sole trader? If yes: What is your full business name?

What is your place of business if different from your residential address?


State Postcode

Country

ACN or New Zealand company numberFor companies, or ARSN for registered schemes

Bankrupt? For individuals, are you currently bankrupt?

Yes No

What is your Tax File Number or for New Zealand investors, your IRD number or exemption code?

Your TFN is generally an eight or nine digit number. Australian companies can choose to write their ABN instead.

TFN exemption codes are listed on page 5.

For New Zealand investors, your IRD number is a unique number issued to you by Inland Revenue. Your IRD number will be in the range of 10-000-000 to 999-999-999.

investor 1 (cont.) investor 2 (cont.)

the ApplicAtionSection A (cont.)


the ApplicAtionSection A (cont.)

What is your contact email address? You may care to direct this to your adviser or authorised

signatory (see page 11).

What is your address for post? You may care to direct this to your adviser or authorised

signatory (see page 11).

State Postcode

Country

investor 1 (cont.) investor 2 (cont.)

What is your contact email address?

Same email address as Investor 1.

You may care to direct this to your adviser or authorised signatory (see page 11).

What is your address for post?

Same address as Investor 1.

You may care to direct this to your adviser or authorised signatory (see page 11).

State Postcode

Country


What funds would you like to invest in? Complete this section even if you are already an investor.

Please refer to the relevant PDS for the times by when your application and cleared funds must be received.

The minimum amount you can invest is generally AUD$25,000 or NZ$25,000, and after this there is generally no minimum investment so long as you maintain this as a minimum balance.

Reinvesting your distribution can be beneficial — your investment grows faster and you pay less fees because no buy spread is charged. You can also vary this decision once you are an investor.

You need not complete the reinvestment section if you are already an investor in this fund. You can use this section to change your preferences if you wish.

the ApplicAtionSection b

fund Amount reinvest distribution?

Select Defensive portfolio $

Select Growth portfolio $

Select Alternatives portfolio $

Select listed investments fund $

Aspect futures fund $

baker Steel Gold fund $

Yes No

Yes No

Yes No

Yes No

Yes No

Yes No


please tell us about the moneys you are investing

Complete this section even if you are already an investor.

We are asking these questions because the Australian Government has implemented new laws designed to improve its anti-money laundering and counter-terrorism financing system.

1. From what country or countries do the moneys you are investing originate?

You can leave this blank if the answer is Australia or New Zealand.

2. When we pay you moneys will they be sent outside Australia or New Zealand?

Yes No

If yes what country or countries?

3. Do you think it possible that the moneys invested or received back from the fund may or will be associated with crime, terrorism or that your investment is part of a structure to avoid anti-money laundering and counter-terrorism financing laws?

Yes or maybe No

If yes or maybe, please explain:

4. Are you using borrowed money?

If you are borrowing from a margin lender, normally they will become the investor, and you do not need to complete any of the attached identification forms.

Yes No

If yes, who is the lender?

If your lender is not an institution like a bank or a margin lender, please explain:

5. Does anyone control you in relation to this investment?

By control, we mean practical control in all circumstances, including because of legal or other duties or understandings. The practical influence (rather than the rights) is the issue to consider.

Yes or maybe No

If yes or maybe, please explain:

the ApplicAtionSection b (cont.)


how would you like to receive reports from us? You need not complete this section if you are already an investor in this fund. You can use this section to change your preferences if

you wish.

We will send to each investor and your adviser (unless you do not want us to email your advisor in which case please tick the box below):

regular fund reporting,

the annual financial statements for the fund, and

marketing material from us.

We send material by email (or by mail if you have no email).


Please do not email my adviser

Please do not email me any marketing material

Please consider the environment before ticking the following:

Please mail me a paper copy of my regular fund reporting

Please mail me a paper copy of the annual financial statements (note that our most recent accounts are always available at www.selectfunds.com.au)

investor 1 investor 2

Please do not email my adviser

Please do not email me any marketing material

Please consider the environment before ticking the following:

Please mail me a paper copy of my regular fund reporting

Please mail me a paper copy of the annual financial statements (note that our most recent accounts are always available at www.selectfunds.com.au)

Your adviserWe will need to know if you have an adviser:

You are NOT required to have an adviser, but we would encourage you to seek appropriate independent professional advice from your financial adviser and tax specialist or accountant — investing is an important discipline and decisions should be taken wisely.

Adviser’s name

Adviser’s phone

( )

Adviser’s mobile

Adviser’s email

Dealer’s name

Dealer and Adviser ID

Adviser’s fax

( )

AFSL Number


What are your account details?

We pay income and withdrawals to this financial institution account.

If you do not complete this section, we will send you a cheque (or to investor 1 if there is more than one investor).

The account name should be the same or have a reasonable association with your name.

We prefer that the name of the applicant is the same as the name of the person who writes the cheque or the account from where the moneys come as relevant. We may not be able to accept the application if there is not what we consider to be a reasonable association between the two or there may be delays in payments.

Name of institution

Branch

Account Number (for New Zealand investors include Bank ID - Branch - Account Number - Account type)

Account Name


Australian BSB

–

Authorised signatory’s name

Authorised signatory’s phone

( )

Authorised signatory’s fax

( )

Authorised signatory’s email

Authorised signatory’s signature

Authorised signatory’s mobile

Authorised signatory?You might like to authorise someone to operate your account

Warning: this is not compulsory. This person will be able to act in relation to your account AS IF THEY WERE YOU. They will be able to do this UNTIL YOU TELL US THEY CAN NO LONGER ACT IN THIS WAY. Please think carefully before you appoint someone, and revisit your appointment as circumstances may change (for example, your adviser or partner changes).



Sign here It is important that the right people sign here. See “Who completes the application form?” on page 4 of this booklet.

If you are an agent, attorney, appointed guardian or appointed representative, by signing you are confirming your authority to act.

Signature 1

Name

Capacity

Date

D D / M M / Y Y

Signature 2

Name

Capacity

Date

D D / M M / Y Y

Witness’s signature

Name

Position (if any), organisation (if any) and address

State Postcode

Country

Date

D D / M M / Y Y

Witness’s signature

Name

Position (if any), organisation (if any) and address

State Postcode

Country

Date

D D / M M / Y Y


complete the form which best describes youYou will also need to choose and complete one of the following identification forms.

Australian law requires that we ask you certain questions and that you provide certain documents which identify you. You can choose the correct attached identification form to complete depending on your needs.

Identification forms for:

individuals (page 15),

companies (page 16), and

trusts and trustees (page 21).

What if there is no identification form for you?If you are:

a partnership,

an incorporated association,

a co-operative, or

a Government body,

then contact us and we will send them to you.

Who can certify copies of documents?You will need to give us “certified copies” of documents which identify you.

This means a document that has been certified as a true copy of an original document by certain persons.

The person certifying the document should write their qualification beneath their signature as follows:

I [name] of [address] being [capacity e.g. Justice of the Peace] certify this and the following [x] pages as a true copy of the original document.

We may need to contact this person, so please give us their contact details:

Name

Business phone

( )

Mobile

iDentificAtion formS

My certifier is:

my financial adviser being an officer with, or authorised representative of, a holder of an Australian financial services licence (or foreign equivalent), having 2 or more continuous years of service with one or more licensees.

my accountant being a member of the Institute of Chartered Accountants in Australia, CPA Australia or the Australian National Institute of Accountants (or foreign equivalent) with 2 or more years of continuous membership.

my lawyer being a person who is enrolled on the roll of the Supreme Court of a State or Territory, or the High Court, of Australia or foreign country, as a legal practitioner (however described).

an Australian justice of the peace, notary public or a police officer (or foreign equivalent)

a post office worker, being:

an agent of the country’s Postal Corporation who is in charge of an office supplying postal services to the public, or

a permanent employee of the country’s Postal Corporation with 2 or more years of continuous service who is employed in an office supplying postal services to the public.

a bank or financial institution officer being an officer with 2 or more continuous years of service with one or more financial institutions or companies.

a consular officer being a consular officer or diplomatic officer.

a judge, magistrate, chief executive officer of a court, or registrar or deputy registrar of a court.

i am completing this form for someone else…If you are an attorney, appointed guardian, or appointed representative, you must also provide a certified copy of the power of attorney document, guardianship order, grant of probate, letters of administration, will or any other documentation confirming your authority to act.


been here before?If you have completed this identification form for us before for any of our funds, you do not have to do this all over again.

Yes, I already have an investor number:

You can stop here!

No, complete section C below:

Section cWe are obliged to verify both:

your full name, and

either your date of birth or your residential address from a certified copy of the documents as set out below.

So:

complete the PRIMARY IDENTIFICATION DOCUMENTS section below, OR

if you do not have a document from that section, complete either the SECONDARY IDENTIFICATION DOCUMENTS section or NON-AUSTRALIAN IDENTIFICATION DOCUMENTS section (as relevant), and

attach a certified copy of the documents to this form.

Do not send original documents. We will retain all certified copies.

If you are borrowing from a margin lender, normally they will become the investor, and you do not need to complete any of the attached forms.

Documents in a language other than English must be accompanied by an English translation prepared by an accredited translator.

primary identification DocumentsSelect ONE valid option from this section only:

Australian State/Territory driver’s licence containing a photograph of the person (please copy front and back of licence because we will need to check your address),

Australian passport (a passport that has expired within the preceding 2 years is acceptable) — you only need to copy the pages which identify you,

Card issued under an Australian State or Territory for the purpose of proving a person’s age containing a photograph of the person, or

Non-Australian passport or similar travel document containing a photograph and the signature of the person*.

iDentificAtion form 1inDiviDUAlS

Secondary identification DocumentsOnly complete this part if you do not have a document from the Primary Identification Documents section.

Select ONE valid option from this section:

Australian birth certificate,

Australian citizenship certificate,

Pension card issued by Australia’s Centrelink (please copy front and back of pension card), or

Health card issued by Australia’s Centrelink.

And ONE valid option from this section:

A document issued by the Australian Commonwealth or an Australian 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 Australian Commonwealth (or by the Australian Commonwealth to the individual), which contains the individual’s name and residential address,

A document issued by a local Australian government body or an Australian utilities provider within the preceding 3 months which records the provision of services to that Australian address or to that person (the document must contain the individual’s name and residential address), or

If under the age of 18, a notice that: was issued to the individual by an Australian 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.

non-Australian identification DocumentsOnly complete this part if you do not have a document from the Primary Identification Documents section.

Copies of BOTH documents from this section must be presented:

Non-Australian driver’s licence that contains a photograph of the person in whose name it issued and the individual’s date of birth, and

National ID card issued by a non-Australian government containing a photograph and a signature of the person in whose name the card was issued (if this is not available, a birth certificate).

* Documents that are written in a language that is not English must be accompanied by an English translation prepared by an accredited translator.


1.2 Company type

Public — go to 1.5 Proprietary — continue

1.3 Directors This part 1.3 only needs to be completed by proprietary

companies other than public, listed or regulated companies (regulated means one which is licensed by an Australian Commonwealth, State or Territory statutory regulator and we expect that most companies will not hold any licence).

How many directors are there?

Provide the name of each director below:

Director 1 – Name

Director 2 – Name

Director 3 – Name

Director 4 – Name

iDentificAtion form 2compAnieS



You can stop here!

No, complete section C below (for non-Australian companies, go to section 2.1):

Section cAustralian companies1.1 Regulatory details

Tick one of the following (assuming one applies to you):

Regulated company this means one which is licensed by an Australian

Commonwealth, State or Territory statutory regulator (we expect that most companies will not hold any licence)

Regulator

Licence details

Australian listed company licensed by an Australian Commonwealth, State or

Territory statutory regulator

Name of market/exchange

Majority-owned subsidiary of an Australian listed company

Name of listed company



iDentificAtion form 2compAnieS (cont.)

1.4 Shareholders

1.4 must be completed by all Australian proprietary companies (unless regulated — one which is licensed by an Australian Commonwealth, State or Territory statutory regulator but we expect that most Australian proprietary companies will not hold any licence).

Provide details below of all the individuals who are beneficial owners, through one or more shareholdings, of more than 25% of the company’s issued capital.

Name

Residential address


State Postcode

Country

Shareholder 1 Shareholder 2

Name

Residential address


State Postcode

Country

Name

Residential address


State Postcode

Country

Shareholder 3 Shareholder 4

Name

Residential address


State Postcode

Country


1.5 What documents do you have to give us?

For most companies, we are obliged to verify:

the full name of the company as registered by ASIC,

whether the company is registered as a proprietary or a public company, and

the ACN issued to the company.

from:

an original or certified copy of a search of the ASIC database, or

a certified copy of the certification of registration issued by ASIC.

For a company which is:

an Australian listed company,

a majority owned subsidiary of an Australian listed company, or

a regulated company (i.e. licensed by an Australian Commonwealth, State or Territory statutory regulator).

we are obliged to verify that the company is (as applicable):



a regulated company.

from one or more of the following:

a search of the relevant market/exchange

a search of the relevant ASIC database

search of the licence or other records of the relevant Commonwealth, State or Territory statutory regulator

a public document issued by the relevant company

non-Australian companies

2.1 General information

Full name

Country of formation

Registered?

Yes No

Regulator

2.2 Is the non-Australian company registered with ASIC?

Registered with ASIC?

Yes, ARBN

No, any non-Australian company identification number

2.3 Principal place of business

Principal place of business OR local agent name and address details


State Postcode

Country

2.4 Registered address PO Boxes are not acceptable.

State Postcode

Country




2.5 Regulatory details

Tick one of the following (assuming one applies to you).

Regulated company this means one which is licensed by an Australian Commonwealth, State or Territory statutory regulator (we expect that most non-Australian companies will not hold any licence)

Regulator

Licence details

Listed company



Name of listed Australian company

Name of Australian market/exchange

2.6 Company type

Public Proprietary Other

2.7 Directors

This part 2.7 only needs to be completed by companies other than public or listed companies.


Provide the name and address of each director in the next column.

Director 1 – name

Director 2 – name

Director 3 – name

Director 4 – name

2.8 Shareholders This part 2.8 only needs to be completed by companies

other than public or listed or regulated companies (regulated means one which is licensed by an Australian Commonwealth, State or Territory statutory regulator but (we expect that most companies will not hold any licence).


Name

Residential address


State Postcode

Country

Shareholder 1

Shareholder 2

Name

Residential address


State Postcode

Country


2.9 What documents you must give us

For non-Australian companies registered with ASIC, we are obliged to verify:

the full name of the company as registered by ASIC,

the ARBN issued to the company,

whether it is registered by a foreign registration body and if so,

whether it is registered as a private company or a public company.

from:

an original or certified copy of a search of the ASIC database,

an original or certified copy of a search of the relevant foreign registration body, or

a certified copy of the certification of registration issued by ASIC or by the relevant foreign registration body.

Name

Residential address


State Postcode

Country

Shareholder 3

Name

Residential address


State Postcode

Country

Shareholder 4

For non-Australian companies not registered with ASIC, we are obliged to verify:

the full name of the company,

whether it is registered by a non-Australian registration body and if so,

whether it is registered as a private or a public company,

the identification number issued to the company,

from:

an original or certified copy of a search of the relevant foreign registration body, or

an original or certified copy of the certification of registration issued by the relevant non-Australian registration body.

If the above means are unavailable, a disclosure certificate from the company given by an individual acting as agent of the company (where the agent has been verified) can be used. Contact us for details.




a regulated company (one which is licensed by an Australian Commonwealth, State or Territory statutory regulator but we expect that most companies will not hold any licence).

we are obliged to verify that the company is:



a regulated company,

from:







1.2 Type of trust

Tick one of the following:

Registered managed investment scheme

ARSN

If you have ticked this box, you can go to 1.5.

Regulated trust for example, an Australian self managed super fund

(or SMSF))

Regulator

For example, the ASIC, the APRA or the ATO.

ABN or registration number


Government superannuation fund

Establishing legislation


Other trust type, please specify:

For example, non-Australian super fund, deceased estate, charitable trust, family discretionary trust, unit trust or group investment fund.

Remember that you have ticked this box! It will be useful as you complete this form!



You can stop here!

No, complete section C below:

iDentificAtion form 3trUStS AnD trUSteeS

Section cAll trustees must complete Part 1 and one of the following sections for ONLY ONE of the trustees:

Part 2 – the trustee is an Individual,

Part 3 – the trustee is an Australian company, or

Part 4 – the trustee is a non-Australian company.

pArt 1All trustees to complete

If there is more than ONE trustee then complete this Part 1 for one of the trustees only.


Full name of trust

Business name

Country where established


1.3 Beneficiary details

Only complete this part 1.3 if you are an “other trust type”.

Do the terms of the trust identify the beneficiaries only by reference to membership of a class? (e.g. family, unitholders or unnamed charities).

Yes, please detail

Now go to Part 1.4

No, the terms of my trust name the beneficiaries, then please continue

How many beneficiaries are there?

Provide full name of each beneficiary:

Copy this sheet if you need to name more beneficiaries.

1

2

3

4

5

6

7

8

9

10

11

12

13

14

iDentificAtion form 3trUStS AnD trUSteeS (cont.)


1.4 Trustee Details

Only complete this part 1.4 if you are an “other trust type”.

How many trustees are there?

Please provide full name and address of each trustee below:

Name or full company name for companies




State Postcode

Country

Date of birth

D D / M M / Y Y

ACN or New Zealand company number

trustee 1





State Postcode

Country

Date of birth

D D / M M / Y Y


trustee 3





State Postcode

Country

Date of birth

D D / M M / Y Y


trustee 2





State Postcode

Country

Date of birth

D D / M M / Y Y


trustee 4



1.5 Documents you must give us for the trust

For:

an Australian registered managed investment scheme,

an Australian regulated trust, or

an Australian government superannuation fund,

we are obliged to verify:

the full name of the trust, and

that the trust is a registered managed investment scheme, regulated trust or government superannuation fund, as applicable,

from:

a search of the ASIC, ATO or relevant regulator’s website (e.g. “Super Fund Lookup” at www.abn.business.gov.au), or

a certified copy or relevant extract of the legislation establishing the government superannuation fund sourced from a government website.

For:

“other trust type” whether Australian or foreign,


the full name of the trust,

from:

a notice issued by the Australian Taxation Office within the last 12 months (e.g. a Notice of Assessment). Block out the TFN before scanning, copying or storing this document,

a letter from a solicitor or qualified accountant that confirms the name of the trust, or

an original or certified copy or certified extract of the trust deed.



pArt 2individual trustees to complete

Part 2 needs to be completed for only ONE of the individual trustees.

Part 2 does not require you to tick any more boxes, but it does tell you what documents we need from you.

For the selected individual trustee, we are obliged to verify both:

your full name, and

either your date of birth or your residential address from a certified copy of the documents as set out below.

So:

complete the PRIMARY IDENTIFICATION DOCUMENTS section below, OR

if you do not have a document from that section, complete either the SECONDARY IDENTIFICATION DOCUMENTS section or NON-AUSTRALIAN IDENTIFICATION DOCUMENTS section (as relevant), and

attached a certified copy of the documents to this form.

DO NOT SEND ORIGINAL DOCUMENTS. WE WILL RETAIN ALL CERTIFIED COPIES.

If you are borrowing from a margin lender, normally they will become the investor, and you do not need to complete any of the attached forms.

Documents in a language other than English must be accompanied by an English translation prepared by an accredited translator.

Primary Identification Documents

Select ONE valid option from this section only:

Australian State/Territory driver’s licence containing a photograph of the person (please copy front and back of licence because we will need to check your address),

Australian passport (a passport that has expired within the preceding 2 years is acceptable) — you only need to copy the pages which identify you,

Card issued under an Australian State or Territory for the purpose of proving a person’s age containing a photograph of the person, or

Non-Australian passport or similar travel document containing a photograph and the signature of the person*.

Secondary Identification Documents

Only complete this part if you do not have a document from the Primary Identification Documents section.

Select ONE valid option from this section:

Australian birth certificate,

Australian citizenship certificate,

Pension card issued by Australia’s Centrelink (please copy front and back of pension card), or

Health card issued by Australia’s Centrelink.

AND ONE valid option from this section:

A document issued by the Commonwealth or a State or Territory of Australia 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 Australian Commonwealth (or by the Australian Commonwealth to the individual), which contains the individual’s name and residential address,

A document issued by an Australian 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), or

If under the age of 18, a notice that: was issued to the individual by an Australian 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.

Non-Australian Identification Documents

Only complete this part if you do not have a document from the Primary Identification Documents section.

Copies of BOTH documents from this section must be presented:

Non-Australian driver’s licence that contains a photograph of the person in whose name it issued and the individual’s date of birth, and

National ID card issued by a non-Australian government containing a photograph and a signature of the person in whose name the card was issued (if this is not available, your birth certificate).


* Documents that are written in a language that is not English must be accompanied by an English translation prepared by an accredited translator.


Name

Residential address


State Postcode

Country

Shareholder 1

pArt 3Where the trustee is an Australian company

All Australian companies which are trustees must complete Part 3.



Regulated company this means one which is licensed by an Australian Commonwealth, State or Territory statutory regulator (we expect that most companies will not hold any licence)

Regulator

Licence details

Australian listed company licensed by an Australian Commonwealth, State or

Territory statutory regulator



Name of listed company


3.2 Company type

Public

If the trust is a registered managed investment scheme, regulated trust (eg a self managed super fund (or SMSF)) or government superannuation fund, the form is now COMPLETE.

But if you are still an ‘Other trust type’, please go to 3.5.

Proprietary — please continue to 3.3.

3.3 Directors

Only proprietary companies need complete 3.3.


Provide the name of each director below:

Director 1 – name

Director 2 – name

Director 3 – name

Director 4 – name

3.4 Shareholders

3.4 must be completed by all proprietary companies (unless regulated — in one which is licensed by an Australian Commonwealth, State or Territory statutory regulator but we expect that most proprietary companies will not hold any licence).




Name

Residential address


State Postcode

Country

Shareholder 2

Name

Residential address


State Postcode

Country

Shareholder 3

Name

Residential address


State Postcode

Country

Shareholder 4


3.5 Documents you must give us for the trustee




a regulated company (i.e. licensed by an Australian Commonwealth, State or Territory statutory regulator),

we are obliged to verify that the company is (as applicable):









For:

“Other trust type”


the full name of the trustee,

whether it is a proprietary (Pty) or public (Limited) company, and

the ACN,

from:

a search of the relevant ASIC database, or

an original or certified copy of the certification of registration issued by ASIC.





Regulated company this means one which is licensed by an Australian Commonwealth, State or Territory statutory regulator (we expect that most companies will not hold any licence)

Regulator

Licence details

Listed company licensed by an Australian Commonwealth, State or Territory statutory regulator



Name of listed Australian company

Name of Australian market/exchange

4.6 Company type

Public – go to 4.9 Proprietary Other

pArt 4Where the trustee is a non-Australian company


Full name

Country of formation

Registered by a non-Australian body?

Yes No

Regulator

4.2 Is the non-Australian company registered with ASIC?

Registered with ASIC?

Yes, ARBN

No, any non-Australian company identification number

4.3 Principal place of business

Principal place of business OR local agent name and address details


State Postcode

Country

4.4 Registered address

Registered address


State Postcode

Country



4.7 Directors

All company trustees must complete this part 4.7 other than public or listed companies.


Provide the name and address of each director below:

Director 1 – name

Director 3 – name

Director 2 – name

Director 4 – name

4.8 Shareholders

All company trustees must complete this part 4.8 other than public, listed or regulated companies (regulated means one which is licensed by an Australian Commonwealth, State or Territory statutory regulator but (we expect that most companies will not hold any licence).


Name

Residential address


State Postcode

Country

Shareholder 1

Name

Residential address


State Postcode

Country

Shareholder 2

Name

Residential address


State Postcode

Country

Shareholder 3

Name

Residential address


State Postcode

Country

Shareholder 4


4.9 What documents you must give us

For “other trust type” where the trustee is a company registered with ASIC, we are obliged to verify:

the full name of the trustee company as registered by ASIC

the ARBN issued to the trustee company

whether it is registered by a non-Australian registration body and if so whether it is registered as a private company or a public company


a search of the ASIC database,

a search of the relevant non-Australian registration body, or

if the ASIC or non-Australian registration body database is not reasonably available, an original or certified copy of the certification of registration.

For “other trust type” where the trustee is a company NOT registered with ASIC, we are obliged to verify:

the full name of the trustee company,

whether it is registered by a non-Australian registration body and if so

– whether it is registered as a private or a public company

– the identification number issued to the trustee company.

from:

a search of the relevant non-Australian registration body such as the New Zealand Companies Office, or

if the non-Australian registration body database is not reasonably available, an original or certified copy of the certification of registration.

If the above means are unavailable, a disclosure certificate from the company given by an individual acting as agent of the company (where the agent has been verified) can be used. Contact us for details.

For “other trust type” where the trustee is:



a regulated company.

we are obliged to verify that the company is:







a search of the licence or other records of the relevant Commonwealth, State or Territory statutory regulator



Thank you for taking the time to fill out this application. Your investment is important to us.

AdministratorBNP Paribas Fund Services Australasia Pty LtdC/— Registry Services DepartmentPO Box R209Royal Exchange NSW 1225Australia

Head officeSelect Asset Management Limited Level 10, 2 Bulletin Place, Sydney NSW 2000 AustraliaP: +61 2 8252 2200 F: +61 2 8252 2201W: www.selectfunds.com.auE: [email protected]

Australian Financial Services Licence No. 223271

Date post:	18-Mar-2020
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