MLC MultiActive
Product Disclosure Statement
Issued by:Preparation date:
The Responsible Entity, IOOF Investment Services Ltd30 November 2023
ABN 80 007 350 405 AFSL 230703
This Product Disclosure Statement (PDS) is the offer document for the following MLC MultiActive trusts, referred to as ‘MLC MultiActive’ or
the ‘Trust(s)’:
APIR code
ARSN
1
Formerly Known asTrusts
IOF0094AU130 096 730IOOF MultiMix Capital Stable TrustMLC MultiActive Capital Stable
IOF0095AU130 093 186IOOF MultiMix Conservative TrustMLC MultiActive Conservative
UFM0051AU100 071 332IOOF MultiMix Moderate TrustMLC MultiActive Moderate
IOF0093AU130 097 059IOOF MultiMix Balanced Growth TrustMLC MultiActive Balanced
IOF0097AU 130 096 945IOOF MultiMix Growth TrustMLC MultiActive Growth
IOF0091AU130 097 175IOOF MultiMix Cash Enhanced TrustMLC MultiActive Cash Enhanced
IOF0096AU130 092 787IOOF MultiMix Diversified Fixed Interest TrustMLC MultiActive Diversified Fixed Income
WPC0012AU115 121 563Specialist Property FundMLC MultiActive Property
IOF0092AU130 093 024IOOF MultiMix Australian Shares TrustMLC MultiActive Australian Shares
IOF0098AU130 093 104IOOF MultiMix International Shares TrustMLC MultiActive Global Shares
1 Australian Registered Scheme Number
Investments in the Trusts are offered by IOOF Investment Services Ltd ABN 80 007 350 405 AFS Licence No. 230703. IOOF Investment
Services Ltd is the Responsible Entity and the issuer of this PDS. IOOF Investment Services Ltd is referred to in this PDS as ‘IISL’, ‘IOOF’,
‘Responsible Entity’, ‘RE’, ‘we’, ‘our’ or, ‘us’. IISL is part of the Insignia Financial Group of Companies, which consists of Insignia Financial Ltd
ABN 49 100 103 722 and its related bodies corporate (Insignia Financial Group).
An investment in the Trusts does not represent an investment in, deposit or other liability of IISL, the investment managers through whom
the Trusts invest, or any other related body corporate within the Insignia Financial Group. There are two other ‘MLC MultiActive’ trusts that
are issued by MLC Investments Limited (MLCI), being the ‘MLC MultiActive High Growth’ ARSN: 096 796 075 and ‘MLC MultiActive Geared’
ARSN 102 215 501. Both IISL and MLCI are part of the Insignia Financial Group. The PDSs for these trusts can be found at mlcam.com.au/
mlctrusts/pds
You should read the relevant PDS before making a decision to acquire or continue to hold an investment in respect of these Trusts.
Investments of the Trusts are held either directly or indirectly in a selection of investments (including units in registered managed investment
schemes) offered by a number of investment management companies.
Units in the Trusts may be issued on the basis of this PDS from 30 November 2023. Units can only be applied for by providing IISL with a
completed application form accompanying this PDS, and any required client identification forms and proof of identity documents.
Neither IISL, the investment managers through whom the Trusts invest, nor any related body corporate within the Insignia Financial Group
guarantees the performance of the Trusts or the return of capital or income. Your investments in the Trusts are subject to investment risk.
This could involve delays in repayment and loss of income on the principal invested.
References to ‘business day’ in this PDS, refer to a business day in Melbourne, Victoria, Australia.
Use of this PDS
The investments offered in this PDS are available only to persons receiving this PDS (electronically or otherwise):
within Australia, or
for any Trust other than MLC MultiActive Property, within New Zealand.
Applications from outside Australia or, where relevant, outside New Zealand will not be accepted.
This PDS is available for those investors wishing to access the Trusts via an Investor Directed Portfolio Service (IDPS) or master trust. When
investing in the Trusts via an IDPS or master trust, the operator of the IDPS or the trustee of the master trust acquires the rights of a unitholder
in the Trusts. In this case, your rights and liabilities will be governed by the terms and conditions of the relevant IDPS offer document or
master trust product disclosure statement, which you must read carefully prior to directing the relevant operator or trustee to invest in the
Trusts (see the ‘Notice to Investor Directed Portfolio Service and Master Trust Investors’ section for further information).
Updated information
The information in this PDS is up to date at the time of preparation and may change from time to time. If a change is considered materially
adverse, we will issue a replacement PDS. Information that is not materially adverse to investors can be updated by us and will be published
on our website ioof.com.au/forms
Alternatively, if you wish to request a free paper copy of the updated information as well as this PDS, you can:
contact Investor Services on 1800 002 217 (+613 8614 4966 if calling from New Zealand)
email [email protected]
visit our website ioof.com.au
Contents
4MLC MultiActive summary
6Introduction to MLC MultiActive
6MLC MultiActive range
7Trust profiles and financial advice
8Diversified and Sector Trusts
18Benchmarks
19Responsible investment
20Derivatives
20Significant benefits of investing in MLC MultiActive
21Risks of investing
22Fees and other costs
24Additional explanation of fees and costs
28How to invest in MLC MultiActive
32How we keep you informed
33Taxation
33Additional disclosure information
Important information
All monetary amounts referred to in this PDS are given in Australian dollars and all phone/fax numbers are phone/fax numbers in Australia
(unless stated otherwise).
The information contained in this PDS is of a general nature only and does not take into account your individual objectives, financial
situation or needs. You should consider the appropriateness of this information having regard to your objectives, financial situation and
needs. We strongly recommend you seek professional advice from a financial adviser before deciding to invest in the Trusts.
The Australian Securities and Investments Commission (ASIC) can help you check if a financial adviser is licensed. You can visit ASIC’s
website www.moneysmart.gov.au or contact 1300 300 630.
If you do not have a financial adviser, please contact Investor Services on 1800 002 217 (+613 8614 4966 if calling from New Zealand) who
will be happy to refer you to one.
MLC MultiActive summary
The table below gives you a summary of the current features of the Trusts. These features are subject to change from time to time. Please refer
to ‘How we keep you informed’ and ‘Trust profiles and financial advice’ for further information on the Trusts and how to access the latest
available information.
Minimum recommended
investment period
Benchmark
1
Investment objectiveTrust name
3 yearsCompositeTo provide a low risk investment over the short to medium
term by investing predominantly in defensive assets, and
MLC MultiActive Capital
Stable
to achieve a total return after fees in excess of the Trust’s
benchmark over a rolling three-year period.
3 yearsCompositeTo provide stable returns over the medium term by
investing in a diversified portfolio of defensive assets with
MLC MultiActive
Conservative
some growth asset exposure, and to achieve a total return
after fees in excess of the Trust’s benchmark over a rolling
three-year period.
5 yearsCompositeTo provide capital growth of your investment over the
medium to long term by investing in a diversified portfolio
MLC MultiActive Moderate
of growth and defensive assets, and to achieve a total return
after fees in excess of the Trust’s benchmark over a rolling
five-year period.
5 yearsCompositeTo provide capital growth over the medium to long term
by investing in a diversified portfolio of growth assets with
MLC MultiActive Balanced
some defensive asset exposure, and to achieve a total return
after fees in excess of the Trust’s benchmark over a rolling
five-year period.
7 yearsCompositeTo provide capital growth over the long term by investing
in a portfolio of predominantly growth assets with minimal
MLC MultiActive Growth
defensive asset exposure, and to achieve a total return after
fees in excess of the Trust’s benchmark over a rolling
seven-year period.
Sector trusts
1 yearBloomberg AusBond Bank
Bill Index
To provide stable returns with low risk over the short term
by investing in a range of cash, short term securities, and
MLC MultiActive Cash
Enhanced
high quality interest bearing securities including Australian
government, semi-government and Australian corporate
holdings, and to achieve a total return after fees in excess
of the Bloomberg AusBond Bank Bill Index over a rolling
one-year period.
3 yearsCompositeTo provide a low to medium risk income-producing
investment over the medium term by investing in a
MLC MultiActive Diversified
Fixed Income
diversified portfolio of fixed interest investments, and to
achieve a total return after fees in excess of the Trust’s
benchmark over a rolling three-year period.
7 yearsFTSE EPRA/NAREIT
Developed ex Australia
To provide long-term capital growth and income by
investing predominantly in a diversified portfolio of listed
MLC MultiActive Property
Rental 100% Hedged to AUD
Net Tax (Super) Index
international and Australian real estate securities, and to
achieve a total return after fees in excess of the FTSE
EPRA/NAREIT Developed ex Australia Rental 100% Hedged
to AUD Net Tax (Super) Index over a rolling seven-year
period.
7 yearsS&P/ASX 300 Accumulation
Index
To provide capital growth of your investment over the long
term by investing in a diversified portfolio of Australian
MLC MultiActive Australian
Shares
shares, and to achieve a total return after fees in excess of
the S&P/ASX 300 Accumulation Index over a rolling
seven-year period.
7 yearsMSCI All Country World ex
Australia Index with Special
Tax (unhedged in AUD)
To provide capital growth of your investment over the long
term by investing in a diversified portfolio of international
shares, and to achieve a total return after fees in excess of
MLC MultiActive Global
Shares
the MSCI All Country World ex Australia Index with Special
Tax (unhedged in AUD) over a rolling seven-year period.
1 The composite benchmark incorporates the applicable indices (or benchmarks) for each asset class weighted against the relevant Trust’s strategic asset
allocation (refer to ‘Benchmarks’ on page 18 for more information)
4 |
Buy-Sell
spread (%)
3
Management fees
and costs (% pa)
2
Income distribution frequency
Income
distribution
reinvestment
Risk/return Profile
1
Trust name
0.05/0.060.54
Half yearly
Yes
LowMLC MultiActive
Capital Stable
(as at 30 June and 31 December)
0.06/0.070.75
Half yearly
Yes
Low/MediumMLC MultiActive
Conservative
(as at 30 June and 31 December)
0.08/0.080.81
Half yearly
Yes
MediumMLC MultiActive
Moderate
(as at 30 June and 31 December)
0.10/0.100.86
Half yearly
Yes
Medium/HighMLC MultiActive
Balanced
(as at 30 June and 31 December)
0.11/0.110.90
Half yearly
Yes
HighMLC MultiActive
Growth
(as at 30 June and 31 December)
Sector trusts
0.02/0.030.36
Quarterly
Yes
LowMLC MultiActive
Cash Enhanced
(as at 31 March, 30 June, 30
September and 31 December)
0.05/0.080.52
Quarterly
Yes
Low/MediumMLC MultiActive
Diversified Fixed
Income
(as at 31 March, 30 June, 30
September and 31 December)
0.14/0.140.87
Quarterly
Yes
HighMLC MultiActive
Property
(as at 31 March, 30 June, 30
September and 31 December)
0.20/0.200.73
Half yearly
Yes
HighMLC MultiActive
Australian Shares
(as at 30 June and 31 December)
0.10/0.100.86
Half yearly
Yes
HighMLC MultiActive
Global Shares
(as at 30 June and 31 December)
1 For more information on risks, please refer to ‘Risks of investing’ on page 21 for further information. The risk/return profiles listed are based on our assessment
of the relevant Trust’s risk profile. We recommend you speak to your financial adviser to assess whether the Trusts are appropriate for your specific investment
requirements.
2 The estimated management fees and costs include the investment management fee and indirect costs. Performance fees may be charged by underlying
investment managers from time to time. Any performance fees incurred are an additional cost and included in the estimated total ongoing annual fees and
costs in the 'Indirect costs' section. These fees are subject to change from time to time. These figures are inclusive of the goods and services tax (GST) and
take into account any expected reduced input tax credits (RITCs). There are no contribution or withdrawal fees currently applicable to any of the Trusts. See
‘the 'Fees and other costs' section for full details on fees and other costs.
3 For more information on the estimated buy-sell spreads listed, please refer to the 'Buy-sell spread 'section.
Minimums
Switch/withdrawal
1
Balance/holding
1
Additional investment
1
Initial investment
1
Trusts
$5,000$25,000$5,000$25,000All Trusts
1 IISL, may at its discretion, accept lower amounts. The minimum limits do not apply if investing in the Trusts via an IDPS or master trust (see ‘Additional
explanation of fees and costs’ for further information. Check with the operator of the IDPS or trustee of the master trust, to confirm what minimum investment
limits apply for investing in the Trusts via the IDPS or master trust.
| 5
Introduction to MLC MultiActive
About managed funds
Managed funds, commonly also referred to as
unit trusts, are investment vehicles that pool
your money with that of other investors. The
pooling of monies allows you to take advantage
of investment opportunities that you may not
be able to access as an individual investor. The
pool of funds is then professionally managed
according to the investment objective and
style of each managed fund.
There are many types of managed funds. Some
invest in a number of shares or securities
within one asset class and some invest across
a range of asset classes. Some utilise the
expertise of a single investment manager,
while others (commonly referred to as
multi-manager trusts) may utilise a range of
investment managers. Some can provide you
with capital growth, income or a combination
of both. As the risks associated with each
managed fund can vary, we recommend you
seek professional financial advice to consider
your overall financial situation before deciding
to invest.
About IOOF Investment Services Ltd
IOOF Investment Services Ltd (IISL) is part of
the Insignia Financial Group of Companies,
which consists of Insignia Financial Ltd ABN
49 100 103 722 and its related bodies corporate
(Insignia Financial Group) and is the
Responsible Entity and investment manager
of the Trusts. Insignia Financial Ltd is listed
in the top 200 companies on the Australian
Securities Exchange (ASX:IFL). Through our
investment management services, we have a
team of portfolio managers, supported by a
host of support services, all committed to
providing strong risk-adjusted returns over
the long term.
As one of the largest wealth managers in
Australia, with over 175 years experience in
helping Australians secure their financial
wellbeing, the Insignia Financial Group
provides services to around 2 million clients
and has more than $295 billion in funds under
management and administration (as at 30 June
2023).
The Insignia Financial Group offers a wide
range of wealth management services and
products including financial advice,
superannuation funds and investment funds,
as well as platform management and
administration.
Investment manager
As the Responsible Entity and investment
manager for the Trusts, IISL is responsible for
managing the assets and overseeing the
operations of the Trusts.
Our specialist investment team, is well
experienced in managing multi-manager funds
and consists of experienced investment and
research professionals that undertake the
analysis, selection and monitoring of the
investment managers who will manage the
assets of the Trusts.
Custodian
IISL has appointed custodians for certain
underlying assets of the Trusts. The role of the
custodian is limited to holding assets of the
Trusts as agent of the Responsible Entity. The
custodians have no supervisory role in relation
to the operation of the Trusts and are not
responsible for protecting your interests. IISL
has the discretion to change custodians at any
time, subject to the terms of any custody
agreements and appoint additional custodians.
About MLC MultiActive and how it
can simplify the investment process
Making the right investment decision requires
expert advice not only in developing your
investment strategy but also in selecting the
most suitable managed funds or investment
managers to incorporate into your
portfolio. MLC MultiActive can simplify the
investment process by doing some of the hard
work for you through our multi-manager
approach.
Our specialist investment team adds value
through its multi-manager investment
approach on several fronts: those being our
active management of underlying investment
managers, our dynamic asset allocation
process and our robust risk management
approach.
With so much choice available, it is imperative
that you have the confidence that you have
selected the right managers to meet your
objectives. We can give you that confidence
by doing the hard work and actively managing
diversified portfolios of high-quality
managers.
Our investment team blend and manage a
range of specialist investment managers with
the aim of delivering superior returns for each
Trust, specialising in identifying managers
that have the ‘edge’ required to perform.
Furthermore, we know that investment
performance is predominantly attributed to
asset allocation. So we focus a lot of our time
and energy on getting it right. Our asset
allocation is active, as we believe these
decisions can really benefit an investor's
portfolio.
Equally important is our approach to risk
management. Risk is considered at every stage
of our investment process. From asset
allocation to manager selection decisions and
portfolio construction, our strong ongoing risk
management practices give you confidence
that we manage and consider risk.
Why invest in MLC MultiActive?
Helps achieve your financial goals.
Access to the major asset classes.
Extra diversification of your
investments with access to multiple
investment managers.
Professional investment management.
Portfolio of experienced investment
managers.
Disciplined investment process.
MLC MultiActive range
MLC MultiActive provides a comprehensive
range of investment options to suit your
changing investment needs, offering a range
of trusts to match your risk profile and
investment time frame.
You can select from two main categories:
Diversified trusts – provide an all-in-one
portfolio solution.
With the MLC MultiActive diversified trusts,
you cover your entire portfolio diversification
needs within a single investment option.
Each diversified trust provides access to a
blend of different asset classes through a
combination of professionally selected quality
investment managers. The mix and weighting
to particular asset classes are determined by
our investment professionals and will vary
depending on the particular trust’s respective
risk and return objectives.
6 |
Sector trusts – allow you to customise your
own portfolio. Each sector trust provides
access to investments of a specific asset class
through a range of professionally selected
investment managers.
These trusts are useful for investors or
advisers who wish to build their own
investment portfolios by blending a variety of
individual multi-manager sector trusts, or to
complement and diversify their existing
investments by combining with other single
manager options to create a tailored portfolio
to suit their investment objectives.
Approach to investing
For decades, our investment experts have been
designing trust using a multi-manager
approach, to help investors achieve their goals.
The four key aspects of this market-leading
investment approach are:
1. Trust design
Our diversified Trusts focus on one of the main
drivers impacting investor outcomes – asset
allocation.
Each asset class has its own return and risk
characteristics. Money is allocated between
asset classes based on the following
investment beliefs, which stem from our long
experience in this way of investing.
Great culture is the foundation for great
investing
A culture that fosters debate; encourages
fearless enquiry; values humility; and which
rests on trust and collaboration is the basis of
great investing.
Consistent with this, we embrace change and
new ways of thinking and investing,
recognising that what has been effective in
the past may be less so into the future.
Active management can add value
There are many factors that may lead to
current market pricing not accurately reflecting
the value of an asset to a long-term investor
like us. This may include behavioural biases
like overconfidence and herding (following the
crowd), availability and access to information,
and the fact that deep research and analysis
can reveal the ‘intrinsic value’ of an asset
which has been overlooked by other investors.
It’s these market inefficiencies that present
opportunities for skilled active management
to add value, delivering stronger long-term
returns than would be possible by investing
in a passive manner.
Skilful diversification can deliver over the
long-term
Skilfully constructed multi-manager trusts
made up of a wide breadth of asset classes,
many assets within asset classes, risks,
investment styles, and investments across
many geographies maximises the odds of
achieving strong long-term returns while
managing risk.
Successful investing relies not just on strong
performance in rising markets but also on
preserving investors’ capital in hostile markets.
The combination of skilful diversification and
active management is one of the best ways of
achieving these dual objectives.
Intelligent risk taking is a must
It’s understood that some risks must be taken
to achieve return objectives. However, not all
risks are equal.
Our role as active managers is to assess the
range of possible market outcomes and
position trusts so that they can maximise the
chance of meeting clients’ return expectations
while minimising exposure to risks
unsupported by high conviction.
The long-term matters but we remain agile
Deeply held investment convictions, sound
judgments gained from navigating multiple
market cycles, and structures and incentives
that reward patience and perseverance support
our long-term focus.
At the same time we are very mindful of
occasions when market events can, if
overlooked, undermine returns. Our risk-aware
investment approach can alert us to possible
threats enabling us to position trusts to
weather such market conditions.
2. Managing the trust
Our Trusts have different investment
objectives. That’s why our investment experts
select a different mix of assets and investment
managers for each.
The investment managers may be specialist
in-house managers, external managers or a
combination of both. Our investment experts
research hundreds of investment managers
from around the world and select the managers
they believe are the best for our Trusts. They
are then combined in our Trusts so they
complement each other.
This multi-manager approach helps to reduce
risk and deliver more consistent returns. You
can find out about the investment managers
at ioof.com.au
3. Ongoing review
To make sure our Trusts are working hard for
investors, our investment experts
continuously review and actively manage
them.
This includes adjusting the asset allocation,
investment strategies and managers. These
adjustments may be due to our investment
experts’ assessment of the future market
environment has altered or because they’ve
found new ways to balance return and risk in
our Trusts.
4. Implementation
We can deliver better returns by avoiding
unnecessary costs. Our investment experts
help us do this by carefully managing cash
flows, tax and changes in our Trusts.
Each MLC MultiActive Trust uses the aspects
of this approach to investing that are relevant
to it.
Trust profiles and
financial advice
We recommend that you obtain professional
financial advice before making any investment
decision in relation to the Trusts. Referring to
the categories described in the Trust profiles
(on pages 8–17), such as investment
objectives and investor profiles, is not a
substitute for personal advice or a detailed
financial plan. This information is of a general
nature only and is subject to change. There is
no assurance that the Trusts will achieve their
stated objectives. The investor profile does not
take into account your individual objectives,
financial situation or needs. IISL strongly
recommends that you seek professional
financial advice from a financial adviser about
your own objectives, financial situation and
needs before deciding to invest in the Trusts.
| 7
Diversified and Sector Trusts
Diversified Trusts
MLC MultiActive Capital Stable
To provide a low risk investment over the short to medium term by investing
predominantly in defensive assets, and to achieve a total return after fees in excess
of the Trust’s benchmark
1
over a rolling three-year period.
Investment objectives
3 yearsMinimum suggested investment time frame
LowRisk/return profile
The Trust may be suitable for investors:Investor profile
with an investment time frame of approximately three years
with a low risk tolerance
who are seeking a risk-averse portfolio of predominantly income-producing assets.
The Trust generally gains its exposure to a diversified portfolio of investments
through a mix of investment managers.
Investment strategy
The risk-averse nature of the Trust means it provides greater exposure to defensive
income bearing assets, such as cash and fixed interest. It may also hold a small
exposure to growth assets (such as Australian and international property, shares and
infrastructure).
2
The Trust is authorised to utilise approved derivative instruments for risk
management purposes subject to the specific restriction that the derivative
instruments cannot be used to gear portfolio exposure (see the ‘Derivatives’ section
on page 20 for further information).
The underlying investment managers may utilise strategies for the management of
currency exposure. The level of currency hedging used for the Trust will vary from
time to time. The Trust has the capacity to apply a currency overlay to manage the
Trust’s currency risk.
3
Strategic asset
allocationAsset rangeAsset class
Strategic asset allocation and asset ranges
4, 5
32%15–45%Cash and short-term securities
52%35–70%Diversified fixed interest
0%0–15%Alternatives
2%0–15%Infrastructure
4%0–15%Property
5%0–20%Australian shares
5%0–20%International shares
29 April 2008Inception date
For up-to-date performance data please speak with your financial adviser or
visit ioof.com.au/forms
Investment performance
1 The Trust’s benchmark incorporates the applicable indices for each asset class weighted against the Trust’s strategic asset allocation. For more information,
please refer to the ‘Benchmarks’ section on page 18.
2 For reasons of investment efficiency, the Trust may gain its exposure to each sector by holding units in other Insignia Financial Group unit trusts and/or
through direct investment holdings.
3 Refer to page 21 for further information on currency risks.
4 Actual asset allocation may move outside the above ranges and specified percentages from time to time. The underlying investments of the Trust will generally
be managed within these ranges and strategic asset allocation percentages. However, IISL may revise the asset ranges and specified percentages, without
notice to investors, in response to factors affecting the underlying investments such as changes in economic conditions and market movements. Where, in
IISL’s opinion, a material alteration impacts the nature of the Trust, investors will be given prior notice.
5 Property asset sector may include exposure to Australian and international direct property and Australian and international property securities.
See ioof.com.au to access updated information including asset allocations, Trust sizes, performance and a current list of investment managers
for the Trusts.
8 |
MLC MultiActive Conservative
To provide stable returns over the medium term by investing in a diversified portfolio
of defensive assets with some growth asset exposure, and to achieve a total return
after fees in excess of the Trust’s benchmark
1
over a rolling three-year period.
Investment objectives
3 yearsMinimum suggested investment time frame
Low to MediumRisk/return profile
The Trust may be suitable for investors:Investor profile
with an investment time frame of approximately three years
with a low to medium level of risk tolerance
who are seeking a diversified portfolio of predominantly income-producing assets
with some growth asset exposure.
The Trust generally gains its exposure to a diversified portfolio of investments
through a mix of investment managers.
Investment strategy
The conservative nature of the Trust means it has a greater exposure to
income-bearing assets (such as cash and fixed interest) and some exposure to growth
assets (such as Australian and international property and shares, alternatives and
infrastructure).
2
The Trust is authorised to utilise approved derivative instruments for risk
management purposes subject to the specific restriction that the derivative
instruments cannot be used to gear portfolio exposure (see the ‘Derivatives’ section
on page 20 for further information).
The underlying investment managers may utilise strategies for the management of
currency exposure. The level of currency hedging used for the Trust will vary from
time to time. The Trust has the capacity to apply a currency overlay to manage the
Trust’s currency risk.
3
Strategic asset
allocationAsset rangeAsset class
Strategic asset allocation and asset ranges
4, 5
22%0–35%Cash and short-term securities
45%30–70%Diversified fixed interest
4%0–15%Alternatives
3%0–15%Infrastructure
6%0–20%Property
9%0–25%Australian shares
11%0–25%International shares
29 April 2008Inception date
For up-to-date performance data please speak with your financial adviser or
visit ioof.com.au/forms
Investment performance
1 The Trust’s benchmark incorporates the applicable indices for each asset class weighted against the Trust’s strategic asset allocation. For more information,
please refer to the ‘Benchmarks’ section on page 18.
2 For reasons of investment efficiency, the Trust may gain its exposure to each sector by holding units in other Insignia Financial Group unit trusts and/or
through direct investment holdings.
3 Refer to page 21 for further information on currency risks.
4 Actual asset allocation may move outside the above ranges and specified percentages from time to time. The underlying investments of the Trust will generally
be managed within these ranges and strategic asset allocation percentages. However, IISL may revise the asset ranges and specified percentages, without
notice to investors, in response to factors affecting the underlying investments such as changes in economic conditions and market movements. Where, in
IISL’s opinion, a material alteration impacts the nature of the Trust, investors will be given prior notice.
5 Property asset sector may include exposure to Australian and international direct property and Australian and international property securities.
See ioof.com.au to access updated information including asset allocations, Trust sizes, performance and a current list of investment managers
for the Trusts.
| 9
MLC MultiActive Moderate
To provide capital growth of your investment over the medium to long term by
investing in a diversified portfolio of growth and defensive assets, and to achieve a
Investment objectives
total return after fees in excess of the Trust’s benchmark
1
over a rolling five-year
period.
5 yearsMinimum suggested investment time frame
MediumRisk/return profile
The Trust may be suitable for investors:Investor profile
with an investment time frame of approximately five years
with a medium level of risk tolerance
who are seeking both income and capital growth through a well-diversified portfolio.
The Trust generally gains its exposure to a diversified portfolio of investments
through a mix of investment managers.
Investment strategy
The moderate growth orientation of the Trust means it has similar exposure to growth
assets (such as Australian and international property and shares, alternatives and
infrastructure) and defensive assets (such as cash and fixed interest).
2
The Trust is authorised to utilise approved derivative instruments for risk
management purposes subject to the specific restriction that the derivative
instruments cannot be used to gear portfolio exposure (see the ‘Derivatives’ section
on page 20 for further information).
The underlying investment managers may utilise strategies for the management of
currency exposure. The level of currency hedging used for the Trust will vary from
time to time. The Trust has the capacity to change the level and nature of the currency
overlay to manage the Trust’s currency risk.
3
Strategic asset
allocationAsset rangeAsset class
Strategic asset allocation and asset ranges
4, 5
14%0–25%Cash and short-term securities
33%15–50%Diversified fixed interest
6%0–20%Alternatives
4%0–15%Infrastructure
7%0–20%Property
16%5–30%Australian shares
20%5–35%International shares
12 April 2002Inception date
For up-to-date performance data please speak with your financial adviser or
visit ioof.com.au/forms
Investment performance
1 The Trust’s benchmark incorporates the applicable indices for each asset class weighted against the Trust’s strategic asset allocation. For more information,
please refer to the ‘Benchmarks’ section on page 18.
2 For reasons of investment efficiency, the Trust may gain its exposure to each sector by holding units in other Insignia Financial Group unit trusts and/or
through direct investment holdings.
3 Refer to page 21 for further information on currency risks.
4 Actual asset allocation may move outside the above ranges and specified percentages from time to time. The underlying investments of the Trust will generally
be managed within these ranges and strategic asset allocation percentages. However, IISL may revise the asset ranges and specified percentages, without
notice to investors, in response to factors affecting the underlying investments such as changes in economic conditions and market movements. Where, in
IISL’s opinion, a material alteration impacts the nature of the Trust, investors will be given prior notice.
5 Property asset sector may include exposure to Australian and international direct property and Australian and international property securities.
See ioof.com.au to access updated information including asset allocations, Trust sizes, performance and a current list of investment managers
for the Trusts.
10 |
MLC MultiActive Balanced
To provide capital growth over the medium to long term by investing in a diversified
portfolio of growth assets with some defensive asset exposure, and to achieve a total
return after fees in excess of the Trust’s benchmark
1
over a rolling five-year period.
Investment objectives
5 yearsMinimum suggested investment time frame
Medium to HighRisk/return profile
The Trust may be suitable for investors:Investor profile
with an investment time frame of approximately five years
with a medium to high level of risk tolerance
who are seeking capital growth with some income through a well-diversified
portfolio.
The Trust generally gains its exposure to a diversified portfolio of investments
through a mix of investment managers.
Investment strategy
The growth orientation of the Trust means it has a greater exposure to growth assets
(such as Australian and international property and shares, alternatives and
infrastructure), and a moderate exposure to defensive assets (such as cash and fixed
interest).
2
The Trust is authorised to utilise approved derivative instruments for risk
management purposes subject to the specific restriction that the derivative
instruments cannot be used to gear portfolio exposure (see the ‘Derivatives’ section
on page 20 for further information).
The underlying investment managers may utilise strategies for the management of
currency exposure. The level of currency hedging used for the Trust will vary from
time to time. The Trust has the capacity to change the level and nature of the currency
overlay to manage the Trust’s currency risk.
3
Strategic asset
allocationAsset rangeAsset class
Strategic asset allocation and asset ranges
4, 5
6%0–20%Cash and short-term securities
21%5–40%Diversified fixed interest
8%0–20%Alternatives
4%0–15%Infrastructure
7%0–20%Property
25%10–40%Australian shares
29%10–45%International shares
29 April 2008Inception date
For up-to-date performance data please speak with your financial adviser or
visit ioof.com.au/forms
Investment performance
1 The Trust’s benchmark incorporates the applicable indices for each asset class weighted against the Trust’s strategic asset allocation. For more information,
please refer to the ‘Benchmarks’ section on page 18.
2 For reasons of investment efficiency, the Trust may gain its exposure to each sector by holding units in other Insignia Financial Group unit trusts and/or
through direct investment holdings.
3 Refer to page 21 for further information on currency risks.
4 Actual asset allocation may move outside the above ranges and specified percentages from time to time. The underlying investments of the Trust will generally
be managed within these ranges and strategic asset allocation percentages. However, IISL may revise the asset ranges and specified percentages, without
notice to investors, in response to factors affecting the underlying investments such as changes in economic conditions and market movements. Where, in
IISL’s opinion, a material alteration impacts the nature of the Trust, investors will be given prior notice.
5 Property asset sector may include exposure to Australian and international direct property and Australian and international property securities.
See ioof.com.au to access updated information including asset allocations, Trust sizes, performance and a current list of investment managers
for the Trusts.
| 11
MLC MultiActive Growth
To provide capital growth over the long term by investing in a portfolio of
predominantly growth assets with minimal defensive asset exposure, and to
Investment objectives
achieve a total return after fees in excess of the Trust’s benchmark
1
over a
rolling seven-year period.
7 yearsMinimum suggested investment time frame
HighRisk/return profile
The Trust may be suitable for investors:Investor profile
with an investment time frame of approximately seven years
with a high level of risk tolerance
who are seeking capital growth through a well-diversified portfolio of growth
assets
who can accept the volatility associated with a portfolio with significant
growth asset exposure.
The Trust generally gains its exposure to a diversified portfolio of investments
through a mix of investment managers.
Investment strategy
Due to the Trust’s high growth nature, it predominantly gains exposure to
growth assets (such as Australian and international property and shares,
alternatives and infrastructure). It may also have a small exposure to defensive
assets (such as cash and fixed interest).
2
The Trust is authorised to utilise approved derivative instruments for risk
management purposes subject to the specific restriction that the derivative
instruments cannot be used to gear portfolio exposure (see the ‘Derivatives’
section on page 20 for further information).
The underlying investment managers may utilise strategies for the management
of currency exposure. The level of currency hedging used for the Trust will vary
from time to time. The Trust has the capacity to change the level and nature
of the currency overlay to manage the Trust’s currency risk.
3
Strategic asset
allocationAsset rangeAsset class
Strategic asset allocation and asset ranges
4, 5
2%0-15%Cash and short-term
securities
10%0-25%Diversified fixed interest
8%0-20%Alternatives
4%0-15%Infrastructure
7%0-20%Property
31%15-45%Australian shares
38%25-55%International shares
29 April 2008Inception date
For up-to-date performance data please speak with your financial adviser or
visit ioof.com.au/forms
Investment performance
1 The Trust’s benchmark incorporates the applicable indices for each asset class weighted against the Trust’s strategic asset allocation. For more information,
please refer to the ‘Benchmarks’ section on page 18.
2 For reasons of investment efficiency, the Trust may gain its exposure to each sector by holding units in other Insignia Financial Group unit trusts and/or
through direct investment holdings.
3 Refer to page 21 for further information on currency risks.
4 Actual asset allocation may move outside the above ranges and specified percentages from time to time. The underlying investments of the Trust will generally
be managed within these ranges and strategic asset allocation percentages. However, IISL may revise the asset ranges and specified percentages, without
notice to investors, in response to factors affecting the underlying investments such as changes in economic conditions and market movements. Where, in
IISL’s opinion, a material alteration impacts the nature of the Trust, investors will be given prior notice.
5 Property asset sector may include exposure to Australian and international direct property and Australian and international property securities.
See ioof.com.au to access updated information including asset allocations, Trust sizes, performance and a current list of investment managers
for the Trusts.
12 |
Sector Trusts
MLC MultiActive Cash Enhanced
To provide stable returns with low risk over the short term, by investing in a range
of cash, short term securities, and high quality interest bearing securities including
Investment objectives
Australian government, semi-government and Australian corporate holdings, and
to achieve a total return after fees in excess of the Bloomberg AusBond Bank Bill
Index over a rolling one-year period.
1 yearMinimum suggested investment time frame
LowRisk/return profile
The Trust may be suitable for investors:Investor profile
with a short term investment time frame of approximately one year
with a low level of risk tolerance
who are seeking returns from income-generating assets with low volatility.
The Trust generally gains its investment exposure by investing in a portfolio of
domestic cash investment managers.
Investment strategy
The Trust is designed to provide investors with returns higher than a fund invested
purely in cash, and in excess of the Bloomberg AusBond Bank Bill Index.
The Trust aims to be fully invested with exposure to cash, short-term securities, and
high quality interest bearing securities including Australian government,
semi-government and Australian corporate holdings at all times.
The underlying investments of the Trust may be comprised of bank bills and other
short-term money market securities, such as short-term loans to banks, corporates
and Australian governments, which are considered to be secure investments.
1
Strategic asset
allocationAsset rangeAsset class
Strategic asset allocation and asset ranges
100%100%Cash and short-term securities
29 April 2008Inception date
For up-to-date performance data please speak with your financial adviser or
visit ioof.com.au/forms
Investment performance
1 For reasons of investment efficiency, the Trust may gain its exposure to each sector by holding units in other Insignia Financial Group unit trusts and/or
through direct investment holdings.
See ioof.com.au to access updated information including asset allocations, Trust sizes, performance and a current list of investment managers
for the Trusts.
| 13
MLC MultiActive Diversified Fixed Income
To provide a low to medium risk income-producing investment over the medium
term by investing in a diversified portfolio of fixed income investments, and to
Investment objectives
achieve a total return after fees in excess of the Trust’s benchmark
1
over a rolling
three-year period.
3 yearsMinimum suggested investment time frame
Low to MediumRisk/return profile
The Trust may be suitable for investors:Investor profile
with an investment time frame of approximately three years
with a low to medium level of risk tolerance
who are predominantly seeking income-generated returns through a well-diversified
fixed income portfolio.
The Trust generally gains its investment exposure by investing in a well-diversified
portfolio of Australian and international fixed interest managers.
Investment strategy
The underlying fixed income investments include a range of international and
domestic government bonds, corporate debt and asset-backed securities.
2
The Trust can also invest in cash, although the cash exposure cannot exceed 25% for
any length of time.
The Trust is authorised to utilise approved derivative instruments for risk
management purposes subject to the specific restriction that the derivative
instruments cannot be used to gear portfolio exposure (see the ‘Derivatives’ section
on page 20 for further information).
The underlying investment managers may utilise strategies for managing currency
exposure. The Trust’s overall international fixed income exposure is generally hedged.
The Trust has the capacity to apply a currency overlay to manage the Trust’s currency
risk.
3
Strategic asset
allocationAsset rangeAsset class
Strategic asset allocation and asset ranges
4
0%0-25%Cash and short-term securities
50%25-75%Australian fixed interest
50%25-75%International fixed interest
29 April 2008Inception date
For up-to-date performance data please speak with your financial adviser or
visit ioof.com.au/forms
Investment performance
1 A composite benchmark incorporating the appropriate indices as detailed in the ‘Benchmarks’ section on page 18.
2 For reasons of investment efficiency, the Trust may gain its exposure to each sector by holding units in other Insignia Financial Group unit trusts and/or
through direct investment holdings.
3 Refer to page 21 for further information on currency risks.
4 Actual asset allocation may move outside the above ranges and specified percentages from time to time. The underlying investments of the Trust will generally
be managed within these ranges and strategic asset allocation percentages. However, IISL may revise the asset ranges and specified percentages, without
notice to investors, in response to factors affecting the underlying investments such as changes in economic conditions and market movements. Where, in
IISL’s opinion, a material alteration impacts the nature of the Trust, investors will be given prior notice.
See ioof.com.au to access updated information including asset allocations, Trust sizes, performance and a current list of investment managers
for the Trusts.
14 |
MLC MultiActive Property
To provide long-term capital growth and income by investing predominantly in a
diversified portfolio of listed international and Australian real estate securities, and
Investment objectives
to achieve a total return after fees in excess of the FTSE EPRA/NAREIT Developed
ex Australia Rental 100% Hedged to AUD Net Tax (Super) Index over a rolling
seven-year period.
7 yearsMinimum suggested investment time frame
HighRisk/return profile
The Trust may be suitable for investors:Investor profile
with an investment time frame of approximately seven years
with a high level of risk tolerance
who are seeking capital growth and income through a well-diversified portfolio of
listed international and Australian real estate securities
who are prepared to accept the higher levels of volatility typically associated with
investments in international and Australian property securities.
The Trust generally gains its investment exposure to the international and Australian
property securities markets by investing in a diversified portfolio of property
securities managers.
Investment strategy
The Trust’s investments provide diversified exposure to international and Australian
listed, or soon-to-be listed, property securities.
1
The underlying investment managers may utilise strategies for managing currency
exposure. The Trust has the capacity to apply a currency overlay to manage the
Trust's currency risk.
2
Strategic asset allocationAsset rangeAsset class
Strategic asset allocation and asset ranges
3, 4
0%0–5%Cash and short-term
securities
100%95–100%Property
18 November 2005Inception date
For up-to-date performance data please speak with your financial adviser or
visit ioof.com.au/forms
Investment performance
1 For reasons of investment efficiency, the Trust may gain its exposure to each sector by holding units in other Insignia Financial Group unit trusts and/or
through direct investment holdings.
2 Refer to page 21 for further information on currency risks.
3 Actual asset allocation may move outside the above ranges and specified percentages from time to time. The underlying investments of the Trust will generally
be managed within these ranges and strategic asset allocation percentages. However, IISL may revise the asset ranges and specified percentages, without
notice to investors, in response to factors affecting the underlying investments such as changes in economic conditions and market movements. Where, in
IISL’s opinion, a material alteration impacts the nature of the Trust, investors will be given prior notice.
4 Property asset sector may include exposure to Australian and international direct property and Australian and international property securities.
See ioof.com.au to access updated information including asset allocations, Trust sizes, performance and a current list of investment managers
for the Trusts.
| 15
MLC MultiActive Australian Shares
To provide capital growth of your investment over the long term by investing in a
diversified portfolio of Australian shares, and to achieve a total return after fees in
excess of the S&P/ASX 300 Accumulation Index over a rolling seven-year period.
Investment objectives
7 yearsMinimum suggested investment time frame
HighRisk/return profile
The Trust may be suitable for investors:Investor profile
with an investment time frame of approximately seven years
with a high level of risk tolerance
who are seeking capital growth through a well-diversified portfolio of Australian
shares
who are prepared to accept the higher levels of volatility typically associated with
Australian share investments.
The Trust generally gains its investment exposure by investing in a well-diversified
portfolio of predominantly Australian share investment managers.
Investment strategy
The Trust’s investments generally provide exposure to stocks within the S&P/ASX
300 Accumulation Index. However, the Trust has the capacity to gain exposure to
shares outside the index.
1
The Trust aims to be fully invested at all times with cash exposure not exceeding
10% for any length of time.
The Trust is authorised to utilise approved derivative instruments for risk
management purposes subject to the specific restriction that the derivative
instruments cannot be used to gear portfolio exposure (see the ‘Derivatives’ section
on page 20 for further information).
Strategic asset
allocationAsset rangeAsset class
Strategic asset allocation and asset ranges
2
0%0-10%Cash and short-term securities
100%90-100%Australian shares
29 April 2008Inception date
For up-to-date performance data please speak with your financial adviser or
visit ioof.com.au/forms
Investment performance
1 For reasons of investment efficiency, the Trust may gain its exposure to each sector by holding units in other Insignia Financial Group unit trusts and/or
through direct investment holdings.
2 Actual asset allocation may move outside the above ranges and specified percentages from time to time. The underlying investments of the Trust will generally
be managed within these ranges and strategic asset allocation percentages. However, IISL may revise the asset ranges and specified percentages, without
notice to investors, in response to factors affecting the underlying investments such as changes in economic conditions and market movements. Where, in
IISL’s opinion, a material alteration impacts the nature of the Trust, investors will be given prior notice.
See ioof.com.au to access updated information including asset allocations, Trust sizes, performance and a current list of investment managers
for the Trusts.
16 |
MLC MultiActive Global Shares
To provide capital growth of your investment over the long term by investing in a
diversified portfolio of international shares, and to achieve a total return after fees
Investment objectives
in excess of the MSCI All Country World ex Australia Index with Special Tax (unhedged
in AUD) over a rolling seven-year period.
7 yearsMinimum suggested investment time frame
HighRisk/return profile
The Trust may be suitable for investors:Investor profile
with an investment time frame of approximately seven years
with a high level of risk tolerance
who are seeking capital growth through a well-diversified portfolio of international
shares
who are prepared to accept the higher levels of volatility typically associated with
international share investments
who are prepared to accept currency risk that comes with international investing.
The Trust generally gains its investment exposure by investing in a well-diversified
portfolio of international share investment managers.
Investment strategy
The Trust’s investments generally provide exposure to stocks within the MSCI All
Country World ex Australia Index with Special Tax (unhedged in AUD). However, the
Trust has the capacity to gain exposure to shares outside the index.
1
The Trust aims to be fully invested at all times with cash exposure not exceeding
10% for any length of time.
The Trust is authorised to utilise approved derivative instruments for risk
management purposes subject to the specific restriction that the derivative
instruments cannot be used to gear portfolio exposure (see the ‘Derivatives’ section
on page 20 for further information).
The underlying investment managers may utilise strategies for the management of
currency exposure. It is the strategy of the Trust that part of the international currency
exposure may be hedged. The Trust has the capacity to apply currency overlay to
manage currency risk.
2
Strategic asset
allocationAsset rangeAsset class
Strategic asset allocation and asset ranges
3
0%0-10%Cash and short-term securities
100%90-100%International shares
29 April 2008Inception date
For up-to-date performance data please speak with your financial adviser or
visit ioof.com.au/forms
Investment performance
1 For reasons of investment efficiency, the Trust may gain its exposure to each sector by holding units in other Insignia Financial Group unit trusts and/or
through direct investment holdings.
2 Refer to page 21 for further information on currency risks.
3 Actual asset allocation may move outside the above ranges and specified percentages from time to time. The underlying investments of the Trust will generally
be managed within these ranges and strategic asset allocation percentages. However, IISL may revise the asset ranges and specified percentages, without
notice to investors, in response to factors affecting the underlying investments such as changes in economic conditions and market movements. Where, in
IISL’s opinion, a material alteration impacts the nature of the Trust, investors will be given prior notice.
See ioof.com.au to access updated information including asset allocations, Trust sizes, performance and a current list of investment managers
for the Trusts.
| 17
Benchmarks
The term ‘benchmark’ usually refers to a recognised market index that the performance of a trust is measured against. Market indices or
benchmarks are different for each asset class and are used to assess the relative risk and performance comparisons of an investment portfolio.
Diversified trusts, such as MLC MultiActive Balanced, spread investments across a combination of asset classes and generally have an allocation
range and strategic asset allocation for each underlying asset class. The benchmark therefore comprises the performance of the market index
for each asset class weighted against the Trust’s strategic asset allocation position, commonly referred to as a composite benchmark.
Sector trusts, such as MLC MultiActive Australian Shares, invest primarily in one asset class. The benchmark is simply the return of the
relevant market index for that asset class.
The benchmarks currently used for each asset class are as follows:
BenchmarkAsset class
Bloomberg AusBond Bank Bill IndexCash and short-term securities
Australian fixed interest:Diversified fixed interest
Bloomberg AusBond Composite 0+Yr Index
International fixed interest:
Bloomberg Global Aggregate Total Return Index Hedged AUD
Direct property:Property
MSCI/Mercer Australia Core Wholesale Monthly Property Fund Index (NAV Post Fee)
Australian listed property securities:
S&P/ASX 300 A-REIT Accumulation Index
International listed property securities:
FTSE EPRA/NAREIT Developed ex Australia Rental 100% Hedged to AUD Net Tax
(Super) Index
International listed infrastructure:Infrastructure
FTSE Developed Core Infrastructure 50/50 100% Hedged to AUD Net Tax (Super)
Index
Unlisted infrastructure:
MSCI Australia Quarterly Private Infrastructure Fund Index (Unfrozen) – 50
th
Percentile Post Fee Total Return (All Funds)
S&P/ASX 300 Accumulation IndexAustralian shares
International shares unhedged:International shares
MSCI All Country World ex Australia Index with Special Tax (unhedged in AUD)
International shares hedged:
MSCI All Country World ex Australia Index with Special Tax (100% hedged to AUD)
25% MSCI All Country World ex Australia Index with Special Tax (unhedged in AUD)Alternatives
25% MSCI All Country World ex Australia Index with Special Tax (100% hedged to
AUD)
50% Bloomberg Global Aggregate Total Return Index Hedged AUD
18 |
Responsible investment
Responsible investment is the practice of
considering Environmental, Social and
Governance (ESG) factors in the research,
analysis, selection and management of
investments and the implementation of good
stewardship practices.
There are a broad range of ESG factors that
may impact the risk profile and or return
characteristics of an investment. Some
examples include:
Environmental (E)
Climate change initiatives like reduction in
greenhouse gas emissions
Waste management
Energy efficiency
Water supply
Pollution
Biodiversity
Social (S)
Human capital management
Labour standards
Modern slavery
Diversity, Equity and Inclusion (DE&I)
Workplace health and safety
Integration with local community and
earning a social licence to operate
Indigenous rights
Employee engagement
Governance (G)
Rights, responsibilities and expectations
across all stakeholders
Board structure, diversity and independence
Executive remuneration (short- and
long-term incentives)
Bribery and corruption
Anti-competitive behaviour
Political lobbying and donations
Shareholder rights
Tax strategy
The Trusts are not promoted as socially
responsible or ethical investments.
Except as stated below, the Responsible Entity
does not take into account labour standards,
environmental, social and ethical
considerations for the purposes of selecting,
retaining or realising investments.
Responsible investment in the
Trusts
Investment management decisions for the
Trusts are made by IISL in its capacity as
investment manager (Investment Manager),
and the underlying investment managers they
select. The Investment Manager uses the
following responsible investment approaches,
where possible, to improve investment
outcomes:
Identifying and considering relevant ESG
factors in the investment decision-making
process (known as ESG integration). This
allows them to recognise and act upon
opportunities and risks related to ESG.
Being active owners in the companies your
money is invested in by using ownership
rights, such as proxy voting, and engaging
with these companies on a range of
commercial, strategic and ESG factors
(known as active ownership or active
stewardship). This provides an opportunity
to enhance and protect the long-term value
of investments.
Where there is an exclusion of some sectors
and companies because they're associated with
certain controversial business activities
(known as a negative screen), see the 'What's
excluded' section below.
The Investment Manager researches and
analyses the underlying investment managers
it selects prior to their appointment, including
their consideration of ESG factors in their
portfolios, where applicable. The Investment
Manager monitors and collects regular
reporting on each underlying investment
manager’s approach to responsible investment,
including its proxy voting decisions and
significant company engagements.
How the responsible investment approaches
described above are applied will vary across
asset classes and in some cases it’s not
possible to apply them. The responsible
investment approach for an investment
manager can change. For example, this can
occur through a change in approach by IISL, a
change in approach by the underlying
investment manager or a change in an
underlying investment manager. We will notify
you of any such changes in accordance with
our obligations under the law.
What's excluded
A negative screen is employed for the Trusts
to exclude investment in companies which
manufacture cigarettes or other tobacco
products or generates any revenue from
manufacturing cigarettes or other tobacco
products (referred to as Tobacco
manufacturing in this document). The negative
screen will apply to the asset classes of
Australian shares, international shares, fixed
interest, alternatives and property related
securities.
A tobacco manufacturing company is a
company that satisfies the following:
Tobacco manufacturing, or
>0% revenue limit from tobacco
manufacturing.
The negative screen applies in respect of
manufacturing and no other business activities
by a company. Therefore the Trusts may have
exposure to activities related to the value chain
for Tobacco manufacturing e.g. raw materials,
production inputs, distribution, retail sales and
the financing of such activities.
The revenue limit is determined as sales or
revenue for the company from tobacco
manufacturing as a proportion of the most
recent-year net operating revenues from all
ongoing lines of business of the company. For
example, a 0% revenue limit would mean that
any company with more than 0% of its most
recent-year net operating revenue or sales
coming from Tobacco manufacturing would
be excluded from the Trusts. The sales or
revenue amount for the company is
determined on appropriate publicly available
revenue data. The screen is implemented by
a reputable third-party provider who assesses
and classifies companies' revenue sources.
| 19
Practical limitations
While this negative screen captures most
companies, not all companies are required to
make full disclosure about their involvement
in these activities (or cannot be identified
through indirect ownership structures). There
are limitations in the availability, collection
and reporting of this information. If a
company’s revenue mix changes (e.g. prior
non-disclosure, or due to merger or demerger
activities) and then exceeds the permitted
revenue thresholds, a timely review of that
company will be undertaken after it has been
identified and its securities will be excluded
as required.
The negative screen does not apply to cash or
the indirect exposure to the underlying
investments of external trusts which may be
held.
The Trusts may, from time to time, have a
small level of unintended exposure. This could
occur where there is a delay in data availability,
an inability to exit an investment or as a result
of indirect exposure through an externally
managed investment. The Trusts could have
an exposure through the use of index options,
futures, or exchange traded funds.
Derivatives
Each of the Trusts are authorised to use a wide
range of derivative instruments, with the most
commonly used being futures and options.
Derivatives are generally used as a tool to
assist investment managers in controlling the
various risks associated with investing. Most
commonly, derivatives are utilised for hedging
and investment purposes. Derivatives will not
be used to gear any Trust portfolio.
For more information on derivative risk, please
refer to the ‘Risks of investing’ section on
page ‘21’.
Significant benefits of investing in MLC MultiActive
There are a number of significant benefits of investing in MLC MultiActive. These include:
Access to investment opportunities
Investing in a Trust means your money is
pooled with that of other investors. This
provides the Trust with the investment buying
power not often available to you as an
individual investor with smaller amounts to
invest. This means you can gain access to
investment markets and risk management
techniques that would not normally be
accessible to individual retail investors.
Management expertise
Our investment team utilises a specialised
management approach to manage the
investments of the Trusts on your behalf. This
includes the analysis, monitoring and
management of the Trusts' underlying
investment managers and assets, and making
investment decisions in response to market
conditions in line with the Trusts’ strategy,
with the aim of achieving more consistent and
competitive returns.
Additional diversification
Investing in MLC MultiActive offers you
additional levels of diversification by providing
exposure to a variety of investment managers
and investment styles within each single
Trust.
Income distributions (if any)
Investing in a Trust means you may benefit
from regular income distributions derived from
your investments in that Trust (for more
information, please refer to the ‘Income
distributions’ section on page 31). You may
also have the opportunity to reinvest any
income distributions received from the Trust
back into your account without incurring a
buy-spread.
Capital gains (or losses) on disposal
of investments
You may have the benefit of capital gains (or
losses) when you dispose of your investments,
for example by exiting a Trust or by selling
your investments.
Simple transaction process
Investing in a Trust allows you to apply for
additional investments or make withdrawals
at any time (subject to the minimum
investment, holding and withdrawal limits.
Please refer to the the ‘MLC MultiActive
summary’ section on page 4).
Easy access to your information
For the latest available information on the MLC
MultiActive Trusts, you can visit our
website ioof.com.au/forms, contact Investor
Services on 1800 002 217 (+613 8614 4966 if
calling from New Zealand), email us
at [email protected] or
speak to your financial adviser.
20 |
Risks of investing
All investments carry some level of risk.
Different investment strategies carry different
levels of risk, depending on the assets that
make up the investment strategy. Those assets
with the highest long-term returns (such as
shares) may also carry the highest level of
short-term risk.
Risks can be managed but cannot be
completely eliminated.
It is important to understand that:
the value of your investment will go up and
down
investment returns will vary and future
returns may be different from past returns
returns are not guaranteed and there is
always the chance that you may lose money
on any investment you make
laws affecting your investment in a
managed investment scheme may change
in the future
the appropriate level of risk for you will
depend on your age, investment time frame,
where other parts of your wealth are
invested and what your risk tolerance is.
Specific risks associated with
investing
There are specific risks associated with
investing. It is not usually possible to eliminate
investment risk altogether. However, it is
possible to formulate investment strategies
designed to effectively manage and reduce the
risk of your investment.
Specific risks apply to all investments. Some
can affect the value of your investments and
the distributions paid. The specific risks for
investing in a managed investment scheme
depend on:
the underlying assets the Trust is exposed
to
the volatility in the Trust’s underlying assets
which can influence performance.
Neither IISL, the underlying investment
managers in which each Trust invests, nor any
related body corporate within the Insignia
Financial Group can give you any assurance
as to the future income distributions, return
of capital or overall performance of the Trusts.
The specific risks for the Trusts are:
Market risk – unexpected conditions such
as market sentiment, government
regulations and local and international
political events may have a negative
impact on the returns of all investments
within a particular market. Market risk may
have different impacts on each type of asset,
investment style and investor.
Company or security specific risk – refers
to a number of risks that can affect the value
of a specific security. For example, a fall in
the profit performance of a company may
adversely impact its share price and may
also affect the interest rate it has to pay to
borrow funds which, in turn, will affect the
value of its debt securities.
Currency risk – Trusts investing in
international markets are exposed to
changes in exchange rates. Changes in the
value of foreign currencies may fall in value
relative to the Australian dollar which can
have an adverse impact on investment
returns. Currency hedging may reduce
exposure to foreign currency fluctuations;
however, investors should be aware that
hedging against currency fluctuations
involves costs and implementation risks
due to the volatility of currency and
securities markets.
Interest rate risk – changes in interest rates
can influence the value and returns of
investments.
Counterparty or credit risk – the risk of a
loss arising from the failure of a borrower to
repay its debt or meet its financial
obligations. It arises primarily from
investments in fixed interest securities,
mortgage securities and from certain
derivatives.
Liquidity risk – the risk that the Trust will
experience difficulty in either utilising
assets or otherwise raising sufficient funds
to satisfy commitments associated with
financial instruments. Liquidity risk arises
from the absence of an established market
or a shortage of buyers for an asset
(including a derivative) resulting in an
inability to sell at the current valuation in a
timely fashion. Under abnormal or difficult
market conditions, some normally liquid
assets may become illiquid.
Derivative risk – IISL and the underlying
investment managers may utilise a range of
derivative instruments such as forward
foreign exchange contracts for hedging and
investment purposes. Hedging involves
establishing offsetting positions in
derivative markets to protect the value of
the underlying physical assets from
anticipated adverse price movements over
time. Gains or losses can result from
investments in derivatives.
Trust risk – this is the risk associated with
a Trust itself. For example, there is a risk
that a Trust may delay or suspend
withdrawals, or that a change to the level of
fees may impact returns to investors.
Investment manager risk – this is the risk
that IISL or the selected investment
managers (responsible for the Trusts’
investments) will not achieve the
investment objective of the Trusts, may
underperform the relevant performance
benchmark or may underperform other
investment managers.
Responsible entity risk – responsible entity
risk is the risk that the responsible entity
for the Trusts, IISL, does not properly
discharge its duties in the management of
the Trusts.
Legislative risk – changes to existing law
or the introduction of new law could have a
significant impact on an investment.
Legislative risk generally entails an
amendment, introduction or abolition of one
or more laws that may directly impact a
given investment.
International investment risk – Investing
in international markets exposes a Trust to
additional risks associated with currency
movements, differing tax structures,
accounting, auditing and financial reporting
standards, and social, economic and political
factors that affect a country or region.
Real estate industry risk – The value of
securities in the real estate industry may be
affected by changes in real estate values and
rental income, property taxes, increases in
operating expenses, interest rates, and tax
and regulatory requirements (including
changes to zoning laws).
| 21
How you can manage risk
When investing, it is always important to
consider your investment objectives, your
investment time frame and the levels and
types of risk you are willing to accept, among
other things. Before investing, we recommend
you speak to your financial adviser who can
help you understand the various types of risks
associated with investing and assess whether
this investment option is appropriate for your
specific requirements.
Asset classes
Asset classes are groups of similar types of
investments. Each class has its risks and
benefits, and goes through its own market
cycle.
A market cycle can take a couple of years or
many years as prices rise, peak, fall and
stabilise. Through investing for the long term,
at least through a whole market cycle, you can
improve your chance of benefiting from a
period of strong returns and growth to offset
periods of weakness.
The following illustration shows indicative
returns and volatility for the main asset classes
over a whole market cycle. However, each
market cycle is different, so unfortunately it
isn't possible to accurately predict asset class
returns or their risks. Depending on the
conditions at the time, actual returns could be
significantly different from those shown.
Cash
Fixed interest
Alternatives
Infrastructure
Property
Shares
Lower return Higher return
Lower risk
Higher risk
Fees and other costs
DID YOU KNOW?
Small differences in both investment performance and fees and costs can have a substantial impact on your long-term returns.
For example, total annual fees and costs of 2% of your account 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 fees. Ask the fund or your financial adviser.
TO FIND OUT MORE
If you would like to find out more, or see the impact of the fees based on your own circumstances, the Australian Securities and
Investments Commission (ASIC) MoneySmart website (www.moneysmart.gov.au) has a managed fund 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 costs may be deducted from your money, from the returns
on your investment or from the assets of the Trusts as a whole.
Taxes are set out in another part of this document.
You can also use this information to compare the fees and costs with those of other managed investment schemes.
You should read all the information about fees and costs because it is important to understand their impact on your investment.
These fees are quoted inclusive of goods and services tax (GST) and after taking into account any expected reduced input tax credits (RITCs).
Where fees have been quoted to two decimal places, the actual fee may have been rounded.
22 |
Fees and costs summary
MLC MultiActive
How and when paidAmount Type of fee or cost
Ongoing annual fees and costs
Estimated to be between 0.36% and 0.90%
pa of the net asset value (NAV) of the
Management fees and costs
The fees and costs for managing your
investment
1 The management fee is calculated on the NAV of the
Trust. It is not deducted from your account directly
but from the assets of the Trust. It is accrued daily
and paid monthly and the accrued amount is
Trust, depending on your choice of
MultiActive product, comprised of:
incorporated into the daily unit price of the Trust. The
1 A management fee of between 0.36%
and 0.87% pa of the NAV of the Trust
amount of this fee can be negotiated by wholesale
investors. Please refer to the ‘Differential fees’ section
on page 26.
2 Estimated indirect costs of between
0.00% and 0.06% pa of the NAV of the
Trust
2 Indirect costs are generally deducted from the assets
of the Trust as and when they are incurred.
Performance fees charged will vary between underlying
investment managers, as different calculation methods
Estimated to be between 0.00% and
0.43% pa of the NAV of the Trust,
Performance fees
Amounts deducted from your investment
in relation to the performance of the
product
are adopted and different performance targets set by
each individual investment manager.
depending on your choice of MultiActive
product.
These costs are paid from the assets of the Trust as and
when they are incurred. They are not deducted directly
Estimated to be between 0.00% and 0.19%
pa of the NAV of the Trust, depending on
your choice of MultiActive product.
Transaction costs
The costs incurred by the scheme when
buying or selling assets
from your account but from the assets of the Trust and
incorporated into the daily unit price of the Trust.
Member activity related fees and costs (fees for services or when your money moves in or out of the product)
Not applicableNilEstablishment fee
The fee to open your investment
Not applicableNil Contribution fee
The fee on each amount contributed to
your investment
The buy-sell spread is the difference between the
application price and withdrawal price. It is an
Estimated to be between 0.02% and 0.20%
on investments into the Trust, and
Buy-sell spread
An amount deducted from your
investment representing costs incurred
in transactions by the scheme
adjustment determined by the RE to take into
consideration costs incurred when buying and selling
the underlying securities in the Trust. The buy-sell
between 0.03% and 0.20% on withdrawals
from the Trust, depending on your choice
of MultiActive product.
spread is included in the unit price of the Trust and is
not charged to you separately.
Not applicableNilWithdrawal fee
The fee on each amount you take out of
your investment
Not applicableNilExit fee
The fee to close your investment
Not applicableNilSwitching fee
The fee for changing investment options
| 23
Additional explanation of fees and costs
Management fees and costs
The estimated management fees and costs are
fees and costs for investing the Trusts’ assets.
The management fees and costs don’t include
performance fees, transaction costs or the
buy-sell spread.
Management fees and costs are made up of
the management fee and indirect costs
described below.
Management fee
The management fee is an estimate and
includes fees charged by:
underlying investment managers, and
the Responsible Entity for managing the
assets of the Trusts and overseeing the
day-to-day operations of the Trusts.
The Responsible Entity will pay out of its
portion of the management fee any fees and
other costs and expenses incurred in operating
the Trusts (‘operational costs’), such as custody
costs, registry costs, auditing fees and tax
return fees. The payment of any fees and other
costs and expenses out of the management
fee does not extend to the performance fee.
This will be a cost to the relevant Trust in
addition to the management fee.
We may decide in the future to recover
operational costs directly from the relevant
Trust in addition to the management fee.
Indirect costs
The Trusts may also incur costs and expenses
that won’t be charged as a management fee
but are expected to reduce the net return of
the Trusts. These indirect costs may be
incurred through investment in underlying
investment funds. These indirect costs are
reflected in the daily unit price and any
reporting on the performance of the Trusts.
Given portfolio changes to the Trusts following
30 June 2023, the Responsible Entity considers
that the costs for the previous financial year
may not be a reliable indicator of the costs for
the current financial year. As such, indirect
cost amounts included in this document are
based on (i) reasonable estimates of the costs
for the current financial year (taking into
account such portfolio changes): and (ii) the
actual costs incurred for the financial year to
30 June 2023, and involve estimates where
information was unavailable at the date this
PDS was issued. Amounts may vary from time
to time and you will not be given advance
notice of any changes to these amounts.
Updated amounts will be available
at ioof.com.au/forms
The current estimated management fees,
estimated indirect costs, estimated transaction
costs, estimated performance fees and total
estimated ongoing annual fees and costs for
each Trust are detailed below:
Buy-sell spread
1, 4
Total
estimated
management
fees & costs
(% pa)
1, 2
Estimated
performance
fees (% pa)
1, 3
Estimated
net
transaction
costs (%
pa)
1, 2
Estimated
indirect
costs (% pa)
1
Estimated
management
fees (% pa)
1
Trusts
Sell
(%)
Buy
(%)
Diversified Trusts
0.060.050.610.030.040.040.50MLC MultiActive Capital Stable
0.070.060.880.070.060.050.70MLC MultiActive Conservative
0.080.081.010.130.070.060.75MLC MultiActive Moderate
0.100.101.170.220.090.060.80MLC MultiActive Balanced
0.110.111.260.260.100.050.85MLC MultiActive Growth
Sector Trusts
0.030.020.360.000.000.000.36MLC MultiActive Cash Enhanced
0.080.050.590.040.030.020.50MLC MultiActive Diversified Fixed
Income
0.140.140.950.000.080.000.87MLC MultiActive Property
0.200.201.250.430.090.000.73MLC MultiActive Australian Shares
0.100.101.050.000.190.010.85MLC MultiActive Global Shares
1 These estimated fees and costs are subject to change from time to time (please refer to the ‘Fee changes’ section on page 26). The actual fees and costs may
vary from the estimated fees and costs listed above depending on changes to the composition of the Trusts’ underlying assets, changes to underlying
investment managers and their fees, where any unusual or non-recurrent expenses are incurred or any changes to other related expenses.
2 These costs are paid from the assets of the Trust as and when they are incurred. This is the estimated percentage by which each Trust’s investment return
has been reduced by transaction costs.
3 Some underlying investment managers may charge performance fees from time to time. Estimated performance fees and total estimated ongoing annual
fees and costs (which include estimated performance fees) are subject to change without prior notice. See the following ‘Performance fees’ section for further
information.
4 The actual buy-sell spread may differ from the estimated spreads listed. Buy-sell spreads are subject to change from time to time without prior notice. For
additional information, see the ‘Buy-sell spread’ section on page 26 and the ‘Transaction costs’ section on page 25.
24 |
Performance fees
Some Trusts have direct or indirect exposure
to underlying investment managers who may
charge performance fees from time to time. It
is important to note that it is the underlying
investment manager who charges the
performance fee, not the Trusts themselves or
IISL.
Performance fees (if incurred), will be charged
in addition to the management fees and costs
and transaction costs and will form part of the
total ongoing annual fees and costs of the
Trust(s).
What is a performance fee?
A performance fee is a fee that may be charged
by an underlying investment manager,
calculated by reference to the outperformance
of their underlying fund against specific
performance hurdles.
Performance fees provide an incentive for
underlying investment managers to generate
superior investment returns. This means
performance fees are usually charged as a
result of a corresponding increase in
investment returns of the underlying fund
over a specific period, which benefits investors
through improved performance.
How are performance fees charged?
How performance fees are charged will vary
between underlying investment managers, as
different calculation methods are adopted and
different performance targets are set by each
individual investment manager.
Some Trusts gain exposure to a variety of
underlying investment managers who all
perform differently in different market
conditions. Consideration is also given to
periods of past under-performance by the
underlying manager, which must be recovered
before a performance fee is incurred. Generally,
if the underlying manager does not achieve
their set performance targets, then no
performance fee is charged.
Underlying investment managers are also
subject to change from time to time and
performance fees are generally incurred as and
when charged by the underlying managers in
response to their outperformance, making it
difficult to accurately predict future
performance fee impacts at the Trust level.
If a performance fee applies, it will be deducted
from the assets of the relevant Trust and
incorporated into the daily unit price. This
means a performance fee (where applicable)
will not be charged to you directly, but will be
indirectly incurred as it will form part of the
total management costs for the relevant Trust.
Estimated performance fees set out in the table
in the Additional explanation of fees and costs
section are calculated by reference to the
average of the last five years’ experience to 30
June 2023 where available or, for new
arrangements, use a reasonable estimate for
the current financial year, adjusted to reflect
a 12-month period. Whilst some of the Trusts
currently do not incur performance fees, this
position may change in the future if those
Trusts subsequently gain exposure (directly
or indirectly) to underlying investment
managers that charge performance fees.
Performance fees are subject to change
without prior notice and may be more or less
than the figures listed.
Performance fee example
The estimated five year average annualised
performance fee for MLC MultiActive Balanced
is 0.22% pa. If you have invested $50,000 in
this Trust, you may be charged a performance
fee of $110 pa.
Transaction costs
Transaction costs are the costs incurred when
assets in the Trusts or in underlying
investments are bought or sold and includes
costs such as brokerage, stamp duty,
settlement costs, clearing costs, custody
transaction costs and government charges.
Transaction costs may also be incurred when
the market process for trading assets causes
the price paid or received to be different from
the value of the assets immediately after the
transaction, for example, where bid/ask
spreads are incurred.
These costs are not included in the
management fees and costs and are an
additional cost to you. No part of the
transaction costs are paid to us or any
investment managers.
Given portfolio changes to the Trusts following
30 June 2023, the Responsible Entity considers
that the costs for the previous financial year
may not be a reliable indicator of the costs for
the current financial year. As such, transaction
cost amounts included below are based on (i)
reasonable estimates of the costs for the
current financial year (taking into account such
portfolio changes); and (ii) the actual costs
incurred for the financial year to 30 June 2023,
and involve estimates where information was
unavailable at the date this PDS was issued.
The indicative estimated transaction costs for
the Trusts (based on the 30 June 2023 financial
year) as amended as noted above are detailed
in the table below:
Equals transaction costs
(%pa)
3
Minus buy-sell spread
recovery (%pa)
2
Total estimated gross
transaction costs (%pa)
1
Trusts
0.040.030.07MLC MultiActive Capital Stable
0.060.030.09MLC MultiActive Conservative
0.070.050.12MLC MultiActive Moderate
0.090.050.14MLC MultiActive Balanced
0.100.060.16MLC MultiActive Growth
0.000.030.03MLC MultiActive Cash Enhanced
0.030.050.08MLC MultiActive Diversified Fixed Income
0.080.150.23MLC MultiActive Property
0.090.060.15MLC MultiActive Australian Shares
0.190.130.32MLC MultiActive Global Shares
1 Presented as a percentage of the average Trust size.
2 The buy-sell spread is incurred by those investors trading (buying and selling investments) in the Trusts.
3 This is the estimated percentage by which the Trust’s investment return has been reduced by transaction costs.
You can determine the dollar value of these costs by multiplying the transaction cost rate with your average account balance. For example,
the transaction costs on an average balance of $50,000 in MLC MultiActive Balanced are estimated at $45 pa (ie $50,000 x 0.09% pa)., However
it is important to note, that such costs for future years may differ. This cost is an additional cost to the investor when it has not already been
recovered by the buy-sell spread charged by the Responsible Entity.
| 25
Fee changes
We have the right to increase the management
fees and costs or to charge fees not currently
levied, in each case, up to the maximum limits
set out in the constitutions governing the
Trusts without your consent. If we choose to
exercise this right, we will provide you with at
least 30 days’ prior written notice or otherwise
notify you as the law requires.
At the date of this PDS, no contribution,
withdrawal or switching fees apply.
Buy-sell spread
You incur the buy-sell spread when you buy
or sell units in the Trusts. The buy spread is
added to the unit price when you buy units.
The sell spread is deducted from the unit price
when you sell units. The buy-sell spread is not
a fee and no part of the buy-sell spread is paid
to us or to any investment managers. The
buy-sell spread is retained in the Trusts to
cover the estimated transaction costs incurred
as a result of investor applications and
redemptions.
Buy-sell spreads may change from time to
time. Increases (and decreases) may be
significant. The latest buy-sell spreads can be
found at ioof.com.au/forms. Investors may
not be notified of changes, and should check
current buy-sell spreads before making any
investment decision.
Reinvestment of distributions does not incur
the buy spread.
The estimated buy-sell spreads that apply to
each Trust as at the date of this PDS are shown
in the table in the Additional explanation of
fees and costs section.
Differential fees
The management costs may be negotiated
with persons who qualify as wholesale
investors within the meaning of section 761G
of the Corporations Act 2001 (Cth) (Corporations
Act), such as sophisticated and professional
investors. In negotiating such fees, we will take
into consideration our obligations under the
Corporations Act. There is no set method for
negotiating fees. Any negotiated management
costs are borne by IISL. The cost of any waiver
of fees does not increase the management
costs paid by any other unitholder in the Trust.
Please contact Investor Services on 1800 002
217 (+613 8614 4966 if calling from New
Zealand) for further details.
Fees may be waived or deferred
To the extent permitted under the constitution
of each Trust, we may waive or defer the
payment of our management fees and
reimbursement of expenses. Where a payment
of our management fees is deferred, the fees
accrue daily until paid.
Interfunding
Where the Trusts invest in other unit trusts,
including Insignia Financial Group unit trusts
(referred to as interfunding), we will ensure
there is no doubling-up of management costs.
Taxation
Taxation information is discussed in
the ‘Taxation’ section on page 33.
Financial adviser fee
Additional fees may also be payable to your
financial adviser if consulted. Such fees will
be set out in the Statement of Advice that they
provide to you.
Notice to Investor Directed Portfolio
Service and Master Trust Investors
Investors and potential investors accessing
the Trusts indirectly through an IDPS or
master trust may be charged additional
product related fees and costs on top of the
fees and charges described in the ‘Fees and
other costs’ section of this PDS. Please refer to
the respective IDPS or master trust offer
documents or product disclosure statements
for more information.
26 |
Example of annual fees and costs for a balanced investment option
This table gives an example of how the ongoing annual fees and costs in a balanced trust can affect your investment over a one-year period.
You should use this table to compare this product with other managed investment products.
Balance of $50,000 with total contributions of $5,000 during the yearExample – MLC MultiActive Balanced
For every additional $5,000 you put in, you will be charged $0.NilContribution fees
And, for every $50,000 you have in MLC MultiActive Balanced you
will be charged or have deducted from your investment $430 each
year.
PLUS
Management fees and costs:
0.80% paManagement fee
0.06% paIndirect costs
0.86% paTOTAL
And, you will be charged or have deducted from your investment $110
in performance fees.
0.22% pa
PLUS
Performance fees
And, you will be charged or have deducted from your investment $45
in transaction costs.
0.09% pa
PLUS
Transaction costs
If you had an investment of $50,000 at the beginning of the year and
you put in an additional $5,000 during that year, you would be charged:
$585*
EQUALS
Cost of MLC MultiActive Balanced
What it costs you will depend on the fees you negotiate.
* Additional fees may apply:
Establishment fee $0
And, if you leave the managed investment scheme early, you may also be charged exit fees of 0% of your total account balance. ($0 for
every $50,000 you withdraw). This example assumes the $5,000 contribution occurred at the end of the first year therefore it does not
include the management fees and costs on the additional $5,000 invested, nor any market movement on the total amount invested. You
may also be charged a buy-sell spread whenever you make an investment, withdrawal or investment switch. The estimated sell
spread applied to withdrawals from the Trust is currently 0.10% (this will equal $5 for every $5,000 you withdraw).
Cost of product information
Cost of product for 1 year
The cost of product gives a summary calculation about how ongoing annual fees and costs can affect your investment over a 1-year
period for all investment options. It is calculated in the manner shown in the ‘Example of annual fees and costs’.
The cost of product assumes a balance of $50,000 at the beginning of the year with a contribution of $5,000 during the year. (Additional
fees such as a buy-sell spread may apply – refer to the ‘Fees and costs summary’ table for the relevant Trust.)
You should use this figure to help compare this product with other products offered by managed investment schemes.
MLC MultiActive Trusts
Cost of productTrusts
$305MLC MultiActive Capital Stable
$440MLC MultiActive Conservative
$505MLC MultiActive Moderate
$585MLC MultiActive Balanced
$630MLC MultiActive Growth
$180MLC MultiActive Cash Enhanced
$295MLC MultiActive Diversified Fixed Income
$475MLC MultiActive Property
$625MLC MultiActive Australian Shares
$525MLC MultiActive Global Shares
The above costs of product tables are based on the fees and costs information based on the financial year ended 30 June 2023.
| 27
How to invest in MLC MultiActive
Making your application*
To invest in one of the MLC MultiActive Trusts,
you will need to meet the minimum initial
investment amount for that Trust (for further
information on the minimum investment
amount for each Trust please refer to the ‘MLC
MultiActive summary’ section on page 4). If
you are investing through an IDPS or master
trust, these minimum investment amounts
do not apply. For further information, please
check with the operator of the IDPS or the
trustee of the master trust to confirm what
minimum investment amounts apply to you.
For an initial investment, please return your
completed application form accompanying
this PDS and:
include your cheque made payable to –
‘IOOF Applications Trust Account
<Applicant(s) Name>’ and marked ‘Not
Negotiable’, or
to pay via BPAY, please refer to your
application form for further details (please
note, MLC MultiActive Property does not
currently accept this form of payment).
If you are a new investor to the Insignia
Financial Group, you will also be required to
provide proof of identification information
and supporting documentation (see the
accompanying forms booklet for further
information on these requirements).
The application form and cheque should be
sent to:
MLC MultiActive
Reply Paid 264
Melbourne VIC 8060
Confirmation of your investment will be sent
to you when your application is finalised.
Note: if you are investing in the Trusts
via an IDPS or master trust, you must
complete the documents that the IDPS
or master trust requires. You do not need
to fill in the application form
accompanying this PDS or provide proof
of identification.
Investor identification requirements
for new investors
In order to comply with the Anti-Money
Laundering and Counter Terrorism Financing
Act 2006 (AML/CTF), we may require you to
provide us with proof of identification. In some
circumstances, depending on the type of
investor you are, we may also require
additional client identification documentation.
See the accompanying forms booklet for
further information.
As a general rule, you will need to provide proof
of your identity:
if you do not have any existing accounts set
up within the Insignia Financial Group
if you have existing accounts with the
Insignia Financial Group, but wish to open
an additional account:
that will be in a different name to the
existing accounts (eg in your family
company name, or a joint account) or
that will be in a different capacity to the
existing accounts (eg as trustee for a trust,
a deceased estate, for a person under the
age of 18 years, or on behalf of an
unincorporated association).
Where proof of identification is required, you
will need to return your initial application
form, together with any certified copies of
supporting identification documentation or
alternatively, provide these to your financial
adviser.
1
We reserve the right not to accept (wholly or
in part) any application for any reason or
without reason. If we refuse to accept an
application, any funds received from you will
be returned to you without interest.
Incomplete or incorrectly completed
application forms
If, for any reason, we are unable to process
your application (eg the application form is
incomplete or incorrectly completed or we are
not satisfied that we have received the
necessary proof of identification requirements
to meet our obligations under AML/CTF
legislation), the application monies will be held
by us in a non-interest bearing trust account
for up to 30 days (whilst we endeavour to
verify your identification information or
obtain any necessary outstanding information)
after which we will return the application
monies to you.
Unlicensed financial advisers
If you have made your application using an
unlicensed financial adviser, we will not
process your application and your monies will
be returned to you. To ensure that your
financial adviser is licensed, please check
ASIC’s MoneySmart website
(www.moneysmart.gov.au).
Applications made outside Australia
or New Zealand
Except for MLC MultiActive Property, we do
not accept applications made outside Australia
or New Zealand. Applications for MultiActive
Property are not accepted outside Australia.
Applications made by persons under
18 years of age
We are unable to accept applications from
persons under the age of 18 years. Applications
in respect of minors should be made by their
parent or guardian. The investment may be
titled ‘Name of parent/guardian account for
Name of Minor.
*Important note about investing in the
Trusts
The Responsible Entity has absolute
discretion to accept or reject applications
(even if we have received cleared funds)
or accept in part only. For an application
to be valid, the application form must be
correctly completed and be appropriately
signed by the applicant(s), and the
investment must comply with the
designated minimum investment
amounts referred to in the ‘MLC
MultiActive summary’ section (page 4)
although IISL, at its discretion, may
accept amounts below the minimums.
Cooling-off period
Should you change your mind about your
initial investment into a Trust, you have 14
days from the earlier of:
1 receipt of your confirmation letter
2 the end of the fifth business day after the
day on which the investment has been
issued
to give written notice of your intention to
cancel your investment. Your investment will
be withdrawn at the prevailing unit price (ie
the withdrawal value of your investment will
be adjusted for market movements, which
means that you may not receive the same
amount that was invested due to negative
market movements). The amount that will be
repaid may also be reduced to account for
reasonable administrative and transaction
costs.
Please note: A cooling-off period does
not apply to indirect investors, the
operator of an IDPS or trustee of a master
trust, to investment amounts of
$500,000 or more, or where units have
been issued as a result of an additional
investment, switch or distribution
reinvestment plan.
1 Additional client identification requirements may apply depending on the type of investor applying. See the forms booklet for further information.
28 |
Notice to indirect investors
Investors and prospective investors accessing
any of the Trusts indirectly through an IDPS
or master trust may use this PDS for that
purpose. If you wish to make, withdraw or
transfer to another person investments
through an IDPS or master trust, you will have
to direct the operator of the IDPS or trustee of
the master trust to do so on your behalf.
Withdrawal notices received from the operator
of the IDPS or trustee of the master trust will
be processed in the manner described in this
PDS. The time taken to process applications
and withdrawals through your IDPS or master
trust may vary due to the processing
requirements of the operator of the IDPS or
trustee of the master trust. Please refer to the
disclosure document for the IDPS or master
trust.
Such indirect investors do not acquire the
rights of a unitholder of the Trust(s). Rather,
it is the operator or custodian of the IDPS or
trustee of the master trust that acquires the
rights of the unitholder in a Trust. Therefore,
indirect investors do not receive income
distributions or reports directly from the
Responsible Entity, do not have the right to
attend meetings of unitholders, do not have
the right to vote in meetings and do not have
cooling off rights.
Indirect investors should not complete the
application form accompanying this PDS and
should seek their own financial or taxation
advice. The rights of indirect investors are set
out in the disclosure document for the IDPS
or master trust.
When investing through an IDPS or master
trust, enquiries should be made directly to the
operator of the IDPS or trustee of the master
trust.
How to add to your investment**
You can add to your investment at any time,
by simply:
returning a completed additional investment
instruction form (located in the forms
booklet accompanying this PDS); and
making payment of the investment amount
by:
including a cheque made payable to ‘IOOF
Applications Trust Account –
<Applicant(s) Name>’ and marked ‘Not
Negotiable’, or
paying via BPAY
®2
(other than for MLC
MultiActive Property which does not
accept this form of payment method).
The additional investment instruction form
(and cheque, if applicable) should be sent to:
MLC MultiActive
Reply Paid 264
Melbourne VIC 8060
Confirmation will be sent to you once
additional units have been issued.
Additional investments using BPAY
BPAY is a secure and convenient way to make
one-off additions to your investment by calling
your financial institution or visiting their
website.
To make an additional investment using BPAY,
you will need to have:
the Biller Code for each Trust in which you
wish to make an additional investment
(please see the accompanying forms booklet)
and
your Customer Reference Number (CRN).
Your payment request will generally be
received by us on the business day after you
make the payment via your financial
institution (except where your payment has
missed your financial institution’s cut-off time
for that business day – usually 5pm in
Melbourne). This means that your payment
will generally be processed by us on the
business day after you have made your
payment. Units will only be issued once we
have received your funds and will be issued
based on the application price applying at the
time of processing.
Please note that BPAY is not currently
available for MLC MultiActive Property.
BPAY is only available to investors with an
Australian financial institution account. Please
contact your financial institution to arrange
to use BPAY through telephone or internet
banking. Please note that BPAY is not available
from all financial institutions.
Please note: BPAY payments generally
cannot be reversed. Additional
investment minimums still apply to
BPAY payments.
How to switch your investments**
To apply to switch all or part of your
investment from one Trust to another Trust,
simply complete and return the switching
instruction form in the forms booklet
accompanying this PDS and forward your
switching instructions to:
MLC MultiActive
Reply Paid 264
Melbourne VIC 8060
If we approve your application, a confirmation
will be sent to you after your switch request
has been finalised.
It is important to note that switching operates
as a withdrawal of units in one Trust and the
investment of units in another Trust and
therefore may have taxation implications. We
recommend that you speak to your financial
or tax adviser.
Please note: The PDS for the Trusts may
be updated from time to time. You may
request a copy of the most recent version
of the PDS free of charge by contacting
Investor Services on 1800 002 217 (+613
8614 4966 if calling from New Zealand)
or by emailing
Also see the inside front cover on how to
find updated PDS information.
How to make withdrawals**
You may apply to withdraw part or all of your
investment from the Trust(s) at any time by
writing to us with the following details:
your account number
your contact details
the amount (dollars or units) you wish to
withdraw
details of your financial institution account
where the withdrawal proceeds are to be
deposited.
The request must be signed by the registered
unitholder in accordance with the most recent
signing instructions provided by you.
Please note: We will only pay withdrawal
proceeds to your nominated bank
account or by cheque made out to you.
We will not pay withdrawal proceeds to
the bank account of a third party.
If we accept a withdrawal request:
As part of the withdrawal proceeds,
unitholders may receive their share of any
net income of the relevant Trust for the
period of time during which their units were
on issue in the relevant distribution period.
These proceeds are included in the unit
price.
Unitholders will also receive their share of
the capital value of the relevant Trust on
withdrawal. Any capital gain or loss on
disposal of the units for tax purposes should
be calculated by reference to this amount.
Confirmation of your withdrawal will be sent
to you usually within seven business days
after your withdrawal request is finalised.
We will not satisfy a withdrawal request
(including switches) if a Trust becomes illiquid
(as defined under the Corporations Act).
2 Registered to BPAY Pty Ltd ABN 69 079 137 518.
| 29
If the Trusts are illiquid (as defined in the
Corporations Act) withdrawals from the Trusts
will only be possible if we make an offer of
withdrawal under the Corporations Act. We
are not obliged to make such an offer.
However, if a withdrawal offer is made,
investors may only be able to withdraw their
investment in accordance with the terms of
any current withdrawal offer. We may satisfy
all or part of your withdrawal by transferring
assets to you rather than paying cash. If we
do so, the assets, together with any cash, must
be of equal value to the total amount due to
you. We may require any costs involved in
transfer of assets to be borne by you.
Under the constitutions of the Trusts, we may
suspend withdrawal requests at any time for
such period as we consider appropriate in the
circumstances. However, we can only do this
if we believe this is desirable and is in the best
interests of the Trust or unitholders of the
Trust. For instance, we may suspend
withdrawal requests where it is impracticable
to realise sufficient assets of the Trust to allow
withdrawal requests to be met, or if we believe
it is not in the interests of the Trust to realise
assets at that time.
Withdrawal proceeds will usually be paid by
electronic transfer within 10 Business Days of
receipt of the withdrawal request to a
nominated Australian bank, building society
or credit union account. There are a number
of circumstances in which this period may be
extended, including where it is impractical for
us to calculate the net asset value of a Trust,
for example due to the closure of a securities
exchange or trading restrictions on a securities
exchange; an emergency or other state of
affairs; the declaration of a moratorium in a
country where the Trust has assets; a closure
or restrictions on trading in a relevant foreign
exchange market (impacting on the conversion
of any currency); or where the realisation of
assets cannot be effected at reasonable prices;
or having regard to the value of withdrawal
requests received or assets which must be
realised to satisfy those requests. In such
circumstances, the period for satisfying
withdrawal requests may be extended while
the circumstances apply.
Fax or electronic instructions
Existing investors may provide us with
instructions by fax or via electronic means
such as scanning and email at our discretion.
To comply with AML/CTF legislation and
proof of identity requirements, new
applications cannot be processed via fax
or electronic means without
accompanying application
documentation and applicable proof of
identification, with authorised
signatures.
You should note that fraudulent or other
unauthorised instructions or requests can be
made by persons who have access to your
account name, investor or account number
and a copy of your signature. Accordingly, you
agree to accept full responsibility and release
and indemnify us or any other related body
corporate within the Insignia Financial Group
and the Trusts against all claims and demands
for any loss arising as a result of us acting upon
a faxed or electronic instruction which appears
to bear your signature(s).
**Important note about our discretions
We have absolute discretion to accept or
reject an initial investment, a switch, a
withdrawal request or an additional
investment. For a request to be valid it
must be correctly completed, be
appropriately signed by the investor(s),
and comply with any designated
minimum investment amounts referred
to in this PDS (although IISL, may at its
discretion, accept amounts below the
minimums).
If a withdrawal request results in a
holding in a Trust falling below the
required minimum holding, we may
redeem your entire holding in the Trust.
If we increase the required minimum
holding, we may, after giving 30 days’
prior written notice, redeem holdings
below that amount at our discretion. We
may also compulsorily redeem any of
your holdings in a Trust, at any time at
our discretion.
Processing your instructions
Where a valid application for initial or
additional investment or withdrawal request
is received at our head office before 2:00pm
in Melbourne on a business day and we are
satisfied that all proof of identification
obligations under the AML/CTF Act have been
met, we will generally process the request
using the unit price applying to the close of
business that day. We will generally process
your request using the unit price applying to
the following business day if we receive the
request at our head office after 2:00pm in
Melbourne on a business day.
Once your application has been received, we
may have discretion to enter into transactions
on behalf of the Trust in anticipation of
receiving the cleared funds. If the cleared funds
are not received by us, the applicant will be
liable for losses, costs and expenses (including
any tax payable) reasonably incurred by us or
the relevant Trust, including losses as a direct
result of adverse market movements.
If the required documentation does not
accompany your application monies, we may
delay your application request for up to 30
days after which the application monies will
be returned to you.
Unit prices
The application and withdrawal prices for the
Trusts are usually calculated as at the close of
business each business day.
Application price
The application price is usually calculated each
business day, by taking the net asset value of
the Trust and adding to it an amount which
reflects the estimated cost of acquiring the
Trust’s assets (subject to the Responsible
Entity’s discretion to reduce or waive such
costs) and dividing the total figure by the
number of units on issue in that Trust.
Withdrawal price
The withdrawal price is usually calculated each
business day, by taking the net asset value of
the Trust and subtracting from it an amount
which reflects the estimated cost of selling the
Trust’s assets (subject to the Responsible
Entity’s discretion to reduce or waive such
costs) and dividing the net figure by the
number of units on issue in that Trust.
To obtain the most recent unit prices for each
Trust, please visit our website ioof.com.au/
forms, contact Investor Services on 1800 002
217 (+613 8614 4966 if calling from New
Zealand) or email us at
Unit pricing discretion policy
The constitutions of the Trusts allow us to
exercise discretions (for example, determining
transaction costs and rounding) which may
affect unit pricing. Our unit pricing discretion
policy sets out, among other things, the
principles we adhere to when exercising these
discretions. This policy is available free of
charge by contacting Investor Services on
1800 002 217 (+613 8614 4966 if calling from
New Zealand).
How the trusts are valued
Assets within the Trust are usually valued
every business day. More frequent valuations
are permitted under the constitutions of the
Trusts and we may revalue a Trust’s assets
more frequently if it is considered appropriate.
We may also revalue the Trust less frequently
in certain circumstances.
The gross asset value of the Trust equals the
market value of the assets. The net asset value
of the Trust is obtained by deducting any
liabilities of the Trust from the gross asset
value of the Trust.
30 |
Income distributions
Investing in the Trusts means you may receive
income (such as interest, dividends and
realised capital gains) in the form of income
distributions or attributable income. The type
of income you receive depends on the
underlying asset classes within the Trusts.
Income attributed or distributed to you is
generally assessable income and can be made
up of both income and realised capital gains.
Such income is generally calculated based on
the Trust's net income at the end of the
distribution period divided by the number of
units on issue.
Each Trust distributes income on a half-yearly
or quarterly basis (for more information please
refer to the ‘MLC MultiActive summary’ section
on page 4), and is sent to unitholders within
one month of the last day of the distribution
period.
Important note about income
distributions
The constitutions of the Trusts provide
for income distributions to be paid
within a maximum period of three
months from the last day of the
distribution period. There may be times
when income distributions may not be
made, are lower than expected or are
delayed. We may also choose to
distribute income or capital at any other
time.
The constitution of MLC MultiActive
Property provides for income
distributions to be paid within 60 days
from the last day of the distribution
period. There may be times when income
distributions may not be made, are lower
than expected or are delayed. We may
also choose to distribute income or
capital at any other time.
You can choose to have your distributions of
income:
reinvested in additional units (Option A), or
paid to a nominated financial institution
account (Option B).
Option A - Reinvestment of
distributions
Your income distributions can be reinvested
as additional units in the same Trust without
the payment of any applicable buy-spread.
Income distributions will be reinvested using
a unit price calculated on the commencement
of the first day after the distribution period to
which the distribution relates.
This facility can be implemented or cancelled
by you, at any time up to ten days prior to the
expiration of the current distribution period
by sending us a written request.
Option B – Credited to a financial
institution account
Your income distributions can be paid into
your nominated account with a financial
institution. However, if a payment is rejected
by the financial institution, this will be taken
as a direction to reinvest that income
distribution and all future income distributions
as additional units in the Trust from which the
income was derived. The rejected payment will
usually be reinvested within 30 days into the
relevant Trust at the prevailing application
price for the day of actual reinvestment.
If you do not make a choice in the application
form accompanying this PDS, income
distributions will be automatically reinvested
in additional units in the Trust from which the
income distribution was derived.
You may change your choice of distribution
payments up to 10 business days prior to the
expiration of the current distribution period
by sending us a written request. We have the
discretion to decline your request. If the
request is declined, we will notify you within
a reasonable time frame. Distributions
generally cannot be paid to third parties.
You will be sent a statement detailing your
income distributions or attributable income.
Note: We can suspend or cancel the
reinvestment of income distributions at any
time.
Indirect investors will need to consider the
IDPS offer document or master trust product
disclosure statement about what distribution
payment options are available to them.
Investing just before the end of a
distribution period
After an income distribution is paid, the unit
price usually falls by an amount similar to that
of the income distribution per unit. This means
that if you invest just before a distribution,
the unit price may already include attributable
income at the distribution date. Consequently,
by investing just before a distribution period,
you may have some of your capital returned
as income. This could affect your taxation
position and we recommend you seek
professional taxation advice.
Investment by New Zealand
investors
MLC MultiActive Property does not accept
applications outside of Australia (including
New Zealand) and so this section does not
apply to investors in MLC MultiActive
Property.
Warning statement
This offer to New Zealand investors is a
regulated offer made under Australian and
New Zealand law. In Australia, this is Chapter
8 of the Corporations Act 2001 (Aust) and
regulations made under that Act. In New
Zealand, this is subpart 6 of Part 9 of the
Financial Markets Conduct Act 2013 and Part
9 of the Financial Markets Conduct Regulations
2014.
This offer and the content of the offer
document are principally governed by
Australian rather than New Zealand law. In the
main, the Corporations Act 2001 (Aust) and
the regulations made under that Act set out
how the offer must be made.
There are differences in how financial products
are regulated under Australian law. For
example, the disclosure of fees for managed
investment schemes is different under the
Australian regime.
The rights, remedies and compensation
arrangements available to New Zealand
investors in Australian financial products may
differ from the rights, remedies and
compensation arrangements for New Zealand
financial products.
Both the Australian and New Zealand financial
markets regulators have enforcement
responsibilities in relation to this offer. If you
need to make a complaint about this offer,
please contact the Financial Markets Authority,
New Zealand (http://www.fma.govt.nz). The
Australian and New Zealand regulators will
work together to settle your complaint.
The taxation treatment of Australian financial
products is not the same as for New Zealand
financial products.
If you are uncertain about whether this
investment is appropriate for you, you should
seek the advice of a financial advice provider.
Currency exchange risk
The offer may involve a currency exchange
risk. The currency for the financial products
is not New Zealand dollars. The value of the
financial products will go up or down according
to changes in the exchange rate between that
currency and New Zealand dollars. These
changes may be significant.
If you expect the financial products to pay any
amounts in a currency that is not New Zealand
dollars, you may incur significant fees in
having the funds credited to a bank account
in New Zealand in New Zealand dollars.
Making your application
Initial and additional applications can be made
by cheque or BPAY in Australian dollars. Please
note, BPAY is only available to investors with
an Australian financial institution account.
BPAY is not currently available for MLC
MultiActive Property.
New Zealand investors should send the
application and cheque to:
MLC MultiActive
GPO Box 264
Melbourne VIC 3001
Australia
Withdrawals
Withdrawals can be paid to an Australian
financial institution account or by Australian
dollar cheque upon request.
| 31
Income distribution payments
You may choose to have income distributions
paid to your nominated Australian financial
institution account.
If no account is nominated, this will be taken
as a direction to reinvest income distributions
into the Trust from which the income
distribution was received.
Distribution reinvestments
Income distributions will be reinvested using
a unit price calculated on the commencement
of the first day after the distribution period to
which the distribution relates.
Access to information
You can request copies of the following
documents:
the most recent annual report of the relevant
Trust(s) (if any)
the most recent financial statements of the
relevant Trust(s) and if those statements are
not audited or reviewed by an auditor, a
statement to that effect
the auditor’s report on the most recent
financial statements of the relevant Trust(s)
(if any)
the current PDS, or a document that contains
a description of the distribution
reinvestment plan and its terms and
conditions
the constitution of the Trust(s) and any
applicable amendments.
Copies of these documents can be obtained
free of charge by contacting Investor Services
on 1800 002 217 (+613 8614 4966 if calling
from New Zealand). You can also obtain copies
of these documents by electronic means, by
visiting ioof.com.au/forms or emailing us at
A distribution statement will generally be sent
to you within 30 days from the date of the
reinvestment of units, which will include the
amount of the distribution and the number of
units that have been allotted to you. If you are
a New Zealand resident investing in the
Trust(s), any distributions not reinvested will
be paid to you in Australian dollars.
Except for MLC MultiActive Property, the
distribution reinvestment plan described in
this PDS is offered to New Zealand residents
on the following basis:
at the time the price of the units allotted
pursuant to the distribution reinvestment
plan is set, the Responsible Entity won’t
have any information that is not publicly
available that would, or would be likely to,
have a material adverse effect on the
realisable price of the units if the
information were publicly available
the right to acquire, or require the
Responsible Entity to issue, units will be
offered to all investors of the same class,
other than those residents outside New
Zealand or Australia who are excluded so as
to avoid breaching overseas laws
every investor to whom the right is offered
will be given a reasonable opportunity to
accept it
units will be issued on the terms disclosed
to you, and will be subject to the same rights
as units issued to all investors of the same
class as you.
How we keep you
informed
Portfolio Online
You can view your account information online,
via the Portfolio Online area of our
website ioof.com.au
Information available on Portfolio Online
includes:
a portfolio summary of the Trust(s) in which
you are invested, the number of units, unit
price and the current balance of your
account(s)
Trust(s) in which you are invested, the
number of units, unit price and the current
balance of your account(s)
your transaction history including initial
investment, additional investments, income
distributions and withdrawals
an online tool to see how your investment
has performed
personalised reports including your portfolio
history, transaction details, asset allocation
and portfolio valuation
MLC MultiActive Trust profiles including
up-to-date asset and manager allocations
and performance summaries.
How do you register for Portfolio
Online?
You can access Portfolio Online via the home
page of our website ioof.com.au
You will be asked to complete an online
registration form and will then be emailed a
password to gain access to your account.
Please keep this password in a safe place.
Company investors will need to print the
registration form and send this to our office,
prior to being given access to Portfolio Online.
Please contact Investor Services on 1800 002
217 (+613 8614 4966 if calling from New
Zealand) if you require assistance with the
registration process.
Annual statements
After the end of the financial year, you will
receive an annual statement. The annual
statement will outline the total value of the
investment as at the end of that period,
including any switches, withdrawals and
additional investments made and income
distributions received.
Annual taxation statements
You will receive an annual taxation statement
called an Attribution Managed Investment
Trust Member Annual (AMMA) statement after
30 June each year, detailing your share of the
taxable components of the income you are
attributed to.
Distribution statements
A distribution statement will be sent to you in
the month following the end of a distribution
period, detailing the distribution and current
balance.
Financial report
You can elect to receive, free of charge, a copy
of the annual financial report as a hard copy
or an electronic copy by contacting us. If you
do not make an election, you can access a copy
of the annual report on our website after 30
September each year, detailing the financial
position of the Trusts for the financial year
ending 30 June.
Reports under an IDPS or master
trust
If you are investing through an IDPS or master
trust, then reports on your investment will be
distributed by the operator of the IDPS or
trustee of the master trust.
32 |
Taxation
Investment in a managed investment scheme,
such as one of the MLC MultiActive Trusts, is
likely to have tax consequences. You are
strongly advised to seek professional tax
advice. The taxation information provided
below is of a general nature only.
The taxation implications from an investment
in a managed investment scheme (MIS) can be
complex and will depend on a number of
factors such as your tax residency, the taxation
regime the Responsible Entity has entered into
and other factors.
Important note about taxation
We strongly recommend you seek
independent professional taxation advice
on the taxation implications of investing
in MLC MultiActive Trusts.
Attribution Managed Investment
Trust (AMIT) regime
The AMIT regime
Each of the Trusts is an Attribution Managed
Investment Trust (AMIT).
This means:
Each Trust will be deemed to be a ‘fixed
trust’ for taxation purposes.
The allocation of taxable income to its
investors is based on “attribution” on a “fair
and reasonable basis”, rather than a present
entitlement to the “income of the Trust” for
each financial year and the Trust is not liable
for tax provided all its taxable income is
attributed to investors.
A Trust may make year-on-year
adjustments to reflect under-or-over
distributions of the Trust’s income.
Investors may increase or decrease the cost
base of their units where taxable income
attributed is either greater than or less than
(respectively) broadly the cash distribution
and tax offsets for an income year, to help
alleviate the potential for double taxation.
Under the AMIT regime:
Australian residents will include their share
of the Trust’s taxable income in their income
tax return, and
non-residents may have withholding tax
deducted from distributions they receive
from the Trust.
Each Trust may accumulate income which is
reflected in the unit price. Taxable income is
attributed to investors, even if a Trust doesn’t
distribute its income.
However, we intend to continue our current
practice of distributing all of the Trust’s
taxable income (including any capital gains)
to our investors each financial year. We will
notify you if this changes.
The details of the taxable income attributed
to you will be set out in an AMIT Member
Annual Statement (AMMA Statement), which
will contain all necessary tax information. The
tax payable (if any) depends on your individual
tax profile and applicable tax rate.
If you disagree with our attribution of taxable
income, you can object to the Commissioner
of Taxation. If you decide to take this course,
it is important that you obtain professional
tax and legal advice. The constitution provides
for you to give us notice before making an
objection, so please do so and we will work
with you to try to resolve the issue.
Taxation of Financial Arrangements
(TOFA) regime
Certain financial arrangements may be taxed
under the TOFA regime. The TOFA provisions
aim to align the taxation recognition of gains
and losses on financial arrangements with
commercial recognition of such gains and
losses. Under TOFA, the gains and losses on
financial arrangements are recognised on an
accruals basis rather than on realisation basis.
In some cases, amounts may be recognised for
taxation purposes before the relevant gains or
losses are realised by the Trust.
Goods and services tax (GST)
GST will not apply to applications or
withdrawals from the Trusts. Certain expenses
incurred by the Trusts may be subject to GST
(currently at a rate of 10 per cent). The Trusts
may be able to claim a reduced input tax credit
(RITC) in relation to those expenses subject to
GST. Unless otherwise stated, the fees quoted
in the PDS take into account the expected net
impact of GST (ie net of available RITCs).
Tax File Numbers and Australian
Business Numbers
You are not required to quote your tax file
number (TFN), or Australian business number
(ABN)
1
(if applicable), nor claim an exemption
from providing a TFN. However, if a TFN or
ABN is not provided or an exemption is not
claimed, the Responsible Entity is required by
law to withhold tax from distributions at the
top marginal tax rate plus the Medicare Levy.
If you are making this investment on behalf
of a business or enterprise you carry on, you
may quote your ABN instead of a TFN.
Additional disclosure
information
Foreign Account Tax Compliance Act
and the Common Reporting
Standard
The United States (US) Foreign Account Tax
Compliance Act (FATCA) and the Organisation
for Economic Co-operation and Development
(OECD) Common Reporting Standard (CRS)
regimes require financial institutions,
including IISL, to identify and report certain
information relating to investors who are, or
who may appear to be, a resident of any
foreign jurisdiction(s) for tax purposes. This
information is required to be reported to the
Australian Taxation Office (ATO) who may
exchange this with other countries that have
implemented these regimes. We are required
by law to ask investors to provide additional
information to us and/or to report investors
meeting certain criteria.
Enquiries
If you have any enquiries about this PDS or
your investments in the Trusts, please call
Investor Services on 1800 002 217 (+613 8614
4966 if calling from New Zealand) or email
Resolving Complaints
If you are an indirect investor who holds an
interest indirectly through an IDPS or master
trust (an ‘Investor Service’) and you wish to
make a complaint, you should contact your
Investor Service.
If you are a direct investor and you have a
complaint, we can usually resolve it quickly
over the phone on 1800 002 217. If you’d
prefer to put your complaint in writing, you
can email us
at [email protected] or
send a letter to The Complaints Resolution
Manager, GPO Box 264, Melbourne VIC 3001.
We'll conduct a review and provide you with
a response in writing. You have the option of
lodging a complaint with the Australian
Financial Complaints Authority (AFCA)
directly, rather than lodging a complaint with
us. You can also lodge a complaint with AFCA
if you're not satisfied with our response or if
your complaint has not been resolved within
30 days. AFCA provides an independent
financial services complaint resolution process
that's free to consumers. You can contact AFCA
in the following ways:
afca.org.auWebsite:
[email protected]Email:
1800 931 678 (free call)Telephone:
AFCA
GPO Box 3
Melbourne VIC 3001
In writing to:
For more information on our complaints
management policy visit ioof.com.au/
contact-us/complaints
1 Under AML/CTF legislation, disclosure of an ABN is required for those individual investors who are a sole trader.
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You should read this important information
before making a decision as details regarding
complaints and dispute resolution may change
between the time when you read this PDS and
the day when you sign the application form.
Representative facility
You can nominate another person such as a
spouse, relative, financial adviser, accountant
or solicitor to transact on your account on your
behalf. Only you (the investor) can authorise
a representative to act on your behalf. This
facility can be convenient if you are investing
as a company, a self-managed superannuation
fund or other entity, as you can nominate a
single person such as a director, employee or
individual trustee to transact on behalf of the
entity.
To cancel the authority of your nominated
representative, you must give us 14 days’ prior
written notice.
The following conditions apply:
your representative can do everything that
you can do in respect of your investment in
the Trust (except appoint other
representatives). This includes making
withdrawals. However, any payments must
be made to you (the investor) either by
cheque or bank transfer
you are responsible for anything that your
representative does on your behalf
if someone who we reasonably believe to be
your representative acts on your behalf, we
will treat the request as if you had personally
acted
if your representative is a company, one of
its directors or authorised officers can act
as the representative
if your representative is a partnership, one
of the partners can act as the representative.
Please refer to Step 7 of the application form.
Note, proof of identification requirements
under AML/CTF legislation, may apply for
representatives. Refer to the application form
for further information.
Important information about
nominating a representative:
Your security password must be
provided by your representative when
acting or enquiring on your behalf via
the telephone. For more information,
please refer to Step 2 of the application
form.
Anti-Money Laundering
Under the Anti-Money Laundering and
Counter-Terrorism Financing Act 2006 (Cth)
(AML/CTF Act), we are required to collect
original certified copies of original document(s)
(not scanned copies) which must be valid at
the time you send them to Investor Services
to verify your identity and that of related
parties (including, if you are a non-individual
entity, the identity of any persons who are
deemed to own or control (directly or
indirectly) you (‘beneficial owner’)).
In addition, under the AML/CTF Act, we may
be required to ask you for additional identity
verification documents or information about
you, a related party or a beneficial owner either
when we are processing your application or at
some stage after we issue the units.
Until Investor Services receives this
documentation – or if we have concerns that
a transaction requested by you, or anyone
authorised to act on your behalf, might breach
any obligations we have under legislation or
cause us to commit or participate in an offence,
under any law – we reserve the right to:
block, suspend or refuse to process
transactions
freeze accounts or access to funds, or
close your account without further notice.
These actions may be taken if we have
reasonable grounds to suspect that there is a
breach of any of our regulatory obligations,
including where there may be a risk of damage
to our reputation.
We also reserve the right to report details of
accounts, account applications or transactions
to the relevant authorities.
Where transactions are delayed, blocked,
frozen or refused in the above circumstances,
we're not liable for any loss you suffer,
including consequential loss. We will incur no
liability to you or a related party if we do so.
Your privacy
We are committed to protecting your privacy.
Any personal information we collect about you
will be handled in accordance with our Privacy
Policy, which outlines how we manage your
personal information, how you may access or
correct your personal information, and how
you may complain about a breach of your
privacy. To obtain a copy of our Privacy Policy,
please contact Investor Services on
1800 002 217 or visit ioof.com.au/privacy
We collect your personal information from the
application form you complete when applying
for this product for the purpose of providing
you with the products and services that you
request and for related purposes, including
providing you with financial advice and
ongoing services in relation to your account
with us, or providing information about other
products and services that may be of interest
to you. You may contact us at any time to let
us know that you do not want your personal
information to be used or disclosed for
marketing purposes. If you do not provide all
the information requested in your application
form, we may not be able to process your
application.
To verify your identity for Know Your
Customer (KYC) purposes, we may also solicit
personal information about you from reliable
identity verification service providers.
For the purpose of providing you with the
products or services you have requested, we
may disclose your personal information to our
related bodies corporate or external parties,
including your financial adviser or employer,
banks or other financial institutions, medical
professionals, insurers, legal or accounting
firms, auditors, mail houses, or when required
or authorised to do so by law. It is generally
unlikely that we will disclose your personal
information overseas; however any overseas
disclosure does not affect our commitment to
safeguarding your personal information and
we will take reasonable steps to ensure any
overseas recipient complies with Australian
privacy laws.
The Responsible Entity
The overriding responsibility of the
Responsible Entity is to administer and
manage the Trusts.
In exercising its powers and duties, the
Responsible Entity must, amongst other
obligations:
act honestly
act in the best interest of unitholders
exercise care and diligence
ensure that trust property is regularly
valued
comply with the constitutions and
compliance plans of the Trusts
keep the assets of each Trust separate from
IISL’s other assets and those of other trusts
where IISL is the Responsible Entity (except
where pooling is allowed)
make payments only out of the relevant
Trust that are authorised under its
constitution or the Corporations Act
report to ASIC any breaches of the
Corporations Act that relate to the Trusts
and that has had, or is likely to have, a
material adverse effect on the interests of
unitholders.
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Continuous disclosure
Disclosing entities under the Corporations Act
are subject to certain regular reporting and
continuous disclosure requirements. While
some of the Trusts may not currently be
disclosing entities, we intend to comply with
the requirements for disclosing entities in
relation to the Trusts. This means that copies
of documents we lodge with ASIC may be
obtained from or inspected at an ASIC office.
We will also send you free of charge, upon
request, copies of:
the most recent annual financial report
lodged with ASIC
any half year financial reports lodged with
ASIC after the lodgement of that annual
financial report and before the date of this
PDS
any continuous disclosure notices we lodge
after the lodgement of that most recent
annual financial report and before the date
of this PDS.
Constitution
Each Trust is governed by a constitution. The
constitution binds the Responsible Entity and
the unitholders of that Trust. The constitution,
together with the Corporations Act, set out the
conditions under which each Trust operates
and the rights, responsibilities and duties of
the Responsible Entity in respect of each Trust.
In particular, the authorised investment and
valuation procedures for each Trust, the
Responsible Entity’s right to retire and its
ability to charge fees and recover expenses are
included in the constitution.
The Responsible Entity may alter the
constitution of a Trust in certain
circumstances if the Responsible Entity
reasonably considers that the change will not
adversely affect unitholders’ rights. Otherwise,
the Responsible Entity must obtain
unitholders’ approval by special resolution at
a meeting convened for that purpose.
Each Trust may be terminated in certain
circumstances stated in the constitution,
including on exercise of the Responsible
Entity’s discretion to terminate a Trust. Each
Trust may also be terminated and wound up,
as provided in the Corporations Act.
The constitution of each Trust contains
provisions limiting the Responsible Entity’s
need to compensate unitholders. Generally, if
the Responsible Entity complies with its
duties, it will not be required to compensate
unitholders for any loss unless the law requires
it to. The constitution of each Trust also
contains provisions regarding the Responsible
Entity’s liabilities and rights for
reimbursement out of that Trust.
The Responsible Entity receives fees and may
be entitled to reimbursement of certain
expenses as outlined in this PDS. From time
to time the Responsible Entity may hold units
in some or all of the Trusts on its own account.
The Responsible Entity may transfer assets of
a Trust to the unitholder rather than pay cash
in satisfaction of all or part of a withdrawal
request, subject to certain conditions set out
in the constitutions for the Trusts. This may
be subject to conditions, such as, that the
valuation of these assets be calculated within
one month before the date of the proposed
transfer, and that the costs associated with
the transfer of assets be paid by the unitholder
or be deducted from the amount due to the
unitholder.
Copies of the constitution of each Trust may
be inspected by contacting us on 1800 002
217 or we can provide you with a copy on
request.
Unitholder rights
The rights of a unitholder in each Trust are
outlined in the constitution for that Trust. The
rights of a unitholder in each Trust are also
affected by the Corporations Act and
exemptions and declarations issued by ASIC.
Some of these rights include the right to:
apply to withdraw units (please refer to the
‘How to make withdrawals**’ section on
page 29 for circumstances where the
Responsible Entity can delay a withdrawal
request)
receive income and capital distributions
apply to transfer units, noting that the
Responsible Entity may refuse any transfer
request, without giving reasons, subject to
the Corporations Act requirements
upon the death of a unitholder, pass
ownership of units to a surviving joint
holder or where held individually, to the
individual’s legal personal representative on
behalf of their estate
participate in income distributions upon
termination or winding up of the Trust after
the Trust’s liabilities and expenses have
been discharged
call, attend and vote at unitholder meetings.
The constitutions for the Trusts allow for
multiple classes of units to be issued within a
Trust. Each unit a unitholder holds in a Trust
gives a unitholder a beneficial interest in that
Trust as a whole, but not in any particular asset
of the Trust. Holding units in a Trust does not
give a unitholder the right to participate in the
management or operation of that Trust.
Each unit issued in respect of a particular class
within a Trust is of equal value and identical
rights are attached to all units of each
particular class within a Trust.
Compliance plan
The Trusts are governed by a compliance plan
that details how the Responsible Entity will
comply with each Trust’s constitution and the
Corporations Act.
Copies of the constitution of each Trust may
be inspected by contacting us on 1800 002
217 or we can provide you with a copy on
request.
Nature of the Trusts
Each Trust is a registered managed investment
scheme, which is a collective investment in
which unitholders are beneficiaries and are
entitled to participate in accordance with the
provisions of the constitution of the relevant
Trust and the Corporations Act.
Recoverable expenses
The Responsible Entity may charge, or be
reimbursed from a Trust, for a range of
expenses it properly incurs in respect of the
relevant Trust. These are all costs, charges,
expenses and outgoings, reasonably and
properly incurred by the Responsible Entity
in connection with the operation of that Trust.
These expenses are set out in the constitution
of each Trust.
Authorised investments
The constitution of each Trust gives the
Responsible Entity wide discretion over the
investments of the Trusts. This PDS outlines
the investments currently intended for each
Trust. To gain exposure to relevant asset
classes, IISL may hold direct investments, or
gain exposure via specific investments
indirectly through a range of investment
managers, including investments with
associated entities.
Related party contracts
IISL has investment and service contracts with
related parties within the Insignia Financial
Group, including IOOF Service Co Pty Ltd ABN
99 074 572 919 (IOOF Service Co).
IOOF Service Co is the services company which
IISL has engaged to provide certain ongoing
administration and operational services; and
is entitled to a monthly fee paid by IISL in
consideration of IOOF Service Co providing
those services.
Limitation of unitholders’ liability
The constitution of each Trust provides that
the liability of unitholders is limited to the
amount, if any, which remains unpaid in
relation to their investment in the relevant
Trust. The constitution of each Trust also
provides that unitholders shall not be under
any personal obligation to indemnify the
Responsible Entity (or its creditors) in respect
of the liabilities of the Responsible Entity in
relation to the relevant Trust. However, the
Responsible Entity cannot give an absolute
assurance that a unitholder’s liability is limited
in all circumstances as the issue has not been
finally determined in court. The Responsible
Entity excludes any relationship of agency
between the Responsible Entity and any
unitholder.
Borrowing policy
Although the constitution for each Trust
enables the Responsible Entity to borrow on
behalf of the Trust(s) it is the Responsible
Entity’s policy not to borrow for the purpose
of gearing.
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