Benefits of investing in the North Guardian Series

A full suite of solutions for any investor that offers you:

• Access to over 410 managed funds

• Listed Australian shares, including exchange traded funds, exchange traded commodities, listed property trusts and real estate investment trusts

• Term deposits from four different bank providers, and

• Flexible pricing including low-cost options.

This product is intended for a consumer who is seeking capital growth. It has a high risk/return profile and is intended for use up to a standalone solution of an investment portfolio.
It is likely to be consistent with the financial situation and needs of a consumer with a minimum investment timeframe of 4 years and who is unlikely to need to withdraw their money on less than one week’s notice.

About the Fund

The North Guardian Investment Options are a series of diversified funds that provide exposure to a mix of Australian and international shares, Australian and international fixed interest and cash. There are three Investment Options—North Guardian Moderately Defensive, North Guardian Balanced and North Guardian Growth—and in each Investment Option exposures may be achieved by holding the assets directly, indirectly through investments in other managed investment schemes (including index funds) or synthetically through derivatives.

The aim of each North Guardian Investment Option is to provide a rate of investment growth over the medium to long term that is similar to that of a traditional diversified fund with comparable target asset allocations, while managing the level of short-term fluctuations across different market conditions.

The North Guardian Investment Options aim to do this by increasing or decreasing their exposure to shares based on estimated short-term market volatility. Changes to exposure are permitted within specified ranges for each North Guardian Investment Option. For more information regarding these ranges, please see page 7 of the PDS.

In contrast to a traditional diversified fund, the allocation to shares in the North Guardian Investment Options can change significantly from time to time in response to changes in sharemarket volatility. The strategy aims to have a lower than normal allocation to shares when sharemarket volatility is higher than average, and to have a higher than normal allocation to shares when sharemarket volatility is lower than average.

It is important to note that the North Guardian Investment Options' strategy will not limit the size of any decline in portfolio value nor provide any capital guarantee of your initial investment amount or the value of your portfolio.

How we invest your money

Investment strategy

To invest in a diversified mix of growth and defensive assets while changing exposure to growth and defensive assets based on estimated short-term volatility (as described in the About the North Guardian Investment Options section' of the PDS). Growth assets such as Australian and international shares are expected to have an average allocation over time of around 50%, with the balance of the Investment Option's portfolio invested in defensive assets such as cash and fixed interest. Investments within each asset class will be made on a passive basis through one or a combination of:

• direct investments in the relevant assets

• one or more managed funds (including index funds), or

• derivatives that provide exposure to the relevant index.

Asset allocations

(Asset class: Long-term target / Range)

• Australian shares: 25% / 8-60%

• International shares: 25% / 8-60%

TOTAL GROWTH ASSETS: 50%

• Australian fixed income: 20% / 24-50%

• International fixed income: 8% / 24-50%

• Cash: 22% / 0-68%

TOTAL DEFENSIVE ASSETS: 50%