dmp australian small caps trust - dmp asset management caps pds... · dmp asset management ltd...

DMP Asset Management Ltd Level 30, 80 Collins Street Melbourne Vic 3000 T 03 9981 3300 F 03 9981 3399 W www.dmpam.com.au

my WORD is my BOND

DMP Australian Small Caps Trust ARSN 609 023 654 Product Disclosure Statement (PDS) dated 28 July 2017 Issued by DMP Asset Management Limited ACN 145 590 316 AFSL No. 383580

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DMP Australian Small Caps Trust ARSN 609 023 654

Product Disclosure Statement (PDS) dated 28 July 2017 Issued by DMP Asset Management Limited ACN 145 590 316 AFSL No. 383580 (DMPAM)

Contents 1. About DMP Asset Management ........................................................... 2 2. How the Trust works .................................................................................. 2 3. Benefits of investing in the Trust .......................................................... 3 4. Risks of investing ......................................................................................... 4 5. How we invest your money ..................................................................... 4 6. Fees and costs ............................................................................................. 6 7. How managed investment schemes are taxed .............................. 7 8. How to apply .................................................................................................. 7

Important information This Product Disclosure Statement (PDS) dated 28 July 2017 is issued by DMP Asset Management Ltd and is a summary of significant information about the DMP Australian Small Caps Trust ARSN 609 023 654 (Trust). This PDS is available from http://www.dmpam.com.au/publications or you can request a copy free of charge by contacting DMPAM. You should consider this information before making a decision about the Trust. The information provided in this PDS is general information only and does not take account of your personal financial situation or needs. You should obtain financial advice tailored to your personal circumstances. Information in this PDS is current at its issue date and may change from time to time. Information that is not materially adverse to investors may be updated by us by placing this information on our website at www.dmpam.com.au. Updated information can be obtained by going to our website or calling us on 03 9981 3300. You may request a paper copy of any updated information, free of charge. If there are any materially adverse developments, DMPAM will issue a new PDS as required by law. All dollar amounts are in Australian dollars unless otherwise indicated. The offer of units under this PDS is only available to persons receiving this PDS (electronically or otherwise) in Australia. The offer does not constitute an offer in any other country. Neither DMPAM, its directors, employees, consultants, advisors or agents, nor any other entity associated with DMPAM guarantees the repayment of capital from or the performance of the Trust or any specific rate of return from the Trust. As with any investment there are inherent risks in investing in the Trust, including the risk that the investment in the Trust is speculative, that the investment may result in a reduction in the capital value of the investment, loss of income and returns that are less than expected or delays in the repayment of capital.

DMP Asset Management Ltd Phone: 03 9981 3300 Write: Level 30, 80 Collins Street

Melbourne VIC 3000 Visit: www.dmpam.com.au

1. About DMP Asset Management DMP Asset Management Ltd (DMPAM) is the Responsible Entity of the Trust. The Trust is a registered managed investment scheme and DMPAM is authorised under its

Australian financial services licence to operate the Trust. As Responsible Entity, DMPAM is responsible for the administration and investment management of the Trust. DMPAM is an independently owned boutique Australian equities manager. DMPAM was founded in 1991 with a strong belief and philosophy that investing in superior companies, with growth attributes would result in strong risk adjusted returns for investors. DMPAM has been successfully managing money for clients with this approach for over 25 years covering multiple economic and market cycles. DMPAM combines detailed bottom up fundamental research, incorporating ESG factors, with considerations of the economic data, the business cycle and thematic factors to build diversified portfolios of listed Australian securities. DMPAM has four full time investment professionals, including two Senior Fund Managers with on average 19 years of experience. We also have a number of experienced client service staff to assist with client queries. DMPAM is wholly owned by staff and maintains a Board of non-executive directors.

2. How the Trust works The DMP Australian Small Caps Trust (Trust) is structured as a unit trust registered as a managed investment scheme. When you invest your money in the Trust you are issued units in the Trust and your money is pooled together with other people’s money. DMPAM uses this pool of money to buy investments and manage them on behalf of all investors. When you invest in the Trust you are issued a number of units in the Trust allotted at the unit price calculated as at the close of business the prior day, provided that DMPAM has received a completed application form and notification from the Custodian that the application monies have been received as cleared funds. The application price for units is the Net Asset Value + Transaction Costs divided by the number of units on issue. Your units represent your proportionate share of the Trust and reflect the value of your investment. As a result, each unit has a dollar value or ‘unit price’. The unit price will vary as the market value of assets in the Trust rises or falls. Subject to the minimum requirements in the following table, you can increase your investment at any time by applying for more units using the Additional Application Form available on DMPAM’s website and decrease your investment by transferring or withdrawing some of your units.

Minimum Requirements Initial investment $20,000 Additional investment $5,000 Withdrawal $5,000 Account balance $10,000

In each case, DMPAM may accept a lesser amount or waive any minimum at its discretion. Withdrawal requests meeting the minimum withdrawal and holding requirements can be made daily. The redemption price on withdrawal is the Net Asset Value – Transaction Costs

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divided by the number of units on issue. Generally, proceeds will be paid by cash, stock or a combination of both within 21 business days of the withdrawal notice. In some circumstances, such as if withdrawals were suspended, DMPAM may refuse your withdrawal request in whole or in part, in its absolute discretion. Information about Liquidity Risk is found in section 4 of this PDS. The circumstances in which DMPAM may not give effect to all or part of a withdrawal request includes the following: • it is desirable for the protection of the Trust; • any relevant financial stock, bond, note, derivative or

foreign exchange market is closed or trading on any such market is restricted;

• an emergency (including an emergency caused by a mechanical or electronic malfunction) or such other circumstances exist and as a result;

• it is not reasonably practicable for the Manager to acquire or dispose of Assets or determine the Withdrawal Price fairly; and/or

• the Manager's ability to acquire or dispose of Assets or determine the Withdrawal Price fairly is, or may be, significantly adversely affected; or sufficient Assets of the Trust cannot be realised at an appropriate price or on adequate terms or otherwise.

Frequency of distributions and how they are calculated The Trust will distribute income, if any, half-yearly as at the end of December and June, or more regularly at DMPAM’s discretion, in proportion to unit holdings. Distributions will be re-invested automatically as additional units in the Trust on the next business day after the half year, unless a unit holder elects to receive a cash distribution or the Trust is at capacity. The Constitution allows DMPAM to vary the distribution frequency without notice although distributions must be made at year end. Cash distributions will be paid in $A and will normally be paid within 30 business days from the end of the distribution period. You may elect to have your distributions paid to your nominated bank account by completing the relevant section of the application form. Your distributions are calculated on the basis of your per unit share of distributable income (including realised capital gains) of the Trust for the entire distribution period and not just for the period you hold your units. Unit prices fall after the end of the distribution period to reflect the distribution entitlements. If you invest just before the end of a distribution period, you may find that you get an immediate return of some of your investment capital as income and this may, depending on your circumstances, give rise to a tax liability. Therefore, you should carefully consider the timing of your investment in this product. Similarly, if you withdraw your investment before the last day of the distribution period, you will receive your share of any accrued income as capital. Further, the entitlement to realised capital gains during the financial year to June are distributed to unit holders in July. Investors in the Trust at year end will receive their share of realised capital gains irrespective of when they purchased the units in the Trust. This may give rise to a tax liability. We recommend you speak with a financial adviser or tax adviser to determine your own situation. A distribution statement will be dispatched to all unit holders estimating the taxable income and available credits as soon as possible after the year-end. It is anticipated that the statement will be available by 31 July of each year. A final tax statement will be issued by 30 September each year.

Valuation of Units Unit prices are calculated daily based on the Net Asset Value of the Trust divided by the number of Units on issue. The Constitution allows unit prices to be adjusted for Transaction Costs. In the case of the application price, the price will be increased by 0.3%, and in the case of the withdrawal price, the price will be reduced by 0.3%. There are no other entry or exit fees that will be charged, although the Constitution allows for this. The Constitution provides that DMPAM may determine valuation methods and policies from time to time. It is DMPAM’s policy that a different methodology will be applied to applications and withdrawals which are significant in size relative to the total Net Asset Value of the Trust. In these cases, when calculating the unit price, the assets acquired or disposed of with those application or withdrawal monies (and any associated brokerage, taxes and foreign exchange costs) will not be included in the definition of Net Asset Value on the unit pricing date related to that application or withdrawal, but will be included in the next unit pricing date. DMPAM has adopted this policy because it believes that it is the most equitable to all unit holders.

3. Benefits of investing in the Trust Significant features The objective of the Trust is to outperform the benchmark (S&P/ASX Small Ordinaries Accumulation Index) by 5% p.a. over rolling five year periods by investing in a superior group of growth oriented small Australian small cap stocks, listed on the Australian Securities Exchange.

Significant benefits An investment in the Trust offers investors a range of key benefits: • DMPAM seeks out quality companies which have a strategy

to enable them to grow in excess of the market after taking into considerations the risks of the strategy.

• DMPAM uses detailed fundamental analysis that is overlaid with considerations of global macro and thematic influences to build a complete picture of the operating environment of the company.

• The investment strategy will provide continuous exposure to a professionally managed portfolio of securities listed in Australia designed to produce superior long-term risk adjusted returns.

• You will receive half-yearly distributions of income, provided the Trust distributes income

• You will receive regular reports including: • A quarterly investment and performance report; • An income distribution statement after each distribution; • Annual taxation statement; • Annual audited financial statements of the Trust;

• A transaction statement each time you make an investment or withdrawal; and

• A monthly statement. You can elect your method of receiving reports in the Application Form. DMPAM also uses an external custodian, Citigroup Limited (Citi), to safeguard all assets on behalf of clients. Citi has consented and has not withdrawn its consent to being named in this PDS in the form and context in which its name appears above.

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4. Risks of investing All investments have some level of risk. Different investment strategies may carry different levels of risk, depending on the assets which make up the strategy – for example, cash, bonds, property and equities all have different levels of risk. It is important to understand that: • The value of investments will go up and down. • Investment returns (even over the long term) are not

guaranteed and you may lose money on any investment you make.

• The level of returns will vary and future returns may differ from past returns.

• Laws affecting registered managed investment schemes may change in the future.

• The level of risk for each person will vary depending on a range of factors including age, investment time frames, where other parts of the person’s wealth is invested and the person’s risk tolerance.

The significant risks of the Trust are summarised below, but these risks are not exhaustive and there could be other risks that may adversely affect the Trust.

Market risk Economic, political, and other factors may cause the overall investment market to fall in value. A fall in the market may lead to a decrease in the price of securities held by the Trust irrespective of the merits or otherwise of the individual securities held by the Trust.

Security risk This is the risk attributed to the circumstances of an individual security. It can relate to management, operational, product, industry and other factors. Even if the Trust is well diversified, falls in the price of an individual security may affect the value of your investment.

Liquidity risk Sometimes, when securities are not traded frequently or in large amounts or when market conditions are difficult, buying interest can dry up. This can make it hard for investors to sell securities at short notice and at a desired price. In periods of illiquidity, DMPAM may not be able to sell securities to pay withdrawal requests by you. If the Trust becomes illiquid within the meaning of the Corporations Act, DMPAM may suspend withdrawals.

Lack of diversification across asset classes While the Trust holds a diversified portfolio of securities in an asset class, an investment in only one asset class may involve greater risk than investing in several asset classes. Diversification may therefore be improved by investing across different asset classes.

Regulatory risk Regulatory risk arises from regulatory or taxation changes introduced by a government or a regulator, which may affect the value of securities in which the Trust invests. These regulatory or taxation changes may occur in Australia or other countries in which the Trust invests.

Counterparty risk The Trust’s trading counterparties may become insolvent or otherwise not meet their obligations to the Trust which may affect the value of your investment.

Strategy risk The Trust’s investment strategy, as described in section 5 of this PDS, may mean that the Trust performs differently from the market as a whole. The Trust may at times underperform equities funds that use other investment strategies.

Trust risk Results from investing in the Trust, including tax outcomes, may differ from investing directly in the underlying securities. The actions of other unit holders, such as applications or redemptions, may have an impact on your share of tax credits, income, and net capital gains distributed by the Trust. DMPAM could be replaced as the responsible entity or the manager, or the Trust could terminate.

Operational risk This refers to a range of risks associated with the operation of the Trust and includes human error, systems breakdown, external threats and other factors beyond DMPAM’s control.

Tax risk The Trust or an investment in the Trust can be subject to tax risk on the basis that tax laws and relevant administrative practices are subject to change, possible with retrospective effect.

5. How we invest your money Investment Objective The objective of the Trust is to outperform the benchmark (S&P/ASX Small Ordinaries Accumulation Index) by 5% p.a. over rolling five year periods. The Trust achieves this by investing in a superior group of growth oriented small Australian small cap stocks, listed on the Australian Securities Exchange.

Who is this investment option for?

Investors who seek high returns over the medium to long term, and who are comfortable accepting fluctuations in their account balance over the medium to long term.

Investment return objective Benchmark +5% per annum

Minimum suggested time frame 3-5 years

Standard risk measure High

Asset classes Asset allocation range Australian Equities 80 - 100% Cash 0 - 20%

Investment Style DMPAM’s portfolios will demonstrate growth characteristics. Attributes that we like in stocks include growth in excess of the market in: • Revenue; and/or • Earnings Per Share (EPS); and/or • Operating Margin; and/or • Return on Invested Capital (ROIC); and/or • Net Profits after Tax. Thematic influences help drive our investment research and are considered in stock selection and portfolio construction. When investing, DMPAM is benchmark unaware, preferring to focus on stocks likely to outperform for investors. While we are a

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growth investor, considerations of price are employed to ensure discipline in the process.

Investment Strategy DMPAM uses detailed fundamental analysis to research companies to develop views on the quality of a business. This includes an understanding of the nature of the business, the industry in which the business operates and the quality of the management. We also spend time considering the Environmental, Social and Governance (ESG) practices of a company to assess risks of its long-term sustainability. We meet with the company, its competitors, suppliers and customers to develop a well-rounded expectation of the future prospects of the company. We favour those companies which have growth prospects in excess of the market, on a risk-adjusted basis. We then take these stocks and build a diversified portfolio of securities which is expected to outperform the market over the medium to long term.

Authorised Investments The Trust can invest in:

• Australian listed securities; • Cash; and • Unlisted securities which are expected to be listed within a

six month period.

Over time, DMPAM expects that the portfolio will exhibit the following market capitalization bias: • Small cap (S&P/ASX 100-300) 60% to 90% • Microcap (ex- S&P/ASX 300) 10% to 30% • Mid cap (S&P/ASX 50 to 100) 0% to 10%

All stocks on initial purchase will be outside the S&P/ASX 100. Should a stock, via growth be included in the S&P/ASX 100 Index, DMPAM is able to hold this stock for a period of no greater than twelve months to enable DMPAM to maximise the exit value for investors. DMPAM will immediately develop an exit plan for any stock that reaches the top 50.

On occasion, a domestic listed security may de-list from Australia and then list on an international stock exchange. In this circumstance, DMPAM will seek to maximise value for investors in exiting the stock, within a reasonable time frame of it delisting from the Australian Securities Exchange.

Internal Risk Guidelines and Portfolio Construction DMPAM has set up the following internal risk guidelines: • The main portfolio construction technique that DMPAM

uses is based on expected risk adjusted return over a three year time horizon. As a consequence, stocks with a higher risk adjusted return will tend to have a higher portfolio weighting, and vice versa. • Weights are adjusted for various risk factors including

ESG. Should a company have a poor ESG evaluation this will result in a lower, or potentially zero weighting to the stock.

• If a stock exits the DMPAM Approved Stock List it must be sold. For a Sell recommendation, an action plan to sell the stock needs to be immediately devised. If it is removal from the list in preference of another stock, the Trust Manager has one month to implement this position.

• The small cap portfolio will comprise 30 to 60 stocks, with 35 – 55 stocks being held on average.

• A typical stock weighting is 2% of the portfolio on entry • A stock should have a weighting of 1% as a minimum (other

than allowing for transitioning into, or out of a position). • A typical high conviction holding will be 4%.

• When a holding reaches 6% it will be trimmed within a month of reaching this level.

• The absolute maximum weight is 10% at which time a stock will be automatically rebalanced.

• Cash, in normal circumstances will be managed at less than 10% of the portfolio.

• If, in the event there is considered a material downside risk, cash can increase to 20% - this is considered a rare circumstance and will be communicated to investors.

• DMPAM does not give specific consideration to sector diversification, however we ensure that the portfolio is appropriately diversified at all times.

• Tracking error is not targeted but is typically expected to be 5% to 12%.

Environmental, Social and Governance Considerations DMPAM has an ESG Policy which details the way in which we incorporate ESG issues into individual stock assessments, as well as internally our organisation. We define ESG issues as long term environment, social and governance issues that are material to the sustainability and hence the valuation of a company. We analyse the financial risks and opportunities that arise from ESG issues in order to maximize the investment returns. A copy of DMPAM’s ESG Policy is available to investors on request. DMPAM recognises its duty to behave responsibly in its business activities and towards those whom its actions affect. As an investment manager, we believe that a high standard of business conduct, as well as a responsible approach to social, environmental and ethical issues makes good business sense and enhances shareholder value. Conversely, poor management of these issues may pose a risk to the reputation and value of a business. As a result, we seek to imbed the high levels of ESG practices in our everyday business and culture.

ESG evaluation is one of the qualitative assessments that analysts use to arrive at the sustainable competitive advantage of companies. DMPAM’s fund managers: • visit the company; • assess the operating environment, competitors, customers,

suppliers; and • complete and review the investment research report for each

company that is to be included in the portfolio.

The foundation of our investment process is comprehensive research on a select group of stocks. We strive to build an extensive knowledge-base on this group of stocks and we continue to supplement this level of knowledge through time. The conclusions drawn by analysts from their qualitative assessment feeds into DMPAM’s expected valuation. Accordingly, conclusions drawn from the assessment of a company’s ESG activities will affect that company’s overall expected risk adjusted return and consequently its weighting in the portfolio. The main portfolio construction technique that DMPAM uses is based on expected risk adjusted return. Weights are adjusted for various risk factors including ESG. Should a company have a poor ESG evaluation this will result in a lower, or potentially zero weighting to the stock.

Participation in Class Actions DMPAM may or may not participate in Shareholder Class Actions as it deems appropriate and may make and act upon such a decision without consulting investors.

Participation in Buy-Backs DMPAM reserves the right to participate in share buy-backs that may be for less than the market price in order to gain access to

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franking credits and capital losses resulting from participation. Performance will be adjusted for any discount to market price.

6. Fees and costs CONSUMER ADVISORY WARNING 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. Your employer may be able to negotiate to pay lower management fees. Ask the Trust 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) website (www.moneysmart.gov.au) has a managed investment fee calculator to help you check out different fee options.

Fees and costs of the Trust This section provides summary information about the main fees and costs that you may be charged. These fees and costs may be deducted from your account, from the returns on your investment or from the Trust’s assets as a whole. You should read all the information about fees and costs because it is important to understand their impact on your investment. Similar information is included in other managed investment scheme Product Disclosure Statements so you can compare costs with those of other investment trusts.

Type of fee or cost Amount How and when paid

Fee when your money moves in and out of the Trust Establishment Nil N/A Contribution Nil N/A Withdrawal Nil N/A Exit Nil N/A Management Costs Management Fees 1.5% per annum

of Gross Asset Value (before fees and expenses) plus GST

Calculated on the average daily balance and deducted monthly or on exit

Performance Fees Nil Expenses Nil * When the Trust is

a sufficient size these will be payable from the Trust when they accrue

Indirect cost ratio 1.5% per annum N/A

* DMPAM has a right to be reimbursed out of the Trust for Expenses but currently does not seek reimbursement. However, when the Trust reaches sufficient size so that in DMPAM’s discretion it is reasonable for the Trust to bear these costs, the Expenses will be payable by the Trust when they accrue. DMPAM will provide 30 days notice to members before it seeks reimbursement for Expenses from the Trust.

Example of annual fees and costs This table gives an example of how the fees and costs in the Trust can affect your investment over a one year period. You should use this table to compare this product with other simple managed investment scheme products.

Example Annual Fees Balance of $50,000 with total contributions of $5,000 during year

Management Fees

1.5% (50,000+5,000) × 1.5% = $825

Plus Performance Fees

0.0% Nil

Equals Cost of product

1.5% $825 + $0 = $825

The above example assumes the additional contribution is made on the first day of the year.

Additional fees may be paid to a financial adviser if a financial adviser is consulted. Such fees are required to be set out in a Statement of Advice given to you by the financial adviser.

Fee calculator ASIC’s website www.moneysmart.gov.au has a managed investment calculator that can be used to calculate the effect of fees and costs on account balances.

Differential fees In accordance with the Corporations Act, we may individually negotiate fees with investors classed as Wholesale Clients or on the basis of the value of their investments. We may also offer reduced fees to our employees, and those of any related bodies corporate.

Changes to fees and costs The Trustee may introduce new fees or change existing fees at any time. We will notify you at least 30 days before introducing or increasing fees.

Management Fee DMPAM intends to charge a management fee of 1.50% p.a. of the Gross Asset Value (before fees and expenses) of the Trust plus GST. DMPAM may pay, from its fee, a rebate or a part of the fee or other payment to one or more unit holders. Under the constitution of the Trust (Constitution), Management Fees are accrued daily and the Manager is entitled to receive the Management Fee on the last Business Day of the month.

Expenses DMPAM is entitled to be reimbursed from the Trust in respect of a range of costs and expenses in relation to the proper performance and duties which include, but are not limited to, costs associated with the Constitution (including amendments) custodial and administration fees, unit holder meetings, audit fees, government duties and taxes, brokerage, paid independent research performance attribution and consultants’ relating to the Trust. DMPAM currently does not seek reimbursement from the Trust for Expenses. However, when the Trust reaches sufficient size so that in DMPAM’s discretion it is reasonable for the Trust to bear these costs, the Expenses will be payable from the Trust when they accrue. DMPAM will provide 30 days notice to members before it seeks reimbursement for Expenses from the Trust.

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Consultancy and Research Fees DMPAM is entitled to pay out of the assets of the Trust various research and consultancy fees or industry consultants’ expenses, including legal, accounting, or investment banking, relating to advice in connection with securities, industries or asset classes in which the Trust invests.

Ability to Charge an Application Fee and/or a Redemption Fee DMPAM has the right, under the terms of the Constitution to charge an Application Fee or a Redemption Fee. DMPAM will not do so however unless specifically advised prior to the charge being incurred.

Adjustment After Participation in Buy Backs Participation in buy-backs that are at a discount price will result in an adjustment to the performance calculation. The adjustment mechanism will reflect the difference between Volume Weighted Average Price (VWAP) for the relevant shares traded on the ASX on the buyback price announcement date and the buy-back price received for those shares successfully tendered. The difference will be treated as a cash outflow when calculating the performance return for the month and the performance fee will be adjusted accordingly.

7. How managed investment schemes are taxed Investing in a registered managed investment scheme is likely to have tax consequences. The following is a summary of the Australian income tax consequences associated with investing in managed investment schemes. As taxation is complex and different investors have different circumstances you are strongly advised to seek professional taxation advice prior to making an investment decision. The Manager does not know the individual taxation position of unit holders and therefore will not take it into account in making investment decisions. Generally, registered managed investment schemes do not pay tax on behalf of investors and it is not expected that the Trust will pay income tax because the net income of the Trust will be distributed to investors. Investors are assessed for tax on any income and capital gains generated by the registered managed investment scheme. Depending on your taxation position you may be liable to tax on your share of the net income of the Trust and may become entitled to certain tax offsets. The Australian Government has enacted legislation so that a trust which qualifies as an eligible managed investment trust (MIT) can elect to treat the trust’s “covered assets” (primarily, shares, units and real property) on capital account. In this case you may obtain the benefit of the CGT discount and other tax concessions (where applicable) on distributions of capital gains you receive from the Trust. The Trust currently qualifies as an eligible MIT and has made the capital account election. However you should be aware that eligibility as an MIT rests on the Trust meeting a ‘widely held’ test and a ‘closely held’ test and this could be subject to change should the make-up of the Trust’s investors change, and could result in the Trust’s investments being treated as held on revenue account rather than on capital account. If you redeem units you may be liable to pay CGT. In certain circumstances you may qualify for a CGT discount on taxable capital gains arising on the withdrawal of your units or in respect of capital gains distributed by the Trust. This summary is based on the income tax law and ATO administrative practice applicable as at the date of this PDS. Changes to tax law or the interpretation of tax law could affect the tax consequences associated with investing in the Trust.

The tax consequences for a particular investor may vary depending on their particular circumstances. It is recommended that investors seek professional tax advice which takes into account their individual circumstances.

8. How to apply To invest in the Trust:

1. Read this PDS and other important information referred to in the PDS

2. Complete the Application Form available from www.dmpam.com.au

3. Return it to DMPAM at the address shown together with all of the information referred to on the Application Form.

Subsequent investments need not be made on the Application Form, however notification must be given to DMPAM in writing. DMPAM may reject an application for units in the Trust in whole or part without giving a reason for the rejection.

Units will be allotted at the unit price calculated as at the close of business. If, by 1.00pm each day, the Manager has received notification from the Custodian that the application monies have been received as cleared funds and the Manager has received a completed application form (in the case of initial investments) or other written notification (in the case of subsequent investments), units will be allotted at the unit price calculated as at the close of business. .

A unit is taken to be issued to a unit holder on the earlier of: • the time the unit price variables are determined in

accordance with the Constitution, or • the unit pricing date which the Manager has determined to

apply to that application for units.

DMPAM will send unit holders a confirmation of allotment.

Appointment of Authorised Nominee A person, partnership or company may be appointed as an investor’s authorised nominee by having the relevant section of the application form executed. The authorised nominee (if it is a company or partnership, including any person we reasonably believe is an authorised officer of the company or a partner in the partnership) may provide investment instructions in respect of the Trust, prepare, sign and provide requests to redeem units in the Trust, advise of changes to your details in respect of your investment in the Trust, and obtain information about your investments in the Trust. This appointment can be cancelled at any time by notice in writing to DMPAM. All joint unit holders must sign the appointment or cancellation. By appointing an authorised nominee the investor: • releases, discharges and agrees to indemnify DMPAM and

the Trust from and against any and all losses, liabilities, actions, proceedings, accounts, claims and demands arising from the fraud, negligence or appointment of or purported exercise of powers by the authorised nominee or in connection with the use of the facility;

• agrees that a payment or purported payment (the payment) made in accordance with the requests or instructions of the authorised nominee shall be in complete satisfaction of our obligations to the extent of the payment, notwithstanding any fact or circumstance including that the payment was requested, made or received without the investor’s knowledge or authority; and

• agrees that if payment is made in accordance with the request or instructions of the authorised nominee, the investor shall have no claim against us in relation to the payment.

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Cooling off Rights If you are a Retail Client as defined in the Corporations Act, you have a 14 day cooling off period in relation to initial and additional investments, in which to decide whether to proceed with the investment.

The 14 day period commences on the earlier of the date you receive the transaction confirmation (if applicable) or five business days after the units are issued. Within this period, you may withdraw your investment by writing to DMPAM at the contact details set out in this PDS or in any other way specified in the Corporations Regulations. The letter must include the following details: full name, address, Trust, amount invested and date of contribution.

The amount returned may be less than the amount invested. The amount you receive will be based on the withdrawal price calculated with reference to the time DMPAM receives your written request to withdraw your investment, subject to adjustments permitted under the Corporations Act, including deductions for any non-refundable tax or duty paid or payable relating to the investment and its withdrawal.

As the amount refunded may be greater or less than the amount initially invested, there may be tax implications. Cooling off rights do not apply to distribution reinvestments, to switching between Trusts or classes of units in the same Trust, where you have exercised any of your rights under the terms applicable to the units or where the Trust is illiquid.

Complaints If you have any queries or complaints please contact us in writing. We will acknowledge your query or complaint in writing within 14 days after receipt of the complaint. We will then give proper consideration to the complaint and advise you of the outcome within 45 days after receipt of the complaint.

DMPAM is a member of the Financial Ombudsman Service (FOS), an external industry dispute resolution scheme. If you are not satisfied with DMPAM’s response to your complaint, you can contact FOS:

Financial Ombudsman Service 1300 78 08 08 GPO Box 3 Melbourne VIC 3001

FOS has the discretion to exclude a complaint by a person who is not a retail client.

Privacy DMPAM respects your privacy and is committed to protecting your personal information. DMPAM only collects personal information about you if it is necessary for one or more of our functions. We collect and use your personal information to provide services to you and to keep you updated in relation to the Trust's development and activities. The specific types of information we collect and reasons for collection may vary depending on particular circumstances. The types of organisations we might disclose your personal information to include the Australian Taxation Office, our custodian, financiers, accountants and auditors, legal advisers and other professionals.

You may gain access to the personal information DMPAM holds about you, subject to certain exemptions under the Privacy Act 1988 (Cth). If you would like to make a request for access, please contact DMPAM. Please note that we reserve the right to charge reasonable fees for any costs incurred by us when complying with such a request.

AML/CTF The Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Law) regulates financial services and transactions in a way that is designed to detect and prevent money laundering and terrorism financing. DMPAM is bound by the AML/CTF Law. By making an application to invest in the Trust, an investor agrees that:

• it does not subscribe to the Trust under an assumed name;

• any money used by the investor to invest in the Trust is not derived from or related to any criminal activities;

• any proceeds from the investor's investment will not be used in relation to any criminal activities;

• if we ask, the investor will provide us with additional information we reasonably require for the purposes of AML/CTF Law, including information about a holder of a security, any beneficial interest in the securities, or the source of funds used to invest;

• DMPAM may obtain information about an investor or any beneficial owner of a security from third parties if we believe this is necessary to comply with AML/CTF Law; and

• in order to comply with AML/CTF Law we may be required to take action, including delaying or refusing the processing of any application or withdrawal or disclosing information that we hold about an investor to our related bodies corporate or service providers, or relevant regulators of AML/CTF Law (whether in or outside of Australia).

Foreign Account Tax Compliance Act There are certain consequences that may occur if you apply to invest and you are, or become, resident in the United States (US) a US entity, a US citizen, or have some connection with the US. These consequences may potentially be adverse to you. If this applies to you, we encourage you to seek professional taxation advice. Based on current guidance, DMPAM believes that it must comply with certain requirements under FATCA. Accordingly, we may request that you provide certain information about yourself in order for DMPAM to comply with its FATCA obligations.

US Person, as defined in Regulation S of the U.S. Securities Act 1933 (Act), includes: • any natural person resident in the US; • any partnership or corporation organized or incorporated

under the laws of the US; • any estate of which any executor or administrator is a US

Person; • any trust of which any trustee is a US Person; • any agency or branch of a foreign entity located in the

United States; • any non-discretionary account or similar account (other

than an estate or trust) held by a dealer or other fiduciary for the benefit or account of a US Person;

• any discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary organised, incorporated, or (if an individual) resident in the US; or

• any partnership or corporation if organized or incorporated under the laws of any foreign jurisdiction and formed by a US person principally for the purpose of investing in securities not registered under the Act, unless it is organised or incorporated, and owned, by accredited investors (as defined in Rule 501(a) of Regulation D under the Act) who are not natural persons, estates or trusts.

DMP Asset Management Ltd, its directors and employees and associates may have a relevant interest in the securities of any company or companies referred to in this communication.

9

DMP Australian Small Caps Trust Application Form Applicant Details

Section 1: Individual or Joint Applicant

Individual

Title (Mr, Mrs, etc) Given Name in Full Surname

Joint Applicant (if applicable)


Contact Details

Street/PO Box

Suburb State Postcode Country

Telephone (BH) Telephone (AH) Mobile

Facsimile Email

Tax File Number

Identification Documents for Individual Investor(s)

For all Individual investors please provide the following information in addition to completing this section: • Original certified copy of a Primary Photographic Identification Document (see below for definition); or • Original certified copy of a Primary Non-Photographic Identification Document AND a Secondary Identification Document (see below

for definitions). What are the Identification Documents? Primary Photographic Identification Documents 1 Licence or permit issued by State or Territory of Australia or equivalent authority of a foreign country for the purpose of driving a vehicle

that contains a photograph of the person in whose name the document is issued. 2 Passport issued by Commonwealth of Australia. 3 Passport issued for purpose of international travel that is issued by a foreign government and contains a photograph and the signature

of a person in whose name the document is issued (accompanied by a written translation prepared by accredited translator where required).

4 Card issued by a State or Territory of Australia for the purpose of proving a person’s age that contains a photograph of the person in whose name the document is issued.

5 National Identity Card issued by a foreign government, for the purpose of identification that contains a photograph of the person in whose name the document is issued (accompanied by a written translation prepared by accredited translator where required).

Primary Non-Photographic Identification Documents 1 Birth Certificate or Birth Extract issued by a State or Territory of Australia. 2 Citizenship Certificate issued by Commonwealth of Australia. 3 Citizenship Certificate issued by a foreign Government (accompanied by a written translation prepared by accredited translator where

required). 4 Birth certificate issued by a foreign government (accompanied by a written translation prepared by accredited translator where

required). 5 Pension card issued by Centre Link that entitles financial benefits to the person in whose name the card is issued.

Secondary Identification Documents 1 A notice that was issued to an individual by the Commonwealth, a State or Territory of Australia within the preceding 12 months that

contains the name of the individual and his or her residential address and records the provision of financial benefits to the individual under a law of the Commonwealth, State or Territory.

2 A notice that was issued to an individual by a local government or utilities provider in Australia within the preceding 3 months that contains the name of the individual and his or her residential address and records the provision of services by that local government body or utilities provider to that address or to that person.

10

Section 2: Company or Trustee Applicant (including Superannuation Funds/Trusts)

Company or Trustee Details

Company or Trustee Name ABN / ACN

If Trustee, name the relevant fund/trust

Contact Person


Position / Title

Contact Details

Street/PO Box


Telephone (BH) Telephone (AH) Mobile

Facsimile Email

Tax File Number

Tax File Number

Section 2.1: Type of Australian Regulated Trust/Fund (this section only applies to Australian regulated trusts that are subject to the regulatory oversight of an Australian regulator)

□ Self-Managed Super Fund

Provide SMSF ABN

□ Registered managed investment scheme

Provide Australian Registered Scheme Number (ARSN)

□ Government superannuation fund

Provide name of legislation establishing the trust/fund

□ Other regulated trust (a trust that is subject to the regulatory oversight of a Commonwealth, State or Territory statutory regulator such as an approved deposit fund, a pooled super fund or an APRA regulated superannuation fund

Provide name of regulator (eg ASIC, APRA, ATO)

Provide the Trust’s ABN/Registration/Licencing details

Section 2.2 Trustee Details

How many trustees are there? Provide the full name of each person or company below

1. Title (Mr, Mrs, etc) Given Name in Full Surname

OR

Company Name


OR

Company Name

11

If there are more trustees, provide details on a separate sheet of paper and attached it to your application form.

For all trust types please complete the following additional sections: If you are completing this form as an Individual Trustee please complete ‘Section 1: Individual’ on page 19 for at least ONE of the trustees in addition to completing applicable sections 2.2 and 2.3. If you are completing this form as a Corporate Trustee please complete ‘Section 2: Company or Trustee on page 20 in addition to applicable sections 2.2 and 2.3. If you are completing this form both as Individual and Corporate Trustee please complete ‘Sections 1: Individual and 2: Company in addition to completing applicable sections 2.2 and 2.3. Section 2.3: Beneficiary Details (only complete if “Other Regulated Trust” is selected in section 2.1)

Do NOT complete if the trust is a registered managed investment scheme, regulated trust (e.g. SMSF) or government superannuation fund.

Do the terms of the trust identify the beneficiaries by reference to membership of a class?

Yes Provide details of the membership class(es) eg unitholders, family members of named person, charitable purpose

No How many beneficiaries are there? Provide the full name of each beneficiary below




If there are more beneficiaries, provide details on a separate sheet of paper and attached it to your application form. Section 2.4: Company Type (select only ONE of the following categories)

Public Section 2 now completed, continue to Item 5 Proprietary/Private Go to Section 2.5 and 2.6 below Other Go to Section 2.5 and 2.6 below

Section 2.5: Directors (only needs to be completed for proprietary, private and other companies)

This section does NOT need to be completed for public and listed companies.

How many directors are there? Provide the full name of each director below





If there are more directors, provide details on a separate sheet of paper and attached it to your application form. If the company is a regulated company, section 2 is now complete. Continue to Item 5.

12

2.6 Shareholders (only needs to be completed for proprietary, private or other companies that are not regulated companies)

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

Shareholder 1


Street/PO Box


Shareholder 2


Street/PO Box


Shareholder 3


Street/PO Box


• If there are more shareholders, provide details on a separate sheet of paper and attach it to your application form • If the company is an Australian company or Foreign company registered with ASIC the form is now COMPLETE. • If the company is a Foreign company not registered with ASIC please also attach certified copy of the

Item 2: Application Amount

I/We lodge with this application $

Item 3 – You can authorise any person to give instructions to us on your behalf

Please provide details of all persons who you authorise to give us instructions on your behalf. Unless you direct us otherwise in writing, we may act on the instructions of any person whom you specify here.

Person 1 Person 2 Name Name

Relationship to Client Relationship to Client

Telephone (BH) Telephone (BH)

Telephone (AH) Telephone (AH)

Specimen Signature Specimen Signature

13

Item 4 – You can authorise any persons to receive information about your account

Your accountant, superannuation administrator, partner, etc should be nominated if they need information about your account.

Authorised Recipient 1 Authorised Recipient 2

Name Name

Company Company

Position / Title Position / Title

Street / PO Box Street / PO Box

Suburb State Postcode Suburb State Postcode

Telephone (BH) Telephone (BH)

Mobile Mobile

Email Email

Item 5 – Foreign Account Tax Compliance Act (FATCA) – Self-certification Declaration

This certification must be completed by all investors to declare their FATCA status or U.S. tax status. U.S. IRS Form W-8 or W-9 is accepted in place of this declaration. Please refer to section 5.6 for explanations of FATCA terms before completing this form. Neither the Responsible Entity of the Trust nor DMP Asset Management Ltd is able to provide you with tax or professional advice in respect of FATCA or the IGA and we strongly encourage you to seek the advice of experienced tax or professional adviser in relation to completing this form. Purpose of this form The Foreign Account Tax Compliance Act (FATCA), a United States regulatory requirement that aims to deter tax evasion by U.S. taxpayers was introduced in 2010. From 1 July 2014 financial institutions (being managed investment funds) are required to identify investors that hold certain “financial accounts” and are U.S. persons or that are entities with substantial U.S. owners. Information on accounts and investments held by these investors must then be reported to the U.S. Internal Revenue Service (IRS) via the Australian Taxation Office (ATO). In certain instances, FATCA also imposes withholding tax on certain U.S. sourced income and the proceeds of sale on U.S. assets.

Section 5.1: Type of Investor

Individual or joint investor Complete Section 5.2 and Item 11 Superannuation Fund Complete Section 5.3 and Item 11 Company, Trust, Partnership or Other Complete Section 5.4, 5.5 and Item 11

Section 5.2: Individual or Joint Investors

Individual 1 Individual 2

For joint investors please provide details for each individual (including minors). If there are more than 2 individuals please provide their details on separate page and attach it to this form.

Full Name Full Name

Are you a US citizen or US resident for tax purposes? Are you a US citizen or US resident for tax purposes?

No Continue to Item 11 No Continue to Item 11 Yes Provide your US Taxpayer Identification Number (TIN) Yes Provide your US Taxpayer Identification Number

(TIN)

US Taxpayer Identification Number (TIN) US Taxpayer Identification Number (TIN)

14

Section 5.3: Superannuation Funds

Full legal name of the Superannuation Fund

Select only ONE of the following options that best describes the Superannuation Fund and provide the information requested.

□ I am an Australian Retirement Fund (refer to FATCA definitions in section 5.6). We will record your FATCA status as an Exempt Beneficial Owner

□ I am not an Australian Retirement Fund (refer to FATCA definitions in section 5.6). Please complete details below

FATCA status GIIN (if applicable)

Section 5.4: Entity Investors

Full legal name of the Entity

Select only ONE of the following five FATCA categories that best describes the entity and provide the information requested.

□ 1. U.S. person as defined under FATCA and U.S. Internal Revenue Code. This includes but is not limited to company, trust or partnership that is established under the laws of a U.S. and is considered a U.S. resident for tax purposes. Please also answer questions (a) and (b) on the next page

(a) U.S. federal tax classification. Please confirm entity’s U.S. federal tax classification below

□ Single member LLC □ C Corporation □ S Corporation

□ Partnership □ Trust/Estate □ Limited liability corporation – C corporation

□ Limited liability company – S corporation

□ Limited liability company – Partnership

□ Other (provide detail) ________________________________

(b) Are you exempt from FATCA reporting?

□ Yes Please provide your FATCA exemption code FATCA Exemption Code

□ No Please provide your US Taxpayer Identification Number (TIN)

US Taxpayer Identification Number (TIN)

□ 2. Non-Financial Foreign Entity (NFFE) Select one of the options from (a) to (c) to confirm which type of NFFE are you

(a) □ Active NFFE Continue to Item 11 (b) □ Passive NFFE with no controlling US persons Continue to Item 11 (c) □ Passive NFFE with controlling persons (refer to FATCA definitions in section 5.6 who are U.S. citizens or U.S. residents for tax

purposes) Provide details of each of the controlling U.S. person in section 5.5

□ 3. Entity that is an Exempt Beneficial Owner Continue to Item 11

□ 4. Financial institution (FFI) Select one of the options from (a) to (d) to confirm which type of FFI are you

(a) □ Reporting IGA FFI or Participating FFI Provide entity’s GIIN and continue to Item 11 GIIN

(b) □ Sponsored FFI or Trustee Documented Trust Please complete details of the Sponsoring entity or Trustee below and continue to Item 11

Name of Sponsoring entity or Trustee GIIN of Sponsoring entity or Trustee

(c) □ FFI that does not need to register (e.g. Non-Reporting IGA FFI) Please complete details below and continue to Item 11

FATCA Status GIIN (if applicable)

(d) □ Non-participating FFI Note that information about you will be reported to ATO and IRS. Continue to Item 11

□ 5. Other entity type (not listed above) Please complete details below and continue to Item 11

FATCA Status GIIN (if applicable)

15

Section 5.5: Controlling US Persons of Passive NFFE

Only complete this section if you have selected item 2(c) in the previous section. If there are more than 2 controlling U.S. persons please provide their details on separate page and attach it to this form. US Person 1 US Person 2

☐Controlling Person ☐Beneficiary ☐Trustee ☐Owner ☐Director ☐Other – please specify ___________________

☐ Controlling Person ☐Beneficiary ☐Trustee ☐Owner ☐Director ☐Other – please specify ___________________

Full Name Full Name

Residential Address (PO Box is not acceptable) Residential Address (PO Box is not acceptable)

US Taxpayer Identification Number (TIN) U.S. Taxpayer Identification Number (TIN)

Section 5.6: Explanation of FATCA Terms Common FATCA terms

Financial institution (also referred to as Foreign financial institution or “FFI” under FATCA) - an entity created or organised outside of the U.S. and includes:

a) Depository institution – entity that accepts deposits in the ordinary course of banking or similar business (banks, credit unions), or b) Custodial institution – entity that holds financial assets for the account of others as a substantial portion of its business (brokers,

custodians), or c) Investments entity –means any entity that conducts as a business (or is managed by an entity that conducts as a business) one or

more of the following activities or operations for or on behalf of a customer: trading in money market instruments (cheques, bills, certificates of deposit, derivatives, etc.); foreign exchange; exchange;

interest rate and index instruments; transferable securities; or commodity futures trading; individual and collective portfolio management; or otherwise investing, administering, or managing funds or money on behalf of other persons.

Non-Financial Foreign Entity (“NFFE”) - any non-U.S. entity that is not a financial institution. NFFE can be either Active NFFE or Passive NFFE (refer below for more details). U.S. citizen or U.S. resident for tax purposes – includes:

− anyone born in the U.S. (who hasn’t renounced their citizenship) − anyone living in the U.S. − a green card holder − U.S. passport holder − U.S. companies, trusts or partnerships

Controlling Persons - means the natural persons who exercise control over an Entity. In the case of a trust, such term means the settlor, the trustees, the protector (if any), the beneficiaries or class of beneficiaries, and any other natural person exercising ultimate effective control over the trust, and in the case of a legal arrangement other than a trust, such term means persons in equivalent or similar positions. The term “Controlling Persons” shall be interpreted in a manner consistent with the Financial Action Task Force Recommendations. GIIN - Global Intermediary Identification Number is an IRS registration number for financial institutions. TIN – is U.S. Taxpayer Identification Number and may include Social Security Number (SSN) or Employer Identification Number (EIN). IGA - Agreement between the Government of Australia and the Government of the United States of America to Improve International Tax Compliance and to Implement FATCA. Australian Retirement Fund

1. Any plan, scheme, fund, trust, or other arrangement operated principally to administer or provide pension, retirement, superannuation, or death benefits that is a superannuation entity or public sector superannuation scheme (including an exempt public sector superannuation scheme) as defined in the Superannuation Industry (Supervision) Act 1993, or a constitutionally protected fund as defined in the Income Tax Assessment Act 1997.

2. A pooled superannuation trust as defined in the Income Tax Assessment Act 1997. 3. Any Entity that is wholly owned by, and conducts investment activities, accepts deposits from, or holds financial assets exclusively for

or on behalf of, one or more plans, schemes, funds, trusts, or other arrangements referred to in subparagraphs (1) or (2) of this paragraph.

Further information about FATCA can be also found at: http://www.irs.gov/fatca http://treasury.gov.au/Policy-Topics/Taxation/Tax-Treaties/HTML/Intergovernmental-Agreement

http://www.irs.gov/fatca

http://treasury.gov.au/Policy-Topics/Taxation/Tax-Treaties/HTML/Intergovernmental-Agreement

16

http://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/pubs/rp/rp1314/QG/FATCA FATCA status

FATCA status refers to entity classification under FATCA and may include: 1. Active NFFE - any NFFE that meets following criteria:

− NFFE where less than 50% of income is passive income (i.e. dividends, interest, annuities etc.) and less than 50% of its assets produce passive income; or

− Entity’s stock is regularly traded on established securities market (e.g. entity listed on ASX) or affiliated group of such entity; or − Entity organised in U.S. Territory and owned by its residents; or − Foreign government; or − International organisation; or − Foreign Central Bank of Issue; or − Any other specifically identified class of entities, including those posing a low risk of tax evasion, as determined by the IRS (e.g. start-

up entities, entities in liquidation, not-for profit entities etc.) 2. Passive NFFE with controlling U.S. persons - any NFFE that is not an Active NFFE or is not a withholding foreign partnership or trust

and has controlling U.S. persons. 3. Passive NFFE with no controlling U.S. persons - any NFFE that is not an Active NFFE or is not a withholding foreign partnership or

trust and where none of the entity’s controlling persons are U.S. persons. 4. Participating FFI – an FFI that enters into an agreement with the IRS to undertake certain due diligence, withholding and reporting

requirements for U.S. account holders in accordance with FATCA and is generally able to provide GIIN. 5. Exempt Beneficial Owner - this is non-reporting entity under FATCA and may include:

− the Australian Government, State and local governments and local authorities and their wholly owned agencies or instrumentalities, including certain named entities;

− International, intergovernmental and supranational organisations; − Reserve Bank of Australia and its subsidiaries; − Complying Australian superannuation funds (including self-managed super funds); − Investment entity wholly owned by exempt beneficial owners;

6. Non-Reporting IGA FFI – this is non-reporting entity (certified or registered deemed-compliant FFI) under FATCA and may include: − Financial institution with Australian client base (must satisfy all condition listed in paragraph III. A of Annex II of the IGA, including at

least 98% of the U.S. dollar value of all account balances must be held by Australian residents); − Small local banks that meet criteria listed in the IGA; − Financial Institution that is not an Investment Entity with only Low-Value Accounts (i.e. with value of U.S.$ 50,000 or less) and with

total assets of no more than U.S.$50 million; − Qualified credit card issuer (with customer deposits of U.S.$50,000 or less); − Trustee-Documented Trust – A trust established under the laws of Australia to the extent that the trustee of the trust is a Reporting

U.S. Financial Institution, Reporting Model 1 FFI, or Participating FFI and reports all information required to be reported pursuant to the Agreement with respect to all U.S. Reportable Accounts of the trust;

− Sponsored investment entity - an investment entity established in Australia that has a Sponsoring entity; − Certain Investment Manager and Investment Advisors; − Certain Collective Investment Vehicles that meet criteria listed in the IGA.

7. Non-Participating FFI - an entity that does not comply with FATCA and generally will not fall into any of the below categories: − Participating FFI; or − Reporting FFI; or − Exempt Beneficial Owner

Item 6 – Details for making a contribution

By Cheque By Telegraphic Transfer

Please make cheques payable to: OneVue RE - DMP Asset Management

Bank: Westpac Banking Corporation BSB: 032-000 Account Number: 000015 Account Name: OneVue RE - DMP Asset Management SWIFT Code: CITIAU3X

Item 7 – Income distribution

Income earned will be distributed in accordance with the Constitution (at least half yearly). Please confirm how you would like to receive any distributions – either paid into an Australian bank account or automatically reinvested as additional units in the Trust. Reinvestment Payment into bank account (the distributions will be paid to bank account provided in Item 8 below) If no election is made, any distributions will be reinvested.

http://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/pubs/rp/rp1314/QG/FATCA

17

Item 8 – Bank Account

IMPORTANT INFORMATION: Please provide us your bank account details for the purpose of payment of future withdrawal proceeds. If this section is not completed it may cause a delay in processing of your redemption proceeds. Additional security checks to verify bank account changes will be performed at the time of payment of your redemption proceeds. If you reside in Australia distributions and withdrawal proceeds can only be paid to an Australian bank account in the name of the unitholder and cannot be paid by cheque or to third party accounts. By completing this section you confirm that any distributions and withdrawal proceeds sent by EFT to a designated bank account are sent at your risk insofar as the onus to provide bank account details rests solely on you. Please pay distributions and withdrawal proceeds to the following bank account: Beneficiary Bank Branch Address

BSB Account Number

Account Name

If you reside outside Australia and would like distributions and redemption proceeds to be paid into a bank account outside Australia please provide the following additional details:

Beneficiary Bank Address Intermediary Bank Details (if applicable)

National Beneficiary Bank Clearing Code (if applicable) Beneficiary Bank SWIFT Code

Item 9 – Address for Applications Please send your completed application form to: DMP Asset Management Ltd Level 30 80 Collins Street Melbourne Vic 3000 Item 10 – Reporting Requirements

All reports to be sent to (please tick)

Individual/Company/Trustee And / Authorised Nominee

Electronically Via Australia Post Or Electronically Via Australia Post

Reports will only be sent to the addresses noted in Items 1, and 4 of the Application Form.

18

Notes Insert the sum you wish to invest in Item 2. Your Application must be made in the name of a natural person or a company or other legal entity acceptable to the Responsible Entity. If the company is a regulated company licensed by the Australian Commonwealth, State or Territory regulator, please provide regulator’s name and Licence number. If the company is an Australian or Foreign listed company as defined in the IFSA/FPA Guidelines, please provide name of the market or exchange. If the company is a majority-owned subsidiary of an Australian listed company, please provide name of the Australian listed company and the name of the exchange. If the company is a foreign company, please provide country of registration and incorporation. Applications in the name of a trust or estate, business, firm or partnership, club, association or an incorporated body cannot be accepted. However, applications made solely in the name of a person who is the trustee, proprietor, partner or office bearer (as applicable) of those entities will be accepted. The words ‘as trustee for’ can be recorded in the ‘account name’ section but are accepted on the understanding that this is for your information only. Please enter the relevant details in Item 1. Please enter your postal and e-mail address for correspondence in Item 1. All communications to you from DMPAM will be e-mailed to the person and address as shown unless no email address is entered, in which case all communications will be posted to the postal address stated in Item 1 above. You should notify DMPAM of any change of address. Please provide in Item 1 telephone contact numbers (including the name of the person responsible in the case of an application by a corporation) so that we can contact you quickly if there is an irregularity on the Application Form. Payment by cheque must be drawn on an Australian bank in favour of ‘Citicorp Nominees Pty Ltd ACF DMP Australian Equities Income Trust’ and delivered to the Responsible Entity, DMP Asset Management, Level 30, 80 Collins Street, Melbourne VIC 3000. Payment shall be deemed to be effected when the cheque is honoured upon presentation. Collection of Tax File Numbers (TFN) is authorised by tax law and the Privacy Act. The failure to quote a TFN will not invalidate your application for Units. However, if you are a resident of Australia for income tax purposes and decline to quote your TFN, tax must be taken out of the dividends payable by DMPAM in its capacity as Responsible Entity of the Trust unless an Applicant quotes an exemption. An ABN may be provided instead of a TFN when the investment is made in furtherance of an enterprise. For more information about the use of TFN’s or ABN’s or available exemptions, please contact the Australian Tax Office.

Contact Details for Responsible Entity All correspondence should be directed to

DMP Asset Management Ltd Level 30 80 Collins Street Melbourne Vic 3000 Telephone: (03) 9981 3300 Facsimile: (03) 9981 3399 Email: [email protected]

DMP Australian Small Caps Trust C/- DMP Asset Management Ltd Level 30 80 Collins Street Melbourne Vic 3000

19

DMP Australian Small Caps Trust – Execution Clause

Item 11: Declaration and Signature Please tick whichever is applicable □ I declare that I am a retail investor; or □ I declare that I am a wholesale investor as defined in section 761G of the Corporations Act I further acknowledge, declare and agree that by signing this application form: • I have received and read the Information Memorandum to which this Application Form applies and have received and accepted the offer

to invest in Australia. • If I have received the Information Memorandum from the internet or other electronic means, it means that I have received it personally or

a print out of it, accompanied by this Application Form. • All details provided by me in this Application Form are true and correct. • I agree to be bound by the terms and conditions of the current IM and of the Constitution of the Trust, as amended. • That the Responsible Entity is authorised to apply the TFN or ABN provided above to all future applications for units, including

reinvestments, unless I notify the Responsible Entity otherwise. • None of the Investment Manager, Responsible Entity or any other person, guarantees the repayment of capital invested in the Trust, the

performance of nor any particular return from the Trust and I understand the risks involved in investing in the Trust. • I acknowledge that the Responsible Entity may be required to pass on information about me or my investment to the relevant regulatory

authority in compliance with the AML/CTF Laws. I will provide such information and assistance that may be requested by the Responsible Entity to comply with its obligations under the AML/CTF Laws and I indemnify it against any loss caused by my failure to provide such information or assistance.

• I acknowledge that the Responsible Entity may be required to pass on information about me or my investment to the relevant regulatory authority in compliance with the US Foreign Account Tax Compliance Act (“FATCA”). I will provide such information and assistance that may be requested by the Responsible Entity to comply with its obligations under the FATCA Act and I indemnify it against any loss caused by my failure to provide such information or assistance.

• The monies used to fund my investment in the Trust are not derived from or related to any money laundering, terrorism financing or other illegal activities, whether prohibited under Australian law, international law or convention ('illegal activity') and the proceeds of my investment in the Trust will not be used to finance any illegal activities.

• I am not a 'politically exposed' person or organisation for the purpose of the AML/CTF Laws. • I acknowledge that any personal information I provide to DMP Asset Management Ltd will be collected and handled in accordance with

DMP Asset Management Ltd’s privacy policy, a copy of which can be found at www.dmpam.com.au or posted / emailed to me if I contact DMP Asset Management Ltd on +613 9981 3300 or [email protected]. By submitting this form or any other paperwork relating to my investment I consent to my/our personal information being collected and handled by the Responsible Entity in accordance with that policy.

• I confirm that the Responsible Entity is authorised to accept and act upon any instructions in respect of this application and the units to which it relates given by me by facsimile. If instructions are given by facsimile, the onus is on me to ensure that such instructions are received in legible form and I undertake to confirm them in writing. I indemnify the Responsible Entity against any loss arising as a result of any of them acting on facsimile instructions. The Responsible Entity may rely conclusively upon and shall incur no liability in respect of any action taken upon any notice, consent, request, instruction or other instrument believed, in good faith, to be genuine or to be signed by properly authorised persons.

• I acknowledge that the Responsible Entity reserves the right to reject any application. Account operating instructions (if no selection is made, all individuals to sign will be assumed)

Any individual to sign Any two individuals to sign All individuals to sign Other (please specify– e.g. per attached Power of Attorney ): ___________________________________________

http://www.dmpam.com.a/

20

EXECUTED as an Agreement on this …..…………………… day of …………………..…….………………………. Execution Clause SIGNED for and on behalf of DMP Asset Management Ltd (ABN 77 145 590 316) by its authorised officer(s) Director/Chief Executive Officer Director / Secretary Name Name

Signature Signature

Client Execution Clause* Individual or Joint Applicant EXECUTED by Client 1 Client 2 Name Name

Signature Signature

Account Designation if required

Corporation / Trustee SIGNED by its authorised officer(s) for and on behalf of Company Name ABN

Director/Trustee/Chief Executive Officer Director/Trustee/Chief Executive Officer Name Name

Signature Signature

Account Designation if required

*An attorney may sign on behalf of an applicant in which case the original power of attorney or a certified copy must be sent together with this application for noting.

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Item 12: Certified Copy of an Original Document Certified copy means a document that has been certified as a true copy of an original document. Certified extract means an extract that has been certified as a true copy of some of the information contained in a complete original document by one of the persons described in the sub-paragraphs below. People who can certify documents or extracts are:

• a lawyer - a person who is enrolled on the roll of the Supreme Court of a State or Territory, or High Court of Australia, as a legal practitioner (however described);

• a judge of a court; • a magistrate; • a chief executive officer of a Commonwealth court; • a registrar or deputy registrar of a court; • a Justice of Peace; • a notary public (for the purposes of the Statutory Declaration Regulations 1993); • a police officer; • a postal agent - an agent of the Australian Postal Corporation who is in charge of an office supplying postal services to the public; • the post office - an permanent employee of The Australian Postal Corporation with 2 or more years of continuous service who is

employed in an office supplying postal services to the public; • an Australian consular officer or an Australian diplomatic officer (within the meaning of the Consular Fees Act 1955); • an officer with 2 or more continuous years of service with one or more financial institutions (for the purposes of the Statutory

Declaration Regulations 1993); • a finance company officer with 2 or more continuous years of service with one or more financial companies (for the purposes of

the Statutory Declaration Regulations 1993); • an officer with, or authorised representative of, a holder of an Australian financial services licence, having 2 or more

continuous years of service with one or more licensees; and • an accountant - a member of the institute of Chartered Accountants in Australia, CPA Australia or the National Institute of

Accountants with 2 or more years of continuous membership. • person authorised as a notary public in a foreign country

The eligible certifier must include the following information:

• Their full name • Address • Telephone number • The date of certifying • Capacity in which they are eligible to certify, and • An official stamp/seal if applicable

The certified copy must include the statement, “I certify this is a true copy of the original document”. For photographic documents, the certified copy must include the statement, “I certify this is a true copy of the original document and the photograph is a true likeness”. Documents that are written in a language that is not English must be accompanied by an English translation prepared by an accredited translator.