global diversified strategies fund · global diversified strategies fund abn 59 647 912 399, arsn...

Global Diversified Strategies Fund

Product Disclosure StatementThis is a combined Financial Services Guide and Product Disclosure Statement

Dated 1 January 2008Issued by: Colonial First State Investments LimitedABN 98 002 348 352 AFS Licence 232468

This is a combined Financial Services Guide (FSG) and Product Disclosure Statement (PDS) for the Colonial First State

Global Diversified Strategies Fund ABN 59 647 912 399, ARSN 098 097 164

The name and contact details of the responsible entity are:

Colonial First State Investments Limited Level 29, 52 Martin Place Sydney NSW 2000

Telephone: 13 13 36 Facsimile: (02) 9303 3200

Email: [email protected]

Investments in the Colonial First State Global Diversified Strategies Fund (‘the Fund’) are offered by Colonial First State Investments Limited ABN 98 002 348 352 AFS Licence 232468. Colonial First State or its licensed related entities to which it has delegated investment management or administrative functions in relation to this product are referred to in this PDS as ‘Colonial First State’, ‘the responsible entity’, ‘we’, ‘our’ or ‘us’.

The responsible entity may change any of the terms and conditions in the PDS with, in the case of material changes, 30 days notice to investors.

Colonial First State is a subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124. The Commonwealth Bank of Australia and its subsidiaries do not guarantee the performance of the Fund, or the repayment of capital by the Fund. Investments in the Fund are not deposits or other liabilities of the Commonwealth Bank of Australia or its subsidiaries and investment-type products are subject to investment risk including loss of income and capital invested.

Colonial First State reserves the right to outsource any or all of its investment management functions, including to related parties, without notice to investors.

The issue of this PDS is authorised solely by Colonial First State Investments Limited. Apart from Colonial First State neither the Commonwealth Bank of Australia nor any of its subsidiaries are responsible for any statement or information contained in this PDS.

If you are printing an electronic copy of this PDS you must print all pages including the application forms. If you make this PDS available to another person, you must give them the entire electronic file or printout, including the application forms. A paper copy of this PDS (and any supplementary documents) can also be obtained free of charge on request by calling Investor Services on 13 13 36 or by contacting your financial adviser.

Units in the Fund cannot be issued unless you use the application form attached to either a paper or electronic copy of this PDS.

The offer made in this PDS is available only to persons receiving this PDS within Australia. Applications sourced from outside Australia will not be accepted.

The information contained in this PDS is general information only and does not take into account your individual objectives, financial situation or needs. You should read this PDS carefully and assess whether the information is appropriate for you and consider talking to a financial adviser before making an investment decision.

All monetary amounts referred to in this PDS are, unless specifically identified to the contrary, references to Australian dollars.

FirstNet and FirstLink are trademarks of Colonial First State Investments Limited.

1Colonial First State Global Diversified Strategies Fund

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Introduction 2This section outlines some important information about what hedge funds are, including thebenefits of the Global Diversified Strategies Fund and a summary of the Fund’s features.

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Investments 5Outlines the management style of Colonial First State’s Hedge Funds investment team anddetails the general risks associated with the product. Further details on the Fund’s investmentobjective, strategy and key features are also outlined under this section.

Fees and other costs 10Details and descriptions of the significant fees of the product, what is paid to your financialadviser and important additional information about the fees and costs of the product.

Account management 13Provides information on establishing and transacting on your account, how you can accessinformation about your investment and details on receiving income (distributions) from yourinvestment.

Other information you need to know 18Additional information on transaction and unit pricing, investments, taxation, regulatory detailsand terms and conditions of the product.

Glossary 24We have included some common terms used in hedge fund management to assist youin building your understanding of this product.

Application form checklist and forms 25Includes all forms required by you to make an investment in the Fund as well as someinformation to assist you in the completion of each form.

Financial Services Guide 35Explains the services we can offer you and the types of products we offer. Also includesdetails of how we (and other relevant persons) are remunerated for these services.

2 Colonial First State Global Diversified Strategies Fund

Colonial First State Global DiversifiedStrategies Fund

If you are looking to diversify your portfolio away from traditional asset classmanagement, the Global Diversified Strategies Fund might be the investmentto suit you.

What are hedge funds?Hedge funds are professionally managed investment vehiclesthat focus on active returns which are generally not relatedto returns from traditional asset classes.

Hedge fund managers have greater flexibility than is usuallyallowed in traditional managed funds. This allows hedgefunds to use different investment strategies from traditionalmanaged funds.

Hedge funds may trade in share, debt, currency and commoditymarkets. They may be structured as trusts or companies andgenerally operate with few regulatory restrictions. They can havea variety of different investment objectives, strategies and styles.

Because of fewer restrictions and greater flexibility, hedge fundmanagers are able to employ the following techniques:

W Hedge funds can sell ‘short’ – which means they can sellassets they do not own. This provides the opportunityto hedge against risk or make profits in falling markets.

W Hedge funds can use leverage – which means they borrowto invest even more, if they believe the expected returnjustifies the risk.

W Hedge funds can actively use derivatives – like options andfutures – to help achieve their objectives.

What are ‘funds of hedge funds’?A ‘fund of hedge funds’ is a fund which invests in a numberof underlying hedge funds. This creates the potential to:

W diversify across different hedge fund strategies

W reduce the risks of being exposed to individual managers

W improve the expected risk and return profile of theexposure to hedge funds.

The Global Diversified Strategies Fund is a registeredmanaged investment scheme that operates as a ‘fundof hedge funds’.

Hedge fund glossaryWe have provided a glossary of terms commonly usedin hedge funds management on page 24.


Benefits of investing in the Fund 1

Sect

ion‘Funds of hedge funds’ have features that potentially make

them an attractive part of a diversified portfolio.

1Diversification away from traditionalasset class management.The performance of a ‘fund of hedge funds’ will generally be affectedby many different market and human factors. Generally, however,the performance is not strongly dependent on the performance of anysingle market such as bonds or shares. This provides potential portfoliodiversification benefits, meaning the risk-adjusted returns of a portfolioof traditional shares and bond investments may be improved by addinghedge funds.

2Potential to achieve positive returns even whenthe markets are falling.Hedge fund managers are not constrained by a traditional benchmark,meaning they have more flexibility in managing their exposure to markets.Hedge fund managers also have access to portfolio management toolssuch as short selling and derivatives. This provides greater opportunityto deliver positive returns during periods of negative performancein traditional asset classes.

3Diversified exposure to a broad universe of investmentstrategies and management skills.There are a variety of different investment strategies used by hedgefund managers with specialist skills in those areas. Many of thesestrategies differ from those used in traditional share and bond portfoliomanagement. ‘Funds of hedge funds’ are often diversified acrossmanagers and investment strategies.


Fund features at a glance

Who should invest?The Fund may suit you if you:

W want the potential for medium-to-long-term growth by investing in a selection of hedge funds from around the world

W want access to a wide range of international investment opportunities through skilled hedge fund managers

W are comfortable that you can only withdraw your funds on a quarterly basis subject to strict notice periods (due to the natureof hedge fund investments, withdrawal requests can take a number of months to process. Refer to page 14 for withdrawalcut-off and processing times)

W have a medium-to-long-term investment horizon of at least three to five years.

The Fund may not suit investors looking for:

W access to their funds at short notice

W distributions of tax-concessional capital gains

W consistent income distributions

W capital guaranteed or indexed products.

We recommend you consult your financial adviser when deciding if the Fund is appropriate for your investment needs.

This page summarises some important information about the Global Diversified Strategies Fund.

1 Subject to a minimum account balance of $1,000.

All fees disclosed include the net effect of GST except for the adviser service fee which is inclusive of GST. We can change fees at any time at our discretion.If the change is an increase in fees, we will give you three months prior written notice. Pages 10 to 12 outline all fees that apply to the Fund. Please read thisinformation carefully before investing.

Minimum initial investment $5,000

(or a minimum of $1,000 for investors who take up

a regular investment plan with their initial investment)

Minimum account balance $1,000

Minimum additional investments No minimum

Minimum regular investment plan $100

(monthly)

Minimum withdrawal1 No minimum

Current contribution fee Up to 4%

Current management cost 2.23% pa (including an estimated performance fee)

Current performance fee 10% of the positive returns of the Fund after management fees

Current withdrawal fee Nil

Adviser service fee Agreed between you and your financial adviser

Contact details

Internet: colonialfirststate.com.au

Phone: 13 13 36

Fax: (02) 9303 3267

Mail: Colonial First State, Reply Paid 27, Sydney NSW 2001

Email: [email protected]

Further information

is outlined in the

section ‘Establishing

and transacting

on your account’

on pages 13 to 15

Further information is

outlined in the section

‘Fees and other

costs’ on pages 10 to 12

Colonial First State’s management style


Colonial First State’s Hedge Fundsinvestment teamOur hedge fund portfolios are managed by an experienced,specialist team.

The key responsibilities of the team are to:

W maintain a pool of quality investment opportunities

W undertake due diligence on managers that may be includedin the portfolio

W construct portfolios which best meet the Funds’ objectives

W monitor hedge fund investments and portfolio characteristicson an ongoing basis

W undertake currency and equity strategies in accordancewith the objective of the Fund.

In meeting these responsibilities we may work closely with anexternal hedge fund consultant (who may be overseas-based),with the aim of offering the best combination of qualityinvestment management and transparency.

Hedge fund consultancy arrangementColonial First State may use or appoint an external hedge fundadviser to provide hedge fund consulting services to us fromtime to time.

This is an advisory relationship where the Colonial First StateHedge Funds investment team remains responsible formanaging the portfolios, with the external consultant providingus with additional global reach. Colonial First State reviews alladvisory relationships regularly with the aim of ensuring thebest outcomes for investors.

Our investment approachThere are four key elements to how we manage our hedgefund portfolios:

We have a strong process for identifying New ManagerOpportunities. This is necessary to support futureportfolio growth.

We have a disciplined and rigorous approach to ManagerSelection. A large amount of time is allocated to assessing boththe return opportunity and the risks associated with each hedgefund investment. Any appointed external adviser may providean additional level of review.

Our approach to Portfolio Construction is robust. We seekto maximise the active returns generated by the portfoliowhilst controlling the exposure to risk factors which may affectperformance.

Finally, we have well-defined practices for OngoingMonitoring. Each hedge fund manager in the portfolio ismonitored regularly, as are the characteristics of each portfolio.Any appointed external adviser may also monitor managersin Colonial First State’s portfolios. Having two groups monitoringrisk provides significant benefits to the portfolios.

The Colonial First State Hedge Funds investment team takes an activeand disciplined approach to investing in quality hedge funds.

NewManager

OpportunitiesManagerSelection

PortfolioConstruction

OngoingMonitoringW W W

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Understanding investment risk

What risks affect your investments?The main risks which affect hedge fund investments are:

Manager riskWhile Colonial First State aims to select underlying hedge fundmanagers who have the potential to generate above averagereturns over the medium term, those underlying managersmay not perform as well as expected. Different manager stylesproduce varying performance in different market environments.Additionally, there is the risk that key staff may leave theunderlying hedge fund, resulting in a lower qualitymanagement team.

Market riskWhile hedge funds aim to achieve returns independent ofreturns from traditional asset classes, each will be affected by theperformance of various markets to some extent. The primarymarkets which affect the performance of the Fund are:

W Australian cash

W Global shares

W High yield credit.

Business and operational riskBusiness risk is the risk that an underlying hedge fund managerwill be unable to run a successful business, resulting in theclosure of the hedge fund requiring a fund’s investment to beredeemed and invested elsewhere. Operational risk is the riskthat an underlying hedge fund manager will operate outsideof their usual investment practices.

This includes the manner in which an underlying fund managervalues their portfolio and also includes any possible fraudulentactivities undertaken by the underlying hedge funds managers.These events could result in a loss.

Liquidity riskThis is the risk that hedge fund managers are unable to convertassets quickly and easily into cash. This could mean that hedgefund managers are unable to meet or process requests forredemptions.

Currency riskInvestment in global markets gives rise to foreign currencyexposure. This means that the value of these investmentswill vary depending on changes in the exchange rate.

The Fund aims to be hedged back to Australian dollars to removethe influence of currency movements from the Fund’s returns.However, the Fund’s underlying hedge fund managers may usestrategies that directly or indirectly create an exposure to changesin exchange rates. These exposures may or may not be hedged.

Derivatives riskDerivatives are contracts between two parties that usually derivetheir value from the price of a physical asset or market index.They can be used to manage certain risks in investmentportfolios, however, they can also increase other risks in aportfolio or expose a portfolio to additional risks. Risks include:the possibility that the derivative position is difficult or costly toreverse; that there is an adverse movement in the asset or indexunderlying the derivative; or that the parties do not perform theirobligations under the contract. In general, investment managersmay use derivatives to:

W protect against changes in the market value of existinginvestments

W achieve a desired investment position without buyingor selling the underlying asset

W gear a portfolio

W manage actual or anticipated interest rate and credit risk

W alter the risk profile of the portfolio or the variousinvestment positions.

As a financial instrument, derivatives are valued regularly andmovements in the value of the underlying asset or index shouldbe reflected in the value of the derivative. The investmentoptions in the PDS may use derivatives such as futures, options,forward currency contracts and swaps, to manage the currency,equity, credit and any other market exposures which the Fundmay from time to time identify. The nature, type and size ofthese derivative instruments are determined by the Fund in itsabsolute discretion.

Leverage riskLeverage, also known as gearing, through borrowings canmagnify portfolio gains, but will also magnify losses. We useleverage as part of our overall investment strategy for the Fund(see page 8).

The leverage exposure is obtained as a result of a portion of theFund being invested into the Hedged Equity Strategies portfoliowhich undertakes the borrowing (refer to page 19). The Fundmay, from time to time, use borrowings to assist with theredemptions by shareholders, the process of redeeming fromone underlying investment to invest in another underlyinginvestment and to manage currency, equity, credit and othermarket exposures.

The Fund’s underlying hedge fund managers will frequently useleverage through both borrowings and/or the use of derivatives,as part of their investment strategy, and these activities mayimpact the Fund’s risk, liquidity and value.

Before you consider your investment strategy, it is important that youunderstand the risks that can affect your investment. All investments aresubject to risk. This means that you can lose money on your investmentsor that they may not meet your objectives.


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Short selling riskThe Fund may use short selling as part of its overall strategy totry to improve returns and to hedge the equity, credit and othermarket exposures in the portfolios. The short sale of a securitycan involve much greater risk than buying a security, as losses onthe securities purchased are restricted at most to the amountinvested, whereas losses on a short position can be much greaterthan the initial value of the security. Additionally, there can be noguarantee that the securities necessary to cover a short positionwill be available for purchase. Short selling will also incur interestand other costs on the securities borrowed by the Fund for sale.For a short sale to be profitable the return from the strategymust exceed these costs and, where losses are incurred onthe strategy, these costs will increase the losses.

Interest rate riskInterest rate risk occurs when changes in interest rates canresult in a loss of capital. Whilst the Fund may use borrowings,these will tend to be short term in nature and interest rate riskon these borrowings will therefore be small. However, the Fund’sunderlying hedge fund managers may use strategies that createan exposure to changes in interest rates with the objectiveof profiting from either rising or falling interest rates.

They may also borrow to leverage or fund other positions.The Fund may therefore be directly or indirectly exposedto interest rate risk.

Regulatory riskThere is a risk that there will be a change in taxation,or other relevant laws applicable to the Fund, in the countryof an offshore entity we use (refer to page 20), or with theinterpretation of taxation laws by the authorities responsiblefor the administration of such laws. If such events occur theymay negatively impact on investment returns.

How are the risks managed?The Colonial First State Hedge Funds investment team managesthe risks associated with hedge funds by the disciplinedapplication of its investment approach. Refer to page 5for details.

Are there any other risks youshould be aware of?When investing, there is the possibility that your investment goalswill not be met. This can happen because of the risks discussedpreviously. It can also happen if your investment strategy is notaligned to your objectives or investment timeframe.

How should you determine yourinvestment timeframe?Your adviser can help you determine your investment timeframe.

Although we have suggested minimum investment timeframes,you should regularly review your investment decision with yourfinancial adviser because your investment needs or marketconditions may change over time. Our minimum suggestedtimeframes should not be considered personal advice.

Managing investment risk through diversificationThe Colonial First State Global Diversified Strategies Fund canprovide benefits for investors who are looking for a meansto further diversify their portfolio.

Diversification is an effective risk management strategy involvingspreading your money across different investments within yourportfolio to smooth out returns.

So, if a specific investment is performing poorly, anotherinvestment may be experiencing better returns to offsetthis performance.


Investment information

Investment objectiveThe Fund aims to achieve medium-to-long-term growth by investingin a diversified selection of hedge funds from around the world.

Investment strategyThe Fund is diversified by manager and geography by investing in eachof the portfolios of the specific strategies (refer to the table opposite).The Fund may also invest into underlying single hedge funds whichdo not invest exclusively in these strategies.

The Fund’s allocation, which may be varied at any time, is intended tocreate a pool of investments which blend together to create a portfoliowhich is likely to deliver our fund objective.

Important featuresW Not less than 18 managers will be used.W Not more than 10% of the Fund will be invested with any one manager.W The Fund will use leverage through its allocation to the Hedged Equity

Strategies portfolio (refer to the table opposite). The Hedged EquityStrategies portfolio targets a gearing ratio of 50%. In addition,the Fund may borrow to assist with redemptions by shareholders,the process of redeeming from one underlying investment to invest inanother underlying investment and to manage currency, equity, creditand other market exposures. As a result the Fund will be leveragedand the level will vary. The underlying managers are also permittedto use leverage. For further information refer to pages 18 to 19.

W The Fund will not use financial derivatives except to manage thecurrency, equity, credit and any other market exposures which theFund may from time to time identify. The nature, type and size ofthese derivative instruments are determined by the Fund in its absolutediscretion. The underlying managers are permitted to use derivativesas part of their investment strategy.

W For details on how this Fund is structured please refer to page 19.

Minimum suggested timeframe 3-5 years

Global Diversified Strategies Fund


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The Fund accesses a range of different underlying strategies, including thebroad strategies detailed below. These broad strategies incorporate a numberof underlying sub-strategies.

Long Short Share Strategies

Relative Value Share Strategies

Fixed Interest Strategies

Tactical Strategies

Hedged Equity Strategies

Primarily funds that aim to add value through:W stock selectionW managing sharemarket exposure.The underlying managers can take long or short positionsto take advantage of expected share price movements.They may also use leverage and/or derivatives to achieve theiraims. The strategy will predominantly have a net long exposureto global sharemarkets and so is expected to perform betterin rising global sharemarkets.

Primarily funds that aim to add value through:W stock selectionW arbitraging related share securities.The underlying managers primarily attempt to profit byexploiting differences between the prices of similar securities.These may be securities issued by different companies or relatedsecurities within the same company. Managers may attemptto add value by holding both long and short positions in similarsecurities at the same time. They may also use leverage and/orderivatives to achieve their aims. The strategy is expected tohave low exposure to movements in share and credit markets.

Primarily funds that aim to add value through:W credit selection in high yield, distressed and emerging

market securitiesW exploiting different prices between related fixed

income securities.The underlying managers can take long and/or short positions infixed interest and credit securities and attempt to exploit pricingdifferences between credit securities. These securities typicallyinclude government bonds, corporate bonds, mortgage-backedsecurities and other fixed interest investments. They may also useleverage and/or derivatives to achieve their aims. The strategy willpredominantly have a net long exposure to credit markets and sois expected to perform better in strong credit market environments.

Primarily funds that aim to add value through:W the use of systematic quantitative analysis to forecast

likely directions of global marketsW fundamental analysis of global markets.The underlying managers may take directional long and shortpositions across global share, bond, currency, and commoditymarkets. They may also use leverage and/or derivatives to achievetheir aims. Funds in this group include those with opportunisticand/or short-term investment horizons such as macro, currencyand managed futures funds.

Primarily the strategy aims to add value through stock selection.The underlying managers will typically take long positions to takeadvantage of expected share price movements. They may take shortpositions and also use leverage and/or derivatives to achieve theiraims. Colonial First State aims to remove exposure to equity marketperformance by implementing a hedging strategy using derivatives.Colonial First State will use leverage to increase the exposure tounderlying managers (see pages 18 to 19).

Strategy Description Example

A hedge fund manager believes the outlook fora bank share is attractive, but the outlook fora mining share is negative. The manager buysshares in the bank and sells short the sharesin the mining company.

A hedge fund manager believes the price of theshares in a takeover target will rise relative to theprice of the shares of the company making thetakeover attempt (the acquirer). The manager buysshares in the takeover target and sells short theshares in the acquirer.

A hedge fund manager believes the yield on acorporate bond is too high compared to the yieldon a government bond. The manager buys thecorporate bond and sells short government bonds.

A manager buys a particular currency becausethe manager’s statistical models suggest thereis a strong chance of the currency appreciatingin the short term.

A hedge fund manager buys a particular sharebecause the manager’s fundamental analysissuggests that this stock has strong earningspotential over the medium term.


Fees and other costs

Establishment FeeThe fee to open your investment.

Contribution FeeThe fee on each amount contributed toyour investment.

Withdrawal FeeThe fee on each amount you take out ofyour investment.

Termination Fee The fee charged to close yourinvestment.

Management costs1

The fees and costs for managing yourinvestment.

Service fees

Switching FeeThis is the fee charged when you switchbetween funds.

Adviser Service FeePlease refer to page 12 for further details.

Nil

Up to 4.0%

Nil

Nil

2.23% pa2

N/A

Type of fee or cost Amount How and when paid

N/A

We will deduct the applicable contribution fee from yourinitial investment and any additional investments. Your adviserdetermines the entry fee you pay, up to the maximum shownin this table. Where you do not use an adviser the maximumcontribution fee applies.

N/A

N/A

The total estimated management cost is your total ongoing fee,expressed as a percentage of the total average net assets of theFund, including the estimated performance fee. See page 11for details of the performance fee.

The management costs are reflected in the unit price andpayable monthly or as incurred by the Fund.

N/A

All figures disclosed include the net effect of GST, except the adviser service fee which is inclusive of GST.

1 Abnormal costs are not included in this fee. Refer to page 12.2 Included in the management cost, an estimated performance fee has been used based on an assumed rate of return of 8% pa (after management fees).

The use of this estimate is not an indication of future performance. The actual performance fee and therefore the management cost will vary, dependingon the Fund’s return.

Did you know?Small differences in both investment performance and fees andcosts can have a substantial impact on your long-term returns.

For example, total annual fees and costs of 2% of your fund balancerather than 1% could reduce your final return by up to 20% overa 30-year period (for example, reduce it from $100,000 to $80,000).

You should consider whether features such as superior investmentperformance or the provision of better member services justifyhigher fees and costs.

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

To find out moreIf you would like to find out more, or see the impact of the feesbased on your own circumstances, the Australian Securities andInvestments Commission (ASIC) website (www.fido.asic.gov.au)has a managed investment fee calculator to help you check outdifferent fee options.

This document shows fees and other costs that you may becharged. These fees and costs may be deducted from yourmoney, from the returns on your investment or from theFund assets as a whole.

Taxes are set out in another part of the PDS.

You should read all the information about fees and costs because it is important to understand their impact on your investment.

Fees when your money moves in or out of the fund

Consumer advisory warning


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Management costsThe terms ‘management costs’ and ‘management fees’ meandifferent things.

Management costs include management fees, estimatedperformance fees (if applicable), investment expenses andcustody fees. Management costs are deducted from theperformance of the Fund (ie they are not charged directly to youraccount). They do not include contribution fees, transaction costsor additional service fees. The management cost for the Fundshown on page 10 is either an estimate or based on currentfinancial information. It is expressed as a percentage of theFund’s net assets and is outlined in the table opposite.

Management fees are the fees payable under the Constitution forthe management of the Fund. Management fees are calculatedfrom gross assets of the Fund. For details of the maximummanagement fees allowed under the Constitution, see below.

Performance feesIn addition to the management fee, a performance fee may alsobe payable from the Fund. The performance fee rate for the Fundis 10% of the positive return from the Fund, net of the Fund’smanagement fee (inclusive of the net effect of GST).

The performance fee is accrued monthly and paid quarterlyfrom the Fund. To determine the performance fee, the returnof the Fund is calculated before performance fees and afteradjustment for cash flows resulting from applications,withdrawals and distributions.

If the total performance of the Fund in any month is negative,a negative performance fee accrual will result.

Future months’ performance fees will be calculated after firstmaking up for any negative performance fee accrual carriedforward. We are not required to reimburse the Fund or investorsfor the amount of any negative performance fee accrual,including on termination of the Fund, however, we will notbe entitled to any subsequent performance fee until anynegative performance fee accrual from prior months isrecouped via positive performance.

For periods of high outperformance, the performance fee may besubstantial. We recommend you discuss this with your financialadviser to understand the impact of the performance fee.

Example of annual fees, performancefees and costs This table gives an example of how fees and costs in the ColonialFirst State Global Diversified Strategies Fund can affect yourinvestment over a one-year period. You should use this table tocompare this product with other managed investment products.

These fees are inclusive of the net effect of GST.

Please note that this is just an example. In practice, the actualinvestment balance of an investor will vary monthly and theactual fees and expenses we charge are based on the valueof the Fund, which also fluctuates monthly. The actualperformance fee will vary depending on the Fund’s return.

Additionally, sometimes the calculation of the performance feewill result in a negative dollar amount (negative performancefee). This negative performance fee is offset against anyentitlement to future performance fees. We do not haveto reimburse the Fund for negative performance.

Increases or alterations to the feesWe may vary the fees specified at any time at our absolutediscretion. If the variation is an increase in a fee or chargewe will give you three months advance written notice.

The Constitution of the Fund provides for the followingmaximum fees (inclusive of the net effect of GST):

W a maximum entry fee (referred to in this PDS as thecontribution fee) of 5.00%

W a maximum management fee of 2.50% pa(excluding the performance fee).

Underlying hedge fund managers’ feesWhile the exact fees charged by the investment advisers of theunderlying hedge funds will differ, such fees will generally consistof one or both of the following:

W a fee that is a percentage of the net asset value of theinterest in the relevant underlying hedge fund, rangingfrom 0% to 5% (typically around 2%), and/or

Example – Colonial First State Balance of $50,000 withGlobal Diversified Strategies a contribution of $5,000Fund during year

Contribution Fees 0 – 4.0% For every additional $5,000you put in, you will be chargedbetween $0 and $200.

PlusManagement cost 1.43%(excluding performance fee)PlusPerformance fee 0.80% Based on an assumed rate

of return of 8% pa(after management fees).

Total management cost 2.23% And, for every $50,000 you havein the Fund you will be charged$1,115 each year.

Equals If you had an investment ofCost of Fund $50,000 at the beginning of the

year and you put in an additional$5,000 during that year, you willbe charged fees of from:$1,115 to $1,315What it costs you willdepend on the investmentyou choose and the fees younegotiate with your fundor financial adviser.

Additional explanation of fees and costs

Fees and other costsW a performance fee equal to a percentage of the total

appreciation, if any, in the net asset value of the interestsin that underlying hedge fund, ranging from 0% to 50%(typically around 20%).

The Fund may be required to pay subscription fees andredemption fees in connection with its investments in theunderlying hedge funds. The Fund may also need to pay costsin relation to establishing and maintaining managed accountmandates with underlying hedge funds. The performanceof each fund is net of such fees.

Currency hedging costsThe Fund may undertake currency hedging transactions to fundredemptions or subscriptions in underlying hedge funds. The costsand expenses of currency hedging are attributed to the Fund.

Derivatives transaction costsThe Fund may undertake derivative transactions as described inthis PDS. The costs and expenses of these transactions areattributed to the Fund.

Borrowing costsWhere the Fund borrows for leverage purposes (where permitted),or to assist with the management of cash flows for withdrawals,distributions, transitions between underlying managers and managingcurrency exposure, any costs associated with the borrowings, such asestablishment costs and interest expenses, are paid out of the Fund.

Transaction costsTransaction costs such as brokerage, government taxes/duties/ levies,bank charges and account transaction charges are paid from theFund. Until further notice, no transaction costs (‘buy/sell’ spread)will apply to the Fund.

Abnormal costsAbnormal costs (such as costs of unitholder meetings, changes tothe Constitution and defending or pursuing legal proceedings) arepaid out of the Fund. These costs are incurred fairly infrequently.

Other operating expensesThe Constitution for the Fund allows for the ongoing operatingexpenses (such as a custodian fee of up to 0.30% pa, cost ofinvestor meetings, changes to the Constitution, defending legalproceedings, and special valuations of assets, registry, audit, taxationadvice, use of an external consultant, PDS, accounts, stationery,postage and compliance committee expenses) to be paid directlyfrom the Fund. Until further notice we will pay such amounts.

The Constitution does not place any limit on the amount of theongoing operating expenses that can be paid from the Fund.If these fee arrangements change we will advise you in advance.

What is paid to your adviser?The adviser recommending this product may receive payment(‘remuneration’) for the sale. Your adviser’s remuneration, whichis described in the table below, is included in the charges shownpreviously (except any remuneration that the adviser charges youdirectly as a fee for service). The amounts shown include GSTwhich is paid by us.

Dealer groups, IDPS operators and other licensees may receiveremuneration from us for offering the Fund on their investmentmenus or for the provision of services. This remuneration willgenerally be in the form of a Fund Manager Payment and maybe up to 0.20% of funds invested. These amounts may berebated or retained by the dealer group, IDPS operator orlicensee. If these amounts are paid, they are paid by us andare not an extra amount paid from the Fund nor are they anamount you pay.

Any payments will be made in compliance with the IFSA IndustryCode of Practice on Alternative Forms of Remuneration. We keepa register of certain payments as required by the Code. Pleasecontact us if you would like to view this register. Details of theadviser’s remuneration will be in the Financial Services Guideand Statement of Advice which your adviser must give you.

Adviser service feeYou can agree with your financial adviser to have an adviserservice fee for advice paid directly from your investment.The adviser service fee will be paid to your current adviseror any subsequent adviser on your investment.

This fee, expressed as a percentage of your investment, will bededucted as an additional fee from the Fund on a monthly basisand will appear on your regular statements. You specify thepercentage amount (including GST) on the application form.Colonial First State may at its discretion refuse to deductan adviser service fee.

Negotiation of feesOutlined below are the circumstances in which certain investorscan negotiate or receive lower fees.

Adviser feesYou may be able to negotiate lower contribution fees.Please contact your adviser directly.

Differential feesWe may issue units to certain investors such as sophisticated,professional, wholesale investors or Commonwealth Bank ofAustralia Group employees with reduced entry and/ormanagement costs. Such arrangements would be subject toindividual negotiation, compliance with legal requirements andany applicable Australian Securities and Investments Commission(ASIC) class orders.

TaxationPlease refer to page 20 for further details.

ExpensesWhere any expenses are tax deductible, the benefit of anydeduction will be reflected in the distributions made to you.

Adviser remuneration (%)Upfront1 Ongoing

(max) trail2 (pa)

Global Diversified Strategies Fund 4.29% 0.44%


1 % of initial investment.2 % of value of retained investment.


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To make it easy for you to keep up-to-date and transact on your investment, we provide youwith a number of transaction options:

The quickest way to transact on your account is by using our secure internet service, FirstNet. Managingyour investments through FirstNet means your transaction is processed immediately. You can accessFirstNet by visiting our website.

The table below provides you with information on how to set up and transact on your account and theoptions available to you. For further information on how your transactions are processed please refer topage 18. We recommend you contact your financial adviser to discuss your needs before any transaction.

Internetcolonialfirststate.com.au

[email protected]

Direct credit and BPAY®

Telephone and internet banking – BPAY®

Call your bank, credit union or buildingsociety to make this payment from yourcheque, savings or credit card account.More info: www.bpay.com.au

Telephone13 13 36 (toll free)

Fax(02) 9303 3267

MailColonial First State, Reply Paid 27Sydney NSW 2001

Whether you prefer the internet, telephone, email or fax, managingyour investment is easy.

How do I… What I need to do Instruction options Things to be aware of

Complete the application form on page 27and send to us.

Important note: Application unit prices arecalculated effective as of the last day of eachmonth. Due to the nature of hedge fundinvestments, it takes underlying managerslonger to value their portfolios than fortraditional investments and we may not receivevaluations from managers for several weeks.As a result, the unit price will be calculatedand declared approximately four to six weeksafter each month end. Longer periods mayapply from time to time. We will send youa confirmation advice within five days ofreceipt of your application.

Cut-off application datesApplications must be received (prior to 3pm)nine (9) NSW business days before the last dayof each month to receive that month’s entryunit price. Entry unit prices are calculatedeffective the last day of each month.

Please obtain up-to-date cut-off dates fromour website or call us on 13 13 36.

A minimum total investment of $5,000 is requiredto establish an account in the fund. However, if youelect to take up a regular investment plan withyour initial investment the minimum totalinvestment is $1,000.

You may not invest in the fund if you are a‘U.S. Person’ as defined by the U.S. SecuritiesAct 1933 as adopted by the U.S. Securitiesand Exchange Commission (generally if youlive or receive mail in the U.S.A.) at the timeof your initial application. You must notify usif your status changes.

Applications received by 3pm (Sydney time) onthe relevant cut-off application date (as detailedopposite): We may invest your monies into thefund up to nine (9) NSW business days before theend of that month.

Applications received after 3pm (Sydney time)on the current month’s cut-off date: We will notinvest your money and may return it to you or holdit in a non-interest bearing account until the nextinvestment date.

Set up an account?

® Registered to BPAY Pty Ltd ABN 69 079 137 518.

Establishing and transacting on your account


Account managementHow do I… What I need to do Instruction options Things to be aware of

Please provide us with a written requestor a completed withdrawal form from ourwebsite or by calling 13 13 36.

Bank details are to be provided on an originalsigned request.

Important note: Unit prices are calculatedeffective the last day of each quarter. Due tothe nature of hedge fund investments, it takesunderlying managers longer to value theirportfolios than for traditional investments andwe may not receive valuations from managersfor several weeks. As a result, the unit pricewill be calculated and declared approximatelyfour to six weeks after each quarter end.Longer periods may apply from time to time.

Cut-off withdrawal datesWithdrawal requests must be received (priorto 3pm) seventy (70) days before the last dayof each quarter (September, December, Marchand June) to receive that quarter’s exit unitprice. Exit unit prices are calculated effectivethe last day of each quarter.

Please obtain up-to-date cut-off dates fromour website or call us on 13 13 36.

No minimum amount applies, subject to minimumaccount balance requirements.

Withdrawals can be paid to your previouslynominated bank account or by cheque.

Withdrawals may be made quarterly in accordancewith the strict notice requirements set out below.Withdrawals are not permitted at any other time.

If you wish to make a withdrawal, the requestmust be received by 3pm (Sydney time) 70 daysbefore the last day of each quarter (September,December, March and June). The withdrawal willbe paid approximately four to six weeks followingthe end of the quarter. Therefore it may takeup to 16 weeks to receive withdrawal proceeds.

Once a withdrawal request is made it cannotbe revoked.

Make awithdrawal?

To use any of these options you must havepreviously provided a direct debit authorisationto allow us to draw from your Australianfinancial institution account.

Please obtain a Regular Investment form fromour website or call us on 13 13 36.

Funds are drawn from your bank account on thefirst business day after the 19th of each month.

You can choose to have your regular investmentautomatically increased by a percentage basedon the Consumer Price Index (or 3%, whicheveris the greater)2. Please nominate this on theapplication form.

A minimum amount of $100 applies.

Make regularcontributions frommy bank account?1

If you wish to make additional investmentsusing direct credit from your bank account,please refer to the details below:

BSB: 062-778Account number: Last 9 digits of your fund

account numberAccount name: First name and surname

Please note: Over the counter branchdeposits cannot be accepted.

Refer to your Australian financial institution forpayment of funds. You will need to quote:

Biller code: 78873Reference number: 1 + account number

To use these options you will have previouslysupplied a direct debit authorisation to allowus to draw from your Australian financialinstitution account.

Please complete an Additional and RegularInvestment form or letter, accompanied by acheque made payable to ‘Colonial First StateGlobal Diversified Strategies Fund,<Investor name>’ or the direct debit authorityon page 33.

No minimum amount applies.Make additionalinvestments tomy account?

Telephone andinternet bankingCall your bank, creditunion or building societyto make this paymentfrom your cheque, savingsor credit card account.More info:www.bpay.com.au


4

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How do I… What I need to do Instruction options Things to be aware of

Certain types of changes may requirea written request, accompanied bycertified documentation.

Please contact us and advise your change.Change mypersonal details?

A written request will also be requiredsubsequent to any telephone advice.

Please provide us with a written request by 3pm(Sydney time) on or before the day the originalrequest is received.

Please note: Once a withdrawal requestis made, it cannot be revoked.

Cancel a request?

Your investment continues to be subject tomovements in the value of the Fund fromthe date you lodge your withdrawal request,until the last day of the quarter in which thewithdrawal request is processed. We will alsosend you confirmation of your unit price andvalue once unit prices have been calculatedat the end of each quarter.

The timing of the payment to you is subject tothe liquidity of the Fund (ie the amount of cashheld by the Fund). Where there are insufficientcash reserves to satisfy all withdrawal requestsat once, the Constitution permits us to makepayments proportionately between investorsbased on the amount of withdrawalsrequested. In extreme circumstanceswithdrawals may be suspended or their fullpayment deferred for some time. We may usea borrowing facility to manage withdrawals.

Your withdrawal request will be processed as at theend of the quarter as soon as we have calculatedthe quarter end unit prices for the Fund. Due tothe nature of the underlying investments, thismay take four to six weeks (as discussed in theimportant note on page 14). If we receive yourwithdrawal request after the current quarter’scut-off date, your withdrawal request will not beprocessed until the unit price is calculated for thefollowing quarter.

Find out when myfunds will beavailable?

1 Regular investments are accepted in accordance with the PDS current at the time of the relevant investment. A copy of the current PDS is available freeof charge on request. We may terminate this facility if the direct debit fails three times in any 12-month period. Please note that any changes to this facilitymust be received prior to the last business day prior to the 19th of the month for the change to take effect for that month.

2 We will notify you in writing prior to the increase in August each year. If you opened your account between February and August, the first increase willhappen in August of the following year.

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v

Account management

vUp-to-date information on your investmentis easily accessibleAfter you invest, we will ensure you are kept informed about yourinvestment by sending you the following information. For eachtype of communication, you can elect on the application formwhether to receive it by email or mail1.

When you transact on your account

W A confirmation for each investment or withdrawal(excluding those via the regular investment plan).

W A letter once unit prices have been calculated confirmingunits purchased or sold.

W An Online Identity Number (OIN) and PersonalIdentification Number (PIN) for access to FirstNet shortlyafter your investment is received (you can elect notto receive this on the application form).

Quarterly

W A statement showing your transactions and the valueof your investment at the end of June, September,December and March each year.

Yearly

W A tax statement containing a summary of yourdistributions and tax components for the year ended30 June, to assist you in preparing your tax return.

W A capital gains statement (if you have redeemed anyunits during the year).

Periodically

W Educational and promotional material may be sent fromtime to time which provides you with information ongeneral investing, superannuation and our products(you can elect not to receive the material by writing to us).

Due to the nature of hedge fund investments, underlyingmanagers may take longer to value their portfolios thantraditional investments. We may, therefore, experience delaysin receiving valuations we require from managers and, as aresult, distribution amounts will be calculated and declaredapproximately six to eight weeks after the effective distributiondates. Longer periods may apply from time to time. In turn,you may not receive an annual distribution summary for theFund at the same time as annual distribution summaries foryour other investments.

Where can I obtain the latest informationabout the Fund?It is important that you keep up-to-date with the latest informationon the Fund. Information that is not materially adverse is updatedfrom time to time. This includes information on the Fund,its performance and historical unit prices.

To obtain this information, you can:

W visit our internet site at colonialfirststate.com.au

W phone Investor Services on 13 13 36 for the cost of a local callwithin Australia.

A paper copy of the most recent information will be sent to youfree of charge on request

How do I access information on my investment?To find out current information and/or manage your investment,you can:

W Use FirstNet to access your investment easily –online at colonialfirststate.com.au

FirstNet Investor is our secure internet service which providesyou with personalised information about your investmentsas well as the ability to make changes to your account andtransact online.

With FirstNet Investor, you can:

W access your account balance and transaction history

W make additional investments (if applicable)

W set up regular investment plans (if applicable)

W buy, sell and switch your investment

W open a new account online

W update some of your personal details

W change your PIN

W view tax and distribution information (if applicable).

Call Investor Services and request a copy of ‘Access youraccount anytime – 24/7’.

W Use FirstLink, our automated telephone service

To access your information by phone, 24 hours a day,seven days a week.

W Call Investor Services on 13 13 36

You can speak to an Investor Services representative Mondayto Friday, 8am to 7pm (Sydney time).

InvestorFirstNet2 FirstLink Services

General enquiriesProduct information 3 7 3

Performance figures 3 3 3

Unit prices 3 3 3

Annual financial reports 3 7 3

Account enquiriesPortfolio information 3 3 3

Details of account facilities 3 7 3

Transaction history 3 3 3

(including recent transactionsand statements)

1 From time to time we may still need to send you letters in the post.2 To enquire you will need to be registered and log in using your OIN and PIN. Enquiry access is automatically given to investors (unless you elect not to receive

this on the application form).

Accessing information on your account

v


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Distributions are based on the number of units you hold inthe Fund, in proportion to the number of units held by allunitholders, at the distribution date. The amount and typeof income you receive from your investment depends on theassets in which the Fund invests.

Distributions are calculated effective 30 June and 31 December.Distribution amounts will be declared approximately six to eightweeks after the effective distribution dates. Only investorswho hold units on the effective date are entitled to receivedistributions. We may vary the distribution timing andfrequency without giving notice to investors.

What are my distribution choices?You can choose to have your distributions:

W automatically reinvested, with no application fee ortransaction costs payable. The additional units are purchasedusing the net asset value per unit immediately after thedistribution, or

W directly credited to your Colonial First State Premier CMT,Colonial First State Cash Management Trust, or Australianfinancial institution account.

Please nominate your choice on the application form.If you do not make a nomination then your distributionswill be automatically reinvested.

What happens if I invest justbefore a distribution?The unit price falls by the amount of any distribution (per unit)immediately after it is declared.

If you invest just prior to a distribution, then that distributioneffectively represents a return on your investment.

Depending on your circumstances, this may have certain taximplications. Therefore, you should carefully consider the timingof any investment into this product.

We recommend you speak with a financial adviser or tax adviserto determine your own situation. Distribution dates should bechecked prior to transacting on your account.

Effect of currency hedging on distributionsThe Fund aims to be hedged back into Australian dollars withthe aim of offsetting the effect of currency movements onthe performance of the Fund. This may result in revenue gainsor losses from currency fluctuations throughout the year,which may affect distributable income.

We recommend that you speak with a financial adviser or taxadviser for further information on how currency hedging mayaffect distributions.

You may receive some income from your investment in the formof distributions. Your distributions may include income such as interestand realised capital gains.

Receiving income


Other information you need to know

Transactions and unit pricingHow are my transactions processed?

ApplicationsTo ensure your applications are processed efficiently it isimportant that you complete all sections of the applicationform and provide us with all documentation we request(refer to the application form checklist on page 25).

If all information is not provided we may not be able to proceedwith your request until the required information is received.In these situations we may:

W attempt to contact you and/or your adviser (if applicable)

W hold your application monies in a non-interest bearingaccount until we receive the required information.

Funds are held for a maximum period of 30 days (in a non–interestbearing account) commencing on the day we receive the funds.After this period your funds will be returned to the source ofpayment.

You receive an interest in the Fund as soon as weinvest your monies into the Fund. When we receiveyour application we will then divide your investmentamount by the entry unit price calculated as at thelast day of the month (refer to cut-off application timeas outlined below) to work out the number of unitsto be allotted to you.

In extraordinary circumstances we may suspend applicationsand we may also reject applications at our discretion.

WithdrawalsIf your valid transaction request is received in our office beforethe relevant withdrawal cut-off time as outlined opposite,it will be processed using the next determined unit price.In extraordinary circumstances we may suspend or deferpayment of withdrawals.

Transaction cut-off timesIf your valid transaction request is received in our office beforethe relevant cut-off time as noted opposite, it will be processedusing the next determined unit price.

Cut-off application datesApplications must be received (prior to 3pm) nine (9) NSWbusiness days before the last day of each month to receivethat month’s entry unit price. Entry unit prices are calculatedeffective the last day of each month.

Cut-off withdrawal datesWithdrawal requests must be received (prior to 3pm) seventy (70)days before the last day of each quarter (September, December,March and June) to receive that quarter’s exit unit price. Exit unitprices are calculated effective the last day of each quarter.

How are unit prices calculated?The Fund is valued monthly. When your money is invested in theFund, you are allocated a number of units. Each of these unitsrepresents an equal part of the market value of the portfolioof investments that the Fund holds.

As a result, each unit has a dollar value or ‘unit price’. The unitprice is calculated by taking the total market value of the Fund’sassets as at the last day of the calendar month, adjusting forany liabilities and then dividing the net fund value by the totalnumber of units held by all investors on that day. We determinethe market value of the Fund based on the information we havemost recently available.

We may exercise certain discretions that could affect the unitprice of units on application or withdrawal in each option.The types of discretions that we may exercise, in whatcircumstances, our policies on how we exercise the discretionsand the reasons why we consider our policies are reasonable,are set out in our Unit Pricing Permitted Discretions Policy.If we exercise a discretion in a way that departs from the policiesset out in our Unit Pricing Permitted Discretions Policy, we arerequired to keep a record of this in a Register of Exceptions.You can obtain a copy of our Unit Pricing Permitted DiscretionsPolicy or Register of Exceptions, or both, free of charge,by calling us on 13 13 36.

InvestmentsDoes the Fund borrow?The Fund will use borrowings as part of the overall investmentstrategy. This is a result of a portion of the Fund being investedinto the Hedged Equity Strategies portfolio which undertakes theborrowing (for the level of leverage please refer to the additionalinformation on leverage/gearing on page 19).

The Fund may borrow to assist with redemptions by shareholders,the process of redeeming from one underlying investments toinvest in another underlying investment and to manage currency,equity, credit and other market exposures. Borrowings may incuran interest expense, and the establishment and maintenance ofa borrowing facility may result in some expenses which are paidout of the Fund.

Additional informationThis section provides additional information you need to know with regard to the following areas of your investment in the Fund:

Transactions and unit pricing Page 18Investments Page 18Taxation and regulatory Terms and conditions Page 22


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Additional information on leverage/gearingWe use leverage, also known as gearing, as part of our overallinvestment strategy for the Global Diversified Strategies Fund.

What is gearing?Gearing is borrowing money to increase the amount available forinvestment. The Hedged Equity Strategies portfolio borrows moneyat competitive institutional rates, and invests both your money,and the borrowed amount, in high quality equity funds.

One of the benefits of gearing is that, unlike margin loans, investorsare not required to apply additional funds to meet borrowing costs,nor sell assets to repay debt or pay interest. All obligations are metby the funds. However, gearing increases the gains or losses frominvestments compared to the returns on a corresponding ungearedinvestment. Geared funds are regarded as higher risk fundscompared with ungeared funds, and there may be significantfluctuations in investors’ returns.

The gearing level in a fund is measured as the ratio of total debtto total assets. For example, if the debt is $50 and assets are worth$100, the gearing ratio is 50%.

How does the gearing work in the Global DiversifiedStrategies Fund?The Fund is partially invested into the Hedged Equity Strategiesportfolio. The Hedged Equity Strategies portfolio targets a gearingratio of 50%. In addition, the Fund may also borrow to assist themanagement of cash flows. We will manage the gearing ratioof the Fund at our discretion, but it will be actively reducedif it exceeds 50%.

How do the funds borrow?The fund manager determines the best way to borrow money.This will typically be through a borrowing arrangement atcompetitive rates from a selection of international and domesticbanks. Interest and associated borrowing costs are paid by the funds.Providers of funding have priority over fund investors for interestand principal repayments. Lenders earn interest, and lenders mayreceive early repayment fees, legal fees, normal government charges,account transaction fees, establishment fees and undrawncommitment fees.

What are the risks?Gearing magnifies both gains and losses from the fund’s investments,and investors in geared funds will face larger fluctuations in thevalue of their investment than on a comparable ungeared portfolio.In extreme conditions, such as a rapid market fall of nearly 60%in the value of the underlying managers, investors may loseall their capital.

We suggest you consult a financial adviser regarding the impactof these investments on your overall portfolio.

Are labour standards or environmental, socialor ethical considerations taken into account?As the responsible entity, we do not specifically take intoaccount labour standards or environmental, social or ethicalconsiderations when making investment decisions.

However, where those factors negatively impact investmentperformance or company stability we may discuss these matterswith company management and/or review our decision to holdthe specific investment. Reviews are on a case by case basis assuch factors arise. We do not use any specific methodology forsuch reviews or have predetermined views about the extentto which such factors will be taken into account in a review.

When we select underlying hedge fund managers we do notspecifically take into account labour standards or environmental,social or ethical considerations. However, we may considerthese factors to the extent that they impact on a hedge fundmanager’s organisational stability, reputation and performance.

Hedge fund managers may have their own policies on theextent to which labour standards or environmental, socialor ethical considerations are taken into account when makinginvestment decisions.

These policies are not specifically considered in selecting hedgefund managers.

How is the Fund structured?The Colonial First State Global Diversified Strategies Fundinvests into the Wholesale Global Diversified Strategies Fund,which in turn invests via a series of related offshore entitieswhich we have established for the efficient management ofthe Fund. The costs associated with establishing these offshoreentities will be met by Colonial First State and not the Fund.Abnormal costs in managing the offshore entities (such aschanges to the Constitutions and defending or pursuing legalproceedings) may be met by the Fund.

As a result, when we refer to the investments of the Fund inthis PDS, we are referring to the investments of the underlyingrelated offshore entities.


Taxation and regulatoryHow is my investment taxed?Because the Australian taxation system is complexand different investors have different circumstances,you should consider seeking professional taxation advicebefore investing in this Fund.

You may be required to pay tax in relation to your investmentin the fund (generally income or capital gains tax), however,you may be able to claim some tax credits or have the benefitsof some tax concessions.

Some tax information has been provided for you below,however, although every care is taken, including the use ofexternal professional advisers, it is never possible to rule outthe risk that on a subsequent review, taxation liabilities of theFund could be increased or the benefit of concessions reduced.Because investors can move into and out of the Fund at differentpoints in time, there is a risk that taxation liabilities in respectof gains that have benefited past investors may have to be metby subsequent investors.

This tax information is current at 1 January 2008. The levelsand basis of tax may change in the future.

We will send you all the information you need each yearin order for you to complete your tax return.

Will I be liable to pay tax on money I receive fromthe fund?You may, depending on your total level of taxable incomeand your income tax rate. This is the case whether the moneyis actually paid to you or reinvested.

The tax impact for you depends on what makes up thedistributions. Distributions could comprise:

W income (such as dividends and interest)

W net capital gains (from the sale of the fund’s investments),and

W tax credits (such as franking credits attached to dividendincome and credits for tax paid on foreign income).

Will I be liable for tax when I withdraw money fromthe fund?You may, depending on your total level of taxable income andyour income tax rate. Australian residents are generally subjectto capital gains tax on gains when they switch or withdrawfrom an option or transfer units to another person or entity.Depending on the type of taxpayer you are defined as and howlong you have held your units, you may be entitled to a capitalgains tax concession which can reduce the liability by up to 50%.

What are Foreign Investment Funds?The overseas hedge funds that the Fund ultimately invests intoconstitute Foreign Investment Funds (FIFs) for Australian taxpurposes. The FIF regime normally requires income from foreignsources to be recognised on an attribution basis. That is, any risein value in a year must be brought to account as income whetheror not that gain has been realised.

We will determine whether there is any income required to berecognised for FIF purposes and include it within the annualdistribution of the Fund. If required by the Income Tax

Assessment Act, we shall keep any special records or establishunderlying investment structures necessary to comply withFIF provisions.

Do I have to quote a Tax File Number (TFN)or an Australian Business Number (ABN)?(Australian residents only)You choose whether to quote your TFN on your applicationform. Without your TFN or appropriate exemption information,we are required to withhold tax at the highest marginal tax rate(plus Medicare levy) from income distributions made to you.

What is the Constitution?The Fund is governed by a Constitution. Together with theCorporations Act and some other laws, the Constitution sets outthe conditions under which the Fund operates and the rights,responsibilities and duties of the responsible entity and investors.

The Constitution deals with a number of issues including:

W your rights as a holder of units

W fund termination, and

W our broad powers to invest, borrow, receive fees and otherpayments and generally manage the fund.

The Constitution states that your liability is limited to the amountyou paid for your units, but the courts are yet to determine theeffectiveness of provisions of this kind.

You can inspect a copy of the Constitution at our head officeor we will provide you with a copy free of charge.

The Constitution gives us a number of rights, including a numberof discretions relating to unit pricing. You can obtain a copyof our Unit Pricing Permitted Discretions Policy, free of charge,by calling us on 13 13 36.

We may alter the Constitution if we, as the responsible entity,reasonably consider the amendments will not adversely affectinvestors’ rights. Otherwise we must obtain investors’ approvalat a meeting of investors.

We may retire or be required to retire as responsible entity(if investors vote for our removal).

Your rights to requisition, attend and vote at meetings aremainly contained in the Corporations Act.

How is my personal information dealt with?The privacy of your personal information is important to us.We collect personal information so that we may provideyou with the products and services you request as well asinformation on other products and services offered by us,unless you tell us otherwise. The law may also require usto collect personal information.

We may disclose personal information to other parties(confidentiality arrangements apply) for certain purposes thatwe outsource, including bulk mailing, market research andinformation technology support. We also seek expert help fromtime to time to help us improve our systems, products andservices. Your personal information may be disclosed to thesethird parties in such circumstances. Your personal informationwill not be shared with other third parties (except with ourrelated bodies for prudential and risk management purposes).

Other information you need to know

Your personal information may also be used by us to administer,monitor and evaluate products and services, gather, aggregateand report statistical information, assist you with any queriesand take measures to detect and prevent fraud and other illegalactivity. We may also be allowed or obliged to disclose informationby law and to report on prudential or risk management matters.

If you used a financial adviser who recommended yourinvestment in the Fund (as indicated on your application form),then details of your investment will be provided to them.

We aim to ensure that the personal information we retain aboutyou is accurate, complete and up-to-date. If you provide us withincomplete or inaccurate information, we may not be ableto provide you with the products or services you are seeking.

If you have any concerns about the completeness or accuracy ofthe information we have about you or would like to access yourinformation, simply call Investor Services on 13 13 36 or send anemail to [email protected]. If you would likea copy of our Privacy Policy Statement visit our websiteat colonialfirststate.com.au or call us.

You will be taken to agree to the collection, use anddisclosure of your personal information as set outabove when you make an investment in the Fund.

Is there a cooling-off period?A 14-day ‘cooling-off period’ may apply to your investment inthe fund in certain circumstances. Due to the complex natureof hedge funds, however, it may take a couple of months to getyour money back. You should get independent advice to ensurethis investment suits your needs before investing. If, during the14-day cooling-off period, you decide that the investment doesnot meet your needs, then simply advise us in writing.

The 14 days starts when your transaction confirmationis received by you or five days after we invest your money,whichever is earlier. We will refund your investment, reducedor increased for market movements. Your refund will beprocessed as a withdrawal and based on the unit pricecalculated for the following month end after the next cut-offwithdrawal date. We will also deduct any tax or duty incurredand a reasonable amount for transaction and administrationcosts. As a result, the amount returned to you may be lessthan your original investment.

Can I appoint an agent?You are entitled to appoint an agent (for example, your financialadviser, solicitor, or someone else that you trust) to act on yourbehalf. If you wish to appoint an agent, call us on 13 13 36for a form.

Please note that by appointing an agent to act on your behalfyou are giving that person full authority over your account.

Would you like to give us feedback,or do you have a question or complaint?If you have an enquiry, a problem we can help you with, or wouldsimply like to give us feedback then you can contact us by:

Calling us on 13 13 36, Monday to Friday, 8am to 7pm,Sydney time

Emailing us at [email protected] to us at Colonial First State

Reply Paid 27, Sydney NSW 2001

We value your comments and work hard to address any problemswe become aware of, but if we are unable to resolve a problemto your satisfaction you can take it further by contacting theComplaints Resolution Officer using the above contact details.We ensure that any complaint is properly considered and respondedto swiftly, in most cases this will be within 14 days. If you would likemore information on our complaints procedure please contact us.

We hope that you are satisfied with how we address yourcomplaint, but if our response is not adequate, or if you have notreceived a response after 45 days, you can have your complaintreviewed by the Financial Industry Complaints Service (FICS).You can phone FICS toll free on 1300 780 808.

What are our reporting requirements?As a disclosing entity under the Corporations Act, the Fundis subject to regular reporting and disclosure obligations.Copies of documents we lodge with ASIC to fulfil theseobligations may be obtained from, or inspected at, an ASIC office.

You also have a right to request a copy of certain documentsfrom us when they become available, and we must send youa copy (free of charge) as soon as practicable and in any eventwithin five days. Your request will be fulfilled in the way youchoose – by email, fax or post, or you can collect it from ouroffices. The documents are:

W the annual financial report for the Fund most recently lodgedwith ASIC, and

W any half-year financial report lodged with ASIC and anycontinuous disclosure notice given for the Fund after thelodgement of the annual financial report for the Fund andbefore the date of this PDS.

Annual financial reportsAn annual financial report detailing the financial position andperformance of the fund over the last financial year will bemade available on our website – colonialfirststate.com.au/annual reports, by 30 September each year. If you would preferto have a copy emailed or mailed to you, please contact us.

Are there any other benefits toColonial First State?In consideration of stockbroking fees paid for the purchase andsale of Fund assets, certain stockbrokers may pay for some ofour third party research and financial markets data, or otheralternative research and execution services set out in the relevantIFSA Guidance Note. Such payments are monitored by us toensure that any such arrangement is appropriate and in the bestinterests of investors. A copy of our policy is available on request.

The Fund receives banking and treasury-related services fromthe Commonwealth Bank Group in the normal course of businessand pays normal commercial fees for them. Colonial First Statemay derive monetary or administrative benefits from theCommonwealth Bank Group as a consequence of maintaining theFund’s bank accounts with the Commonwealth Bank of Australia.

Can an Investor Directed Portfolio Serviceuse this PDS?Where the Colonial First State Global Diversified Strategies Fund PDSis included on an authorised investment list for an Investor DirectedPortfolio Service (IDPS), this PDS may be used by an investor wishingto give the IDPS provider a direction to invest in the Fund.


5

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Other information you need to knowWhere an investor does instruct an IDPS provider to invest in theFund, the investor will not be a unitholder in the Fund. The IDPSprovider will hold the units and any rights attaching to the unitswill be exercisable by the responsible entity. If you are investingin an IDPS, it is important that you read this PDS in that context.

Colonial First State will notify the operators of relevant IDPSs as soonas is reasonably practicable if a supplementary or replacement PDSis issued.

Terms and conditionsThese terms and conditions apply when you open an accountwith us and instruct us by phone or fax, or access FirstNetor FirstLink. It is important that you read them carefully beforeyou provide us with instructions so that you know what willapply to your transactions.

Limitation of liabilityW All other representations and warranties relating to these

services are excluded except for any term which is impliedby law, which is taken to be included in these terms andconditions. But our liability for breach of that term is limitedto resupplying the service or paying the cost of providingthe service again.

W Subject to the paragraph above, we are not liable in anyway (including in negligence) for any losses that you suffer(however caused) through using or supplying informationby phone, fax, email, FirstNet or FirstLink.

W You agree to use these services only in accordance withthese terms and conditions and your other legal obligations.We are not liable for, and you release and indemnify usagainst any liabilities, claims, losses or costs arising fromour acting in accordance with any communication thatwe receive by phone, fax or email about your accountor investments with us or arising from the use of FirstNetor FirstLink by you or any person using your OIN and PIN.

Use of telephone and fax

Security of phone and fax requestsW We have procedures in place to reduce the risk of fraud,

but we cannot guarantee that someone trying toimpersonate you will not contact us about your accountand change your details or make a withdrawal. We maydispute liability for any losses which happen because wehave acted on phone or fax instructions that you have notauthorised but which appear to be authorised by you.

W All our customers are automatically given access tocommunicate with us by phone and fax. You need to tell usif you do not want us to accept any future instructions overthe phone or by fax by sending us an original signed request.

W We will block access to your account for phone and faxinstructions by the second business day after we receivethat request. Until this happens, these terms and conditionsfor phone and fax will still apply to your account.

W If you are a joint account holder, any of the joint accountholders may give us instructions by phone about the account.

W If the account holder is a company, any director of the companymay give us instructions by phone about the account.

Information received by phone or faxW If the details that we receive in a fax or over the phone do

not match the details that we have previously received forthe account, then we will not proceed with the request.

W We also will not process a request if the instructionswe receive are incomplete or appear to contain errors.This is to ensure that the transaction we perform is exactlywhat you were requesting.

W Fax machines may be convenient, but they are not alwaysreliable. If a query arises over what information we receivedby fax, we will not accept a fax transmission report fromyour machine as evidence that we received the fax.This is because, although your fax machine may haveconfirmed that the fax was sent, we may not havereceived the complete fax at our end.

W We can change or cancel these terms for phone and faxat any time as long as we give you 14 days written notice.

W Apart from these terms and conditions we may have otherrequirements for receiving instructions from time to time.You will be notified if this affects you or your request.

Use of FirstNet and FirstLink

OIN and PINW You must keep your OIN and PIN secret. You should not

disclose them to anyone or record them in a way whichcould affect their confidentiality.

W If you give someone else permission to use your OIN and PIN,you are responsible for any transactions they perform orchanges they make to your account information, or anythingthat happens because you gave them that permission.

W Anyone can access FirstNet or FirstLink if they have a valid OINand PIN. This means that if someone else has your OIN andPIN, they can access your account information and maketransactions, even if you have not authorised them to useyour OIN and PIN. We are not responsible to you and will notpay for any losses that may happen because we acted on anyinstructions received through FirstNet or FirstLink which usedyour OIN and PIN, whether or not these instructions wereauthorised by you.

W You must tell us immediately if you think that someone hasaccessed your account without your permission or if you thinkthat someone else may know your OIN and PIN. We will stopaccess to the account and issue a new PIN.

Access to FirstNet and FirstLinkW You can tell us if you want to permanently stop using

FirstNet and FirstLink by sending us an original signed request.We will block FirstNet and FirstLink access to your accounton the second business day after we receive that request.Until this happens, these terms and conditions will still applyto your account.


W We can stop or restrict your access at any time and forany reason.

W We do not guarantee or warrant that the use of FirstNetor FirstLink will be uninterrupted or error free. We also donot warrant that it is suitable for any particular purposeor has any performance, functionality or security features,except what we are legally obliged to provide.

W We will take all reasonable steps to make sure that theinformation that you access through FirstNet or FirstLinkis up-to-date and correct.

W When you are joint account holders, and one of you registersfor FirstNet transaction access, both of you are taken to haveagreed to any transactions on your account through FirstNet.

Transacting on FirstNet and FirstLinkW ‘Transaction access’ means the ability to review, modify or

update your contact details and accounts online, apply for,withdraw and switch units between funds or options andset up automatic facilities or features.

W You agree to use this service in accordance with these termsand conditions.

W We will only act on transaction requests that are complete,received in full and do not appear to contain any error.

W For FirstNet, a transaction reference onscreen is evidencethat the communication has been completed.

W We are not liable for any losses or delays that occur becausewe did not receive an instruction.

W If there are any government fees and charges incurred byus in relation to your use of FirstNet or FirstLink, we can debitthese from your account.

W You must only use FirstNet to obtain information that youare properly authorised to access and to use this informationonly for lawful purposes.

W We can change these terms and conditions at any timeby placing the changes on our website. We may ask youto read and accept any amended terms and conditions soyou can keep using FirstNet or FirstLink. But, unless otherwiserequired by law, once we have placed them on the websitethey are binding on you, even if you have not read them.We recommend that you check these terms and conditionson a regular basis. These terms and conditions includeany instructions for using these services provided to youor placed on our website from time to time.

Direct debit customer service agreement

Our commitment to youW We will send you regular transaction statements in addition

to the initial confirmation of your drawings.

W Where the due date for a drawing falls on a non-business day,we will draw the amount on the next business day.

W We will provide written notice of any proposed changes to yourdrawing arrangement, providing no less than 14 days notice.

W We may terminate your direct debit arrangement if drawingsare returned unpaid, or if debit is unsuccessful three timesin any 12-month period.

W We will keep all information provided by you, and detailsof your nominated account at the financial institution,private and confidential.

W We will investigate and deal promptly with any queries,claims or complaints regarding debits, providing a responsewithin 20 business days.

Your commitment to usW It is your responsibility to check with your financial institution

prior to completing the direct debit request, that directdebiting is available on that account.

W It is your responsibility to ensure that the authorisation onthe direct debit request is identical to the account signinginstruction held by the financial institution of thenominated account.

W It is your responsibility to ensure at all times that sufficientfunds are available in the nominated account to meeta drawing on the due date for payment.

W It is your responsibility to advise us if the account nominatedby you to receive the drawings is altered, transferred or closed.

W It is your responsibility to arrange with us a suitable alternatepayment method if the drawing arrangements are stoppedeither by you or the nominated financial institution.

W It is your responsibility to meet any charges resulting from theuse of the direct debit system. This may include fees chargedby us as a result of drawings returned unpaid.

Your rightsW You may request to defer or alter the agreed drawing

schedule, by giving written notice to us. Such notice shouldbe received by us at least five business days prior to thedue date for the next drawing.

W You may cancel the direct debit arrangement at any time bygiving written notice to us. Such notice should be receivedby us at least five business days prior to the due date for thenext drawing. Your nominated financial institution may alsoaccept a request to cancel your direct debit arrangementwith us.

W All transaction disputes, queries, and claims should be raiseddirectly with us. We will provide a verbal or written responsewithin 20 business days from the date of the notice. If theclaim/dispute is successful, we will reimburse you by wayof cheque or electronic credit to your nominated account.

Please phone Colonial First State Investor Serviceson 13 13 36 with any enquiries or send an emailto [email protected].

5

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Glossary

Arbitrage – taking advantage of different prices of relatedsecurities. For example, buying a security at a low price andshort selling the related security at a higher price to capturethe pricing difference.

Derivatives – a security, such as an option or futures contract,whose value depends on the performance of an underlying asset,index or event. Derivatives generally allow investors to gaina large amount of exposure to the underlying asset througha small outlay. Hence, the use of derivatives generally gives riseto leverage.

Distressed securities – securities of companies (shares andbonds), where the company is experiencing financial difficultyand is in the process of restructuring.

Directional trading – a general term referring to the strategyused by investors who adopt positions, either long or short,in the belief that they are able to accurately predict themovement of price in a security.

Fundamental analysis – involves the analysis of fundamentalsof either a company or a market to identify an investmentopportunity. An example of a fundamental could be the priceto earnings (PE) ratio of a stock or a market.

Futures contract – an obligation to buy or sell an assetat a specified price at a set time in the future.

Hedging – taking an offsetting position to reduce the riskof adverse price movements in an asset.

Leverage – borrowing to increase exposure to an asset. This canbe achieved through the use of options, futures, margin and otherfinancial instruments.

Long position – a position that profits from an increase in thevalue of the security held. A traditional investor adopts longpositions by buying securities.

Option – an agreement which gives the buyer the right to buyor sell a security at a set price and within a stated period of time.

Quantitative analysis – involves the heavy use of statisticsto identify investment opportunities.

Short position – a position that profits from a decrease in thevalue of the security. This is achieved by short selling.

Short selling – selling a security you do not own. Generally,the investor will borrow the security to sell in the market.

Systematic analysis – undertaken primarily by computersystems and hence very consistent in process.

We have included some common terms used in hedge fund managementbelow to help you build your understanding of this product. For moreinformation, please consult your financial adviser.

2525

7

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ion

Application form checklist

Global Diversified Strategies Fund application form (refer to page 27)To ensure that we are able to process your application quickly and efficiently, please check that you have completed thefollowing steps:

Send your completed application form and cheque (if required) to:Colonial First State, Reply Paid 27, Sydney NSW 2001

Step 1 Your personal details – Complete sections 1-3

Provide your contact detailsContact details

Provide your full name and Tax File Number (TFN) or exemption (refer to alternate codes in bold below):

E Exemption – please write the full name of the benefit that you receive (eg ‘Age Pension’)N Non-resident – please write the full name of your country of residenceO Not for profit organisations – who are not required to lodge a TFND No TFN or do not wish to quote a TFN – please refer to page 20 for further information

Investor details

Nominate to open a new account or invest additional funds in an existing accountInvestment details

Step 2 Your investment details – Complete sections 4-7

Provide your bank account details (if applicable)Bank account details

Complete your investment allocation details including the dollar amount to be attributed to the FundInvestment allocation

Indicate your method of payment. If investing by direct debit please complete your bank details in section 7.If investing via cheque please cross your cheque ‘Not Negotiable’ and make payable to:‘Colonial First State Global Diversified Strategies Fund, <Investor name>’

Payment details

Nominate your distribution payment instructionsIncome distribution

Step 3 Managing your investment – Complete sections 8-11

Sign the declaration. If you are signing under a Power of Attorney, please comply with the following:W Attach a certified copy of the Power of Attorney documentW Each page of the Power of Attorney document must be certified by a Justice of the Peace, Notary Public or SolicitorW Should the Power of Attorney document NOT contain a sample of the Attorney’s signature, please also supply

a certified copy of the identification documents for the Attorney, containing a sample of their signature,eg Driver’s Licence, Passport, etc.

Declaration and signature

You only need to complete this section if you have agreed with your financial adviser to have an ongoing adviserservice fee deducted from your investment

Adviser service fee

Provide details of how you would like to receive information from usCommunication preferences

Do not cross the box if you want online accessOnline services

Additional information on setting up alternative account types

Accounts on behalf of a minorWe do not accept any investments in the name of a minor (under 18 years of age), however, the investment may be held ‘as designation’for the minor. In order to set up an account as designation for a minor, please insert the minor’s name in the ‘Account designation’ fieldunder section 2. It is important that you also complete Investor 1 and/or Investor 2 as owners of the account and provide the TFN(s)of the Investor(s) rather than the minor.

Superannuation fund or trustPlease insert the entity’s name under ‘Superannuation fund/trust’. We will also require information of the trustees. To supply this trusteeinformation, please complete Investor 1 and/or Investor 2 if trustees are individuals. If the trustee is a company please complete the‘Company name’ field.

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27PLEASE DO NOT STAPLE

Colonial First State – Global Diversified StrategiesFund Application Form

Units in the Colonial First State Global Diversified Strategies Fund will only be issued on receipt of this application form, issued togetherwith the PDS for the Fund dated 1 January 2008. Please phone Colonial First State Investor Services on 13 13 36 with any enquiries.

Please complete this form using BLACK INK and print wellwithin the boxes in CAPITAL LETTERS. Mark appropriate answerboxes with a cross like the following . Start at the left of eachanswer space and leave a gap between words.

X OFFICE USE ONLY

Type of investment

New nx Go to section 2 and complete all sections Additional nx Give details of your existing account below

Existing account name nnnnnnnnnnnnnnnnnnnnnnnnnnnnnExisting account number nnnnnnnnnIf any of your details have changed please complete them below, otherwise go to section 5.

2. INVESTOR DETAILS

By providing your email address, you agree that we may use this address to provide you with information about your investment (such astransaction confirmations, statements, reports and other material). From time to time we may still need to send you letters in the post.

INVESTOR 2 (Joint accounts)

Title

Mr n Mrs n Miss n Ms n Other nnnnnnnGiven name(s)

nnnnnnnnnnnnnnnnnnSurname

nnnnnnnnnnnnnnnnnnDate of birth

nn / nn / nnnn Male n Female nTax File Number or reason for exemption (refer to page 25)

nnn nnn nnn or Code nnnnnnnnnnnnnnnnnnnIf a foreign resident for tax purposes, specify country of residence

nnnnnnnnnnnnnnnnnnEmail address for investor 2

nnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnn

INVESTOR 1 (Individual accounts)

Title



nnnnnnnnnnnnnnnnnnDate of birth

nn / nn / nnnn Male n Female nTax File Number or reason for exemption (refer to page 25)

nnn nnn nnn or Code nnnnnnnnnnnnnnnnnnnIf a foreign resident for tax purposes, specify country of residence

nnnnnnnnnnnnnnnnnnEmail address for investor 1


690

1. INVESTMENT DETAILS

27

28

2. INVESTOR DETAILS (CONTINUED)

COMPANY/PARTNERSHIP/SUPERANNUATION FUND

Name of company or partnership

nnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnName of superannuation fund/trust

nnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnName of contact person

nnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnABN or ARBN Tax File Number

nnnnnnnnnnnnnnnnnn nnn nnn nnn or Code nEmail

nnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnBy providing your email address, you agree that we may use this address to provide you with information about your investment (such astransaction confirmations, statements, reports and other material). From time to time we may still need to send you letters in the post.

ACCOUNT DESIGNATION

Only use to indicate a minor’s name for an account designation (refer to page 25)

nnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnn3. CONTACT DETAILS

Postal address

nnnn nnnn nnnn nnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnn nnn nnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnn

Work phone number Home phone number Fax number Mobile phone number

nn nnnnnnnn nn nnnnnnnn nn nnnnnnnn nnnnnnnnnn

How would you like your income distributions to be paid?

Reinvested in the fund nCredit to my/our bank account nx Also complete your bank account details in section 7

5. PAYMENT DETAILS

How will this investment be made? Note: cash is not accepted.

Cheque nx Make cheque payable to ‘Colonial First State Global Diversified Strategies Fund, <Investor name>’

Direct debit nx Make sure you also complete your bank account details in section 7. Please ensure cleared funds are available

BPAY nx Please see page 14 for details on how to make a BPAY payment to your account

Direct credit nx Please see page 14 for details on how to make a Direct Credit payment to your account

4. INCOME DISTRIBUTION

A nomination in this section overrides any previous nominations. Distributions will be reinvested unless otherwise stated. Cross (X) one box only.

Country

PostcodeStateSuburb

StreetnameP.O. BoxStreet

numberUnitnumber

29

6. INVESTMENT ALLOCATION

Minimum initial investment is $5,000

nn,nnn,nnn nnOR

Minimum initial investment with regular investment plan $1,000

nn,nnn,nnn nnRegular investment plan $100 minimum per month

nn,nnn,nnn nn

Cross (X) this box if you would like to increase your regular investment plan amount in line with inflation (CPI) each year. n

Please cross (X) this box if you do not wish to have online access to your investment. n

Communication type Preferences

iQ Magazine n Email n Mail

Promotional communications n Email n Mail n Opt out

Statements/confirmations n Email n Mail

These preferences will be applied to all your accounts (including any joint accounts). Cross (X) here if you do not wish this to occur. x n

9. COMMUNICATION PREFERENCES

If you have provided your email address in section 2, we will use this address to provide you with information about your investments (such astransaction confirmations, statements and other materials). Please refer to page 16 for further details. If you would prefer to receive yourinformation in another way, please advise below.

8. ONLINE SERVICES

Please note that you will be automatically granted access to manage your investment over the internet through FirstNet and by telephonethrough FirstLink. Online access is provided under the terms and conditions provided on page 22.

BANK ACCOUNT 2

Only complete your account details in this section if you would like yourregular investment plan debited from a different bank account.

Name of Australian financial institution

nnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnBranch name

nnnnnnnnnnnnnnnnnnBranch number (BSB) Account number

nnn – nnn nnnnnnnnnnAccount name


BANK ACCOUNT 1

Please provide your account details in this section, if you haverequested us to debit or credit your bank account.Name of Australian financial institution

nnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnBranch name

nnnnnnnnnnnnnnnnnnBranch number (BSB) Account number



7. BANK ACCOUNT DETAILS

You can only nominate a bank account that is held in your name(s). If you wish to nominate a bank account that is held in different name(s),you will have to complete the separate Direct Debit Authority form (included in this PDS). By providing your bank account details in this section youauthorise Colonial First State to use these details for all future transaction requests that you nominate.

.$

.$

.$

29

30

Adviser service fee including GST

per annum

11. DECLARATION AND SIGNATURE

I/We declare and agree that:

W I/we have read this PDS to which this application applies and have received and accepted the offer in it in AustraliaW my/our application is true and correctW I am/we are bound by any terms and conditions contained in this PDS and the provisions of the Constitution of the Fund that I am/we are

invested in as amended from time to timeW I/we have legal power to investW my/our adviser will receive the payments detailed in the PDS and this application form including via redemption of units from my/our investmentW if I/we have received this PDS from the internet or other electronic means that I/we received it personally or a printout of it, accompanied

by or attached to this application formW if this is a joint application, each of us agrees, unless otherwise indicated on this application, our investment is as joint tenants. Each of us

is able to operate the account and bind the other(s) to any transaction including investments, switches or withdrawals by any availablemethod

W this application is not because of an unsolicited meeting with or telephone call from another personW future investments will be made in line with the most recent switch or investment transaction (excluding regular investment plan) unless

I/we instruct you otherwiseW the contact details provided are true and correct and I/we will advise you of any changeW if investing as trustee, on behalf of a superannuation fund or trust I/we confirm that I am/we are acting in accordance with my/our designated

powers and authority under the trust deed. In the case of superannuation funds, I/we also confirm that it is a complying fund under theSuperannuation Industry (Supervision) Act

W I am/we are not a ‘U.S. Person’ as such term is defined under Regulation S of the U.S. Securities Act of 1933 as adopted by the U.S. Securitiesand Exchange Commission

W I am/we are not a U.S. employee benefit plan regulated by the U.S. Employee Retirement Income Security Act of 1974 and I/we will notifyyou if my/our status changes

W I/we represent that the monies invested in the Fund were not directly or indirectly derived from activities that may contravene federal,state and international laws and regulations, including anti-money laundering laws.

I/We acknowledge that:W investments in the Fund are not investments, deposits or other liabilities of the Commonwealth Bank of Australia or its subsidiaries

and are subject to investment and other risks, including possible delays in repayment and the loss of income and principal investedW neither Colonial First State nor Commonwealth Bank of Australia or its subsidiaries guarantee the repayment of capital or the performance

of the Fund or any particular rate of return from the FundW due to applicable money laundering requirements, the Fund may require further identification of the investor before applications can

be processed.

Prior to its completion and signing, this application must not be handed to any person unless accompanied by the PDS. Colonial First StateGlobal Diversified Strategies Fund is offered by Colonial First State Investments Limited ABN 98 002 348 352 AFS Licence 232468.

Joint applicants must both sign.

Signature of investor 1 or company officer Signature of investor 2 or company officer

Print name Print name

nnnnnnnnnnnnnnnnnn nnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnn nnnnnnnnnnnnnnnnnnDate Date

nn / nn / nnnn nn / nn / nnnnW If this application is signed under Power of Attorney, the Attorney declares that he/she has not received notice of revocation of that power

(a certified copy of the Power of Attorney should be submitted with this application unless we have already sighted it). W Sole signatories signing on behalf of a company confirm that they are signing as sole director and sole secretary of the company.

Please send the completed form to:Colonial First State

Reply Paid 27, Sydney NSW 2001

88

%.

10. ADVISER SERVICE FEE

Complete this section if you have agreed with your financial adviser to have an additional service fee deducted. Refer to page 12 for details.

30

31

ADVISER USE ONLY

APPLICATION FEE

Please indicate the total application fee percentage to be charged (refer to page 10).

If you do not nominate a fee, the standard fee will be charged. If nominating a fee different from the standard fee, please indicate a feeexcluding GST.

Maximum n Minimum n Other n Give details below

Fee to be charged

to the investor

Initial investment n.nn%

Additional investment n.nn%

Regular investment plan n.nn%

Please note: The fee above is the fee which will be deducted from your client’s investment. The remuneration paid to you includes thegross GST and will be 107.25% of this amount. For example: 4% – fee charged to the investor (including the net effect of GST), 4.29% –your remuneration (including GST), 3.90% – your remuneration (excluding GST).

By providing your (adviser) details you certify that you are appropriately authorised to provide financial services in relation to this product.

Additional comments/instructions

nnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnCOLONIAL FIRST STATE USE ONLY

Campaign code

nnnnnnnnnnn

Dealer/Adviser stamp (please use black ink only)Adviser name

nnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnPhone number Fax number

nn nnnnnnnn nn nnnnnnnnMobile phone number

nnnnnnnnnnDealer ID Adviser ID

nnnnnnnnnILCN ILAN

nnnnnnnnnnnnnnnnnILGN

nnnnnnn

31

20/20 INVESTMENT SERVICES

Head Office

0301 0105

998992

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3333PLEASE DO NOT STAPLE

Colonial First State – Global Diversified Strategies FundDirect Debit Authority Form

Please phone Colonial First State Investor Services on 13 13 36 with any enquiries.

Please complete this form using BLACK INK and print wellwithin the boxes in CAPITAL LETTERS. Mark appropriate answerboxes with a cross like the following . Start at the left of eachanswer space and leave a gap between words.

X

All account holders must complete sections 1 and 2. If a third partyis authorising the account holder(s) (shown in section 1) to debittheir bank account, the third party must complete section 2 andsign below.

Please provide your name(s) and/or account number below:

Account number nnnnnnnnn

COMPANY/PARTNERSHIP

Name of company or partnership

nnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnn2. GLOBAL DIVERSIFIED STRATEGIES FUND ACCOUNT HOLDER(S) OR THIRD PARTY

I/We authorise Colonial First State Investments Limited (011802), until further notice in writing to arrange for funds to be debited from my/ouraccount, at the financial institution identified as described in the schedule below, any amounts which Colonial First State may debit or chargeme/us through the Direct Debit System.

THE SCHEDULE (ACCOUNT TO BE DEBITED)

Name of Australian financial institution

nnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnBranch name or address

nnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnBranch number (BSB) Account number


nnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnn

INVESTOR 2 (Joint accounts)

Title



nnnnnnnnnnnnnnnnnnContact phone number

nn nnnnnnnnn

INVESTOR 1 (Individual accounts)

Title



nnnnnnnnnnnnnnnnnnContact phone number

nn nnnnnnnnn

690

1. GLOBAL DIVERSIFIED STRATEGIES FUND ACCOUNT HOLDER(S)

3434

2. GLOBAL DIVERSIFIED STRATEGIES FUND ACCOUNT HOLDER(S) OR THIRD PARTY (CONTINUED)

DIRECT DEBIT REQUEST AUTHORISATION

W I/We have read the ‘Direct Debit Customer Service Agreement’ provided in this PDS and agree with its terms and conditions.

W I/We request this arrangement to remain in force in accordance with details set out in the schedule and in compliance with the‘Direct Debit Customer Service Agreement’.

Signature of bank account holder or company officer Signature of bank account holder

Print name Print name

nnnnnnnnnnnnnnnnnn nnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnn nnnnnnnnnnnnnnnnnnDate Date

nn / nn / nnnn nn / nn / nnnnPlease send the completed form to:

Colonial First StateReply Paid 27, Sydney NSW 2001

88

35

FSG

Financial Services GuideDated 1 January 2008

Who are we?Colonial First State is one of Australia’s leading wealth managementproviders and a part of the Commonwealth Bank Group.

Any financial services offered will be provided by a representativeof Colonial First State. Colonial First State is licensed under theCorporations Act to provide these services to you. Our AustralianFinancial Services Licence Number is 232468.

We are also licensed to be the trustee of superannuation funds.Our RSE Licence Number is L0002196.

We do not act as a representative of any other licensee in relationto the services we provide you.

To contact us you can:

W call Investor Services on 13 13 36

W visit our website at colonialfirststate.com.au

W write to us at Level 29, 52 Martin Place, Sydney NSW 2000

W email us at [email protected].

What financial services and productsdo we offer?Colonial First State is authorised to offer a rangeof financial services including:

W dealing in financial products

W giving advice on financial products

W operating registered managed investment schemes

W being the trustee of superannuation funds.

We also offer a range of managed investment, superannuationand retirement products. Some of our superannuation productsoffer life insurance benefits. We can help you to apply for theseproducts and can also give you financial advice in relation to ourproducts, or products offered by other financial institutions,including other members of the Commonwealth Bank Group.

We do not provide financial planning services and onlygive personal financial product advice in limited situations.Personal financial product advice is not provided throughour website or Investor Services.

How can you transact with us?You can give us instructions by telephone, mail, fax or viaour website. Any dealings with us by telephone or fax willbe governed by our standard ‘telephone and fax terms andconditions’. These terms and conditions are contained in thePDS for each product and are also available on the websiteat colonialfirststate.com.au.

There are also terms and conditions of use for our websiteand FirstNet, our secure internet service. These terms andconditions can be obtained on the website.

How are we remunerated for the serviceswe provide?If you invest in a product we offer, Colonial First State will receiveremuneration in relation to your investment in that product.Where we advise you about products offered by another companyof the Commonwealth Bank Group and you acquire that product,then that company will receive remuneration. This remunerationmay include contribution fees and management costs (whichinclude transaction, ongoing and, if applicable, any borrowingcosts). In some situations withdrawal fees, account fees andtransaction fees may apply. The remuneration we will receivefor the products we offer is set out in the PDS for the particularproduct. The remuneration we will receive for this product is setout in the ‘Fees and other costs’ section of the PDS on pages10 to 12 of this combined document.

Colonial First State does not receive any fees, nor do we chargeyou additional fees for providing financial product advice.

This Financial Services Guide (FSG) is an important documentwhich we are required to give to you under the requirementsof our Australian Financial Services Licence. It provides youwith information about Colonial First State Investments Limited(‘Colonial First State’, ‘we’, ‘our’ or ‘us’) to help you decidewhether to use the financial services we provide. This FSGoutlines the types of services and products we can offer toyou. It also explains how we (and other relevant persons)are remunerated for these services and includes details ofour internal and external complaints handling proceduresand how you can access them.

To invest in any of our financial products you must completethe application form attached to the relevant ProductDisclosure Statement (PDS). The PDS contains informationabout the particular product and will assist you in makingan informed decision about that product. The PDS for thisproduct, dated 1 January 2008, is contained on pages 1 to 34of this combined document.

If we provide you with personal financial product advicerather than general financial product advice we will giveyou a Statement of Advice (SOA). Personal financial productadvice is advice that takes into account one or more of yourobjectives, financial situation and needs. The SOA will containthe advice, the basis on which it is given and informationabout fees, commissions and any associations whichmay have influenced the advice.

36

Financial Services Guide (continued)

What commissions, fees or other benefitsare received?Employees of Colonial First State who give you advice do notreceive specific payments or commissions for the giving of thatadvice. These employees and our directors receive salaries,bonuses and other benefits from us. Bonus payments andother benefits are discretionary, and based on achievementof pre-determined objectives.

You may receive advice in relation to the products we offerfrom financial advisers that do not work for Colonial First State.These advisers may receive remuneration from us. The adviser’sremuneration is included in the fees you pay when investingin our products.

The amount of this remuneration is set out in the PDS forthe particular product. The remuneration we pay advisers inrelation to this product is set out in the ‘Fees and other costs’section of the PDS on pages 10 to 12 of this combined document.Your adviser is also required to set out the remuneration andcommissions they receive in the SOA which they must give to you.Some of these advisers may be representatives of other licenseesin the Commonwealth Bank Group.

We do not pay commissions or provide other benefits to thirdparties for referring customers to us.

How is your personal information dealt with?Please refer to page 20 of this combined document (the PDSdated 1 January 2008) for details on how your personalinformation is dealt with.

What should you do if you have a complaint?Please refer to page 21 of this combined document (the PDSdated 1 January 2008) for details about our complaintshandling procedures.

Interests of the directors of the responsible entityDirectors may receive a salary as employees of the Commonwealth Bank Group and from time to time may hold interests in shares in the Commonwealth Bank of Australia or investments in the fund.

This PDS has been authorised by our directors.

About Colonial First StateColonial First State is part of Australia’s leading wealth management group, responsible for managing over $130 billion globally. Colonial First State has developed an enviable reputation for quality performance, great service and industry-leading products.

Since we began operating in 1988, we have helped Australians and their families to manage their superannuation, retirement incomes and managed funds.

A wide range of products Our funds span the investment market – Australian and global shares, property, fixed interest and mortgage funds. With our wide range of funds, you can invest in a single sector of the market or take a broader market approach to achieve a specific outcome.

A focus on serviceService is the heart of our business – that’s why we don’t outsource any of our customer service expertise. When you call us, you will be answered quickly by a qualified person who has the training and the tools to deal with your question on the spot.

Your investment partnerWe never lose sight of the fact that we are responsible for other people’s money. We’ve made it simple for you to keep track of your investments through a single point of contact for all transactions and consolidated reporting. You can access all your investment information from the one phone call or through our website, FirstNet.

Contact usPlease mail completed forms to:Colonial First StateReply Paid 27Sydney NSW 2001

EnquiriesInvestor Services: 13 13 36Website: colonialfirststate.com.auEmail: [email protected]

© Colonial First State 2008

10384/FS457/0108

Colonial First State Investments Limited ABN 98 002 348 352AFS Licence 232468

Colonial First State offices:

Sydney(Head Office)Level 2952 Martin PlaceSydney NSW 2000Telephone: (02) 9303 3000Facsimile: (02) 9303 3200

MelbourneLevel 1385 Bourke StreetMelbourne VIC 3000Telephone: (03) 8628 5600Facsimile: (03) 8628 5608

BrisbaneLevel 5240 Queen StreetBrisbane QLD 4000Telephone: (07) 3328 5800Facsimile: (07) 3328 5858

PerthLevel 455 St Georges TerracePerth WA 6000Telephone: (08) 9218 5350Facsimile: (08) 9325 5723

AdelaideLevel 4100 King William StreetAdelaide SA 5000Telephone: (08) 8418 5700Facsimile: (08) 8418 5720

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