Corporations Regulations 2001

SCHEDULE 10E - FORM AND CONTENT OF PRODUCT DISCLOSURE STATEMENT - SIMPLE MANAGED INVESTMENT SCHEME  

(regulation 7.9.11W )

Modifying legislative instruments

7   Contents of section 5 (How we invest your money)  

7(1)    
Section 5 of the Product Disclosure Statement must describe, in the form of a summary, the investment options offered by the simple managed investment scheme.

7(2)    
Section 5 must state, in the form of a warning, that the person should consider:

(a) the likely investment return; and

(b) the risk; and

(c) the person ' s investment timeframe;

when choosing an option in which to invest.

New simple managed investment scheme

7(3)    

If the simple managed investment scheme has never previously been offered to investors, and does not offer any investment option mentioned in subclauses (4) and (5) about which section 5 can give information, section 5 must give the following information for the investment option that the responsible entity reasonably believes has the least volatile underlying assets (whether or not section 5 gives that information for any other investment option):

(a) the name of the option and a short description of it, including the type of investors for whom it is intended to be suitable;

(b) a list of the asset classes in which the option invests, setting out the strategic asset allocation of the asset classes in the form of a range or otherwise;

(c) a description of the investment return objective of the option;

(d) the minimum suggested time frame for holding the investment;

(e) a description, in the form of a summary, of the risk level of the option.

Balanced investment option

7(4)    

If the simple managed investment scheme has a balanced investment option (within the meaning given by item 101 of Schedule 10), section 5 must give the following information for the balanced investment option (whether or not section 5 gives that information for any other investment option):

(a) the name of the option and a short description of it, including the type of investors for whom it is intended to be suitable;

(b) a list of the asset classes in which the option invests, setting out the strategic asset allocation of the asset classes in the form of a range or otherwise;

(c) a description of the investment return objective of the option;

(d) the minimum suggested time frame for holding the investment;

(e) a description, in the form of a summary, of the risk level of the option.

No balanced investment option

7(5)    

If the simple managed investment scheme does not have a balanced investment option (within the meaning given by item 101 of Schedule 10), section 5 must give the following information for the investment option under which the entity has the most funds invested (whether or not section 5 gives that information for any other investment option):

(a) the name of the option and a short description of it, including the type of investors for whom it is intended to be suitable;

(b) a list of the asset classes in which the option invests, setting out the strategic asset allocation of the asset classes in the form of a range or otherwise;

(c) a description of the investment return objective of the option;

(d) the minimum suggested time frame for holding the investment;

(e) a description, in the form of a summary, of the risk level of the option.

7(6)    
Section 5:

(a) must make provision for each investment option which is not presented in section 5 in accordance with subclause (3), (4) or (5); and

(b) may make provision for the option by applying, adopting or incorporating matter in a document that:

(i) includes the information mentioned in subclause (3), (4) or (5); and

(ii) presents it in the way mentioned in the subclause.

7(7)    
The responsible entity:

(a) must provide information about how a member may switch the member ' s investments; and

(b) must provide information about:

(i) whether the simple managed investment scheme ' s investment options may be changed; and

(ii) if so, how the options may be changed; and

(c) must describe, in the form of a summary, the extent to which labour standards or environmental, social or ethical considerations are taken into account in the selection, retention or realisation of investments relating to the simple managed investment scheme; and

(d) may provide the information in paragraphs (a) to (c), and any additional information about investment options, by applying, adopting or incorporating a matter in writing.