T. Rowe Price Funds Reference Guide Issue Date 26 September 2017
About this Reference Guide
This Reference Guide has been prepared and issued by Equity Trustees Limited (“Equity Trustees”). This Reference Guide forms part of the product disclosure statements (each referred to as the “PDS” and collectively the “PDSs”) for each of the following Funds:
1. Investing in T. Rowe Price Funds 2. Managing your investment
a) T. Rowe Price Asia ex-Japan Fund;
3. Withdrawing your investment
b) T. Rowe Price Australian Equity Fund;
4. Additional information on fees and costs
T. Rowe Price Dynamic Global Bond Fund;
d) T. Rowe Price Global Equity Fund; and
5. Other important information
e) T. Rowe Price Global Equity (Hedged) Fund;
The PDSs and this Reference Guide are available on www.eqt.com.au/insto or you may request a copy by calling Equity Trustees on +613 8623 5000.
Updated Information Information in the PDSs and this Reference Guide is subject to change. Before making an investment in the Funds, you should ensure that you read the relevant PDS and Reference Guide current as at the day when you acquire the product.
Investment Manager T. Rowe Price International Ltd ABN 84 104 852 191 Level 50, Governor Phillip Tower 1 Farrer Place, Suite 50B Sydney NSW 2000 Ph: +612 8667 5707 Fax: +612 8667 5701 Web: www.troweprice.com.au
Administrator JPMorgan Chase Bank, National Association ABN 43 074 112 011, AFSL 238367 C/ - Link Market Services Limited PO Box 3721 Rhodes NSW 2138 Fax: +612 9287 0375 Web: www.jpmorgan.com
Responsible Entity Equity Trustees Limited ABN 46 004 031 298, AFSL 240975 GPO Box 2307 Melbourne VIC 3001 Ph: +613 8623 5000 Web: www.eqt.com.au/insto
T. Rowe Price Funds Reference Guide
1. Investing in T. Rowe Price Funds
3. Withdrawing your investment
Application cut-off times
Withdrawal cut-off times
If we receive a correctly completed Application Form, identification documents (if applicable) and cleared application money:
If we receive a withdrawal request:
before or at 1pm (Sydney time) on a Business Day and your application for units is accepted, you will receive the Application Price calculated for that Business Day; or after 1pm (Sydney time) on a Business Day and your application for units is accepted you will receive the Application Price calculated for the next Business Day.
We will only start processing an application if: • • •
we consider that you have correctly completed the Application Form; you have provided us with the relevant identification documents if required; and we have received the application money (in cleared funds) stated in your Application Form.
before 1pm (Sydney time) on a Business Day and your withdrawal request is accepted, you will receive the Withdrawal Price calculated for that Business Day; or on or after 1pm (Sydney time) on a Business Day and your withdrawal request is accepted, you will receive the Withdrawal Price calculated for the next Business Day.
We reserve the right to accept or reject withdrawal requests in whole or in part at our discretion. We have the discretion to delay processing withdrawal requests where we believe this to be in the best interest of the Fund’s investors. Please see the relevant PDS for information regarding how to request a withdrawal.
We reserve the right to accept or reject applications in whole or in part at our discretion. We have the discretion to delay processing applications where we believe this to be in the best interest of the Fund’s investors.
Once we receive your withdrawal request, we may act on your instruction without further enquiry if the instruction bears your account number or investor details and your (apparent) signature(s), or your authorised signatory’s (apparent) signature(s).
Please see the relevant PDS for information regarding how to apply.
We may contact you to check your details before processing your withdrawal request. This may cause a delay in finalising payment of your withdrawal money. No interest is payable for any delay in finalising payment of your withdrawal money.
2. Managing your investment Authorised signatories You can appoint a person, partnership or company as your authorised signatory. To do so, please nominate them on the Application Form and have them sign the relevant sections. If a company is appointed, the powers extend to any director and officer of the company. If a partnership is appointed, the powers extend to all partners. Such appointments will only be cancelled or changed once we receive written instructions from you to do so. Once appointed, your authorised signatory has full access to operate your investment account for and on your behalf. This includes the following: • • • • •
making additional investments; requesting income distribution instructions to be changed; withdrawing all or part of your investment; changing bank account details; and enquiring and obtaining copies of the status of your investment.
If you do appoint an authorised signatory: • •
you are bound by their acts; you release, discharge and indemnify us from and against any losses, liabilities, actions, proceedings, account claims and demands arising from instructions received from your authorised signatory; and you agree that our acting on any instructions received from your authorised signatory shall amount to complete satisfaction of our obligations, even if these instructions were made without your knowledge or authority.
Reports Investors will be provided with the following reports: • • •
application and withdrawal confirmation statements; transaction statements; and (where applicable), distribution and tax statements
The annual audited financial accounts are available on Equity Trustees’ website.
T. Rowe Price Funds Reference Guide
We are not responsible or liable if you do not receive, or are late in receiving, any withdrawal money that is paid according to your instructions. When you are withdrawing, you should take note of the following: • •
Withdrawals will only be paid to the investor. We reserve the right to fully redeem your investment if, as a result of processing your request, your investment balance in the Fund falls below the minimum balance set out in the PDS. If we cannot satisfactorily identify you as the withdrawing investor, we may reject your withdrawal request or payment of your withdrawal proceeds will be delayed. We are not responsible for any loss you consequently suffer. As an investor who is withdrawing, you agree that any payment made according to instructions received by post, courier, email or fax, shall be a complete satisfaction of our obligations, despite any fact or circumstances such as the payment being made without your knowledge or authority. You agree that if the payment is made according to these terms you, and any person claiming on your behalf, shall have no claim against us with regards to such payment.
Withdrawal restrictions Under the Corporations Act, you do not have a right to withdraw from the Fund if the Fund is illiquid. In such circumstances, you will only be able to withdraw your investment if Equity Trustees makes a withdrawal offer in accordance with the Corporations Act. Equity Trustees is not obliged to make such offers. The Fund will be deemed liquid if at least 80% of its assets are liquid assets (generally cash and marketable securities). In addition, should Equity Trustees be unable to realise sufficient assets to meet withdrawal payments, it may suspend the calculation of the NAV and withhold withdrawal proceeds.
4. Additional information on fees and costs Indirect Costs The management cost figure disclosed in the table of fees and costs in section 6 of the PDS incorporates the indirect costs incurred in connection with managing the underlying investment assets of the Fund based on estimates for the financial year ended 30 June 2017. These indirect costs are reflected in the unit price of your investment in the Fund and include any underlying (indirect) management costs and other indirect costs. The indirect costs may vary from year to year, including to the extent that they rely on estimates. These indirect costs may include: •
Indirect management costs (any underlying funds): Managers of underlying funds will typically charge management fees and these fees are deducted from the underlying funds and the impact is included as part of their unit price. To the extent such underlying funds are managed by an affiliate of the Investment Manager, we will typically offset these fees in the Fund to ensure they are not an additional cost to you. Indirect performance fees (any underlying funds): Managers in underlying funds may also receive performance fees and if they apply they will reduce the unit price of the underlying funds. These indirect performance fees will be an indirect cost to you. Other indirect costs: In managing the assets of the Fund, the Investment Manager may engage in trading activity in certain types of over-the-counter derivative financial products which are not primarily used for hedging purposes. Engaging in trade activity of these types of products may give rise to other indirect costs.
5. Other important information Reliance on Class Order The Investment Manager is exempt from the requirement to hold an Australian financial services licence under the Corporations Act in respect of the financial services it provides to Wholesale Clients under ASIC Class Order 03/1099. The Investment Manager is regulated by the UK Financial Conduct Authority under laws of the United Kingdom which differ from Australian laws.
The third parties that we may disclose your information to include, but are not limited to: • •
stockbrokers, financial advisers or adviser dealer groups, their service providers and/or any joint holder of an investment; those providing services for administering or managing the Fund, including the Investment Manager, Custodian and Administrator, auditors, or those that provide mailing or printing services; those where you have consented to the disclosure and as required by law; and regulatory bodies such as ASIC, ATO, APRA and AUSTRAC.
to request a copy.
The Constitution The Fund is governed by a Constitution that sets out the Fund’s operation (the “Constitution”). This Constitution, together with the Fund’s PDS, the Corporations Act and other laws, regulate our legal relationship with investors in the Fund. If you invest in the Fund, you agree to be bound by the terms of the Fund’s PDS and the Fund’s Constitution. You can request a copy of the Constitution free of charge from Equity Trustees. Please consider these documents before investing in the Fund. We may amend the Constitution from time to time in accordance with the provisions in the Constitution and the Corporations Act.
Attribution Managed Investment Trusts (“AMITs”) The Constitution allows, where separate classes of units are on issue in respect of the Fund, for income allocation to take into account any impact of the currency overlay that may be in place for the respective classes. The quantum of the distribution is sought to be determined on a standalone basis. Prior to the AMIT multi-class election being made (as described below), the Fund is treated as a single taxpayer. As any separate classes of units would not currently be treated as separate taxpayers, it is possible under the current taxation regime that the tax character of distributions made to a particular class may be impacted by transactions associated with another class. The Constitution provides a mechanism to seek to minimise this outcome. Insofar as possible, where separate classes of units are on issue, the Constitution seeks to quarantine the income associated with a particular class to that class. In May 2016, the Australian Federal Government enacted legislation establishing a new tax system for AMITs. Trusts that meet the eligibility criteria to be an AMIT may elect into the AMIT rules. Except for the T. Rowe Price Australian Equity Fund, an election into AMIT has been made in respect of the Fund and therefore the following will apply: Fair and reasonable attribution: Each year, the Fund’s determined trust components of assessable income, exempt income, non-assessable non-exempt income and tax offsets (i.e. credits) will be allocated to investors on a “fair and reasonable” attribution basis, rather than being allocated proportionally based on each investor’s present entitlement to the income of the Fund. Unders or overs adjustments: Where the Fund’s determined trust components for a year are revised in a subsequent year (e.g. due to actual amounts differing to the estimates of income, gains / losses or expenses), then unders and overs may arise. Unders and overs will generally be carried forward and adjusted in the year of discovery. T. Rowe Price Funds Reference Guide
Cost base adjustments: Where the distribution made is less than (or more than) certain components attributed to investors, then the cost base of an investor’s units may be increased (or decreased). Details of cost base adjustment will be included on an investor’s annual tax statement, referred to as an AMIT Member Annual Statement (“AMMA”). Large redemptions: In certain circumstances, gains may be attributed to a specific investor, for example, gains on disposal of assets to fund a large redemption being attributed to the redeeming investor. Multi-class AMITs: A choice is available to elect to treat separate classes of units as separate AMITs. Equity Trustees is intending that the AMIT multi-class election be made in respect of the Fund. Penalties: In certain circumstances (e.g. failure to comply with certain AMIT rules), specific penalties may be imposed. The new rules are intended to reduce complexity, increase certainty and reduce compliance costs for managed investment trusts and their investors.
Anti-Money Laundering and Counter Terrorism Financing (“AML/CTF”) Australia’s AML/CTF laws require Equity Trustees to adopt and maintain an AML/CTF Program. A fundamental part of the AML/CTF Program is that Equity Trustees knows certain information about investors in the Fund. To meet this legal requirement, we need to collect certain identification information and documentation (“KYC Documents”) from new investors. Existing investors may also be asked to provide KYC Documents as part of a re-identification process to comply with AML/CTF laws. Processing of applications will be delayed or refused if investors do not provide the applicable KYC Documents when requested. Under the AML/CTF laws, Equity Trustees is required to submit regulatory reports to AUSTRAC. This may include the disclosure of your personal information. Equity Trustees may not be able to tell you when this occurs. The Responsible Entity and Investment Manager shall not be liable for any loss you may suffer because of compliance with the AML/CTF laws.
Under FATCA, Australian financial institutions are required to collect and review their information to identify U.S. residents that invest in assets through non-U.S. entities. This information is reported to the Australian Taxation Office (“ATO”). The ATO may then pass that information onto the U.S. Internal Revenue Service. In order to comply with the FATCA obligations, we may request certain information from you. Failure to comply with FATCA obligations may result in the Fund, to the extent relevant, being subject to a 30% withholding tax on payment of U.S. income or gross proceeds from the sale of certain U.S. investments. If the Fund suffers any amount of FATCA withholding and is unable to obtain a refund for the amounts withheld, we will not be required to compensate unitholders for any such withholding and the effect of the amounts withheld will be reflected in the returns of the Fund.
Common Reporting Standard (“CRS”) The CRS is a standardised set of rules developed by the Organisation of Economic Co-operation and Development that requires certain financial institutions resident in a participating jurisdiction to document and identify reportable accounts and implement due diligence procedures. These financial institutions will also be required to report certain information on reportable accounts to their relevant local tax authorities. Australia signed the CRS Multilateral Competent Authority Agreement and has enacted provisions within the domestic tax legislation to implement CRS in Australia. Australian financial institutions need to document and identify reportable accounts, implement due diligence procedures and report certain information with respect to reportable accounts to the ATO. The ATO may then exchange this information with foreign tax authorities in the relevant signatory countries. In order to comply with the CRS obligations, we may request certain information from you. Unlike FATCA, there is no withholding tax that is applicable under CRS. However, penalties may apply for failing to comply with the CRS obligations.
6. Glossary Application Form The Application Form that accompanies the PDS.
You may be able to invest indirectly in the Fund via an IDPS by directing the IDPS Operator to acquire units on your behalf. If you do so, you will need to complete the relevant forms provided by the IDPS Operator. This will mean that you are an Indirect Investor in the Fund and not an investor or member of the Fund. Indirect Investors do not acquire the rights of an investor as such rights are acquired by the IDPS Operator who may exercise, or decline to exercise, these rights on your behalf.
Australian Securities and Investments Commission
Indirect Investors do not receive reports or statements from us and the IDPS Operator’s application and withdrawal conditions determine when you can direct the IDPS Operator to apply or redeem. Your rights as an Indirect Investor should be set out in the disclosure document issued by the IDPS Operator.
A day other than Saturday or Sunday on which banks are open for general banking business in Sydney
Information on underlying investments Information regarding the underlying investments of the Fund will be provided to an investor of the Fund on request, to the extent Equity Trustees is satisfied that such information is required to enable the investor to comply with its statutory reporting obligations. This information will be supplied within a reasonable timeframe having regard to these obligations.
Foreign Account Tax Compliance Act (“FATCA”) In April 2014, the Australian Government signed an intergovernmental agreement (“IGA”) with the United States of America (“U.S.”), which requires all Australian financial institutions to comply with the FATCA Act enacted by the U.S. in 2010. 4
T. Rowe Price Funds Reference Guide
ATO Australian Taxation Office
AUSTRAC Australian Transaction Reports and Analysis Centre
Corporations Act The Corporations Act 2001 and Corporations Regulations 2001 (Cth), as amended from time to time.
GST Goods and Services Tax.
IDPS Investor-Directed Portfolio Service or investor-directed portfolio-like managed investment scheme. An IDPS is generally the vehicle through which an investor purchases a range of underlying investment options from numerous investment managers.
IDPS Operator An entity responsible for operating an IDPS.
Indirect Investors Individuals who invest in the Fund through an IDPS.
Net Asset Value (NAV) The value of the assets of the Fund less the value of the liabilities of that Fund.
Retail Client Persons or entities defined as such under section 761G of the Corporations Act.
The Fund and TRP Funds Means each of the T. Rowe Price Asia ex-Japan Fund, T. Rowe Price Australian Equity Fund, T. Rowe Price Dynamic Global Bond Fund, T. Rowe Price Global Equity Fund and the T. Rowe Price Global Equity (Hedged) Fund, to which this Reference Guide relates. “A Fund” means one of the Funds.
US Person (i) A “United States person” as defined in the US Internal Revenue Code of 1986, as amended (the “Code”): (a) a citizen or resident of the United States; or (b) a partnership created or organized in the United States or under the laws of the United States or any state or the District of Columbia; or (c) a corporation created or organized in the United States or under the laws of the United States or any state or the District of Columbia; or (d) an estate (other than a “foreign estate,” as that term is defined by the Code); or (e) a trust, with respect to which (1) a court within the United States is able to exercise primary supervision over the administration of the trust and (2) one or more United States fiduciaries have the authority to control all substantial decisions of the trust. The Code defines a “foreign estate” as “an estate the income of which, from sources without the United States which is not effectively connected with the conduct of a trade or business within the United States, is not includible in gross income under the Code.” (ii) A “US person” as defined in Rule 902 under the US Securities Act of 1933, as amended (the “US Securities Act”): (a) a natural person resident in the United States, (b) a partnership or corporation organized or incorporated under the laws of the United States, (c) an estate of which any executor or administrator is a US person, (d) a trust of which any trustee is a US person, (e) an agency or branch of a foreign entity located in the United States, (f) a non-discretionary or similar account (other than a trust or estate) held by a dealer or other fiduciary for the benefit or account of a US person, (g) a discretionary account or similar account (other than estate or trust) held by a dealer or other fiduciary organized, incorporated or (if an individual) resident in the United States or (h) a partnership or corporation if: (1) organized or incorporated under the laws of any foreign jurisdiction, and (2) formed by a US person principally for the purpose of investing in securities not registered under the US Securities Act, unless it is organized or incorporated, and owned, by “accredited investors” (as defined in Regulation D under the US Securities Act) who are not natural persons, estates or trusts.
(iv) A “US Person” as defined under the CFTC’s “Interpretive Guidance and Policy Statement Regarding Compliance with Certain Swap Regulations,” July 26, 2013, 78 Fed. Reg. 45291 (July 26, 2013), which generally includes, but is not limited to : (a) any natural person who is a resident of the United States; (b) any estate of a decedent who was a resident of the United States at the time of death; (c) any corporation, partnership, limited liability company, business or other trust, association, joint-stock company, fund or any form of enterprise similar to any of the foregoing (other than an entity described in prongs (d) or (e), below) (a “legal entity”), in each case that is organized or incorporated under the laws of a state or other jurisdiction in the United States or having its principal place of business in the United States; (d) any pension plan for the employees, officers or principals of a legal entity described in prong (c), unless the pension plan is primarily for foreign employees of such entity; (e) any trust governed by the laws of a state or other jurisdiction in the United States, if a court within the United States is able to exercise primary supervision over the administration of the trust; (f) any commodity pool, pooled account, investment fund, or other collective investment vehicle that is not described in prong (c) and that is majority-owned by one or more persons described in prong (a), (b), (c), (d) or (e), except any commodity pool, pooled account, investment fund, or other collective investment vehicle that is publicly offered only to non-US persons and not offered to US persons; (g) any legal entity (other than a limited liability company, limited liability partnership or similar entity where all of the owners of the entity have limited liability) that is directly or indirectly majority-owned by one or more persons described in prong (a), (b), (c), (d) or (e) and in which such person(s) bears unlimited responsibility for the obligations and liabilities of the legal entity; and (h) any individual account or joint account (discretionary or not) where the beneficial owner (or one of the beneficial owners in the case of a joint account) is a person described in prong (a), (b), (c), (d), (e), (f) or (g). Under this interpretation, the term “US person” generally means that a foreign branch of a US person would be covered by virtue of the fact that it is a part, or an extension of, a US person.
We, us Refers to Equity Trustees
Wholesale Client Person or entities defined as such under section 761G of the Corporations Act.
(iii) A person who is not a “Non-United States person” as defined in Section 4.7 under the US Commodity Exchange Act (the “CEA”): (a) a natural person who is not a resident of the United States; (b) a partnership, corporation or other entity, other than an entity organized principally for passive investment, organized under the laws of a foreign jurisdiction and which has its principal place of business in a foreign jurisdiction; (c) an estate or trust, the income of which is not subject to United States income tax regardless of source; (d) an entity organized principally for passive investment such as a pool, investment company or other similar entity; provided, that units of participation in the entity held by persons who do not qualify as Non-United States persons or otherwise as qualified eligible persons represent in the aggregate less than 10% of the beneficial interest in the entity, and that such entity was not formed principally for the purpose of facilitating investment by persons who do not qualify as Non-United States persons in a pool with respect to which the operator is exempt from certain requirements of Part 4 of the Commodity Futures Trading Commission’s (the “CFTC”) regulations by virtue of its participants being Non-United States persons; and (e) a pension plan for the employees, officers or principals of an entity organized and with its principal place of business outside the United States. T. Rowe Price Funds Reference Guide