Tribeca Alpha Plus Fund - Class B Units/media/equitytrustees/files/instofunds/tribeca/... · 1....

Tribeca Alpha Plus Fund- Class B UnitsProduct Disclosure StatementARSN 120 567 544APIR ETL0070AUIssue Date 18 April 2019

New Zealand Investors: Availability and Selling RestrictionThe offer made to New Zealand investors is available only to, and may only beaccepted by, a Wholesale Investor who has completed a Wholesale InvestorCertification. Each New Zealand investor acknowledges and agrees that:

(a) he, she or it has not offered, sold, or transferred, and will not offer, sell, ortransfer, directly or indirectly, any units in the Fund; and

(b) he, she or it has not granted, issued, or transferred, and will not grant, issue, ortransfer, any interests in or options over, directly or indirectly, any units in the Fund;and

(c) he, she or it has not distributed and will not distribute, directly or indirectly, aPDS or any other offering materials or advertisement in relation to any offer of anyunits in the Fund,

in each case in New Zealand other than to a person who is a Wholesale Investor;and

(d) he, she or it will notify Equity Trustees Limited if he, she, or it ceases to be aWholesale Investor.

All references to Wholesale Investor in this document are a reference to aninvestor who is both a Wholesale Client under the Australian Corporations Act2001 and a Wholesale Investor in terms of clause 3(2) of Schedule 1 of the FinancialMarkets Conduct Act 2013 (New Zealand).

Contents1. Fund at a glance 3

2. ASIC Benchmarks 4

3. Disclosure Principles 5

4. Who is Managing the Fund? 6

5. How the Fund Invests 7

6. Managing Risk 10

7. Investing and Withdrawing 12

8. Keeping Track of YourInvestment 15

9. Fees and Other Costs 16

10.Taxation 20

11.Other Important Information 23

12.Glossary of Important Terms 26

Investment ManagerTribeca Investment Partners Pty LtdABN 64 080 430 100, AFSL 239070PO Box R278 Royal ExchangeSydney NSW 1225Phone: +61 2 9640 2600Web: www.tribecaip.com.au

Responsible EntityEquity Trustees LimitedABN 46 004 031 298, AFSL 240975GPO Box 2307Melbourne VIC 3001Ph: +61 3 8623 5000Web: www.eqt.com.au/insto

AdministratorJ.P. Morgan Chase Bank, N.A.(Sydney Branch)ABN 43 074 112 011, AFSL 238367

Investor enquiriesTribeca Investment Partners Pty LtdEmail: [email protected]: 1300 366 176Web: https://mymanagedfunds.com.au/Funds/Tribeca/login

Tribeca Alpha Plus Fund - Class B Units PDS 1

This Product Disclosure Statement (“PDS”) was issued on18 April 2019. This PDS is for the offer of interests in the TribecaAlpha Plus Fund (Class B units) ARSN 120 567 544 (referred tothroughout this PDS as the “Fund“). This PDS is available toWholesale Clients and Wholesale Investors only.

The PDS has been prepared and issued by Equity TrusteesLimited (ABN 46 004 031 298, Australian Financial ServicesLicence (“AFSL”) No. 240975) in its capacity as the responsibleentity of the Fund (referred to throughout this PDS as the“Responsible Entity”, “Equity Trustees”, “us” or “we”). Theinvestment manager is Tribeca Investment Partners Pty Ltd(referred to throughout this PDS as “Tribeca” or the “InvestmentManager”).

This PDS is prepared for your general information only. It is notintended to be a recommendation by the Responsible Entity,Investment Manager or any associate, employee, agent orofficer of the Responsible Entity, Investment Manager or anyother person to invest in the Fund. This PDS does not take intoaccount the investment objectives, financial situation or needsof any particular investor. You should not base your decision toinvest in the Fund solely on the information in this PDS. Youshould consider the suitability of the Fund in view of yourpersonal financial circumstances, investment objectives andneeds. You may want to seek advice before making aninvestment decision.

Equity Trustees, the Investment Manager and their employees,associates, agents or officers do not guarantee the success,repayment of capital or any rate of return on income or capital orthe investment performance of the Fund. Past performance is noindication of future performance. An investment in the Funddoes not represent a deposit with or a liability of Equity Trustees,the Investment Manager or any of their associates. Aninvestment is subject to investment risk, including possibledelays in repayment and loss of income or capital invested. Unitsin the Fund are offered and issued by the Responsible Entity onthe terms and conditions described in this PDS. You should readthis PDS in its entirety.

The forward looking statements included in this PDS involvesubjective judgment and analysis and are subject to significantuncertainties, risks and contingencies, many of which areoutside the control of, and are unknown to, Equity Trustees, theInvestment Manager and their officers, employees, agents orassociates. Actual future events may vary materially from theforward looking statements and the assumptions on which thosestatements are based. Given these uncertainties, you arecautioned to not place undue reliance on such forward lookingstatements.

There are references to past performance in this PDS. Pastperformance is no guarantee of future performance.

In particular, in considering whether to invest in the Fund,investors should consider the risk factors that could affect thefinancial performance of the Fund. Some of the risk factorsaffecting the Fund are summarised in section 6.

All amounts quoted in this PDS are in Australian dollars (“AUD”)unless stated otherwise.

Investors who invest under this PDS do not have any rights tocooling off and cannot withdraw their application once it hasbeen made.

The offer made in this PDS is available only to persons receivingthis PDS in Australia (electronically or otherwise) who areWholesale Clients and persons who qualify as ‘wholesaleinvestors’ within the meaning of clause 3(2) of Schedule 1 of theFinancial Markets Conduct Act 2013 receiving this PDS in NewZealand (electronically or otherwise) who have completed awholesale investor certification. This PDS has not been, and willnot be, lodged with the Registrar of Financial Service Providersin New Zealand and is not a product disclosure statement underthe Financial Markets Conduct Act 2013. New ZealandWholesale Investors wishing to invest in the Fund should beaware that there may be different tax implications of investing inthe Fund and should seek their own tax advice as necessary. Ifyou received this PDS electronically we will provide a paper copyfree upon request during the life of this PDS. The PDS isavailable by requesting a copy free of charge from Tribeca on+61 2 9640 2600.

This PDS does not constitute a direct or indirect offer ofsecurities in the US or to any US Person as defined in RegulationS under the US Securities Act of 1933 as amended (“USSecurities Act”). Equity Trustees may vary its position and offersmay be accepted on merit at Equity Trustees’ discretion. Theunits in the Fund have not been, and will not be, registeredunder the US Securities Act unless otherwise determined byEquity Trustees and may not be offered or sold in the US to, orfor, the account of any US Person (as defined) except in atransaction that is exempt from the registration requirements ofthe US Securities Act and applicable US state securities laws.

Information in this PDS that is not materially adverse is subject tochange from time to time. We may update this information. Youcan obtain any updated information by calling Tribeca on+61 2 9640 2600.

A paper copy of the updated information will be provided freeof charge on request.

Unless otherwise stated, all fees quoted in the PDS are inclusiveof GST, after allowing for an estimate for Reduced Input TaxCredits (“RITC”).

2 Tribeca Alpha Plus Fund - Class B Units PDS

1. Fund at a glance

SummaryFor furtherinformation

Name of the Fund Tribeca Alpha Plus Fund Section 5

Class of units Class B

APIR Code ETL0070AU

ARSN 120 567 544

Investment objective The Fund aims to achieve positive returns in excess of the FundBenchmark, before fees and expenses, over the long term by taking bothLong Positions and Short Positions in selected Australian shares

Section 5

Fund Benchmark S&P/ASX 200 Accumulation Index Section 5

Investment strategy andinvestments held

The Fund uniquely blends fundamental and quantitative strategies todevelop opportunities to generate alpha. This strategy generatesconcentrated and uncorrelated alpha from fundamental investing;improving on alpha derived from the breadth of the quantitative process.

This is an Australian equity Long/Short strategy with the typical assetclasses held by the Fund being cash and cash equivalent instruments,Australian listed shares and other equity like securities and exchangetraded derivatives.

Section 5

The type(s) of investors forwhom the Fund would besuitable

Long-term investors seeking an Australian equity Long/Short investmentstrategy with a high level of risk

Section 5

Recommended investmenttimeframe

At least 5 years.

We recommend that you consider, with your financial adviser, thesuggested investment period for the Fund in relation to your owninvestment timeframe.

You should review this regularly to ensure that the Fund continues to meetyour investment needs.

Section 5

Minimum initial investment $250,000 Section 7

Minimum additionalinvestment

$10,000 Section 7

Minimum withdrawal amount $10,000 Section 7

Minimum balance $200,000 Section 7

Cut off time for applicationsand withdrawals

By 12.00pm (noon) on any Business Day for receipt of that days unit price Section 7

Cooling Off N/A Section 7

Valuation frequency Daily Section 7

Unit pricing Daily Section 7

Applications Daily Section 7

Withdrawals Daily Section 7

Income distribution Generally paid half yearly as at 31 December and 30 June

Reinvestment of distributions is available

Section 7

Management fees 0.97% (inclusive of the net impact of GST and RITC) p.a. of the Net AssetValue (“NAV”) of the Fund

Section 9

Entry fee/ exit fee Nil Section 9

Buy/Sell Spread +/- 0.30% for applications (or withdrawals) into (or from) the Fund Section 9

Performance fee Can be negotiated by the Investment Manager with investors Section 9


2. ASIC BenchmarksThe Fund is a ‘hedge fund’ for the purposes of Australian Securities and Investments Commission (ASIC) Regulatory Guide 240. Thefollowing table sets out a summary of the disclosure ASIC requires for hedge funds, the key features of the Fund and a guide to wheremore detailed information can be found in this PDS. A copy of ASIC Regulatory Guide 240 dated October 2013 (as may be amended,supplemented or replaced from time to time) is available from www.asic.gov.au.

The information summarised in this table and explained in detail in the identified section reference is intended to assist investors withanalysing the risks of investing in the Fund. Investors should consider this information together with the detailed explanation ofvarious benchmarks and principles referenced throughout this PDS and the key risks of investing in the Fund highlighted in section 6of this PDS.

ASIC BenchmarkIs the benchmarksatisfied?

For furtherinformation

Valuation of assets

This benchmark addresses whether valuations of the Fund’s non-exchange tradedassets are provided by an independent administrator or an independent valuationservice provider.

Yes 8

Periodic reporting

This benchmark addresses whether the responsible entity of the Fund will provideperiodic disclosure of certain key information on an annual and monthly basis.

Yes 15


3. Disclosure Principles

SummarySection (for furtherinformation)

Investment strategy The goal of the Fund’s investment strategy is to generate investmentreturns in excess of the Fund Benchmark over the long term by taking bothLong Positions and Short Positions in selected Australian shares that arelisted, or expected to be listed within 90 days, on the Australian SecuritiesExchange (“ASX”).

This is an Australian equity Long/Short strategy with the typical assetclasses held by the Fund being cash and cash equivalent instruments,Australian listed shares and other equity like securities and exchangetraded derivatives. The Fund may have between 90% and 150% of its NAVinvested in Long Positions and 0% to 50% of its NAV invested in ShortPositions.

Further details regarding the investment strategy of the Fund, includingamong other things, the diversification guidelines for the Fund, are set outin section 5.2. The specific risks of investing in the Fund and keydependencies and assumptions of the investment strategy of the Fund aredescribed in section 6.

Section 5.2

Investment manager Tribeca Investment Partners Pty Ltd is the investment manager. The Fund ismanaged by Jun Bei Liu, who is supported by an experienced team ofquantitative and fundamental analysts.

Further details in relation to the expertise of the Investment Manager andthe Investment Management Agreement (“IMA”) are set out in section 4.

Section 4

Fund structure The responsible entity of the Fund is Equity Trustees Limited who hasappointed Tribeca Investment Partners Pty Ltd as investment manager.

See section 5.3 for further information on other key service providers,Equity Trustees’ role in monitoring the performance of service providersand a diagram of flow of funds through the Fund.

Section 5.3

Valuation, location andcustody of assets

J.P.Morgan Securities Australia Limited has been appointed to providestock lending services.

J.P.Morgan Chase Bank, N.A. (Sydney Branch) is the custodian andadministrator of the Fund (“Administrator”) and provides traditionalcustodial services together with administrative, accounting, registrar andtransfer agency services. The Administrator is responsible for determiningthe Fund’s NAV.

See section 5.4 for further information on custodial arrangement and thegeographical location of assets.

Section 5.4

Liquidity The Fund invests predominately in liquid assets and is expected to beliquid for the purposes of the Corporations Act.

Section 5.5

Leverage The Fund’s underlying strategy does employ leverage. See section 5.6 foran explanation of leverage and collateral arrangements for the Fund.

Section 5.6

Derivatives The Fund is permitted to hold exchange traded derivatives for hedgingpurposes only, rather than to leverage the Fund.

Section 5.7

Short selling The Fund is permitted to short sell. Section 5.8

Withdrawals Daily: Notify by 12.00pm (noon) on any Business Day for receipt of thatday’s unit price.

Risks and limitation on withdrawal are set out in section 5.9.

Section 5.9


4. Who is Managing the Fund?The Responsible EntityEquity Trustees LimitedEquity Trustees Limited ABN 46 004 031 298 AFSL 240975, asubsidiary of EQT Holdings Limited ABN 22 607 797 615, whichis a public company listed on the Australian Securities Exchange(ASX: EQT), is the Fund’s responsible entity and issuer of thisPDS. Established as a trustee and executorial service provider bya special Act of the Victorian Parliament in 1888, today EquityTrustees is a dynamic financial services institution whichcontinues to grow the breadth and quality of products andservices on offer.

Equity Trustees’ responsibilities and obligations as the Fund’sresponsible entity are governed by the Fund’s constitution(“Constitution”), the Corporations Act and general trust law.Equity Trustees has appointed Tribeca as the investmentmanager of the Fund. Equity Trustees has appointed a custodianto hold the assets of the Fund. The custodian has no supervisoryrole in relation to the operation of the Fund and is notresponsible for protecting your interests.

The Investment ManagerTribeca Investment Partners Pty LtdTribeca Investment Partners Pty Ltd (“Tribeca” or “InvestmentManager”) is a Sydney based boutique asset manager which iswholly owned by its employees. At the date of this PDS, Tribecamanages approximately $2.4 billion on behalf of a globalinvestor base including pension funds, endowments,foundations, financial institutions, family offices and high networth investors. Since its establishment in 1998, Tribeca’ssuccess has been based on a culture of investment creativitybalanced by a range of disciplined and comprehensiveinvestment selection processes which have enabled thedevelopment of a range of products that apply the firm’s specificskills to maximum effect in different segments of the market.

No significant adverse regulatory findings have been attributedto the Investment Manager.

The Fund is currently managed by Jun Bei Liu, who has overeighteen years of investment experience, the last fourteen ofwhich have been with Tribeca. Initially joining Tribeca in 2005 asan analyst, she was promoted to Deputy Portfolio Manager ofthe Fund in 2016, and subsequently assumed portfoliomanagement responsibilities in early 2019. During her tenure,Jun Bei has covered most sectors across the Australian market atvarious times. Jun Bei holds a Bachelor of Commerce (Finance &Economics) from the University of New South Wales. She is alsoa CFA charter holder and member of the Australian Institute ofCompany Directors. Further details in relation to the expertise ofthe Investment Manager and the Investment ManagementAgreement (“IMA”) are set out in section 5.

The Responsible Entity has ultimate responsibility for themanagement of all assets of the Fund.

The Responsible Entity has the right to terminate the services ofTribeca as investment manager on specified grounds asidentified in the IMA between Tribeca and the ResponsibleEntity. For example, the Responsible Entity may terminate theIMA by giving 20 Business Days’ notice. The Responsible Entitymay also immediately by written notice to the InvestmentManager terminate the IMA where the Investment Managergoes into administration, receivership, liquidation, breaches theterms of the IMA and fails to remedy the breach within the timespecified under the IMA, where there is a change of control ofthe Investment Manager or where the Responsible Entity isrequired to terminate the IMA under the law.

The Custodian and AdministratorJ.P.Morgan Chase Bank, N.A. (Sydney Branch)The Administrator provides certain custodial, administrative,accounting, registrar and transfer agency services for the Fund.The Administrator has been appointed to provide these servicesunder an administration agreement between the ResponsibleEntity and the Administrator. The Administrator has no directrelationship with investors.


5. How the Fund Invests5.1 Investment objectiveThe Fund’s investment objective is to achieve positive returns inexcess of the Fund Benchmark, before fees and expenses, overthe long term by taking both Long Positions and Short Positionsin selected Australian shares.

5.2 Investment strategyThis is an Australian equity Long/Short strategy with the typicalasset classes held by the Fund being cash and cash equivalentinstruments, Australian listed shares and other equity likesecurities and exchange traded derivatives. The Fund may havebetween 90% and 150% of its NAV invested in Long Positionsand 0% to 50% of its NAV invested in Short Positions.

Tribeca employs a sophisticated set of financial tools to analysethe vast array of information available in investment markets.Investment decisions are then taken to the next level byemploying a team of dedicated investment professionals toseek out information not reflected in market pricing and identifysuperior investment opportunities.

This investment process can be categorised into two broadstyles of investing – quantitative and fundamental. The strengthof quantitative investing is the breadth of information thatcaptures and enables a transparent and objective assessment ofa company’s relative prospects. The advantage of thefundamental approach is the level of detail that can be gatheredon a particular company and level of investment insight that canbe obtained from a detailed knowledge of a company’soperations.

The quantitative process is designed to exploit particularbehavioural biases that are exhibited by investors and can beexplicitly measured through precisely defined factors. Thesefactors generally fall into the categories of either value ormomentum and can be implemented through Bottom-upResearch or Top-down Research. The benefit of a quantitativeprocess is that it enables a large number of stocks to becompared quickly and efficiently in an unbiased fashion. Itprovides an enormous amount of breadth to the investmentprocess and enables a company’s likely outperformance to beassessed in an objective manner. Tribeca has developed bothstock specific and macro-based quantitative models.

The fundamental process reflects the roots of Tribeca as aninvestment house focused on detailed company research. Theadvantage of this style is that a significant amount of detail on acompany can be unearthed and used to generate insights intoits future prospects and likely investment returns. Tribeca has ateam of highly qualified and experienced investment analystswho conduct specialised research in various sectors of theequity market. They use their detailed knowledge of thesesectors to construct detailed financial models that can be usedto identify companies with superior investment prospects.

Tribeca has developed a unique process for the Fund thatcreates a fusion of quantitative and fundamental investmentphilosophies. This allows them to take advantage of aLong/Short investment style while harnessing the benefits ofhigh conviction research.

Benefits of a Long/Short investment styleThe Australian share market is small by global standards and isdominated by a small number of very large companies. Whenusing a benchmark for constructing an investment portfolio,

such as the S&P/ASX 200 Accumulation Index, the performanceof a traditional fund which only takes Long Positions will bedetermined by the size of the fund’s shareholding of these verylarge companies relative to that company’s weighting within thebenchmark. By contrast, the Fund is also able to take ShortPositions in securities by borrowing securities from other holdersand selling on market, and reinvesting the proceeds in otherLong Positions. This provides the Fund with a larger set ofinvestment opportunities and gives more opportunity tooutperform the Fund Benchmark. The Fund is potentially able toachieve higher levels of divergence in the performance of theportfolio relative to the performance of the Fund Benchmarkthan can be achieved for funds which only take Long Positions.However, short selling of securities does carry additional risk. Formore information refer to the “Managing Risk” section.

Investment GuidelinesThe assets of the Fund will generally be invested in accordancewith the following guidelines:

The Fund aims to invest in a portfolio of securities that are listed,or expected to be listed within 90 days, on the AustralianSecurities Exchange (“ASX”)

At least 90% of the net value of the shares and like securitiesheld in the Portfolio must be represented by the value of sharesand like securities which are constituents of the S&P/ASX 200Index or which are expected to be constituents of that Indexwithin 90 days from purchase

• The Fund may have between 90% and 150% of its NAVinvested in Long Positions

• The Fund may have between 0% and 50% of its NAVinvested in Short Positions

• The Fund’s net exposure to securities will range between90% and 100% of its NAV

• The Fund aims to hold no more than 10% of its NAV in cash

• At the time of entering a transaction, the exposure of theFund to any security will not differ from the Fund Benchmarkweight by more than 5%. The maximum allowabledifference, including price changes, is 6%

• The Fund will not borrow, except by using overdraft facilitiesas and when required for the efficient settlement oftransactions

• The Fund is permitted to use derivatives. Derivatives areused for hedging purposes only rather than to leverage theFund. All derivatives used will be exchange traded andcovered by cash, physical securities or a combination ofboth. Futures maybe used to maintain market exposurewhen cash is held in the Fund.

Due to movements in the market or similar events, theguidelines set out above may not be adhered to from time totime. In these circumstances, the Investment Manager will seekto bring the Fund’s investments back within the guidelineswithin a reasonable period of time.

Change in investment strategyThe Investment Manager reserves the right to change itsinvestment strategy from time to time. Any changes to theinvestment strategy will be notified to investors in accordancewith the law.


5.3 Fund StructureThe investment offered under this PDS is a class of units in the Tribeca Alpha Plus Fund (“Fund”), a registered managed investmentscheme, governed by the Constitution. The Fund comprises assets which are acquired in accordance with its investment strategy.Investors receive Class B units when they invest. In general, each unit represents an individual’s interest in the assets as a whole subjectto liabilities; however it does not give the investor an interest in any particular asset. The value of a unit in the Fund is determined byreference to the assets and liabilities referable to the Fund. Equity Trustees is the responsible entity for the Fund and has appointedTribeca as the investment manager to manage the investments of the Fund on a day to day basis. The Responsible Entity has engageda number of professional service providers to provide a range of investment, administration and back office services to the Fundincluding custody, brokerage, administration services and transaction execution. The Responsible Entity has entered into serviceagreements with the service providers and will, with the assistance of Tribeca, regularly monitor the performance of the serviceproviders against service standards set out in the relevant agreements. The service providers and their relationship to the Fund andthe flow of funds through the Fund are shown in the diagram below.

As at the date of this PDS, the service providers to the Fund are:

• Investment Manager: Tribeca is responsible for managing the investments of the Fund. For further details on Tribeca’s role pleaserefer to section 4.

• Stock Lender: J.P.Morgan Securities Australia Limited is responsible for stock lending. The Stock Lender is located in Australia. Forfurther details on J.P.Morgan’s role please refer to section 4.

• Custodian and Administrator: J.P.Morgan Chase Bank, N.A. (Sydney Branch) (the “Administrator”) has been appointed as theFund’s administrator to perform certain custodial, administrative, accounting, registrar, and transfer agency services for the Fund.The Administrator is located in Australia. For further details on J.P.Morgan’s role please refer to section 4.

• Brokers: The Fund has a select panel of brokers to perform brokerage functions. The Investment Manager may change brokerswithout notice to investors.

Service providers to the Fund may change without notice to investors. Service providers to the Fund may change without prior noticeto investors. Investors will be notified of any change to service providers in the regular reports available as described in section 8. Risksrelating to the use of third party service providers are outlined in section 6.

5.4 Valuation, location and custody of assetsAll positions in the Fund are independently valued by the Administrator. The majority of assets currently traded and held in the Fundare exchange traded and are valued on a mark to market basis at the close of trading on each day. Assets not traded on exchangesmay include cash and cash equivalent instruments and securities expected to be listed within 90 days. These assets are liquid andvalued independently by the Administrator in accordance with the market value of the assets.

As described in section 5.3, excess cash is held in custody at J.P.Morgan Chase Bank, N.A. (Sydney Branch). The custodialarrangements in respect of various asset classes are described in the table below:

Asset Class Responsible Custodian Location of CustodianAssets as a proportion of NetAsset Value of the Fund

Australian shares J.P.Morgan Australia 0% – 90%

Unencumbered cash J.P.Morgan Australia < 10%


5.5 LiquidityThe majority of assets currently traded and held by the Fund areliquid. In recognition of ASICs “Regulatory Guide 240 HedgeFunds: Improving disclosure”, the Responsible Entity andInvestment Manager expect that the Fund will be able to realiseat least 80% of the Fund’s assets, at the value ascribed to thoseassets in the most recent calculation of NAV, within 10 BusinessDays.

It is unlikely that liquidity issues will result from withdrawalrequests. Generally, it is the Investment Manager’s policy toensure that the Fund remains liquid.

5.6 LeverageWhilst the Fund may borrow securities in the short term tofacilitate the efficient settlement of transactions, the Fund’sunderlying strategy does not employ leverage (i.e. the Fund willnot use derivatives or borrowing to amplify exposure of capitalto investments).

The maximum exposure of the Fund is 150% of the Fund’s NAV.This means that for every $1 of the Fund’s NAV, the Fund mayleverage up to $1.50. For example, this means that comparedwith an unleveraged fund, assuming that the Fund reaches itsmaximum gross exposure of 150% of NAV, then:

• a 1% increase in the return on assets of the Fund will result ina 1.5% increase in return to investors; and

• a 1% decrease in the return on assets of the Fund will resultin a 1.5% decrease in returns to investors.

This example has been provided for reference purposes only.Any assumptions underlying these examples are hypotheticalonly.

However, whilst a Short Position can often reduce risk, it is alsopossible for the Fund’s Long Positions and Short Positions toboth lose money over time.

5.7 DerivativesDerivatives are used infrequently by the Fund and are exchangetraded. The most common derivatives used are futures andoptions on Australian shares. Risks associated with derivativesmay include adverse movement in the physical asset orbenchmark underlying the derivative, potential illiquidity of thederivative, the Fund being unable to meet payment obligationsas they arise and the counterparty to any derivative contract notbeing able to meet its obligations under the contract. In theFund, derivatives will only be used for hedging purposes ratherthan to leverage the Fund. All derivatives used will be coveredby cash, physical securities or a combination of both. Futuresmay be used to maintain market exposure when cash is held inthe Fund.

5.8 Short sellingShort selling plays an important role in ensuring that securitiesare priced correctly relative to fundamentals. The Fund regularlyengages in short selling in order to participate in this process,although in aggregate it is always net long assets. The Fund mayhave between 0% and 50% of its Net Asset Value invested inShort Positions.

In creating a short position the Fund will borrow a security from asecurities lender and sell it with the intention of repurchasing thesecurity when the price of the security falls. If the price of thesecurity rises, a loss is incurred which can be greater than thepurchased value of the security if the price of the securitycontinues to rise. There is also the risk that the securities lendermay recall a security that the Fund has borrowed at any timewhich means that the Fund may have to buy the security at anunfavourable price to meet its obligations.

These risks can be managed by ensuring short positions areprimarily in liquid securities rather than the small, low liquidityassets which are more regularly subject to price spikes andsupply issues.

5.9 WithdrawalsThe Fund trades predominately in liquid instruments andtherefore it is likely that withdrawal requests can be satisfied invirtually all market conditions. However, note that in exceptionalcircumstances the Responsible Entity has a right to suspendwithdrawals. Such circumstances may include, but are notnecessarily limited to:

• a severe breakdown in markets in which the Fund trades;and

• a credit event which impairs the short dated cashinstruments held in custody.

In certain circumstances, such as when there is a suspension ofwithdrawal or where the proportion of liquid assets of the Fundfalls below the specified thresholds under the Corporations Act,investors may not be able to withdraw their investments withinthe usual period upon request.

In the unlikely event that material changes to withdrawal rightsare made, investors will be notified via correspondence. Pleasesee section 7 for details of applications and withdrawals undernormal circumstances.

5.10 Suggested investment timeframeThe suggested investment timeframe is at least 5 years.

5.11 Labour standards and environmental, socialand ethical considerationsNeither Equity Trustees nor Tribeca takes labour standards orenvironmental, social or ethical considerations into accountwhen making their investment decisions. However, where thosefactors negatively impact the investment performance orcompany stability, Tribeca’s investment team will generallydiscuss these matters with company management and/or reviewthe decision to hold the specific investment. No specificmethodology is used for such reviews nor are therepre-determined views about the extent to which such factors willbe taken into account in a review.

5.12 Fund performanceFund performance will be available from www.tribecaip.com.auor by calling Tribeca on +612 9640 2600. Please note that due tothe historical nature of performance information and thevolatility of returns, future returns may differ from past returns.


6. Managing RiskAll investments carry risk. Different investment strategies maycarry different levels of risk, depending on the assets acquiredunder the strategy. Assets with the highest long-term returnsmay also carry the highest level of short-term risk. The significantrisks below should be considered in light of your risk profilewhen deciding whether to invest in the Fund. Your risk profilewill vary depending on a range of factors, including your age,the investment time frame (how long you wish to invest for), yourother investments or assets and your risk tolerance. NeitherEquity Trustees nor Tribeca guarantee the liquidity of the Fund’sinvestments, repayment of capital or any rate of return or theFund’s investment performance. You may lose money byinvesting in the Fund and your investment in the Fund may notmeet your objectives. Future returns may differ from pastreturns. In addition neither Equity Trustees nor Tribeca offersadvice that takes into account your personal financial situation,including advice about whether the Fund is suitable for yourcircumstances. If you require personal financial advice, youshould contact a licensed financial adviser.

The Fund should be considered as a high risk strategyinvestment. It is not intended as a complete investmentprogram. The Fund is designed only for informed and educatedinvestors who can bear the economic risks of the loss of theirinvestment in the Fund and who have a limited need for liquidityin their investment. There can be no assurance that the Fund willachieve its investment objective or that any investor will get theirmoney back.

Some of the risks associated with an investment in the Fund andhow the Investment Manager manages those risks are listedbelow. There is no guarantee that any risk mitigation measuresdescribed below will be effective.

Market riskChanges in legal and economic policy, political events,technology failure, changes in interest rates, economic cycles,investor sentiment and social climate can all directly or indirectlycreate an environment that may influence (negatively orpositively) the value of your investment in the Fund. In addition,a downward move in the general level of the equity market canhave a negative influence on the performance of the Fund.

Interest rate riskChanges in official interest rates can directly and indirectlyimpact (positively or negatively) on investment returns.Generally, an increase in interest rates has a contractionaryeffect on the state of the economy and the valuation ofsecurities. For example, rising interest rates can have a negativeimpact on a company’s value as increased borrowing costs maycause earnings to decline. As a result, the company’s share pricemay fall.

Company specific riskThere may be instances where the value of a company’ssecurities will fall because of company specific factors (forexample, where a company’s major product is subject to aproduct recall). The value of a company’s securities can also varybecause of changes to management, product, distribution orthe company’s business environment. This risk is somewhatmitigated by the knowledge and experience of the InvestmentManager.

Liquidity riskThere may be times when investments may not be readily sold(for example, in a falling market where some traded securitiesmay become less liquid). Moreover, some securities may bethinly traded and there may not be sufficient market depth tofacilitate the efficient realisation of those assets at all times.However, in the Investment Manager’s opinion, trading volumes

of investments are generally sufficient to satisfy liquidityrequirements when necessary. The Fund generally invests inhighly liquid investments which are traded in an active market,and can be readily disposed of. The Investment Managerattempts to mitigate the liquidity risk factor by ensuring that theFund has sufficient cash exposure to meet liquidityrequirements. Note that neither the Responsible Entity nor theInvestment Manager guarantees the liquidity of the Fund’sinvestments.

Regulatory RiskThis is the risk that domestic or international laws or regulations(including tax laws) are changed adversely or that regulatorysupervision of transactions and reporting is performed by theInvestment Manager at less than an appropriate standard. TheInvestment Manager aims to manage this risk by regularly andclosely reviewing changes in the regulatory and taxenvironment.

Short selling riskSee section 5.8

Security selection riskThe Investment Manager may make investment decisions thatresult in low returns (for example, where the InvestmentManager invests in a company that significantly underperformsthe Fund Benchmark). This risk is mitigated to some extent bythe knowledge and experience of the Investment Manager.

Derivatives riskSee section 5.7

Leverage riskSee section 5.6

Credit riskThere is a risk that a party to a credit transaction fails to meet itsobligations, such as a counterparty defaulting under a derivativecontract or a securities lender failing to deliver a borrowedsecurity.

The Custodian will have general custody of the Fund’s assets.The failure of the Custodian to secure custody of the Fund’sassets may result in adverse consequences for the assets held bythe Fund and may in turn have an adverse effect on the NAV perunit.

Fund riskAs with all managed funds, there are risks particular to the Fund,including the possibility it could terminate, fees and expensescould change, the Responsible Entity or the InvestmentManager may be replaced or key investment professionals couldchange. There is also a risk that investing in the Fund may givedifferent results than investing directly in the Fund’s underlyinginvestments because of income or capital gains accrued in theFund and the consequences of investment and withdrawal byother investors. We aim to keep fund risk to a minimum bymonitoring the Fund and acting in the unit holder’s bestinterests.

Key personnel riskTribeca is dependent to some extent upon the expertise of itsexisting investment team. Consequently, the Fund’sperformance could be adversely affected if key members of theinvestment team do not continue to provide their services toTribeca.


Risk Management PoliciesThe Fund’s overall risk management programme focuses onensuring compliance with the Fund’s Constitution, PDS, and theinvestment guidelines of the Fund and seeks to maximise thereturns derived for the level of risk to which the Fund is exposed.Specific areas focused upon to ensure this compliance include:

LiquidityStrict liquidity limits are adopted by the Fund. The Fundgenerally invests in highly liquid securities. Tribeca aims to investthe majority of the Fund’s assets in listed securities which aretraded in an active market, and can be readily disposed of. Themaximum exposure to any particular stock will depend upon itsspecific liquidity and the time taken to trade into and out of theposition.

Market ExposureThe portfolio is constructed to have an absolute risk profile thatis broadly similar to that of the market. This means that most ofthe risk comes from stock specific sources and the portfolio isexposed to broader market moving events only as much as theFund Benchmark.

DiversificationMany risks are driven by external factors that are notcontrollable. The broad approach to counter such risks is tomaintain a high level of diversification across the portfolio. Thiscontrols the impact of stock specific events by limiting them to afinite amount.

Portfolio constraintsIn addition to the broad impact of diversification, portfolio risk iscontrolled by placing explicit positions limits on individualstocks. These limits also extend to broader sector exposuresand size positions within the portfolio. This keeps the exposureto individual stocks risks, as well broader style shifts across themarket, under control.


7. Investing and WithdrawingInitial ApplicationsInvestors who are Wholesale Clients or Wholesale Investors canacquire units by completing an Application Form. Applicantsmust be 18 years of age or over. The minimum investmentamount for the Fund is $250,000. New Zealand investors mustspecify the amount in Australian dollars and applicationamounts quoted in New Zealand dollars are unable to beaccepted.

To invest directly please complete the Application Formaccompanying this PDS and send your original ApplicationForm to:

Tribeca Alpha Plus Fundc/o Link Market ServicesPO Box 3721Rhodes NSW 2138

New Zealand investors must also complete the wholesaleinvestor certification at the back of the Application Form.

Application money should be transferred to the bank accountdetails shown in the Application Form.

Please note that cash will not be accepted.

The price at which units are acquired is determined inaccordance with the Constitution (“Application Price”). TheApplication Price of Class B units, in general terms, is equal tothe NAV referable to Class B units, divided by the number ofunits on issue in respect of Class B units plus any transactioncosts.

Unit prices are calculated daily.

Applications can be made on any Business Day. However, forunit pricing purposes and income accrual purposes, anyapplication received after 12.00pm (noon) on a Business Day willgenerally be treated as having been received the followingBusiness Day.

Transaction costs may reduce the number of units which aninvestor receives when applying for units.

See the ’Buy/Sell spread information in the fees section forfurther information.

The Application Price will vary as the market value of assets inthe Fund rises or falls.

Additional applicationsYou can generally make additional investments into the Fund atany time by sending us confirmation of your additionalinvestment amount together with a completed ApplicationForm to:

Tribeca Alpha Plus Fundc/o Link Market ServicesFax: +612 9287 0373

Investors can add to their investment at any time, subject toEquity Trustees’ approval. The minimum additional investmentin the Fund for Class B units is $10,000.

Please note that if cleared funds are not received the applicationwill not be accepted.

Terms and conditions for applicationsApplications can be made at any time. Application cut-off timesand unit pricing are set out in the initial applications sectionabove. Please note that we do not pay interest on applicationmonies (any interest is credited to the Fund). Equity Trusteesreserves the right to refuse any application without giving areason. If for any reason Equity Trustees refuses or is unable toprocess your application to invest in the Fund, Equity Trusteeswill return your application money to you, subject to regulatory

considerations, less any taxes or bank fees in connection withthe application. You will not be entitled to any interest on yourapplication money in this circumstance.

Under the Anti-Money Laundering and Counter-TerrorismFinancing Act 2006, applications made without providing all theinformation and supporting identification documentationrequested on the Application Form cannot be processed untilall the necessary information has been provided. As a resultdelays in processing your application may occur.

Cooling off periodAs the offer in this PDS is only available to Wholesale Clients orWholesale Investors, cooling off rights do not apply.

Making a withdrawalInvestors of the Fund can withdraw all or a portion of theirinvestment by written request to:

Tribeca Alpha Plus Fundc/o Link Market ServicesPO Box 3721Rhodes NSW 2138Fax: +612 9287 0373

The minimum withdrawal amount is $10,000. Refer below for’Terms and conditions for withdrawals’. All withdrawal requestsmust be signed by the investor(s) and withdrawals will only bepaid directly to the unit holder’s bank account held in the nameof the unit holder with an Australian domiciled bank. Withdrawalpayments will not be made to third parties.

The price at which units are withdrawn is determined inaccordance with the Constitution (“Withdrawal Price”). TheWithdrawal Price of Class B units, in general terms, is equal tothe NAV of Class B units divided by the number of Class B unitson issue less any transaction costs.

Unit prices are calculated daily.

Withdrawals requests can be made on any Business Day.However, for unit pricing purposes and income accrualpurposes, any withdrawal request received after 12.00pm (noon)on a Business Day will generally be treated as having beenreceived the following Business Day.

Transaction costs may reduce the amount which an investorreceives on withdrawal. See the ’Buy/Sell spread information inthe fees section for further information.

The Withdrawal Price will vary as the market value of assets inthe Fund rises or falls.

‘Withdrawal requests received from New Zealand investors mustspecify:

• the withdrawal amount in Australian dollars; or

• the number of units to be withdrawn.

We are unable to accept withdrawal amounts quoted in NewZealand dollars. Please note that the withdrawal amount paid toyou will be in Australian dollars and may differ from the amountyou receive in New Zealand dollars due to:

• Foreign Exchange spreads between Australian and NewZealand dollars (currency rate differs daily); and

• Overseas Telegraphic Transfer (“OTT”) costs.

Withdrawals will only be paid directly to the unit holder’s bankaccount held in the name of the unit holder with an Australiandomiciled bank. Withdrawal payments will not be made to thirdparties.


Access to FundsInvestors wishing to withdraw units can do so by sending awritten request to withdraw from the Fund

Equity Trustees will generally pay withdrawals within 7 days ofreceipt of a withdrawal request for the relevant amount.However, the Constitution of the Fund allows Equity Trustees tomake payment up to 30 days after receipt of a withdrawalrequest. This period may be extended by a further 30 days if theResponsible Entity considers that it is in the best interests ofmembers to do so, or by the number of days during which anExceptional Circumstance, described in the next paragraph,apply. An Exceptional Circumstance is where if it is not possibleor not in the best interests of unit holders for the ResponsibleEntity to process redemption requests or pay the WithdrawalPrice in respect of a redemption request the Responsible Entityhas accepted. Such circumstances may include, but are notnecessarily limited to:

• restricted or suspended trading;

• extreme price fluctuation; and

• uncertainty in the market for an asset of the Fund.

The Responsible Entity also has a right to suspend theconsideration of withdrawal requests where an ExceptionalCircumstance is present.

Equity Trustees reserves the right to fully redeem yourinvestment upon 30 days’ notice if your investment balance inthe Fund falls below $200,000 as a result of processing yourwithdrawal request.

If Equity Trustees increases this minimum balance, EquityTrustees may, after giving 30 days’ notice to a unit holder whoholds units with an aggregate Withdrawal Price less than thethen current minimum balance, redeem that unitholder’s unitswithout a need for a withdrawal request. Equity Trustees mayalso request that a unit holder dispose of their units to a personwho is an Eligible Person or where the Fund is liquid (as definedin the Corporations Act), lodge a withdrawal request in respectof all units the unit holder holds within 30 days (or such longerperiod as Equity Trustees may determine from time to time). Ifthe unit holder fails to comply with that request and the Fund isliquid, Equity Trustees may compulsorily redeem the unitholder’s units.

Terms and conditions for withdrawalsEquity Trustees will refuse to comply with any request if therequesting party does not satisfactorily identify themselves asthe investor.

In some circumstances, where an investor makes a largewithdrawal request (5% or more of the units on issue in that classat the start of the relevant distribution period), their withdrawalproceeds may be taken to include a component of distributableincome. Refer to ’Distributions.

By lodging a withdrawal request you release, discharge andagree to indemnify Equity Trustees from and against any and alllosses, liabilities, actions, proceedings, account claims anddemands arising from any withdrawal request. You also agreethat any payment made in accordance with the withdrawalrequest shall be a complete satisfaction of the obligations ofEquity Trustees, notwithstanding any fact or circumstanceincluding that the payment was made without your knowledgeor authority. You agree that if the payment is made inaccordance with the withdrawal request, you and any personclaiming through or under you shall have no claim against EquityTrustees in relation to the payment.

Where the Fund is not liquid (as defined in the Corporations Act)an investor does not have a right to withdraw from the Fund andcan only withdraw where the Responsible Entity makes awithdrawal offer to investors in accordance with the

Corporations Act. The Responsible Entity is not obliged to makesuch offers. The Fund will be liquid if at least 80% of the assets ofthe Fund are liquid assets. Generally, liquid assets are money inan account or on deposit with a financial institution, bankaccepted bills, marketable securities, other prescribed propertyand other assets that the Responsible Entity reasonably expectscan be realised for their market value within the period specifiedin the Fund Constitution for satisfying withdrawal requests whilethe Fund is liquid.

DistributionsA distribution comprises the investor’s share of any distributableincome (including taxable capital gains) earned by the Fund. Aninvestor’s share of any net income is generally based on thenumber of units held by the investor at the end of thedistribution period. However, in some circumstances, an investormay receive a distribution where they have made a largewithdrawal from the Fund (i.e. where the withdrawal comprises5% or more of a class of units on issue at the start of the relevantdistribution period). In these circumstances their withdrawalproceeds may be taken to include a component of distributableincome.

Generally, the income entitlements of investors are determinedhalf yearly (at the end of June and December) and distributionsare normally paid by the 15th of the following month althoughthe distribution at the end of the financial year may take placelater. Although Equity Trustees proposes to calculate and payincome distributions half yearly, the Fund’s Constitution allowsfor a distribution period of up to 12 months.You can have yourdistribution reinvested or paid to your nominated bank accountheld in your name with an Australian domiciled bank. Investorswho do not indicate a preference will have their distributionsautomatically reinvested at the next NAV Price calculated afterthe end of the distribution period. The Fund’s Constitutionprovides for money payable to an investor to be reinvestedwhere the Responsible Entity attempts to pay the money byelectronic transfer and the electronic transfer fails on 3occasions.

New Zealand investorsNew Zealand investors can only have their distributionreinvested. When the distribution is reinvested, New Zealandinvestors will be allotted units in accordance with the terms andconditions set out in this PDS.

The distribution reinvestment plan described in this PDS isoffered to New Zealand investors on the following basis:

• At the time the price of the units allotted pursuant to thedistribution reinvestment plan is set, the Responsible Entitywill not have any information that is not publicly availablethat would, or would be likely to, have a material adverseeffect on the realisable price of the units if the informationwere publicly available.

• The right to acquire, or require the Responsible Entity toissue, units will be offered to all investors of the same class,other than those resident outside New Zealand who areexcluded so as to avoid breaching overseas laws.

• Units will be issued on the terms disclosed to you, and willbe subject to the same rights as units issued to all investorsof the same class as you.

There is available from the Responsible Entity, on request andfree of charge, a copy of the most recent annual report of theFund, the most recent financial statements of the Fund, theauditor’s report on those financial statements, the PDS and theConstitution for the Fund (including any amendments). Otherthan the Constitution, these documents may be obtainedelectronically from www.eqt.com.au.


Valuation of the FundThe value of the investments of the Fund is generallydetermined every Business Day in accordance with theConstitution. The NAV per unit is generally determined on eachBusiness Day on the basis of the value of the investments of theFund referable to Class B units (after taking into account anyliabilities), in accordance with the Constitution.

For example, the Application Price of Class B units is based onthe NAV of Class B units divided by the number of Class B unitson issue. Equity Trustees can also make an allowance fortransaction costs required for buying investments indetermining the Application Price of a Class B unit. Thisallowance is known as a Buy spread. As at the date of this PDSthe Buy spread is 0.30%. Please refer to the ’Additionalexplanation of fees and expenses section for additionalinformation on Buy spreads.

Joint account OperationFor joint accounts, each signatory must sign withdrawalrequests. Please ensure both signatories sign the declaration inthe Application Form. Joint accounts will be held as jointtenants.

Authorised signatoriesYou can appoint a person, partnership or company as yourauthorised signatory. To do so, please nominate them on theinitial Application Form and have them sign the relevantsections. If a company is appointed, the powers extend to anydirector and officer of the company. If a partnership isappointed, the powers extend to all partners. Suchappointments will only be cancelled or changed once wereceive written instructions from you to do so.

Once appointed, your authorised signatory has full access tooperate your investment account for and on your behalf. Thisincludes the following:

• making additional investments;

• requesting income distribution instructions to be changed;

• withdrawing all or part of your investment;

• changing bank account details;

• enquiring and obtaining copies of the status of yourinvestment; and

• having online account access to your investment. If you doappoint an authorised signatory:

• you are bound by their acts;

• you release, discharge and indemnify us from and againstany losses, liabilities, actions, proceedings, account claimsand demands arising from instructions received from yourauthorised representatives; and

• you agree that any instructions received from yourauthorised representative shall be complete satisfaction ofour obligations, even if the instructions were made withoutyour knowledge or authority.

Electronic instructionsIf an investor instructs Equity Trustees by electronic means, suchas facsimile, email or internet the investor releases EquityTrustees from and indemnifies Equity Trustees against, all lossesand liabilities arising from any payment or action Equity Trusteesmakes based on any instruction (even if not genuine) that EquityTrustees receives by an electronic communication bearing theinvestor’s investor code and which appears to indicate to EquityTrustees that the communication has been provided by theinvestor eg. A signature which is apparently the investor’s andthat of an authorised signatory for the investment or an emailaddress which is apparently the investor’s. The investor alsoagrees that neither they nor anyone claiming through them hasany claim against Equity Trustees or the Fund in relation to suchpayments or actions. There is a risk that a fraudulent withdrawalrequest can be made by someone who has access to aninvestor’s investor code and a copy of their signature or emailaddress.


8. Keeping Track of Your InvestmentEnquiriesIf you have any questions regarding the Fund you can callTribeca on +61 2 9640 2600 or visit www.tribecaip.com.au

Complaints resolutionEquity Trustees has an established complaints handling processand is committed to properly considering and resolving allcomplaints. If you have a complaint about your investment,please contact us on:

Phone: 1300 133 472Post: Equity Trustees LimitedGPO Box 2307, Melbourne VIC 3001Email: [email protected]

We will acknowledge receipt of the complaint as soon aspossible and in any case within 3 days of receiving thecomplaint. We will seek to resolve your complaint as soon aspracticable but not more than 45 days after receiving thecomplaint.

If you are not satisfied with our response to your complaint, youmay be able to lodge a complaint with the FinancialOmbudsman Service (“FOS”) or from 1 November 2018, directthe complaint to the Australian Financial Complaints Authority(“AFCA”), which will replace FOS.

Contact details are:Online: www.fos.org.au or www.afca.org.auPhone: FOS on 1800 367 287 or AFCA on 1800 931 678Email: [email protected] or [email protected]: GPO Box 3, Melbourne VIC 3001.

The external dispute resolution body is established to assist youin resolving your complaint where you have been unable to doso with us. However, it’s important that you contact us first.

ReportsWe will make the following statements available to all investors;

• A transaction confirmation statement, showing a change inyour unit holding (provided when a transaction occurs or onrequest).

• The relevant fund’s annual audited accounts for each periodended 30 June.

• Annual distribution, tax and confirmation of holdingsstatements for each period ended 30 June.

• Annual report detailing each of the following:

• the actual allocation to each asset type;

• the key service providers if they have changed since thelatest report given to investors, including any change intheir related party status.

The latest annual report will be available online from or availableon the investor portal https://mymanagedfunds.com.au/Funds/Tribeca/Login.

The following information is available on the investor portaland/or is disclosed monthly:

• the current total NAV of the Fund and the redemption valueof a unit in each class of units as at the date the NAV wascalculated;

• key service providers if they have changed since last reportgiven to investors, including any change to their relatedparty status;

• the monthly or annual investment returns over at least afive-year period (or, if the Fund has not been operating forfive years, the returns since its inception);

• for each of the following matters since the last report onthose matters:

• the net return on the Fund’s assets after fees, costs andtaxes;

• any material change in the Fund’s risk profile;

• any material change in the Fund’s strategy; and

• any change in the individuals playing a key role ininvestment decisions for the Fund.

By applying to invest in the Fund, you agree that, to the extentpermitted by law, any periodic information which is required tobe given to you under the Corporations Act or ASIC policy canbe given to you by making that information available on EquityTrustees’ or Tribeca’s website.

Please note that Indirect Investors who access the Fund throughan IDPS will receive reports directly from the IDPS Operator andnot from the Responsible Entity. However, Equity Trustees will beproviding the reports described above to relevant IDPSOperators. Indirect Investors should refer to their IDPS Guide forinformation on the reports they will receive regarding theirinvestment.

The Tribeca Alpha Plus Fund is not currently a disclosing entityas defined by the Corporations Act. If it becomes a disclosingentity (generally this will occur when there are 100 investors ormore), it will be subject to regular reporting and disclosureobligations. Investors will have a right to obtain a copy, free ofcharge, of any of the following documents:

• the most recent annual financial report lodged with ASIC bythe Fund;

• any half yearly financial report lodged with ASIC by the Fundafter the lodgement of that annual financial report butbefore the date of the PDS; and

• any continuous disclosure notices lodged given by the Fundafter the lodgement of that annual financial report butbefore the date of this PDS.

These documents can also be obtained from or inspected at anASIC office.


9. Fees and Other CostsThe warning statement below is required by law to be displayed at the beginning of the ‘Fees and other costs’ section of productdisclosure statements for managed investment products. The example given in the warning statement does not relate to anyinvestments described within this PDS.

DID YOU KNOW?Small differences in both investment performance and fees and costs can have a substantial impact on your long-term returns.

For example, total annual fees and costs of 2% of your account balance rather than 1% could reduce your final return by up to20% over a 30 year period (for example, reduce it from $100,000 to $80,000).

You should consider whether features such as superior investment performance or the provision of better member servicesjustify higher fees and costs.

You may be able to negotiate to pay lower contribution fees and management 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 fees based on your own circumstances, the Australian Securities andInvestments Commission (ASIC) website (www.moneysmart.gov.au) has a managed funds fee calculator to help you check outdifferent fee options.

You should read all the information about fees and costs because it is important to understand their impact on your investment. ForIndirect Investors, the fees listed in the ‘Fees and other costs’ section of this PDS are in addition to any other fees and charges chargedby your IDPS Operator.

The following table shows fees and other costs that you may be charged. These fees and costs may be deducted from your money,from the returns on your investment or from the assets of the Fund as a whole. Information about taxation is set out in Section 10 ofthis document.

Type of fee or cost Amount How and when paid

Fees when your money moves in or out of the Fund1

Establishment feeThe fee to open your investment

Nil There is no establishment fee payablewhen you set up your investment in theFund.

Contribution feeThe fee on each amount contributed toyour investment

Nil There is no contribution fee payablewhen you invest in the Fund.

Withdrawal feeThe fee on each amount you take out ofyour investment

Nil There is no withdrawal fee payable whenyou withdraw investments from the Fund.

Exit feeThe fee to close your investment

Nil There is no exit fee payable when youclose your investment in the Fund.

Management costs2

The fees and costs for managing yourinvestment*

Management fees: 0.97%* (inclusive ofthe net impact of GST and RITC) p.a. ofthe NAV of the Fund

Management costs (excluding theperformance fee) are calculated andaccrued daily based on the NAV of theFund referrable to Class B units. Theaccrued fees are paid in arrears from theFund assets referable to Class B unitswithin 14 days of the end of each month.

Performance fees Plus

A performance fee charged by theInvestment Manager at 15.38% (inclusiveof the net impact of GST and RITC) of theinvestment return above the FundBenchmark.

This fee may be negotiated directlybetween the investor and the InvestmentManager and is not paid from the assetsof the Fund referable to Class B units orreflected in the unit price.

1 * This fee can be negotiated. See “Differential fees” below.

Additional Explanation of Fees and CostsWhat do the Management Costs pay for?Management Costs comprise the additional fees or costs that aunitholder incurs by investing in the Fund rather than byinvesting directly in the assets.

In addition, Management Costs do not include transactionaland operational costs (i.e. costs associated with investing theunderlying assets, some of which may be recovered throughBuy/Sell Spreads).


Management feesThe management fees of 0.92% p.a. of the NAV of the Fund ispayable to the Responsible Entity of the Fund for managing theassets and overseeing the operations of the Fund. Themanagement fees are accrued daily and paid from the Fundmonthly in arrears and reflected in the unit price. As at the dateof this PDS, ordinary expenses such as investment managementfees, custodian fees, administration and audit fees, and otherordinary expenses of operating the Fund are covered by themanagement fees.

The management fees shown above do not includeextraordinary expenses (if they are incurred in future), such aslitigation costs or the costs of convening member meetings andother costs.

Performance feesIn some circumstances, the Investment Manager may negotiatea performance fee arrangement with investors. Investors who fallwithin the definition of a Wholesale Client or Wholesale Investor,and who have negotiated a separate performance feearrangement with the Investment Manager, will have beenissued Class B units. The agreement between the InvestmentManager and the Class B investor will set out the method ofdetermining performance fees. Generally, the performance fee(if any) will be recovered by the Investment Manager directlyfrom each investor as at 30 June and 31 December and is not

reflected in the unit price for Class B units. The performance feearrangement may be negotiated directly with the InvestmentManager. For further information please contact Tribeca on+612 9640 2600.

The performance fee will be calculated monthly on anyoutperformance (or underperformance) of the opening unitvalue of the investors holding in the Fund against theperformance hurdle. Any such outperformance accruals atperiod end will be payable by the Class B investor to theInvestment Manager. Any underperformance during the periodmust be recouped before the Investment Manager becomesentitled to a performance fee for the period (this is known as ahigh water mark).

Based on the current calculation methodology for theperformance fees, the Responsible Entity has estimated that thetypical ongoing performance fees payable per annum may be$0 assuming an average account balance of $100,000 during theyear. Prior periods have been taken into account in calculatingthis estimate. However, this is not a forecast as the actualperformance fee for the current and future financial years maydiffer. The Responsible Entity cannot guarantee thatperformance fees will remain at their previous level or that theperformance of the Fund will outperform the benchmark.

An example of how the performance fee may be calculated isset out below:

Investment return (%) p.a. inexcess of the FundBenchmark (after deductingmanagement costs,excluding the performancefee)* Opening monthly value Performance Fee Example performance fee ($)

-1.00% $250,000.00 15.38% $0.00

0.00% $250,000.00 15.38% $0.00

1.00% $250,000.00 15.38% $384.50

2.00% $250,000.00 15.38% $769.00

4.00% $250,000.00 15.38% $1,538.00

6.00% $250,000.00 15.38% $2,307.00

* Assuming no change in Fund size over the period and assuming no applications and withdrawals.

Please note that in the above table:

• Investment returns have been prepared by simple addition or deduction of the investment return (before calculating theperformance fee) of Class B units less the return of the S&P/ASX 200 Accumulation Index.

• Assumes no cash flows during the month.

• The examples are provided to assist investors to understand the effect of the performance fee on investment returns.

• The investment return is assumed to accrue evenly over the course of each performance fee period in the year.

• The investment returns are for illustrative purposes only and are not intended to be indicative of the future investment returns forClass B units;

• The investment return does not include tax payable on the investment return.

A separate fee arrangement may be negotiated from time to time with certain investors who are Wholesale Clients or WholesaleInvestors and consequently performance fee calculation characteristics such as, and not limited to, calculation methodology,maximum value, time periods, hurdles, and fee rates may vary.

Transactional and operational costsIn managing the assets of the Fund, the Fund may incurtransaction costs such as brokerage, settlement costs, clearingcosts and applicable stamp duty when assets are bought andsold. This generally happens when the assets of a fund arechanged in connection with day-to-day trading or when thereare applications or withdrawals which cause net cash flows intoor out of a fund.

The Buy/Sell Spread reflects the estimated transaction costsincurred in buying or selling assets of the Fund when investorsinvest in or withdraw from the Fund. The Buy/Sell Spread is anadditional cost to the investor but is incorporated into the unitprice and incurred when an investor invests in or withdraws fromthe Fund and is not separately charged to the investor. TheBuy/Sell Spread is paid into the Fund and not paid to EquityTrustees or the Investment Manager. The estimated Buy/SellSpread is 0.30% upon entry and 0.30% upon exit ($30 for each


$10,000 invested or withdrawn). The Buy/Sell Spread can bealtered by the Responsible Entity at any time. The ResponsibleEntity may also waive the Buy/Sell Spread in part or in full at itsdiscretion.

Transactional costs which are incurred other than in connectionwith applications and withdrawals arise through the day-to-daytrading of the Fund’s assets and are reflected in the Fund’s unitprice. As these costs are factored into the Net Asset Value of theFund and reflected in the unit price, they are an additionalimplicit cost to the investor and are not a fee paid to theResponsible Entity. These costs can arise as a result of bid-offerspreads (the difference between an asset’s bid/buy price andoffer/ask price) being applied to securities traded by the Fund.Liquid securities generally have a lower bid-offer spread whileless liquid assets have a higher bid-offer spread reflecting thecompensation taken by market makers in providing liquidity forthat asset.

During the financial year ended 30 June 2018, the totaltransaction costs for the Fund were estimated to be 2.08% of theNAV of the Fund, of which 1.73% of these transaction costs wererecouped via the Buy/Sell Spread, resulting in a net transactionalcost to the Fund of 2.05% p.a.

However, such costs for future years may differ.

IDPSFor Indirect Investors, the fees listed in the ‘Fees and othercosts’ section of this PDS are in addition to any other fees andcharges by your IDPS Operator.

Differential feesThe Responsible Entity or the Investment Manager may fromtime to time negotiate a different fee arrangement (by way of arebate or waiver of fees) with investors who are WholesaleClients in Australia or Wholesale Investors in New Zealand.

Payments to IDPS operatorsSubject to the law, annual payments may be paid to some IDPSOperators because they offer the Fund on their investmentmenus. Product access is paid by BNP Paribas AssetManagement out of its management fees and is not anadditional cost to the investor. If the payment of annual fees toIDPS Operators is limited or prohibited by the law, EquityTrustees will ensure the payment of such fees is reduced orceased.

Can the fees change?Yes, all fees can change without investor consent. In mostcircumstances the Constitution defines the maximum fees thatcan be charged for fees described in this PDS. We have the rightto recover all proper and reasonable expenses incurred inmanaging the Fund and as such these expenses may increase ordecrease accordingly. We will generally provide investors with atleast 30 days notice of any proposed change to theManagement Costs. Expense recoveries and Buy/Sell Spreadsmay change without notice, for example, when it is necessary toprotect the interests of existing members and if permitted bylaw.

GSTAll fees and other costs quoted include GST less any reducedinput tax credits.

Managed investment products - Example of annual fees and costs for the FundThis table gives an example of how the fees and costs for the Fund can affect your investment over a 1 year period. You should use thistable to compare this product against other managed investment products.

Example – Tribeca Alpha Plus Fund - Class B Units

BALANCE OF $50,000 WITH A CONTRIBUTION OF $5,000 DURING THE YEAR

Contribution Fees Nil For every additional $5,000 you put in, you will be charged $0

Plus

ManagementCosts comprisingof:

0.97% p.a And, for every $50,000 you have in the Fund you will be charged $485 each year

Management fees 0.97% p.a. $485

Plus

Performance fee

0% p.a. $0

EqualsCost of Fund

If you had an investment of $50,000 at the beginning of the year and you put in an additional$5,000 during that year, you would be charged fees of:$485**What it costs you will depend on the fees you negotiate.

* This example assumes the $5,000 contribution occurs at the end of the year, therefore management costs are calculated using the$50,000 balance only. Indirect costs are not a fee earned by or paid to the Responsible Entity or the Investment Manager.

** Additional fees may apply. Please note that this example does not capture all the fees and costs that may apply to you such as theBuy/Sell Spread. If you have consulted a financial adviser, you may pay additional fees. You should refer to the Statement of Advice orFinancial Services Guide provided by your financial adviser in which details of the fees are set out.

ASIC provides a fee calculator on www.moneysmart.gov.au, which you may use to calculate the effects of fees and costs on yourinvestment in the Fund.

The performance fees stated in this table shows the actual performance fees for the financial year ended 30 June 2018 as apercentage of the Fund’s average NAV. The performance of the Fund, and the performance fees, may be higher or lower or notpayable in the future. As a result, the management costs may differ from the figure shown in the table. It is not a forecast of theperformance of the Fund or the amount of the performance fees in the future. See also under the heading “Performance fees” our


estimated typical ongoing performance fee payable per annum. The actual performance fees for the current financial year and forfuture financial years may differ. For more information on the performance history of the Fund, visit Equity Trustees’ website atwww.eqt.com.au/insto. Past performance is not a reliable indicator of future performance.


10. TaxationThe following information summarises some of the Australiantaxation issues you may wish to consider before making aninvestment in the Fund, and assumes that an investor holds theirunits in the Fund on capital account and is not considered to becarrying on a business of investing, trading in investments orinvesting for the purpose of profit making by sale. Theinformation should be used as a guide only and does notconstitute professional tax advice as individual circumstancesmay differ.

Australian Taxation Treatment of the FundGeneralThe Fund is an Australian resident trust estate for Australian taxpurposes. Therefore, the Fund is required to determine its netincome (taxable income) for the year of income. On the basisthat investors are presently entitled to all of the Fund’sdistributable income (which is the Responsible Entity’sintention), and the Fund is not a public trading trust, the Fundshould be taxed as a flow-through trust for tax purposes. Thismeans that investors should be taxed on their share of theFund’s net taxable income, and the Fund should not be subjectto Australian income tax.

In the case where the Fund makes a loss for Australian taxpurposes, the Fund cannot distribute the tax loss to investors.However, the tax loss may be carried forward by the Fund foroffset against taxable income of the Fund in subsequent years,subject to the operation of the trust loss rules.

Deemed Capital Gains Tax (“CGT”) electionEligible MITs may make an irrevocable election to apply adeemed capital account treatment for gains and losses ondisposal of certain eligible investments (including equities andunits in other trusts, but excluding derivatives and foreignexchange contracts).

The Fund has made the election for deemed capital accounttreatment. As such, subject to the Fund continuing to meet theeligibility requirements to be a MIT, gains and losses on eligibleinvestments will be treated on capital account. Hence, where theFund realised a capital gain on the disposal of an asset, the Fundmay be entitled to take into account the discount capital gainconcession in determining the amount of the capital gain that isincluded in the Fund’s net income.

Taxation of Financial Arrangements (“TOFA”)The TOFA rules may apply to certain “financial arrangements”held by the Fund. Broadly, the TOFA regime seeks to recognise“sufficiently certain” returns from financial arrangements on anaccruals basis for tax purposes rather than on a realisation basis.Where returns from financial arrangements (includingderivatives) are not “sufficiently certain” they will continue to berecognised on a realisation basis, unless specific TOFA taxtiming elections are made.

The Administrator and the Investment Manager of the Fund willassist the Responsible Entity in complying with the TOFA rules.

Taxation ReformThe tax information included in this PDS is based on the taxationlegislation and administrative practice as at the issue date of thisPDS, together with proposed changes to the taxation legislationas announced by the Government.

However, the Australian tax system is in a continuing state ofreform, and based on the Government’s reform agenda, reformis likely to escalate rather than diminish. Any reform of a taxsystem creates uncertainty as to the full extent of announcedreforms, or uncertainty as to the meaning of new law that isenacted pending interpretation through the judicial process.

Current reforms in progress include the new tax system for MITs(“Attribution MITs”), a TOFA deregulation review, and measuresin the 2015/16 Federal Budget which may impact on the taxposition of a Fund and its investors. Accordingly, it will benecessary to closely monitor the progress of these reforms, andinvestors should seek their own professional advice, specific totheir own circumstances, of the taxation implications ofinvesting in a Fund.

OECD CRSThe Organisation for Economic Co-operation and DevelopmentCommon Reporting Standard (“the OECD CRS”) for theautomatic exchange of information is a single global standardfor the collection and reporting of information by FinancialInstitutions (as defined for CRS purposes) on non-residents. TheCRS has come into effect in Australia on 1 July 2017. TheResponsible Entity will continue to monitor developments in thisregard.

Tax File Number (“TFN”) and Australian BusinessNumber (“ABN”)It is not compulsory for an investor to quote their TFN or ABN. Ifan investor is making this investment in the course of a businessor enterprise, the investor may quote an ABN instead of a TFN.Failure by an investor to quote an ABN or TFN or claim anexemption may cause the Responsible Entity to withhold tax atthe top marginal rate, plus the Medicare Levy, on grosspayments including distributions of income to the investor. Theinvestor may be able to claim a credit in their tax return for anyTFN or ABN tax withheld. Collection of TFNs is permitted undertaxation and privacy legislation.

By quoting their TFN or ABN, the investor authorises theResponsible Entity to apply it in respect of all the investor’sinvestments with Equity Trustees. If the investor does not wantto quote their TFN or ABN for some investments, EquityTrustees should be advised.

Australian Taxation of Australian ResidentInvestorsDistributionsEach Australian resident investor will be subject to taxation ontheir proportionate share of the net taxable income of the Fundin proportion to their share of the distributable income of theFund. Such income will retain its character as it flows through theFund and may include amounts of Australian franked andunfranked dividends, interest and other income and capitalgains. Generally, an Australian resident investor’s entitlement(share) of the net income of a Fund for a year of income,including amounts that are received in a subsequent year ofincome or which are reinvested, forms part of their assessableincome for that year.

The tax consequences for investors of receiving distributionsfrom the Fund depend on the components of the distributableincome to which investors have become entitled.

Investors who become entitled to a distribution from the Fund inrespect of a financial year will receive an annual tax statementdetailing all relevant taxation information concerningdistributions, including entitlement to franking credits andreturns of capital.

If an investor’s share of the net income of the Fund includes anamount that consists of discount capital gains derived by theFund, the investor needs to first ‘gross up’ the discount capitalgain (in essence to take account of the reduction in the capitalgain that the Fund obtained). However, individual, trust andcomplying superannuation fund investors may then be entitled,in determining the net capital gain that is to be included in their


assessable income, to the discount capital gains concessions.Further, investors may be able to offset other capital losses theymay have against their share of the capital gains included in thenet income of the Fund (after grossing up any discount capitalgains).

Under current practice, distributions of non-assessable amountsare generally not subject to tax in the hands of investors holdingtheir units on capital account. Broadly, the receipt of certainnon-assessable amounts will generally reduce the cost base ofthe Australian resident investor’s units in the Fund for CGTpurposes. This results in either an increased capital gain, or areduced capital loss, upon the subsequent disposal of theinvestor’s units in the Fund. However, in certain circumstances,such amounts may be assessable to an investor rather thangiving rise to a CGT cost base adjustment. Investors should haveregard to the ATO’s views expressed in Income Tax Ruling IT2512, ATOID 2011/58 and ATO Guidance on the proposed newtaxation system for MITs, and seek professional advice ifnecessary.

To the extent that the distributed non-assessable amountsconsist of the discount capital gain concession, no adjustmentto the cost base or reduced cost base of the underlyinginvestment in that Fund should be required. However, investorsthat are companies and complying superannuation funds maynot receive all or part of the benefit of the discount capital gainsconcessions. This is because companies are not entitled to thediscount concessions and the discount concession rate applyingto complying superannuation funds is lower than that whichapplies to trusts and individuals.

An investor may receive their share of the net income of theFund through distributions made during the year or where theyhave made a large withdrawal from the Fund, in which case theirwithdrawal proceeds may include a component of distributableincome. In addition, because Australian investors can move intoand out of the Fund at different points in time, there is the riskthat taxation liabilities in respect of gains that have benefitedpast investors may have to be met by subsequent investors.

Franking Credits and Franked DividendsIncome distributions from the Fund may include an entitlementto franked dividends. Generally, investors should include thefranked dividends and the franking credits (imputation credits)they receive in their assessable income.

Certain additional requirements, including the 45 day holdingperiod rule may need to be satisfied in order to obtain frankingcredits in relation to dividends. The investor’s particularcircumstances (and that of the Fund) will be relevant todetermine whether the investor is entitled to any franking creditsin respect of the investor’s share of the franked dividends. Anyexcess franking credits may be refundable to some investors,such as individuals and complying superannuation funds.

Disposal of Units by Australian Resident InvestorsIf an Australian resident investor transfers or redeems their unitsin the Fund, this will constitute a disposal for tax purposes.

Where an investor holds their units in the Fund on capitalaccount, a capital gain or loss on the disposal may arise andeach investor should calculate their capital gain or lossaccording to their own particular facts and circumstances. Asnoted above, proceeds on disposal may include a component ofdistributable income. In calculating the taxable amount of acapital gain, a discount of 50% for individuals and trusts or 331/3% for complying Australian superannuation funds may beallowed where the units in the Fund have been held for morethan 12 months. No CGT discount is available to corporateinvestors.

Any capital losses arising from the disposal of the investmentmay be used to offset other capital gains the investor may havederived. Net capital losses may be carried forward for offsetagainst capital gains of subsequent years but may not be offsetagainst ordinary income.

The discount capital gains concession may be denied in certaincircumstances where an investor (together with associates) holds10% or more of the issued units of the Fund, the Fund has lessthan 300 beneficiaries and other requirements are met. Investorswho together with associates are likely to hold more than 10% ofthe units in the Fund should seek advice on this issue.

Australian Taxation of Non-Resident InvestorsTax on IncomeAustralian withholding tax may be withheld from distributions ofAustralian source income and gains paid to a non-residentinvestor. The various components of the net income of the Fundwhich will be regarded as having an Australian source mayinclude dividends paid by Australian companies, Australiansourced interest and Australian sourced gains.

We recommend that non-resident investors seek independenttax advice before investing, taking into account their particularcircumstances and the provisions of any relevant DoubleTaxation Agreement/ Exchange of Information Agreement(“EOI”) between Australia and their country of residence.

Disposal of Units by Non-Resident InvestorsBased on the Fund’s investment profile, generally non-residentinvestors holding their units on capital account should not besubject to Australian capital gains tax on the disposal of units inthe Fund unless the units were capital assets held by the investorin carrying on a business through a permanent establishment inAustralia. Australian tax may apply in certain circumstances if thenon-resident holds their units on revenue account. Werecommend that non-resident investors seek independent taxadvice in relation to the tax consequences of the disposal oftheir units.

Attribution Managed Investment Trusts (“AMIT”)The Constitution provides, where separate classes of units areon issue in respect of the Fund, for income allocation to takeinto account any impact of the currency overlay that may be inplace for the respective classes. The quantum of the distributionis sought to be determined on a standalone basis. Prior to theAMIT multi-class election being made (as described below), theFund is treated as a single taxpayer. As any separate classes ofunits would not currently be treated as separate taxpayers, it ispossible under the current taxation regime that the tax characterof distributions made to a particular class may be impacted bytransactions associated with another class. The Constitutionprovides a mechanism to seek to minimise this outcome. Insofaras possible, where separate classes of units are on issue, theConstitution seeks to quarantine the income associated with aparticular class to that class.

In May 2016, the Australian Federal Government enactedlegislation establishing a new tax system for AttributionManaged Investment Trusts (AMITs). Trusts that meet theeligibility criteria to be an AMIT may elect into the AMIT rules.Equity Trustees is intending that an election into AMIT be madein respect of the Fund and thereafter the following will apply:

Fair and reasonable attribution: Each year, the Fund’sdetermined trust components of assessable income, exemptincome, 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 proportionallybased on each investor’s present entitlement to the income ofthe Fund.


Unders or overs adjustments: Where the Fund’s determinedtrust 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 adjustedin the year of discovery.

Cost base adjustments: Where the distribution made is less than(or more than) certain components attributed to investors, thenthe cost base of an investor’s units may be increased (ordecreased). Details of cost base adjustment will be included onan investor’s annual tax statement, referred to as an AMITMember Annual Statement (AMMA).

Large redemptions: In certain circumstances, gains may beattributed to a specific investor, for example, gains on disposalof assets to fund a large redemption being attributed to theredeeming investor.

Multi-class AMITs: A choice is available to elect to treat separateclasses of units as separate AMITs. Equity Trustees is intendingthat the AMIT multi-class election be made in respect of theFund.

Penalties: In certain circumstances (e.g. failure to comply withcertain AMIT rules), specific penalties may be imposed.

The new rules are intended to reduce complexity, increasecertainty and reduce compliance costs for managed investmenttrusts and their investors.


11. Other Important InformationConsentsTribeca has given and, at the date of this PDS, has notwithdrawn, its written consent:

• to be named in this PDS as the Investment Manager of theFund; and

• to the inclusion of the statements made about it, the Fundof which it is described as Investment Manager and thetables and statistical information, which are specificallyattributed to it, in sections 1, 2, 3, 4, 5, 6 and 8.

Tribeca has not otherwise been involved in the preparation ofthis PDS and has not caused or otherwise authorised the issue ofthis PDS. Tribeca and its employees and officers do not acceptany responsibility arising in any way for errors or omissions fromthis PDS, other than in relation to the statements for which it hasprovided its consent.

The AdministratorJ.P.Morgan Chase Bank, N.A has given and, at the date of thisPDS, has not withdrawn its written consent to be named in thisPDS as the custodian and administrator of the Fund. J.P.Morganhas not been involved in the preparation of this PDS and has notcaused or otherwise authorised the issue of this PDS. J.P.Morganhas not independently verified the information contained in thisPDS and, accordingly, accepts no responsibility for the accuracyor completeness of the information. J.P.Morgan does notguarantee the success or the performance of the Fund nor therepayment of capital or any particular rate of capital or incomereturn.

Non-listing of unitsThe units of the Fund are not listed on any stock exchange andno application will be made to list the units of the Fund on anystock exchange.

Termination of the FundThe Responsible Entity may resolve at any time to terminate andliquidate the Fund (if it provides investors with notice) inaccordance with the Constitution and the Corporations Act.Upon termination and after conversion of the assets of the Fundinto cash and payment of, or provision for, all costs (includinganticipated costs) of winding up the Fund, expenses andliabilities (actual and anticipated), the net proceeds will bedistributed pro-rata among all investors according to the sum ofthe Withdrawal Price for the units they hold in the Fund againstthe aggregate Withdrawal Price for all the units on issue in theFund.

Our legal relationship with youEquity Trustees’ responsibilities and obligations, as theResponsible Entity of the Fund, are governed by theConstitution of the Fund, as well as the Corporations Act andgeneral trust law. The Constitution of the Fund contains anumber of provisions relating to the rights, terms, conditionsand obligations imposed on both Equity Trustees, as theResponsible Entity of the Fund, and investors.

Equity Trustees may amend the Constitution if it considers thatthe amendment will not adversely affect investors’ rights.Otherwise the Constitution may be amended by way of a specialresolution of investors.

To the extent that any contract or obligation arises in connectionwith the acceptance by Equity Trustees of an application orreliance on this PDS by an investor, any amendment to theConstitution may vary or cancel that contract or obligation.Further, that contract or obligation may be varied or cancelled

by a deed executed by Equity Trustees with the approval of aspecial resolution of investors, or without that approval if EquityTrustees considers the variation or cancellation will notmaterially and adversely affect investor’s rights.

A copy of the Constitution of the Fund is available, free ofcharge, on request from Equity Trustees.

Compliance planEquity Trustees has prepared and lodged a compliance plan forthe Fund with ASIC. The compliance plan describes theprocedures used by Equity Trustees to comply with theCorporations Act and the Constitution of the Fund. Each yearthe compliance plan for the Fund is audited and the audit reportis lodged with ASIC.

Unit pricing discretions policyEquity Trustees has developed a formal written policy in relationto the guidelines and relevant factors taken into account whenexercising any discretion in calculating unit prices (includingdetermining the value of assets and liabilities). A copy of thepolicy and, where applicable and to the extent required, anyother relevant documents in relation to the policy (such asrecords of any discretions which are outside the scope of, orinconsistent with, the unit pricing policy) will be made availableto investors free of charge on request.

ClassesUnits may be offered in the Fund in one or more classes asdetermined by Equity Trustees from time to time. Class B unitswill be issued to investors via this PDS. The Responsible Entityhas the discretion to issue further classes of units. TheResponsible Entity must treat members who hold interests ofthe same class equally, and members who hold interests ofdifferent classes fairly.

Certain investors, who are Wholesale Clients, may negotiate aseparate fee arrangement in respect of the performance fee thatmay be payable to the Investment Manager. Refer to the‘Additional explanation of fees and expenses’ section for furtherinformation on the performance fee.

IndemnityEquity Trustees, as the responsible entity of the Fund, isindemnified out of the Fund against all liabilities incurred by it inperforming or exercising any of its powers in the properperformance of its duties in relation to the Fund. To the extentpermitted by the Corporations Act, this indemnity includes anyliability incurred as a result of any act or omission of a delegateor agent appointed by the Responsible Entity. Subject to thelaw, Equity Trustees may retain or pay out from the assets of theFund any sum necessary to affect such an indemnity.

Anti-Money Laundering and Counter TerrorismFinancing (“AML/CTF”)Australia’s AML/CTF laws require Equity Trustees to adopt andmaintain an Anti-Money Laundering and Counter TerrorismFinancing programme. A fundamental part of the AML/CTFprogramme is that Equity Trustees knows certain informationabout investors in the Fund.

To meet this legal requirement, we need to collect certainidentification information and documentation (“KYCDocuments”) from new investors. Existing investors may also beasked to provide KYC Documents as part of a re-identificationprocess to comply with the AML/CTF laws. Processing ofapplications will be delayed or refused if investors do notprovide the KYC Documents when requested.


Under the AML/CTF laws, Equity Trustees may be required tosubmit reports to AUSTRAC. This may include the disclosure ofyour personal information. Equity Trustees may not be able totell you when this occurs.

Neither Equity Trustees nor Tribeca is liable for any loss you maysuffer because of compliance with the AML/CTF laws.

The ConstitutionThe Fund is governed by the Constitution. The Constitution setsout how the Fund must operate and, together with the PDS, theCorporations Act and other laws, regulates the ResponsibleEntity’s legal relationship with investors. If you invest in the Fund,you agree to be bound by the terms of the PDS and theConstitution. You can request a copy of the Constitution, free ofcharge. Please consider these documents before investing inthe Fund.

We may amend the Constitution from time to time inaccordance with the provisions in the Constitution and theCorporations Act.

Your privacyThe Australian Privacy Principles contained in the Privacy Act1988 (Cth) (“Privacy Act”) regulate the way in which we collect,use, disclose, and otherwise handle your personal information.Equity Trustees is committed to respecting and protecting theprivacy of your personal information, and our Privacy Policydetails how we do this.

It is important to be aware that, in order to provide our productsand services to you, Equity Trustees may need to collectpersonal information about you and any other individualsassociated with the product or service offering. In addition topractical reasons, this is necessary to ensure compliance withour legal and regulatory obligations (including under theCorporations Act, the AML/CTF Act and taxation legislation). Ifyou do not provide the information requested, we may not beable to process your application, administer, manage, invest,pay or transfer your investment(s).

You must therefore ensure that any personal information youprovide to Equity Trustees is true and correct in every detail. Ifany of this personal information (including your contact details)changes, you must promptly advise us of the changes in writing.While we will generally collect your personal information fromyou, your broker or adviser or the Investment Manager andAdministrator directly, we may also obtain or confirminformation about you from publicly available sources in order tomeet regulatory obligations.

In terms of how we deal with your personal information, EquityTrustees will use it for the purpose of providing you with ourproducts and services and complying with our regulatoryobligations. Equity Trustees may also disclose it to othermembers of our corporate group, or to third parties who wework with or engage for these same purposes. Such third partiesmay be situated in Australia or offshore, however we takereasonable steps to ensure that they will comply with the PrivacyAct when collecting, using or handling your personalinformation.

The types of third parties that we may disclose your informationto include, but are not limited to:

• stockbrokers, financial advisers or adviser dealer groups,their service providers and/or any joint holder of aninvestment;

• those providing services for administering or managing theFund, including the Investment Manager, Custodian andAdministrator, auditors, or those that provide mailing orprinting services;

• our other service providers;

• regulatory bodies such as ASIC, ATO, APRA and AUSTRAC;and

• other third parties who you have consented to us disclosingyour information to, or to whom we are required orpermitted by law to disclose information to.

Equity Trustees or the Investment Manager may from time totime provide you with direct marketing and/or educationalmaterial about products and services they believe may be ofinterest to you. You have the right to “opt out” of suchcommunications by contacting us using the contact detailsbelow.

In addition to the above information, Equity Trustees’ PrivacyPolicy contains further information about how we handle yourpersonal information, and how you can access information heldabout you, seek a correction to that information, or make aprivacy-related complaint.

Full details of Equity Trustees’ Privacy Policy is available atwww.eqt.com.au. You can also request a copy by contactingEquity Trustees’ Privacy Officer on +61 3 8623 5000 or by emailto [email protected].

Information on underlying investmentsInformation regarding the underlying investments of the Fundwill be provided to an investor of the Fund on request, to theextent Equity Trustees is satisfied that such information isrequired to enable the investor to comply with its statutoryreporting obligations. This information will be supplied within areasonable timeframe having regard to these obligations.

Foreign Account Tax Compliance Act (“FATCA”)In April 2014, the Australian Government signed anintergovernmental agreement (“IGA”) with the United States ofAmerica (“U.S.”), which requires all Australian financialinstitutions to comply with the FATCA Act enacted by the U.S. in2010.

Under FATCA, Australian financial institutions are required tocollect and review their information to identify U.S. residentsand U.S controlling persons that invest in assets throughnon-U.S. entities. This information is reported to the AustralianTaxation Office (“ATO”). The ATO may then pass thatinformation onto the U.S. Internal Revenue Service.

In order to comply with the FATCA obligations, we may requestcertain information from you. Failure to comply with FATCAobligations may result in the Fund, to the extent relevant, beingsubject to a 30% withholding tax on payment of U.S. income orgross proceeds from the sale of certain U.S. investments. If theFund suffers any amount of FATCA withholding and is unable toobtain a refund for the amounts withheld, we will not berequired to compensate investors for any such withholding andthe effect of the amounts withheld will be reflected in the returnsof the Fund.

Common Reporting Standard (“CRS”)The CRS is developed by the Organisation of EconomicCo-operation and Development and requires certain financialinstitutions resident in a participating jurisdiction to documentand identify reportable accounts and implement due diligenceprocedures. These financial institutions will also be required toreport certain information on reportable accounts to theirrelevant local tax authorities.

Australia signed the CRS Multilateral Competent AuthorityAgreement and has enacted provisions within the domestic taxlegislation to implement CRS in Australia. Australian financialinstitutions need to document and identify reportable accounts,implement due diligence procedures and report certain


information with respect to reportable accounts to the ATO. TheATO may then exchange this information with foreign taxauthorities in the relevant signatory countries.

In order to comply with the CRS obligations, we may requestcertain information from you. Unlike FATCA, there is nowithholding tax that is applicable under CRS.


12. Glossary of Important TermsAFSLAustralian Financial Services Licence

Application FormThe application form used by investors who wish to subscribe forunits directly in the Fund and attached to this PDS

ASICAustralian Securities and Investments Commission

Asset classA category of financial assets. The major asset classes areshares, property, fixed interest securities and cash

ATOAustralian Taxation Office

AUSTRACAustralian Transaction Reports and Analysis Centre

Bottom-up ResearchA form of security analysis which begins with forecasting returnsfor individual companies, followed by analysing returns forindustries and then analysing returns for the economy as awhole

Business DayA day other than a Saturday or Sunday on which banks are openfor general banking business in Sydney

Buy/Sell SpreadThe difference between the application price and withdrawalprice of units in a Fund, which reflects the estimated transactioncosts associated with buying and selling the assets of the Fund,when investors invest in or withdraw from the Fund

ConstitutionThe Constitution of the Fund describes the rights,responsibilities and beneficial interests of both investors and theResponsible Entity in relation to the Fund

Corporations ActThe Corporations Act 2001 (Cth) and Corporations Regulations2001 (Cth), as amended from time to time

DerivativeA financial contract that derives its value from an underlyingsecurity, liability or Index. Derivatives come in many varieties,including forwards, futures, options and swaps

Equity TrusteesEquity Trustees Limited (ABN 46 004 031 298) who possesses anAFSL No. 240975

FundTribeca Alpha Plus Fund

Fund BenchmarkS&P/ASX 200 Accumulation Index

GSTGoods and services tax

HedgeAn investment made in order to reduce the risk of adverse pricemovements in an investment

Investment ManagerTribeca Investment Partners Pty Ltd (ABN 64 080 430 100)

LeverageThe use of borrowings, various financial instruments and/orborrowed securities to increase the potential return of aninvestment. When leverage is used by an underlying fund, theexposure of the fund to investments exceeds the NAV of thefund.

Long PositionAn investment position where the Fund has actual ownership ofa security. This position will profit from an increase in the value ofthe security held and a loss will be suffered where the value ofthe security decreases. In these circumstances, securities areheld “long.

Long/ShortAn investment style that incorporates the use of both LongPositions and Short Positions.

Net Asset Value (“NAV”)The value of assets of the Fund, less the value of the liabilities ofthe Fund and, in respect of a Class of units, the value of theassets of the Fund referrable to that Class less the value of theassets of the Fund referrable to that Class

PDSProduct disclosure statement for the offer of interests in theTribeca Alpha Plus Fund

Responsible EntityEquity Trustees Limited

RITCReduced Input Tax Credit. Equity Trustees will apply for reducedinput tax credits on behalf of the Fund, where applicable, toreduce the GST cost to the Fund

Short PositionAn investment position where the Fund sells a security it doesnot own to try to profit from a decrease in the value of thesecurity. If the value of the security increases a loss will beincurred. Short positions are created by borrowing securitiesfrom a securities lender and selling them on the share marketwith the intention of buying them back when they decrease invalue. In these circumstances, securities are held “short”.

Top-down ResearchA form of security analysis which begins with forecasting broadtrends for the economy as a whole, followed by assessing theimpact of these trends on industries and then individualcompanies.

US PersonA person so classified under securities or tax law in theUnited States of America (“US”) including, in broad terms, thefollowing persons:

(a)any citizen of, or natural person resident in, the US, itsterritories or possessions; or

(b)any corporation or partnership organised or incorporatedunder any laws of or in the US or of any other jurisdiction ifformed by a US Person (other than by accredited investors whoare not natural persons, estates or trusts) principally for thepurpose of investing in securities not registered under the USSecurities Act of 1933; or

(c)any agency or branch of a foreign entity located in the US; or

(d)a pension plan primarily for US employees of a US Person; or

(e)a US collective investment vehicle unless not offered to USPersons; or


(f)any estate of which an executor or administrator is a US Person(unless an executor or administrator of the estate who is not a USPerson has sole or substantial investment discretion over theassets of the estate and such estate is governed by non-US law)and all the estate income is non-US income not liable to USincome tax; or

(g)any trust of which any trustee is a US Person (unless a trusteewho is a professional fiduciary is a US Person and a trustee whois not a US Person has sole or substantial investment discretionover the assets of the trust and no beneficiary (or settlor, if thetrust is revocable) of the trust is a US Person); or

(h)any discretionary account or similar account (other than anestate or trust) held by a dealer or other fiduciary for the benefitor account of a US Person; or

(i)any non-discretionary account or similar account (other thanan estate or trust) held by a dealer or other fiduciary organised,incorporated or (if an individual) resident in the US for thebenefit or account of a US Person.

Wholesale ClientPersons or entities defined as wholesale clients undersection 761G of the Corporations Act

Wholesale InvestorIn the case of a New Zealand investor, has the meaning given inclause 3(2) of Schedule 1 of the New Zealand Financial MarketsConduct Act 2013


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