DDH INVESTMENT ACCESS FUNDS - MLC · 4 DDH Global Fixed Interest Alpha Fund ARSN 120 591 531 4 DDH...

DDH INVESTMENT ACCESS FUNDS

Product Disclosure StatementIssued by DDH Graham Limited as responsible entity of each of the DDH Investment Access FundsABN 28 010 639 219

Responsible EntityInvestment Manager

This is a Product Disclosure Statement (PDS) for each of the DDH Investment Access Funds as follows:

4 DDH Conservative Growth Fund ARSN 099 592 560

4 DDH Balanced Growth Fund ARSN 099 592 999

4 DDH Aggressive Growth Fund ARSN 099 591 750

4 DDH Australian Shares Fund ARSN 099 592 186

4 DDH Australian Equities Fund ARSN 120 591 773

4 DDH Australian Small Companies Fund ARSN 120 591 862

4 DDH Fixed Interest Fund ARSN 120 591 326

4 DDH Global Fixed Interest Alpha Fund ARSN 120 591 531

4 DDH Cash Fund ARSN 120 591 933

DDH INVESTMENT ACCESS FUNDSProduct Disclosure Statement

IMPORTANT NOTICE TO INVESTORSThis PDS is dated 1July 2009. DDH Graham Limited ABN 28 010 639 219 AFSL 226319 is the Responsible Entity of each of the DDH Investment Access Funds and is the issuer of this PDS and Units in the Fund. You should not invest in the Funds unless you have read this PDS in its entirety.

All amounts in this PDS are given

in Australian dollars. References to “we”, “us” and “our” are to DDH Graham Limited in its capacity as the Responsible Entity of each of the Funds. References to “QIC” are to the QIC Limited ACN 130 539 123 in its capacity as Investment Manager of the underlying wholesale QIC Investment Access Funds. References to “you” or “your” are to Investors in a Fund(s). Certain other terms used in this PDS are defined in the glossary on page 38.

The information contained in this PDS is general information only. This PDS has not been prepared taking into account any particular Investor’s or class of Investors’ investment objectives, financial situation or needs. Before you invest, you should assess and consider whether the information in this PDS is appropriate for you in light of your individual objectives, financial situation or needs. To obtain advice or more information about the products offered in this PDS, you should speak

to an Australian financial services licensee or authorised representative.

An investment in any of the Funds is not a deposit with or other liability of the Responsible Entity or QIC. Investing in the Funds is not without risk (refer to section 4), including possible delays in redemption and loss of income and capital invested. Neither we nor any associates, or QIC, guarantees or makes any representations as to the performance

DDH Investment Access Funds

of the Funds, the maintenance or repayment of capital, the price at which Units may be acquired or sold or any particular rate of return.

The information in this PDS is up to date at the time of preparation. However, some information can change from time to time. If a change is considered materially adverse we will issue a supplementary or replacement PDS. For updated or other information about the Funds that is not materially adverse,

please consult your financial advisor, call us or visit our website www.ddhgraham.com.au. A paper copy of any updated information is available free of charge on request.

If you are printing an electronic copy of this PDS you must print all pages including the Application Form. If you make this PDS available to another person, you must give them the entire electronic file or printout, including the Application Form. A paper copy

of this PDS (and any supplementary documents) can also be obtained free of charge on request by contacting your financial advisor or calling us on 1800 226 174. Applications to invest may only be made on the Application Form attached to or accompanying this PDS.

The offer of Units under this PDS does not constitute an offer in any jurisdiction other than Australia. This PDS is not an offer to any person or an offer in any place, to which or in which

it is unlawful to make such an offer.

The offer or invitation to subscribe for Units in the Funds under this PDS is only available to persons receiving this PDS (electronically or otherwise) in Australia and is subject to the terms and conditions described in this PDS.

We strongly recommend that you seek the services of a licensed financial advisor and tax advisor prior to investing in the Funds.

Product Disclosure Statement 1

CONTENTS Page

DDH INVESTMENT ACCESS FUNDSQUICK REFERENCE 3

1. INTRODUCING THE DDH INVESTMENT ACCESS FUNDS 6

1.1 Structure 6

1.2 DDH Investment Access Funds 6

1.3 What is a managed investment scheme? 6

1.4 What is the role of the Responsible Entity? 7

1.5 What is the role of the Investment Manager? 7

1.6 Benefits of investing in the DDH Investment Access Funds 7

2. ABOUT DDH GRAHAM LIMITED AND QIC 8

2.1 Who is DDH Graham Limited? 8

2.2 Responsible Entity’s duties and obligations 8

2.3 Who is QIC? 9

3. DESCRIPTION OF THE DDH INVESTMENT ACCESS FUNDS 10

3.1 DDH Conservative Growth Fund 10

3.2 DDH Balanced Growth Fund 10

3.3 DDH Aggressive Growth Fund 11

3.4 DDH Australian Shares Fund 11

3.5 DDH Australian Equities Fund (active) 12

3.6 DDH Australian Small Companies Fund 12

3.7 DDH Fixed Interest Fund 13

3.8 DDH Global Fixed Interest Alpha Fund 13

3.9 DDH Cash Fund 14

3.10 Comparative Risk-Return Chart 15

4. RISKS OF INVESTING 16

4.1 Fund management risk 16

4.2 Market risk 16

4.3 Asset risk 16

4.4 Currency risk 17

4.5 Derivatives risk 17

4.6 Manager concentration and investment style 17

4.7 Investment concentration 17

4.8 Liquidity risk 17

4.9 Regulatory risk 17

5. INVESTOR INFORMATION 18

5.1 Who can invest? 18

5.2 Initial and additional investment 18

5.3 Issue of Units and Unit pricing 21

5.4 Switching and transferring investments 22

5.5 Redemptions 22

5.6 Distributions 23

5.7 Investor reports 23

5.8 Taxation and Social Security 24

5.9 Overseas investors 25

6. FEES AND COSTS 26

6.1 Summary of fees and costs 26

6.2 Additional explanation of fees and costs 28

6.3 Example of annual fees and costs 31

6.4 Investment Manager performance based remuneration 31

7. ADDITIONAL INFORMATION 32

7.1 Complaints resolution 32

7.2 Privacy 32

7.3 Anti-money laundering disclosure 33

7.4 Labour standards, environmental, social or ethical considerations 33

7.5 Interests of the Responsible Entity and its directors 33

7.6 Facsimile instructions 34

7.7 Material contracts 34

7.8 Declarations and consents 35

7.9 Authorisation 35

DIRECT DEBIT REQUEST SERVICE AGREEMENT 36

GLOSSARY 38

DIRECTORY 40

FORMS 41

DDH Investment Access Funds2

DDH INVESTMENT ACCESS FUNDSQUICK REFERENCE

To find information on the topics listed below, see the page number listed. The quick reference indicates the kind of information you can find in the PDS, but is not intended to be a complete summary. You should read the whole PDS and seek any advice you need before deciding to invest.

What are your Investment Choices?

You can invest in nine individual funds, eight of which provide exposure to a range of asset classes through wholesale funds managed by QIC.

Issuer of the Funds

The Issuer of this PDS and Units in the Funds is DDH Graham Limited as Responsible Entity of each of the Funds. Eight of the Funds invest in underlying QIC wholesale funds for which QIC is the Investment Manager.

How much do you need to invest and transact? Refer page

Minimum initial investmentper Fund $2,000 (lump sum) or $500 (Regular Savings Plan) 18

Minimum additional investmentper Fund $500 (lump sum) or $100 per month (Regular Savings Plan) 18

Minimum balance per Fund $1,000 22

Minimum redemption per Fund $500 22

Minimum switch perexisting Fund $500 22

Minimum switch per new Fund $2,000 22

How to Invest

To invest, complete the Application Form attached to this PDS.

What fees will you pay?

Establishment fee Nil 26

Contribution fee Up to 3.3% of each investment 26

Withdrawal fee Nil 26

Management costs 0.50% to 1.50% pa of the Fund’s assets depending on the relevant Fund 27


What fees will you pay? Refer page

Switching fee Nil 26

Ongoing advisor service fee Nil from the Fund. Negotiable between Investor and advisor up to 2.2% of the value of the individual investment 30

Buy-sell spread Up to 0.20% per transaction depending on the Fund 29

What other features are available?

Switching Unlimited free switches per Fund 22

Unit price online Available 21

Distributions Monthly, quarterly or semi-annually, depending on the Fund, payable into an account with a financial institution or reinvested in additional Units 23

Regular Savings Plan Available for making regular investments automatically 19

What are the key benefits of investing in the Funds?

Benefits • Access by retail investors to a range of eight actively managed wholesale funds utilising QIC’s funds management expertise.

• Access to the DDH Cash Fund with a competitive short term interest rate in an underlying deposit with Bank of Queensland. The DDH Cash Fund is managed and administered by the Money Market division of DDH Graham Limited as agent for the Bank of Queensland. 7

What are the key risks of investing in the Funds?

Risks Investment in any of the Funds is subject to a number of risks, including:

• market risk;

• asset risk;

• currency risk;

• derivatives risk;

• manager concentration and investment style;

• investment concentration; and

• regulatory risk. 16

DDH INVESTMENT ACCESS FUNDSQUICK REFERENCE


How will you be kept informed? Refer page

Investmentconfirmation With every initial additional investment, including switches 23

Redemptionconfirmation With every redemption 23

Investor value report Monthly, quarterly or semi-annually, depending on the Fund 23

Investment report Monthly, quarterly or semi-annually, depending on the Fund 23

Annual report Available in electronic or paper form 23

Taxation statement Yearly (after the end of the financial year) 24

Complaints resolution

Complaints resolution If you are not satisfied with the resolution of a complaint, you may refer the matter to the Financial Ombudsman Service. 32

Cooling Off Period

Cooling Off As an Investor in the Funds, you have a 14 day cooling off period during which you can have your investment repaid. 20

Contact details

See details in Directory at the back of this PDS


INTRODUCING THEDDH INVESTMENT ACCESS FUNDS

1.1 Structure

The DDH Investment Access Funds (the Funds) are a group of managed investment schemes registered with the Australian Securities and Investments Commission (ASIC). The offer in this PDS comprises an opportunity to invest in nine Investment Access Funds. Of this group, three are invested in Australian equities wholesale funds, two are invested in fixed interest wholesale funds and three are invested in multi sector wholesale funds - all managed by QIC. This broad range affords Investors the opportunity to construct a professionally managed investment portfolio appropriate to their needs, on a competitive fee basis.

The ninth fund (DDH Cash Fund) invests in call deposits with licensed Australian banks. QIC has no involvement with this Fund.

1.2 DDH Investment Access Funds

The individual Funds comprising the DDH Investment Access Funds are:

1.3 What is a managed investment scheme?

Under a managed investment scheme, investors’ funds are pooled with those of other investors to facilitate larger scale investments in various classes of assets. Investors hold units in the scheme which represent a proportional entitlement in the assets of the scheme based on the amount invested and the application price of the units at the time of entry to the scheme. The unit price reflects the value of the assets in the scheme and may increase or decrease over time with the value of the underlying assets.

Further information on each Fund is contained in section 3 of the PDS.

Fund Description

DDH Conservative Growth Fund Multi-sector investment with low to medium risk/return

DDH Balanced Growth Fund Multi-sector investment with medium to high risk/return

DDH Aggressive Growth Fund Multi-sector investment with high risk/return

DDH Australian Shares Fund Australian shares – lightly managed with high risk/return

DDH Australian Equities Fund (active) Australian shares – actively managed with high risk/return

DDH Australian Small Companies Fund Australian small companies shares with high risk/return

DDH Fixed Interest Fund Australian and international fixed interest securities, including derivatives. Low to medium risk/return

DDH Global Fixed Interest Alpha Fund Global fixed interest securities, including derivatives. Very high risk/return

DDH Cash Fund Short term bank deposits with low risk/return


1.4 What is the role of the Responsible Entity?

A responsible entity is required to operate a registered managed investment scheme, to comply with certain statutory duties (including duties of honesty, loyalty and care) in the performance of these duties and perform functions conferred on it by the scheme’s constitution and the Corporations Act. To act as a responsible entity of a registered managed investment scheme (such as the Funds) the responsible entity must be a public company and hold an Australian Financial Services Licence (AFSL) authorising it to operate the scheme.

The responsible entity for each of the Funds is DDH Graham Limited, which has considerable experience acting as a responsible entity. Further information on DDH Graham Limited is contained in section 2.

1.5 What is the role of the Investment Manager?

Other than the DDH Cash Fund, each of the Funds invests in one or more existing wholesale funds managed by QIC one of Australia’s leading investment managers. The investment manager is responsible for making the investment decisions that affect the performance of the QIC funds and therefore the Funds.

1.6 Benefitsofinvestinginthe DDH Investment Access Funds

The DDH Investment Access Funds offer the opportunity to structure a flexible investment portfolio with the following benefits:

• access via eight of the Funds to wholesale funds managed by QIC, facilitating exposure to QIC’s funds management expertise. QIC is one of the largest wholesale fund managers in Australia with extensive experience and capability in wholesale investing.

• market competitive fees.

• minimum initial investment of $2,000 (for lump sum investments).

• ability to invest via the Regular Savings Plan with a minimum initial investment of $500.

• distributions paid monthly, quarterly or semi-annually (depending on the Fund) into an account with a financial institution or reinvested in additional Units.

• ease of administration (reporting, tax, redemptions, switching funds, market commentary, etc).

• redemptions normally paid within 7 Business Days of receipt of redemption request.


ABOUT DDH GRAHAM LIMITEDAND QIC

DDH GRAHAM LIMITED - The Responsible Entity

2.1 Who is DDH Graham Limited?

DDH Graham Limited (“DDH”) is a Queensland based funds management firm founded in 1981. DDH has considerable experience in trust management and administration. It is the responsible entity or trust manager for a number of financial asset trusts and property trusts and operates a money market product. DDH is an unlisted public company and is the holder of an Australian Financial Services Licence (Licence No. 226319).

For further information on DDH, please refer to our website: www.ddhgraham.com.au.

2.2 Responsible Entity’s duties and obligations

The role of DDH as Responsible Entity is defined by the Corporations Act and is specifically detailed in the Constitution and Compliance Plan of each of the DDH Investment Access Funds. Broadly, the role of the Responsible Entity is to manage the Funds and to protect the interests of Investors. In performing this role, the Responsible Entity undertakes a number of tasks to ensure that each of the Funds complies with the Corporations Act, the Constitution and the Compliance Plan. The Responsible Entity also performs a range of administrative and accounting functions.


QIC - The Investment Manager

2.3 Who is QIC?

Eight of the DDH Investment Access Funds invest in wholesale funds managed by QIC Limited (QIC).

QIC is owned by the Queensland Government and operates in accordance with the Government Owned Corporations Act 1993 and the Queensland Investment Corporation Act 1991. QIC is a commercial organisation, charging fees for services provided and generating a satisfactory financial return to the Queensland Government.

QIC’s shareholding ministers appoint the board of QIC and approve the appointment of the chief executive and senior executives. The board of QIC, which wholly comprises non-executive directors, is responsible for directing and controlling the activities of QIC. The management team is responsible for providing professional, effective investment services, funds management services and other financial services to public sector superannuation schemes, government investment funds and other clients.

QIC’s approachQIC is generally an active manager, targeting returns above those of the appropriate indices. QIC believes that active management can be rewarding and that by combining active risks, a more stable and positive return different to market return can be generated.

QIC believes that effective diversification across assets and risks is the central theme of portfolio construction. QIC diversifies risk within asset types, for example, by investing in a broad portfolio of shares representing different types of industries.

External fund managersQIC also uses a manager of managers, or implemented approach, within some funds. This involves selecting a range of external managers to invest in funds in particular markets, for example offshore equities. When evaluating, selecting and monitoring external managers, QIC focuses on consistency of performance and managing risks within the portfolio. The managers are reviewed regularly and may be replaced by QIC from time to time.

Absolute Return StrategiesSome of the QIC funds may use a portion of their cash assets to generate returns over the medium term that are greater than the cash rate. The strategies broadly fall into the following groups:• Tactical asset allocation – a process of tactical allocations

to stocks, bonds and cash positions based on the relative value of equities and bonds and within equity and bond markets;

• Active currency management – a process of identifying profit opportunities in currency markets; and

• Global macro strategies – a process of investing with the objective to take advantage of inefficiencies in global markets (share, fixed interest and currency markets) as well as in a range of non-traditional sources such as emerging markets and commodities.

Currency Hedging and ExposureThe QIC funds may use a portion of their cash assets for currency management purposes to reduce the risk of the unintended impact on returns of foreign currency movements (eg changes in the value of the Australian dollar relative to the currency of the country in which assets are invested). This process is sometimes called “strategic currency management” and is purely designed to be a risk reduction tool.

DerivativesDerivatives such as futures, options and forward rate agreements (whose value is derived from underlying physical assets) may be used in the underlying QIC funds in which the Funds invest. The use of derivatives by QIC in managing its funds is subject to strict policies and procedures including limits on their use.

The QIC funds use derivative instruments primarily:• to offset the risk of price variations of securities;• as an alternative to purchasing/selling the physical

security;• to benefit from any opportunities for profit which may

exist in the market from time to time; and• to manage foreign currency and asset allocation risks.

For further information on QIC, refer to the website: www.qic.com


DESCRIPTION OF THE DDH INVESTMENT ACCESS FUNDS


3.1 DDH Conservative Growth Fund

Investment objective

This fund aims to achieve an investment return of at least CPI plus 2% (before fees) over rolling three year periods by investing in underlying investment funds which primarily invest in a range of listed and unlisted securities across various sectors - as detailed below.

Risk/returnprofile

Low to medium risk/return. See the diagram on page 15 for relative risk positioning.

Suggested Duration of Investment

At least three years.

Asset Allocation

The investment ranges for the DDH Conservative Growth Fund are as follows:

Min Max

Cash 30% 75%

Diversified fixed interest1 5% 50%

Property 0% 15%

Australian shares 0% 25%

International shares 0% 20%

Alternative investments 0% 30%

Foreign currency exposure2 -2% 25%

1 Includes Australian and international fixed interest.

2 Due to currency movements the value of currency is managed as

closely as possible to zero, but can be negative for brief periods.

Distributions

Paid semi-annually by the third week of July and January each year.

3.2 DDH Balanced Growth Fund


This fund aims to achieve an investment return of at least CPI plus 4% (before fees) over rolling five year periods by investing in underlying investment funds which primarily invest in a range of listed and unlisted securities across various sectors - as detailed below.

Risk/returnprofile

Medium to high risk/return. See the diagram on page 15 for relative risk positioning.


At least five years.

Asset Allocation

The investment ranges for the DDH Balanced Growth Fund are as follows:

Min Max

Cash 0% 35%

Diversified fixed interest1 10% 35%

Property 5% 15%



Alternative investments 0% 35%


1 Includes Australian and international fixed interest.

2 Due to currency movements the value of currency is managed as

closely as possible to zero, but can be negative for brief periods.

Distributions



3.3 DDH Aggressive Growth Fund


This fund aims to provide long term capital growth and some income through investment in underlying investment funds which primarily invest in international and Australian shares.

The Fund’s target is to outperform its benchmark after underlying investment costs over a rolling seven year period.

Risk/returnprofile

High risk/return. See the diagram on page 15 for relative risk positioning.


At least seven years.

Asset Allocation

The investment ranges for the DDH Aggressive Growth Fund are as follows:

Min Max

Cash1 -2% 2%




1 Due to currency movements the combined values of cash and

currency are managed as closely as possible to zero, but can be

negative for brief periods.

Distributions


3.4 DDH Australian Shares Fund


This fund aims to provide long term capital growth and some franked income through investment in underlying investment funds which primarily invest in Australian shares. The fund is lightly managed with minor periodic adjustments to the underlying portfolio.

The Fund’s target is to outperform its benchmark after underlying investment costs over a rolling seven year period.

Risk/returnprofile




Asset Allocation

Australian shares 100%

Comprising Australian Shares 100%

Distributions



3. DESCRIPTION OF THE DDH INVESTMENT ACCESS FUNDS

3.5 DDH Australian Equities Fund (active)


This fund aims to achieve an investment return (before fees) of at least 2% pa above the S&P/ASX 200 Accumulation Index, over rolling seven year periods, through underlying investment funds which actively manage a portfolio of Australian shares.

Risk/returnprofile




Asset Allocation


Comprising Large companies 89% - 99%

Small companies 1% - 11%

Distributions

Paid quarterly by the third week of July, October, January and April each year.

3.6 DDH Australian Small Companies Fund


This fund aims to achieve an investment return (before fees) of at least 5% pa above the S&P/ASX Small Ordinaries Accumulation Index, over rolling seven year periods, through underlying investment funds which actively manage a portfolio of Australian shares.

Risk/returnprofile




Asset Allocation


Comprising Small companies 100%

Distributions



3.7 DDH Fixed Interest Fund


This fund aims to achieve an investment return (before fees) of at least 0.8% pa above the UBS Composite Bond Index, over rolling three year periods, through underlying investment funds which actively manage a portfolio of fixed interest securities.

Risk/returnprofile

Low to medium risk/return. See the diagram on page 15 for relative risk positioning.


At least three years.

Asset Allocation

Australian and international fixed interest securities

Comprising Australian fixed interest 50% - 100%

International fixed interest 0% - 50%

Distributions


3.8 DDH Global Fixed Interest Alpha Fund


This fund aims to achieve an investment return (before fees) of at least 5% pa above the UBSA Bank Bill Index, over rolling five year periods, through investment in underlying investment funds which actively manage across the broadest possible interest rate and credit market set of opportunities, using derivatives to achieve diversified, global sources of return.

QIC actively manages the portfolio through a combination of interest rate and credit derivative (eg. futures, options and swaps) strategies. The inclusion of the term “Alpha” in the title of the fund reinforces the emphasis on achieving benchmark outperformance. Through the use of derivatives the actual exposure to markets is likely to be greater than the capital value of assets invested to take those positions. As a consequence the potential exists to magnify investment gains but also to magnify the likelihood and magnitude of losses.

Risk/returnprofile



At least five years.

Asset Allocation

Because opportunities in interest rate and credit markets may vary considerably in a relatively short time frame, the composition of any given asset allocation will also vary considerably over time.

Distributions



3. DESCRIPTION OF THE DDH INVESTMENT ACCESS FUNDS

Note that with respect to the Funds:

• the investment objective of each Fund is not a forecast of performance and no person is guaranteeing that the objectives will be achieved.

• the investment timeframes are suggestions only and investors should seek independent advice from their own financial advisor about the term of their investment in a Fund.

• the asset allocation ranges are targets only and are subject to change.

Fund Size and Performance

The latest fund size and performance information can be viewed at www.ddhgraham.com.au and is incorporated into this PDS by reference. You should read this information before investing in the Fund.

Alternatively you can obtain this information free of charge by contacting our investor service team:

• by phone on 1800 226 174

• by email at [email protected]

or you can contact your investment advisor.

3.9 DDH Cash Fund General


This Fund invests in call deposits with licensed Australian banks. The core investment on the Fund will typically be with the Bank of Queensland’s “Money Market Deposit Accounts” product. These Deposit Accounts are call deposits with the Bank of Queensland and are managed and administered by the Money Market division of DDH as agent for the Bank of Queensland.

The DDH Cash Fund’s objective is to allow Investors to access the interest rate returns available from “at-call” deposit accounts held with licensed Australian banks. It will only invest in deposits held by banks with credit ratings equal or superior to those of the Bank of Queensland.

As an interest rate only product, there are no capital growth components to the return to Investors.

The DDH Cash Fund aims to produce an interest rate return for Investors of no less than 0.5% (after management fees) below the Reserve Bank of Australia Cash Rate.

Risk/returnprofile

Low risk/return. See the diagram on page 15 for relative risk positioning.


Any.

Asset Allocation

100% invested in “at-call” bank deposits with licensed Australian banks.

Distributions

Paid monthly by the third week of the following month.


Relative Return versus Risk

GFI Alpha

Aust Small Companies

Aust Equities

Aggressive GrowthAust Shares

Bal Growth

Cons Growth

Aust Fixed Int

Cash

RISK

RETURN

Note – there is a tendency for potential risk to vary directly with potential return, so that the greater the potential risk the greater the potential return and the less the potential risk the lower the potential return.

RISK AND RETURN CHART FOR RELATIVE COMPARISON PURPOSES

RISKS OF INVESTING

In considering an investment in any of the DDH Investment Access Funds, investors should carefully consider the various types of risk which have the potential to influence the performance of the individual Fund and hence the value of the investment undertaken.

Risk can broadly be defined as the volatility of an investment’s value over a given period of time. In general, the riskier an investment the higher the level of return required from that investment to compensate for the increased risk. Strategies such as diversification of investments within an investment portfolio and across a range of asset classes can be used to reduce risk within a portfolio.

The following summarises a number of the risks associated with investing in the Funds:

4.1 Fund management risk

The performance of any of the Funds which invest in wholesale funds managed by QIC will depend on the expertise and quality of investment decisions made by QIC as the Investment Manager of the relevant underlying QIC fund. Past performance of the underlying QIC funds is not necessarily an indicator of future performance of the Funds.

As the DDH Cash Fund is a passive fund, there is minimal fund management risk for this investment.

4.2 Market risk

A number of external factors such as changes in the economic, political, technical or social environment can have significant influence on the market for a particular asset class (e.g. equities). These influences may produce changes in the value of markets and the investments which comprise them, which are outside the influence of an investment manager. Such influences may also affect markets in different assets (e.g. equities vs fixed interest) in different ways.

4.3 Asset risk

Each asset class is subject to its own particular array of risks, including:

• Cash – subject to interest rate risk i.e. the interest earned may rise or fall as interest rates rise and fall.

• Fixed Interest – subject to credit risk i.e. the issuer of the security may not repay the principal or make interest prepayments, and to interest rate risk i.e. the capital value of the security may rise or fall as interest rates fall or rise.

• Equities (shares) – subject to the business risks facing each corporate entity underlying the securities e.g. competitive influences, management ability, cost pressures, technological change etc, and to the varying sector risks in which these entities belong (e.g. media vs mining). As a result share prices may fall and dividends or other forms of income may reduce.

• Property – subject to rises and falls in property prices due to a number of factors such as supply of and demand for comparable property, interest rate movements, rental markets and shifts in demographics.


4.4 Currency risk

Currency fluctuations can be volatile and affect investment values. Returns from investments in any class outside Australia will be subject to the risk that the return to Investors expressed in Australian dollars will be affected by the value of the Australian dollar relative to the country in which the investment is domiciled.

4.5 Derivatives risk

The value of share and fixed interest derivatives is linked to the value of the underlying assets and can be highly volatile. Losses from derivative transactions can be substantial.

4.6 Manager concentration and investment style

Eight of the Funds are invested in wholesale funds managed by QIC. There is significant reliance on QIC as an Investment Manager and on the personnel employed by QIC. This limits any risk reduction associated with manager diversification.

The investment style of the underlying QIC funds is generally an “active” style. Such a style aims to achieve returns in excess of particular benchmarks but generally involves higher risks than a “passive” management style as typically employed by index fund managers. For some of the funds, such as the DDH Australian Shares Fund, a less active or “lightly managed” approach is taken.

4.7 Investment concentration

The number and composition of the Funds available to Investors provides a concentrated exposure to a particular asset class (eg smaller companies), potentially limiting risk reduction associated with asset class diversification.

4.8 Liquidity risk

Should QIC either freeze redemptions in one or more of its investment funds, or take the maximum time allowable under its respective fund constitutions to make redemptions, there could be delays in Investors receiving their redemptions from the Funds.

4.9 Regulatory risk

There is a risk that government policy in relation to economic, investment and taxation matters in countries in which investments are made (including Australia) may be altered, affecting the value of those investments.


INVESTOR INFORMATION

5.1 Who can invest?

To be eligible to invest in the Funds, Investors must be Australian residents with a registered address within Australia and must fall into at least one of the following categories:

• Individuals (either singly or jointly) over 18 years of age

• Companies

• Trustees and trustee companies

• Partnerships

• Superannuation funds (including “self managed” superannuation funds).

5.2 Initial and additional investment

How to invest

Applications to invest in a Fund can only be accepted if a completed Application Form is lodged with an accompanying cheque or electronic funds transfer for the amount of the investment (see “Payment” on page 19).

Each page of the Application Form must be completed and sent, along with your payment, to us at the address below.

DDH Investment Access FundsReply Paid 330Brisbane QLD 4001

You can also fax us the Application Form although we ask you to phone us to verify receipt (refer to “Warning” on page 20).

Care should be taken to ensure you provide, on the Application Form, your:

• residential address (or registered address in the case of a company or trustee Investor); and

• tax file number (TFN) or Australian Business Number (ABN).

We will reject an application where a satisfactory address is not provided on the Application Form.

For further information, refer to “How to complete the Application Form” that accompanies the Application Form.

Initial investment

The Application Form provides for investment in one or more of the DDH Investment Access Funds. The minimum initial investment as a lump sum is $2,000 for each Fund or $500 if investing via a Regular Savings Plan.

Investors may negotiate a contribution fee with their financial advisor of up to 3.3%. See Section 6.2 for more information.

Additional investments

If you already hold Units in a Fund, you can make an additional investment in any Fund by completing an Application Form. The minimum additional investment is $500 per Fund or $100 per month via a Regular Savings Plan. You will need to make reference to your investor number, clearly state your investment amount and the applicable Fund(s) (if investing in more than one Fund) in which the additional investment(s) is to be made.

Additional copies of the PDS (which includes the Application Form) can be requested by contacting us or accessed via our website.


Regular Savings Plan (RSP)

You can choose to invest on a regular basis using the RSP offered by the Funds. The RSP can be commenced at any time subject to the minimum investment requirements which are in place at the time.

You can start with a minimum initial investment of $500 in any Fund and then make regular monthly investments from a minimum of $100 per Fund. Your regular investments will be debited automatically around the 21st of the month from an account with an Australian bank/financial institution which accepts direct debits.

If you are a new investor and wish to commence a RSP, you should complete the relevant sections of the Investment application form supplied with this PDS when you make your initial investment. If you are an existing investor you should complete a Regular Savings Plan form and return it to us. A copy of this form is included in the forms booklet at the back of this PDS. Additional copies can be obtained by calling us on:1800 226 174.

After commencing your RSP, you can alter the amount, or the Fund into which your regular investments are made (subject to minimum balance and transaction requirements) or you can cease them at any time by notifying us in writing or by completing a RSP form.

There are no additional fees or charges if you invest via the RSP. Our fees (described on page 27) apply to investments made under the RSP.

Before commencing your RSP, you should read the Direct Debit Request Service Agreement on page 36. Any investment you make via the RSP is made in terms of the PDS current at that time. You should keep this PDS for your reference as it contains the current terms and conditions of the RSP. If we issue a new PDS or Supplementary PDS, we will send you a copy.

Payment

You can forward your Application Money by cheque or electronic transfer. If you (or your agent) use electronic transfer, you must notify us (refer to “Identifying your Application Money” below).

Cheques must be made payable to “DDH Investment Access Funds Application Account”. Payments are to be made in Australian dollars.

For electronic transfer, the bank account details are:

Account name:DDH Investment Access Funds Application Account

Bank: Bank of Queensland

BSB: 124-001

Account number: 998726000

Identifying your Application Money

If you (or your agent) forward Application Money to us by electronic transfer, you will need to advise us prior to the processing cut-off time so that we can identify your money. If your money has not been receipted or identified by our bank or us, then we cannot process your application.

Any money received by electronic transfer without being separately advised to the Responsible Entity may be rejected and returned to the paying financial institution.

Any fees charged by a financial institution, in relation to identifying or rejecting money, will be passed on to the Investor or deducted from the Application Money.

If a cheque or electronic deposit dishonours subsequent to Units being issued, those Units are deemed not to have been created.


WARNING

Electronic instructions - facsimile

Investors who use electronic means to provide instructions (eg. applications and redemptions) to us do so at their own risk. We will not take any responsibility for not receiving a request, despite any electronically generated confirmation an Investor may have. Electronic communication is inherently unreliable and confirmation of physical receipt by us should be verbally sought by phoning Freecall 1800 226 174.

In sending any electronic instruction, the Investor releases us from, and indemnifies us against, any loss or liability arising as a result of processing an instruction that bears the Investor’s account number and a signature apparently that of the Investor or authorised signatory on the account.

Cooling-off period

As an Investor in the Funds, you have 14 calendar days from the earlier of the day the confirmation requirement is complied with or the end of the fifth day after the day on which the product was issued or sold (cooling-off period) during which you can have your investment repaid. This applies only to your first investment in a Fund but not an initial investment made through a switch.

The amount that is repaid will be adjusted to take into account any transaction and administration costs and increase or decrease in the value of your investment. The repayment of your investment will constitute a disposal for tax purposes.

Your right to be repaid during the cooling-off period does not apply:

• if you are switching between Funds;

• if Units are issued as a result of dividend reinvestment or RSP;

• if you exercise any of your rights as an Investor of a Fund;

• if you are a Wholesale Client; Or

• if you invest in a Fund via an Investor Directed Portfolio Service (IDPS), IDPS-like scheme or nominee or custody service.

Investing through a master trust or IDPS

Investors and potential investors accessing the Funds indirectly through an Investor Directed Portfolio Service (IDPS), IDPS-like scheme or nominee or custody service may use this PDS for that purpose provided the operator has provided us with a written undertaking according to ASIC requirements. Such indirect investors do not acquire the rights of an Investor in the Funds and may be subject to different conditions than those referred to in this PDS. The operator of the IDPS, IDPS-like scheme or nominee or custody service acquires the rights of an Investor in the Funds. Therefore, indirect investors do not receive income or reports directly from the Funds and do not have the right to attend meetings of Investors. Investors investing in the Funds through an IDPS, IDPS-like scheme or nominee or custody service should contact the scheme or service provider for information on the conditions applying to their investment.

Change of account details

Once invested in a Fund, Investors can change their details by notifying us by mail or facsimile.

The written request must include the Investor’s:

• account name;

• account number;

• authorised signature(s); and

• the details which are being changed (for example, change of address, bank account details, distribution nomination, financial advisor details).

If changing an address, it is necessary to provide both the old and new address.

If changing bank account details for redemptions or distributions, Investors will need to provide us with an original written request, rather than a facsimile or photocopy.

We issue one investor number for each Investor, irrespective of the number of Funds held by that Investor. If an Investor advises us to amend Investor details in respect of one Fund held, we will apply the new details across all Funds. For example, a request to amend an address for one Fund will result in that address being amended for all Funds.


5. INVESTOR INFORMATION

5.3 Issue of Units and Unit pricing

Issue of Units

If we receive your Application Form and Application Money by 12:00pm (AEST) on a Business Day (“processing cut off time”), the Units in the nominated Fund(s) will be issued on that day. If your Application Form and Application Money are received after 12.00pm (AEST) the Units will be issued on the next Business Day.

Investors will be issued with a number of Units determined by dividing the amount of the Application Money for each particular Fund (after deduction of any contribution fee separately negotiated with an advisor or to which we are entitled) by the application price of Units in that Fund (see “Unit pricing” below).

If your correctly completed Application Form and Application Money are received, identified, and accepted by us before the processing cut-off time, the Unit price applicable will be that which reflects the market value of the Fund at the close of business on that day.

Applications receipted, identified and accepted by us after the processing cut-off time (but before the next processing cut-off time) will be processed using the Unit price which reflects the market value of the Fund on the following Business Day.

Unit pricing

A Fund’s Unit price is calculated by dividing the net asset value of the Fund by the number of Units on issue in the Fund. The application price is determined by adding the buy costs. The redemption price is obtained by deducting the sell costs. Refer to “Buy-sell spreads” below for more information.

Generally, the net asset value of each Fund is determined each Business Day. It is calculated by taking the market value of a Fund’s assets and deducting the value of its liabilities.

The net asset value of investments in a Fund includes not only the value of unrealised gains, but also any income and realised gains accrued and not yet distributed. It includes all trades notified to the Custodian by the close of each Business Day.

The Unit price for a particular Business Day reflects the market value of the Fund at the close of business on that day. This means that if an investment is made before the processing cut-off time on a particular Business Day, the Unit price applicable to that investment will reflect that day’s closing Fund market values.

For example:

• An application accepted at 10:00am (AEST) on Monday will be processed with the application price calculated on Monday’s closing market values.

• An application accepted at 4:00pm (AEST) on Friday will be processed with the application price calculated on the following Monday’s closing market values (because the application missed Friday’s processing cut-off time).

A copy of our policy regarding the exercise of discretions under the Constitution that affect Unit price calculations is available free of charge on request.

Buy-sell spreads

The buy-sell spread represents the transaction costs involved in making or withdrawing from an investment. Transaction costs include brokerage, stamp duty and other taxes or charges incurred in buying or selling the underlying assets within a Fund.

The buy-sell spread is not a management fee – the monetary amount of the spread stays in the Fund to cover necessary transaction costs. It applies only to those Investors entering, exiting or switching between Funds, who pay the transaction costs incurred as these transactions occur. Existing Investors not undertaking transactions are not affected by the buy-sell spread.

Current buy-sell spreads are contained in section 6.2 (Additional explanation of fees and costs). We reserve the right to alter these spreads.


5.4 Switching and transferring investments

Switching between Funds

A switch between any of the Funds is a redemption from the first Fund and an application for Units in the second Fund.

Investors may make unlimited switches out of any single Fund in any financial year and no switching fee is charged. A buy-sell spread may also be applied in the calculation of the redemption price and the application price. To initiate a switch, you will need to complete the “Switching Instructions” section of the Application Form.

You can switch $500 or more to any Fund in which you are already invested, or $2,000 or more to any new Fund. You must continue to hold a minimum balance of at least $1,000 in each Fund after a switch is made, otherwise the request will be considered a request for a full switch and the balance of your investment will be switched in accordance with your switch instructions.

Additional copies of the PDS, which includes the Application Form, can be requested by contacting us or accessed via our website.

A switch between Funds may have tax implications and Investors should seek their own tax advice in this regard.

Unit transfer

Investors may transfer Units in a Fund to any other person. However we have the discretion to refuse transfers of Units without giving any reasons for this refusal.

To effect a transfer to another person, the following will be required:

• a signed and completed standard unit transfer form (with duty paid, if applicable), and

• notification of the transferee’s Investor name and number (or if a new Investor, an Application Form).

Standard unit transfer forms are available by contacting us or from our website.

No buy-sell spread is applied to Unit transfers. A transfer of Units may have tax implications and Investors should seek their own tax advice in this regard.

5.5 Redemptions

Investors may make a redemption by sending us a request in writing. The request should state the:

• Investor name;

• Investor number;

• applicable Fund; and

• redemption amount (or state account closure if the case)

and should be signed by the Investor(s) or authorised signatories. Redemption forms are available on our web site or by contacting us at [email protected].

The minimum redemption amount per Fund is $500. If such a redemption would cause your balance to fall below $1,000 per Fund then the entire balance of that Fund will be redeemed.

Redemption requests should be sent to us at:

DDH Investment Access FundsReply Paid 330Brisbane QLD 4001

or via facsimile to 61 7 3210 6986 (please note the text box entitled “Warning” on page 20).

If you send a redemption request via facsimile and request remittance of an amount to a financial institution whose account details are different to those which we have on file for your account, then your facsimile redemption will not be processed until the original document is received (in accordance with processing cut-off times).

Each Fund’s processing cut-off time for redemptions is 12:00pm (AEST) each Business Day.

If your redemption request is received at our office prior to the processing cut-off time, the redemption price calculated on that Business Day will be applied to your redemption. Redemption requests receipted and accepted after the processing cut-off time (but before the next processing cut-off time) will be processed using the redemption price of the next Business Day.

Please note that the redemption request must be receipted at our office to be considered for processing. We are not responsible for any postal or service delivery delay or failure.



The proceeds of your redemption are normally available within 7 Business Days of receipt of the redemption request and can be deposited into a nominated Australian-resident bank, building society or credit union account.

Please note that our policy is not to make payments to third parties and the nominated Australian-resident bank, building society or credit union account you advise must be in the Investor’s name.

There are no exit fees payable on redemption however any government charges payable will be deducted from the redemption proceeds.

5.6 Distributions

A distribution is a payment of that Fund’s taxable income and may include interest, company dividends, foreign income, realised net capital gains and other income. The components of the distribution will vary from Fund to Fund and from period to period. There may also be times when no distribution is paid. Distributions from the Funds are not pro-rated for the duration of the investment during the tax year.

Investors can choose to have distributions:

• reinvested in additional Units in the relevant Fund;

or

• paid in cash.

Distributions will be automatically reinvested in additional Units in the Fund on the next Business Day after the end of the quarter, unless an Investor elects by notice in writing to us to receive a cash distribution. Please tick the relevant box on the

Application Form if you wish to receive your distributions in cash.

Cash distributions will only be paid to an Australian resident bank, building society or credit union account. The account nominated by the Investor must be in the name of the Investor, as it is our policy not to make third party payments.

If payment to your nominated account is rejected by your financial institution, your distribution amount will be reinvested using the application price on the next Business Day after receipt of the notice of rejection from the financial institution.

Investors will need to advise us in writing of any change to distribution nomination and account payment details. For a change to be reflected in the next distribution, such advice must be received by us no later than five Business Days prior to the last day of the quarter.

5.7 Investor reports

Each of the Funds is, or is expected to become, a “disclosing entity” under the Corporations Act and will be subject to regular reporting and disclosure obligations under the Corporations Act. These include the preparation of annual reports and half yearly reports. Copies of documents lodged with ASIC are available to the public and may be obtained from, or inspected at, an ASIC office.

As an Investor in the Funds, you will receive the following advices and reports:

• Investment confirmation advice, indicating your initial investment in the Fund(s) and any switches, together with details of application price(s) and number of Units issued (generally sent within 5 Business Days of the acceptance of the application).

• Redemption confirmation, providing details of Unit redemptions and redemption prices (generally sent within 5 Business Days of the redemption request being processed).

• A quarterly or semi-annual (depending on the Fund) investment report dealing with Fund performance, Unit prices and distributions (generally sent within 20 Business Days of the end of the quarter).

• A quarterly or semi-annual (depending on the Fund) investor value report indicating individual transactions undertaken, distributions made and Unit values (generally sent within 20 Business Days of the end of the quarter).

• An annual taxation statement, detailing all relevant taxation information relating to distributions from the Funds required for Investor taxation returns (generally sent by the end of August each year).


For the DDH Cash Fund, a monthly statement will be sent to unit holders.

Historical and current information is available on our website including daily unit prices and return information.

A copy of the audited annual financial report for the Funds is available on our website by the end of September each year. You may elect to receive a hard copy of the annual report by completing the relevant section of the Application Form or by contacting us.

5.8 Taxation and Social Security

Taxation

There are taxation implications that arise from investing in the Funds. The following information is intended as a broad overview only of the current legislation.

Investors’ tax liabilities are dependent on their individual circumstances. Therefore it is recommended that professional advice on the taxation implications of investing in the Funds be sought before any such investment is made.

Under existing income tax legislation, the Funds will not generally be liable for tax because of our policy of distributing to Investors all net taxable income of the Funds. Income distributed to Australian resident Investors will generally be assessable and should be included in the Investors’ income tax returns in the financial year when entitlement to that income arises (even if distributions are reinvested or received in another period). The Funds will also distribute any capital gains, imputation credits and foreign tax credits received. These will also need to be included in Investors’ income tax returns. The extent to which these credits can be used is dependent on the individual Investor’s circumstances.

Disposal of Units in the Fund may give rise to a capital gains tax liability or a capital loss. Some Investors may be entitled to a capital gains tax discount if Units are held for more than 12 months. The Unit price between distribution dates reflects the return, including income, which has accrued during the period between distributions. When a distribution is made, the Unit price will normally fall by the amount of that distribution. As a consequence if an investment is made shortly before the end of a distribution period, the subsequent distribution the Investor receives may comprise taxable income of the Investor, while the value of the Unit price paid by the Investor would fall by an amount similar to that distribution. Conversely, redemption of an investment prior to a distribution may result in a higher Unit price obtained by the Investor (reflecting the impending distribution), thereby resulting in a higher capital gain (or reduced capital loss) for the Investor.

At the Funds’ financial year end, Investors will be sent an annual taxation statement that sets out details of any assessable income, capital gains, credits and other information relevant to the preparation of their income tax returns.

Different taxation circumstances apply to Investors who are not residents of Australia. Tax will be withheld from your distributions at the appropriate rate and taxation law of the appropriate country will apply.

Tax File Number (TFN)

The Application Form provides for the notification by Investors of their TFN, TFN exemption or ABN. It is not compulsory to provide your TFN (or exemption) or ABN. However, tax will be required to be deducted from your income distribution, at the highest marginal tax rate, if we are not provided with this information.

Social Security

An investment in the Fund(s) may have an effect on a social security benefit to which the Investor is entitled and it is recommended that professional advice be sought on the effect of investment on such benefit.



5.9 Overseas investors

No action has been taken to register or qualify the Units or the offer of Units or otherwise permit a public offering of the Units, in any jurisdiction outside Australia. The Units have not been and will not be registered under the United States Securities Act of 1933 (US Securities Act) and may not be offered or sold in the United States (US) or to, or for the account or benefit of US persons except in transactions exempt from the registration requirements of the US Securities Act. The distribution of this PDS in jurisdictions outside Australia may be restricted by law and therefore persons into whose possession this PDS comes should inform themselves about and observe any such restrictions. Any failure to comply with these restrictions may constitute a violation of those laws.

The PDS does not constitute an offer of Units in any jurisdiction where, or to any person whom, it would be unlawful to issue this PDS. Where this PDS has been dispatched to any persons domiciled outside Australia and where that country’s securities code and legislation require registration, this PDS is provided for information purposes only. It is the responsibility of any overseas applicant to ensure compliance with all the laws of any country relevant to his or her application. The return of any duly completed Application Form will be taken by us to constitute a representation and warranty that there has been no breach of such laws and that all necessary approvals and consents have been obtained.


FEES AND COSTS

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 fund balance rather than 1% could reduce your final return by up to 20% over a 30 year period (for example, reduce it from $100,000 to $80,000).

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

You may be able to negotiate to pay lower contribution fees and management costs where applicable. Ask the Fund or your financial advisor.

TO FIND OUT MORE

If you would like to find out more, or see the impact of the fees based on your own circumstances, the Australian Securities and Investments Commission (ASIC) website (www.fido.asic.gov.au) has a managed investment fee calculator to help you check out different fee options.

6.1 Summary of fees and costs

The following table shows the fees and other costs that you may be charged applicable to each Fund chosen within the DDH Investment Access Funds.

These fees and costs may be deducted from your money, from the returns on your investment or from the Funds’ assets as a whole.

Taxes are set out in another part of this document (refer to section 5.8).

You should read all of the information about fees and costs as it is important to understand their impact on your investment in the Funds. The fees set out below are inclusive of GST, adjusted for the impact of reduced input tax credits where applicable.

The following consumer advisory warning is required by the Corporations Act to be displayed in this section of the PDS.

Type of fee or cost Amount How & When Paid

Fees when your money moves in or out of the Funds

Establishment fee: Nil Not ApplicableThe fee to open your investment.

Contribution fee: Up to 3.3%. Any contribution fee will be deducted from yourThe fee on each amount Application Money before calculating the number ofcontributed to your investment. Units to be issued pursuant to an initial or additional(See note 1 and 2) application. This is paid to your financial advisor as a commission.

Withdrawal fee: Nil Not applicableThe fee on each amount you takeout of your investment.

Termination fee: Nil Not applicableThe fee to close your investment.


Type of fee or cost Amount How & When Paid

Management Costs

The fees and costs for managing Investment Portion of Fees are calculated daily and paid from the netyour investment. Management amounts up to investment assets of the relevant Fund monthly in arrears. Thecosts are expressed as a % of and including amounts in fee is reflected in the daily Unit price.each Fund’s total average net $200,000 excess ofassets $200,000(see Note 2)

DDH Conservative Growth Fund 1.25% pa 0.925% pa

DDH Balanced Growth Fund 1.45% pa 1.075% pa

DDH Aggressive Growth Fund 1.55% pa 1.125% pa

DDH Australian Shares Fund 1.50% pa 1.10% pa

DDH Australian Equities Fund (active) 1.20% pa

DDH Australian Small Companies Fund 1.35% pa

DDH Fixed Interest Fund 0.68% pa

DDH Global Fixed Interest Alpha Fund 1.50% pa

DDH Cash Fund 0.50% pa

Service Fees (see Note 3)

Investment Switching Fee Nil See contribution fee (if applicable).(see Note 4)

The fee for changing investmentoptions.

Note 1 If you apply through a licensed financial advisor this fee is payable to the financial advisor as a commission. You may be able to negotiate this fee with them. If you do not apply through a licensed financial advisor the contribution fee is payable to us (see ‘Contribution fee’ under the section “Additional explanation of fees and costs”).

Note 2 For Wholesale Clients not utilising the services of an advisor we may individually negotiate a rebate of part of or all of the contribution fee or management fee. Other than provided for in ASIC relief, we are not permitted to negotiate fee arrange-ments with other Investors.

Note 3 See “Ongoing adviser remuneration” (below) for other service fees which may be payable.

Note 4 See “Buy-sell Spreads” under the heading “Additional explanation of fees and costs”


6.2 Additional explanation of fees and costs

Contribution fee

The contribution fee is charged when an investor makes an initial or additional contribution to certain Funds. The fee is expressed as a percentage of the amount of the Investor’s Application Money. The contribution is deducted from the Investor’s Application Money and is paid to either a financial advisor or to us. If an Investor utilises the ser-vices of a financial advisor, the investor may negotiate with their advisor the percentage contribution payable to the advisor, to a maximum of 3.3%.

Management costs

Management costs are the costs incurred for managing and administering the Funds and vary from 0.5% to 1.55% depending on the relevant Fund.

The management costs include fees payable to us (from which we pay a number of expenses including custodial, insurance, compliance, accounting and auditing) and the investment management fees payable to QIC. Management costs are calculated daily based on the value of the Funds and paid monthly. The amount of management costs reduces the net assets of the Funds and is reflected in the Unit price for the Funds.

The Indirect Cost Ratio (“ICR”) is a calculation of the management costs of the Funds payable on an annual ongoing basis, expressed as a ratio of the Funds’ average net assets.

Included in the ICR are the costs of managing the investment and any other expense we may recover from the Fund pursuant to the Constitution.

The ICR is “indirect” in the sense that it is incurred proportionally by all Investors in a Fund and is not directly deducted from an Investor’s account (as are contribution fees, ongoing advisor fees and switching fees).

In the absence of any abnormal expenses (see “Abnormal Operating Expenses” on page 30) and subject to our ability to amend fees upon notification to Investors (see “Maximum Fees” page 30, we have estimated that the ICR for each Fund is as follows:

Investment Fund ICR % pa Example management fees per annum for $50,000 invested

DDH Conservative Growth Fund 1.25% $625

DDH Balanced Growth Fund 1.45% $725

DDH Aggressive Growth Fund 1.55% $775

DDH Australian Shares Fund 1.50% $750

DDH Australian Equities Fund (active) 1.20% $600

DDH Australian Small Companies Fund 1.35% $675

DDH Fixed interest Fund 0.68% $340

DDH Global Fixed Interest Alpha Fund 1.50% $750

DDH Cash Fund 0.50% $250


6. FEES AND COSTS

Differential fees

Under the Corporations Act, we may rebate fees to Investors that meet certain criteria. We may individually negotiate a rebate of all or part of the contribution fee or manage-ment fee for Wholesale Clients not utilising the services of an advisor and we will not charge a contribution fee to our employees. Any differential fee arrangements will not adversely affect the fees to be paid by other Investors.

Buy-sell spreads

The buy-sell spread represents the transaction costs associated with buying or selling assets when Investors enter or withdraw from a Fund. The buy-sell spread is reflected in the Unit application and redemption prices of that Fund. It is not a fee paid to us. Current buy-sell spreads for each Fund are as follows:

Investment Fund Buy Spread Sell Spread

DDH Conservative Growth Fund +0.20% -0.20%

DDH Balanced Growth Fund +0.20% -0.20%

DDH Aggressive Growth Fund +0.20% -0.20%

DDH Australian Shares Fund +0.20% -0.20%

DDH Australian Equities Fund (active) +0.20% -0.20%

DDH Australian Small Companies Fund +0.20% -0.20%

DDH Fixed interest Fund +0.04% -0.04%

DDH Global Fixed Interest Alpha Fund 0.00% 0.00%

DDH Cash Fund +0.20% -0.20%

An example is shown below.

If the net asset value of a Fund with one unit on issue is $1.00 and the buy and sell spreads are +0.20% and -0.20% respectively, the Unit application price would be $1.002 and the Unit redemption price would be $0.998.


Abnormal operating expenses

We are entitled to recover from a Fund any abnormal expenses incurred in the administration of the Fund. Abnormal expenses relate to events such as the costs of holding Investor meetings, changes to the Fund’s Constitution or engaging in legal proceedings, and are not expected to occur frequently.

Ongoing advisor remuneration

If you agree we can arrange for your advisor to receive an ongoing advisor service fee in addition to the contribution fee. This remunerates the advisor for ongoing advice and service. We do not receive any fees for this service.

Investors can direct us to pay these fees by completing the “Advisor Remuneration” section of the Application Form. The fee must be a percentage of the value of the Investor’s holding in the Fund at the end of each quarter, calculated and accrued daily and is capped at a maximum of 2.2% per annum. Ongoing advisor fees are paid to an advisor quarterly by redeeming a sufficient number of an Investor’s Units to cover the fee including GST. These redemptions generally occur as at the 5th Business Day after quarter end. Details of all amounts that are paid to a financial advisor and any GST impact are included on the Investor’s quarterly statement.

If an Investor wishes to change or cancel the ongoing advisor service fee, they must advise us in writing. This fee may be tax deductible however Investors should seek their own professional tax advice with regard to eligibility.

Goods & Services Tax (GST)

The Funds are required to pay GST on certain expenses including management fees. Where available the Funds are entitled to reduced input tax credits of 75% of the GST paid. The fees and expenses quoted in this PDS are inclusive of the net effect of GST.

Maximum Fees

Under the Constitution for each Fund, the Responsible Entity is entitled to be paid the following maximum fees (including GST if applicable):

Contribution fee:up to 5% of the Application Money (note that this fee only applies if anInvestor does not use the services of a financial advisor in which case the maximum is 3.3%).

Redemption fee:up to 5% of the redemption price of each Unit withdrawn.

Management fee:up to 5% per annum of the value of the assets of the Fund.

Each Constitution provides that we may accept lower fees than those to which we are entitled or to defer payment for any period.

Where applicable we have disclosed the maximum fees payable for each fee item. If we intend to alter the fees we are charging we will give Investors a written notice at least 30 days prior to the alteration of the fee.


6. FEES AND COSTS

6.3 Example of annual fees and costs

This table gives an example of how fees and costs in the DDH Conservative Growth Fund can affect your investment over a 1 year period. You should use this table to compare this product with other managed investment products.

Example: DDH Conservative Balance of $50,000 with total contributionGrowth Fund of $5,000 during year

Contribution fees 0% to 3.3% For every additional $5,000 you put in, you will be charged between $0 and $165.

PLUS 1.25% And, for every $50,000 you have in the DDH Conservative Growth Fund,Management costs you will be charged $625 each year.

EQUALS If you had an investment of $50,000 at the beginning of the year and you put in anCost of Fund additional $5,000 during that year, you would be charged fees from : $625 - $790* What it costs you will depend on whether or not you use a financial advisor and the fees you negotiate with your financial advisor.

* Additional fees may apply: Ongoing advisor service fee – between $0 and $1,210 subject to negotiation with your financial advisor. Buy-sell spread on contribution - $10 on $5,000 contribution.

6.4 Investment Manager performance based remuneration

The DDH Global Fixed Interest Alpha Fund will invest in an underlying QIC fund from which a performance fee may be payable to QIC if certain performance hurdles are met. This would be in addition to the management costs paid to QIC as investment manager of that fund.

The performance fee is 20% of earnings of the fund generated above that fund’s benchmark, after the base management fee has been paid to QIC.

The performance fee is payable to QIC from assets of the fund. Therefore the value of the Units of the DDH Global Fixed Interest Alpha Fund is affected by performance fees which QIC is entitled to receive in respect of the underlying QIC fund. See example below:

Net Investment Amounts in DDH Global Fixed Interest Alpha Fund $50,000 $50,000

Assumed QIC fund net performance 10% 15%

Assumed benchmark performance 7% 7%

Out-performance of benchmark 3% 8%

Net value of investment (pre-performance fee) $55,000 $57,000

Performance fee (20% of out-performance) $300 $800

Net value of investment (post-performance fee) $54,700 $56,700


ADDITIONAL INFORMATION

7.1 Complaints resolution

If you have a complaint concerning your investment in the Funds please contact us on Freecall 1800 226 174 or put your complaint in writing and send it to:

DDH Investment Access FundsReply Paid 330 Brisbane QLD 4001

We will acknowledge any complaint in writing within 14 days of receiving the complaint and make every effort to resolve your issue within 45 days of being notified.

If the action taken by us is not satisfactory to you the complaint can be lodged with the Financial Ombudsman Service Limited (FOS) of which we are a member. FOS is an external dispute resolution service provider which provides free advice and assistance to consumers to help resolve complaints relating to financial service providers, and can be contacted as follows:

Financial Ombudsman Service Limited GPO Box 3 Melbourne VIC 3001

Freecall: 1300 78 08 08

Fax: (03) 9613 6399

Online complaint lodgement:www.fos.org.au

Email: [email protected]

7.2 Privacy

When you complete and submit the Application Form, we will be collecting important personal information from you.

We need to collect personal information from Investors for the primary purpose of processing applications and issuing Units. We may not be able to process a submitted Application Form unless you provide all information required by the Application Form. There are also a number of related purposes for which the personal information will be used. These are to administer your investment, provide you with services relating to your investment and comply with Australian taxation laws and other regulatory requirements.

The information that you provide to us may be disclosed to certain organisations. The types of organisations or persons to whom we may disclose the information provided by you include:

• the Australian Taxation Office, ASIC and other government or regulatory bodies as required by law;

• your advisor or advisor dealer group; and

• any agent, contractor or third party service provider engaged by the Funds to provide administration, custody, technology, auditing, mailing or printing services.

Please contact us on Freecall 1800 226 174 if you do not consent to us disclosing your personal information in these ways.

It is important that you contact us because, by investing in the Funds, you will be taken to have consented to these uses and disclosures.

In most cases, you can access the personal information that we hold about you subject to some exceptions allowed by law. If you would like to do so you need to contact us. We reserve the right to charge a fee for searching for and providing access to your information.

We aim to ensure that the personal information we retain about you is accurate, complete and up to date. To assist us with this, please contact us if any of the details you have provided change. If you have concerns about the completeness or accuracy of information we have about you, we will take steps to correct it.


7.3 Anti-money laundering disclosure

Under Australian legislation, the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act), certain additional identification is required from Investors. We are obliged under this legislation to satisfy thorough Investor identification and verification requirements prior to accepting an application for Units in the Fund. The processing of applications may be delayed until any requested documentation is received in a satisfactory form and the identity of the Investor is verified.

If an Applicant invests in the Fund through a dealer, IDPS or financial advisor then they will request and collect any verification materials from the Applicant. Applicants who invest in the Fund directly must provide us with the relevant identification material, along with a completed Application Form.

We may request additional information from Applicants where it reasonably considers it necessary to satisfy its obligations under the AML/CTF Act.

We will maintain all information collected from Applicants in a secure manner in accordance with the AML/CTF Act

and relevant privacy principles. We will only disclose information about an Applicant where we reasonably consider that we are required to do so by the laws of Australia. This means that identification information may be disclosed to government or law enforcement agencies. We may also disclose this information to other entities involved with the Fund to the extent that this information is required to fulfil our anti-money laundering obligations.

7.4 Labour standards, environmental, social or ethical considerations

Neither we nor QIC take into account labour standards, environmental, social or ethical implications for the purpose of selecting, retaining or realising the investments. However should the earnings potential of the investments be adversely affected by any of these issues, we may consider alternative investments.

7.5 Interests of our company and its directors

Except as set out below or elsewhere in this PDS, our company and its directors do not have nor have had at any time in the two years prior to the issue of this PDS, any interest in the Funds, the offer or any investments acquired by the Funds.

Our company and its directors hold Units in each of the Funds.

Each Fund may invest in other products for which we act as responsible entity, manager or agent.

The DDH Cash Fund invests in the Bank of Queensland “Money Market Deposit Account” product managed and administered by our Money Market division as agent for the Bank of Queensland. Bank of Queensland pays us a commission by way of a management fee in relation to the Money Market Deposit Account product. This does not affect the amount of any return payable to the DDH Cash Fund. As the total cost which Bank of Queensland pays to us in respect of funds deposited fluctuates with movements in the wholesale money market, it is impractical to disclose it in this PDS.


7.6 Facsimile instructions

You can fax written instructions to us subject to the following facsimile service conditions.

By using the facsimile instruction service you release us from, and indemnify us against, all losses arising from any payment or action made based on any instruction (even if not genuine) that was received by facsimile bearing your account number, a signature apparently yours or that of an authorised signatory on the account. You also agree that neither you nor anyone claiming through you has any claim against us in relation to these payments or actions.

7.7 Material contracts

This section is a summary of certain material legal documents relating to the DDH Investment Access Funds. These include the:

• Constitution;

• Investment Agreement;

• Custody Agreement; and

• Compliance Plan.

Constitution

The DDH Investment Access Funds are registered managed investment schemes under the Corporations Act and we are the Responsible Entity for them. The main rules governing the operation of the Funds are set out in each Fund’s Constitution. The Corporations Act, the Compliance Plan and the general law of trusts are also relevant to our rights and obligations and those of the Investors.

Each Constitution deals with a wide range of matters including:

• application procedures;

• the life and winding up of the Funds;

• complaints;

• the nature of Investors’ interests;

• income entitlements;

• the Responsible Entity’s powers;

• Investor meetings;

• liability of the Responsible Entity and its right of indemnity;

• liability of Investors; and

• the Responsible Entity’s fees and right to be reimbursed for expenses.

Copies of the Constitutions are available free of charge and can be obtained by contacting us.

Investment Agreement

We have entered into an Investment Agreement with QIC. The agreement provides a mandate for us to invest in nine QIC managed wholesale funds. The fee payable to QIC for investment management services (other than performance fees where applicable) is paid from the management fee pertaining to each DDH Investment Fund and is not an additional fee payable by Investors.

Our right to invest in the QIC funds is not dependent upon the Investment Agreement. Under the Investment Agreement each of the Funds other than the DDH Cash Fund must be invested in a QIC fund.

QIC may determine to wind up or terminate a QIC fund at any time. If this occurs QIC and the Responsible Entity will give Investors in any affected Fund notice of this fact and the Responsible Entity will work together with QIC to seek to invest in another QIC fund of a similar nature.

If the holdings of any of the Funds in the relevant QIC fund falls below $500,000, QIC may redeem the units held by that Fund. This does not apply during the establishment period of each Fund.


7. ADDITIONAL INFORMATION

Custody Agreement

We have entered into a Custody Agreement in respect of the Funds.

The Custodian is to enter into contracts to purchase and hold assets on our behalf. The Custodian’s duties also include opening and maintaining bank accounts to hold Application Money and other income of the Funds, maintaining records of the assets and providing reports to us. The Custodian’s liability under the Custody Agreement is limited, except in the case of fraud, negligence or breach of the Custody Agreement by the Custodian.

The Custodian is entitled to compensation for expenses incurred in connection with the proper performance of its duties and the exercise of its powers. The Custody Agreement continues until terminated. Either party may terminate the agreement on two months’ written notice unless a different period is agreed. Either party may terminate the agreement immediately on the occurrence of certain other events, including changes in corporate control, acts of insolvency, and material breaches of the agreement.

Compliance Plan

We have established a Compliance Plan for the Funds which is monitored by the Fund’s Compliance Committee. The Compliance Plan addresses compliance with laws, regulations and the Constitution and comprises structural, operational and maintenance elements.

Matters covered by the Compliance Plan include procedures for complaints handling, applications and distributions, monitoring and resolution of suspected breaches of the Corporations Act, audits, fees, related party transactions, conflicts of interest and disclosure and reporting requirements.

7.8 Declarations and consents

We are the issuer of this PDS. None of the persons named below has authorised or caused the issue of this PDS.

None of the persons named below has:

• Withdrawn their written consent to be named in this PDS in the form and context in which they are named; or

• Withdrawn their written consent to the inclusion in this PDS of the following information in the form and context in which it is included.

The Custodian has had no involvement in the preparation of any part of this PDS. The Custodian expressly disclaims and takes no responsibility for any other part of this PDS. It makes no statement in this PDS and has not authorised or caused the issue of it. The Custodian does not guarantee the success of the Funds nor the repayment of capital or any particular rate of capital or income return.

QIC has given consent to being named as Investment Manager of each of the QIC funds and to the inclusion of information in relation to QIC and the QIC funds and of its logo in this PDS.

QIC has only been involved in that part of the PDS which contains statements about QIC and its products, services and performance. QIC expressly disclaims and takes no responsibility for any other part of the PDS and has not authorised or caused the issue of or takes any responsibility for the contents of this PDS. QIC does not guarantee the success of the Funds nor the repayment of capital or any particular rate of capital or income return.

Bank of Queensland has given and, at the date of this PDS, has not withdrawn its consent to be named in the PDS in the form and context in which it is named. Bank of Queensland disclaims and takes no responsibility for any other part of the PDS and has not authorised or caused the issue of or takes any responsibility for the contents of the PDS. Bank of Queensland does not guarantee the repayment of capital or any particular rate of return. The Bank of Queensland is not responsible for making investment decisions in relation to the DDH Cash Fund and provides no advice to us in this regard.

7.9 Authorisation

This PDS is issued by us. Each of our directors has consented to the issue of this PDS.


DIRECT DEBIT REQUEST SERVICE AGREEMENT

Definitionsforthisagreement

account:the account nominated by you on the direct debit request.

agreement:this Direct Debit Request Service Agreement between you and us, including the direct debit request.

business day:a day other than a Saturday or Sunday or a listed public or bank holiday in Brisbane.

debit day:the day that payment is due.

debit payment:a particular transaction where a debit is made, according to your debit request.

direct debit request:the direct debit request between you and us.

us, we, our:DDH Graham Limited and /or the Custodian, the company you have authorised to debit your account.

you:the customer(s) who sign the direct debit request.

your financial institution:the financial institution where you hold the account that you have authorised us to arrange a debit.

1. Debiting your account

1.1 By signing a direct debit request, you authorise us to arrange for funds to be debited from your account according to the agreement we have with you.

1.2 We will only arrange for funds to be debited from your account:a) as authorised in the direct debit request: and/orb) according to any notice sent by you to us, specifying the amount payable

for a product and the date the payment is due.

1.3 If the debit day falls on a day that is not a business day, we may direct your financial institution to debit your account on the next business day. If you are unsure about which day your account has or will be debited, please check with your financial institution.

2. Changes by us

2.1 We may vary this agreement at any time by giving you at least 10 business days notice.

3. Changes by you

3.1 All change requests must be made in writing.

3.2 If you wish to stop or defer a debit payment you must write to us at least 10 business days before the next debit day. This notice should be given to us before you give notice to your financial institution.

3.3 You may also cancel your authority for us to debit your account at any time by giving us 10 business days notice in writing before the next debit day. This notice should be given to us in the first instance and should be sent to the postal address detailed in section 8.1 below.

4. Your obligations

4.1 It is your responsibility to ensure that there are sufficient clear funds available in your account and that you have made the necessary arrangements with your financial institution to allow a debit payment to be made.

4.2 If there are insufficient funds available in your account, or you have failed to make the necessary arrangements with your financial institution to meet a debit payment:a) you or your account may be charged a fee and/or interest by your financial

institution; andb) you or your account may be charged a fee to reimburse us for charges we

have incurred for the failed transaction.

4.3 Please check your account statement to verify that the amounts debited from your account are correct.

4.4 If we are liable to pay any goods and service tax (GST) on a supply made in connection with this agreement, then you agree to pay us on demand an amount equal to the GST included in the consideration payable for the supply.

5. Queries

5.1 If you believe that there has been an error in debiting your account, simply call 1800 226 174 between 8.30 am and 5.00 pm Monday to Friday (Brisbane time) and confirm the details in writing with us as soon as possible so that we can resolve your concerns quickly.


7. ADDITIONAL INFORMATION

5.2 Should your account be incorrectly debited we will arrange for your financial institution to adjust your account (including interest and charges) accordingly. We will also notify you in writing of the amount by which your account has been adjusted.

5.3 If we conclude that your account has not been incorrectly debited we will respond to your query giving you reasons and copies of any documents we believe justify the view we have taken.

5.4 If you are not satisfied with our response to your query, you should follow the procedure under the section titled “Complaints resolution” on page 32 . If we cannot resolve the matter you can still refer it to your financial institution which will obtain details from you of your transaction and may lodge a claim on your behalf.

6. Accounts

6.1 You should check:a) with your financial institution whether direct debiting is available from

your account as it is not available on all accounts offered by financial institutions;

b) your account details which have been provided to us are correct by checking them against a recent account statement; and

c) with your financial institution before completing the direct debit request if you have any queries about how to complete the direct debit request.

6.2 Please note: If the account number you have quoted is incorrect, you may be charged a fee to reimburse our costs in correcting any deductions from:a) an account you do not have an authority to operate; orb) an account you do not own.

7. Confidentiality

7.1 Apart from disclosure in accordance with our privacy policy to necessary third party service providers, we will keep any information (including your account details) in your direct debit request confidential. We will make reasonable efforts to keep any such information that we have about you secure and to ensure that any of our employees or agents who have access to information about you do not make any unauthorised use, modification, reproduction or disclosure of that information.

7.2 We will only disclose information that we have about you:a) to the extent specifically permitted by law; orb) for the purpose of this agreement (including disclosing information in

connection with any query, dispute or claim).

8. Notice

8.1 If you wish to notify us in writing about anything relating to this agreement, please send your notification to:

DDH Investment Access FundsReply Paid 330BrisbaneQLD 4001

8.2 We will notify you by sending a notice by ordinary post to the last email address you notified to us.

8.3 Any notice will be deemed to have been received five business days after it is posted.


GLOSSARY (including Defined Terms)

Absolute return: The actual return on money invested.

Active management: A style of investment management which seeks to attain returns above a set benchmark by asset allocation and stock selection.

AFSL: Australian Financial Services Licence.

Alternate investment: Alternate assets are assets not generally included in other asset classes and may include commodities, infrastructure and certain unlisted or illiquid securities.

AML/CTF: Anti-money Laundering and Counter-Terrorism Financing Act 2006 together with the relevant legislative instruments.

Application Form: The application form for Units in the Funds accompanying this PDS.

Application Money: The money payable by an applicant on submitting the Application Form.

Application Price: The price at which Units are issued. This price rises and falls with changes in value of the underlying assets held in a designated Fund. A Buy/Sell spread may be included in the application price.

ASIC: Australian Securities and Investments Commission.

Benchmark: When setting objectives and monitoring portfolio performance, benchmarks are used. These are typically market indicators such as the S&P/ASX 200 Accumulation Index that measure the performance of the market as a whole and allow us to compare a portfolio’s performance with the overall movement in the market.

Business Day: A day other than a Saturday, Sunday or public holiday in Brisbane, Queensland.

Buy/sell spread: The difference between a Fund’s Application and Withdrawal Prices. It is used to defray the transaction costs incurred in buying and selling the underlying assets of the Fund. The buy/sell spread may be charged to an Investor in Units on application, withdrawal and when switching between Funds. It is not a management fee paid or payable to DDH or QIC.

CPI: The Consumer Price Index (All Groups) as determined and published by the Australian Bureau of Statistics.

Compliance Plan: The compliance plan for each Fund lodged by the Responsible Entity with ASIC.

Constitution: The deeds governing the Funds and lodged with ASIC, as amended from time to time.

Corporations Act: Corporations Act 2001 (Cth).

Custodian: An entity appointed from time to time by the Responsible Entity to hold certain assets of the Funds as its agent. .

Custody Agreement: The agreement pursuant to which the Responsible Entity has appointed the Custodian to act as custodian in relation to the Funds.

DDH Investment Access Each of:Funds or Funds: (a) DDH Conservative Growth Fund; (b) DDH Balanced Growth Fund (c) DDH Aggressive Growth Fund; (d) DDH Australian Shares Fund; (e) DDH Australian Equities Fund (active); (f) DDH Australian Small Companies Fund;


(g) DDH Fixed Interest Fund; (h) DDH Global Fixed Interest Alpha; and (i) DDH Cash Fund.

Dynamic Asset Refers to the position of having and using asset allocation ranges. DAA allows the manager toAllocation (DAA) change fund exposures, allowing the portfolio to move within predetermined ranges, depending on

the phase of the business cycle and changes in expected asset class returns.

Investment Manager: QIC in its capacity as Investment Manager of the underlying QIC wholesale funds in which the Funds will invest.

Investor: A holder of Units in one or more of the Funds.

Lightly managed A style of investment management which seeks to attain enhanced returns by undertaking a relatively small number of transactions.

PDS: This product disclosure statement dated 1 July 2009.

QIC: QIC Limited ACN 130 539 123

QIC funds Each of:or (a) QIC Australian Equities Fund No. 1;QIC Investment Access (b) QIC Active Australian Equities Fund No.1;Funds (c) QIC Active Small Companies Fund No.1; (d) QIC Australian Fixed Interest Fund; (e) QIC GFI Alpha Fund; (f) QIC Tactical Return Fund; (g) QIC Stable Fund; (h) QIC Growth Fund; and, (i) QIC Hedged International Equities Fund

Regular Savings Plan A plan which permits regular additional investments in a Fund, as described on page 19.(RSP)

Reinvestment Price: The price at which Units are issued when an Investor elects to have their distribution reinvested as additional Units in a Fund.

Responsible Entity (RE) DDH Graham Limited ACN 010 639 219, AFSL 226 319.and Issuer:

Strategic Asset Allocation Refers to the composition of an asset mix within a portfolio, based on the long term investment objectives of a Fund, rather than being based on short term views of the relative performance of the various asset classes.

Tactical asset allocation A style of investment which seeks to take advantage of short term changes in perceived market value across asset classes. QIC can increase its exposure to assets that are expected to perform relatively well and decrease its exposure to those expected to perform poorly.

Unit(s): Means a unit in any of the Funds.

Withdrawal Price: The price at which Units are redeemed. This price rises and falls with changes in the value of the underlying assets held in a designated Fund. A Buy/Sell spread may be included in the Withdrawal Price.

Wholesale Client: Has the meaning given in section 761G of the Corporations Act.



Directory

Investment Manager

QIC LimitedACN 130 539 1235th Floor, Central Plaza II66 Eagle StreetBrisbane QLD 4000

Investor Relations

You can obtain information about investing in the Funds including the latest Unit price via:

Freecall: 1800 226 174

Telephone: (07) 3210 2277

Email: [email protected]

Internet: www.ddhgraham.com.au

Responsible Entity & Registry

DDH Graham LimitedABN 28 010 639 219AFSL 226319Level 18344 Queen StreetBrisbane QLD 4000

Contact Details:

Website www.ddhgraham.com.au

Telephone Freecall 1800 226 174 (07) 3210 2277

Facsimile (07) 3210 6986

Email [email protected]

Postal address DDH Graham Limited or GPO Box 330 Reply Paid 330 Brisbane QLD 4001 Brisbane QLD 4001

Which forms do I complete?

If this is your first investment into the DDH Investment Access Funds, complete the relevant sections of the Application Form that accompanies this PDS and provide the required identification documents as detailed in the AML/CTF Checklist.To start an investment into any Fund in the PDS the minimum initial investment amount is $2,000* (if you are opening a regular savings plan, the minimum is reduced to $500).

If you are an existing investor and you wish to switch investments out of one Fund/s to another Fund/s, please complete the Switching Form included in this PDS.

If you are an existing investor with DDH Graham Limited and wish to invest in a new Fund or add to your existing holdings without providing all your details again, please complete the Additional Investment Form included in this PDS.

If you would like to make regular contributions into any fund using our regular savings plan facility by having your Australian bank account automatically debited each month, please complete the Direct Debit Request Form included in this PDS (this will authorise us to withdraw the amount you specify from the bank account you specify each month - your regular savings plan contribution).

Note that the regular savings plan facility can be started up at any time to make regular contributions to an existing Fund, or can be opened when you make your first investment into a new Fund. Please note that the Direct Debit Request Form only allows us to activate your regular savings plan - it cannot be used to pay your initial, startup investment. Your initial investment must be paid to us by cheque or electronic funds transfer.

Send the form(s) and cheque (unless paying by electronic funds transfer) to:

DDH Graham LimitedGPO Box 330Brisbane Qld 4001

* Or such lesser amount as the Manager may agree from time to time.

Forms



FORMS continued

Instructions for completing the Application Form

If you are a new investor opening an account, the following instructions will assist you in completing the Application Form included in this PDS with the correct name and the correct signatures.

If you are investing as:

Investor type Which ‘Name’ section Who signs?

An individual Complete section 3 Individual to sign

As joint investors Complete section 3 providing both investors’ Each individual to sign names

A company acting as Complete section 4 Two directors or a director and company trustee for a You can profide the name of the secretary must sign unless there is a solesuperannuation fund or a trust/superannuation fund in the account director and secretary, in which case only thattrust designation box. person must sign. Each person must state his or her capacity.

A company Complete section 4 Two directors or a director and company secretary must sign unless there is a sole director and secretary, in which case only that person must sign. Each person must state his or her capacity.

Individual trustees of a Complete section 3 Each individual trustee to signsuperannuation fund or You can provide the name of the trust trust/superannuation fund in the account designation box.

A partnership Partners should complete section 3 Partners to signA child under the age of An adult should complete section 3 Adults to sign18 You can provide the child’s name/fund in the account designation box.

A deceased estate Executor should complete section 3 Executor(s) to sign You can provide the estate’s name in the account designation box.

A club, charity, church or Office bearers should complete section 3 Office bearers to signan unincorporated body You can provide the club, charity, church or unincorporated body’s name in the account designation box.

Application Form checklistc Provided your contact details - section 5

c Nominated how you want us to act on your instructions - section 6

c Completed the Tax File Number Declaration form - section 11

c Provided your bank account details if you nominated to receive you distributions direct to your bank account - section 10

c Signed and dated the signature declaration - section 12

c If required, complete an AML/CTF Checklist and provide certified copies of any required identification documents

c Included your cheque made payable to:

DDH Investment Access Funds Application Account

or

c Transfer your application monies to the following account:

Account name: DDH Investment Access Funds Application Account Bank: Bank of Queensland BSB: 124-001 Account number: 998726000


This page has been left blank intentionally

INSIDE BACK COVER - POCKET FOR FORMS

DDH Investment Access Funds

Investor Forms

• Application Form• Regular Savings Plan - Direct Debit Form

• Additional Investment Form• Switching Form

Need assistance in completing any of the forms?

Contact the Fund Services team

Freecall: 1800 226 174 orEmail: [email protected]

of 6

2

3

This Application Form relates to the DDH Investment Access Funds (the ‘Funds’) Product Disclosure Statement dated 1 July 2009. Units in the Funds are issued by DDH Graham Limited ABN 28 010 639 219 holder of Australian Financial Services Licence Number 226319. This Application Form must not be handed to any person unless included or accompanied by the PDS. The PDS contains important information about investing in Units in the Funds. It is advisable to read the PDS before applying for these Units. A person who gives another person access to this Application Form must at the same time, and by the same means, give the other person access to the PDS. We will send you a paper copy of the PDS on request without charge.

Please complete form using capital letters.

What type of investor are you?

Name of Individual Investor or Individual Trustee of a Trust or Superannuation Fund

1 Do you have an existing investment with DDH Graham Limited?

No Go to section 2

Yes

Investor number

Please provide your investor number if you would like your investment to be recorded in the same account.

Please complete the remainder of this Application Form.

Individual investor Company

Individual Trustee/s

Corporate Trustee

On behalf of partnership

On behalf of deceased estate

Club, charity, church or other unincorporated body

Joint investor

Adult for child under 18

Individual Joint -1 On behalf of partnership Trustee Adult for child under 18

Joint -2 On behalf of partnership Trustee Adult for child under 18

Club, charity, church or other unincorporated bodyOn behalf of deceased estate

Go to section 4

On behalf of Trust or Superannuation Fund as:

Go to section 3

Go to section 4Go to section 3

Investor 1

Investor 2

Firstnames

Firstnames

Capacity

Title

Surname

Date of birth

Account designation

Capacity

Title

Surname

Date of birth

i.e. name of partnership / child under 18 / estate

If there are additional account holders please provide details in writing and attach to this form.Please go to section 5.

< A/C>

OFFICE USE ONLY

Date: Time:

DDH Investment Access FundsApplication Form

Affix cheque here

If paying by cheque please make your cheque payable to the DDH Investment Access Funds Application Account and return your completed form along with your cheque to: DDH Graham Limited, Reply Paid 330, Brisbane QLD 4001.If paying by electronic funds transfer please refer to page 23 of the PDS for payment instructions and return your completed form to the address above.

Please see the instructions on page 42 of the PDS as a guide.

Application Form continued

4 Name of Company or Corporate Trustee of Trust or Superannuation Fund

Name of Companyor Corporate Trustee

Account designation

ABN (if applicable)

Contact name

i.e. name of trust / superannuation fund

< A/C>

5 What are your contact details?

Work phone

State

State

Postcode

Postcode

Residential address

Home phone

Postal address*

Residential address

Country of residence

Home phone

Email address

* If different to residential address above

Non residents - please provide an international address in addition to the above address

( ) ( )

( )( )

State

Postcode/zipcode

Work phone

6 How would you like us to act on your instructions?(a) Please select one or more of the following options (if you do not select an option, we will only accept instructions via letter).

(b) For joint unitholders only.

Letter - Only your original, written instructions will be acted on.

We will accept instructions, including a request for withdrawal from either (any) party, unless you indicate otherwise in the box.

Both of the above - Your written and facsimilied instructions will be acted on.

Facsimile - Your faxed written instructions or originals will be acted on.Refer to page 34 of the PDS for the terms and conditions.

7 Would you like to receive a copy of the Fund’s Annual Financial Report?Tick the following box if you would like to receive a copy of the Annual Financial Report for the Funds.

Yes

At any stage you can request the latest copy of the financial annual reports or the half-yearly financial reports for the Funds via:

• our Fund Services team on 1800 226 174• email [email protected] and a copy will be emailed to you free of charge.

The Annual Financial Reports for the Funds are also available via our website at www.ddhgraham.com.au

Page 2 of 6


8 Which Fund(s) would you like to invest in?

Funds (minimum $2,000 or $500 with regular savings plan*) $ Amount

DDH Conservative Growth Fund $ .

DDH Balanced Growth Fund $ .

DDH Aggressive Growth Fund $ .

DDH Australian Shares Fund $ .

DDH Australian Equities Fund (active) $ .

DDH Australian Small Companies Fund $ .

DDH Fixed Interest Fund $ .

DDH Global Fixed Interest Alpha Fund $ .

DDH Cash Fund $ .

Your total investment comes to:

* If you wish to start a regular savings plan, please complete section 9 below and the Direct Debit Request Form.

$ .

9 In addition to this investment, do you wish to start a savings plan?

Please select one of the following options (if you do not select an option we will assume that you do not wish to start a savings plan).

Yes Please complete the Direct Debit Request Form. Note: Your initial investment must be paid by cheque or by electronic funds transfer.

No

-

Name offinancial institution

Address offinancial institution

Account name withfinancial institution(e.g. JOHN SMITH)

BSB (branch number)

Account number

<

A/C>

10 How would you like to receive your income distributions?

Please select one of the following options (if you do not select an option we will assume you have selected option (a)).

(a) Reinvest income in additional Units

(c) Pay income directly into bank or financial institution account in Australia other than (b) above (please complete details below).

(b) Pay income into your DDH/Bank of Queensland Money Market Deposit Account (this option is only open to existing Money Market Deposit Account Holders).or

or

Account number 9 9 8 7

Page 3 of 6


11 What is your Tax File Number, Australian Business Number or exemption?

Partnership

Child under 18.Note that the Funds do not accept investments directly in the name of a minor. Applicants can only be accepted in the name of a trustee.

Recipient of age, invalid, service or veteran’s pension.

Recipient of another type of pension - wife, carer, widow, sole parent, special benefit.

Organisation not required to lodge tax return.

Non-resident of Australia.

Company Trust Superannuation Fund

If you choose not to quote your Tax File Number (TFN) /Australian Business Number (ABN) nor claim an exemption, we are required to deduct tax at the highest marginal tax rate plus Medicare levy from any income payable to you.If provided, your TFN will apply automatically to any future investment in the Funds or switches to other DDH Investment Access Funds unless you indicate otherwise.You can choose not to quote your TFN/ABN or claim an exemption. Declining to quote a TFN is not an offence. We are authorised to receive tax file information under tax law. For more infomation about TFNs/ABNs please call your nearest tax office.

TFN ABNInvestor 1

TFN ABNInvestor 2

TFN ABN

Or (select one of the following and fill in the appropriate TFN/ABN details)

Do you have a tax exemption?

Any applicant who has a TFN but is exempt, should still quote that TFN. Exempt applicants should then indicate their exemption below to avoid tax being deducted from any income distribution.

Applicants in the name of a trustee on behalf of a minor should quote their TFN.

12 Applicant acknowledgement and signature(s) ALL APPLICANTS MUST COMPLETE THIS SECTION

(a) Applicant acknowledgement

I/We agree to be bound by the provisions of the Constitution that governs the Fund in which I/we apply to invest as amended from time to time.I/We have read the Product Disclosure Statement dated 1 July 2009.I/We agree that if we use the facsimile service I/we will be bound by the terms and conditions applicable to the facility as set out in the PDS, as amended from time to time.I/We acknowledge that DDH Graham Limited (“DDH”) may accept instruction from any one investor in a joint unitholding, unless I/we have specified otherwise on this Application Form.I/We acknowledge and agree to promptly repay any withdrawal, distribution or other payment notified by the Responsible Entity to me/us as being made in error.I/We understand that information concerning me/us collected from any source, including any information:• contained in this Application Form• contained in the AML/CTF Checklist or provided with that form• relating to the outcome of this application• relating to my death or insolvency• which otherwise incorporates any DDH references for any of my/our

accounts with DDHmay be made available or used by my/our adviser whose details appear on this form, DDH or any entity carrying out functions on behalf of DDH for the purposes of:• enabling DDH to process my/our application and administer the

products or services DDH supplies to me/us• DDH offering other services or products which may be of interest to

me/us unless I/we request in writing that DDH does not do so• prevention and detection of money laundering and terrorist financing• verifying my/our identity and customer due diligence purposes, or• any other purpose authorised by law.I/We also understand that:• failure to provide information required in this application may affect

the success of this application or any further application I/we may make to DDH.

• I/We can amend any personal information that DDH holds about me/us or find out what information DDH holds about me/us, by contacting the Privacy Officer, DDH Graham Limited, GPO Box 330, Brisbane Qld 4001 at any time in writing.

• while DDH will take all reasonable steps to protect information that I/we provide, DDH cannot guarantee the security of certain types of information provided by me/us (for example over the internet or by email).

I/We hereby consent for DDH to collect, retain, use, store and disclose such information as detailed above.I/We hereby certify that I/we am/are not a foreign shell bank (a bank that does not maintain a physical presence in any country).I/We hereby certify that I/we am/are not a US Person(s) (as defined below) nor do I/we act on behalf of or for the benefit of any US Person and I/we agree to notify DDH immediately if I/we become a US Person. Further, I/we understand and agree that the Units described in the PDS may not be offered to a US Person (as defined below) and I/we will not, subject to the discretion of DDH, at any time cause my/our Units to be sold or transferred, directly or indirectly to or for the benefit of a US Person.US Persons include:(a) any natural person resident in the United States;(b) any partnership or corporation organised or incorporated under the

laws of the United States;(c) any estate of which any executor or administrator is a US Person;(d) any trust of which any trustee is a US Person;(e) any agency or branch of a foreign entity located in the United States;(f) any non-discretionary account or similar account (other than an

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

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

Page 4 of 6


12 Applicant acknowledgement and signature(s) ALL APPLICANTS MUST COMPLETE THIS SECTION continued

(a) Applicant acknowledgement continued

(h) any partnership or corporation if (a) organised or incorporated under the laws of any foreign jurisdiction and (b) formed by a US Person principally for the purpose of investing in securities not registered under the US Securities Act of 1933, as amended, unless it is organised or incorporated, and owned, by ‘accredited investors’ (within the meaning given to such term in Regulation D under the Securities Act) who are not natural persons, estates or trusts.

I/We certify that I/we received the PDS in Australia and have completed this Application Form in Australia.

(b) Applicant signature(s)

• Companies signing by duly authorised representatives must provide appropriate documentation showing the proper appointment of the representatives to DDH Graham Limited.

• If signed under Power of Attorney, the attorney hereby certifies that no notice of revocation of that power has been received by the attorney.

• Applications by clubs, charities, churches or unincorporated bodies must be signed by the authorised office bearers (e.g. A. Smith - President) and a copy of the Constitution/Rules attached.

1st Individual applicant OR director OR office bearer (company signatories must include their company title)

Director Sole director and sole secretaryCapacity (if company)

Signature

Full name

SIGN HEREDate signed

2nd Joint individual applicant OR director/secretary OR office bearer (company signatories must include their company title)

Director SecretaryCapacity (if company)

Signature

Full name


3rd Joint individual applicant

Signature

Full name


Page 5 of 6


13 Advisers only are to complete the following section

Contribution fee

Please specify the contribution fee the applicant is to pay on investment in the Fund(s) with a contribution fee payable.

Initial entry fee (GST inclusive). If no amount is nominated, the default will apply.

1.1%0% (default)

Other

2.2% 3.3%

Note: Maximum fee is 3.3%%

Ongoing Adviser Service fee

Please specify the ongoing adviser service fee the applicant is to pay from their investment in the Fund(s).

Ongoing adviser service fee (GST inclusive). If no amount is nominated, the default will apply.

1.1%0% (default)

Other

2.2%


SIGN HERE

Adviser name

Adviser address

Adviser telephone number ( )

ADMINISTRATION USE ONLY

Rep Code

Adviser stamp

Return your completed Application Form along with your cheque (unless paying by electronic funds transfer) to:

DDH Graham LimitedReply Paid 330Brisbane QLD 4001

Page 6 of 6

If you wish to start a regular savings plan to add to an existing or new investment via direct debit from an existing bank account, please complete the following form. If the investment is into a new Fund, then you must pay your initial minimum investment by cheque or electronic funds transfer before your monthly contributions can be debited to your nominated account (attach the cheque to your Application Form).

This section must be completed by the holder/s of the bank account we are debiting from.

DDH Investment Access FundsRegular Savings Plan - Direct Debit Form

1 Declaration

I/We

Investor number

Title

Surname

Firstnames

Joint account holder (if applicable)

Investor number

Title

Surname

Firstnames

...hereby request DDH Graham Limited or the appointed custodian for the DDH Investment Access Funds (‘the user’) and authorise to arrange for any amount DDH Graham Limited may debit or charge you to be debited through the Bulk Electronic Clearing System from an account held at the financial institution identified below subject to the terms and conditions of the Direct Debit Request - Service Agreement and any further instructions provided below.

2 Details of account to be debited

-




BSB (branch number)

Account number

<

A/C>

3 Regular savings plan details

Funds (minimun $100 per month) $ Monthly amount









DDH Cash Fund $ .

Page 1 of 2

Regular Savings Plan - Direct Debit Form continued

4 Acknowledgement

By signing this Direct Debit Request you acknowledge having read and understood the terms and conditions governing the debit arrangements between you and DDH Graham Limited as set out in this Request and in your Direct Debit Request - Service Agreement (see the current Product Disclosure Statement and any Supplementary Product Disclosure Statements).

Company title

Signature

Date

Director Sole director and sole secretary

SIGN HERE

Investor 1 or company officer

Company signatories must indicate their company title

Director Sole director and sole secretary

SIGN HERE

Investor 2 or company officer

Company signatories must indicate their company title

Return your completed Direct Debit Form to:


Page 2 of 2

This form is only for existing investorsThis Additional Investment Form relates to the DDH Investment Access Funds (the ‘Funds’) Product Disclosure Statement dated 1 July 2009. Units in the Funds are issued by DDH Graham Limited ABN 28 010 639 219 holder of Australian Financial Services Licence Number 226319. This Additional Investment Form must not be handed to any person unless included or accompanied by the PDS. The PDS contains important information about investing in Units in the Funds. It is advisable to read the PDS before applying for these Units. A person who gives another person access to this Additional Investment Form must at the same time, and by the same means, give the other person access to the PDS. We will send you a paper copy of the PDS on request without charge.

DDH Investment Access FundsAdditional Investment Form

Affix cheque here

OFFICE USE ONLY

Date: Time:

1 Your existing DDH Graham Limited investor details

2 Have your contact details changed?

All investors are to complete the following sections

Please fill in your details below. Your additional investment will be made in the same name as your existing investment.

Please fill in your new contact details, only if they have changed since you last provided us with your contact details.

Investor number

Contact name

Home phone ( )

Work phone

State

State

Postcode

Postcode

Residential address

Home phone

Postal address*

* If different to residential address above

( ) ( )

3 Where would you like your additional investment(s) to be invested?

Funds (minimum additional investment $500 for existing investments or $2,000 when adding a new fund to your existing account)* $ Amount









DDH Cash Fund $ .

Your total investment comes to:

* If you wish to start a regular savings plan, please complete section 4 and the Direct Debit Request Form.

$ .

Page 1 of 4

5 Is this an initial investment into a new Fund?

Please select one of the following options.

Yes Please complete section 6 below.

No

4 In addition to this investment, do you wish to start a savings plan?

Please select one of the following options (if you do not select an option we will assume that you do not wish to start a savings plan).

Yes Please complete the Direct Debit Request Form. Note: Your initial investment must be paid by cheque or by electronic funds transfer.

No

Additional Investment Form continued

6 How would you like to receive your income distributions?

-




BSB (branch number)

Account number

<

A/C>





or


Page 2 of 4




















Signature

Full name




Signature

Full name


Page 3 of 4



(b) Applicant signature(s) continued3rd Joint individual applicant

Signature Date signed

Full name

SIGN HERE




8 Advisers only are to complete the following section

Contribution fee

Please specify the contribution fee the applicant is to pay on investment in the Fund(s) with a contribution fee payable.

Initial entry fee (GST inclusive). If no amount is nominated, the default will apply.

1.1%0% (default)

Other

2.2% 3.3%


Ongoing Adviser Service fee

Please specify the ongoing adviser service fee the applicant is to pay from their investment in the Fund(s).

Ongoing adviser service fee (GST inclusive). If no amount is nominated, the default will apply.

1.1%0% (default)

Other

2.2%


SIGN HERE

Adviser name

Adviser address

Adviser telephone number ( )

ADMINISTRATION USE ONLY

Rep Code

Adviser stamp

Return your completed Application Form along with your cheque (unless paying by electronic funds transfer) to:


Page 4 of 4

This Switching Form relates to the DDH Investment Access Funds (the ‘Funds’) Product Disclosure Statement dated 1 July 2009. Units in the Funds are issued by DDH Graham Limited ABN 28 010 639 219 holder of Australian Financial Services Licence Number 226319. This Switching Form must not be handed to any person unless included or accompanied by the PDS. The PDS contains important information about investing in Units in the Funds. It is advisable to read the PDS before applying for these Units. A person who gives another person access to this Switching Form must at the same time, and by the same means, give the other person access to the PDS. We will send you a paper copy of the PDS on request without charge.

DDH Investment Access FundsSwitching Form

Affix cheque here

OFFICE USE ONLY

Date: Time:

1 Please provide your current DDH Graham Limited investor number

2 Have your contact details changed?

Investor number

Work phone

State

State

Postcode

Postcode

Residential address

Home phone

Postal address*

hereby request that you switch from my/our holding in accordance with the following instructions.

( ) ( )

I/We...

of (please fill in your new contact details, only if they have changed since you last provided us with your contact details).

Firstnames

3 Where would you like to switch Funds?

Please select the Fund you wish to switch from: Please select the Fund you wishto switch to:

* Note that if this is the initial, start-up investment into a new Fund the amount must be a minimum of $2,000. If a regular savings plan is started (complete the Direct Debit Request Form) then the minimum investment is reduced to $500.

If this is an initial, start-up investment into a new Fund, please complete section 4.

$ Amount*$ AmountAll Units No. of Units Funds (minimum $500) Full amount %

DDH Conservative Growth Fund

DDH Balanced Growth Fund

DDH Aggressive Growth Fund

DDH Australian Shares Fund

DDH Australian Equities Fund (active)

DDH Australian Small Companies Fund

DDH Fixed Interest Fund

DDH Global Fixed Interest Alpha Fund

DDH Cash Fund

TotalTotal 100%

$ .

$ .

$ .

$ .

$ .

$ .

$ .

$ .

$ .

$ .

$ .

$ .

$ .

$ .

$ .

$ .

$ .

$ .

$ .

$ .

Page 1 of 3

4 How would you like to receive your income?

-




BSB (branch number)

Account number

<

A/C>





or


Switching Form continued
















Page 2 of 3

Switching Form continued








Signature

Full name




Signature

Full name


3rd Joint individual applicant

Signature

Full name


Page 3 of 3

This page has been left blank intentionally.

DDH Graham LimitedLevel 18344 Queen StreetBrisbane QLD 4000

GPO Box 330Brisbane QLD 4001

Website www.ddhgraham.com.au

Telephone Freecall 1800 226 174 (07) 3210 2277

Facsimile (07) 3210 6986

Email [email protected]

DDH INVESTMENT ACCESS FUNDS - MLC · 4 DDH Global Fixed Interest Alpha Fund ARSN 120 591 531 4 DDH...

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