A fund backed by everyday Australian Home and Car Loans

An investment in Firstmac High Livez ARSN 147 322 923 (Fund) entails risk, the following is a non-exhaustive summary of some of the risks applying to an investment in the Fund. Prior to making an investment in the Fund you should carefully read the product disclosure statement and consider obtaining professional financial advice.

Market risk Auto ABS is a type of Asset-Backed Security that is secured by automobile consumer and commercial loans. Similar to RMBS risk (above) whether principal and interest is paid on an ABS note partly depends on whether the underlying borrowers default on the loans.

The repayment of capital is not guaranteed. Consequently, you could lose some or all of your money invested in the Fund.

This risk relates to the Fund's exposure to movements in credit risk ratings of issuers of the fund's assets. Credit risk ratings are an assessment of an issuer's ability to meet its financial obligations. If credit risk ratings change, this may reduce the value of the Fund's assets which may in turn reduce the overall value of the Fund.

The risk that the capital value or income of an investment may be adversely affected when interest rates rise or fall. In particular, the income of a RMBS can fluctuate significantly in reaction to changes in interest rates. RMBS transactions are typically floating rate in nature paying a fixed margin over BBSW. Reductions in BBSW will result in a lower income. The capital value of RMBS can fluctuate significantly in reaction to changes in fixed margins available in the market.

Generally, the investment return on a particular asset is correlated to the return on other assets from the same market, region or asset class. Market risk is impacted by broad factors such as interest rates, political environment, investor sentiment and certain events may have a negative effect on the price of all types of investments within a particular market. These events may include changes in economic, social, technological or political conditions, as well as market sentiment, the causes of which may include changes in governments or government policies, political unrest, wars, terrorism, pandemics and natural, nuclear and environmental disasters. The duration and potential impacts of such events can be highly unpredictable, which may give rise to increased and/or prolonged market volatility.

RMBS is a type of Asset-Backed Security that is secured by a pool of residential mortgages. Whether principal and interest is paid on an RMBS note partly depends on whether the underlying borrowers default on the loans held by the RMBS trust. If the underlying borrower does default on their loan, the following steps will usually occur:

• Possession taken of the residential property,
• Sale of the residential property RMBS risk
• Any shortfall is submitted as a claim to mortgage insurers If mortgage insurers
• If mortgage insurers are unable to pay the claim (for example deteriorated financial capacity arising from extreme adverse financial conditions) then the shortfall would be absorbed by the net interest margin of the RMBS trust
• If the net interest margin is insufficient then the cash reserve, if any, would be used to meet the shortfall
• If the cash reserve is insufficient then the principal of the lowest Class notes is reduced
• If the lowest Class note is insufficient then the principal of the lowest Class notes is reduced
• If that Class note is insufficient then the principal of the next lowest Class note is reduced and so on. The highest Class notes will have a lower interest rate because of their security position at the top of the principal and interest priority order. The lower Class notes will have a higher interest rate because of their security position in the principal and interest priority order.

The term prime refers to the credit quality of an underlying mortgage and includes only borrowers with clean credit histories with no prior credit defaults.

Auto ABS are Asset-Backed Securities which are secured by a pool of prime automobile consumer and commercial loans.

The Firstmac High Livez is a unit trust which gives investors the opportunity to pool their money with that of other investors to achieve economies of scale.

Residential Mortgage Backed Securities (RMBS) are a type of Note or Bond that is secured by a pool of residential mortgages. An RMBS note is typically registered on Austraclear, a clearing and settlement system used in capital markets, and is able to be traded in the secondary market. An RMBS transaction will usually be issued in two or more separate tranches based on the priority of principal and interest payments.

An investment in the fund gives:

• Investors the opportunity to pool their money with that of other investors which could achieve economies of scale
• Lower management costs than some peers
• Access to investments not normally available to the retail public

We only invest in prime RMBS and Auto ABS assets. The mortgages held in the underlying bonds are geographically spread across Australia. The Investment Committee formally evaluates each bond the funds invests in to manage portfolio risk. We invest across a number of bond issuers ranging from the Big4, credit unions and non-bank financial institutions.

It's a managed fund so we manage the investment choice. That means you just invest in High Livez, and we choose which bonds the fund invests in.

The initial minimum investment amount is $10,000. You must also maintain a minimum balance amount of $10,000.

Yes, you can. Additional contributions of $1,000 or more can be made monthly. Regular contributions are accepted through direct debit. Contact us to find out more.

No, there are no exit fees. However, withdrawals are only allowed monthly. Contact us for the withdrawal process and timelines.

‘When we receive your funds into the Applications accounts, they will remain there until the end of the month. Units in the Trust will be issued on the first day of the following month. Investors should be aware that funds received into the Applications account will not receive interest until Units are issued.

Distributions can either be automatically reinvested into the Trust or credited to your nominated bank account.

You can choose whichever option you prefer, whether to credit the monthly distribution to your bank account or reinvest it into your High Livez account. You can always change it along the way.

You can invest for as long as you like. The suggested investment term is 3-5 years.

The trust is valued monthly and the distributions are paid monthly.

The financial services provided by us and referred to in this FSG are:

• Arranging the issue of financial products – arranging your application for the issue of Units in Firstmac High Livez – where we act on your behalf;
• Proving general advice – providing general financial product advice about Firstmac High Livez – where we act on our own behalf; and
• Investment management – managing the investments within Firstmac High Livez – where we act on behalf of Perpetual.

Potential conflicts may occasionally arise between your interests, our interests, and those of our related parties and other parties (including service providers appointed by us). As the holder of an Australian Financial Services Licence (AFSL), we have statutory and common law fiduciary duties to manage conflicts of interest, and if there is a conflict between your interests and our own interests, give priority to your interests. We have policies, procedures and organisational arrangements in place to manage conflicts of interest. Our Board is responsible for the management and resolution of conflicts of interest arising in relation to the operation of our financial services business.

Contact us and we will email you the Product Disclosure Statement along with the application form.