Target Market Determinations

For the convenience of our clients we’ve added a summary of the target market determinations for the managed funds that are in our multi-asset portfolios to our portfolios spreadsheet.

Most funds use a standard template that codes a product G (green) if it is in the target market, A (amber) if potentially in the target market and R (red) if not in the target market. An investor is unlikely to be in the target market for a product if they have one or more attributes with an R (red) rating or three more with an A (amber) rating. Most investment product TMDs also contain a statement to the effect that if an investor holds a fund as part of a diversified investment portfolio then the product should be considered relative to the desired attributes of its portion of the portfolio, rather than the investor’s overall attributes. These products are indicated with Y (yes) in the “Diversified portfolio comment” column.

There is some inconsistency around the product use, timeframe and risk profile sections: funds with similar risk profiles from different providers have different ratings. This is to be expected given the subjectivity of the categories and ratings, but worth noting if you are discussing TMDs with your compliance or risk team.

For our Separately Managed Accounts, the product issuer will provide a TMD for the product as a whole. (At time of writing the Macquarie Wrap SMA TMD is here, and the Colonial Managed accounts TMD is here.) Usually these cover multiple portfolios within the one SMA product, so the TMDs are very broad.

Although our portfolios are not technically financial products in their own right, we have produced documents summarising the target market determinations as they would be written if the portfolios were standalone products. They are available from the downloads section of the Aequitas website.

Finally, we remind advisers that personal advice is excluded from the distribution obligations relating to TMDs under the corporations act because personal advice already considers the suitability of a product for an investor. See RG 274 for more details.

Important Information: This document has been prepared by Aequitas Investment Partners ABN 92 644 165 266 (“Aequitas”, “our”, “we”), a Corporate Authorised Representative (no. 1284389) of C2 Financial Services, (Australian Financial Services Licensee no. 502171), and is for distribution within Australia to wholesale clients and financial advisers only.

This document is based on information available at the time of publishing, information which we believe is correct and any opinions, conclusions or forecasts are reasonably held or made as at the time of its compilation, but no warranty is made as to its accuracy, reliability or completeness. To the extent permitted by law, neither Aequitas nor any of its affiliates accept liability to any person for loss or damage arising from the use of the information herein.

Please note that past performance is not a reliable indicator of future performance.

General Advice Warning: This document has been prepared without taking into account your objectives, financial situation or needs, and therefore you should consider its appropriateness, having regard to your objectives, financial situation and needs. Before making any decision about whether to acquire a financial product, you should obtain and read the relevant Product Disclosure Statement (PDS) or Investor Directed Portfolio Service Guide (IDPS Guide) and consider talking to a financial adviser.

Taxation warning: Any taxation considerations are general and based on present taxation laws and may be subject to change. Aequitas is not a registered tax (financial) adviser under the Tax Agent Services Act 2009 and investors should seek tax advice from a registered tax agent or a registered tax (financial) adviser if they intend to rely on this information to satisfy the liabilities or obligations or claim entitlements that arise, or could arise, under a taxation law.

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