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Some risks associated with investing

Some risks when investing in international shares can be:

• Foreign currency risk as international security and currency exchanges can be relatively volatile;
• An international custodian may be subject to risk arising from change to the political, legal, regulatory or commercial environment of that country;
• Political and regulatory risk may affect your ability to buy and sell securities in a foreign market.

Other product offerings resulting in an ongoing fee

International Markets Fees and Charges

A. Trading in international securities

Our primary source of income from the AUSIEX International Markets service is from the brokerage paid on transactions made through your Australian Financial Service Licensee (Adviser) and other Companies when using our services. These can generally range from 0.08% to 0.55% depending on the exchange where the relevant security is traded, subject to a minimum charge of US$15. Remaining charges over and above our minimum brokerage will be paid to your Adviser and attributed to any additional advice fees and/or service fees charged to you by your Adviser (where applicable). Refer to your Adviser for further details.

Unless otherwise indicated, where a fee or charge is expressed as a percentage, it refers to a percentage of the transaction value.

Note that brokerage, exchange fees, and foreign taxes may be charged to you in foreign currencies. Levied amounts may be charged to you in the foreign currency or converted to Australian Dollars at the applicable market rate.

Where an order for an International Security remains partially filled for more than one trading day, you will be charged at least the minimum fee(s) for each day a transaction is executed in respect of that order until the order is completely filled.

B. Market fees

There may be additional charges depending on the exchange being traded on and the type of investment. These are in addition to the brokerage charge and are passed on at cost.

Please note these fees may change. For an up-to-date schedule of fees visit www.international.ausiex.com.au. May be subject to additional local exchange fees.

C. Exchange rate conversion:

In respect of any foreign exchange conversion AUSIEX undertakes on your behalf, AUSIEX may charge you a spread 0.60% calculated on the transaction value.

D. International Markets miscellaneous fees and charges

E. Example of a sell trade in US Market

You wish to sell 200 units of Stock A at a price of US$100 per unit. The applicable brokerage on your account is 0.08% of the transaction value, subject to a minimum of US$15. Therefore, the brokerage on this trade would be US$16 (being 0.08% of US$20,000)

Assume, for example, $1 Australian is buying 65 US cents. Exchange rates are subject to market conditions and may change at any time.

The sell trade is executed for 200 shares x US$100, being US$20,000 is equal to AU$30,769.23 (US$20,000/AU$0.65).

Brokerage charged is 0.08% of US$20,000, being US$16, equivalent to AU$24.62.

If your account is established as an AUD account, proceeds from sell trades will be automatically converted to Australian Dollars and you are charged a Currency Conversion fee of 0.60%, equal to US$120 or AU$184.62.

As this was a sell trade in a US market the SEC Clearing Fee, which is a regulatory fee, is applicable and included in the trade automatically. The current charge is the equivalent of US$8 per million dollars, or 0.0013%.

Note the above example is for illustrative purposes only as fees and exchange rates may vary.

F. Example of a buy trade in US Market

You wish to buy 200 units of Stock B at a price of US$100 per unit. The applicable brokerage on your account is 0.08% of the transaction value, with a minimum of US$15, therefore US16 is the applicable brokerage on this transaction (being 0.08% of US20,000).

Assume, for example, $1 Australian is buying 65 US cents.

The buy trade is executed for 200 shares x US$100, being US$20,000 equal to AU$30,769.23.

If your account is established as an AUD account, payment for buy trades are automatically converted from Australian Dollars at the time of execution and you are charged a Currency Conversion fee of 0.60%, equal to US$120 or $184.62 in Australian Dollars.

Brokerage charged is 0.08% of US$20,000, being $US$16, equivalent to AU$24.62.

Note the above example is for illustrative purposes only as fees and exchange rates may vary.