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					                                         Challenger Howard Mortgage Fund
Challenger Howard Mortgage Fund




Product Disclosure Statement (PDS)
Dated 28 February 2011
Challenger Howard Mortgage Fund
(ARSN 090 464 074)
Responsible Entity
Challenger Managed Investments Limited
(ABN 94 002 835 592)
(AFSL 234668)
About this Product Disclosure Statement (PDS)
This document provides information to help investors and their advisers assess the merits of investing in the Challenger Howard
Mortgage Fund (ARSN 090 464 074) (the Fund) and to compare this Fund with other investment opportunities on offer. We strongly
encourage you to read this document in full before making an investment decision.
In preparing this PDS we did not take into account your particular investment objectives, financial situation or needs. As investors’
needs and aspirations differ, you should consider whether investing in the Fund is appropriate for you in light of your particular
needs, objectives and financial circumstances. You may also wish to obtain independent advice, particularly about such individual
matters as taxation, retirement planning and investment risk tolerance.
Additional information about the Fund is incorporated into this PDS and the Benchmark Report and is provided separately at
www.challenger.com.au/mf/ChallengerHMF.asp. The PDS may refer you to particular sections of the Benchmark Report and other
information incorporated by reference for further information associated with this Fund. We recommend that you also obtain and
read the Benchmark Report and other incorporated information before making an investment decision. The Benchmark Report is
publicly available on our website at www.challenger.com.au/funds/PDS/MortgageFunds_ASICBenchmark.pdf and may be
obtained free of charge on request. For more information on incorporated documents refer to page 5 of the PDS.
Updated information
The information in this PDS is up-to-date at the time of preparation. However, some information and terms (see below) 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 Fund (such as performance), please consult your financial adviser, visit our website
www.challenger.com.au or call our Investor Services team on 13 35 66. We will also send you a copy of any incorporated
information and updated information free of charge upon request.
Important notices
This PDS relating to the Fund is dated 28 February 2011 and is issued by Challenger Managed Investments Limited
(ABN 94 002 835 592) (AFSL 234668) (Challenger, CMIL, we, us, our, the manager or the responsible entity).
The Fund is managed by Challenger. Challenger is the responsible entity of the Fund and issuer of this PDS. Challenger’s ultimate
parent is Challenger Limited (ABN 85 106 842 371).
Challenger has appointed Challenger Commercial Lending Limited (ABN 65 000 033 143) (CCL or the mortgage manager) as the
mortgage manager of the Fund.
Neither Challenger nor any other member of Challenger Limited guarantees the repayment of your capital or the performance of
your investment or any particular taxation consequences of investing.
By investing in the Fund you confirm you have received a copy of the current PDS to which this investment relates, that you have
read it and agree to the terms contained in it, and that you agree to be bound by the terms of the relevant current PDS and current
constitution (each as amended from time to time).
The offer or invitation to subscribe for units in the Fund 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. Challenger reserves the right to change these
terms and conditions with, in the case of an increase in fees, 30 days’ notice, otherwise notice will generally be provided before or
as soon as practicable after the change occurs. We reserve the right to withdraw the offer or invitation to subscribe for units and
withdraw this PDS.
All fees and costs quoted in this PDS, unless otherwise stated, are quoted inclusive of any Goods and Services Tax (GST) and net of
reduced input tax credits equal to 75% of the GST in the price, which if available, effectively reduces the non-recoverable GST cost
incurred on acquisitions from 10% to 2.5%.
Consents
Challenger Commercial Lending Limited (CCL) has given its consent to statements about it in the form and context in which they are
included, and has not withdrawn its consent before the date of this PDS. CCL was not involved in the preparation and distribution of
this PDS and is not responsible for the issue of this PDS, nor is it responsible for any particular part of this PDS, other than those parts
that refer to it.
Challenger Management Services Limited (CMSL) has given its consent to statements about it in the form and context in which
they are included, and has not withdrawn its consent before the date of this PDS. CMSL was not involved in the preparation and
distribution of this PDS and is not responsible for the issue of this PDS, nor is it responsible for any particular part of this PDS, other
than those parts that refer to it.
Table of contents
About Challenger Limited                                         2

Features at a glance                                             3

About the Fund                                                   4

About the risks                                                  7

Fees and other costs                                             8

Making, withdrawing and monitoring your investment              12

Additional information                                          16

Application form checklist                                      18

Application forms                                               23




Contact details
Website                www.challenger.com.au
By email               info@challenger.com.au
By telephone           Investor Services team 13 35 66
                       Adviser Services team 1800 621 009
By mail                Challenger Managed Investments Limited
                       Reply Paid 3698
                       Sydney NSW 2001
By fax                 02 9994 7777
About Challenger Limited




                                    Challenger Limited is an ASX-listed investment management firm established
                                    in 1985. Challenger Limited is a leading provider of annuities in Australia and
                                    offers a range of listed and unlisted financial products and services across other
                                    asset classes.
                                    Challenger Limited offers significant depth and breadth of investment
                                    expertise, with an established team of in-house investment professionals as
                                    well as relationships with quality investment partners. This means that it can
                                    offer a range of products to help meet your investment needs, across not only
                                    a variety of asset classes, but also across different investment styles.
                                    To find out more about how Challenger can help you, please talk to your
                                    financial adviser.




2 Challenger Howard Mortgage Fund
Features at a glance
                                                                                                                                        See section
Minimum transaction and
balance requirements1                                                                                                                    ‘Making,
Initial investment                         $1,000                                                                                    withdrawing and
Additional investment                      $250                                                                                      monitoring your
Regular Savings Plan                       $100 per month (with an initial investment of $1,000)                                      investment’ on
Minimum withdrawal                         $500 (minimum balance must be maintained)                                                 pages 12 to 15.
Minimum balance                            $1,000
Fees and other costs2
Contribution fee                    Nil
Withdrawal fee                      For funds withdrawn:
                                    •  1-270 days – 1.00% on amount withdrawn
                                    •  after 270 days – nil                                                                              ‘Fees and
                                                                                                                                        other costs’
Management fee                      1.40% p.a. of the Fund’s net asset value.                                                           on pages 8
Operating expenses                  We currently pay normal operating expenses of the Fund from our                                        to 11.
                                    management fee and do not recover these from the Fund. We may,
                                    however, recover any abnormal expenses from the Fund, such as the costs
                                    of unitholder meetings.
Transaction costs (buy/sell spread) Nil
Risks of investing in the Fund A degree of risk applies to all types of investments, including investments in                         ‘About the risks’
                                    the Fund. The significant risks are described on page 7.                                            on page 7.
ASIC Benchmarks                     ASIC has developed eight benchmarks for mortgage funds that are aimed
                                                                                                                                        ‘About the
                                    at assisting investors understand the risks of investing and whether such
                                                                                                                                      Fund’ on page
                                    investments are suitable for them. The benchmarks deal with the Fund’s
                                                                                                                                       6 of the PDS.
                                    liquidity, borrowings, portfolio diversification, related party transactions,
                                                                                                                                       Also refer to
                                    valuation policy, lending principles, distribution practices and withdrawal
                                                                                                                                      the Benchmark
                                    arrangements. For more information on these benchmarks, please refer
                                                                                                                                          Report.
                                    to page 6.
Making and withdrawing
your investment
Applications                        Valid application requests with payment must be received prior to 3.00pm
                                    (Sydney time) to be processed that day.                                                              ‘Making,
Withdrawals                         Investors may request withdrawals from the Fund under the Ongoing                                withdrawing and
                                    Withdrawal Facility and Periodic Small Balance Withdrawal Facility when                          monitoring your
                                    they are offered.                                                                                 investment’ on
                                                                                                                                     pages 12 to 15.
                                           Subject to certain conditions, under the Ongoing Withdrawal Facility we
                                           intend to make available at least 10% of the Fund’s net assets for investors 
                                           seeking to withdraw, four times per year. Our procedure for processing
                                           withdrawals is outlined on pages 12 to 15.
Distribution payments                                                                                                                    ‘Additional
Frequency                                  Monthly, however, there may be periods in which no distributions are made.                   information’
Payment methods                            Reinvested into the Fund as additional units or paid to your nominated account.              on page 16.
Valuations and pricing                                                                                                                   ‘Additional
Valuing the Fund’s assets                  The Fund’s assets are usually valued each NSW business day.                                  information’
Unit pricing                               $1.00 (refer to the Benchmark Report).                                                       on page 16.
Investor reporting                                                                                                                       ‘Making,
Transaction confirmations                  We generally send transaction confirmations for investments and withdrawals.                withdrawing
Regular reporting                          We send quarterly periodic statements as at 31 March, 30 June,                             and monitoring
                                           30 September and 31 December.                                                             your investment’
                                                                                                                                         on pages
Annual tax reporting                       We send consolidated annual tax statements.
                                                                                                                                        12 to 15.
1
    We may, at our discretion, accept a lower investment amount, additional investment amount and minimum balance.
2
    For certain wholesale clients (as defined in the Corporations Act 2001) we may, at our discretion, negotiate, rebate or waive all or part of our fees.


                                                                                                                      Challenger Howard Mortgage Fund 3
About the Fund
Fund profile

Investment manager                  Challenger
Mortgage manager                    Challenger Commercial Lending Limited
Investment objective                The Fund aims to provide investors with a diversified income producing portfolio that
                                    aims to provide regular income and capital stability.
Investment strategy                 Challenger’s mortgage lending team employs a conservative approach to
                                    managing the mortgage investments of the Fund. The Fund has a lending policy
                                    which sets out the criteria under which loans are made or acquired. Please refer
                                    to ‘The Fund’s lending policy’ in the Benchmark Report for further information.
                                    The Benchmark Report is available on our website at www.challenger.com.au/funds/
                                    PDS/MortgageFunds_ASICBenchmark.pdf. We adopt an active approach to managing
                                    investments in interest bearing securities.
Investment universe                 The Fund will be invested in a diversified portfolio of primarily commercial mortgage
                                    loans and interest bearing securities. The Fund may also invest in cash and other short
                                    term investments.
                                    The exposure to mortgages within each state is generally limited to capital cities, major
                                    regional centres (such as Wollongong, Central Coast, Mornington Peninsula, Geelong,
                                    Gold Coast and Sunshine Coast) and non-major regional centres (such as eastern
                                    seaboard, outer metropolitan areas and regional centres).
                                    The types of securities the Fund can invest in are mortgage-backed securities, fixed
                                    interest (e.g. corporate and government bonds) and hybrid securities (e.g. reset securities,
                                    convertible notes, redeemable preference shares and partly paid shares).
                                    We may use derivatives (e.g. options and futures) as a means to manage actual and
                                    anticipated credit and interest rate risk. We do not use derivatives for speculative
                                    purposes.
                                    Please also refer to the Benchmark Report at www.challenger.com.au/funds/PDS/
                                    MortgageFunds_ASICBenchmark.pdf for additional information on the diversification
                                    of the Fund.
Portfolio construction              The final portfolio reflects the outcome of our conservative approach to mortgage
                                    lending and active approach to managing the interest bearing and other short-term
                                    securities portion of the portfolio.
Currency management                 Not applicable




4 Challenger Howard Mortgage Fund
Additional information about                                Incorporated information
the Fund                                                    Additional information is provided separately to this
Senior management of the Fund                               PDS and is taken to be incorporated into the PDS. The
                                                            incorporated information is available on our website at
The senior management of the Fund have extensive
                                                            www.challenger.com.au/funds/PDS/HMF_IBR.pdf.
experience in financial services, specifically in lending
                                                            A paper copy of any incorporated information will be
accountabilities and mortgage fund management.
                                                            given to you, without charge, on request.
For details on the key individuals responsible for the
management of the Fund, please refer to the Benchmark       All incorporated information should be read
Report at www.challenger.com.au/funds/PDS/                  in conjunction with the PDS before making an
MortgageFunds_ASICBenchmark.pdf.                            investment decision.

Borrowings                                                  Up-to-date information about
The Fund’s constitution allows for borrowing. For more
                                                            the Fund
information, refer to the Benchmark Report at               You can obtain up-to-date Fund performance, actual asset
www.challenger.com.au/funds/PDS/MortgageFunds_              allocation ranges and Fund size information by contacting
ASICBenchmark.pdf.                                          your financial adviser, visiting www.challenger.com.au/
                                                            mf/ChallengerHMF.asp or calling us. A paper copy of
Derivatives                                                 any updated information will be given to you, without
While the Fund’s constitution permits the use of            charge, on request.
derivatives, we or the mortgage manager do not intend
                                                            Changes to investment policy
to gear the Fund through the use of derivatives. Please
refer to the Benchmark Report at www.challenger.com.        The Fund’s constitution permits a wide range of
au/funds/PDS/MortgageFunds_ASICBenchmark.pdf                investments and gives us as responsible entity broad
and incorporated information at www.challenger.com.         investment powers. We may change the mortgage
au/funds/PDS/HMF_IBR.pdf for more information on the        manager and/or vary the investment objectives, strategies,
use of derivatives.                                         benchmarks, asset allocation ranges and processes of the
                                                            Fund set out in this PDS or in the Benchmark Report and
Labour standards or environmental, social                   incorporated information. We will give unitholders written
or ethical considerations                                   notice of any material variation we believe they would not
Neither we nor the mortgage manager generally take          have reasonably expected.
into account labour standards or environmental, social or   Continuous disclosure
ethical considerations when buying, retaining or selling
underlying investments. For further information refer       Challenger, as responsible entity of the Fund, is subject to
to ‘Labour standards or environmental, social or ethical    continuous disclosure obligations that require us to make
considerations’ at www.challenger.com.au/funds/PDS/         material information available to investors. You can obtain
HMF_IBR.pdf.                                                a copy of the Fund’s continuous disclosure information
                                                            by visiting www.challenger.com.au/mf/ChallengerHMF.
                                                            asp. A paper copy of any updated information will also be
                                                            given to you, without charge, on request.




                                                                                          Challenger Howard Mortgage Fund 5
                                        About the Fund


ASIC Benchmarks
The ASIC Benchmarks are aimed at assisting investors understand the risks of investing in mortgage funds and whether
such investments are suitable for them. A brief explanation of each benchmark is detailed below.
For the Fund-specific information relating to each benchmark, including the extent to which the Fund meets
each benchmark, please refer to the Benchmark Report on our website at www.challenger.com.au/funds/PDS/
MortgageFunds_ASICBenchmark.pdf. The information in the Benchmark Report is updated periodically (usually
quarterly) and will be available on our website. A paper copy of any updated information will be given to you, without
charge, on request.

ASIC Benchmark                          Description
ASIC Benchmark 1: Liquidity             This benchmark addresses a mortgage fund’s liquidity; i.e. the ability to
                                        meet withdrawal requests. Liquidity of a mortgage fund may be a risk as the
                                        underlying assets of such a fund may not be easily realised within the required
                                        period of time and there can be a mismatch between such a fund’s cash flows
                                        and the amount and size of withdrawal requests received from investors.
ASIC Benchmark 2: Scheme                This benchmark addresses a mortgage fund’s policy on borrowings, including
borrowing                               details of any borrowing facilities in place and for what purposes any
                                        borrowings would be used. Mortgage funds with high levels of borrowing
                                        face the risk that distributions will not be paid or withdrawals may be
                                        suspended so the fund can pay back the borrowings. Generally, any amounts
                                        owing to lenders will rank ahead of investors’ interests.
ASIC Benchmark 3: Portfolio             This benchmark addresses the criteria used by a mortgage fund when
diversification                         determining what loans to make and provides information on the Fund’s
                                        assets and lending policy.
ASIC Benchmark 4: Related party         This benchmark addresses any related party transactions in place and outlines
transactions                            any risks associated with these transactions.
ASIC Benchmark 5: Valuation             This benchmark addresses the standards and principles applied by a mortgage
policy                                  fund when valuing the property underlying a loan. It is important to ensure
                                        investors have confidence that the valuation process is transparent and
                                        valuations obtained are prepared or conducted by a qualified and experienced
                                        valuer.
ASIC Benchmark 6: Lending               This benchmark indicates how conservative or aggressive the lending practices
principles – Loan-to-valuation          of a mortgage fund are. Generally, more aggressive lending practices have
ratios                                  a higher loan-to-valuation ratio which may lead to a mortgage fund being
                                        unable to recover its funds in full if there is an adverse change in market
                                        conditions.
ASIC Benchmark 7: Distribution          This benchmark addresses how distributions are paid and from what source.
practices                               Where distributions are not sourced solely from income of the mortgage
                                        fund, there is a risk that these distribution practices may not be sustainable
                                        over the long term.
ASIC Benchmark 8: Withdrawal            This benchmark outlines a mortgage fund’s procedures for meeting
arrangements                            withdrawal requests and the timeframe over which a fund will seek to meet
                                        withdrawal requests. This benchmark is important as it highlights to investors
                                        there may be limits around accessing their investment or they may have to
                                        wait a significant period of time before their money is paid to them.


6 Challenger Howard Mortgage Fund
About the risks

What are the risks of investing?                              •	 Documentation	risk
                                                                Risk that a deficiency in documentation which has not
Risk can mean different things to different people. It can
                                                                been corrected in accordance with legal requirements
mean the risk that your investment goals may not be met,
                                                                could adversely affect the return on your investment.
that your investment may fail to achieve the returns that
you expect and/or may suffer substantial declines in value.   •	 Fund	risk
Risk is also often defined as investment volatility. This       The risk that changes to the Fund, such as changes
refers to the extent to which an investment varies in value     to fees or termination of the Fund can affect your
over a given period. Often investments offering higher          potential investment return.
levels of return also exhibit higher levels of short-term     •	 Interest	rate	risk
volatility.
                                                                The risk that changes in interest rates may have an
A degree of risk applies to all types of investments,           adverse impact on the capital value or income of a
including investments in the Fund. Diversifying your            security.
investments across different asset classes can help reduce
                                                              •	 Investment	manager	risk
volatility and ensuring you select an investment that
                                                                The risk that the investment style, investment decisions
matches your investment timeframe can also help you
                                                                or changes in personnel of the investment manager
manage risk.
                                                                could impact the investment returns of the Fund.
Before investing it is important to consider such things
                                                              •	 Liquidity	risk
as the risks involved in investing in the Fund, how these
risks compare with risks of other investments, how              The risk that the Fund’s investments may become
comfortable you are in exposing your investment to risk,        illiquid, or the Fund itself becomes illiquid.
and the extent to which the Fund fits into your overall       •	 Market	risk
financial plan.
                                                                The risk that changes in markets can negatively affect
Significant investment risks                                    the investment return of particular assets.

Brief descriptions of the significant risks associated with   •	 Mortgage	fund	risk
investing in the Fund are listed below. A more detailed         Risks specific to mortgage funds which could result in a
explanation of each risk is available under ‘Significant        decline in the value of your investment.
investment risks’ at www.challenger.com.au/funds/PDS/         •	 Regulatory	risk
HMF_IBR.pdf.
                                                                The risk that changes in government policies,
•	 Credit	risk                                                  regulations and laws may affect the value or tax
  Involves the risk that a borrower may default on their        treatment of your investment in the Fund or its assets
  obligations under the mortgage contract, for example,         or trading strategy.
  not making the required loan payments.                      •	 Withdrawal	risk
•	 Derivative	risk                                              As the Fund’s assets may be illiquid at times, there is
  While the use of derivatives can offer the opportunity        a risk that we may not offer the Ongoing Withdrawal
  for higher returns, they can also magnify losses to the       Facility or Periodic Small Balance Withdrawal Facility or
  Fund.                                                         may not meet the generally applicable timeframe for
                                                                withdrawal requests, may suspend withdrawals or may
                                                                deem the Fund illiquid.

                                                                                           Challenger Howard Mortgage Fund 7
Fees and other costs
Consumer advisory warning
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 adviser.

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 ( ) has a managed investment fee calculator to help you check
out different fee options.

This table shows fees and other costs that you may be charged in the Fund. These fees and costs may be deducted
from your money, from the returns on your investment or from the Fund assets as a whole.
Taxes are set out under ‘Taxation considerations’ at www.challenger.com.au/funds/PDS/HMF_IBR.pdf.
You should read all the information about fees and costs because it is important to understand their impact on your
investment.

Type of fee or cost                                                               Amount              How and when paid
Fees when your money moves in or out of the Fund
Establishment fee: The fee to open your investment                                Nil                 Not applicable
Contribution fee: The fee on each amount contributed                              Nil                 Not applicable
to your investment
Withdrawal fee: The fee on each amount you take                                                       The withdrawal fee treats units on
out of your investment. For funds redeemed:                                                           a first-in first-out basis. The fee is
                                       •  1–270 days                              1.00%               deducted from the amount withdrawn.
                                       •  after 270 days                          Nil
Termination fee: The fee to close your investment                                 Nil                 Not applicable
Management costs            1


Management costs: The fees and costs for managing                                                     Management costs include the
your investment                                                                                       management fee expressed as a
                                                                                                      percentage of the net assets of the
                                                                                                      Fund. This amount does not include any
                                                                                                      abnormal expenses.
• Management fee                                                                  1.40% p.a.          The management fee is deducted
                                                                                                      from the Fund’s income, accrued daily
                                                                                                      and is paid monthly in arrears.
                                                                                                      Refer to ‘Management costs’ on page 9
                                                                                                      for more information.
Service fees
Investment switching fee: The fee for changing                                    Nil                 Not applicable
investment options
1
    For certain wholesale clients (as defined in the Corporations Act 2001) we may, at our discretion, negotiate, rebate or waive all or part of our fees.
    Please see ‘Can fees be different for different investors?’ on page 10 for more information.
8 Challenger Howard Mortgage Fund
Additional explanation of fees and costs Withdrawal fees
Management costs                                             If you withdraw funds that have been invested for less
                                                             than 271 days, we will charge you a withdrawal fee.
Management costs comprise the additional fees or costs
                                                             This fee is payable to us.
that an investor incurs by investing in the Fund rather
than investing directly in the underlying assets.            Withdrawal made
                                                             within number of days               Withdrawal fee
Management costs include the management fee, normal
operating expenses, abnormal expenses and investment         1 – 270 days                        1.00%
expenses. They do not include transaction costs or           After 270 days                      Nil
other costs that an investor would ordinarily incur when
investing directly in the underlying assets.                 Transaction costs – buy/sell spread
Management costs are payable from the Fund’s assets and      Currently, the buy/sell spread is nil. A different buy/sell
are not paid directly from your account.                     spread may apply if we change our estimate. We will
The management costs for the Fund are based on current       notify unitholders if the buy/sell spread increases.
financial information. For details of the maximum fees
                                                             The buy/sell spread in the Fund is stated as a percentage
permitted under the Fund’s constitution, please see
                                                             of the net asset value of the Fund and is the difference
‘Can fees change?’ on pages 10 and 11.
                                                             between the investment price and the withdrawal price
Management fee                                               of units. If reflects our estimate of the transaction costs
This is the fee charged for managing the investments,        expected to be incurred in buying and selling the Fund’s
overseeing the Fund’s operations and providing access        assets as a result of investments and withdrawals made
to the Fund.                                                 by investors.

The current management fee of the Fund is 1.40% p.a.         Types of transaction costs can include brokerage, stamp
                                                             duty and other government taxes or charges. The purpose
Normal operating expenses
                                                             of the buy/sell spread is to ensure that only those investors
We currently pay the normal operating expenses of the        transacting in the Fund’s units at a particular time bear
Fund from our management fee and will not recover these      the Fund’s costs of buying and selling the Fund’s assets as
from the Fund without giving at least 30 days’ notice.       a consequence of their transaction.
Expenses relating to investing directly in underlying
                                                             Our estimate of transaction costs may take into account
assets may be paid from the Fund. For example, costs of
                                                             factors such as (but not limited to) historical transaction
borrowing and the amount payable to brokers that
                                                             costs and anticipated levels of investments and
originate loans.
                                                             withdrawals. It is expected that brokerage will make up
Abnormal expenses                                            the vast majority of transaction costs.
We may recover abnormal expenses (such as costs of           Please note that while the buy/sell spread is an additional
unitholder meetings, changes to the Fund’s constitution      cost to you, it is not a fee paid to us. It is paid to the Fund
and defending or pursuing legal proceedings) from the        and is reflected in the unit price.
Fund. The management costs set out in the table on
page 8 do not include any abnormal expenses. Whilst it is    Investing in other Challenger funds
not possible to estimate such expenses with certainty, we
                                                             The Fund may gain investment exposure through other
anticipate that the events that give rise to such expenses
                                                             unlisted funds operated by Challenger. Where the
will not occur regularly. In circumstances where such
                                                             Fund invests in an unlisted fund operated by us, full
events do occur, we may decide not to recover these
                                                             management fees are not received by us from both funds.
abnormal expenses from the Fund.
                                                             Instead, adjustments will be made so that our management
Investment expenses                                          fee will be no greater than the management fee set out on
We pay the standard investment management costs of           page 8.
the Fund from our management fee.

                                                                                             Challenger Howard Mortgage Fund 9
Can fees be different for different investors?                Adviser remuneration
Yes, we may negotiate, rebate or waive fees for wholesale     Direct remuneration
clients (as defined by the Corporations Act 2001). We do      We may pay authorised intermediaries (i.e. your financial
not negotiate fees with retail investors.                     adviser) commission. We pay these commissions from our
                                                              own resources and at our sole discretion.
Borrowing costs
Borrowing costs are the costs associated with borrowing       The commission payment options that your financial
money or securities.                                          adviser can nominate are as follows. Your financial adviser
                                                              cannot change between commission options.
Where the Fund has a borrowing facility, loan facility
                                                                             Upfront                 Trail
establishment fees may be paid to obtain the borrowing
                                                                             commission              commission
facility and an ongoing annual commitment fee to
maintain that facility is also payable. Interest at the       Option A       0.33% (incl GST)        0.33% p.a. (incl GST)
rate agreed with the lender is payable on any amounts         Option B       1.10% (incl GST)        Nil
borrowed. These costs will be indirectly borne by
unitholders in the Fund and paid in addition to the Fund’s    Your financial adviser may rebate some or all of their
management costs set out on page 8. Please refer to the       upfront commission to you (not including the GST
Benchmark Report at www.challenger.com.au/funds/              component), by indicating their intention to do so on the
PDS/MortgageFunds_ASICBenchmark.pdf for more                  application form. Any rebated upfront commission will be
information on any current borrowing facility.                used to buy extra units in the Fund on your behalf.

Government charges and GST                                    We reserve the right to introduce new commission
                                                              payment structures and to adjust commission payments
Government taxes such as stamp duty and GST may
                                                              or rebated commission amounts where we believe that
be applied as appropriate. Please refer to ‘Taxation
                                                              inappropriate client account structuring or investment,
considerations’ on page 16.
                                                              redemption and reinvestment activity is taking place.
Other fees and expenses                                       Indirect (or alternative form) remuneration
There is currently in place an arrangement with               We may pay fees or provide other financial assistance
Challenger Commercial Lending Limited (a related body         (for seminars, client mailings, co-operative advertising,
corporate) whereby Challenger Commercial Lending              postage, etc) to other financial services intermediaries.
Limited administers and manages loans and mortgage            These may be a fixed dollar amount or a percentage
investments made by the Fund.                                 of the funds invested. If we do, we will make these
Challenger Commercial Lending Limited charges us a            payments from our own resources so that they are not
management fee (which is paid by us and not by investors      an additional cost to the Fund or its investors. It is not
or the Fund) for providing this service and may also          possible to provide an estimate of the amount of these
charge borrowers a fee for establishing and administering     payments.
their loans.                                                  We maintain a register (in compliance with the IFSA/
Mortgages may also be originated by related parties,          FPA Industry Code of Practice on Alternative Forms
including Challenger Commercial Lending Limited, Challenger   of Remuneration) summarising alternative forms of
Management Services Limited and non-related parties.          remuneration that are paid or provided to certain financial
A market based commission or an upfront amount                advisers. If you would like to review this register in soft or
in respect of such origination is typically either paid       hard copy please contact us.
out of the interest paid on the applicable loan or is
paid separately by the borrower. Where the cost of a
                                                              Can fees change?
commission or fee is not paid by the borrower, it is a cost   All fees can change. Reasons for this might include
associated with investing in mortgages and is indirectly      changing economic conditions and changes in regulation.
borne by unitholders in the Fund and is paid in addition to   We will give you 30 days’ written notice of any proposed
the Fund’s management costs set out on page 8.
10 Challenger Howard Mortgage Fund
                                                                                     Fees and other costs


increase. We cannot charge more than the Fund’s
constitution allows. If we wished to raise fees above the
amounts allowed for in the Fund’s constitution, we would
need the approval of unitholders.
The current fees charged are set out on page 8. Under the
Fund’s constitution we are presently entitled to charge the
following maximum fees (GST can be added to all fees if
applicable).
Fee                          Maximum amount
Management fee               U
                               p to 1.40% p.a. of the gross 
                             asset value.
Withdrawal fee               U
                               p to 1.00% of the withdrawal 
                             amount, for investments
                             withdrawn within 12 months.


Example of annual fees and costs for the Fund
This table gives an example of how fees and costs in the Fund can affect your investment over a one-year period. You
should use this table to compare this product with other managed investment products. Please note that this is just an
example. In practice, the actual investment balance of an investment will vary daily and the actual fees and expenses
we charge are based on the value of the Fund, which also fluctuates daily.
                                                           Balance of $50,000 with a contribution of $5,000
Type of fee or cost                          Amount        during year
Contribution fees                              0.00%       For every $5,000 you put in, you will be charged $0.
Plus Management costs
        • Management fee                       1.40%       And, for every $50,000 you have in the Fund you will be
                                                           charged $700 each year.
Equals Cost of the Fund                                    If you had an investment of $50,000 at the beginning of the
                                                           year and you put in an additional $5,000 during that year,
                                                           you would be charged fees from:
                                                                                   $700 to $770
                                                           What it costs you will also depend on the fees you
                                                           negotiate with your financial adviser.


Example of withdrawal fees for the Fund
The following table gives an example of how withdrawal fees can affect your investment. You should use this table
to compare this product with other managed investment products that have withdrawal fees.
                                             Amount        Withdrawal of $50,000
Withdrawal within 270 days           1.00% x amount        For every $50,000 withdrawn within 270 days of making the
                                          withdrawn        investment, you would pay $500 in withdrawal fees.
Withdrawal after 270 days                          Nil     For every $50,000 withdrawn after 270 days of making the
                                                           investment, you would pay $0 in withdrawal fees.

                                                                                            Challenger Howard Mortgage Fund 11
Making, withdrawing and monitoring
your investment
                    Minimum                                                                                     For more
                    amounts            How to lodge your request                                              information
 Initial            $1,000             •  completed and signed application form from a current PDS;              ‘Additional
 investment                            •  cheque made payable to ‘CMIL Application Account <insert              information
                                          name of investor(s)>’;                                             about making an
                                                                                                              investment’ on
                                       •  required customer identity verification documents (refer to 
                                                                                                                  page 13.
                                          www.challenger.com.au/funds/PDS/HMF_IBR.pdf or call
                                          13 35 66).                                                            ‘Customer
                                                                                                              Identification
                                                                                                               Program’ on
                                                                                                                 page 13.
 One-off            $250               •  completed and signed application form from a current PDS;              ‘Additional
 additional                            •  cheque made payable to ‘CMIL Application Account <insert              information
 investments                              name of investor(s)>’.                                             about making an
                                                                                                              investment’ on
                                                                                                                  page 13.
 Regular            $100/month         •  complete the relevant sections of the application form at the         ‘Regular
 Savings Plan       (with an initial      back of this PDS;                                                   Savings Plan’
                    investment of                                                                             on page 13.
                                       •  your nominated account will be debited on or around the next 
                    $1,000).              business day after the 14th day of each month for the specified
                                          amount. Your application to start a Regular Savings Plan must
                                          be received at least three business days before the 14th day of
                                          the month in which you wish your instructions to take effect.
 Withdrawals        Any amount         Investors may request withdrawals from the Fund under                    ‘Additional
                                       the Ongoing Withdrawal Facility and Periodic Small Balance              information
                                       Withdrawal Facility when they are offered.                                  about
                                       Under the Ongoing Withdrawal Facility we intend to make                 withdrawing
                                       available at least 10% of the Fund’s net assets for investors         your investment’
                                       seeking to withdraw, four times per year. Investors will be able to     on pages 13
                                       lodge valid withdrawal requests under the Ongoing Withdrawal               to 15.
                                       Facility on any business day during a relevant quarter by telephone
                                       or fax (refer to ‘Telephone and fax terms and conditions’ at
                                       www.challenger.com.au/funds/PDS/HMF_IBR.pdf) or an                    ‘Telephone and
                                       original written request. All withdrawal requests will be processed    fax terms and
                                       effective the first business day of the following quarter and will     conditions’ on
                                       usually be paid within 10 business days of that date.                     page 15.
                                       Please ensure that the appropriate signatories sign all
                                       written withdrawal instructions, including those forwarded
                                       by fax. A withdrawal request, either in whole or in part, once
                                       received by us may not be withdrawn without our agreement.
                                       Please see ‘Additional information about withdrawing your
                                       investment’ on pages 13 to 15 for more information on
                                       the Periodic Small Balance Withdrawal Facility.

12 Challenger Howard Mortgage Fund
Additional information about making                           Customer Identification Program
an investment                                                 To address money laundering and terrorism risks,
                                                              verification of each investor’s identity is a prerequisite
Initial and additional investments
                                                              for all new investors. We have outlined what is required
All individual or joint investors in the Fund must be at      under our ‘Customer Identification Program’ at
least 18 years of age.                                        www.challenger.com.au/funds/PDS/HMF_IBR.pdf.
After your initial investment, if you wish to make            If we do not receive all valid documents with your
additional contributions to the same investment or all        application form or we are unable to verify your identity
new investments into the Fund, please keep a copy of the      at any time, we may not be able to commence your
current PDS and any information that updates it for future    investment or may not process any future withdrawal
reference.                                                    requests until we receive the required documents.

Regular Savings Plan                                          Additional information about
The Regular Savings Plan enables you to invest in the         withdrawing your investment
Fund monthly via direct debit from a nominated account.
                                                              Periodic Small Balance Withdrawal Facility
For information on the terms and conditions relating to
the Regular Savings Plan refer to ‘Regular Savings Plan’ at   Every year we intend, but are not obliged, to provide
www.challenger.com.au/funds/PDS/HMF_IBR.pdf.                  direct and indirect investors of the Fund who hold (or
                                                              notionally and indirectly hold) an account balance of less
Incomplete or rejected applications                           than a specified amount with an opportunity to withdraw
                                                              their account balance in full. The specified amount will
Under the Fund’s constitution, we can accept or reject
                                                              be based on the level of the Fund’s liquidity and likely
applications into the Fund at any time and are not
                                                              demand, but will not be more than $10,000.
required to give any reason or grounds for such a refusal.
                                                              At the time the Periodic Small Balance Withdrawal Facility
For more information on when and how we might reject
                                                              is made available, we will write to you to explain the
applications refer to ‘Incomplete or rejected applications’
                                                              terms.
at www.challenger.com.au/funds/PDS/HMF_IBR.pdf.
                                                              For further information on these withdrawal facilities,
Restrictions on investments                                   including the potential hardships grounds on which
We can vary the minimum investment amounts and can            investors may apply to withdraw units in the Fund under
change the application transaction cut-off time at any        ASIC relief received by Challenger, refer to ‘Additional
time. For further information on the changes we can           information about withdrawing your investment’ at
make to the terms of investing, including when we may         www.challenger.com.au/funds/PDS/HMF_IBR.pdf
suspend application requests, refer to ‘Restrictions on       and the Benchmark Report at www.challenger.com.au/
investments’ at www.challenger.com.au/funds/PDS/              funds/PDS/MortgageFunds_ASICBenchmark.pdf.
HMF_IBR.pdf.
                                                              How to make a withdrawal
Cooling-off rights                                            For the Ongoing Withdrawal Facility, you may provide
By law, certain investors have a cooling-off right whereby    withdrawal requests by:
they can change their mind about their investment in a        •  Telephone or fax. If you make a withdrawal request by 
Fund and ask for their money back. For information on            telephone or fax we can make the payment either:
cooling-off rights including the terms and conditions,
                                                                 – to your previously nominated account; or
refer to ‘Cooling-off rights’ at www.challenger.com.au/
funds/PDS/HMF_IBR.pdf.                                           – by a cheque in your investment account name that is 
                                                                   posted to the address we have on file.
                                                              Refer to ‘Telephone and fax terms and conditions’ below.


                                                                                           Challenger Howard Mortgage Fund 13
•  Original written request. In addition to the above         If you withdraw funds that have been invested in
   payment methods we can also make payments by               the Fund for less than 271 days you will be charged
   direct credit to accounts that are not already on file     a withdrawal fee (refer to page 9 of the PDS). The
   with us. Withdrawal requests should be posted to           withdrawal price is $1.00 per unit. On a withdrawal
   Challenger, Reply Paid 3698, Sydney NSW 2001 (no           from the Fund, you will receive $1.00 for each unit
   stamp required) or faxed to +61 2 9994 7777.               redeemed adjusted by adding any accrued (but unpaid)
                                                              income entitlement or deducting any accrued income
We will require the following information when you make
                                                              deficiency, and less any applicable withdrawal fee. Refer
a withdrawal request under the Ongoing Withdrawal
                                                              to ‘Processing your withdrawal’ at www.challenger.com.
Facility:
                                                              au/funds/PDS/HMF_IBR.pdf for further information on
•  your account number;                                       how we process withdrawal payments.
•  the full account name;
                                                              Delay of withdrawal payments
•  the dollar amount you wish to withdraw;
                                                              Withdrawals are normally paid within ten business days
•  how and to whom you would like us to make the              of being processed. However we do not guarantee this
   payment; and                                               timeframe and may take significantly longer to pay
•  a daytime telephone number.                                withdrawals.

Please ensure that the appropriate signatories sign           Withdrawals may be delayed by any one or more of
all written withdrawal instructions, including those          the following (and the applicable timeframes may apply
forwarded by fax.                                             cumulatively):

At the time that the Periodic Small Balance Withdrawal        •  under the constitution we have three years to pay 
Facility is made available, we will write to you to explain      withdrawals;
the terms of the facility.                                    •  we can also suspend withdrawals in certain 
If you wish to maximise the amount you will receive under        circumstances for up to 60 days (refer to
any withdrawal facility you should put in a written and          ‘Suspending withdrawal requests’ in the Benchmark
signed request to withdraw your full balance.                    Report at www.challenger.com.au/funds/PDS/
                                                                 MortgageFunds_ASICBenchmark.pdf); and
Processing your withdrawal                                    •  if the Fund becomes ‘illiquid’, we are not required to 
Under the Ongoing Withdrawal Facility, the proportion of         pay withdrawals unless we offer to do so (refer to ‘If
the withdrawal amount requested that is actually received        the Fund becomes illiquid’ at www.challenger.com.
by the withdrawing investor is determined by the level of        au/funds/PDS/HMF_IBR.pdf).
participation by other investors.
                                                              Please refer to the Benchmark Report at
If total withdrawal requests made by investors under the      www.challenger.com.au/funds/PDS/MortgageFunds_
Ongoing Withdrawal Facility do not exceed the amount          ASICBenchmark.pdf for further information regarding
available, then you will receive the full amount you          withdrawals.
requested.
                                                              Transaction cut-off times
If total withdrawal requests made by investors under
the Ongoing Withdrawal Facility do exceed the amount          Generally, if your valid application request is received
available, then withdrawal requests will be satisfied on      in our Sydney office before 3.00pm (Sydney time) on a
a pro rata basis. For further information on the Ongoing      New South Wales business day (the transaction cut-off
Withdrawal Facility refer to ‘Processing your withdrawal’     time), it will usually be processed using the unit price
at www.challenger.com.au/funds/PDS/HMF_IBR.pdf.               determined as at the close of business on that day.




14 Challenger Howard Mortgage Fund
                       Making, withdrawing and monitoring your investment


If a valid application request with payment is received       Telephone and fax terms and
after the transaction cut-off time, or on a non-business
day, it will usually be processed using the applicable unit
                                                              conditions
price calculated as at the close of business on the next      You should understand that a person without your
business day.                                                 authority could telephone us or send us a fax and, by
                                                              pretending to be you, switch or withdraw funds from your
Investors will be able to lodge valid withdrawal requests
                                                              account for their own benefit. For details of the important
under the Ongoing Withdrawal Facility on any business
                                                              terms and conditions of the telephone and fax facility,
day. All valid withdrawal requests under the Ongoing
                                                              please refer to ‘Telephone and fax terms and conditions’
Withdrawal Facility received prior to 3.00pm (Sydney time)
                                                              at www.challenger.com.au/funds/PDS/HMF_IBR.pdf.
on the last business day of the relevant quarter will be
processed effective the first business day of the following   Transferring ownership
quarter and will usually be paid within 10 business days
                                                              You can transfer some or all of your investment to another
of that date. Relevant quarters are 1 January to 31 March,
                                                              person in such a manner and subject to such conditions as
1 April to 30 June, 1 July to 30 September and 1 October
                                                              required by law and that we, from time to time, prescribe.
to 31 December.
                                                              For further details on transferring ownership of your
We will provide notice if we are going to change the          investment, please refer to ‘Transferring ownership’ at
transaction cut-off times.                                    www.challenger.com.au/funds/PDS/HMF_IBR.pdf.

Monitoring your investment                                    Complaints
The Fund is a ‘disclosing entity’ for the purposes of the     We have a policy on how we will handle any complaints
Corporations Act 2001 and subject to regular reporting        relating to your investment. For information on how to
and disclosure obligations. For information on the            notify us of a complaint, please refer to ‘Complaints’ at
regular information we send and details on how you            www.challenger.com.au/funds/PDS/HMF_IBR.pdf.
can access further information on the Fund, e.g. annual
reports, half-yearly reports and continuous disclosure
notices, please refer to ‘Monitoring your investment’ at
www.challenger.com.au/funds/PDS/HMF_IBR.pdf.




                                                                                          Challenger Howard Mortgage Fund 15
Additional information

Unit prices and calculating income                            Taxation considerations
The investment and withdrawal unit price of each unit is      As tax and social security laws are complex and subject to
$1.00 and the Fund does not charge a buy/sell spread.         change, and investors’ individual circumstances vary, we
The Benchmark Report at www.challenger.com.au/                recommend that you obtain your own professional tax
funds/PDS/MortgageFunds_ASICBenchmark.pdf has                 advice regarding your position. Please refer to ‘Taxation
information relating to changes in unit price value.          considerations’ at www.challenger.com.au/funds/PDS/
                                                              HMF_IBR.pdf for more general information on certain
On withdrawal there will be adjustments for
                                                              taxation considerations regarding an investment in the
income and any withdrawal fee applicable. For the
                                                              Fund.
purposes of calculating the Fund’s income, the Fund’s
investments are valued in accordance with its constitution.   This incorporated information provides general
Please refer to ‘Unit prices and calculating income’ at       taxation information based on our understanding
www.challenger.com.au/funds/PDS/HMF_IBR.pdf for               of the Australian tax laws as at the date of this PDS.
further information.                                          Incorporated information should not be relied upon and
                                                              we recommend that you obtain your own professional tax
We also have a Unit Pricing Permitted Discretions Policy
                                                              advice regarding your investment.
which sets out how we will exercise any discretion in
relation to unit prices, such as how often we determine       Privacy and personal information
unit prices and our valuation methodology.
                                                              You can access, correct or update any personal
Distributions                                                 information we hold about you by contacting our Investor
                                                              Services team. A copy of our privacy policy is available by
The Benchmark Report at www.challenger.com.
                                                              visiting www.challenger.com.au or by contacting our
au/funds/PDS/MortgageFunds_ASICBenchmark.
                                                              Investor Services team.
pdf includes information on how the Fund sources
distributions. Distributions will generally be paid as        We collect information primarily for the following
soon as possible after the end of the distribution            purposes:
periods, however there may be some periods in which
                                                              •  to process your application;
no distributions are paid and we do not guarantee any
particular level of distributions. For more information       •  to administer your investment and provide you with 
on how and when distributions are paid, reinvesting              reports; and
distributions and what happens when distributions             •  to comply with our obligations under the law.
are returned to us, please refer to ‘Distributions’ at
                                                              We also ask you for some personal details so that we and
www.challenger.com.au/funds/PDS/HMF_IBR.pdf.
                                                              our related companies can keep in touch with you and
                                                              tell you about our other products and services that might
                                                              be useful to you. Please inform us in writing if you do not
                                                              want us to send you marketing materials.




16 Challenger Howard Mortgage Fund
Other information
The Fund’s constitution together with the Corporations
Act 2001 and some other laws, govern the way in which
the Fund operates and the rights and responsibilities and
duties of the responsible entity and unitholders.
For information on the following, please refer to
www.challenger.com.au/funds/PDS/HMF_IBR.pdf:
•  Legal relationships
•  Terminations
•  Unitholder meetings
•  Compliance plan and compliance committee
•  Audit
•  Other parties
•  Related parties
•  Making investments directly or indirectly
•  Disclosing your information
•  Direct Debit Request Service Agreement




                                                            Challenger Howard Mortgage Fund 17
Application form checklist

Checklist
To ensure that we are able to process your application quickly and efficiently, please cross (7) each box to confirm that
you have completed each section below that is relevant to your investment.

 Required information                                                                         Section of Form
                                                     Application Form for Individuals and           Application Form for Australian Companies,
                                                     Sole Traders                                   Trusts, Superannuation Funds, Partnerships
                                                                                                    and Government Bodies
 Investment details – Nominate whether               o Section 1                                    o Section 1
 you are opening a new account or investing
 additional funds into an existing account.
 Investor type – Nominate what type of               o Section 2                                    o Section 2
 investor you are.
 Investor name – Provide full name(s) of             Individual investors and sole traders          Individual or company trustees and partners
 investor(s). For companies, this must be the full   o Section 3A                                   o Section 3A; and
 name as registered with ASIC. For trustees who      Joint investors                                o Section 3B
 are Australian companies, the full registered       o Section 3A; and                              Name of entity
 business name and name registered with ASIC         o Section 3B                                   o Section 3C
 are required.
                                                                                                    Full registered business name for
                                                                                                    partnerships (if applicable)
                                                                                                    o Section 3D
 Account designation – Provide the name of           o Section 3C                                   Not applicable
 the person for whom the investment is being         Please ensure you also complete details
 made (if relevant). Please note we do not           for investor 1 in 3A (and investor 2 in 3B
 accept investments by minors (i.e. under 18         if relevant) as owners of the account.
 years of age); however, the investment may
 be held on their behalf.
 Contact details/Principal place of business         Individual investor’s and sole trader’s        Companies’ and government bodies’
 – Provide residential address, principal place      residential address                            principal place of business
 of business/operations and/or registered office     o Section 4A                                   o Section 4A
 address as applicable.                              Joint investors’ residential address           Companies’ registered office
 Trusts, superannuation funds and partnerships       o Section 4A; and                              o Section 4B
 do not need to complete these sections.             o Section 4B
                                                     Sole trader’s principal place of business
                                                     o Section 4B
 Postal address – Provide postal address to          o Section 5                                    o Section 5
 which all correspondence will be sent.
 Tax information – Provide your ABN, TFN             o Section 6                                    o Section 6
 or TFN exemption as applicable. If you are an
 overseas individual investor, provide country of
 residence for tax purposes.
 Income distribution – Indicate your                 o Section 7                                    o Section 7
 distribution payment method.
 Investment allocation – Indicate the amount         o Section 8                                    o Section 8
 you wish to invest in the Fund.
 Nominated account – Provide bank/financial          o Section 9                                    o Section 9
 institution account details.
 Annual report – Indicate whether you wish           o Section 10                                   o Section 10
 to receive a paper copy of the Fund’s annual
 report.




18 Challenger Howard Mortgage Fund
Required information                                                                            Section of Form
                                                             Application Form for Individuals       Application Form for Australian
                                                             and Sole Traders                       Companies, Trusts, Superannuation Funds,
                                                                                                    Partnerships and Government Bodies
Customer identity verification – Complete all                o Section 11                           Companies
required information relating to your investment                                                    o Section 11A
including providing valid certified copies of all required                                          Trusts/superannuation funds
identity verification documents (see below) to your                                                 o Section 11B
financial adviser or to Challenger with your application.
                                                                                                    Partnerships
                                                                                                    o Section 11C
                                                                                                    Government bodies
                                                                                                    o Section 11D
Identity verification documents                           o Valid identity verification documents   o Valid identity verification documents
It is important you provide all the required identity       provided                                  provided
verification documents outlined in the application form.
If your application form is not complete or you do not
provide the required documentation, we may be unable
to process your application or may delay the processing
of future withdrawal requests until we receive the
required documents.
If any documentation you provide is not in English,
it must be accompanied by an original copy of an
English translation prepared by an accredited translator.
Additional customer identity verification – Provide          o Section 12                           o Section 12
additional identity verification information if you are:
  I
•  ndividual/joint investors – who are not residents 
  in Australia or New Zealand and/or investing
  $1 million or more
• Sole traders – who are not residents in Australia 
  or New Zealand
• Charities, aid organisations or foundations.
Declaration and applicant(s) signature(s) – Read             o Section 13                           o Section 13
the declaration and provide all relevant applicant(s)
signature(s). Refer to the table on the following page
for a summary of signatures required for each type
of investor.

Before sending us your application to the address below, please ensure you have:
o completed in full the application form as outlined in the checklist; and
o provided all identity verification documentation; and
o attached your cheque to the application form. Please cross the cheque ‘Not Negotiable’ and make payable
  to ‘CMIL Application Account < insert name of investor(s)>’.
Please post all documentation above to:
Challenger Managed Investments Limited
Reply Paid 3698
Sydney NSW 2001
(No stamp required)




                                                                                                               Challenger Howard Mortgage Fund 19
Signatories
The table below provides guidance on completing the ‘Declaration and applicant(s) signature(s)’ section of the
application form. Please ensure you have read the declaration before signing the application form.

 Type of investor               Names required                                    Signature required                       TFN to be provided
 Individual and/or joint        i. Full name of each investor                     Individual investor’s; or each joint     Individual investor’s; or each
 investors                         (please do not use initials).                  investor’s                               joint investor’s
 Sole trader                    i. Full name of sole trader; and                  Sole trader’s                            Sole trader’s
                                ii. Full business name.
 Australian company             i. Full company name as registered with           i. Sole director’s; or                   Company’s
                                     ASIC; and                                    ii. Two directors’; or
                                ii. Name of each director of the company;         iii. One director’s and company
                                     and                                               secretary’s
                                iii. Name of each beneficial owner where
                                     their holding is 25% or greater.
 Trust/Superannuation fund      i. Full trust/superannuation fund name            Individual trustee(s) ‘as trustee for’   Superannuation fund’s or
 If you are investing on             (e.g. Michael Smith Pty Ltd ATF Michael      If any of the trustees are an            trust’s
 behalf of a superannuation          Smith Pty Ltd Super Fund); and               Australian company, the signatures
 fund, we will assume the       ii. Full name of the trustee(s) in respect of     set out in the ‘Australian company’
 superannuation fund to be           the trust/super fund (either individual(s)   section are also required.
 a complying fund under the          or business name). Please note, if any of
 Superannuation Industry             the trustees are an Australian company,
 (Supervision) Act 1993.             all information in the ‘Australian
                                     company’ section must also be
                                     completed; and
                                iii. Names of beneficiaries (if identified
                                     in Trust Deed).
 Partnership                    i. Full name of partnership; and                  Each partner’s                           Partnership’s
                                ii. Full registered business name
                                     of partnership; and
                                iii. Full name of each partner.
 Government entity              i. Full name of government body; and              Primary authorised contact’s             Government body’s
                                ii. Full name of primary authorised contact.
 Account designation            Name of the responsible adult, as the             Adult(s) investing on behalf of the      Adult(s)
                                investor.                                         person/minor
 If the investment is being     i. Full name of each investor(s)                  Person holding POA                       Individual investor’s; or each
 made under Power of                (as listed in section 3); and                 In the case that the POA                 joint investor’s
 Attorney (POA)                 ii. Full name of person holding POA               document does not contain
 Please ensure an original          (underneath signature).                       a sample of the POA’s (i.e.
 certified copy of the POA is                                                     Attorney’s) signature, please
 attached to the application                                                      provide a certified copy
 form. Each page of the                                                           of either the POA’s driver’s
 POA must be certified.                                                           licence or passport containing
 Please refer to www.                                                             a sample of their signature.
 challenger.com.au/funds/
 PDS/HMF_IBR.pdf for more
 information.




20 Challenger Howard Mortgage Fund
                                                                                    Application form checklist


Glossary
Term                         Explanation
accredited translator        A translator who has received accreditation from the National Accreditation Authority for Translators
                             and Interpreters Ltd.
ASIC                         Australian Securities and Investments Commission.
ASX                          Australian Securities Exchange.
Australian company           A company (other than a foreign company) that is registered by ASIC under the Corporations Act 2001.
Australian listed company An Australian company that is a public company included in the official list of an Australian financial
                          market.
beneficial owner             In respect of a company, any individual who owns, through one or more shareholdings, more than
                             25% of the issued capital in the company.
Challenger, CMIL, we, us,    Challenger Managed Investments Limited.
our, the manager or the
responsible entity
full doc loan                A full doc loan (or full documentation loan) refers to a loan where all income and assets are disclosed
                             in an application.
government                   A government superannuation fund established by legislation.
superannuation fund
nominated account            Your nominated, accessible account with an Australian financial institution.
proprietary company          A company which has certain restrictions placed on it as governed by the Corporations Act 2001.
                             The Act restricts proprietary companies from having more than 50 members (shareholders) and puts
                             restrictions on fundraising.
public company               Generally means a company that is permitted to offer its securities for sale to the general public.
registered scheme            A trust that is a managed investment scheme registered by ASIC.
regulated company            A company that is licensed and subject to the regulatory oversight of a Commonwealth, state or
                             territory statutory regulator in relation to its activities as a company, including a company that:
                             (a) has an Australian financial services licence; or
                             (b) is regulated by the Australian Prudential Regulation Authority (APRA).
regulated trust              A trust that is:
                             (a) a self-managed superannuation fund within the meaning of section 17A of the Superannuation
                                 Industry (Supervision) Act 1993: the relevant regulator is the Australian Taxation Office;
                             (b) a regulated superannuation fund, an approved deposit fund, a pooled superannuation trust,
                                 or a public sector superannuation scheme, within the meaning of the Superannuation Industry
                                 (Supervision) Act 1993, including small APRA-regulated funds: the relevant regulator is APRA;
                             (c) any other trust that the financial planner’s licensee and the issuer agree is a trust that is registered
                                 and subject to regulatory oversight of a Commonwealth statutory regulator in relation to its
                                 activities as a trust.
sole trader                  If you conduct a business alone, without a partner, then you are classified as a sole trader regardless
                             of whether or not you have employees working for you.




                                                                                                       Challenger Howard Mortgage Fund 21
                                     This page has been left intentionally blank.




22 Challenger Howard Mortgage Fund
Challenger Howard Mortgage Fund
Application Form for Individuals and Sole Traders
(dated 28 February 2011)
PLEASE USE BLOCK LETTERS AND BLACK INK TO COMPLETE THIS APPLICATION FORM
1. Investment details
                                                                                                                              Office use only
Do you have an existing investment in a Challenger managed fund?
    Yes 	 Existing account
           name


            Existing account
            number
                                Please proceed to section 8 and sign in section 13. If you provide any information in any other section, this will
                                override any previous information provided.
    No  Please proceed to section 2.

2. Investor type

What type of investor(s) are you?         Individual investor; or
                                          Joint investors; or
                                          Sole trader.

3. Investor name

                                3A. Investor 1/sole trader and business name of sole trader

                   Surname

         Full given name(s)

      Title (Mr/Mrs/Miss/Ms)
 Full business name of sole
                                                                                                 Date of birth           /           /
       trader (if applicable)

                                3B. Investor 2 (joint investments) or contact name for sole trader

                   Surname

         Full given name(s)

     Title (Mr/Mrs/Miss/Ms)                                                                      Date of birth           /           /
                                3C. Account designation
                                Provide name of the person for whom account is designated.

                  Full name




The Challenger Howard Mortgage Fund PDS (PDS) dated 28 February 2011 gives information about purchasing units in the Challenger Howard
Mortgage Fund (Fund). Any person who gives another person access to the application form must also give the person access to the Challenger
Howard Mortgage Fund PDS and any supplementary documents. You should read the PDS and any supplementary documents before completing
this application form. Challenger Managed Investments Limited (CMIL) (ABN 94 002 835 592, AFSL 234668) or a financial adviser who has provided
an electronic copy of the PDS and any supplementary documents will send you a paper copy of the PDS and any supplementary documents and
application form free of charge if you so request.                                                                                                   23
     4. Contact details

                                     4A. Investor 1 or sole trader                                   4B. Investor 2 (joint investments)
                                                                                                         or sole trader
                                     Residential address (must not be a PO Box) for:                  R
                                                                                                    •   esidential address (must not be a PO Box)
                                     • investor 1; or                                                 for investor 2; or
                                     • sole trader (please also complete 4B)                        • Principal place of business for sole trader

                                                                                                        Cross (7) this box if address is the same as the
                                                                                                        address in 4A.


                    Unit number

                  Street number

                    Street name

                          Suburb




                            State

                        Postcode

                         Country
                                     If your country of residence is not in Australia or New Zealand, please also complete section 12.


            Phone (after hours)

        Phone (business hours)

                          Mobile

                        Facsimile

                            Email




     5. Postal address for individual or joint investors or sole trader

        If your postal address is the same as your residential address in section 4A please cross (7 ) this box.

               C/- (if applicable)

                    Unit number                                  Street number                                     PO Box

                    Street name

                          Suburb

                            State                            Postcode                                       Country

     6. Tax information

                                     Investor 1 or sole trader                                       Investor 2 (for joint investments)

                             ABN                                                                      TFN

                              TFN                                                         Tax exemption

                 Tax exemption
                                     It is not against the law if you choose not to give your TFN or exemption reason, but if you decide not to, tax may be
                                     taken out of your distributions at the highest marginal tax rate (plus Medicare levy).
                                     Non-residents
                                     If you are an overseas investor, please indicate your country of residence for tax purposes.




24
 7. Income distribution
Please indicate how you would like your income distributions to be paid by crossing (7) one box only. Please note, a nomination in this section
overrides any previous nominations. If this is a new investment with Challenger and no nomination is made, distributions will be reinvested.
    Please reinvest my/our income distributions into the Fund.
    Please credit my/our nominated account provided in section 9 with my/our income distributions.

 8. Investment allocation
Please indicate the amount you wish to invest in the Fund. For individuals or joint investors, if you do not have an existing investment in a
Challenger managed fund and are investing $1 million or more, please also complete section 12.

                                                                                  (minimum initial investment $1,000)
                                                                            0 0
        Investment amount       $           ,             ,             .         (minimum one-off additional investment $250)
                                Make your cheque payable to ‘CMIL Application Account <insert name of investor(s)>’.

                                                                            0 0
Regular savings plan/month      $           ,             ,             .         (minimum additional investment $100/month)
Please ensure you have provided your bank account details in section 9. If you wish to nominate a different account or a third party account from
which your regular savings plan payments are to be deducted, please complete the Direct Debit Authority Form on page 41 of this PDS.

 9. Nominated account
Please provide your account details in this section if you wish us to debit/credit your accessible account. If you are participating in the regular savings
plan, this is the bank account from which your regular payments will be deducted. If you wish to nominate a different account or a third party
account from which your regular savings plan payments are to be deducted, please complete the Direct Debit Authority Form on page 41 of this
PDS. Please note that initial or one-off additional investments can only be made via cheque.

        Financial institution

                       Branch

              Account name



                                                –
       Branch number (BSB)                                          Account number

By providing your nominated account details in this section you authorise Challenger Managed Investments Limited to use these details for all future
transaction requests that you nominate.

 10. Annual report
We will provide a copy of the Fund’s annual report on our website www.challenger.com.au
   Please cross (7) this box if you wish to receive a paper copy of the report in the mail. If you choose to have the annual report mailed to you, we will
mail it to the postal address provided in section 5 or the current address we have on file for existing investors.




                                                                                                                                                              25
      11. Customer identity verification
     If you marked ‘No’ in section 1 (i.e. you do not have an existing investment in a Challenger managed fund) you must complete the identity verification
     section relevant to your investor type. If you are not lodging this application through a financial adviser you are required to provide us certified copies
     of the identity verification documents listed (ensuring each page is certified). Please refer to www.challenger.com.au/funds/PDS/HMF_IBR.pdf.
     i.   Identity verification for Australian residents. This must be completed by investor 1 (and investor 2 for joint investments) or sole traders
          who are Australian residents.

          Information required to be verified                                      Verification options
          Please ensure the document(s) you provide confirms the following:        Please cross (7) which document(s) you have provided:

          •	 Full	name	of	individual;	and	                                         Please provide EITHER A or B.
          •	 EITHER:                                                               A) a valid copy of ONE of the following documents:
              – Residential address of individual; or                                        Australian driver’s licence containing your photograph; or
              – Date of birth.                                                               Australian passport; or
                                                                                             Proof of age card issued under a state or territory law,
                                                                                             containing your photograph.
                                                                                   OR if none of the above can be provided, please provide i and ii below:
                                                                                   B) i.     a valid copy of ONE of the following documents:
                                                                                             Australian birth certificate; or
                                                                                             Australian citizenship certificate; or
                                                                                             Pension card issued by Centrelink; or
                                                                                             Health care card issued by Centrelink; AND
                                                                                       ii.   a valid copy of a notice that contains your name and residential
                                                                                             address which was issued to you by either:
                                                                                             the Commonwealth or a state or territory within the preceding
                                                                                             12 months and records the provision of financial benefits; or
                                                                                             the ATO within the preceding 12 months and records a debt
                                                                                             payable by or to you; or
                                                                                             a local government body or utilities provider within the
                                                                                             preceding three months and records the provision of services
                                                                                             to you.


     ii. Identity verification for non-Australian residents. This must be completed by investor 1 (and investor 2 for joint investments) or sole
         traders who are non-Australian residents.

          Information required to be verified                                      Verification options
          Please ensure the document(s) you provide confirms the following:        Please cross (7) which document(s) you have provided:

          •	 Full	name	of	individual;	and                                          Please provide EITHER A or B.
          •	 EITHER:                                                               A) a valid copy of ONE of the following documents:
              – Residential address of individual; or                                        Foreign passport or similar travel document bearing your
                                                                                             signature and photograph; or
              – Date of birth.
                                                                                             National identity card issued by a foreign government bearing
                                                                                             your signature and photograph.
                                                                                   OR if none of the above can be provided, please provide:
                                                                                   B) valid copies of TWO of the following documents:
                                                                                             Foreign driver’s licence that contains your photograph; and/or
                                                                                             Citizenship certificate issued by a foreign government; and/or
                                                                                             Birth certificate issued by a foreign government.




26
 12. Additional customer identity verification
You must complete this section if this is a new investment in a Challenger managed fund and:
•	 your	residential	address	is	not	in	Australia	or	New	Zealand	(for	individual/joint	investors	or	sole	traders);	and/or
•	 you	are	investing	$1	million	or	more	(for	individual	or	joint	investors	only).
                                  Investor 1 or sole trader                                      Investor 2 (joint investments)
       What is your country
             of citizenship?
        What other names
        are you known by?



                                 If you are known by any names other than the full name provided in section 3A and/or 3B, please provide other name(s)
                                 in full.
  What is your occupation?
   If you are a sole trader,
  please provide details of
    your business activities


     What is your source of
      funds, including the
       origin of the funds
           being invested?

 13. Declaration and applicant(s) signature(s) – (must be completed)
I/We declare that:
   a
•	 	 ll	details	in	this	application	and	all	documents	provided	are	true	and	correct	and	indemnify	Challenger	Managed	Investments	Limited
   (ABN 94 002 835 592, AFSL 234668) (CMIL) against any liabilities whatsoever arising out of it acting on any of these details or any future details
   provided by me/us in connection with this application;
   I
•	 	/we	have	received	a	copy	of	the	current	PDS	and	each	supplementary	product	disclosure	statement	to	which	this	application	applies	and	have	read	
   it and agree to the terms contained in it and to be bound by the provisions of the current PDS (including any incorporated information) and each
   supplementary product disclosure statement and relevant current constitution (each as amended from time to time);
   I
•	 	/we	have	legal	power	to	invest	in	accordance	with	this	application	and	have	complied	with	all	applicable	laws	in	making	this	application;
•	 I/we	have	received	and	accepted	this	offer	in	Australia;
•	 the	details	of	my/our	investment	can	be	provided	to	the	adviser	group	or	adviser	by	the	means	and	in	the	format	that	they	direct;
   i
•	 	n	the	case	of	joint	applications,	the	joint	applicants	agree	that	unless	otherwise	expressly	indicated	on	this	application	form,	the	units	will	be	held	
   as	joint	tenants	and	either	investor	is	able	to	operate	the	account	and	bind	the	other	investor	for	future	transactions,	including	additional	deposits	
   and withdrawals, including withdrawals by telephone and fax;
   i
•	 	f	this	application	is	signed	under	Power	of	Attorney,	the	Attorney	declares	that	he/she	has	not	received	notice	of	revocation	of	that	power	
   (a certified copy of the Power of Attorney should be submitted with this application unless we have already sighted it);
   I
•	 	/we	have	read	and	understood	the	terms	and	conditions	for	the	use	of	telephone	and	fax	and	release	and	indemnify	CMIL	against	any	liabilities	
   whatsoever arising out of it acting on any communications received by telephone and fax;
   I
•	 	/we	acknowledge	that	I/we	have	read	and	understood	the	information	under	the	heading	‘Privacy	and	personal	information’	contained	in	the	
   PDS. I am/We are aware that until I/we inform CMIL otherwise, I/we will be taken to have consented to all the uses of my/our personal information
   (including marketing) contained under that heading and I/we have consented to the provision of and authorised (if applicable) my/our financial adviser
   to provide such further personal information to Challenger as is required or reasonably deemed necessary by Challenger under applicable law;
   I
•	 	/we	understand	that	if	I/we	fail	to	provide	any	information	requested	in	this	application	form	or	do	not	agree	to	any	of	the	possible	exchanges	or	
   uses detailed above, my/our application may not be accepted by CMIL and we agree to release and indemnify CMIL in respect of any loss or liability
   arising from its inability to accept an application due to inadequate or incorrect details having been provided;
   I
•	 	/we	acknowledge	that	none	of	CMIL,	Challenger	Limited,	or	any	other	member	of	Challenger	Limited	or	the	custodian,	guarantees	the	performance	
   of the Fund or the repayment of capital or any particular rate of return or any distribution.
Direct Debit Request Authorisation
   I
•	 	/We	authorise	Challenger	Managed	Investments	Limited	(User	ID	No.	216558)	to	arrange	for	funds	to	be	debited	from	my/our	account	at	the	
   financial institution identified in section 9 above and as prescribed through the Bulk Electronic Clearing System (BECS).
   I
•	 	/We	have	read	the	‘Direct	Debit	Request	Service	Agreement’	available	at	www.challenger.com.au/funds/PDS/HMF_IBR.pdf and agree with its
   terms and conditions.
   I
•	 	/We	request	this	arrangement	to	remain	in	force	in	accordance	with	details	set	out	in	section	9	and	in	compliance	with	the	‘Direct	Debit	Request	
   Service Agreement’.
Investor 1 or sole trader

                    Signature                                                                                Date          /           /
                     Surname

               Given name(s)

Investor 2

                    Signature                                                                                Date          /           /
                     Surname

               Given name(s)
Important notes
This application must not be handed to any person unless attached to this PDS dated 28 February 2011. CMIL may in its absolute discretion refuse any
application for units. Persons external to CMIL or other entities who market CMIL products are not agents of CMIL but are independent investment
advisers. CMIL will not be bound by representations or statements which are not contained in information disseminated by CMIL. Application monies
paid by cheques from investment advisers will only be accepted if drawn from a trust account maintained in accordance with the Corporations Act 2001.
The Fund is offered by Challenger Managed Investments Limited (ABN 94 002 835 592, AFSL 234668).                                                      27
      Adviser use only


                     Office name

                         Surname

                   Given name(s)

           Title (Mr/Mrs/Miss/Ms)

          Phone (business hours)

                   Adviser group




             Adviser group AFSL

     Customer Identification Program
     By signing this section, I declare that the attached document(s) are true copies of the document(s) used to satisfy the identity verification requirements
     and I have complied with my obligations under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006.




                Adviser signature
                                                                                                                                ADVISER STAMP


                              Date            /           /
                                       InvestmentLink information

                                       IL GN (Group)                /               /
     Please nominate the commission option (refer to ‘Direct remuneration’ on page 10 of the PDS).
     Commission option A             Please nominate the upfront commission to be received:

                                          0%               0.33%              .         other (must be less than 0.33%)
                                     If no selection is made, 0.33% upfront commission will be assumed.
                                     OR
     Commission option B             Please nominate the upfront commission to be received:

                                          0%               1.10%              .         other (must be less than 1.10%)
                                     If no selection is made, 1.10% upfront commission will be assumed.
                                     If a financial adviser elects to receive less than the full upfront commission amount, the financial adviser will be
                                     rebating part of or all of their upfront commission to their client. Only licensed financial advisers are entitled to receive
                                     commission. Some financial advisers may rebate part or all of their normal upfront commission (not including the GST
                                     component) to investors although they are under no obligation to do so.




28
Challenger Howard Mortgage Fund
Application Form for Australian Companies, Trusts, Superannuation
Funds, Partnerships and Government Bodies (dated 28 February 2011)

PLEASE USE BLOCK LETTERS AND BLACK INK TO COMPLETE THIS APPLICATION FORM
 1. Investment details
                                                                                                                                Office use only
Do you have an existing investment in a Challenger managed fund?
    Yes 	 Existing account
           name


             Existing account
             number
                                Please proceed to section 8 and sign in section 13. If you provide any information in any other section, this will
                                override any previous information provided.
    No  Please proceed to section 2.

 2. Investor type
Please nominate what type of entity is investing and ensure that you complete, in full, the relevant customer identity verification section for the entity.
                                     Type of entity             Required customer identity verification
i. What entity is investing?         Australian company          Section 11A
                                     Australian trust/           Section 11B. If the trust has a company trustee, the company
                                     superannuation fund          trustee must also complete section 11A.
                                     Partnership                 Section 11C
                                     Government body             Section 11D
                                     Other                         Please contact us on 13 35 66 for customer identity verification requirements.
                                                                	 	
ii. Is this entity also a            Yes 	Please also complete section 12.
    charity, aid organisation
    or foundation?                   No 	 Please proceed to the next section.

 3. Investor name
Individual trustees or partners need to provide their full name under investor 1 and 2 (if applicable). For trustees who are an Australian company,
please provide full registered business name of company in section 3A and name registered with ASIC in section 3C. Partnerships need to provide the
full registered business name of the partnership in section 3D.
                                 3A. Investor 1 (Individual trustee or company trustee or partner)
                                Individual trustees or partners need to provide their full name and company trustees need to provide full registered
                                business name of company.

                     Surname

          Full given name(s)

      Title (Mr/Mrs/Miss/Ms)
          Name of company
                                                                                                  Date of birth            /           /
      trustee (if applicable)

                                 3B. Investor 2 (Individual trustee or partner)

                     Surname

          Full given name(s)

      Title (Mr/Mrs/Miss/Ms)                                                                      Date of birth            /           /
                                 3C. Full name of company/trust/superannuation fund/partnership or government body
                                For companies, this must be the full name as registered with ASIC.




The Challenger Howard Mortgage Fund PDS (PDS) dated 28 February 2011 gives information about purchasing units in the Challenger Howard
Mortgage Fund (Fund). Any person who gives another person access to the application form must also give the person access to the Challenger
Howard Mortgage Fund PDS and any supplementary documents. You should read the PDS and any supplementary documents before completing
this application form. Challenger Managed Investments Limited (CMIL) (ABN 94 002 835 592, AFSL 234668) or a financial adviser who has provided
an electronic copy of the PDS and any supplementary documents will send you a paper copy of the PDS and any supplementary documents and
application form free of charge if you so request.                                                                                                            29
                                     3D. Full registered business name of partnership (if applicable)




     4. Principal place of business/operations for companies and government bodies
     This section is to be completed by companies and government bodies only.

                   Contact name

                                     4A. Principal place of business/operations                  4B. Registered office
                                     This is to be completed by companies                       To be completed by companies only (must not be a PO Box).
                                     and government bodies (must not be a PO Box).
                                                                                                    Cross (7) this box if address is the same as principal
                                                                                                    place of business.


                    Unit number

                  Street number

                     Street name

                          Suburb




                            State

                        Postcode

                         Country

     5. Postal address and contact details for companies/trusts/superannuation funds/partnerships/government bodies

         For companies and government bodies, if your postal address is the same as your principal place of business/operations detailed above,
         please cross (7) this box.


               C/- (if applicable)

                    Unit number                                Street number                                    PO Box

                     Street name

                          Suburb

                            State                          Postcode                                    Country

             Phone (after hours)

         Phone (business hours)

                          Mobile

                        Facsimile

                            Email




30
 6. Tax information


                          ABN

                           TFN

              Tax exemption
                                 It is not against the law if you choose not to give your TFN or exemption reason, but if you decide not to, tax may be
                                 taken out of your distributions at the highest marginal tax rate (plus Medicare levy).

 7. Income distribution
Please indicate how you would like your income distributions to be paid by crossing (7) one box only. Please note, a nomination in this section
overrides any previous nominations. If this is a new investment and no nomination is made, distributions will be reinvested.
    Please reinvest my/our income distributions into the Fund.
    Please credit my/our bank account provided in section 9 with my/our income distributions.

 8. Investment allocation
Please indicate the amount you wish to invest in the Fund:
                                                                                   (minimum initial investment $1,000)
                                                                            0 0
        Investment amount        $          ,             ,             .          (minimum one-off additional investment $250)
                                 Make your cheque payable to ‘CMIL Application Account <insert name of investor(s)>’.

                                                                            0 0
Regular savings plan/month       $          ,             ,             .          (minimum additional investment $100/month)
Please ensure you have provided your bank account details in section 9. If you wish to nominate a different account or a third party account from
which your regular savings plan payments are to be deducted, please complete the Direct Debit Authority Form on page 41 of this PDS.

 9. Nominated account
Please provide your account details in this section if you wish us to debit/credit your accessible Australian financial institution account. If you are
participating in the regular savings plan, this is the bank account from which your regular payments will be deducted. If you wish to nominate a
different account or a third party account from which your regular savings plan payments are to be deducted, please complete the Direct Debit
Authority Form on page 41 of this PDS. Please note that initial or one-off additional investments can only be made via cheque.

        Financial institution

                       Branch

              Account name



                                                –
       Branch number (BSB)                                          Account number

By providing your account details in this section you authorise Challenger Managed Investments Limited to use these details for all future transaction
requests that you nominate.

 10. Annual report
We will provide a copy of the Fund’s annual report on our website www.challenger.com.au.
   Please cross (7) this box if you wish to receive a paper copy of the report in the mail. If you choose to have the annual report mailed to you we will
mail it to the postal address provided in section 5 or to the current address we have on file for existing investors.




                                                                                                                                                            31
                                               11. Customer identity verification
AUSTRALIAN COMPANY – CUSTOMER IDENTIFICATION



                                               If you marked ‘No’ in section 1 (i.e. you do not have an existing investment in a Challenger managed fund) you must complete the identity
                                               verification section relevant to your entity. If you are not lodging this application through a financial adviser you are required to provide us
                                               certified copies of the identity verification documents listed (ensuring each page is certified). Please refer to www.challenger.com.au/funds/PDS/
                                               HMF_IBR.pdf.

                                                                                12A. Australian company
                                                                               i.   Is your company an:
                                                                                         Australian company acting as trustee of a trust/superannuation fund; or
                                                                                         Australian company.


                                                                               ii. What is the ACN of the company?
                                                                               iii. Is your company registered by ASIC as a:
                                                                                         public company; or
                                                                                         proprietary company. Please provide number and full names of directors below.


                                                                                    No. of directors            Please provide full name of each director.
                                                    Surname                                                                                    Full given name(s)

                                               1.

                                               2.

                                               3.

                                               4.
                                                                                    If there are more than four (4) directors, please provide their full names on a separate piece of paper and attach it
                                                                                    to this application form.
                                                                               iv. Is your company:
                                                                                         licensed by an Australian Commonwealth, state or territory statutory regulator; or
                                                                                         a listed company; or
                                                                                       	 a	majority	owned	subsidiary	of	an	Australian	listed	company.
                                                                               v.   Unregulated proprietary companies must provide contact details of ALL individuals who are beneficial
                                                                                    owners through one or more share holdings of more than 25% of the company’s issued capital.
                                               Beneficial owner 1              Surname                                                         Full given name(s)



                                                                       Unit                         Street number                                Date of birth            /           /
                                                               Street name

                                                                    Suburb

                                                                       State                           Postcode                                      Country
                                               Beneficial owner 2              Surname                                                         Full given name(s)



                                                                       Unit                         Street number                                Date of birth            /           /
                                                               Street name

                                                                    Suburb

                                                                       State                           Postcode                                      Country
                                               Beneficial owner 3              Surname                                                         Full given name(s)




                                                                       Unit                         Street number                                Date of birth            /           /
                                                               Street name

                                                                    Suburb

                                                                       State                           Postcode                                      Country
                 32
11A. Australian company (cont.)
vi. Identity verification for Australian companies
    Information required to be verified               Verification options
    Please ensure the document(s) you provide         Please cross (7) which document(s) you have provided:
    confirms the following:

    i. Whether the company is:
                                                          Up-to-date extract from ASIC database; or
    •	 listed;	or
       m
    •	 	 ajority	owned	subsidiary	of	a	listed	            Up-to-date extract from ASX database (if applicable); or
       company; or
    •	 regulated.	                                        Certificate of registration issued by ASIC.
    ii. If the company is neither of these, the:
    •	 full	name	of	company;	and
          w
    •	 	 hether	company	is	registered	as	
          proprietary or public company; and
    •	 ACN.
    iii. Evidence that the director(s)/secretary
         signing the application form has the
         authority of the company.

11B. Australian trust/superannuation fund




                                                                                                                     TRUST/SUPERANNUATION FUND – CUSTOMER IDENTIFICATION
i. Is your trust/superannuation fund a:
        Registered scheme
        Regulated trust
        Government superannuation fund

        Other. Please specify
ii. If you marked ‘Other’ above, please indicate how the trust deed identifies beneficiaries/unitholders:
        Names of individuals (please list the name of each beneficiary/unitholder below); and/or
        Membership of a class (please list the names of each membership class below).
   Full names of beneficiaries/unitholders or membership class

   1.

   2.

   3.

   4.

   5.
iii. Identity verification for Australian trusts/superannuation funds
    Information required to be verified               Verification options
    Please ensure the document(s) you provide         Please cross (7) which document(s) you have provided:
    confirms the following:

    •	 Full	name	of	trust/superannuation              Registered schemes, regulated trusts or government
       fund; and                                      superannuation funds
    •	 Type	of	trust/superannuation	fund.                 Up-to-date extract from the relevant regulator database
                                                          (e.g. ASIC, ATO); or
                                                          Up-to-date extract of the legislation establishing the
                                                          government superannuation fund sourced from a
                                                          government website.

    •	 	 ull	name	of	trust/superannuation	fund.
       F                                              Other trusts
                                                          Extract of the trust deed; or
                                                          Notice issued by the ATO within the last 12 months
                                                          (e.g. notice of assessment).


iv. No. of trustees
v. Is the trustee(s) of the trust/superannuation fund:
        Individual(s)           If you marked ‘Other’ in question i above, please provide details for ALL TRUSTEES
                                on the next page (including any company trustees).
                                For all other trusts/superannuation funds you only need to provide details of
                                TRUSTEE 1 (as named in section 3A).
        Australian company Please provide the company’s address details requested under section ‘Company
                           trustee’ on page 34. You must also complete, in full, the identity verification
                           requirements for Australian companies in section 11A.
                                                                                                                     33
                                                                                       11B. Australian trust/superannuation fund (cont.)
TRUST/SUPERANNUATION FUND – CUSTOMER IDENTIFICATION



                                                      Individual trustee 1

                                                                        Surname

                                                               Full given name(s)

                                                           Title (Mr/Mrs/Miss/Ms)                                                                       Date of birth            /           /
                                                              Residential address (Street address)

                                                                               Unit                        Street number

                                                                     Street name

                                                                             Suburb                                                                                                           State

                                                                        Postcode                          Country

                                                               TFN or exemption
                                                                                      Trustee 1 must also complete the ‘Identity verification’ section on page 35 of this application form.
                                                      Individual trustee 2

                                                                        Surname

                                                               Full given name(s)

                                                           Title (Mr/Mrs/Miss/Ms)                                                                       Date of birth            /           /
                                                              Residential address (Street address)

                                                                               Unit                        Street number

                                                                     Street name

                                                                             Suburb                                                                                                           State

                                                                        Postcode                          Country
                                                                                      If there are more than two (2) individual trustees, and your trust is ‘Other’ please provide the required details for the
                                                                                      additional trusts on a separate piece of paper and attach it to this application form.
                                                                Company trustee This must be completed by Australian companies acting as trustees

                                                                   Contact name


                                                                                      Principal place of business/operations                         Full address of registered office
                                                                                                                                                          Cross (7) this box if same as principal place of
                                                                                                                                                          business.
                                                                                      Must not be a PO Box                                           Must not be a PO Box

                                                                    Unit number

                                                                   Street number

                                                                     Street name

                                                                             Suburb




                                                                              State

                                                                        Postcode

                                                                         Country




                    34
11B. Australian trust/superannuation fund (cont.)




                                                                                                                            TRUST/SUPERANNUATION FUND – CUSTOMER IDENTIFICATION
vi. Identity verification for individual trustees where trustee 1 is an Australian resident

     Information required to be verified          Verification options
     Please ensure the document(s) you            Please cross (7) which document(s) you have provided:
     provide confirms the following:
     •	 Full	name	of	individual;	and	             Please provide EITHER A or B.
     •	 EITHER:                                   A) a valid copy of ONE of the following documents:
        – Residential address of individual; or           Australian driver’s licence containing your photograph; or
        – Date of birth.                                  Australian passport; or
                                                          Proof of age card issued under a State or Territory law,
                                                          containing your photograph.
                                                  OR if none of the above can be provided, please provide i and ii below:
                                                  B) i. a valid copy of ONE of the following documents:
                                                              Australian birth certificate; or
                                                              Australian citizenship certificate; or
                                                              Pension card issued by Centrelink; or
                                                              Health care card issued by Centrelink; AND
                                                     ii. a valid copy of a notice that contains your name and
                                                         residential address which was issued to you by either:
                                                              the Commonwealth or a state or territory within the
                                                              preceding 12 months and records the provision of
                                                              financial benefits; or
                                                              the ATO within the preceding 12 months and records a
                                                              debt payable by or to you; or
                                                              a local government body or utilities provider within the
                                                              preceding 3 months and records the provision of services
                                                              to you.

vii. Identity verification for individual trustees where trustee 1 is a non-Australian resident

     Information required to be verified          Verification options
     Please ensure the document(s) you            Please cross (7) which document(s) you have provided:
     provide confirms the following:
     •	 Full	name	of	individual;	and	             Please provide EITHER A or B.
     •	 EITHER:                                   A) a valid copy of ONE of the following documents:
        – Residential address of individual; or           Foreign passport or similar travel document bearing your
        – Date of birth.                                  signature and photograph; or
                                                          National identity card issued by a foreign government
                                                          bearing your signature and photograph.
                                                  OR if none of the above can be provided, please provide:
                                                  B) valid copies of TWO of the following documents:
                                                          Foreign driver’s licence that contains your photograph;
                                                          and/or
                                                          Citizenship certificate issued by a foreign government;
                                                          and/or
                                                          Birth certificate issued by a foreign government.




                                                                                                                            35
                                                              11C. Partnership
PARTNERSHIP – CUSTOMER IDENTIFICATION




                                                             i.    In what country was the partnership established?
                                                             ii.   Is the partnership regulated by a professional association?
                                                                        Yes 	 Please provide full details below for PARTNER 1 (this should be the same person listed as ‘Investor 1’
                                                                               in section 3A) including the ‘Identity verification’ section for partner 1 on page 37.


                                                                                Name of the professional association
                                                                                                Membership details
                                                                                         (e.g. Membership number)


                                                                        No 	 Please provide full details of ALL partners below including the ‘Identity verification’ section for
                                                                              partner 1 on page 37.
                                                Partner 1

                                                 Surname

                                        Full given name(s)
                                                             Residential address

                                                     Unit                          Street number

                                             Street name

                                                  Suburb                                                                                                          State

                                                 Postcode                        Country

                                             Date of birth            /          /
                                                   Phone
                                                             Partner 1 must also complete the ‘Identity verification’ section on page 37 of this application form.
                                                Partner 2

                                                 Surname

                                        Full given name(s)
                                                             Residential address

                                                     Unit                          Street number

                                             Street name

                                                  Suburb                                                                                                          State

                                                 Postcode                        Country

                                             Date of birth            /          /
                                                   Phone
                                                             If there are more than two (2) partners, please provide the required details for each additional partner on a separate
                                                             piece of paper and attach it to this application form.




              36
 11C. Partnership (cont.)




                                                                                                                             PARTNERSHIP – CUSTOMER IDENTIFICATION
iii. Identity verification for Partnerships

     Information required to be verified           Verification options
     Please ensure the document(s) you             Please cross (7) which document(s) you have provided:
     provide confirms the following:

     •	 Full	name	of	partnership
                                                        Up-to-date extract of partnership agreement; and
        T
     •	 	 he	partner(s)	signing	the	application	
        form is a/are current partner(s) of the         If the partnership agreement does not confirm that the
        partnership.                                    partner(s) signing is a/are current partner(s), other evidence
                                                        that the person(s) is a/are current partner(s).

iv. Identity verification for partner 1 where they are an Australian resident

     Information required to be verified           Verification options
     Please ensure the document(s) you             Please cross (7) which document(s) you have provided:
     provide confirms the following:
     •	 Full	name	of	individual;	and	              Please provide EITHER A or B.
     •	 EITHER:                                    A) a valid copy of ONE of the following documents:
        – Residential address of individual; or            Australian driver’s licence containing your photograph; or
        – Date of birth.                                   Australian passport; or
                                                           Proof of age card issued under a State or Territory law,
                                                           containing your photograph.
                                                   OR if none of the above can be provided, please provide i and ii below:
                                                   B) i. a valid copy of ONE of the following documents:
                                                               Australian birth certificate; or
                                                               Australian citizenship certificate; or
                                                               Pension card issued by Centrelink; or
                                                               Health care card issued by Centrelink; AND
                                                      ii. a valid copy of a notice that contains your name and
                                                          residential address which was issued to you by either:
                                                               the Commonwealth or a state or territory within the
                                                               preceding 12 months and records the provision of
                                                               financial benefits; or
                                                               the ATO within the preceding 12 months and records a
                                                               debt payable by or to you; or
                                                               a local government body or utilities provider within the
                                                               preceding 3 months and records the provision of services
                                                               to you.

v.   Identity verification for partner 1 where they are a non-Australian resident

     Information required to be verified           Verification options
     Please ensure the document(s) you             Please cross (7) which document(s) you have provided:
     provide confirms the following:
     •	 Full	name	of	individual;	and	              Please provide EITHER A or B.
     •	 EITHER:                                    A) a valid copy of ONE of the following documents:
        – Residential address of individual; or            Foreign passport or similar travel document bearing your
        – Date of birth.                                   signature and photograph; or
                                                           National identity card issued by a foreign government
                                                           bearing your signature and photograph.
                                                   OR if none of the above can be provided, please provide:
                                                   B) valid copies of TWO of the following documents:
                                                           Foreign driver’s licence that contains your photograph;
                                                           and/or
                                                           Citizenship certificate issued by a foreign government;
                                                           and/or
                                                           Birth certificate issued by a foreign government.




                                                                                                                             37
                                                                             11D. Government body
GOVERNMENT BODY – CUSTOMER IDENTIFICATION



                                                                            i.    The government body is established under legislation of:

                                                                                       the Commonwealth; or

                                                                                       a state (please provide name of state); or

                                                                                       a territory (please provide name of territory); or

                                                                                       a foreign country (please provide name of country).

                                                                            ii.   Identity verification for government bodies

                                                                                  Information required to be verified          Verification options
                                                                                  Please ensure the document(s) you            Please cross (7) which document(s) you have provided:
                                                                                  provide confirms the following:

                                                                                  •	 Full	name	of	government	body;	and         Up-to-date extract from the relevant Commonwealth, state, territory
                                                                                  •	 	 ull	address	of	principal	place	of	
                                                                                     F                                         or foreign country:
                                                                                     operations; and                                 Website confirming the government body’s existence; or
                                                                                     L
                                                                                  •	 	 egislation	under	which	the	
                                                                                                                                     Register of government bodies; or
                                                                                     government body is established; and
                                                                                  •	 	 he	person	signing	the	application	
                                                                                     T                                               If the government body is established under legislation, an
                                                                                     form is the primary authorised                  extract of the legislation. This must be obtained from a reliable
                                                                                     contact.                                        and independent source such as a government website.



                                             12. Additional customer identity verification
                                            You must complete this section if your entity is a charity, aid organisation or foundation.
                                              Please provide details of the
                                                    nature of the activities
                                             conducted by the charity, aid
                                               organisation or foundation
                                                 The date upon which the
                                                  charity, aid organisation
                                                or foundation was formed                 /            /
                                                   The state or territory in
                                                      which the trust was
                                                               established
                                                The full name of the trust
                                                manager (if any) or settlor
                                                     (if any) in respect of
                                                                  the trust




                38
13. Declaration and applicant(s) signature(s) – (must be completed)
II/We declare that:
    a
•	 	 ll	details	in	this	application	and	all	documents	provided	are	true	and	correct	and	indemnify	Challenger	Managed	Investments	Limited
    (ABN 94 002 835 592, AFSL 234668) (CMIL) against any liabilities whatsoever arising out of it acting on any of these details or any future details
    provided by me/us in connection with this application;
    I
•	 	/we	have	received	a	copy	of	the	current	PDS	and	each	supplementary	product	disclosure	statement	(including	any	incorporated	information)	to	
    which this application applies and have read it and agree to the terms contained in it and to be bound by the provisions of the current PDS and
    each supplementary product disclosure statement and relevant current constitution (each as amended from time to time);
•	 I/we	have	legal	power	to	invest	in	accordance	with	this	application	and	have	complied	with	all	applicable	laws	in	making	this	application;
•	 I/we	have	received	and	accepted	this	offer	in	Australia;
•	 the	details	of	my/our	investment	can	be	provided	to	the	adviser	group	or	adviser	by	the	means	and	in	the	format	that	they	direct;
    i
•	 	f	this	application	is	signed	under	Power	of	Attorney,	the	Attorney	declares	that	he/she	has	not	received	notice	of	revocation	of	that	power	(a	
    certified copy of the Power of Attorney should be submitted with this application unless we have already sighted it);
•	 sole	signatories	signing	on	behalf	of	a	company	confirm	that	they	are	signing	as	sole	director	and	sole	secretary	of	the	company;
    i
•	 	f	investing	as	trustee,	on	behalf	of	a	superannuation	fund	or	trust	I/we	confirm	that	I/we	am/are	acting	in	accordance	with	my/our	designated	
    powers and authority under the trust deed. In the case of superannuation funds, I/we also confirm that it is a complying fund under the
    Superannuation Industry (Supervision) Act 1993;
    I
•	 	/we	have	read	and	understood	the	terms	and	conditions	for	the	use	of	telephone	and	fax	and	release	and	indemnify	CMIL	against	any	liabilities	
    whatsoever arising out of it acting on any communications received by telephone and fax;
    u
•	 	 nless	alternative	authority	for	signature	is	notified	to	and	accepted	by	CMIL,	the	person/persons	that	signs/sign	this	form	is/are	able	to	operate	
    the account on behalf of themselves/the relevant entity (as applicable) and bind themselves/the entity for future transactions, including additional
    deposits and withdrawals, including withdrawals by telephone and fax;
    I
•	 	/we	acknowledge	that	I/we	have	read	and	understood	the	information	under	the	heading	‘Privacy	and	personal	information’	contained	in	the	
    PDS. I am/We are aware that until I/we inform CMIL otherwise, I/we will be taken to have consented to all the uses of my/our personal information
    (including marketing) contained under that heading and I/we have consented to the provision of and authorised (if applicable) my/our financial
    adviser to provide such further personal information to Challenger as is required or reasonably deemed necessary by Challenger under applicable law;
    I
•	 	/we	understand	that	if	I/we	fail	to	provide	any	information	requested	in	this	application	form	or	do	not	agree	to	any	of	the	possible	exchanges	or	
    uses detailed above, my/our application may not be accepted by CMIL and we agree to release and indemnify CMIL in respect of any loss or liability
    arising from its inability to accept an application due to inadequate or incorrect details having been provided;
    I
•	 	/we	acknowledge	that	none	of	CMIL,	Challenger	Limited,	or	any	other	member	of	Challenger	Limited	or	the	custodian,	guarantees	the	performance	
    of the Fund or the repayment of capital or any particular rate of return or any distribution.
Direct Debit Request Authorisation
   I
•	 	/We	authorise	Challenger	Managed	Investments	Limited	(User	ID	No.	216558)	to	arrange	for	funds	to	be	debited	from	my/our	account	at	the	
   financial institution identified in section 9 above and as prescribed through the Bulk Electronic Clearing System (BECS).
•	 I/We	have	read	the	‘Direct	Debit	Request	Service	Agreement’	available	at	www.challenger.com.au/funds/PDS/HMF_IBR.pdf and agree with its
terms and conditions.
   I
•	 	/We	request	this	arrangement	to	remain	in	force	in	accordance	with	details	set	out	in	section	9	and	in	compliance	with	the	‘Direct	Debit	Request	
   Service Agreement’.
Investor 1

                   Signature                                                                             Date           /           /
                    Surname

              Given name(s)
                    Capacity       Sole Director         Director         Secretary (company investments only)

Investor 2

                   Signature                                                                             Date           /           /
                    Surname

              Given name(s)
                    Capacity       Director         Secretary (company investments only)




                                         COMPANY
                                           SEAL




Important notes
This application must not be handed to any person unless attached to this PDS dated 28 February 2011. CMIL may in its absolute discretion refuse any
application for units. Persons external to CMIL or other entities who market CMIL products are not agents of CMIL but are independent investment
advisers. CMIL will not be bound by representations or statements which are not contained in information disseminated by CMIL. Application monies
paid by cheques from investment advisers will only be accepted if drawn from a trust account maintained in accordance with the Corporations Act 2001.
The Fund is offered by Challenger Managed Investments Limited (ABN 94 002 835 592, AFSL 234668).




                                                                                                                                                           39
      Adviser use only


                     Office name

                         Surname

                   Given name(s)

           Title (Mr/Mrs/Miss/Ms)

          Phone (business hours)

                   Adviser group




             Adviser group AFSL

     Customer Identification Program
     By signing this section, I declare that the attached document(s) are true copies of the document(s) used to satisfy the identity verification requirements
     and I have complied with my obligations under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006.




                Adviser signature
                                                                                                                                ADVISER STAMP


                              Date            /           /
                                       InvestmentLink information

                                       IL GN (Group)                /               /
     Please nominate the commission option (refer to ‘Direct remuneration’ on page 10 of the PDS).
     Commission option A             Please nominate the upfront commission to be received:

                                          0%               0.33%              .         other (must be less than 0.33%)
                                     If no selection is made, 0.33% upfront commission will be assumed.
                                     OR
     Commission option B             Please nominate the upfront commission to be received:

                                          0%               1.10%              .         other (must be less than 1.10%)
                                     If no selection is made, 1.10% upfront commission will be assumed.
                                     If a financial adviser elects to receive less than the full upfront commission amount, the financial advisers will be
                                     rebating part of or all of their upfront commission to their client. Only licensed financial advisers are entitled to receive
                                     commission. Some financial advisers may rebate part or all of their normal upfront commission (not including the GST
                                     component) to investors although they are under no obligation to do so.




40
Challenger Howard Mortgage Fund
Direct Debit Authority Form (for regular savings plan only)

Complete this form if you are participating in the regular savings plan and wish to nominate a bank/financial institution account that is held in different
name(s), or to change your existing nomination. Please note that initial or one-off additional investments can only be made via cheque.


PLEASE USE BLOCK LETTERS AND BLACK INK TO COMPLETE THIS DIRECT DEBIT FORM

Account number (if known)
                                                                                     Investor 2 (joint investments) or contact name
 Investor 1 or business name of sole trader                                          for sole trader
Title                                                                               Title

Mr         Mrs       Miss        Ms         Other                                   Mr        Mrs         Miss        Ms         Other

Given name(s)                                                                       Given name(s)



Surname or full business name of sole trader (if applicable)                        Surname



Contact phone number                                                                Contact phone number




 Company/trust/superannuation fund/partnership/government body
Name of company/trust/superannuation fund/partnership/government body




Contact name



Contact phone number




Schedule                 Note: Direct debiting is not available on the full range of accounts. If in doubt, please refer to your financial institution.
                Account name
        which is to be debited

                                                    –
                    BSB number                                           Account number
                        Name of
            financial institution
                  Branch where
                 account is held
                         I/We request you until further notice in writing to debit my/our account described in the schedule above, any amounts which
                         Challenger Managed Investments Limited (ABN 94 002 835 592) (Challenger) (User ID No. 216558) may direct debit or
                         charge me/us through the Bulk Electronic Clearing System.
                         I/We understand and acknowledge that:
                         1. the bank/financial institution may, in its absolute discretion, determine the order of priority of payment by it of any monies
                            pursuant to this request or any authority or mandate, and at any time by notice in writing to me/us, terminate this request
                            as to future debits.
                         2. Challenger may, by prior arrangement and advice to me/us, vary the amount or frequency of future debits.
                         3. the bank/financial institution will provide to me/us upon request general descriptive information of the kind referred to
                            in sections 6.1 and 6.2 of the Code of Banking Practice, concerning the operation of accounts, banking facilities and
                            cheques.
                         4. the information which I/we have provided on this form is accurate and not misleading and I/we am/are aware that
                            Challenger is relying on it.
                         5. this direct debit arrangement is governed by the terms of the Bulk Electronic Clearing System Procedures and the
                            Direct Debit Service Agreement received from Challenger.
                                                                                                                                                              41
     Investor 1              Signature (please sign)                                              Date         /         /
                             Surname

                             Given name(s)
                             Capacity                  Sole Director      Director    Secretary (company investments only)




     Investor 2              Signature (please sign)                                              Date         /         /
                             Surname

                             Given name(s)
                             Capacity                  Sole Director      Director    Secretary (company investments only)



     Mail completed form (no stamp required) to:

     Challenger Managed Investments Limited
     Reply Paid 3698
     Sydney NSW 2001                                                   COMPANY SEAL




42
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                                               43
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44
Level 15                 Level 2
255 Pitt Street          168 St Georges Terrace
Sydney NSW 2000          Perth WA 6000
telephone 02 9994 7000   telephone 08 9261 7412
facsimile 02 9994 7777   facsimile 08 9321 5277

Level 33                 Level 3
101 Collins Street       97 Pirie Street
Melbourne VIC 3000       Adelaide SA 5000
telephone 02 9994 7000   telephone 08 7129 4402
facsimile 02 9994 7777   facsimile 08 8232 4446

Level 7                  Investor Services
                                                  11253/CG001/0311




320 Adelaide Street      13 35 66
Brisbane QLD 4000        Adviser Services
telephone 07 3136 5400   1800 621 009
facsimile 07 3136 5407   www.challenger.com.au

				
DOCUMENT INFO