DISCLOSURE

Like any investment, there are risks associated with investing in Leithner & Co. By nature, the risks associated with investments in securities cannot be exhaustively listed. Every investment is influenced by many factors that can affect both its value and the income it produces. Each investment can decline as well as increase in value. Many risk factors fall outside our control and cannot be completely mitigated.

The following is a non-exhaustive list of some risks associated with an investment in Leithner & Co RPSs. You should consider and weigh them up carefully and make your own assessment in respect of them and where necessary seek professional advice.

Investors should be aware that there is no guarantee that the implementation of our Investment Philosophy will not result in losses to the investors. Income distributions are not guaranteed, and neither is the return of capital.

Concentration Risk: Leithner & Co holds a relatively concentrated portfolio of securities.

The relatively small number of investments held at any time means that a significant decline in the price of any particular security may have a material impact on the NTA of each RPS.

Changes in domestic or global economic conditions: A downturn or general change in the economy may negatively affect the value of securities held by Leithner & Co and therefore the NTA of each RPS.

Variations in Australian Securities Exchange conditions including the value and demand for listed securities: Any downturn in the securities market in general may affect the market price of the securities held by Leithner & Co and therefore the NTA of each RPS.

Changes in the law: Changes in government policy and legislation including changes to the taxation systems or securities law may affect the financial performance of Leithner & Co and therefore the NTA of each RPS.

Inflation and interest rate risk: Fluctuations in inflation and interest rates may affect the income and market price of the securities held by Leithner & Co and therefore the NTA of each RPS.

Currency exchange risk: Exchange rates between the Australian dollar and foreign currencies change. This can affect the performance of securities and assets held by Leithner & Co. Whilst we overwhelmingly invest into Australian listed securities, these securities may be in companies with significant overseas operations and therefore directly exposed to currency fluctuations.

Natural disasters, social unrest, pandemics and terrorist attacks within Australia or overseas may affect the income and resale value of the securities held by Leithner & Co and therefore the NTA of each RPS.

Security specific risk: An investment in a company’s securities may be affected by unexpected changes in that company’s operations (such as changes in management or the loss of a key customer) and change in business environment.

Small and medium capitalisation company risk: Some of the companies Leithner & Co may invest in are smaller listed companies. Securities in these companies may trade less frequently and may experience greater price volatility than larger companies. Smaller capitalisation companies may also have more limited operating histories, markets, product lines or financial resources than larger companies. They may also depend heavily on key personnel.

Liquidity risk: There is the risk that a security may not easily be convertible into cash without a loss of capital or a significant delay. Leithner & Co manages its liquidity to ensure that it is able to meet its obligations in accordance with the “Redemptions” section of this IM however other than as outlined in that section it is not able to guarantee liquidity to RPS holders.

Market risk: Investments generally in securities are exposed to the universal risks of the securities market. However, particularly with, as we have, a concentrated portfolio there can be no guarantee that losses equivalent to or greater than the overall market will not be incurred within Leithner & Co’s portfolio which would in turn be reflected in the RPSs NTA.

Industry risk: There is a risk that a particular industry in which the Leithner & Co has invested may perform poorly or suffer a downturn due to global or local factors or changes to government policy either within Australia or overseas. There can be no guarantee that losses equivalent to or greater than the overall industry will not be incurred as a result of investing in the industry.

Personnel risk: The risk that people key to the management of Leithner & Co become unable or unavailable to perform their role.

Taxation: The risk that there are changes to tax laws which negatively impact companies generally or Leithner & Co specifically.

Disputes and defaults: Leithner & Co may be involved in disputes and possible litigation with counterparties or services providers.

Counterparty risk: Counterparty risk is the risk of loss caused by another party defaulting on its financial obligations either because it becomes insolvent or cannot otherwise meet its obligations to Leithner & Co. A party defaulting on its obligations could subject Leithner & Co to substantial losses.

Convertible instruments: Leithner & Co may invest in debt instruments that are convertible into equity which are issued by listed entities. There can be no guarantee that the issuer of the instrument will be able to pay any or all of the coupon payments or the principal (if the instrument is not converted into equity before its expiry). Further, there is no guarantee that the price at which the shares in the issuer of the instrument trade on the Australian Securities Exchange will be greater than the price at which shares in the entity will be issued to Leithner & Co if an election is made by us to convent the debt instrument into equity.

Debt instruments: Leithner & Co may invest in debt instruments that are issued by listed and unlisted entities and which are, themselves, listed and unlisted. There can be no guarantee that the issuer of the instrument will be able to pay any or all of the coupon payments or the principal.

Leithner & Company Ltd (ACN 087 450 360) (“Leithner & Co”) is an Australian financial services licensee (Number 259 094).  This document is our Privacy Policy and it tells you how we collect and manage personal information about you.

We respect our shareholders (“you, your”) rights to privacy under the Privacy Act 1988 (Cth) (“Privacy Act”) and, to the extent required by the Privacy Act, we comply with all of its requirements in respect of the collection, management and disclosure of your personal information.

This Privacy Policy tells you how we deal with personal information we may collect about you and is subject to any overriding provision of law and contract.

When you apply for shares in Leithner & Co, or provide us otherwise with your personal information, you are agreeing that we collect, hold, use and disclose your information as set out in this Privacy Policy.

What is personal information?

When used in this Privacy Policy, the term “personal information” has the meaning given to it in the Privacy Act.

What personal information do we collect and hold?

We may collect and hold the following types of personal information:

• your name, address, email address, telephone number, age or date of birth and any other identifying information contained in documents you may provide to us as proof of your identity;
• your occupation or job title;
• copies of relevant trust deeds, partnership agreements or company constitutions;
• transactional information you provide to us (e.g. your bank account details);
• details of the products and services you have purchased from us or which you have enquired about, together with any additional information necessary to deliver those products and services and to respond to enquiries;
• any additional information relating to you that is provided to us directly through our website or indirectly through use of our website or online presence, through our representatives or otherwise; and
• correspondence between us.

How do we collect personal information?

We collect personal information directly from individuals about whom the information relates unless it is unreasonable or impracticable to do so. When collecting personal information we may collect it in ways including:

• when you complete a form which you provide to us;
• through your access and use of our website;
• from communications between us (including for example, from emails and telephone conversations);
• during conversations between individuals and our representatives;
• through our promotional or marketing activities.

We may also collect personal information from third parties including from third party companies such as credit reporting agencies, law enforcement agencies and other government entities.

Cookies

In some cases we may also collect personal information through the use of cookies. When you access our website, we may send a “cookie” (which is a small summary file containing a unique ID number) to your computer. This enables us to recognise your computer and greet you each time you visit our website without bothering you with a request to register. It also enables us to keep track of products or services you view so that, if you consent, we can send you news about those products or services. By using cookies we can remember your personalised settings. We also use cookies to measure traffic patterns, to determine which areas of our website have been visited and to measure transaction patterns in the aggregate. We use this to research our users’ habits so that we can improve our online products and services. Our cookies do not collect personal information.

If you do not wish to receive cookies, you can set your browser so that your computer does not accept them. Please note this does not opt you out of being sent marketing materials. You may continue to receive generic advertisements on our website even if you do not allow your computer to accept cookies.

We may log IP addresses (that is, the electronic addresses of computers connected to the internet) to analyse trends, administer the website, track users movements, and gather broad demographic information.

What happens if we don’t collect personal information?

If a person does not provide us with the personal information described above, some or all of the following may happen:

• we may not be able to provide the requested products or services, either to our usual standard or at all;
• we may not be able to provide information about products and services;
• we may not be able to provide updates and other information about products and services previously purchased; and
• we may be unable to tailor the content of our website.

Security

We take reasonable steps to ensure your personal information is protected from misuse and loss and from unauthorised access, modification or disclosure. We may hold your information in either electronic or hard copy form. Personal information is destroyed or de-identified when no longer needed and no longer required under law to be maintained.

As our website is linked to the internet, and the internet is inherently insecure, we cannot provide any assurance regarding the security of transmission of information you communicate to us online. We also cannot guarantee that the information you supply will not be intercepted while being transmitted over the internet. Accordingly, any personal information or other information which you transmit to us online is transmitted at your own risk.

For what purposes do we collect, hold, use and disclose personal information?

We collect, hold, use and disclose personal information for the following purposes:

• to provide products and services to you and to establish and manage your investments;
• to contact you when you so request, and provide you with information you have requested;
• to process communications you send us and to send you communications;
• to answer enquiries and provide information or advice about existing and new opportunities;
• to provide access to protected areas of our website;
• to verify your identity and to get in contact with you if we need to;
• to conduct appropriate checks for fraud;
• to conduct internal research to improve the way we provide service to our clients, including assessing and improving the performance of our website;
• to conduct business processing functions including providing personal information to contractors, service providers or other third parties;
• for the administrative, marketing (including direct marketing), planning, product or service development, quality control and research purposes;
• to update our records;
• to process and respond to complaints;
• to comply with laws and our legal obligations; and
• any other purposes identified at the time of collecting personal information, and anything you authorise us to do.

Personal information we collect will not be shared, sold, rented or disclosed other than as described in this Privacy Policy.

To whom do we disclose personal information?

We may disclose personal information to:

• our employees;
• other contractors or service providers, for the purposes of operation of our website or our business and to otherwise provide products and services including, without limitation, web hosting providers, IT systems administrators, mailing houses, couriers, data entry service providers, electronic network administrators and professional advisers such as accountants, solicitors, business advisers and consultants;
• third parties with whom we have commercial relationships, for business, marketing, and related purposes;
• regulatory bodies, government agencies and law enforcement bodies in any jurisdiction as required by law;
• other third parties as required or authorised by law;
• third parties such as a complaint body to whom a complaint relating to a product or service is referred and anyone acting on your behalf; and
• any person or organisation for any authorised purpose with your express consent.

Direct marketing materials

We may send you direct marketing communications and information about our products and services that we consider may be of interest to you. These communications may be sent in various forms, including mail, SMS, fax and email, in accordance with applicable marketing laws, such as the Spam Act 2003 (Cth). If you indicate a preference for a method of communication, we will endeavour to use that method whenever practical to do so.

At any time you may opt-out of receiving marketing communications from us by contacting us (see the details below) or by using opt-out facilities provided in the marketing communications and we will then ensure that your name is removed from our mailing list.

We do not provide personal information to other organisations for the purposes of direct marketing.

How can you access and correct personal information we hold about you?

You may request access to any personal information we hold about you at any time by contacting us (see the contact details below). Where we hold information that you are entitled to access, we will try to provide you with suitable means of accessing it (for example, by mailing or emailing it to you).

There may be instances where we cannot grant you access to the personal information we hold about you. For example, we may need to refuse access if granting access would interfere with the privacy of others or if it would result in a breach of confidentiality. If that happens, we will give you written reasons for any refusal.

If you believe that personal information we hold about you is incorrect, incomplete or inaccurate, then you may request us to amend it. We will consider if the information requires amendment. If we do not agree that there are grounds for amendment then we will add a note to the personal information stating that you disagree with it.

What is the process for complaining about a breach of privacy?

If you believe that your privacy has been interfered with, please contact us using the contact information below and provide details of the incident so that we can investigate it.

Do we disclose personal information to anyone outside Australia?

We may disclose personal information to our data hosting and other IT service providers which may include personnel located outside of Australia, however your personal information will be held and managed within Australia by Australian personnel.

Changes to this Privacy Policy

We may amend this Privacy Policy from time to time. If we amend this Privacy Policy, the amended Privacy Policy will be made available on our website. You are invited to review this Privacy Policy from time to time.

Contacting us

If you have any questions about this Privacy Policy, any concerns or a complaint regarding the treatment of your privacy or a possible breach of your privacy, please use the contact link on our website or the contact details set out below.

We will treat your requests or complaints confidentially. Our representative will contact you within a reasonable time after receipt of your complaint to discuss your concerns and outline options regarding how they may be resolved. We will aim to ensure that your complaint is resolved in timely and appropriate manner.

Please contact:
David Guy, Joint Managing Director, Leithner & Company Ltd
Level 8, 149 Wickham Terrace, Spring Hill, Qld, 4000
Email: info@leithner.com.au
Mobile: 0414 628 266