solaris australian equity fund (total...

ARSN 167 220 546

Annual Financial Statements for the year ended 30 June 2017

Solaris Australian Equity Fund (Total Return)

ARSN 167 220 546

Annual Financial Statements for the year ended 30 J une 2017

ContentsPage

Directors' report 2 Auditor's independence declaration 4 Statement of comprehensive income 5 Statement of financial position 6 Statement of changes in equity 7 Statement of cash flows 8 Notes to the financial statements 9 Directors' declaration 26 Independent auditor's report to the unitholders of the Solaris Australian Equity Fund (Total Return) 27


1

These financial statements cover the Solaris Australian Equity Fund (Total Return) as an individual entity.

The Responsible Entity of the Solaris Australian Equity Fund (Total Return) is Channel Investment Management Limited(ABN 22 163 234 240). The Responsible Entity's registered office is Level 25, Waterfront Place, 1 Eagle Street, Brisbane,QLD 4000.

1

Directors' report

Principal activities

Directors

Mr G HoldingMs K YouhannaMr S Jordan

Review and results of operations

There has been no change in the Fund's activities during the year.

The directors of Channel Investment Management Limited, the Responsible Entity of the Solaris Australian Equity Fund(Total Return), present their report together with the financial statements of the Solaris Australian Equity Fund (TotalReturn) (the "Fund''), for the year ended 30 June 2017.

The Fund is a registered managed investment fund domiciled in Australia.

Solaris Australian Equity Fund (Total Return)Directors' report

The Fund did not have any employees during the year.

For the year ended 30 June 2017

The Responsible Entity has a Compliance Committee consisting of two independent persons and one non-independent person. This committee’s role is to oversee the compliance requirements of the Fund operated by the Responsible Entity. During the year this Committee met four times.

The following persons held office as directors of Channel Investment Management Limited during the year or since the end of the year and up to the date of this report.

The Fund may hold between 40 and 70 listed Australian securities, as well as securities expected to be listed on anAustralian exchange, in accordance with the provisions of the Fund's Information Memorandum and Fund Constitution. Ittargets a 'Total Return' of capital, dividends and franking credits. In addition, the Fund will seek to remain fully investedwith the Fund's allowable maximum cash exposure of 5% of total assets at any one time.

There have been no significant changes to the operations of the Fund since the previous financial period. The Fund

2

Year ended Year ended30 June 30 June

2017 2016$'000 $'000

Net operating profit before financing costs attributable to unitholders 9,232 1,313

3,391 2,329 Distribution (cents per unit) 5.5410 4.7890

Significant changes in state of affairs

Matters subsequent to the end of the financial year

(i) the operations of the Fund in future financial years, or(ii) the results of those operations in future financial years, or(iii) the state of affairs of the Fund in future financial years.

The performance of the Fund, as represented by the results of its operations, was as follows:

No matter or circumstance has arisen since 30 June 2017 that has significantly affected, or may significantly affect:

Distribution paid and payable

In the opinion of the directors, there were no other significant changes in the state of affairs of the Fund that occurredduring the financial year under review.

There have been no significant changes to the operations of the Fund since the previous financial period. The Fundcontinued to invest funds in accordance with target asset allocations as set out in the governing documents of the Fund andin accordance with the provisions of the Fund's Constitution.

2

Directors' report (continued)

Likely developments and expected results of operati ons

Indemnification and insurance of officers and audit ors

The auditors of the Fund are in no way indemnified out of the assets of the Fund.

Fees paid to and interests held in the Fund by the Responsible Entity or its associates

No fees were paid out of Fund property to the directors of the Responsible Entity during the year.

lnterests in the Fund

The Fund will continue to be managed in accordance with the investment objectives and guidelines as set out in thegoverning documents of the Fund and in accordance with the provisions of the Fund's Constitution.

The results of the Fund's operations will be affected by a number of factors, including the performance of investmentmarkets in which the Fund invests. Investment performance is not guaranteed and future returns may differ from pastreturns. As investment conditions change over time, past returns should not be used to predict future returns.

Fees paid to the Responsible Entity and its associates out of Fund property during the year are disclosed in Note 15 of thefinancial statements.

Insurance cover provided to either the officers of Channel Investment Management Limited or the auditors of the Fund ispaid by Channel Investment Management Limited and not out of the assets of the Fund. So long as the officers of ChannelInvestment Management Limited act in accordance with the Fund's Constitution and the Law, the officers remainindemnified out of the assets of the Fund against losses incurred while acting on behalf of the Fund.

Further information on likely developments in the operations of the Fund and the expected results of those operations havenot been included in this report because the Responsible Entity believes it would be likely to result in unreasonableprejudice to the Fund.

Parties related to the Fund (including Channel Investment Management Limited, its related parties and other schemesmanaged by Channel Investments Management Limited), did not hold any units in the Fund for the year ended 30 June2017.


For the year ended 30 June 2017Directors' report (continued)

3

lnterests in the Fund

The movement in units on issue in the Fund during the year is disclosed in Note 13 of the financial statements.

Environmental regulation

Rounding of amounts to the nearest thousand dollars

Auditor's independence declaration

This report is made in accordance with a resolution of the directors.

Mr G HoldingDirectorChannel Investment Management Limited

Brisbane19 September 2017

The Fund is an entity of the kind referred to in ASIC Corporations (Rounding in Financial/Directors' Reports) Instrument2016/191 and in accordance with that instrument, amounts in the consolidated financial report and directors' report havebeen rounded off to the nearest thousand dollars or nearest dollar, unless otherwise stated.

The operations of the Fund are not subject to any particular or significant environmental regulations under aCommonwealth, State or Territory law.

A copy of the Auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set outon page 4.

3

}

pwc

Auditor's Independence Declaration

As lead auditor for the audit of Solaris Australian Equity Fund (Total Return) for the year ended 3oJune zot7, I declare that to the best of my knowledge and belief, there have been:

(a) no contraventions of the auditor independence requirements of the Corporations Act zoot inrelation to the audit; and

(b) no contraventions ofany applicable code ofprofessional conduct in relation to the audit.

Woodbridge Brisbaner9 September 2or7Partner

PricewaterhouseCoopers

Priceroatet'houseCoopers,ABN gz 78o 4gg 75748o Queen Street, BRISBANE QLD 4ooo, GPO Box t5o, BRISBANE QLD 4oo1T: +6t 7 3257 5ooo, F: +6t 7 3257 g999,wwDpwc.com.au

Liability limited by a scheme approved under Professional Standards Legislation.

Statement of comprehensive income


Notes 2017 2016$'000 $'000

Investment income

20 14 Dividend income 5 3,182 2,439

6 6,133 (1,058) Total net investment income 9,335 1,395

ExpensesTransaction costs 103 82 Total operating expenses 103 82

Operating profit 9,232 1,313

Finance costs attributable to unitholdersDistributions to unitholders 8 (3,391) (2,329) Decrease/(Increase) in net assets attributable to unitholders 13 (5,841) 1,016 Profit/(loss) for the year - -

Other comprehensive income - -

Total comprehensive income for the year - -

Solaris Australian Equity Fund (Total Return)Statement of comprehensive income

Interest income from financial assets not held at fair value through profit or loss

The above statement of comprehensive income should be read in conjunction with the accompanying notes.


Net (losses)/gains on financial instruments held at fair value through profit or loss

55

Statement of financial position

As at As at30 June 30 June

Notes 2017 2016$'000 $'000

AssetsCash and cash equivalents 9 4,037 846 Receivables 11 954 1,009 Financial assets held at fair value through profit or loss 10 66,509 49,463 Total assets 71,500 51,318

LiabilitiesDistributions payable 8 534 322 Payables 12 646 203

1,180 525

Net assets attributable to unitholders 13 70,320 50,793

The above statement of financial position should be read in conjunction with the accompanying notes.

As at 30 June 2017

Total liabilities (excluding net assets attributabl e to unitholders)

Statement of financial positionSolaris Australian Equity Fund (Total Return)

66

Statement of changes in equity


2017 2016$'000 $'000

Total equity at the beginning of the financial year - - Profit/(loss) for the year - - Other comprehensive income - - Total comprehensive income - - Transactions with owners in their capacity as owners - - Total equity at the end of the financial year - -

Changes in net assets attributable to unitholders are disclosed in Note 13.

The above statement of changes in equity should be read in conjunction with the accompanying notes.


Solaris Australian Equity Fund (Total Return)Statement of changes in equity

ln accordance with AASB 132 'Financial lnstruments, net assets attributable to unitholders are classified as a liability ratherthan equity. As a result there was no equity at the start or end of the year.

77

Statement of cash flows


Notes 2017 2016$'000 $'000

Cash flows from operating activities

25,535 21,777

(35,938) (20,789)

(103) (82)Dividends/distributions received 3,173 2,328Interest received 18 11GST received/(paid) (1) -Net cash inflow/(outflow) from operating activities 16 (a) (7,316) 3,245

Cash flows from financing activitiesProceeds from applications by unitholders 15,838 300Payments for redemptions by unitholders (2,161) (126) Distributions paid (3,170) (2,640) Net cash inflow/(outflow) from financing activities 10,507 (2,466)

Net increase/(decrease) in cash and cash equivalent s 3,191 779

Cash and cash equivalents at the beginning of the year 846 67

Cash and cash equivalents at the end of the year 9, 16 (b) 4,037 846

Non-cash financing activities 16 (c) 9 -

Proceeds from sales of financial instruments held at fair value through profit or lossPurchase of financial instruments held at fair value through profit or loss


Transaction costs on financial instruments held at fair value through profit or loss

Statement of cash flowsSolaris Australian Equity Fund (Total Return)

8

The above statement of cash flows should be read in conjunction with the accompanying notes.

8

Contents

Page 1 General information 10 2 Summary of significant accounting policies 10 3 Financial risk management 15 4 Fair value measurements 17 5 Dividend income 20 6 Net (losses)/gains on financial instruments held at fair value through profit or loss 20 7 Auditor's remuneration 21 8 Distributions to unitholders 21 9 Cash and cash equivalents 21 10 Financial assets held at fair value through profit or loss 22 11 Receivables 22 12 Payables 22 13 Net assets attributable to unitholders 22 14 Derivative financial instruments 23 15 Related party transactions 24 16 Reconciliation of net profit to net cash outflow from operating activities 25 17 Events occurring after the reporting date 25 18 Contingent assets and liabilities and commitments 25

Notes to the financial statementsSolaris Australian Equity Fund (Total Return)


99

1

2

(a)

These financial statements cover the Solaris Australian Equity Fund (Total Return) (the “Fund") as an individual entity. The Fund was constituted on 24 December 2013. The Fund will terminate on the day immediately proceeding the 80thanniversary of the commencement date unless terminated earlier in accordance with the provisions of the FundConstitution.

The Fund may hold between 40 and 70 listed Australian securities, as well as securities expected to be listed on anAustralian exchange, in accordance with the provisions of the Fund's Product Disclosure Statement and Fund Constitution.It targets a 'Total Return' of capital, dividends and franking credits. In addition, the Fund will seek to remain fully investedwith the Fund's allowable maximum cash exposure of 5% of total assets at any one time.

Notes to the financial statements (continued)

Solaris Investment Management Limited acts as investment manager of the Fund.

Basis of preparation



General information

The financial statements were authorised for issue by the directors on 19 September 2017. The directors of theResponsible Entity have the power to amend the financial statements after they have been issued.

The principal accounting policies applied in the preparation of these financial statements are set out below. These policieshave been consistently applied to all years presented, unless otherwise stated in the following text.

Summary of significant accounting policies

The Responsible Entity is incorporated and domiciled in Australia.

The Custodian of the Fund is RBC Investor Services Trust.

The Responsible Entity of the Fund is Channel Investment Management Limited (the “Responsible Entity''). TheResponsible Entity's registered office is Level 25, Waterfront Place, 1 Eagle Street, Brisbane, QLD 4000. The financialstatements are presented in the Australian currency.

These general purpose financial statements have been prepared in accordance with Australian Accounting Standards andInterpretations issued by the Accounting Standard Board and the Corporations Act 2001 in Australia. The Solaris Australian

10

(i) Compliance with International Financial Reporting Standards (IFRS)

(ii) New and amended standards adopted by the Fund

The financial statements of the Fund also comply with International Financial Reporting Standards as issued by theInternational Accounting Standards Board.

The statement of financial position is presented on a liquidity basis. Assets and liabilities are presented in decreasing orderof liquidity and are not distinguished between current and non‑current. All balances are generally expected to be recoveredor settled within twelve months, except for investments in financial assets and liabilities at fair value through profit or lossand net assets attributable to unitholders. The amount expected to be recovered or settled within twelve months in relationto these balances cannot be reliably determined.

There are no new standards, interpretations or amendments to existing standards that are effective for the first time for thefinancial year beginning 1 July 2016 that have a material impact on the Fund.

Interpretations issued by the Accounting Standard Board and the Corporations Act 2001 in Australia. The Solaris AustralianEquity Fund (Total Return) is a for-profit unit trust for the purpose of preparing the financial statements.

The financial statements are prepared on the basis of fair value measurement of assets and liabilities except whereotherwise stated.

10

2

(a)

(iii) New standards and interpretations not yet adopted

- AASB 9 Financial Instruments (and applicable amendments) (effective from 1 January 2018)

- AASB 15 Revenue from Contracts with Customers (effective from 1 January 2018)

Certain new accounting standards and interpretations have been published that are not mandatory for the 30 June 2017reporting period and have not been early adopted by the Fund. The directors’ assessment of the impact of these newstandards (to the extent relevant to the Fund) and interpretations is set out below:

AASB 9 addresses the classification, measurement and derecognition of financial assets and financial liabilities. It has nowalso introduced revised rules around hedge accounting and impairment. The standard is not applicable until 1 January 2018but is available for early adoption. The directors do not expect this to have a significant impact on the recognition andmeasurement of the Fund’s financial instruments as they are carried at fair value through profit or loss. The derecognitionrules have not changed from the previous requirements, and the Fund does not apply hedge accounting. AASB 9introduces a new impairment model. However, as the Fund's investments are held at fair value through profit or loss, thechange in impairment rules will not impact the Fund. The Fund has not yet decided when to adopt AASB 9.

AASB 15 will replace AASB 118 Revenue which covers contracts for goods and services and AASB 111 ConstructionContracts which covers construction contracts. AASB 15 is based on the principle that revenue is recognised when controlof a good or service transfers to a customer – so the notion of control replaces the existing notion of risks and rewards.

There are no other standards that are not yet effective and that are expected to have a material impact on the Fund in thecurrent or future reporting periods and on foreseeable future transactions.

The Fund’s main sources of income are interest, dividends and distributions, and gains on financial instruments held at fair value. All of these are outside the scope of the new revenue standard. As a consequence, the directors do not expect the adoption of AASB 15 to have a significant impact on the Fund’s accounting policies or the amounts recognised in the financial statements. The Fund has not yet decided when to adopt AASB 15.

Summary of significant accounting policies (continu ed)

Notes to the financial statements (continued)Solaris Australian Equity Fund (Total Return)


Basis of preparation (continued)

11

(b)

(i) Classification

The Fund’s investments are classified as at fair value through profit or loss. They comprise:

▪ Financial instruments held for trading

▪ Financial instruments designated at fair value through profit or loss upon initial recognition

Financial instruments

These include financial assets and financial liabilities that are not held for trading purposes and which may be sold.These are investments in exchange traded debt and equity instruments, unlisted trusts, unlisted equity instrumentsand commercial paper.

Derivative financial instruments such as futures, forward contracts, options and interest rate swaps are includedunder this classification. The Fund does not designate any derivatives as hedges in a hedging relationship.

Financial assets and financial liabilities designated at fair value through profit or loss at inception are those that aremanaged and their performance evaluated on a fair value basis in accordance with the Fund’s documentedinvestment strategy. The Fund’s policy is for the Responsible Entity to evaluate the information about these financialinstruments on a fair value basis together with other related financial information. The information on the fair valuebasis is provided internally to the Fund’s key management personnel.

11

2

(b)

(ii) Recognition/derecognition

- the rights to receive cash flows from the asset have expired;-

- the Fund has transferred its rights to receive cash flows from the asset and either:- has transferred substantially all the risks and rewards of the asset; or-

A financial liability is derecognised when the obligation under the liability is discharged, cancelled or expires.

(iii) Measurement

(a) Financial assets and liabilities held at fair value through profit or loss

The Fund recognises financial assets and financial liabilities on the date they become party to the contractual agreement(trade date) and recognises changes in fair value of the financial assets or financial liabilities from this date.

retains the right to receive cash flows from the asset, but has assumed an obligation to pay them Fund the in fullwithout material delay to a third party under a 'pass through' agreement; or

Any gains or losses arising on derecognition of the asset (calculated as the difference between the disposal proceeds andthe carrying amount of the asset) are included in the statement of comprehensive income in the year the asset isderecognised as realised gains or losses on financial instruments.


Financial instruments (continued)

At initial recognition, the Fund measures a financial asset at its fair value. Transaction costs of financial assets carried atfair value through profit or loss are expensed in the statement of comprehensive income.

A financial asset (or, where applicable a part of a financial asset or part of a group of similar financial assets) isderecognised where:

has neither transferred nor retained substantially all the risks and rewards of the asset but has transferred controlof the asset.

Subsequent to initial recognition, all financial assets and financial liabilities at fair value through profit or loss are measured



12

Further details on how the fair values of financial instruments are determined are disclosed in Note 4.

(b) Loans and receivables

Loan assets are measured initially at fair value plus transaction costs and subsequently amortised using the effectiveinterest rate method, less impairment losses if any. Such assets are reviewed at the end of each reporting period todetermine whether there is objective evidence of impairment.

The fair value of financial assets and liabilities traded in active markets is subsequently based on their quoted market pricesat the end of the reporting period without any deduction for estimated future selling costs. The quoted market price used forfinancial assets held by the Fund is the current bid price and the quoted market price for financial liabilities is the currentasking price.

If evidence of impairment exists, an impairment loss is recognised in profit or loss as the difference between the asset’scarrying amount and the present value of estimated future cash flows discounted at the original effective interest rate.

The fair value of financial assets and liabilities that are not traded in an active market are determined using valuationtechniques. The Fund uses a variety of methods and makes assumptions that are based on market conditions existing ateach reporting date. Valuation techniques used include the use of comparable recent arm’s length transactions, referenceto other instruments that are substantially the same, discounted cash flow analysis, option pricing models and othervaluation techniques commonly used by market participants making the maximum use of market inputs and relying as littleas possible on entity-specific inputs.

Subsequent to initial recognition, all financial assets and financial liabilities at fair value through profit or loss are measuredat fair value. Gains and losses arising from changes in the fair value of the ‘financial assets or financial liabilities at fairvalue through profit or loss’ category are presented in the statement of comprehensive income within net gains/(losses) onfinancial instruments held at fair value through profit or loss in the period in which they arise. This also includes dividendexpense on short sales of securities, which have been classified at fair value through profit or loss.

If in a subsequent period the amount of an impairment loss recognised on a financial asset carried at amortised costdecreases and the decrease can be linked objectively to an event occurring after the write-down, the write-down is reversedthrough profit or loss.

12

2

(b)

(iv) Offsetting financial instruments

(c) Net assets attributable to unitholders

(d) Cash and cash equivalents

(e) Investment income

(i) Interest income

Financial instruments (continued)

For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, depositsheld at call with financial institutions, cash held with broker for margin calls, other short term, highly liquid investments withoriginal maturities of three months or less from the date of acquisition that are readily convertible to known amounts of cashand which are subject to an insignificant risk of changes in value, and bank overdrafts. Bank overdrafts are shown withinborrowings in the balance sheet.

Financial assets and liabilities are offset and the net amount reported in the statement of financial position when there is alegally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis, or realise theasset and settle the liability simultaneously.

Solaris Australian Equity Fund (Total Return)Notes to the financial statements (continued)

Payments and receipts relating to the purchase and sale of investment securities are classified as cash flows fromoperating activities, as movements in the fair value of these securities represent the Fund's main income generatingactivity.

Interest income is recognised in profit or loss for all financial instruments that are not held at fair value through profit or loss



Units are redeemable at the unitholders' option, however, applications and redemptions may be suspended by theResponsible Entity if it is in the best interests of the unitholders. The units are classified as financial liabilities as the Fund isrequired to distribute its distributable income. The units can be put back to the Fund at any time for cash based on theredemption price. The fair value of redeemable units is measured at the redemption amount that is payable (based on theredemption unit price) at the end of the reporting period if unitholders exercised their right to redeem units in the Fund.

13

(ii) Dividend and Distributions

(f) Expenses

(g) Income tax

The benefit of imputation credits and foreign tax paid are passed on to unitholders.

The effective interest method is a method of calculating the amortised cost of a financial asset or financial liability and ofallocating the interest income or interest expense over the relevant period. The effective interest rate is the rate that exactlydiscounts estimated future cash payments or receipts throughout the expected life of the financial instrument, or a shorterperiod where appropriate, to the net carrying amount of the financial asset or liability. When calculating the effective interestrate, the Fund estimates cash flows considering all contractual terms of the financial instrument (for example, prepaymentoptions) but does not consider future credit losses. The calculation includes all fees paid or received between the parties tothe contract that are an integral part of the effective interest rate, including transaction costs and all other premiums ordiscounts.

Under current legislation, the Fund is not subject to income tax as unitholders are presently entitled to the income of the

Interest income is recognised in profit or loss for all financial instruments that are not held at fair value through profit or lossusing the effective interest method. Interest income on assets held at fair value through profit or loss is included in the netgains/(losses) on financial instruments. Other changes in fair value for such instruments are recorded in accordance withthe policies described in Note 2(b).

Trust distributions are recognised on an entitlements basis.

Any expenses which are paid by the unitholder from Fund assets are included in the Fund's financial statements andrecognised in the profit or loss on an accruals basis. Any expenses that are paid directly to the Responsible Entity and/orinvestment manager by the unitholder as per the terms of individual agreements are not recognized in the Fund's financialstatements.

Dividend income is recognised on the ex-dividend date with any related foreign withholding tax recorded as an expense.The Fund currently incurs withholding tax imposed by certain countries on investment income. Such income is recordedgross of withholding tax in profit or loss.

13

2

(h) Distributions

(i) Increase/(decrease) in net assets attributable to u nitholders

(j) Due from/to brokers

(k) Receivables

(l) Payables

Payables include liabilities and accrued expenses owing by the Fund which are unpaid as at the end of the reporting period.


Receivables may include amounts for dividends, interest and trust distributions. Dividends and trust distributions areaccrued when the right to receive payment is established. Interest is accrued at the end of each reporting period from thetime of last payment in accordance with the policy set out in Note 2(f) above. Amounts are generally received within 30days of being recorded as receivables.




Receivables include such items as Reduced Input Tax Credits (RITC) and application monies receivable from unitholders.

Income not distributed is included in net assets attributable to unitholders. Movements in net assets attributable tounitholders are recognised in profit or loss as finance costs.

Amounts due from/to brokers represent receivables for securities sold and payables for securities purchased that havebeen contracted for but not yet delivered by the end of the year. Trades are recorded on trade date, and for equitiesnormally settled within three business days. A provision for impairment of amounts due from brokers is established whenthere is objective evidence that the Fund will not be able to collect all amounts due from the relevant broker. Indicators thatthe amount due from brokers is impaired include significant financial difficulties of the broker, probability that the broker willenter bankruptcy or financial reorganisation and default in payments.

In accordance with the Fund’s Constitution, the Fund distributes its distributable (taxable) income, and any other amountsdetermined by the Responsible Entity, to unitholders by cash or reinvestment. The distributions are recognised in thestatement of comprehensive income as finance costs attributable to unitholders.

14

(m) Applications and redemptions

(n) Goods and Services Tax (GST)

(o) Use of estimates

As the Fund has a contractual obligation to distribute its distributable income, a separate distribution payable is recognisedin the balance sheet as at the end of each reporting period where this amount remains unpaid as at the end of the reportingperiod.

Applications received for units in the Fund are recorded net of any entry fees payable prior to the issue of units in the Fund.Redemptions from the Fund are recorded gross of any exit fees payable after the cancellation of units redeemed.

The GST incurred on the costs of various services provided to the Fund by third parties such as audit fees, custodialservices and investment management fees have been passed onto the Fund. The Fund qualifies for Reduced Input TaxCredits (RITC) at a rate of 75% hence transactions costs and other expenses have been recognised in the statement ofcomprehensive income net of the amount of GST recoverable from the Australian Taxation Office (ATO). Accounts payableare inclusive of GST. The net amount of GST recoverable from the ATO is included in receivables in the statement offinancial position. Cash flows relating to GST are included in the statement of cash flows on a gross basis.

For the majority of the Fund’s financial instruments, quoted market prices are readily available. However, certain financialinstruments, for example over-the-counter derivatives or unquoted securities, are fair valued using valuation techniques.Where valuation techniques (for example, pricing models) are used to determine fair values, they are validated andperiodically reviewed by experienced personnel of the Responsible Entity, independent of the area that created them.

The Fund makes estimates and assumptions that affect the reported amounts of assets and liabilities within the nextfinancial year. Estimates are continually evaluated and based on historical experience and other factors, includingexpectations of future events that are believed to be reasonable under the circumstances.

Models use observable data, to the extent practicable. However, areas such as credit risk (both own and counterparty),volatilities and correlations require management to make estimates. Changes in assumptions about these factors couldaffect the reported fair value of financial instruments.

14

2

(o) Use of estimates (continued)

(p) Rounding of amounts

3

(a) Objectives, strategies, policies and processes

(b) Market risk

(i) Price risk

The Fund is an entity of the kind referred to in ASIC Corporations (Rounding in Financial/Directors' Reports) Instrument2016/191 and in accordance with that instrument, amounts in the consolidated financial report and directors' report havebeen rounded off to the nearest thousand dollars or nearest dollar, unless otherwise stated.


The Fund’s activities expose it to a variety of financial risks: market risk (including price risk, foreign currency risk andinterest rate risk), credit risk and liquidity risk.


Financial risk management

The Fund’s overall risk management program focuses on ensuring compliance with the Fund’s Product DisclosureStatement and seeks to maximise the returns derived for the level of risk to which the Fund is exposed. Financial riskmanagement is carried out by the Investment Manager under policies approved by the Board of Directors of theResponsible Entity (the Board).

As part of its risk management strategy, the Fund uses derivatives and other investments, including share price futures, tomanage exposures resulting from changes in equity price risks, and exposures arising from forecast transactions.

For certain other financial instruments, including amounts due from/to brokers and payables, the carrying amountsapproximate fair value due to the short-term nature of these financial instruments.

The Fund uses different methods to measure different types of risk to which it is exposed. These methods includesensitivity analysis in the case of interest rate, foreign exchange and other price risks and ratings analysis for credit risk.


15

(i) Price risk

The Investment Manager mitigates this price risk through diversification and a careful selection of securities and otherfinancial instruments within specified limits set by the Board. The Fund's overall market positions are monitored on a dailybasis by the Fund's Investment Manager. Compliance with the Fund's Product Disclosure Statement is reported to theBoard at least quarterly.

Equity price risk is the risk that the fair value of equities will fluctuate because of changes in market prices, whether thosechanges are caused by factors specific to the individual financial instrument or its issuer, or factors affecting all similarfinancial instruments traded in the market. Equity price risk exposure arises from the Fund's investment portfolio. Theinvestments are classified on the statement of financial position as at fair value through profit or loss. All securitiesinvestments present a risk of loss of capital. The maximum risk resulting from financial instruments is determined by the fairvalue of the financial instruments.

15

3

(b) Market risk (continued)

(i) Price risk (continued)


2017 2016$'000 $'000

Securities designated at fair value through profit or loss 66,505 49,454 Derivative assets/(liabilities) held for trading 4 9 Total 66,509 49,463

Summarised sensitivity analysis

(ii) Foreign exchange risk

Net assets attributable to unitholders include investments in equity securities and related derivatives. At 30 June 2017 and30 June 2016, the overall market exposures were as follows:


At 30 June 2017, if the equity prices had increased by 13% (2016: 13%) with all other variables held constant, this wouldhave increased net assets attributable to unitholders (and net operating profit/(loss)) by approximately $8.6 million (2016:$6.4 million). Conversely, if the equity prices had decreased by 13% (2016: 13%), this would have decreased net assetsattributable to unitholders (and net operating profit/(loss)) by approximately $8.6 million (2016: $6.4 million).

The following summarises the sensitivity of the Fund’s operating profit and net assets attributable to unitholders to pricerisk. The reasonably possible movements in the risk variables have been determined based on management’s bestestimate, having regards to a number of factors, including historical correlation of the Fund’s Investments with the relevantbenchmark and market volatility. However, actual movements in the risk variables may be greater or less than anticipateddue to a number of factors, including unusually large market shocks resulting from changes in the performance of theeconomies, markets and securities in which the Fund invests. As a result, historic variation in risk variables should not beused to predict future variation in the risk variables.



Financial risk management (continued)

16

(ii) Foreign exchange risk

(iii) Cash flow and interest rate risk

(c) Credit risk

Credit risk is not considered to be significant to the Fund.

The Fund is not exposed to significant risks from movements in foreign exchange rates as there are no financial assets andliabilities denominated in foreign currencies.

The majority of the Fund’s financial assets are non-interest-bearing. Interest-bearing financial assets and interest-bearingfinancial liabilities mature or reprice in the short-term, no longer than twelve months. As a result, the Fund is subject tolimited exposure to fair value interest rate risk due to fluctuations in the prevailing levels of market interest rates.

Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing todischarge an obligation.

The Fund holds no collateral as security or any other credit enhancement. The maximum exposure to credit risk at the endof each reporting period is the carrying amount of the financial assets. None of these assets are impaired nor past due butnot impaired.

16

3

(d) Liquidity risk

In accordance with the Fund’s policy, the Investment Manager monitors the Fund’s liquidity position on a daily basis.

Maturity analysis for financial liabilities

At 30 June 2017 1‑‑‑‑3 months 3‑‑‑‑12 months 12‑‑‑‑60 months$’000 $’000 $’000 $’000

Distributions payable 534 - - -

646 - - - Net assets attributable to unitholders 70,320 - - -

71,500 - - -

At 30 June 2016 1‑3 months 3‑12 months 12‑60 months$’000 $’000 $’000 $’000

The Fund may, from time to time, invest in exchange traded derivative contracts. The derivative products purchased by the Fund are traded on an active exchange and can be readily disposed. Liquidity risk related to the use of derivative products is considered to be low.

Due to brokers - payable for securities purchased


Less than 1 month

The table below analyses the Fund's financial liabilities into relevant maturity groupings based on the remaining period atthe end of the reporting period to the contractual maturity date. The amounts in the table are the contractual undiscountedcash flows.

Financial risk management (continued)


Liquidity risk is the risk that the Fund may not be able to generate sufficient cash resources to settle its obligations in full asthey fall due or can only do so on terms that are materially disadvantageous.

The Fund is exposed to daily cash redemptions of redeemable units and daily margin calls on derivatives. It therefore primarily holds investments that are traded in an active market and can be readily disposed.


Contractual cashflow (excluding derivatives)

Less than 1 month

17

Distributions payable 322 - - -

203 - - - Net assets attributable to unitholders 50,793 - - -

51,318 - - -

4

- Financial assets/liabilities designated at fair value through profit or loss (FVTPL)- Financial assets/liabilities held for trading- Derivative financial instruments

The Fund has no assets or liabilities measured at fair value on a non-recurring basis in the current reporting period.

Fair value measurements

Contractual cashflow (excluding derivatives)

Due to brokers - payable for securities purchased

The Fund measures and recognises financial assets and liabilities held at fair value through profit or loss on a recurring basis.

17

4

Classification of financial assets and financial liabilities

- Quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1);

-

- Inputs for the asset or liability that are not based on observable market data (unobservable inputs) (Level 3).

(a) Fair value in an active market (Level 1)

A financial instrument is regarded as quoted in an active market if quoted prices are readily and regularly available from anexchange, dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual andregularly occurring market transactions on an arm’s length basis.

Fair value measurements (continued)


The Fund values its investments in accordance with the accounting policies set out in Note 2 of the financial statements.For the majority of its investments, the Fund relies on information provided by independent pricing services for the valuationof its investments.

Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly orindirectly (Level 2); and

Fair value hierarchy



The quoted market price used for financial assets held by the Fund is the current bid price; the quoted market price forfinancial liabilities is the current asking price. When the Fund holds derivatives with offsetting market risks, it uses mid-market prices as a basis for establishing fair values for the offsetting risk positions and applies this bid or asking price to thenet open position, as appropriate.

The fair value of financial assets and liabilities traded in active markets (such as publicly traded derivatives and listed equitysecurities ) are based on quoted market prices at the close of trading at the end of the reporting period without anydeduction for estimated future selling costs.

The Fund classifies fair value measurements using a fair value hierarchy that reflects the subjectivity of the inputs used inmaking the measurements. The fair value hierarchy has the following levels:

18

(b) Fair value in an inactive or unquoted market (Level 2 and Level 3)

An active market is a market in which transactions for the asset or liability take place with sufficient frequency and volumeto provide pricing information on an ongoing basis.

For other pricing models, inputs are based on market data at the end of the reporting period. Fair values for unquotedequity investments are estimated, if possible, using applicable price/earnings ratios for similar listed companies adjusted toreflect the specific circumstances of the issuer.

Investments in other unlisted unit trusts are recorded at the redemption value per unit as reported by the investmentmanagers of such funds.

The fair value of derivatives that are not exchange traded is estimated at the amount that the Fund would receive or pay toterminate the contract at the end of reporting period taking into account current market conditions (volatility and appropriateyield curve) and the current creditworthiness of the counterparties. The foreign currency contracts are valued at the forwardrate.

Where discounted cash flow techniques are used, estimated future cash flows are based on best estimates and thediscount rate used is a market rate at the end of the reporting period applicable for an instrument with similar terms andconditions.

The fair value of financial assets and liabilities that are not traded in an active market is determined using valuationtechniques. These include the use of recent arm’s length market transactions, reference to the current fair value of asubstantially similar other instrument, discounted cash flow techniques, option pricing models or any other valuationtechnique that provides a reliable estimate of prices obtained in actual market transactions.

18

4

(b) Fair value in an inactive or unquoted market (Level 2 and Level 3) (continued)

At 30 June 2017 Level 1 Level 2 Level 3 Total$’000 $’000 $’000 $’000

Financial assetsDesignated at fair value through profit or lossListed equities 58,665 - - 58,665 Listed unit trusts 6,635 - - 6,635 Listed property trusts 1,205 - - 1,205

Held for tradingDerivatives (futures) 4 - - 4

Total financial assets 66,509 - - 66,509

At 30 June 2016 Level 1 Level 2 Level 3 Total$’000 $’000 $’000 $’000



The following table presents the Fund's financial assets and liabilities measured and recognised at fair value according tothe fair value hierarchy at 30 June 2017 and 30 June 2016:

The carrying value less impairment provision of other receivables and payables are assumed to approximate their fairvalues. The fair value of financial liabilities for disclosure purposes is estimated by discounting the future contractual cashflows at the current market interest rate that is available to the Fund for similar financial instruments.

The output of a model is always an estimate or approximation of a value that cannot be determined with certainty, andvaluation techniques employed may not fully reflect all factors relevant to the positions the Fund holds. Valuations aretherefore adjusted, where appropriate, to allow for additional factors including liquidity risk and counterparty risk.


Some of the inputs to these models may not be market observable and are therefore estimated based on assumptions.

19

Financial assetsDesignated at fair value through profit or lossListed equities 43,305 - - 43,305 Listed unit trusts 5,175 - - 5,175 Listed property trusts 974 - - 974

Held for tradingDerivatives (futures) 9 - - 9

Total financial assets 49,463 - - 49,463

The fair value of financial instruments traded in active markets (listed equities, unit trusts and property trusts) is based onquoted market prices at the end of the reporting period. The quoted market price used for financial assets held by the Fundis the current bid price. These instruments are included in level 1. Derivative financial instruments (futures) are included inlevel 1, as they are traded in an active market.

19

4

At 30 June 2017Unlisted equity

$'000

- - -

Transfers into(out) from level 3 - Gains and losses recognised in profit or loss -

-

At 30 June 2016Unlisted equity

$'000

501 - -

Transfers into(out) from level 3 (501) Gains and losses recognised in profit or loss -

-

5

Year ended Year ended

Sales

SalesPurchases


Opening balance

Closing balance

The carrying amounts of trade receivables and payables are assumed to approximate their fair values due to their short-term nature.

Dividend income

Notes to the financial statements (continued)For the year ended 30 June 2017

Purchases


Opening balance

Closing balance

The following table presents the movement in Level 3 instruments for the year ended 30 June 2017 and 30 June 2016 byclass of financial instrument.

20


2017 2016$'000 $'000

Dividend/Trust distribution income 3,182 2,439 3,182 2,439

6 Net gains/(losses) on financial instruments held at fair value through profit or loss


2017 2016$'000 $'000

Net unrealised gains/(losses) on financial assets held for trading (6) 17

4,429 (827) Net unrealised (losses)/gains on financial assets 4,423 (810)

Net realised losses on financial assets held for trading 189 3

1,521 (251) 1,710 (248)

6,133 (1,058)

Net realised gains on financial assets designated as at fair value through profit or lossNet realised gains on financial assets

Net gains on financial instruments held at fair val ue through profit or loss

Net unrealised (losses)/gains on financial assets designated as at fair value through profit or loss

20

7

During the year the following fees were paid or payable for services provided by the auditor of the Fund:


2017 2016$ $

(i) Audit and other assurance servicesAudit and review of financial statements 10,959 10,853 Other assurance services

Audit of compliance plan 8,117 9,435 Total remuneration for audit and other assurance se rvices 19,076 20,288

(ii) Taxation servicesTax Compliance Services 3,125 3,250

Total remuneration for audit and non-audit services 22,201 23,538

8 Distributions to unitholders

Timing of distributions

The distributions were paid/payable as follows:

Year ended Year ended Year ended Year ended30 June 30 June 30 June 30 June

2017 217 2016 2016

Auditor’s remuneration


The fees for audit and non‑audit services are paid by the investment manager out of the management fees that theycharge outside of the fund.


21

2017 217 2016 2016$'000 CPU $'000 CPU

DistributionsDistributions paid - September 929 1.524 589 1.2119 Distributions paid - December 1,446 2.353 895 1.8438 Distributions paid - March 482 0.791 523 1.0724 Distributions payable 534 0.873 322 0.6609 Total distribution 3,391 5.5410 2,329 4.7890

9 Cash and cash equivalents


2017 2016$'000 $'000

Cash at bank 3,943 760 Deposits held with brokers for margin calls 94 86

4,037 846

21

10


2017 2016$'000 $'000

Designated at fair value through profit or lossListed equities 58,665 43,305 Listed unit trusts 6,635 5,175 Listed property trusts 1,205 974 Unlisted equities - - Total financial assets designated at fair value thr ough profit or loss 66,505 49,454

Held for tradingDerivatives (futures) 4 9 Total financial assets held for trading 4 9

Total financial assets held at fair value through p rofit or loss 66,509 49,463

11


2017 2016$'000 $'000

Due from brokers - receivable for securities sold 319 386 Interest receivable 3 1 Accrued income 629 620 GST receivable 3 2

954 1,009



Financial assets held at fair value through profit or loss

Receivables

22

12


2017 2016$'000 $'000

Due to brokers - payable for securities purchased 646 203 646 203

13

Movements in number of units and net assets attributable to unitholders during the year were as follows:

Year ended Year ended Year ended Year ended30 June 30 June 30 June 30 June

2017 2017 2016 2016Units '000 $'000 Units '000 $'000

Opening balance 48,769 50,793 48,592 51,636 Applications 14,305 15,838 299 300 Redemptions (1,871) (2,161) (122) (127)

10 9 - -

- 5,841 - (1,016) Closing balance 61,213 70,320 48,769 50,793

As stipulated in the Fund Constitution, each unit represents a right to an individual share in the Fund and does not extendto a right to the underlying assets of the Fund. There are no separate classes of units and each unit has the same rightsattaching to it as all other units of the Fund.

Units issued upon reinvestment of distributions

Net assets attributable to unitholders

(Decrease)/increase in net assets attributable to unitholders

Payables

22

13

Capital risk management

14

- hedging to protect an asset or liability of the Fund against a fluctuation in market values or to reduce volatility,

- a substitution for trading of physical securities, and

-

The Fund monitors the level of daily applications and redemptions relative to the liquid assets in the Fund. The Fund’sstrategy is to hold a certain portion of the net assets attributable to unitholders in liquid investments. Liquid assets includecash and cash equivalents and listed equities. Under the terms of the Fund’s Constitution, the Responsible Entity has thediscretion to reject an application for units and to defer or adjust a redemption of units, if the exercise of such discretion is in the best interests of unitholders.

adjusting asset exposures within the parameters set in the investment strategy, and adjusting the duration of fixed

Derivative transactions include a wide assortment of instruments, such as forwards, futures and options. Derivatives areconsidered to be part of the investment process. The use of derivatives is an essential part of the Fund’s portfoliomanagement. Derivatives are not managed in isolation. Consequently, the use of derivatives is multifaceted and includes:

Derivative financial instruments

Net assets attributable to unitholders (continued)


The Fund manages its net assets attributable to unitholders as capital, notwithstanding net assets attributable tounitholders are classified as a liability. The amount of net assets attributable to unitholders can change significantly on adaily basis as the Fund is subject to daily applications and redemptions at the discretion of unitholders.

In the normal course of business the Fund enters into transactions in various derivative financial instruments with certainrisks. A derivative is a financial instrument or other contract which is settled at a future date and whose value changes inresponse to the change in a specified interest rate, financial instrument price, commodity price, foreign exchange rate,index of prices or rates, credit rating or credit index or other variable.


Derivative financial instruments require no initial net investment or an initial net investment that is smaller than would berequired for other types of contracts that would be expected to have a similar response to changes in market factors.

23

-

The Fund holds the following derivative instruments:

(a) Futures

The Fund’s derivative financial instruments at year end are detailed below:

Contract/notional Assets Liabilities

30 June 2017 $'000 $'000 $'000

SPI Futures 3,672 4 -

Contract/notional Assets Liabilities

30 June 2016 $'000 $'000 $'000

SPI Futures 1,165 9 -

An overview of the risk exposure relating to derivatives is included in Note 3.

adjusting asset exposures within the parameters set in the investment strategy, and adjusting the duration of fixedinterest portfolios or the weighted average maturity of cash portfolios.

While derivatives are used for trading purposes, they are not used to gear (leverage) a portfolio. Gearing a portfolio wouldoccur if the level of exposure to the markets exceeds the underlying value of the Fund.

Fair Values

Fair Values

Futures are contractual obligations to buy or sell financial instruments on a future date at a specified price established in anorganised market. The futures contracts are collateralised by cash or marketable securities. Changes in futures contracts’values are usually settled net daily with the exchange. Futures are contractual obligations to receive or pay a net amountbased on changes in Share Price Index (SPI) futures at a future date at a specified price, established in an organisedfinancial market.

23

15

Mr W EarnshawMr S Martin Mr I MacounMr A IhlenfeldtMr B Machen

Mr G HoldingMs K YouhannaMr S Jordan

Manager's fees and other transactions

Key management personnel compensation


Key management personnel

Key management personnel includes persons who were directors of Solaris Investment Management Limited (investmentmanager) during the year or since the end of the year and up to the date of this report.

Parties related to the Fund (including Channel Investment Management Limited, its related parties and other schemesmanaged by Channel Investments Management Limited), did not hold any units in the Fund for the year ended 30 June2017.

Related party transactions


The Responsible Entity of the Solaris Core Australian Equity Fund is Channel Investment Management Limited. SolarisInvestment Management Limited acts as investment manager of the Fund.

Key management personnel also includes persons who were directors of Channel Investment Management Limited at anytime during the year or since the end of the year and up to the date of this report.

Responsible Entity

Directors

24

Key management personnel loan disclosures

Other transactions within the Fund

Key management personnel are paid by Channel Investment Management Limited. Payments made from the Fund toChannel Investment Management Limited do not include any amounts directly attributable to the compensation of keymanagement personnel.

Apart from those details disclosed in this note, no key management personnel of the Responsible Entity have entered into amaterial contract with the Fund during the financial year and there were no material contracts involving directors’ interestsexisting at year end.

The Fund has not made, guaranteed or secured, directly or indirectly, any loans to the key management personnel or their personally related entities at any time during the reporting year.

24

16 Reconciliation of net profit to net cash outflow fr om operating activities


2017 2016$'000 $'000

(a) Reconciliation of net profit to net cash outflow fr om operating activitiesNet profit/(loss) for the year - - (Increase)/decrease in net assets attributable to unitholders 5,841 (1,016) Proceeds from sale of financial instruments held at fair value through profit or loss 25,535 21,777 Purchase of financial instruments held at fair value through profit or loss (35,938) (20,789) Net losses/(gains) on financial instruments held at fair value through profit or loss (6,133) 1,058 Distributions to unitholders 3,391 2,329 Net change in receivables and accrued income (12) (114) Net cash inflow/(outflow) from operating activities (7,316) 3,245

(b) Components of cash and cash equivalents

Cash and cash equivalents 4,037 846 Closing balance 4,037 846

(c) Non-cash financing and investing activities

9 - 9 -

17

Cash as at the end of the financial year as shown in the statement of cash flows is reconciled to the statement of financial position as follows:

There have been no significant events that have occurred since the end of the reporting year which would impact on thefinancial position of the Fund disclosed in the statement of financial position as at 30 June 2017 or on the results and cash

During the year, the following distribution payments were satisfied by the issue ofunits under the distribution reinvestment plan


Events occurring after the reporting period


25

18

financial position of the Fund disclosed in the statement of financial position as at 30 June 2017 or on the results and cashflows of the Fund for the year ended on that date. The Fund continued to invest funds in accordance with the provisions ofthe Fund Constitution.

Contingent assets and liabilities and commitments

There are no outstanding contingent assets and liabilities or commitments as at 30 June 2017 and 30 June 2016.

25

Directors' declaration

In the opinion of the directors of the Responsible Entity:

(a)

(i)

(ii)

(b)

This declaration is made in accordance with a resolution of the directors.

Mr G HoldingDirectorChannel Investment Management Limited

Note 2(a) confirms that the financial statements also comply with International Financial Reporting Standards as issued bythe International Accounting Standards Board.

Directors' declaration

there are reasonable grounds to believe that the Fund will be able to pay its debts as and when they become due andpayable.

complying with Australian Accounting Standards, the Corporations Regulations 2001 and other mandatoryprofessional reporting requirements; and

giving a true and fair view of the Fund’s financial position as at 30 June 2017 and of its performance for thefinancial year, ended on that date; and

the financial statements and notes set out on pages 5 to 25 are in accordance with the Corporations Act 2001 , including:



Brisbane19 September 2017

26

Independent auditor’s report To the unitholders of Solaris Australian Equity Fund (Total Return)

Our opinion In our opinion:

The accompanying financial report of Solaris Australian Equity Fund (Total Return) (the Registered Scheme) is in accordance with the Corporations Act 2001, including:

(a) giving a true and fair view of the Registered Scheme's financial position as at 30 June 2017 and of its financial performance for the year then ended

(b) complying with Australian Accounting Standards and the Corporations Regulations 2001.

What we have audited The financial report comprises:

• the statement of financial position as at 30 June 2017

• the statement of comprehensive income for the year then ended

• the statement of changes in equity for the year then ended

• the statement of cash flows for the year then ended

• the notes to the financial statements, which include a summary of significant accounting policies

• the directors of the Responsible Entity’s declaration.

Basis for opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial report section of our report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence We are independent of the Registered Scheme in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

Responsibilities of the directors of the Responsible Entity for the financial report The directors of the Responsible Entity of the Registered Scheme are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and Corporations Act 2001 and for such internal control as the directors of the Responsible Entity

PricewaterhouseCoopers, ABN 52 780 433 757 480 Queen Street, BRISBANE QLD 4000, GPO Box 150, BRISBANE QLD 4001 T: +61 7 3257 5000, F: +61 7 3257 5999, www.pwc.com.au

Liability limited by a scheme approved under Professional Standards Legislation.

determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

In preparing the financial report, the directors of the Responsible Entity are responsible for assessing the ability of the Registered Scheme to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors of the Responsible Entity either intend to liquidate the Registered Scheme or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial report.

A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance Standards Board website at: http://www.auasb.gov.au/auditors_responsibilities/ar4.pdf. This description forms part of our auditor's report.

PricewaterhouseCoopers

Ben Woodbridge Brisbane Partner 19 September 2017

http://www.auasb.gov.au/auditors_responsibilities/ar4.pdf

solaris australian equity fund (total...

Documents