OneAnswer Investment Funds

Transcription

1 OneAnswer Investment Funds Single-Asset Class INVESTMENT STATEMENT 19 SEPTEMBER 2014

2 Important information (The information in this section is required under the Securities Act 1978.) Investment decisions are very important. They often have long-term consequences. Read all documents carefully. Ask questions. Seek advice before committing yourself. Choosing an investment When deciding whether to invest, consider carefully the answers to the following questions that can be found on the pages noted below: What sort of investment is this? 20 Who is involved in providing it for me? 32 How much do I pay? 23 What are the charges? 30 What returns will I get? 21 What are my risks? 24 Can the investment be altered? 29 How do I cash in my investment? 28 Who do I contact with inquiries about my investment? 49 Is there anyone to whom I can complain if I have problems with the investment? 49 What other information can I obtain about this investment? 33 In addition to the information in this document, important information can be found in the current registered prospectus for the investment. You are entitled to a copy of that prospectus on request. The Financial Markets Authority regulates conduct in financial markets The Financial Markets Authority regulates conduct in New Zealand s financial markets. The Financial Markets Authority s main objective is to promote and facilitate the development of fair, efficient, and transparent financial markets. Financial advisers can help you make investment decisions Using a financial adviser cannot prevent you from losing money, but it should be able to help you make better investment decisions. Financial advisers are regulated by the Financial Markets Authority to varying levels, depending on the type of adviser and the nature of the services they provide. Some financial advisers are only allowed to provide advice on a limited range of products. When seeking or receiving financial advice, you should check: the type of adviser you are dealing with the services the adviser can provide you with the products the adviser can advise you on. A financial adviser who provides you with personalised financial adviser services may be required to give you a disclosure statement covering these and other matters. You should ask your adviser about how he or she is paid and any conflicts of interest he or she may have. Financial advisers must have a complaints process in place and they, or the financial services provider they work for, must belong to a dispute resolution scheme if they provide services to retail clients. So if there is a dispute over an investment, you can ask someone independent to resolve it. Most financial advisers, or the financial services provider they work for, must also be registered on the financial service providers register. You can search for information about registered financial service providers at You can also complain to the Financial Markets Authority if you have concerns about the behaviour of a financial adviser. For more information about investing, go to This is an investment statement for the OneAnswer Investment Funds (single-asset class) for the purposes of the Securities Act The information in this investment statement was correct as at 19 September 2014, the date on which this investment statement was issued. The OneAnswer Investment Funds (single-asset class) are offered and managed by ANZ New Zealand Investments Limited. Your investment with the OneAnswer Investment Funds (single-asset class) is not guaranteed by ANZ Bank New Zealand Limited, Australia and New Zealand Banking Group Limited (together, ANZ Group ), The New Zealand Guardian Trust Company Limited, any of their directors, or any other person.

3 Welcome to the OneAnswer Investment Funds This investment statement explains the choices available to you. Making the right decisions now could help you achieve your financial goals. What s in this investment statement? Overview Pages 2 to 5 Key terms Page 6 The Funds Pages 7 to 18 More information Pages 19 to 33 Forms Pages 35 to 48

4 2 An overview of the OneAnswer Investment Funds What are the Funds? These OneAnswer Investment Funds are a selection of investment funds targeting specific asset classes. The Funds: are managed by carefully selected investment managers provide you with the ability to build your own investment portfolio. What are the main benefits? This range of Funds allows you to build, customise, and add to your investment portfolio. You also benefit from flexible investment and withdrawal options that allow you to choose: which Fund your money is invested in how much, and when to, invest when to withdraw your money. The Funds are tax efficient The Funds are tax efficient, as each Fund is a Portfolio Investment Entity (PIE). This means the maximum tax rate is 28%. See Tax and your returns on page 21 for more information. You can make regular or lump sum investments You have two investment options (although there are minimum payment amounts that apply): Regular payments You can stop or start regular payments whenever you wish. Lump sum payments You can make a lump sum payment at any time. See How much do I pay? on page 23 for more information. You can withdraw at any time Withdrawing is simple you decide when to take money out of your Fund. You can also set up a regular withdrawal. There is no minimum or maximum investment period. There are minimum withdrawal amounts. See You can make a withdrawal on page 27 for more information. You decide which Funds to invest in You can choose the combination of Funds that is best suited to you. See Why invest with the OneAnswer Investment Funds? on page 5 for more information. Who are the underlying investment managers? ANZ Investments Arnhem Investment Management CBRE Clarion The Franklin Equity Group ANZ Investments manages the cash, fixed interest, property and share assets. We look for high-quality assets with a sustainable return profile at the right price. Arnhem Investment Management Pty Limited (Arnhem), a delegate of BNP Paribas Investment Partners (Australia) Limited, manages share assets for the ANZ Wholesale Australian Share Fund. Arnhem aims to invest in companies with above-average, sustainable earnings growth. CBRE Clarion Securities LLC (CBRE Clarion) manages international listed property assets for the ANZ Wholesale International Property Securities Fund (ex Aus.). CBRE Clarion seeks to construct a well-diversified portfolio of listed property assets. The Franklin Equity Group (Franklin), a part of Franklin Templeton Investments, manages share assets for the ANZ Wholesale International Share No. 1 Fund. Franklin aims to invest in quality companies with the potential to produce sustainable earnings and cash flow growth.

5 3 What are the fees? A Fund fee is charged to each Fund per year (ranging from 0.80% to 1.40% of the net assets of a Fund, depending on the Fund you choose). See What are the charges? on page 29 for more information. Investing involves risks Like any investment, investing in the Funds involves taking some risk. The risks mean that: the value of your investment might go up and down over time your return could be less than you expect you might lose some or all of your investment. The level of risk will vary depending on the Fund (or combination of Funds) you invest in. You need to decide how these risks apply to your personal financial circumstances. We recommend that you talk to your authorised financial adviser about the investment options available to you. See What are my risks? on page 24 for more information. Your investment is not guaranteed Your investment in the Funds is not guaranteed by anyone. How do you join? It s easy to join the Funds. All you need to do is: 1. read the information in this investment statement 2. complete and send us an Application Form. You can change your Fund choice at any time. See Can the investment be altered? on page 28 for more information. If you have questions If you still have questions about the Funds after reading this investment statement, contact your authorised financial adviser or contact us through: investments.anz.co.nz service@anzinvestments.co.nz LSV Asset Management MFS Institutional Advisors Pomona Australia Vanguard Investments Australia Vontobel LSV Asset Management (LSV) manages international share assets for the ANZ Wholesale International Share No. 3 Fund. LSV aims to invest in out-of-favour or undervalued stocks that have the potential for near-term appreciation. MFS Institutional Advisors Inc. (MFSI) manages international share assets for the ANZ Wholesale International Share No. 2 Fund. MFSI aims to invest in quality companies with sustainable, above-average growth and returns. Pomona Australia Pty Limited (Pomona) is the manager of the P.A. Private Capital Fund No. 3. Pomona specialises in private equity investments. Vanguard Investments Australia Limited (Vanguard) manages a global portfolio of fixed interest assets issued by governments for the ANZ Wholesale International Sovereign Fund. Vanguard also manages a global portfolio of credit securities for the ANZ Wholesale International Credit Fund. Vontobel Asset Management Inc (Vontobel) manages the assets for the ANZ Wholesale International Share No. 4 Fund. Vontobel aims to invest in sensibly priced high quality companies that can grow earnings faster than the market on a sustainable basis.

6 4 Tailor your investment portfolio With OneAnswer Investment Funds you can choose from one or more of eight single-asset-class Funds. The Funds offer you the ability to tailor your investment portfolio by choosing a level of risk and return that suits you. This gives you more control over how your savings are invested.

7 5 Why invest with the OneAnswer Investment Funds? You re in control You, with your authorised financial adviser, decide which Fund or Funds to invest in, and how much to invest in each Fund. Build your own investment portfolio You, with your authorised financial adviser, can create a personalised portfolio to match your financial requirements. The Funds can: be your total investment solution help you change exposure to an asset class. Access to specialist investment managers The assets of the underlying funds are managed by us or by other investment managers we ve carefully selected. What are the asset classes? By investing in one (or more) of the Funds, you can target: Fixed interest assets: securities issued by entities such as governments, corporations, local authorities, and banks (called issuers). The issuer generally pays a set (or fixed) interest rate for a set period of time Share assets: part-ownership of a company or similar entity. Share assets include units, shares, or other equity securities. Shareholders share any profits or losses of the relevant entity Listed property assets: shares or units in listed property trusts or companies. Those trusts or companies own or invest directly in commercial property, buildings or land (including ports, airports, toll roads, utility networks and retirement villages). Keep informed with our monthly fact sheets You can find up-to-date information about the Funds in our monthly fact sheets. These are available at investments.anz.co.nz and contain information on the most up-to-date: performance investments and asset class information current underlying investment managers. An award-winning investment manager The Funds are managed by ANZ Investments, ANZ s award-winning fund manager. We have an outstanding record of investment performance in New Zealand and are the proud holder of the: 2013 FundSource Fund Manager of the Year award 2013 FundSource KiwiSaver Manager of the Year award 2013 FundSource Fund Manager of the Year award NZ Property 2013 FundSource Fund Manager of the Year award International Equity See investments.anz.co.nz/awards for our full awards history.

8 6 Terms used in this investment statement ANZ: ANZ Bank New Zealand Limited. ANZ Group: ANZ, Australia and New Zealand Banking Group Limited, and their subsidiaries including ANZ Investments. ANZ Investments: ANZ New Zealand Investments Limited. asset class: a group of assets with the same or similar features and behaviours. The main asset classes we invest in are: cash, fixed interest, listed property and listed property related assets, and shares. The Balanced Fund may also invest in alternative assets. asset class mix: the mix of asset classes within a Fund, expressed as a percentage based on the market value of the assets in each class. Market movements will change the value of assets and therefore the actual asset class mix. authorised financial adviser: a financial adviser who meets legal requirements (qualification and professional standards) for giving personalised financial advice about financial products including unit trusts, and who has been authorised by the Financial Markets Authority. Funds: the OneAnswer Investment Funds (single-asset class), which are made up of nine different funds (referred to individually in this investment statement as a Fund). Each Fund is a unit trust established under the Unit Trusts Act 1960 and holds a pool of money made up of investments from a number of investors. The money is used to invest in assets, with the aim of producing capital gains and/or income for the Fund. investment account: an account within the Funds that is established in your name. investment performance: the gains or losses made when the assets in which a Fund invests change in value and/or earn income. Manager: ANZ New Zealand Investments Limited, also referred to as we, our, us or ANZ Investments is the company that administers the Funds, and selects and manages its investments. ANZ Investments is a wholly owned subsidiary of ANZ Bank New Zealand Limited, which is part of ANZ Group. market: in financial terms, a broad term describing all possible buyers and sellers of all available financial investments or investment products. prescribed investor rate (PIR): the investor s tax rate for PIE income, which is the rate a PIE uses to calculate and pay tax on that investor s taxable income. return: the total amount that you receive when you withdraw (in full or in part) from the Funds. risk: the chance that an outcome, for example the change in value or income received from an investment, will be different than expected. risk/return profile: the level of probable risk and level of expected investment performance for a particular investment, asset class, or fund. statement of investment policy and objectives: the document that sets our investment aims for each Fund, and the rules for how we invest the assets of each Fund. Trust Deed: the agreement between the Trustee and the Manager that records each party s rights and responsibilities, and requirements for how the Funds will be managed. By investing in the Funds you agree to be bound by the terms of the Trust Deed and have the rights set out within it. Trustee: currently The New Zealand Guardian Trust Company Limited. The Trustee is independent of the Manager, and supervises how the Manager runs the Funds for the benefit of you and other investors. underlying investment manager: an investment manager which selects the assets of an underlying fund. In our role as manager of the underlying funds, we can appoint external investment managers to select some or all of the assets of the underlying funds. unit: units in any and each of the Funds. You receive units each time money is paid into your investment account. The price of each unit you receive depends on the value of the relevant Fund at the time you invest. you: any existing, or potential investor in the Funds. For an investor or potential investor aged 17 and under, this also includes parents or guardians. market movements: changes in the overall value of assets traded in a market. Portfolio Investment Entity (PIE): a company, superannuation fund, unit trust, or group investment fund registered with Inland Revenue to allow tax on investment income at the prescribed investor rate of its investors, rather than at its own tax rate. PIEs also have different rules about what is, and isn t, taxable. See the prospectus for the meanings of other financial and legal terms.

9 7 The single-asset-class Funds Fixed interest assets New Zealand Fixed Interest Fund 8 International Fixed Interest Fund 9 Listed property assets Property Securities Fund 10 International Property Fund 11 Share assets New Zealand Share Fund 12 Equity Selection Fund 13 Australian Share Fund 14 International Share Fund 15 About the following Fund pages The following Fund pages are designed to help you understand the important characteristics of the single-asset-class Funds. When assessing this information, it is important to understand that: past performance does not indicate future performance the actual performance any given investor realises will depend on many things, is not guaranteed, and may be negative as well as positive unless otherwise indicated, performance is shown after fees and expenses but before tax no one guarantees, either partially or fully, the value or performance of the Funds, and the Best year and Worst year figures are from the launch date of each Fund and for financial years ending 31 March.

10 8 New Zealand Fixed Interest Fund Launched 1 February 1991 Current Fund structure ANZ Wholesale High Grade Bond Fund Investment manager: ANZ Investments New Zealand Fixed Interest Fund ANZ Wholesale Sovereign Bond Fund ANZ Wholesale New Zealand Yield Fund Investment manager: ANZ Investments Investment manager: ANZ Investments To find out more about the underlying investment managers of the New Zealand Fixed Interest Fund, see pages 2 and 3. Fund description The New Zealand Fixed Interest Fund invests mainly in three actively managed portfolios of New Zealand fixed interest assets. It may also invest in fixed interest assets issued in New Zealand by international companies, international fixed interest assets (fully hedged back to the New Zealand dollar), and cash assets. Asset classes Benchmarks Ranges Fixed interest assets 100% 85% to 100% Cash assets 0% 0% to 15% The Fund s cash assets are generally below 1% and consist of cash in a bank account. Performance Best year Worst year 1992: 14.37% 2014: -1.90% The table below shows how the New Zealand Fixed Interest Fund has performed in each of the last five years. To 31 March Investment performance % % % % % Primary investment risks The New Zealand Fixed Interest Fund s investments are subject to the risks that: the issuer is not able to pay interest or repay principal, or the value of the investment will fall if interest rates in the market increase or the creditworthiness of the issuer decreases. Fees Fund fee 0.80% Management fee 0.55% (this is included in the Fund fee) See What are my risks? on page 24 for more information.

11 9 International Fixed Interest Fund Launched 20 September 2013 Current Fund structure ANZ Wholesale International Sovereign Fund Investment managers: Vanguard Investments Australia ANZ Investments International Fixed Interest Fund ANZ Wholesale International Credit Fund Investment managers: Vanguard Investments Australia ANZ Investments To find out more about the underlying investment managers of the International Fixed Interest Fund, see pages 2 and 3. Fund description The International Fixed Interest Fund invests mainly in an actively managed portfolio of international fixed interest assets, as well as cash assets. Performance This Fund was launched on 20 September 2013 and, therefore, has not completed a full financial year. However, from inception to 31 March 2014, the Fund's investment performance was 2.87%. Asset classes Benchmarks Ranges Fixed interest assets 100% 90% to 100% Cash assets 0% 0% to 10% The Fund mainly invests in the ANZ Wholesale International Sovereign Fund but from time to time will also invest in the ANZ Wholesale International Credit Fund. The Fund s cash assets are generally below 1% and consist of cash in a bank account. Both the ANZ Wholesale International Sovereign Fund and ANZ Wholesale International Credit Fund aim to hedge all the currency exposure from international fixed interest assets. Primary investment risks The International Fixed Interest Fund s investments are subject to the risks that: the issuer is not able to pay interest or repay principal, or the value of the investment will fall if interest rates in the market increase or the creditworthiness of the issuer decreases. See What are my risks? on page 24 for more information. Fees Fund fee 1.00% Management fee 0.75% (this is included in the Fund fee)

12 10 Property Securities Fund Launched 25 October 1994 Current Fund structure Property Securities Fund ANZ Wholesale Property Securities Fund Investment manager: ANZ Investments To find out more about the underlying investment managers of the Property Securities Fund, see pages 2 and 3. Fund description The Property Securities Fund invests mainly in an actively managed portfolio of New Zealand and Australian listed property assets. It may also invest in cash assets. Performance Best year Worst year 2007: 37.06% 2009: % Asset classes Benchmarks Ranges Listed property assets 100% 85% to 100% Cash assets 0% 0% to 15% The Fund s cash assets are generally below 1% and consist of cash in a bank account. The ANZ Wholesale Property Securities Fund aims to hedge all the currency exposure from Australian listed property assets. The table below shows how the Property Securities Fund has performed in each of the last five years. To 31 March Investment performance % % % % % Primary investment risks The Property Securities Fund s investments are subject to the risk that, if the company performs poorly, share or unit prices may drop below the purchase price or even to zero, or dividends may not be paid. Fees Fund fee 1.25% Management fee 1.00% (this is included in the Fund fee) Investments in listed property assets are considered to be more risky than investments in cash and fixed interest assets. See What are my risks? on page 24 for more information.

13 11 International Property Fund Launched 20 September 2013 Current Fund structure International Property Fund ANZ Wholesale International Property Securities Fund (ex Aus.) Investment managers: CBRE Clarion ANZ Investments To find out more about the underlying investment managers of the International Property Fund, see pages 2 and 3. Fund description The International Property Fund invests mainly in an actively managed portfolio of international listed property assets. It may also invest in cash assets. Performance This Fund was launched on 20 September 2013 and, therefore, has not completed a full financial year. However, from inception to 31 March 2014, the Fund's investment performance was 4.99%. Asset classes Benchmarks Ranges Listed property assets 100% 90% to 100% Cash assets 0% 0% to 10% The Fund s cash assets are generally below 1% and consist of cash in a bank account. The ANZ Wholesale International Property Securities Fund aims to hedge all the currency exposure from international listed property assets. Primary investment risks The International Property Fund s investments are subject to the risk that, if the company performs poorly, unit prices may drop below the purchase price or even to zero, or dividends may not be paid. Investments in listed property assets are considered to be more risky than investments in cash and fixed interest assets. See What are my risks? on page 24 for more information. Fees Fund fee 1.40% Management fee 1.15% (this is included in the Fund fee)

14 12 New Zealand Share Fund Launched 1 February 1991 Current Fund structure New Zealand Share Fund ANZ Wholesale New Zealand Share Fund Investment manager: ANZ Investments To find out more about the underlying investment managers of the New Zealand Share Fund, see pages 2 and 3. Fund description The New Zealand Share Fund invests mainly in an actively managed portfolio of New Zealand share assets. It may also invest in cash assets. Performance Best year Worst year 1994: 44.02% 2009: % Asset classes Benchmarks Ranges Share assets 100% 90% to 100% The table below shows how the New Zealand Share Fund has performed in each of the last five years. Cash assets 0% 0% to 10% To 31 March Investment performance The Fund s cash assets are generally below 1% and consist of cash in a bank account % % % % % Primary investment risks The New Zealand Share Fund s investments are subject to the risk that, if the company performs poorly, share or unit prices may drop below the purchase price or even to zero, or dividends may not be paid. Fees Fund fee 1.25% Management fee 1.00% (this is included in the Fund fee) Investments in share assets are considered to be more risky than investments in cash and fixed interest assets. See What are my risks? on page 24 for more information.

15 13 Equity Selection Fund Launched 1 July 2004 Current Fund structure Equity Selection Fund ANZ Wholesale Equity Selection Fund Investment manager: ANZ Investments To find out more about the underlying investment managers of the Equity Selection Fund, see pages 2 and 3. Fund description The Equity Selection Fund invests mainly in an actively managed portfolio of New Zealand and Australian share assets that are listed, or intend to be listed, on the New Zealand or Australian stock exchanges (or both). It may also invest in cash assets. Asset classes Benchmarks Ranges Share assets 100% 0% to 100% Cash assets 0% 0% to 100% The Equity Selection Fund s cash assets are generally below 1% and consist of cash in a bank account. However, the ANZ Wholesale Equity Selection Fund will hold cash assets if sufficient stock opportunities are not available. The ANZ Wholesale Equity Selection Fund actively hedges its currency exposure from Australian share assets, within a range of 0% to 100% and with a benchmark hedging level of 0%. Performance Best year Worst year To 31 March 2006: 34.43% 2008: % The table below shows how the Equity Selection Fund has performed in each of the last five years. Investment performance % % % % % Primary investment risks The Equity Selection Fund s investments are subject to the risk that, if the company performs poorly, share or unit prices may drop below the purchase price or even to zero, or dividends may not be paid. Investments in share assets are considered to be more risky than investments in cash and fixed interest assets. See What are my risks? on page 24 for more information. Fees Fund fee 1.35% Management fee 1.10% (this is included in the Fund fee)

16 14 Australian Share Fund Launched 26 January 1996 Current Fund structure Australian Share Fund ANZ Wholesale Australian Share Fund Investment managers: Arnhem Investment Management ANZ Investments To find out more about the underlying investment managers of the Australian Share Fund, see pages 2 and 3. Fund description The Australian Share Fund invests mainly in an actively managed portfolio of Australian share assets. It may also invest in cash assets. Performance Best year Worst year 2010: 50.02% 2003: % Asset classes Benchmarks Ranges Share assets 100% 90% to 100% Cash assets 0% 0% to 10% The Fund s cash assets are generally below 1% and consist of cash in a bank account. The ANZ Wholesale Australian Share Fund actively hedges its currency exposure from Australian share assets, within a range of 0% to 100% and with a benchmark hedging level of 0%. The table below shows how the Australian Share Fund has performed in each of the last five years. To 31 March Investment performance % % % % % Primary investment risks The Australian Share Fund s investments are subject to the risk that, if the company performs poorly, share or unit prices may drop below the purchase price or even to zero, or dividends may not be paid. Investments in share assets are considered to be more risky than investments in cash and fixed interest assets. See What are my risks? on page 24 for more information. Fees Fund fee 1.35% Management fee 1.10% (this is included in the Fund fee)

17 15 International Share Fund Launched 8 April 1997 Current Fund structure ANZ Wholesale International Share No. 1 Fund ANZ Wholesale International Share No. 2 Fund Investment managers: Franklin Equity Group ANZ Investments MFS Institutional Advisors ANZ Investments International Share Fund ANZ Wholesale International Share Fund ANZ Wholesale International Share No. 3 Fund ANZ Wholesale International Share No. 4 Fund LSV Asset Management ANZ Investments Vontobel Asset Management Inc ANZ Wholesale Cash Fund ANZ Investments To find out more about the underlying investment managers of the International Share Fund, see pages 2 and 3. Fund description The International Share Fund invests in an underlying fund which invests mainly in four actively managed portfolios of share assets listed on global sharemarkets. It may also invest in cash assets. We have selected four underlying share asset managers because they assess assets in different ways. Therefore the share assets they select are typically different to one another. We expect the four actively managed portfolios of share assets to do well over different periods and this should help smooth the performance of the ANZ Wholesale International Share Fund over the long term. Asset classes Benchmarks Ranges Share assets 100% 90% to 100% Cash assets 0% 0% to 10% The Fund s cash assets are generally below 1% and consist of cash in a bank account. The Fund actively hedges its currency exposure from international share assets, within a range of 0% to 100% and with a benchmark hedging level of 0%. Performance Best year Worst year To 31 March 2006: 46.93% 2003: % The table below shows how the International Share Fund has performed in each of the last five years. Investment performance % % % % % Note that the investment performance from 2010 to 2014 excludes Vontobel as an investment manager. Primary investment risks Fees The International Share Fund s investments are subject to the risk that, if the company performs poorly, share or unit prices may drop below the purchase price or even to zero, or dividends may not be paid. Fund fee 1.35% Management fee 1.10% (this is included in the Fund fee) Investments in share assets are considered to be more risky than investments in cash and fixed interest assets. See What are my risks? on page 24 for more information.

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19 17 The multi-asset-class Balanced Fund About the following Fund page The following Fund page is designed to help you understand the important characteristics of the Balanced Fund. When assessing this information, it is important to understand that: past performance does not indicate future performance the actual performance any given investor realises will depend on many things, is not guaranteed, and may be negative as well as positive unless otherwise indicated, performance is shown after fees and expenses but before tax no one guarantees, either partially or fully, the value or performance of the Balanced Fund, and the Best year and Worst year figures are from the launch date of the Balanced Fund and for financial years ending 31 March.

20 18 Balanced Fund Launched 22 January 1993 Current Fund structure Balanced Fund The Balanced Fund invests, or can invest, in the following funds: ANZ Wholesale Cash Fund ANZ Wholesale Sovereign Bond Fund ANZ Wholesale High Grade Bond Fund ANZ Wholesale New Zealand Yield Fund ANZ Wholesale International Sovereign Fund ANZ Wholesale International Credit Fund ANZ Wholesale Trans-Tasman Property Securities Fund ANZ Wholesale International Property Securities Fund (ex Aus) ANZ Wholesale Equity Selection Fund ANZ Wholesale Australasian Share Fund ANZ Wholesale Australian Share Fund ANZ Wholesale International Share Fund P.A. Private Capital Fund 3 (which is managed by Pomona Australia) To find out more about the underlying investment managers of the Balanced Fund, see pages 2 and 3. Fund description The Balanced Fund invests mainly in share and listed property assets, with some exposure to cash and fixed interest assets. The Fund may also invest in alternative assets. Asset classes Benchmarks Ranges Share and listed property assets Cash and fixed interest assets Alternative assets 62% 42% to 82% 38% 18% to 58% 0% 0% to 10% The Fund actively hedges its currency exposure from international share assets (being international and Australian assets) within a range of 0% to 100%. For: international share assets, the benchmark hedging level is 65% Australian share assets, the benchmark hedging level is 50%. For the Fund s other international assets: the ANZ Wholesale International Credit Fund aims to hedge all the currency exposure from international fixed interest assets the ANZ Wholesale International Sovereign Fund aims to hedge all the currency exposure from international fixed interest assets the ANZ Wholesale International Property Securities Fund (ex Aus) aims to hedge all the currency exposure from international listed property assets. Primary investment risks The Balanced Fund s investments are subject to the risks that apply to share and listed property assets. The Balanced Fund is designed to mitigate asset class risks by investing in several asset classes. See What are my risks? on page 24 for more information. Performance Best year Worst year Fees To 31 March Fund fee 1.36% 1994: 29.32% 2003: % The table below shows how the Balanced Fund has performed in each of the last five years. Investment performance % % % % % Management fee 1.15% (this is included in the Fund fee)

21 19 More information on the OneAnswer Investment Funds What s in this section? What sort of investment is this? 20 What returns will I get? 21 How much do I pay? 23 What are my risks? 24 How do I cash in my investment? 27 Can the investment be altered? 28 What are the charges? 29 Who is involved in providing it for me? 31 What other information can I obtain about this investment? 32 Financial Markets Conduct Act How will you use my information? 33 We take instructions from you 33 About the WriteMark and our awards 33

22 20 What sort of investment is this? The Funds are unit trusts The Funds are unit trusts established under the Unit Trusts Act Your investment is pooled with the investments of other investors. You receive units each time money is paid into your investment account. The price of each unit you receive depends on the value of the relevant Fund at the time you invest. The number of units you have, when multiplied by the unit price, represents the value of your investment in the Funds. You can view the latest unit prices at investments.anz.co.nz. Who can invest in the Funds? You need to be in New Zealand to invest in the Funds. There are no other eligibility requirements. How the Funds invest There are nine Funds the eight single-asset-class Funds described on pages 8 to 15, and the Balanced Fund. The Balanced Fund invests mainly in share and listed property assets, with some exposure to cash and fixed interest assets. It may also invest in alternative assets. The Funds invest in underlying funds The Funds invest in other funds (called underlying funds) that we manage. The Balanced Fund can invest in alternative assets by investing in underlying funds that are managed by other people. Each underlying fund focuses its investments on a specific asset class. The assets of these underlying funds are either selected by us or by carefully chosen external managers. Our investment managers work to benchmarks and ranges Summaries for all Funds are on pages 8 to 18. The summaries show the benchmark asset class mix for each Fund. For the Balanced Fund, we vary the asset class mix by adjusting allocations to asset classes which we believe will perform strongly or poorly in the future (this is called active asset allocation). We also vary the asset class mix to manage risk and manage cash flow. We can also adjust the level of our currency hedging for foreign share assets depending on our view of the relative strength (or weakness) of the New Zealand dollar. See the prospectus for the Funds or our statement of investment policy and objectives for further information on: the underlying funds that the Funds invest in the investment managers we have appointed to manage the assets held by the underlying funds. We, or the underlying investment managers we have appointed, use active management strategies to select the assets in which the Funds and the underlying funds invest. See Investment management risks on page 24 for more information. We don t intend for the Funds to borrow The Funds are allowed to borrow. However, apart from a shortterm overdraft facility, we don t intend for the Funds to borrow. See the prospectus for the Funds and the Trust Deed for more information on borrowing. We monitor what these external managers do and how they perform. We believe this management structure benefits you because it creates efficiencies and we have greater control of the overall cost to you. See the prospectus for further information on the underlying funds and our external managers.

23 21 What returns will I get? Your returns on your investment in the Funds will be the amount you receive when you withdraw some, or all, of your investment in the Funds. The Funds will not pay you any income or other amounts before you withdraw. Your returns depend on three factors. First, the amount you invest The amount you invest is made up of any regular payments and lump sum payments made into your investment account. Second, the costs you pay The costs you pay are: charges, see What are the charges? on page 29 for more information taxes, see Tax and your returns on this page for more information. Third, investment gains or losses Your investment can go up or down because of the investment performance of the Fund or combination of Funds you invest in. Investment performance reflects gains or losses made when the assets the Funds invest in change in value or earn income. Tax and your returns Each Fund is a Portfolio Investment Entity (PIE). This means that each Fund s taxable income is attributed to its investors based on the number of units they hold. We use your prescribed investor rate (PIR) to calculate how much tax to pay on your share of a Fund s taxable income. We pay this tax for you by cancelling units in your investment account equal to the value of the tax you need to pay. We will do this: at the end of the tax year (following 31 March) when you withdraw, transfer, or switch all of your investment from a Fund at any other time when the value of your units is insufficient to cover your accrued tax liability. In certain circumstances, a Fund receives tax refunds on your behalf. When that happens to a Fund you re invested in, we add units to your investment account equal to the value of your share of the tax refund. You need to tell us your prescribed investor rate On page 22 is a table that helps you determine your prescribed investor rate. You need to tell us your prescribed investor rate and let us know if it changes. You also need to tell us your IRD number. If you don t give us both your prescribed investor rate and IRD number, the default prescribed investor rate of 28% will apply. If you give us a prescribed investor rate that is: too low, you may need to file a tax return and be responsible for paying any additional tax, penalties, and interest too high, you will not be able to claim a refund of overpaid tax from Inland Revenue. Inland Revenue can require us to use a different prescribed investor rate if they consider that you have given us an incorrect prescribed investor rate. If you give us the correct prescribed investor rate, we will pay the correct amount of tax for you on your share of a Fund s taxable income. Most investors who are individuals (and not trustees of trusts) will not need to pay any further tax or fill out a tax return for this income. Seek advice from a tax professional to determine if you need to file a tax return and have further tax to pay. Get advice if you re uncertain How an investment in the Funds affects your tax may depend on your individual circumstances. If you re uncertain, you should consult a tax adviser. Other information about returns As Manager of the Funds, we are legally responsible for paying your Fund returns. Returns are not due on any particular date or frequency and no amount of returns are promised. We can (with the Trustee's agreement where required) defer or suspend withdrawals from a Fund for unlimited periods in certain circumstances, such as when: we receive a high level of withdrawal requests the market suffers an event with a significant undesirable effect we receive withdrawal requests that relate to more than 20% of the number of issued units in a Fund. We can defer the issue or withdrawal of units for up to 10 business days in certain circumstances, such as if we and the Trustee agree that: it is necessary or desirable to defer withdrawals to manage a Fund in a more economical manner, and it is generally not prejudicial to a Fund or investors. See the prospectus for more information about the circumstances in which we can defer or suspend withdrawals. Your share of a Fund's income will be included as income for the purposes of determining your: student loan repayment obligations ability to receive family assistance and student allowances from 1 April 2016, child support payment obligations.

24 22 If you re an individual Trustees of trusts are not individuals and should read the information under If you're not an individual below. Are you a New Zealand tax resident? Yes No Your PIR is 28% In either of the two income years before the relevant year was your taxable income $14,000 or less? No In either of the two income years before the relevant year was your taxable income $48,000 or less? No Your PIR is 28% Yes Yes Was your total taxable income and attributed PIE income (after deducting any attributed PIE loss)* in that year $48,000 or less? No Was your total taxable income and attributed PIE income (after deducting any attributed PIE loss)* in that year $70,000 or less? No Your PIR is 28% Yes Yes Your PIR is 10.5% Your PIR is 17.5% If having considered the two previous income years you qualify for two rates, your PIR is the lower rate. * Your attributed PIE income or loss for an income year is the amount of income or loss attributed to you by PIEs (including the OneAnswer Investment Funds (single-asset class)) in that income year, as recorded in the tax certificates issued by PIEs to you at the end of each income year. An income year generally runs from 1 April of the previous year to 31 March of the current year. If you re not an individual Are you a New Zealand tax resident company, unit trust, registered charity, superannuation scheme, PIE, or PIE investor proxy? Your PIR is 0%. You will need to pay any tax on your attributed PIE income yourself. Superannuation schemes that are trusts may select another PIR see below. Are you a New Zealand resident trustee (other than of a registered charity)? Seek advice from a tax professional to help you choose the PIR that best suits your beneficiaries. If you re investing with another person If you re investing jointly with another person and your prescribed investor rates are the same, tell us which investor to attribute the income to and the applicable prescribed investor rate. If your prescribed investor rates are not the same, we must attribute the income to the investor with the highest prescribed investor rate. If you do not make a selection, we attribute the income to the first-named investor at the default rate of 28%.

25 23 How much do I pay? You can invest in the Funds by: making regular payments making lump sum payments. You must do at least one of these when you first join a Fund. It will usually take up to three days for any payments to reach your account. Regular payments You can make regular fortnightly, monthly, or quarterly payments straight from your bank account. The minimum regular payment per Fund is $50. How to make regular payments If you want to make regular payments, complete the Direct Debit Form at the back of this investment statement and send it to us. You can increase, reduce (subject to the minimum payments), or suspend your regular payments at any time by sending us a new Direct Debit Form. Reducing or suspending your regular payments is also subject to maintaining a minimum investment account balance of $500. If your investment account balance falls below $500, the Manager can redeem your units. Lump sum payments If you do not want to make regular payments, you must make an initial lump sum payment of $500 or more when you first join a Fund. How to make a lump sum payment when you first join To make a lump sum payment when you first join a Fund, complete and send us the Application Form at the back of this investment statement, together with your cheque made out to Premier Nominees Limited, or arrange for a direct credit to: Premier Nominees Limited ANZ Please include the following information on the back of your cheque or in the reference fields on your direct credit: your surname your date of birth in the following format DDMMYYYY one of: your IRD number your investor number. How to make additional lump sum payments You can make additional lump sum payments of $500 or more at any time, whether or not you have a regular payment set up. For additional lump sum payments, complete and send us the Transaction Form at the back of this investment statement. Enclose your cheque or arrange for a direct credit (as described on this page). It will usually take up to three days for any payments to reach your account. For a copy of the latest investment statement, ask your authorised financial adviser or contact us.

26 24 What are my risks? The Funds are investments. Like any investment, they involve taking some risk. The level of risk will vary depending on the Fund you are invested in, as each Fund is exposed to different levels and types of risk. You need to decide how these risks apply to your personal circumstances. In very general terms: if you re seeking higher returns, you need to be willing to accept more risk if you re seeking lower risk, you need to be willing to accept lower returns. In this section, we discuss the most significant risks that apply to an investment in the Funds. These (and other) risks may mean you get back less from your investment in the Funds than you hoped for, and it is also possible that you might not receive back the full amount you invested in the Funds. We decide which risks are significant by thinking about how likely the unwanted event is and what effect it might have if it happens. You should consider the information set out in this section and the prospectus, and talk to an authorised financial adviser if you need more information. See the prospectus for the Funds for more information about risks. Understanding the risks of the Fund you re invested in For the Funds, we believe that the most significant risks will usually fall into the following broad categories: asset class risks risks from the asset class or classes a Fund invests in investment management risks risks that arise because of the way we manage the Funds general risks risks that apply to any investment in the Funds. We discuss these broad risk categories, and how we mitigate them, in greater detail on pages 24 to 26. You should familiarise yourself with these risks and how they relate to the Fund, or Funds, you re invested in. Asset class risks Different asset classes have different risks Different asset classes have different levels and types of risk. For example, share and listed property assets are considered to be more risky than cash and fixed interest assets. These characteristics mean that Funds with larger portions invested in share and listed property assets are typically exposed to more risk than those Funds with larger portions invested in cash and fixed interest assets. The table on page 25 describes the main risks associated with the different asset classes our Funds invest in. Risks in the Balanced Fund The Balanced Fund is exposed to the risks that apply to the asset classes in which it invests, however these risks are reduced because the Balanced Fund holds: more than one type of asset class investments in many organisations investments in multiple industries and countries. The Balanced Fund invests mainly in share and listed property assets, with some exposure to cash and fixed interest assets. It may also invest in alternative assets. For the Balanced Fund, the most significant asset class risks are those that apply to share and listed property assets. By investing in the Balanced Fund, poor performance by a single asset class has less impact on your investment and, in addition, investment losses from one asset class may well be offset by investment gains from another. We try to mitigate these risks even further by varying the asset class mix for the Balanced Fund depending on how we believe each asset class is likely to perform (we call this active asset allocation). Risks in single-asset-class Funds The single-asset-class Funds are exposed to the specific risks associated with the asset class in which they invest. The singleasset-class Funds do not benefit from diversifying investments across asset classes. Poor performance within the asset class may have a significant effect on the Fund. We mitigate these risks by investing in either: a wide range of industries a large number of different companies or issuers, or for certain Funds, a range of countries. Investment management risks The way we manage the Funds gives rise to some specific risks from active management, currency rate changes, and our use of derivatives. Active management risk All of our Funds are actively managed. The aim of active management is to have better investment performance than a particular index or market. Passive management, by contrast, tries to accurately track a particular index or market. Active management risk is the risk that our Funds perform worse than the particular index or market because of poor investment decisions. With active management, we risk: choosing investments that underperform the particular index or market mistiming market changes. An active management approach can lead to better investment performance than passive management. For example, when the sharemarket has an overall fall, the investment decisions we ve made might mean our Funds do not decrease in value or decrease by less. We seek to mitigate active management risk by employing investment professionals and underlying investment managers who have successfully applied a consistent investment strategy over a number of years. See the prospectus for the Funds for more information about the key personnel and underlying investment managers involved in managing the Funds. Currency risk All of our Funds, other than the New Zealand Fixed Interest Fund and the New Zealand Share Fund, are exposed to currency risk, but the extent of each Fund s exposure varies.