ANZ Gateway Unit Trusts PDS. ANZ Gateway Unit Trusts

Transcription

1 ANZ Gateway Unit Trusts PDS ANZ Gateway Unit Trusts Product Disclosure Statement 10 March 2004

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3 Contents What are the Gateway Unit Trusts? 2 Who should invest in the Gateway Unit Trusts? 3 What are the benefits? 4 ANZ Managed Investments Limited ABN (ANZMI) is the issuer of this Product Disclosure Statement (PDS) and is the Responsible Entity of the investment funds offered through the ANZ Gateway Unit Trusts. ANZMI is a wholly owned subsidiary of ING Australia Limited ABN (ING Australia). ING Australia is 49% owned by Australia and New Zealand Banking Group Limited ABN (ANZ Group) and 51% owned by the ING Group. An investment in the ANZ Gateway Unit Trusts is neither a deposit nor a liability of ANZMI, ING Australia, ING Bank (Australia) Limited ABN (ING Bank), ING Investment Management Limited ABN (INGIM) or any other company in the ING Group (ING), or any other company in the ANZ Group. This PDS should not be used as a substitute for financial advice and you should speak to your ANZ Financial Planner before investing in the ANZ Gateway Unit Trusts. This PDS will assist you in determining whether this product is suitable for your needs. The PDS does not take into account your individual objectives, financial situations or needs. ANZ Financial Planners are representatives of ANZ Group, the holder of an Australian Financial Services Licence. The value of investments in the investment funds offered through the ANZ Gateway Unit Trusts rises and falls. Neither ANZMI or any company in the ING Group or ANZ Group guarantees investment performance or earnings or return of capital invested in the ANZ Gateway Unit Trusts unless otherwise stated. Investments in the funds can be subject to investment risk, including possible delays in repayment and loss of income and capital invested. In this PDS, the terms us, we and our refer to ANZMI. The invitation to invest in the ANZ Gateway Unit Trusts is only available to persons receiving this PDS in Australia. It is not made, directly or indirectly, to persons in any other country. ANZ Managed Investments Limited ABN Australian Financial Services Licence Number Kent Street Sydney NSW 2000 Telephone Website anz.investments@ing.com.au What are the risks? 6 What are the fees and charges? 8 Important additional disclosure items 11 What type of asset classes do managed funds invest in? 16 Which Gateway Unit Trust is right for me? 18 Who manages my money? 19 Your guide to the Gateway Unit Trusts 20 The Gateway Unit Trusts in detail 22 How will the Gateway Unit Trusts work for me? 25 What else do I need to know? 26 How do I obtain up to date information? 31 The Gateway Unit Trusts offered in this PDS are: Gateway Diversified Income Trust ARSN Gateway Australian Bond Sector Trust ARSN Gateway International Bond Sector Trust $A Hedged ARSN Gateway Diversified Income and Growth Trust ARSN Gateway Diversified Growth Trust ARSN Gateway Australian Property Securities Sector Trust ARSN Gateway Diversified Aggressive Growth Trust ARSN Gateway Australian Shares Sector Trust ARSN Gateway International Shares Sector Trust ARSN ANZ Gateway Unit Trusts PDS

4 What are the Gateway Unit Trusts? 2 ANZ Gateway Unit Trusts PDS The Gateway Unit Trusts are investment products that allow you to invest in managed funds. The Gateway Investment Philosophy lets you diversify your investment across a range of investment managers, all within one convenient investment. There are nine different investment funds to choose from. Four Gateway Diversified Trusts provide you with access to different asset types in each investment fund. Each investment fund has its own objective, investing in different proportions of asset types. The Gateway Diversified Trusts are: > Gateway Diversified Income Trust > Gateway Diversified Income and Growth Trust > Gateway Diversified Growth Trust > Gateway Diversified Aggressive Growth Trust We also offer five Gateway Sector Trusts, providing you with access to a specific type of asset. Each asset type has a different income or capital growth expectation, which also means a different risk profile. The Gateway Sector Trusts are: > Gateway Australian Bond Sector Trust > Gateway International Bond Sector Trust $A Hedged > Gateway Australian Property Securities Sector Trust > Gateway Australian Shares Sector Trust > Gateway International Shares Sector Trust

5 Who should invest in the Gateway Unit Trusts? The Gateway Unit Trusts may be suitable for people wanting to invest in managed funds over the medium to long term. You may be looking to: > generate capital growth from an investment > generate income from an investment > save towards a specific purpose, like a house, child s education or an early retirement > invest tax effectively. What is the minimum amount I need to start? 3 ANZ Gateway Unit Trusts PDS Minimum amounts Minimum initial investment Minimum additional investment Minimum balance Minimum using the regular investment plan Minimum switch $5,000 per investment fund $1,000 per investment fund $5,000 per investment fund $100 per investment fund per month $1,000 per investment fund

6 What are the benefits? 4 ANZ Gateway Unit Trusts PDS Investment strategies you can choose The Gateway Unit Trusts can be tailored to meet your needs. You can choose from a range of different investment funds. Each investment fund has a different performance objective and investment philosophy ranging from conservative to a strong growth-oriented approach. The Gateway Unit Trusts allow you to select, in any proportion, any number of investment funds to help you meet your investment needs. A detailed description of each investment fund is provided on pages 22 to 24.

7 Increase the value of your investment and earn an income The Gateway Unit Trusts make both these goals possible by giving you access to: > funds managed by a group of specialist investment managers > a broad range of investment funds > funds investing in Australia and globally > funds with different levels of risk > funds designed to grow your original investment and/or pay a regular income > funds with the potential to pay distributions, which can be received as income, or reinvested to increase your capital. Whether you are aiming to grow your money, or generate an income, this broad investment choice allows you to pursue opportunities that closely match your investment goals. Diversification Diversification means holding more than one type of investment, and can be achieved by using one, or a combination, of the following: > holding different assets like shares from different companies > investing in different asset classes such as shares, property, fixed interest > investing with several specialist investment managers with different investment styles. The Gateway Unit Trusts let you diversify across a broad range of investment funds and specialist investment managers, all within a single investment. Depending on how you diversify, underperformance in one area may be offset by positive performance in another. A flexible way to invest The Gateway Unit Trusts have competitively priced fees and allow you four free switches per year without incurring a switching fee. This helps you maximise your returns, and allows you to easily alter your strategy to keep pace with your needs, and any changes in the market. The Gateway Unit Trusts also let you establish a regular investment plan. Information about the regular investment plan can be found on page 25. Investing internationally Australia represents less than 2% of the global financial market, so investing in international asset classes, like international shares and fixed interest, gives you access to a broader range of investment opportunities. International investments can also help you to diversify, because the performance will differ to other asset classes from time to time. Tax effective investments Some asset classes offer additional benefits to investors in the form of tax effective distributions. Taxation benefits are more significant in Australian shares. If a company pays tax on profits prior to distributing them, the dividend will carry a franking credit representing the tax already paid. Such dividends are known as franked dividends. The distribution of franked dividends by the investment funds may reduce the taxation on investment earnings, improving after tax returns to investors. Your ANZ Financial Planner can tell you which investment funds are likely to distribute franking credits. 5 ANZ Gateway Unit Trusts PDS Pooled money When you invest through the Gateway Unit Trusts, your money is pooled together with other investors. This means the total pool of money to be invested is usually much larger than an individual investor could invest alone. As there is more money to invest, you are able to pursue investment opportunities that may not be available to an individual investor.

8 What are the risks? Investment risk 6 ANZ Gateway Unit Trusts PDS Investment risk means the value of your investment could fall. Rises and falls in investment values occur for a variety of reasons, and sometimes quickly. Falls in the value of your investment primarily occur when the investment fund you re invested in experiences a fall in the value of its assets. When the value of the investment fund s assets falls, so does the value of your investment. Factors that can negatively impact on your investment include: > changes in the economic and political climate > changes in government policies and laws > movements in currency markets > changes in interest rates. How we manage investment risks Investment decisions made by specialist investment managers may be subject to investment risk. However, the Gateway Investment Philosophy lets you broadly diversify your investment, which can help to reduce investment risk. Just as there is more than one asset class when it comes to investment, there are many different investment styles when it comes to investment managers. The Gateway Investment Philosophy works on the principle that a carefully selected and closely managed panel of specialist investment managers within each asset class actively reduces your risk. By diversifying across a range of investment managers, you are not dependent on the performance of one single investment manager. Other risks We are committed to giving our investors access to the best possible investment menu. In doing this, it is sometimes necessary for us to: > add, close or terminate an investment fund > change the specialist investment manager(s) > change the rules of an investment fund. How we manage other risks When changes such as these occur, we will ensure they are in the best interest of investors as a whole. Advance notice to investors in affected investment funds will be given where feasible. Otherwise, we will inform you of changes in the next regular statement, or earlier if required by law. Helping our investors reach their financial goals is always our focus. We will continue to manage the Gateway Unit Trusts in a way that maximises investment returns, but stays within defined risk levels.

9 Investing internationally Investing internationally may expose you to risks not associated with Australian investments. For example, depending on how you invest, an international investment may be affected by things like movements in local financial markets, and currency and interest rates. How we manage international risks When managing an investment fund, a fund manager may use various techniques to counter, or to take advantage of, movements in currency. For example, investment funds can be unhedged, hedged, or a fund manager may elect to actively manage currency. Unhedged 7 ANZ Gateway Unit Trusts PDS Where international assets are unhedged, currency movements will directly affect the value of your investment. For example, if the Australian dollar depreciates, then the value of your international assets will increase. However, if the Australian dollar appreciates, then the value of your international assets will decrease. Hedged When a fund manager uses hedging, they reduce some or all of the impact of currency movements. Therefore, movements in currency will not generally impact the value of your investment in a fully hedged investment fund. However, you will not gain any benefits from currency movements that would have been in your favour had the investment been unhedged. Currency within the international fixed interest portion of the diversified funds is normally fully hedged. Active currency management For international share investments, our currency manager may vary the level of hedging, depending on their investment process. As an active currency manager they attempt to reduce the impact of currency movements on international investments, or increase the investment fund s value by varying the level of hedging from time to time. Active currency management has the potential to add further value to your investment, but can also expose your investments to greater risk. Before including international investments in your investment fund, you should speak with your ANZ Financial Planner about the risks of investing internationally, and which type of investment fund is most appropriate for your circumstances.

10 What are the fees and charges? 8 ANZ Gateway Unit Trusts PDS All the fees and charges that may apply are included in this section. We will give you 30 days notice before changing any fees or charges. Table 1: Significant fees This table shows significant fees that you may be charged by the Gateway Unit Trusts. These fees may be deducted from your account balance or from the returns on your investment or from the investment fund as a whole. Information relating to taxation is set out on pages 27 to 29. Fees for particular investment funds may also appear separately. You should read all the information about fees and charges, as it is important to understand their impact on your investment in the Gateway Unit Trusts. Amount Fee Plan A Fee Plan B Significant Fees (Nil Contribution Fee Option) (Contribution Fee Option) How and when paid Establishment Fee: 0.51% p.a. of the value of Not charged. This fee is calculated monthly This is the fee to set up the account for the first on the value of your investment your account. three years. and is deducted through the sale of units from your account (Note: This fee is charged monthly. for Fee Plan A only, where the initial investment or subsequent balance is less than $300,000.) Contribution Fee: Not charged. Up to 4% This fee is deducted from any This is the fee for the initial initial, additional or regular and every subsequent investments you make under investment you make. Fee Plan B only. Withdrawal Fee: Not charged. Not charged. N/A This is the fee charged for each withdrawal you make. Termination Fee: Not charged. Not charged. N/A This is the fee when you close your account.

11 Table 1: Significant fees (continued) Amount Fee Plan A Fee Plan B Significant Fees (Nil Contribution Fee Option) (Contribution Fee Option) How and when paid Ongoing Fee: Gateway Diversified Income Trust: 1.94% p.a. This is a single fee charged for This is the total of all ongoing usto oversee the investment administration, investment Gateway Australian Bond Sector Trust: 1.94% p.a. fund s operation as well as management, expense recovery other fees and expenses and other fees charged. Gateway International Bond Sector Trust including amounts deducted A breakdown of these fees is $A Hedged: 2.15% p.a. by the specialist investment shown in the Breakdown of manager of each investment ongoing fees table on pages Gateway Diversified Income and Growth Trust: 1.93% p.a. fund to cover their fees and 10 to 11. fund expenses. This fee is Gateway Diversified Growth Trust: 1.99% p.a. deducted from the assets of each investment fund and Gateway Australian Property Securities Sector Trust: included in the unit price. 2.04% p.a. 9 ANZ Gateway Unit Trusts PDS Gateway Diversified Aggressive Growth Trust: 1.99% p.a. Gateway Australian Shares Sector Trust: 1.94% p.a. Gateway International Shares Sector Trust: 2.09% p.a. Switching Fee: Four free switches per annum then 1% per switch This fee will apply after the This is the fee charged fourth switch between the when you switch between investment funds within any investment options. 12 month period. It is charged based on the amount switched. Adviser Service Fee: Not charged. Not charged. N/A This is the fee charged by your ANZ Financial Planner for advice about your investments. (An ANZ Financial Planner may also receive other amounts known as commission: see Important additional disclosure items on pages 11 and 12.)

12 Table 2: Breakdown of ongoing fees This table contains a breakdown of the ongoing fees shown on page 9. These fees are not additional. Amount 10 ANZ Gateway Unit Trusts PDS Fee Plan A Fee Plan B Ongoing Fees (Nil Contribution Fee Option) (Contribution Fee Option) How and when paid Administration Fee: Not charged. Not charged. N/A This is the fee to cover the general administration. Investment Management Fee: Gateway Diversified Income Trust: 0.61% p.a. Deducted from the assets of This is the fee for managing the investment fund and the fund s investments. (The Gateway Australian Bond Sector Trust: 0.51% p.a. included in the unit price. amount you pay for specific investment options is shown Gateway International Bond Sector Trust on page 9.) $A Hedged: 0.62% p.a. Gateway Diversified Income and Growth Trust: 0.67% p.a. Gateway Diversified Growth Trust: 0.72% p.a. Gateway Australian Property Securities Sector Trust: 0.73% p.a. Gateway Diversified Aggressive Growth Trust: 0.74% p.a. Gateway Australian Shares Sector Trust: 0.73% p.a. Gateway International Shares Sector Trust: 0.91% p.a. Issuer Fee: Gateway Diversified Income Trust: 1.33% p.a. Deducted from the assets of This is the fee for the the investment fund and product issuer s services in Gateway Australian Bond Sector Trust: 1.43% p.a. included in the unit price. overseeing the investment fund s operations and/or for Gateway International Bond Sector Trust providing access to its $A Hedged: 1.37% p.a. investment options. Gateway Diversified Income and Growth Trust: 1.26% p.a. Gateway Diversified Growth Trust: 1.27% p.a. Gateway Australian Property Securities Sector Trust: 1.31% p.a. Gateway Diversified Aggressive Growth Trust: 1.25% p.a. Gateway Australian Shares Sector Trust: 1.21% p.a. Gateway International Shares Sector Trust: 1.18% p.a.

13 Table 2: Breakdown of ongoing fees (continued) Amount Fee Plan A Fee Plan B Ongoing Fees (Nil Contribution Fee Option) (Contribution Fee Option) How and when paid Expense Recoveries: Gateway International Bond Sector Trust $A Hedged: This fee is charged for the This is an estimate of the 0.16% p.a. Gateway International Bond out-of-pocket expenses the Sector Trust $A Hedged only. Responsible Entity is entitled All other investment funds: Nil It is deducted from the assets to recover from the investment of the investment fund and funds. included in the unit price. The figures disclosed here are current from Russell Investment Management Limited (Russell) and may be varied by Russell. Member Fee: Not charged. Not charged. N/A This is a member accountkeeping fee charged by the investment funds. 11 ANZ Gateway Unit Trusts PDS Important additional disclosure items Increases or alterations to the charges The Constitution provides that a maximum of 2.50% p.a. can be charged as the management fee for each of the Gateway Unit Trusts. However, we will advise you if we intend to increase the fees listed above. Transaction cost allowance Each investment fund incurs transaction costs when buying and selling fund assets. Transaction costs include brokerage as well as costs incurred when investing in underlying assets. These transaction costs will be deducted from the assets of the investment fund. The price at which units are issued is called the buy price and the price at which the units are withdrawn is called the sell price. The difference between the buy and sell price is called the buy/sell differential. The current buy/sell differential for the Gateway International Bond Sector Trust $A Hedged is 0.10% (0.05% buy, 0.05% sell). The buy/sell differential for the other investment funds is nil. Expenses We are entitled to be reimbursed out of each investment fund for various expenses. These expenses include legal fees, auditors and other experts fees, costs of printing and posting reports and notices to you, bank fees and the cost of convening investor meetings. These expenses are capped at 1% p.a. of the net value of each investment fund but we reserve the right to remove the cap on giving 30 days notice of such removal. Expenses are not an additional fee and are included in the fees outlined in the table on page 9. Goods and Services Tax (GST) and fees The fees detailed in this PDS take into consideration the net effect of the GST and the benefits of reduced input tax credits, unless otherwise stated. Differential fees For certain investors that the Corporations Act defines as wholesale clients, we may negotiate differential fees. Where the differential fee arrangements involve us paying rebates, the rebates will be paid from our own monies and will not affect other investors. These rebates may be taxable. You should seek your own advice as to the tax treatment of rebates.

14 Payment of commission We may pay a commission to ANZ Group for selling you this product, and these commissions are incorporated into the fees outlined in this section. These commissions are not charged directly to your account, and include GST. Please note, we will generally claim a credit from the Australian Taxation Office for the GST paid on these commissions. The commissions are as follows: 12 ANZ Gateway Unit Trusts PDS Fee Plan A Fee Plan B Initial commission 4.4% of the amount invested 4.4 % of the amount invested Ongoing commission Up to 0.55% of the account balance Up to 0.44% of the account balance In addition to any initial and ongoing commissions, we may make payments to dealer groups based on commercial arrangements. We may also make payments to dealer groups, or financial planners, to enable them to provide educational or marketing support. These payments are made by us and not charged to you, or to your investment funds. Dishonour and statement fees If the direct debit for your regular investment plan is not met, a fee of $10 may apply. If you need a replacement statement we may charge a fee of $10 per page. Charges on direct debits and credits may apply. Please check with your financial institution. Management Expense Ratios (MERs) in previous years The table below shows the actual MERs charged for each of the investment funds in the Gateway Unit Trusts over the past two years, as at 30 June. We have provided this table to show you the total cost of each investment fund in previous years (p.a.) 2002 (p.a.) Gateway Diversified Income Trust 2.23% 2.15% Gateway Australian Bond Sector Trust 2.10% 2.33% Gateway International Bond Sector Trust $A Hedged 2.99% 2.11% Gateway Diversified Income and Growth Trust 2.16% 2.08% Gateway Diversified Growth Trust 2.12% 2.16% Gateway Australian Property Securities Sector Trust 2.37% 2.69% Gateway Diversified Aggressive Growth Trust 2.27% 2.27% Gateway Australian Shares Sector Trust 2.21% 2.27% Gateway International Shares Sector Trust 2.44% 2.29%

15 Fee case studies To illustrate how ongoing fees may apply to the Gateway Unit Trusts, we have included the following case studies. These examples are simplified, and assume the investment amount does not experience any increase or decrease in value during the entire period. Normally your account balance would vary daily. The examples also assume no switches between investment funds. The establishment fee, where applicable, is included in the case studies. 13 ANZ Gateway Unit Trusts PDS

16 Case study 1 John John is using Fee Plan A (Nil Contribution Fee Option) and has a total investment portfolio balance of $20,000. John s money is invested as follows: 14 ANZ Gateway Unit Trusts PDS > $5,000 in Gateway Diversified Income Trust > $5,000 in Gateway International Bond Sector Trust $A Hedged > $5,000 in Gateway Diversified Aggressive Growth Trust > $5,000 in Gateway International Shares Sector Trust Establishment fee: There is a 0.51% p.a. establishment fee for the first three years when the account balance is less than $300,000. Total establishment fee = $ p.a. for the first three years Ongoing fee (formerly referred to as MER): Ongoing Fee Investment Fund (p.a.) Investment Fee (p.a.) Gateway Diversified Income Trust 1.94% $5,000 $97.00 Gateway International Bond Sector Trust $A Hedged 2.15% $5,000 $ Gateway Diversified Aggressive Growth Trust 1.99% $5,000 $99.50 Gateway International Shares Sector Trust 2.09% $5,000 $ Total ongoing fee $ The effective ongoing fee = $ $20,000 = 2.04% p.a. Please note: Rounding has occurred to two decimal places where applicable.

17 Case study 2 Sally Sally is using Fee Plan B (Contribution Fee Option) and has a total investment portfolio balance of $20,000. Sally s money is invested as follows: > $7,500 in Gateway Australian Bond Sector Trust > $5,000 in Gateway Diversified Growth Trust > $7,500 in Gateway Australian Property Securities Sector Trust Establishment fee: The establishment fee is not applicable for Fee Plan B. Ongoing fee (formerly referred to as MER): Ongoing Fee Investment Fund (p.a.) Investment Fee (p.a.) Gateway Australian Bond Sector Trust 1.94% $7,500 $ ANZ Gateway Unit Trusts PDS Gateway Diversified Growth Trust 1.99% $5,000 $99.50 Gateway Australian Property Securities Sector Trust 2.04% $7,500 $ Total ongoing fee $ The effective ongoing fee = $ $20,000 = 1.99% p.a. Please note: Rounding has occurred to two decimal places where applicable.

18 What type of asset classes do managed funds invest in? 16 ANZ Gateway Unit Trusts PDS A managed fund pools together the money of many individual investors to form an investment product. Specialist investment managers then invest the money on your behalf, across a wide range of asset classes. Shares Risk level high Potential return high A share (or stock) is a small piece of a company. The owner of the share has an interest in the company that issued it. Historically, the value of shares has been more volatile than the other major asset classes, and therefore they carry the most risk of capital loss on your investment. Property Risk level medium to high Potential return medium to high Can include investments in direct property, listed property trusts (LPTs) and other property securities. LPTs invest in a range of residential and commercial property, office buildings, hotels and industrial properties. What are the investment opportunities? Investing through the Gateway Unit Trusts gives you access to nine different investment funds. To assist in selecting an appropriate investment fund, or mix of funds, the investment funds have been sorted into the following risk profiles: > Conservative > Moderately conservative > Balanced > Moderately aggressive > Aggressive. Why is the minimum time horizon important? The amount of time you hold an investment can have a substantial impact on the returns you receive. As a guide only, each investment fund has a minimum time horizon. This is the minimum period of time you should consider holding your investment in a particular fund. Holding your investment for the suggested time does not guarantee a positive return, but it does make it more likely. However, if after the suggested investment time, investment markets are performing badly, you may need to hold your investment for a longer period to avoid a negative return.

19 Fixed Interest (bonds) Risk level medium to low Potential return medium to low A bond is a debt security issued by a corporation or government in return for cash from an investor. The issuer of the bond is effectively a borrower, and is required to pay interest on the loan for the life of the bond. Inflation linked bonds are fixed interest investments for which the value is indexed to inflation. Cash Risk level low Potential return low Cash is the generic term for investments that are designed to be extremely safe, and held for only a short period. An example of cash is a short-term bank deposit. Generally, cash investments do not carry a risk of losing your initial investment. 17 ANZ Gateway Unit Trusts PDS Investor risk profiles HIGH Aggressive You seek to maximise long-term returns by investing in higher risk growth assets. You accept the possibility of greater volatility and associated short-term capital losses to achieve potentially higher returns over the long term. Potential risk and return Moderately conservative Balanced You seek relatively stable returns and accept some risk through a diverse portfolio. Moderately aggressive You seek a balance of growth and defensive assets and accept the possibility of a negative return in any one year, associated with investing in growth assets. Your priority is higher long-term returns through investing in growth assets. In return for taking more risk, you accept a higher possibility of negative returns in any one year. LOW Conservative You want to maintain the capital value of your investment, and are prepared to accept lower returns for lower risk in your investments. Time Horizon This axis displays time. The further to the right an investment fund is located, the longer you may need to hold your investment to meet your investment objectives.

20 Which Gateway Unit Trust is right for me? Step 1 set your investment goals 18 ANZ Gateway Unit Trusts PDS Before selecting any investment funds, you will need to set investment goals. Your ANZ Financial Planner can assist you with this. During this process, you should consider: > the type of returns you are trying to achieve, and the level of volatility you can tolerate in order to achieve those returns > how long you intend to hold your investment. Step 2 select a profile By selecting investment funds from the risk profile that mirrors your investment goals, you are more likely to choose a fund that will help you achieve the results you want. Step 3 select investment funds Each investment fund has its own specific investment objective, strategy and focus. To help you select an appropriate fund, we have included information about each investment fund, which outlines its investment objective and strategy, and other relevant information. Depending on your specific circumstances, you may wish to invest in a mix of investment funds, or select several funds from different profiles. Step 4 speak to your ANZ Financial Planner

21 Who manages my money? ANZMI manages the Gateway Investment Philosophy to focus on controlling risk while providing consistent investment performance and competitive returns over time. At the heart of the Gateway Investment Philosophy is a number of the world s leading specialist investment managers who are carefully selected for their expertise in a particular asset class. Each investment manager has a distinct investment style, a proven investment process and a strong track record of performance. To achieve its multi manager philosophy, your investments are invested through a range of wholesale investment funds. These investment funds are not generally available to retail investors, but can be accessed by investing with the Gateway Unit Trusts. We believe that the diversification and blending of investment manager styles is just as important as the decision to diversify an investment portfolio across different asset classes. By investing in a range of asset classes, managed by a range of managers with different investment styles, the Gateway Investment Philosophy allows you to achieve diversification with a single investment. The Gateway Investment Philosophy diversifies your money by investing in a range of asset classes. These include: > Cash (including bank bills and deposits) > Australian and international fixed interest (including securities issued by Commonwealth and State Government bodies, banks and other institutions) > Property securities > Australian shares > International shares (including currency management). ANZMI has appointed Optimix Investment Management Limited ABN (Optimix) as the investment manager for the following Gateway Unit Trusts: > Gateway Diversified Income Trust > Gateway Australian Bond Sector Trust > Gateway Diversified Income and Growth Trust > Gateway Diversified Growth Trust > Gateway Australian Property Securities Sector Trust > Gateway Diversified Aggressive Growth Trust > Gateway Australian Shares Sector Trust > Gateway International Shares Sector Trust. Optimix is a specialist provider of Manage the Managers investment funds, with over a decade of proven experience. Optimix carefully selects a number of complementary investment managers to manage each asset class in the investment funds. Optimix is a subsidiary of ING Australia. ING Australia is one of Australia s leading fund managers and life insurers with approximately $38 billion assets under management and 2,000 staff. ING Australia is a joint venture between the global ING Group, which owns 51%, and one of Australia s major banks, ANZ, which owns 49%. ANZ Group can provide you with professional financial advice and access to a range of products and services. The Gateway International Bond Sector Trust $A Hedged is managed by Russell Investment Management Limited ABN (Russell), a subsidiary of Frank Russell Company through Frank Russell Company Pty Ltd ABN ANZ Gateway Unit Trusts PDS Specialist investment managers are regularly reviewed and may be appointed or removed by us at any time without notice to you.

22 Your guide to the Gateway Unit Trusts What is an investment objective? 20 ANZ Gateway Unit Trusts PDS The investment objective identifies what return the manager of the investment fund (Fund) aims to achieve for investors. What is the minimum time horizon? This is the suggested minimum period of time you should consider holding your investment in the investment fund. This is a guide only. What is the size of the fund? This is the total amount of money the Gateway Unit Trust holds within this investment fund. What is the commencement date? This is the date the investment fund started. What is the asset allocation? The asset allocation displays the type of assets the investment fund invests in, and in what proportions. The benchmark is the neutral allocation for each asset class. The range indicates the minimum and maximum allowable allocations for each asset class. The investment manager may vary the investment fund s asset allocation within the allowable ranges in order to position the investment fund to benefit from prevailing market conditions. Under certain circumstances, the asset allocation for a particular asset class may move outside its range. Asset ranges may be altered without prior notice to you. In some cases, an investment fund may only have either a benchmark or a range, and not both. Investments can go up and down. Past performance is not indicative of future performance.

23 Risk profile Investment objective Investment strategy Gateway Diversified Income Trust Moderately Conservative To provide income and relatively stable returns with some risk associated with investing in growth assets. Some of the income may be tax effective. The Fund aims to achieve its investment objective by investing in a variety of Australian and international income bearing securities, Australian listed property securities, and Australian and international shares, using the Gateway Investment Philosophy. SAMPLE What is the investment strategy? The investment strategy describes how the manager of the Fund aims to achieve its objective. An investment strategy usually involves a description of the relevant asset classes and the investment process, or combination of processes, the fund manager will use to manage the Fund. What is performance? The performance of an investment fund is the percentage change in the value of the assets of the investment fund over a period of time, after allowing for cash flows. The assets of the investment fund are valued daily and a daily unit price is calculated by dividing this valuation by the number of units on issue. Average annual returns are calculated by compounding the monthly returns and expressing them on a per annum basis. Please note that the performance figures shown are calculated using exit prices, assume all distributions are re-invested and are after the deduction of fees, charges and taxes. The management fee used in the calculations assumes the highest contribution fee, management fee and ANZ Financial Planner commission(s). 21 ANZ Gateway Unit Trusts PDS Minimum time horizon Distribution frequency Fund size as at 31 Dec 2003 Commencement date Asset allocation Cash and Australian fixed interest Inflation linked bonds International fixed interest Property securities Australian shares International shares Performance as at 31 Dec 2003 (Net of ongoing fees) Distribution Growth Total 3-5 years Quarterly $6.97 million 10 May 1999 Benchmark (%) Range (%) year 3 years 5 years % % p.a. % p.a n/a n/a n/a You can obtain up to date performance information by: > asking your ANZ Financial Planner > calling Customer Services on > visiting

24 The Gateway Unit Trusts in detail Gateway Diversified Income Trust Gateway Australian Bond Sector Trust Gateway International Bond Sector Trust $A Hedged 22 ANZ Gateway Unit Trusts PDS Risk profile Investment objective Investment strategy Moderately Conservative To provide income and relatively stable returns with some risk associated with investing in growth assets. Some of the income may be tax effective. The Fund aims to achieve its investment objective by investing in a variety of Australian and international income bearing securities, Australian listed property securities, and Australian and international shares, using the Gateway Investment Philosophy. Moderately Conservative To provide income and long-term returns by investing in a diversified portfolio of fixed interest securities. The Fund aims to achieve its investment objective by investing in Australian fixed interest securities using the Gateway Investment Philosophy. The Fund may invest in fixed income and money market securities. Investments may include bank deposits, floating rate notes, mortgage-backed securities and derivatives. Investments may also include emerging market debt, high yield bonds and asset-backed securities. Moderately Conservative To provide long-term returns through exposure to the performance of international fixed income securities. The Fund aims to achieve its investment objective by investing in international fixed interest securities using the Gateway Investment Philosophy. The Fund will predominantly be exposed to government issued securities. The Fund may invest in semigovernment, superannuation, corporate and asset-backed securities. Minimum time horizon 3-5 years 3-5 years 3-5 years Distribution frequency Quarterly Quarterly Quarterly Fund size as at 31 Dec 2003 $6.97 million $1.34 million $0.06 million Commencement date 10 May May May 1999 Asset allocation Benchmark (%) Range (%) Benchmark (%) Range (%) Benchmark (%) Range (%) Cash and Australian fixed interest Inflation linked bonds International fixed interest Property securities Australian shares International shares Performance as at 31 Dec 2003 (Net of ongoing fees) 1 year 3 years 5 years % % p.a. % p.a. 1 year 3 years 5 years % % p.a. % p.a. 1 year 3 years 5 years % % p.a. % p.a. Distribution Growth Total n/a n/a n/a n/a n/a n/a n/a n/a n/a Note: On 1 December 2003, Optimix was appointed as the investment manager for the Gateway Unit Trusts, except for the Gateway International Bond Sector Trust $A Hedged, which is managed by Russell.

25 Gateway Diversified Income and Growth Trust Gateway Diversified Growth Trust Gateway Australian Property Securities Sector Trust Risk profile Investment objective Investment strategy Balanced To provide income and high medium-term returns with high levels of risk associated with a diversified portfolio which includes growth assets. Some of the income may be tax effective. The Fund aims to achieve its investment objective by investing in a variety of Australian and international income bearing securities, Australian listed property securities, and Australian and international shares using the Gateway Investment Philosophy. Moderately Aggressive To provide income and higher long-term returns with higher levels of risk associated with greater allocation to growth assets. Some of the income may be tax effective. The Fund aims to achieve its investment objective by investing in a variety of Australian and international income bearing securities, Australian listed property securities, and Australian and international shares using the Gateway Investment Philosophy. Aggressive To provide income and long-term returns through exposure to the performance of property securities. Some of the income may be tax effective. The Fund aims to achieve its investment objective by primarily investing in property trusts listed or expected to be listed on the Australian Stock Exchange, using the Gateway Investment Philosophy. 23 ANZ Gateway Unit Trusts PDS Minimum time horizon 5 years 5 years 5 years Distribution frequency Quarterly Quarterly Quarterly Fund size as at 31 Dec 2003 $17.34 million $14.24 million $2.56 million Commencement date 10 May May May 1999 Asset allocation Benchmark (%) Range (%) Benchmark (%) Range (%) Benchmark (%) Range (%) Cash and Australian fixed interest Inflation linked bonds International fixed interest Property securities Australian shares International shares Performance as at 31 Dec 2003 (Net of ongoing fees) 1 year 3 years 5 years % % p.a. % p.a. 1 year 3 years 5 years % % p.a. % p.a. 1 year 3 years 5 years % % p.a. % p.a. Distribution Growth Total n/a n/a n/a n/a n/a n/a n/a n/a n/a Note: On 1 December 2003, Optimix was appointed as the investment manager for the Gateway Unit Trusts, except for the Gateway International Bond Sector Trust $A Hedged, which is managed by Russell.

26 Gateway Diversified Aggressive Growth Trust Gateway Australian Shares Sector Trust Gateway International Shares Sector Trust 24 ANZ Gateway Unit Trusts PDS Risk profile Investment objective Investment strategy Aggressive To provide income and maximize long-term returns with high levels of risk associated with a high allocation to growth assets. Some of the income may be tax effective. The Fund aims to achieve its investment objective by investing in a variety of Australian and international income bearing securities, Australian listed property securities, and Australian and international shares using the Gateway Investment Philosophy. Aggressive To provide long-term returns by investing in a highly diversified portfolio of Australian shares. Some of the income may be tax effective. The Fund aims to achieve its investment objective by investing in a diverse portfolio of Australian shares, listed or expected to be listed on the Australian Stock Exchange, using the Gateway Investment Philosophy. The Fund may use derivatives, including share price index futures, to enhance returns and control risk. Aggressive To provide long-term returns by investing in a highly diversified portfolio of international shares. The Fund aims to achieve its investment objective by investing in a diverse portfolio of international shares, with a primary focus on stocks listed in international markets, using the Gateway Investment Philosophy. The Fund may ultimately invest in futures, options, foreign exchange contracts and cash equivalents and other securities listed and unlisted to provide exposure to the performance of international equities. The Fund may also hold securities in emerging markets. Minimum time horizon 5 years 5 years 5 years Distribution frequency Quarterly Quarterly Quarterly Fund size as at 31 Dec 2003 $9.71 million $7.26 million $10.38 million Commencement date 10 May May May 1999 Asset allocation Benchmark (%) Range (%) Benchmark (%) Range (%) Benchmark (%) Range (%) Cash and Australian fixed interest Inflation linked bonds International fixed interest Property securities Australian shares International shares Performance as at 31 Dec 2003 (Net of ongoing fees) 1 year 3 years 5 years % % p.a. % p.a. 1 year 3 years 5 years % % p.a. % p.a. 1 year 3 years 5 years % % p.a. % p.a. Distribution Growth Total n/a n/a n/a n/a n/a n/a n/a n/a n/a Note: On 1 December 2003, Optimix was appointed as the investment manager for the Gateway Unit Trusts, except for the Gateway International Bond Sector Trust $A Hedged, which is managed by Russell.

27 How will the Gateway Unit Trusts work for me? How do I invest? You can invest in a Gateway Unit Trust by completing the Application Form which forms a part of this PDS. The minimum initial investment under this PDS is $5,000 per investment fund. Additional investments can be made in minimum amounts of $1,000 per investment fund. Alternatively, regular monthly investments of $100 or more per investment fund can be made through the regular investment plan. Do you want to invest regularly? You can use a regular investment plan. The regular investment plan allows you to make regular direct debit payments into your investment. The minimum amount is $100 per month. Your regular investments will be made on or around the 15th of the month. The regular investment plan is available for each of the Gateway Unit Trusts. We reserve the right to withdraw the regular investment plan for any investor of the investment funds without prior written notice, at any time. Units are issued in accordance with the terms of the PDS current at the time of issue of the new units. Every quarter, a distribution advice that includes a transaction statement will be sent to you. This will provide an updated record of your regular investment plan. You may request, in a particular month, that your regular contribution not be made. However, you may request this only once in any 12 month period. Should you wish to alter or stop making payments, simply write (with at least five business days notice prior to the 10th of the month) to: ANZ Managed Investments Limited Customer Service Centre GPO Box 4028 Sydney NSW 2001 If due to insufficient funds, a direct debit for your regular investment amount is rejected by your bank, a dishonour fee of $10 and any bank charges may be levied. The following month, we have the option of applying two deductions from your account. Should any direct debit be dishonoured in the following month we may automatically terminate the regular investment plan. This will not affect your investment in the investment fund. A current PDS will be sent to you to assist you in reviewing your regular investment plan. Your participation continues automatically if we receive further payment from you. If you participate in the regular investment plan, you should keep the current PDS together with any updated information for future reference. A copy of the current PDS is available on request, by telephoning Customer Services on or contacting your ANZ Financial Planner. What are the benefits of a regular investment plan? > It is convenient as funds are withdrawn directly from your bank account. > You are able to invest a smaller amount of money on a regular basis. > It is flexible so that you can change the amount of your regular investment at any time, subject to minimum contribution requirements. How do I apply? > Firstly you will need to make an initial investment of at least $5,000 per investment fund. > When you complete an Application Form you should nominate the regular investment amount you would like to invest each month and also complete the Direct Debit Request Form on page 41. > The minimum additional contribution is $1,000 per investment fund or $100 per investment fund per month for the regular investment plan. However, you may elect to invest more. > ANZMI may, with prior notice to the investor, vary the minimum monthly contributions. Do you want to stay informed? To keep you up to date with your investments, you will receive: > quarterly distribution advices with transaction details > an audited annual financial report for the investment funds > a personalised annual tax statement. 25 ANZ Gateway Unit Trusts PDS

28 What else do I need to know? 26 ANZ Gateway Unit Trusts PDS What is the effective date of transactions? Correctly completed Application Forms and cheques received at 347 Kent Street, Sydney NSW 2000 by 12 noon Sydney time, will generally take effect on the same business day. Those received after 12 noon will generally take effect on the following business day. You will receive the unit price applicable on the business day that your Application Form becomes effective. How do we process your application? Your investments will generally be processed within four business days after the effective date. You will then be able to access your investment provided your application monies have been cleared. Unless we issue units to you as soon as we receive your application monies, we are required to hold your monies in a trust account on your behalf. We will retain any interest payable by our bank on this account to meet, among other things, bank fees and other bank administration costs we incur in operating the account. What are unit prices and how do they work? The price you pay to buy into your investment and the price at which you sell your investment are calculated daily. Unit prices are calculated by dividing the value of all investments in an investment fund less any liabilities of the investment fund by the number of units in the investment fund, with an adjustment for transaction costs. Any income received by an investment fund will also be reflected in the unit price. At the end of the distribution period unit prices will generally fall by the amount of the distribution per unit. The current prices for your investment can be obtained by phoning Customer Services on , Monday to Friday between 8.00am and 8.00pm, Sydney time (excluding national public holidays), or are available via the internet at How do we confirm transactions? You can request confirmation of your transactions and any other additional information about your investments in the following convenient ways: > call us on between the hours of 8.00am and 8.00pm, Sydney time, Monday to Friday and have your query answered over the telephone > call us and ask for written confirmation of the transactions you have made to be sent to you > us at anz.investments@ing.com.au Our contact details are located on the back cover of this document. What are distributions? Distributions are earnings from your investment and may include income and net capital gains. Your distribution amount will normally vary depending on factors like market conditions, asset classes and investment performance. As a result of these factors, there may be times when you do not receive any distributions. Distributions will be paid directly to your nominated financial institution account, or reinvested at your election. If distributions are rejected by your nominated financial institution (for example, if the account has been closed) or if no nomination is made, then all future distributions will automatically be reinvested in the relevant investment fund on your behalf (less any bank charges), until you advise us otherwise. Such amounts will be reinvested within five days after we receive notification from the relevant financial institution. Income distributions are determined quarterly and usually paid within four weeks after the end of each distribution period, although the Constitution allows for a period up to two months. Any realised capital gains are distributed at least annually. A request or cancellation is effective if received at least 21 days before the end of a distribution period, in respect of any distribution for that and subsequent periods. We may accept later requests.