ANZ OneAnswer Investment Portfolio Supplementary Product Disclosure Statement 10 September 2003

Transcription

1 ANZ OneAnswer Investment Portfolio Supplementary Product Disclosure Statement 10 September 2003 This supplementary Product Disclosure Statement (PDS) should be read in conjunction with the ANZ OneAnswer Investment Portfolio PDS dated 1 June 2003 issued by ANZ Managed Investments Limited (ABN ). The purpose of this supplementary PDS is to inform investors that: Changes apply to the investment fund known as ING New Asia Share Trust from 10 September The table below highlights the changes that apply to the fund and subsequently to the PDS from 10 September Fund characteristic Current information Replacement information PDS references to be updated Investment fund name ING New Asia Share Trust ING Global Emerging Markets Part 1: pages 12 and 28. Share Trust Part 2: pages 6 and 34. Application Form: pages 4 and 5. Investment objective The Fund aims to achieve The Fund aims to achieve Part 2: page 34. returns (before fees, charges returns (before fees, charges and taxes) that exceed the and taxes) that exceed the MSCI All Countries Asia (Free) MSCI Emerging Markets (Free) Index excluding Japan Index (A$ unhedged), over (A$ unhedged), over periods periods of three years or more. of three years or more. Investment strategy The Fund invests The Fund invests Part 2: page 34. predominantly in a diversified predominantly in a portfolio of Asian shares concentrated portfolio of (excluding Japan), in international emerging market accordance with INGIM's shares, in accordance with investment process. INGIM's investment process. All other information about the fund, including IME and MER information, ARSN, distribution frequency, minimum time horizon, buy/sell differential, size of fund, commencement date and asset allocation remains the same. Changes apply to the asset allocation of the investment fund known as ING Diversified Fixed Interest Trust from 10 September The asset allocation to apply from 10 September is shown below and should replace the asset allocation shown in the PDS on page 20 of Part 2. Asset allocation from 10 September 2003 Asset class Benchmark (%) Ranges (%) Cash & Australian fixed interest International fixed interest Australian & international high yield debt All other information about this investment fund remains the same.

2 Changes apply to the investment fund known as ING Sustainable Investments Australian Share Trust. On page 43 of Part 2 which is titled What standards does INGIM use when managing the ING Sustainable Investments (ISP) Australian Share Trust?, the following two sentences are added at the end of the third paragraph INGIM may seek further reviews from time to time. If an investment no longer meets INGIM's basis for selection or continuation (as it exists from time to time) then, subject to what is stated in this section, that investment will generally be changed. Certain additions are made in relation to other information in the PDS applicable to all the funds: * Page 7 of Part 1, under the caption How we manage other risks, the following sentence is added immediately after the first sentence: Where feasible, advance notice to investors in affected investment funds will be given. Otherwise, the responsible entity will inform you of changes in the next regular statement, or earlier if required by law. * Page 14 of Part 1, under the caption Transaction costs (Buy/Sell differential), the following sentence is added immediately after the first sentence: Transaction costs reflect the costs of buying and selling investments, primarily brokerage and stamp duties. When these increase, the transaction costs may increase.

3 ANZ OneAnswer Investment Portfolio Supplementary Product Disclosure Statement Number 2 1 July 2004 This Supplementary Product Disclosure Statement (PDS) should be read in conjunction with the ANZ OneAnswer Investment Portfolio PDS dated 1 June 2003 and the Supplementary PDS dated 10 September 2003, both issued by ANZ Managed Investments Limited ABN , AFSL The purpose of this Supplementary PDS is to inform investors that a new investment fund will be added to the PDS from 1 July 2004 called ING Diversified High Yield Trust ARSN The following should be read in conjunction with the PDS and Supplementary PDS. > Part One and Part Two Disclaimer page 1 Delete the first sentence and replace with the following sentence: ANZ Managed Investments Limited ABN AFSL (ANZMI) and ING Funds Management Limited ABN AFSL (INGFM) are the joint issuers of this Product Disclosure Statement (PDS) and invite you to invest in this product. INGFM is the responsible entity of the ING Diversified High Yield Trust and ANZMI is the responsible entity of all other investment funds offered through the PDS. Each of ANZMI and INGFM take full responsibility for the whole of this PDS. > Part One Page 12 Insert after ING Income Plus Trust, the following: MER (p.a.) using the MER (p.a.) using the Investment Fund IME (p.a.) Entry Fee option Nil Entry Fee option ING Diversified High Yield Trust 0.55% 1.85% 2.25% > Part One Page 28 Insert after ANZ OA ING Income Plus Trust, the following: Investment Fund ARSN ING Diversified High Yield Trust > PartTwo Page 6 Insert after ING Income Plus Trust (Profile 2 Conservative): > ING Diversified High Yield Trust

4 > PartTwo Page 23 Insert after ING Income Plus Trust the following information: ING Diversified High Yield Trust A2147/0704 Investment objective The Fund aims to provide income and achieve returns (before fees, charges and taxes) that exceed the UBS Australian Bank Bill Index by at least 2.0% p.a., over periods of three years or more. Investment strategy The Fund invests predominantly in a diversified mix of Australian and international high yield debt assets and fixed interest securities. The Fund is actively managed in accordance with ING Investment Management Limited s (INGIM) investment process. Distribution frequency Minimum time horizon March, June, September, December 3 years Buy/Sell differential None Size of fund $0.15 million as at 30 April 2004 Commencement date September 2003 Asset allocation Asset Class Benchmark (%) Range (%) Australian Fixed Interest & Cash International Fixed Interest Australian High Yield Debt International High Yield Debt

5 Part11 Investment Portfolio Product Book Product Disclosure Statement 1 June 2003 This Product Disclosure Statement has two parts: Part One This document Part Two Investment Book

6 What is ANZ OneAnswer? As an investor, you have many important questions that you need answered: > How can I build my wealth, grow my super or provide a retirement income? > How can I maximise returns and minimise risk? > Who can I trust to manage my money safely and securely? > How can I do all this simply, conveniently and at a low cost? For all these questions there s one answer. ANZ OneAnswer your all-in-one investment, personal superannuation and retirement package. > Investment Portfolio > Personal Super > Allocated Pension With help from your financial adviser, you can build a made to measure investment solution that s simple to understand, easy to use, and changes as your needs change all within the one package. ANZ OneAnswer puts you in control of your investment, superannuation, or retirement strategy by offering you wide choice, greater convenience, and more flexibility, in a competitive package.

7 ANZ OneAnswer puts you in control by offering > choice Choice maximise returns while minimising risk by diversifying your investment across one or a number of the 40 hand-picked investment funds. > control > convenience > flexibility Convenience simple, easy to use and manage, with hassle free transacting and servicing. > competitively priced Flexibility a full range of competitive features and alternatives allows you to build a made to measure investment solution designed to meet your needs. All in a competitive package

8 ANZ helping you plant investment seeds for your future growth Choosing how, when and where to invest your hard earned money is an important decision. You need the right investment strategies to meet your investment goals and the appropriate product solutions. To help you meet this need, ANZ Group provides you with professional financial advice and access to a range of products and services from a world-class wealth manager, ING. Through our partnership with ING you can access wealth management solutions with a wide range of investment options from leading fund managers, and Manage the Managers funds. ANZ OneAnswer offers you investment solutions providing wide choice, greater convenience and more flexibility. With the help of your financial adviser you can now build a made to measure solution that is simple to understand, easy to use and can change as your needs change all within the one package. ANZ OneAnswer to meet your changing needs The ANZ OneAnswer package currently includes Investment Portfolio, Personal Super and Allocated Pension. Working together they provide you with a simple and effective way to build your wealth, maximise your superannuation savings or provide for your retirement. The benefit of Manage the Managers ANZ OneAnswer provides Manage the Managers investment funds from the specialist fund manager Optimix Investment Management Limited (OIML) ABN The benefit of external managers Investing through ANZ OneAnswer products means you can access investment funds managed by a range of leading fund managers without the inconvenience of setting up multiple investments. This lets you take advantage of a wider range of investment opportunities, and allows you to easily diversify your investments within the one, convenient portfolio. Why ING? ING Australia is a leading fund manager and life insurer with approximately $38 billion in assets under management, and 2,000 staff. ING Australia Pty Ltd (ING Australia) is a joint venture between the global ING Group, which owns 51%, and ANZ Group, which owns 49%. ING Group is one of the world s largest wealth managers with more than 50 million customers, $800 billion in assets under management and 110,000 staff. ING Australia uses ING Investment Management Ltd (INGIM), to manage ING investment fund options, however INGIM is not a subsidiary of ING Australia. INGIM is part of a global specialist investment network of ING Group. ING Australia s subsidiary, Optimix Investment Management Limited (OIML), provides Manage the Managers investment funds. ING bringing you a world of investment opportunity. The Optimix investment team carefully selects a number of investment managers, with contrasting but complementary investment styles, to manage each asset class in each Manage the Managers fund. The investment team then directs investments toward the investment managers who are best suited to the current market conditions, ensuring that the best possible mix of managers is managing your investment. This means your money is managed by some of the world s leading investment managers.

9 Contents ANZ Managed Investments Ltd (ANZMI) is the issuer of this Product Disclosure Statement (PDS), and invites you to invest in this product. ANZMI is a subsidiary of ING Australia Pty Ltd (INGA) ABN and is the responsible entity of the investment funds offered through ANZ OneAnswer Investment Portfolio. An investment in ANZ OneAnswer Investment Portfolio is neither a deposit nor a liability of: > Australia and New Zealand Banking Group Limited ABN or any of its related corporations (ANZ Group) > INGA, ING Bank (Australia) Limited ABN (ING Bank), ING Investment Management Limited ABN (INGIM) or any other company in the ING Group (ING). This PDS should not be used as a substitute for financial advice and you should speak to a licensed financial adviser before investing in ANZ OneAnswer Investment Portfolio. This PDS will assist you in determining whether this product is suitable for your needs. ANZMI is responsible for the contents of this PDS except for information about external fund managers, externally managed investment funds, and margin lending. Information about each external fund manager and the investment strategy and objectives, buy/sell differential and the asset allocation of any investment fund it manages is based on information provided by the external fund manager. Information about margin lending is based on information provided by ANZ Group. The external fund managers and ANZ Group consent to information based on information they have provided being included in the PDS in the form and context in which it has been included and they have not withdrawn their consent at the time of preparation of this PDS. They take no responsibility for any other information in the PDS. The value of investments in managed funds, superannuation and retirement products rises and falls. Neither ANZMI nor any company in the ANZ Group or ING guarantees investment performance or earnings or return of capital invested in ANZ OneAnswer products. In this PDS, the terms ANZ, us we and our refer to ANZ Managed Investments Limited ABN The investment funds include the title ANZ OA in their names, as stated in their Constitutions. However, the title ANZ OA has been excluded from their names for the purpose of this PDS. The invitation to invest in the ANZ OneAnswer Investment Portfolio investment funds in this PDS is only available to persons receiving this PDS in Australia. It is not made, directly or indirectly, to persons in any other country. ANZ OneAnswer Investment Portfolio Product Book (part one) What is ANZ OneAnswer Investment Portfolio? 2 Who should invest in ANZ OneAnswer Investment Portfolio? 3 What are the benefits? 4 What are the risks? 6 What are the fees and charges? 8 What is margin lending? 18 How will ANZ OneAnswer Investment Portfolio work for me? 22 What else do I need to know? 25 How do I obtain up to date information? 27 How do I get started? ANZ OneAnswer Investment Portfolio Investment Book (part two) What are managed funds? 2 What are the investment opportunities? 4 Choosing your investment strategy 7 What is Optimix? 9 Who is ING? 12 Who are the external managers? 14 Your guide to the investment funds 16 The investment funds 18 What standards do we adhere to when investing? 42 Other important information 45 1 ANZ OneAnswer Investment Portfolio PDS ANZ Managed Investments Limited ABN Kent Street Sydney NSW 2000 Telephone Website investor@ing.com.au

10 What is ANZ OneAnswer Investment Portfolio? 2 ANZ OneAnswer Investment Portfolio PDS ANZ OneAnswer Investment Portfolio is an investment product that allows you to invest in managed funds. It gives you convenient access to a range of investment funds managed by INGIM, Optimix, as well as other leading investment managers.

11 Who should invest in ANZ OneAnswer Investment Portfolio? ANZ OneAnswer Investment Portfolio is designed 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 toward a specific purpose like a house, child s education or an early retirement > invest tax-effectively > borrow to invest 3 ANZ OneAnswer Investment Portfolio PDS Which investment funds can I choose? The Investment Funds available in ANZ OneAnswer Investment Portfolio are presented in detail in the Investment Book, which forms the second part of this PDS. What is the minimum amount I need to start? Minimum initial contribution $5,000 across portfolio (Entry Fee option) $10,000 across portfolio (Nil Entry Fee option) $1,000 per investment fund Minimum additional contribution Minimum switch Minimum balance $1,000 across portfolio $250 per investment fund $250 per investment fund $250 per investment fund Using the regular investment plan (the minimum portfolio balance is waived) Minimum initial contribution Minimum regular contribution Using the regular Draw-down plan $1,000 per investment fund $100 per investment fund (per month or quarter) Minimum total portfolio balance $20,000 Minimum regular payment $100 per investment fund (per month or per quarter) The Entry Fee and Nil Entry Fee options are explained in detail on page 10 of this PDS. Minimum initial contribution for the ING Income Trust is $10,000 and the minimum monthly payment from the fund is $20. The regular investment plan and regular Draw-down plan do not apply to the ING Income Trust.

12 What are the benefits? 4 ANZ OneAnswer Investment Portfolio PDS > Increase the value of your investment > Earn an income ANZ OneAnswer Investment Portfolio makes both these goals possible by giving you access to: > a broad range of investment funds > funds investing in Australia and globally > funds investing in all major asset classes > funds managed by a range of investment managers, using different investment styles > funds with different levels of risk > funds designed to either 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 re aiming to grow your money, or generate an income, this broad investment choice allows you to pursue opportunities that closely match your investment goals.

13 Diversification Diversification means holding more than one type of investment, and can be achieved 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 fund managers INGIM, external managers and Optimix Depending on how you diversify, underperformance in one area may be offset by positive performance in another. ANZ OneAnswer Investment Portfolio lets you diversify by giving you access to a broad range of investment funds and fund managers. Pooled money When you invest through ANZ OneAnswer Investment Portfolio, 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, INGIM s experienced global investment professionals, and other fund managers selected by us, are able to pursue investment opportunities that may not be available to an individual investor. Experienced investment managers Successfully managing investments requires investment experience, knowledge of financial markets, and up to date global financial information. ANZ OneAnswer Investment Portfolio also lets you establish a regular investment plan, a regular Draw-down plan, a regular geared investment plan, and allows you to withdraw all or part of your investment at any time. Information about regular investment, Draw-down plans and withdrawals, can be found on page 23 of this PDS. Information about the regular geared investment plan can be found on page 21 of this PDS. Margin lending ANZ OneAnswer Investment Portfolio includes a margin lending facility. Margin lending is a process where you borrow money to invest. This is sometimes called gearing your portfolio. By adding borrowed money to your funds, you increase the total amount of money working for you. This means that gearing can provide the opportunity to increase the value of your portfolio over time, potentially amplifying your returns. However, gearing works in the opposite direction and can potentially amplify your losses. Depending on your individual circumstances, you may be able to deduct interest expenses and borrowing fees for tax purposes. Detailed information on the margin lending facility offered through ANZ OneAnswer Investment Portfolio can be found on page 18 of this PDS. 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. 5 ANZ OneAnswer Investment Portfolio PDS INGIM s experienced global investment professionals, and other fund managers selected by us, make investment decisions on behalf of all investors in ANZ OneAnswer Investment Portfolio. They monitor all major markets and asset classes, with access to a worldwide source of financial information that allows them to make decisions based on the most up to date information available. A flexible way to invest ANZ OneAnswer Investment Portfolio has competitively priced fees and, in most cases, allows you to switch between investment funds without incurring switching fees. 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. 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 funds can reduce the taxation on investment earnings, improving after tax returns to investors. Your financial adviser can tell you which investment funds are likely to distribute franking credits.

14 What are the risks? Investment risk 6 ANZ OneAnswer Investment Portfolio PDS Investment risk means the value of your investment could fall. Rises and falls in investment value occur for a variety of reasons, and sometimes quickly. Your financial adviser can provide explanations of these reasons if required. Falls in the value of your investment primarily occur when the fund you re invested in experiences a fall in the value of its assets. When the value of the 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 > investment decisions made by fund managers > the selection of investment managers How we manage investment risks Information about the investment processes used by INGIM to manage investment risk can be found in the Investment Book, which forms the second part of this PDS.

15 Margin lending If you choose to include a margin loan as a part of your investment, you expose yourself to greater losses if your investment goes down in value. Detailed information on the margin lending facility offered through ANZ OneAnswer Investment Portfolio can be found on page 18 of this PDS. You should speak with your financial adviser before applying for a margin loan. Other risks We are committed to giving our customers 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 investment approach used by an investment fund > change the fund manager managing an investment fund > 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. Helping our customers reach their financial goals is always our focus. We will continue to manage ANZ OneAnswer Investment Portfolio investment funds in a way that maximises investment returns, but stays within defined risk levels. 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 international risks are managed Information about the investment process used by INGIM to manage international investments can be found in the Investment Book, which forms the second part of this PDS. When managing an investment fund, each fund manager may also use various techniques to counter, or take advantage of, movements in currency and interest rates. For example, investment funds can be unhedged, hedged, or a fund manager may elect to actively manage currency. If external managers use hedging as a significant part of their investment process, this is noted in the investment strategy of the relevant fund in the Investment Book, which forms the second part of this PDS. Unhedged 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 and interest rates movements. Therefore, movements in currency and interest rates 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. Active currency management Some fund managers will vary the level of hedging, depending on their view of currency markets known as active currency management. An active currency manager attempts to reduce the impact of currency movements on international investments, or increase their 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 portfolio, you should speak with your financial adviser about the risks of investing internationally, and which type of investment fund is most appropriate for your circumstances. 7 ANZ OneAnswer Investment Portfolio PDS

16 What are the fees and charges? 8 ANZ OneAnswer Investment Portfolio PDS All the current fees and charges that may apply are included in this section. We will give you 30 days notice before changing any fees or charges. To assist you, we have divided the fees into three groups: 1. Entry and exit fees 2. Ongoing management charges 3. Other fees

17 1. Entry and exit fees Depending on how you choose to invest, and the amount of time you hold your investment, you may be charged an entry fee and/or an exit fee. What is it? What do I need to know? How does it apply? Entry Fee Once only deduction from each contribution you make Paid by you, into your investment. from your contribution. Exit Fee Once only deduction from each withdrawal you make Paid by you, out of your investment. from your withdrawal. Entry and Exit fees do not apply when you switch money between most investment funds, or when you reinvest your distributions. 2. Ongoing management charges What is it? What do I need to know? How does it apply? Management Fee Charged monthly based on the value of the assets. Deducted from the assets This fee is charged by us for acting as the of the investment fund and Responsible Entity. included in the unit price. + 9 ANZ OneAnswer Investment Portfolio PDS Investment Management This covers other fees and expenses including amounts Deducted from the assets Expense deducted by the fund manager of each investment fund of the investment fund and to cover their fees and fund expenses. included in the unit price. = Management Expense Ratio This is the sum of the management fee and the (MER) investment management expense. To show how these fees might apply to an ANZ OneAnswer Investment Portfolio, we have included two case studies on page 16 and Other fees What is it? What do I need to know? How does it apply? Switching Fee No fee is charged for switching between investment Paid by you, from your funds, except as noted on page 14. Investment Portfolio. Dishonour Fee Charged to your account when any regular investment Paid by you, from your is dishonoured. Investment Portfolio. Transaction Costs Paid to the investment fund to cover the costs of Paid by you, through the (Buy/Sell Differential) buying and selling assets on your behalf. unit price on application or withdrawal. Financial Adviser Commission Paid to your financial adviser s organisation. Paid by us. Commissions can be both initial and ongoing payments. Adviser Service Fee Optional. Negotiated between you and your financial Paid by you, from your adviser. Calculated and charged monthly. Investment Portfolio. How will fees and charges apply to my portfolio? When you invest in ANZ OneAnswer Investment Portfolio you must select either the Entry Fee option or Nil Entry Fee option. The option you select will determine the fees you are charged.

18 What are Entry Fee and Nil Entry Fee options? Entry Fee option Generally, if you choose the Entry Fee option, a fee is deducted from each contribution you make into your investment. However, there is usually no exit fee when you withdraw your money, and the Entry Fee option has lower management fees than the Nil Entry Fee option. 10 ANZ OneAnswer Investment Portfolio PDS Nil Entry Fee option If you choose the Nil Entry Fee option, you can contribute without any entry fee charged on your contributions. However, generally the Nil Entry Fee option has higher management fees than the Entry Fee option and exit fees apply when you withdraw your money. The fees that apply if you choose Entry Fee ING Cash Trust ING Mortgage Trust ING Income Plus Trust Nil the Entry Fee option All other investment funds 4% Exit Fees 1 ING Cash Trust ING Mortgage Trust ING Income Plus Trust All other investment funds Nil > 1.5% within 6 months > 1% within 6 to 12 months > 0.5% within 1 to 2 years > Nil after 2 years > 2% within 1 year > 1% within 1 to 2 years > Nil after 2 years Nil Management Fee (p.a.) 2, 4 ING Cash Trust 1.20% ING Mortgage Trust 1.23% ING Income Plus Trust 1.60% All other investment funds > First $100, % > Next $100, % 3 > Next $100, % 3 > Amounts over $300, % 3

19 We reduce management fees as the value of your total portfolio grows Entry Fee All investment funds the Nil Entry Fee option Nil 11 ANZ OneAnswer Investment Portfolio PDS Exit Fees 1 ING Cash Trust ING Mortgage Trust Nil > 1.5% within 6 months > 1% within 6 to 12 months > 0.5% within 1 to 2 years > Nil after 2 years ING Income Plus Trust All other investment funds Management Fee (p.a.) 4 ING Cash Trust 1.20% ING Mortgage Trust 1.23% ING Income Plus Trust 1.60% All other investment funds > First $100, % > Next $100, % 3 > Next $100, % 3 > Amounts over $300, % 3 > 2% within 1 year > 1% within 1 to 2 years > Nil after 2 years > up to 3% of any amount withdrawn within 3 years > Nil after 3 years Notes to both tables 1 Exit fees apply from the date of each investment. 2 Investors in the Entry fee option will be charged the full management fee of the Nil Entry Fee option and then a management fee rebate up to the difference between the Nil Entry Fee option and the Entry Fee option will be provided. Rebates are calculated and paid monthly according to your distribution instructions. These rebates may be taxable. 3 Ifyour portfolio balance is over $100,000 you will receive a fee reduction. However, the full management fee is still charged and we pay you a management fee rebate. Rebates are calculated and paid monthly according to your distribution instructions. The rebates may be taxable. Money invested in the ING Cash, Mortgage and Income Plus Trusts is not included in your portfolio balance. 4 In exceptional circumstances, we may issue units to ourselves at no cost if we have waived part or all of our management fee.

20 Investment Management Expense (IME) and Management Expense Ratio (MER) The following table lists the Investment Management Expense (IME), and the Management Expense Ratio (MER), based on investments of less than $100,000. The IMEs quoted are based on MERs supplied to us at the date of printing. The IMEs are subject to change, and therefore so are the MERs. 12 ANZ OneAnswer Investment Portfolio PDS The MER is a combination of the Management Fee (see previous page) and the IME. The MER will differ depending on whether you choose the Entry Fee option or the Nil Entry Fee option. MER (p.a.) using the MER (p.a.) using the Investment fund IME (p.a.) Entry Fee option Nil Entry Fee option Optimix investment funds Optimix Enhanced Cash Trust 0.58% 1.88% 2.28% Optimix Australian Fixed Interest Trust 0.61% 1.91% 2.31% Optimix Capital Stable Trust 0.71% 2.01% 2.41% Optimix Moderate Trust 0.77% 2.07% 2.47% Optimix Growth Trust 0.84% 2.14% 2.54% Optimix Australian Property Securities Trust 0.83% 2.13% 2.53% Optimix Australian Share Trust 0.83% 2.13% 2.53% Optimix Global Share Trust 1.01% 2.31% 2.71% Optimix Global Smaller Companies Share Trust 1.10% 2.40% 2.80% Optimix High Growth Trust 0.92% 2.22% 2.62% ING investment funds ING Cash Trust Nil 1.20% 1.20% ING Mortgage Trust 0.25% 1.48% 1.48% ING Diversified Fixed Interest Trust # 0.55% 1.85% 2.25% ING Income Trust # 0.55% 1.85% 2.25% ING Conservative Trust # 0.55% 1.85% 2.25% ING Income Plus Trust 0.25% 1.85% 1.85% ING Balanced Trust # 0.55% 1.85% 2.25% ING Tax Effective Income Trust 0.55% 1.85% 2.25% ING Managed Growth Trust # 0.55% 1.85% 2.25% ING Active Growth Trust 0.55% 1.85% 2.25% ING Property Securities Trust 0.55% 1.85% 2.25% ING Blue Chip Imputation Trust # 0.55% 1.85% 2.25% ING Australian Share Trust # 0.55% 1.85% 2.25% ING Sustainable Investments Australian Share Trust 0.55% 1.85% 2.25% ING Global Sector Trust # 0.65% 1.95% 2.35% ING New Asia Share Trust 0.65% 1.95% 2.35% ING High Growth Trust 0.55% 1.85% 2.25%

21 MER (p.a.) using the MER (p.a.) using the Investment fund IME (p.a.) Entry Fee option Nil Entry Fee option External investment funds UBS Diversified Fixed Income Trust 0.42% 1.72% 2.12% Credit Suisse Property Trust 0.89% 2.19% 2.59% State Street Australian Index Plus Trust 0.40% 1.70% 2.10% AMP Henderson Equity Trust 0.97% 2.27% 2.67% Colonial First State Imputation Trust 0.95% 2.25% 2.65% Investors Mutual Australian Share Trust 0.95% 2.25% 2.65% Perpetual Australian Share Trust 0.92% 2.22% 2.62% Schroder Australian Equity Trust 0.90% 2.20% 2.60% State Street Global Index Plus (Hedged) Trust 0.45% 1.75% 2.15% AXA Global Equity Value Trust 1.05% 2.35% 2.75% BT Putnam Global Core Hedged Trust 1.29% 2.59% 2.99% Credit Suisse International Share Trust 1.15% 2.45% 2.85% Fidelity Perpetual International Share Trust 1.23% 2.53% 2.93% 13 ANZ OneAnswer Investment Portfolio PDS # The IME of these funds includes the cost of managing the underlying investments, other expenses and 0.39% p.a. charged under the management fee clause of the Constitution. We also expect to receive payments from external managers, based on funds under management. These amounts are already considered when we determine the fees and charges for this product.

22 14 ANZ OneAnswer Investment Portfolio PDS Other fees and charges Switching Within the Entry Fee option ING Mortgage and Income Plus Trusts If you switch from the ING Mortgage Trust or ING Income Plus Trust to any other investment fund (including the ING Cash Trust) or vice versa you will incur the normal entry and or exit fees. ING Cash Trust If you switch from the ING Cash Trust to any other investment fund you will pay an entry fee on the new fund. If you switch from any other investment fund (except ING Mortgage or Income Plus Trusts) into the ING Cash Trust you will not incur any fees. Other investment funds There are currently no fees when switching between the other investment funds. Note: If a transaction cost applies to an investment fund then it will apply when switching. Within the Nil Entry Fee option ING Mortgage and Income Plus Trusts If you switch from the ING Mortgage Trust or ING Income Plus Trust to any other investment fund (including the ING Cash Trust) or vice versa you will incur the normal exit fees. ING Cash Trust If you switch from the ING Cash Trust to any other investment fund you will commence the exit fee period at the time of the switch. If you switch from any other investment fund (except ING Mortgage or Income Plus Trusts) into the ING Cash Trust the exit fee of the original investment will continue to apply. Other investment funds There are currently no fees when switching between the other investment funds. A switch will not restart the exit fee period. Note: If a transaction cost applies to an investment fund then it will apply when switching. As switching is treated as a withdrawal for tax purposes, you may realise a capital gain or loss on the sale of your units. Dishonour fee Currently, a $10 fee is charged where any regular payment using the regular investment plan is dishonoured. Transaction costs (Buy/Sell differential) Fund managers incur transaction costs when they buy and sell fund assets. To cover this cost, they may charge a transaction cost (known as Buy/Sell differential). If a transaction cost applies, the unit price used to process your contribution and withdrawal will be adjusted to reflect this cost. A transaction cost also applies to money switched in or out of an investment fund. It does not apply to reinvested distributions. The actual amount charged varies between investment funds and is generally between 0% and 0.5% of the amount you contribute, withdraw or switch. If an investment fund charges a transaction cost, it will be noted in the profile for the fund. The investment fund profiles can be found in the Investment Book, which forms the second part of this PDS. Financial adviser commission We may pay your financial adviser s organisation for selling you this product and these commissions are already incorporated into the fees outlined in this section. Financial adviser commission is not charged directly to your portfolio. These commissions include GST. The financial adviser commissions are as follows: Initial commission Ongoing commission (p.a.) Entry Fee option 4.4% 0.44% Nil Entry Fee option* 3.3% 0.33% for the first three years of each investment 0.55% after three years or Nil 1.0% ING Mortgage Trust 1.1% Nil or Nil 0.33% ING Income Plus Trust 2.2% Nil or Nil 0.385% ING Cash Trust Nil 0.33% * If you select the Nil Entry Fee option and your adviser selects the nil initial commission option we may reduce or waive your exit fee.

23 It is not our intention to raise fees for any investment fund in the foreseeable future. Adviser service fee (optional) You may choose to pay your financial adviser an adviser service fee (up to 1.0% p.a. of the total value of your investment). This fee is optional and should be negotiated between you and your financial adviser. Currently, amounts are calculated and deducted monthly. The GST payable on this fee is the responsibility of the adviser and will not be paid by us. GST and fees The fees detailed on pages 10 to 14 of this PDS, take into consideration the net effect of GST and the benefits of reduced input tax credits, unless otherwise stated. Maximum fees and charges Other payments In addition to any initial and ongoing commissions, we may make payments to your financial adviser s organisation to enable them to provide educational or marketing support. These payments are not charged to you, or your Investment Portfolio. 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. The Constitution of each investment fund allows us to deduct our expenses as Responsible Entity from the Fund and charge higher fees then those outlined. 15 ANZ OneAnswer Investment Portfolio PDS Maximum fees Regular Investment Plan Management Switching Administration Dishonour Entry Fee Exit Fee Fee (p.a.) Fee Fee (p.a.) Fee ING Income Trust 5% 5% % 5% 2 + $ $ ING Conservative Trust $ ING Balanced Trust ING Managed Growth Trust ING Blue Chip Imputation Trust 5% 5% % No fee $ $ ING Australian Shares Trust permitted ING Global Sector Trust ING Diversified Fixed Interest Trust Other investment funds 8% 5% 3% 5% or an No fee The cost amount up permitted actually to $50 3 incurred by us 1 This can only be applied to investments in the Nil Entry Fee option. 2 This fee can only be applied if switching between ING Income Trust, ING Conservative Trust, ING Managed Growth Trust and ING Balanced Trust. A reduced fee may apply if an entry fee was initially paid. 3 These amounts are adjusted by changes to CPI each quarter.

24 Fee case studies 16 ANZ OneAnswer Investment Portfolio PDS To illustrate how ongoing management charges may apply to your Investment Portfolio, we have included the following case studies. These examplesare simplified, and assume a fixed balance amount. Your account balance will vary daily. Case study 1 Anthea Anthea is using the Entry Fee option, and has a total portfolio balance of $75,000. Anthea s money is divided as follows: > $40,000 in the Optimix Moderate Trust > $15,000 in the ING Balanced Trust > $10,000 in the UBS Diversified Fixed Income Trust > $10,000 in the ING Tax Effective Income Trust The following Management Fee will apply to Anthea s investment: Investment Fee p.a. (%) Fee p.a. ($) First $75, % $975 as the amount is under $100,000 no rebates apply TOTAL $975 $975 $75,000 = 1.30% p.a. The following Investment Management Expense (IME) will apply to Anthea s investment: Investment Fund IME p.a. (%) Investment Fee p.a. ($) Optimix Moderate Trust 0.77% $40,000 $ ING Balanced Trust 0.55% $15,000 $82.50 UBS Diversified Fixed Income Trust 0.42% $10,000 $42.00 ING Tax Effective Income Trust 0.55% $10,000 $55.00 TOTAL $ $ $75,000 = 0.65% p.a. The annual ongoing management charges for Anthea s investment is: Management Fee + IME = MER (% p.a.) MER ($ p.a.) 1.30% 0.65% 1.95% p.a. $1,462.50

25 Case study 2 Stewart Stewart is using the Nil Entry Fee option, and has a total portfolio balance of $250,000. Stewart s money is divided as follows: > $120,000 in the Optimix High Growth Trust > $50,000 in the ING High Growth Trust > $30,000 in the Schroder Australian Equity Trust > $30,000 in the ING Global Sector Trust > $20,000 in the BT Putnam Global Core Hedged Trust The following Management Fee will apply to Stewart s investment: Investment Fee p.a. (%) Fee p.a. ($) First $100, % $1,700 Next $100, % $1,500 Next $50, % $650 TOTAL $3,850 $3,850 $250,000 = 1.54% p.a. 17 ANZ OneAnswer Investment Portfolio PDS The following Investment Management Expense (IME) will apply to Stewart s investment: Investment Fund IME p.a. (%) Investment Fee p.a. ($) Optimix High Growth Trust 0.92% $120,000 $1,104 ING High Growth Trust 0.55% $50,000 $275 Schroder Australian Equity Trust 0.90% $30,000 $270 ING Global Sector Trust 0.65% $30,000 $195 BT Putnam Global Core Hedged Trust 1.29% $20,000 $258 TOTAL $2,102 $2,102 $250,000 = 0.84% p.a. The annual ongoing management charges for Stewart s investment is: Management Fee + IME = MER (% p.a.) MER ($ p.a.) 1.54% 0.84% 2.38% p.a. $5,952

26 What is margin lending? 18 ANZ OneAnswer Investment Portfolio PDS Margin lending, which is sometimes called gearing, is borrowing money to invest in a range of shares and assets. Margin loans can be organised through most major banks and financial institutions. For the convenience of our customers, we have included a margin lending facility in ANZ OneAnswer Investment Portfolio. This facility is called ANZ Margin Lending and is a product of Australia and New Zealand Banking Group Limited, a market leader in the provision of margin lending services. ANZ Group is responsible for all statements and information about margin lending in this PDS. Margin lending is not regulated by the Corporations Act. Consequently, the information about margin lending in this document does not form part of the PDS and is not regulated by the Corporations Act. Before commencing a margin loan, you should speak to your financial adviser and ensure it is appropriate for your own circumstances.

27 What is the minimum amount I need to start? Minimum initial contribution into $10,000 ANZ OneAnswer Investment Portfolio $2,500 using regular geared investment plan Minimum initial loan advance $10,000 $5,000 using regular geared investment plan Using the regular geared investment plan Minimum monthly contribution $250 Minimum monthly loan advance $500 Total minimum monthly contribution $750 Using the regular Draw-down plan Not available with margin lending 19 ANZ OneAnswer Investment Portfolio PDS When using this margin lending facility, only your investment in ANZ OneAnswer Investment Portfolio can be used as security for the loan, and the money you borrow must be invested into ANZ OneAnswer Investment Portfolio. You are free to apply for a margin loan at any time. You are also free to use external margin lending facilities with ANZ OneAnswer Investment Portfolio. How much can I borrow? The amount you can borrow depends on two factors: 1. How much you have invested in ANZ OneAnswer Investment Portfolio. 2. Which investment fund you are investing in. Each investment fund has a maximum loan to value ratio (LVR), which determines the maximum amount of money you can borrow when investing in that fund. The LVRs can be found on page 21. For example, the ING Blue Chip Imputation Trust has a maximum LVR of 70%, meaning if you had $30,000 to invest, you could borrow a further $70,000, bringing your total portfolio to $100,000. The borrowed amount is 70% of the total portfolio. How does a margin loan work? A margin loan is built around the loan to value ratio (LVR). This ratio is the amount of money you contribute compared to the amount you borrow. For example, if you have an investment portfolio of $100,000, of which $50,000 is your own money and you borrowed the remaining $50,000, the LVR would be 50%. The lender will set a maximum LVR depending on the assets you are investing in. If the percentage of borrowed money rises above the maximum LVR, you may receive a margin call.

28 What is a margin call? A margin call is a request for you to re-balance your portfolio when the borrowed amount in your portfolio rises above the maximum LVR. Using the above example, let s say you have a total portfolio of $100,000 with a loan amount of $50,000 and a maximum LVR of 50%. 20 ANZ OneAnswer Investment Portfolio PDS If the market drops by 5%, then the current value of your portfolio drops to $95,000. The $50,000 you borrowed now represents 52.63% of the current value of the portfolio, which is greater than the allowed LVR of 50%. However, to allow for market fluctuations, ANZ Group use a buffer, which is equal to 5% of the current value of your portfolio. Using the above example: Original portfolio value $100,000 Maximum LVR 50% Market fluctuation -5% Current portfolio value $95,000 Maximum LVR amount $47,500 (50% of the current portfolio value) Actual loan amount $50,000 Actual LVR 52.63% Shortfall Buffer $2,500 (amount the actual exceeds the maximum) $4,750 (5% of the current portfolio value) Remaining buffer $2,250 Margin Call No In this case, a margin call would not be triggered because the shortfall did not exceed the buffer. What happens when the shortfall exceeds the buffer? Using the same example, this time the market drops by 10%. Original portfolio value $100,000 Maximum LVR 50% Market fluctuation -10% Current portfolio value $90,000 Maximum LVR amount $45,000 (50% of the current portfolio value) Actual loan amount $50,000 Actual LVR 55.55% Shortfall Buffer Remaining Buffer Margin Call $5,000 (amount the actual exceeds the maximum) $4,500 (5% of the current portfolio value) Nil Yes

29 If the shortfall exceeds your buffer, the result is usually a margin call. When a margin call is triggered you have 24 hours to re-balance your portfolio (to ensure your portfolio is within the LVR maximum). In this case, you could do one of the following: 1. Reduce the amount you owe by depositing $5,000 or more into your loan account held with ANZ Group 2. Add to your existing investment in ANZ OneAnswer Investment Portfolio to the value of $10,000 or more 3. Sell $10,000 or more worth of your ANZ OneAnswer investment, and use the proceeds to repay part of the loan When a margin call is triggered ANZ Group will attempt to contact you. However, it remains your responsibility to monitor your loan and ensure it remains under the maximum LVR. If you are unable to rebalance your portfolio within 24 hours, ANZ Group may sell part of your portfolio to cover the margin call, and you will not be able to determine which part of your portfolio is sold. What can I do to reduce the risk of a margin call? There are several things you can do to reduce the chance of a margin call: > borrow less than the maximum LVR the lower the LVR, the less likely you are to receive a margin call > make regular loan and interest repayments to reduce the borrowed amount in your loan > diversify your investment Fixed interest The loan amount, interest rate and loan terms are all fixed. The interest is charged for the whole term at the commencement of the loan. You are not required to make regular repayments on either the borrowed amount or the interest which is capitalised to your loan. However, you must ensure that the loan remains under the maximum LVR as outlined above. You can also choose to prepay your interest for a maximum period of 12 months. Prepaid interest is non-refundable. What is the regular geared investment plan? The regular geared investment plan lets you borrow further amounts on a monthly basis. To use the regular geared investment plan you will need to contribute a minimum of $250 per month, and ANZ Group will lend a minimum of $500 per month, bringing the total minimum monthly contribution to $750. There is also a minimum investment of $100 per investment fund. Please note, you cannot use the regular geared investment plan and the regular investment plan at the same time, see page 23 of this PDS for information on the regular investment plan. How do I withdraw my money? Withdrawal requests will need to be authorised by ANZ Group to ensure they do not result in the LVR exceeding the maximum or the loan amount being withdrawn in cash. 21 ANZ OneAnswer Investment Portfolio PDS > reinvest your distributions into your portfolio > monitor your loan closely Your financial adviser can provide further information about how to reduce the risk of a margin call. What sort of loan can I apply for? ANZ Group offers two types of margin loans variable or fixed interest. Current interest rates can be viewed online at Variable interest The interest rate can vary and is calculated daily and charged to your account at the end of every month. You are not required to make regular repayments on either the borrowed amount or the interest which is capitalised to your loan. However, you must ensure that the loan remains under the maximum LVR as outlined. If you want to make regular loan repayments, you are free to use a direct debit plan from a bank account to your loan account. How can I get further information about ANZ Margin Lending? Call ANZ Group on Maximum LVRs for each investment fund Investment fund Maximum LVR # Optimix High Growth Trust 60% Optimix Global Share Trust 60% Optimix Global Smaller Companies Share Trust 50% ING Global Sector Trust 60% AXA Global Equity Value Trust 40% Other investment funds 70% # These LVRs can be changed by ANZ Group at any time.

30 How will ANZ OneAnswer Investment Portfolio work for me? 22 ANZ OneAnswer Investment Portfolio PDS