PORTFOLIOCARE ELEMENTS

Transcription

1 PORTFOLIOCARE ELEMENTS INVESTMENT SUPPLEMENTARY PRODUCT DISCLOSURE STATEMENT This is a supplementary product disclosure statement (SPDS) to the PortfolioCare Elements Investment product disclosure statement (PDS) dated 21 October This SPDS should be read in conjunction with the above mentioned PDS and PortfolioCare Elements Investment SPDS dated 1 July CLOSURE OF PORTFOLIOCARE ELEMENTS INVESTMENT PortfolioCare Elements Investment will close to new investors effective 17 October No applications for new investors or new accounts will be accepted from this date. Existing investors can continue to invest in PortfolioCare Elements Investment. The following text is inserted on page 16 of the PDS under the existing text in section 'Example of annual fees and costs'. EXAMPLES OF TOTAL FEES YOU MAY BE CHARGED The following examples illustrate how the total fees you pay can vary depending on the investment options you select. Example 1 Investment in managed funds Assume you invest $125,000 each into two managed funds on the standard menu: TYPE OF FEE OR COST Administration Investment cost for each managed fund assumed 0.90% Transaction costs (Buy/sell costs) assumed 0.20% Adviser remuneration Flat percentage (as negotiated and agreed with your adviser) assumed 0.50% Total fees and costs 1 CALCULATION (0.59% x $250,000) (0.90% x $125,000) + (0.90% x $125,000) (0.20% x $125,000) + (0.20% x $125,000) (0.50% x $250,000) $1,475 + $2,250 + $500 + $1250 FEE AMOUNT $1,475 $2,250 $500 $1,250 $5,475 = 2.42% of the amount you invest Issue date: 10 October 2016 Registered trademark of Hillross Financial Services Ltd ABN The issuer of this SPDS is NMMT Limited ABN AFSL No The information provided in this SPDS is general information only and does not take into account your individual objectives, financial situation or needs. Before acting on the information, you should consider the appropriateness of this information having regard to your individual objectives, financial situation and needs and consult a financial adviser.

2 1 Adviser remuneration, in addition to those amounts above, may be deducted as agreed with your financial adviser. The example assumes that the entire balance of $250,000 is invested into the relevant investment option(s). The examples are hypothetical and are for illustrative purposes only. The actual fees and costs you are charged will depend on the investments you choose and the transactions you carry out. Example 2 Investment in term deposits Assume you invest $250,000 into a term deposit: TYPE OF FEE OR COST CALCULATION FEE AMOUNT Administration Adviser remuneration Flat percentage (as negotiated and agreed with your adviser) assumed 0.50% Total fees and costs 1 1 (0.59% x $250,000) (0.50% x $250,000) $1,475 + $1,250 $1,475 $1,250 $2,725 =1.32% of the amount you invest Adviser remuneration, in addition to those amounts above, may be deducted as agreed with your financial adviser. The example assumes that the entire balance of $250,000 is invested into the relevant investment option(s). The examples are hypothetical and are for illustrative purposes only. The actual fees and costs you are charged will depend on the investments you choose and the transactions you carry out. The following wording replaces the Your Privacy section on page 19 of the PDS and page 3 of the SPDS dated 1 July We may collect personal information directly from you or your financial adviser. The main purpose in collecting personal information from you is so that we can establish and manage your account. If you do not provide the required information, we may not be able to process your application or provide you with the products and services you have applied for. We may collect personal information if it is required or authorised by law including the Corporations Act 2001 and the Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Act We may use your information for related purposes for example, providing you with ongoing information about financial services that may be useful for your financial needs through direct marketing. These services may include investment, retirement, financial planning, banking, credit, life and general insurance products and enhanced customer services that may be made available by us, other members of the AMP group, or by your financial adviser. Please call the Contact Centre on if you do not want your personal information used for direct marketing purposes. We may need to disclose your personal information to other parties, such as: other members of the AMP group your financial adviser your parent or guardian, if you are under age 18 external service suppliers who may be located in Australia or overseas, who supply administrative, financial or other services to assist the AMP group in providing you with AMP financial services. A list of countries where these providers are located can be accessed via our Privacy Policy anyone you have authorised or if required by law. Where you provide any information about one or more other persons, you agree to obtain any such person's consent to the disclosure and to inform them of our identity and contact details as well as the information set out in the Your privacy section, including: the fact that we will collect, or have collected, their information and the circumstances of that collection why their information is collected by us and how it will be used and to whom it may be disclosed by us, and that our privacy policy contains information about: how the person may access their personal information and seek correction of such information how the person may make privacy complaints about us and how we will deal with such a complaint. Under the current AMP Privacy Policy you may access personal information about you held by the AMP group. The AMP Privacy Policy sets out the AMP group s policies on management of personal information, including Information about how you 2

3 can access your personal information, seek to have any corrections made on inaccurate, incomplete or out-of-date information, how you can make a complaint about privacy and information about how AMP deals with such complaints. The AMP Privacy Policy can be obtained online at amp.com.au or by calling the Contact Centre on

4 PortfolioCare Customer Relations Team PO Box 7229 CLOISTERS SQUARE WA 6850 Telephone:

5 PORTFOLIOCARE ELEMENTS INVESTMENT SUPPLEMENTARY PRODUCT DISCLOSURE STATEMENT Effective date: 1 July 2014 This is a Supplementary Product Disclosure Statement (SPDS) to the PortfolioCare Elements Investment Product Disclosure Statement (PDS) dated 21 October This SPDS should be read in conjunction with the above mentioned PDS. The following wording is added under the Important Information section on the inside front cover. NMMT has a comprehensive strategy for monitoring and selecting underlying investment options. This strategy includes oversight by an investment committee made up of senior executives. NMMT is not responsible for the performance of underlying investment options. The following replaces the Changes to this document section on the inside front cover. Information in this PDS may change from time to time. If the change is not materially adverse it may be updated on investoronline.info. A printed copy can be obtained free of charge by calling the Contact Centre on If fees increase (other than by indexation) we will give you written notice 30 days prior to the change. For any other material change we will inform you within three months of the change. The following wording is added under the Your financial adviser section on page 5. Should you elect not to receive ongoing financial advice you may remain invested in PortfolioCare Elements Investment, however, you will be able to provide us with limited instructions and most account features will not be available to you. In this instance, you will be treated in accordance with the NMMT Limited Non-Advised Clients policy which is available at amp.com.au/corporatepolicies. We strongly encourage that you have a financial adviser attached to your account at all times to ensure that your financial strategy is being maintained and that you have access to all the features and functionalities offered through PortfolioCare Elements Investment. The following wording replaces the Using a regular deposit plan section on page 7. Your financial adviser can help you set up regular payments to your account by direct debit from another bank account. When you set up your regular deposit plan, you choose: y how much you want to invest y the frequency of your deposits (monthly, quarterly, half-yearly or annually), and y the duration of your plan. You can change or cancel your regular payments at any time by contacting your financial adviser. When you set up your regular deposit plan, you acknowledge and agree that we will continue your regular payments until you instruct us otherwise. This means future investments will be made even though you may not have received the latest PDS for that investment, or information about material changes or significant events that may affect that investment. This includes information that the responsible entity of the investment is required to give a person who acquired an interest in the managed fund directly, unless exceptions apply. Where funds aren t available for your regular payments and we ve bought managed investments on your behalf, we ll reverse these transactions within a reasonable amount of time. This may result in further buy/sells and market movements that may negatively affect your account balance. We will not be held liable for transactions that occur in these instances. Download the latest version of your investment option s PDS from Investor Online. The following section replaces the Electronic reporting and Communications from investment managers sections on page 18. ELECTRONIC NOTIFICATIONS, ESTATEMENTS AND ONLINE COMMUNICATIONS estatements and online communication You can view your correspondence, including reports, statements, account actions and most letters, in the one secure location on Investor Online. You can make the choice to receive correspondence online when completing your application, by notifying your financial adviser, registering on Investor Online or calling us. As important information about your PortfolioCare Elements Investment account may be sent to the address you nominate in your application, it s important that you nominate a current and active address and notify us immediately if the address provided changes. Electronic notifications and updated information We may provide you with all information required or permitted to be given to you under the relevant law, including transactional and periodical statements, ongoing disclosure and product disclosure statements and supplementary product disclosure statements (or the equivalent information) for underlying managed investments (Information): y where it is or may become permissible under relevant law, via your financial adviser in writing or notice by or other electronic communication (including by making it available online at Investor Online) PortfolioCare Elements Investment SPDS July of 4

6 y directly: by (including s containing a hypertext link) by other electronic communication (including documents containing a hypertext link or by making it available online at Investor Online). y if you re: a new investor, by making an application to open a PortfolioCare Elements Investment account, or an existing investor, by giving an investment direction or switching request, using the regular deposit plan feature, or by you (or someone on your behalf) making further deposits on or after the date of this PDS, you agree that Information can be provided to you in any of these ways. When we send you documents You agree we may give you documents and other communications by any of the methods specified below, including by sending them to any address for you, your financial adviser or your representative provided by you or that we reasonably believe is correct. In this case, those documents and other communications are taken to be given if: y online, when available y posted (including a letter containing a reference to a website where the relevant documents or other communications can be found), when they would be delivered in the ordinary course of post y sent by fax, on production of a transmission report y sent by (including an containing a hypertext link to one or more documents), one business day after the is sent y given personally, when received. Terms and conditions for estatements and online communications Where you elect to receive communications from us online via Investor Online, you agree: y to receive the communications you have requested electronically by regularly accessing them using Investor Online y that registration, access to, and delivery of estatements and online communications via Investor Online are free y either party of a joint account may register for estatements and online communications via Investor Online y to register or be registered and remain registered as a user of Investor Online y that any communication given to you online by making it available to you to access via Investor Online will be taken to be delivery of the communication to you on the date that your nominated address receives an from us that the communication is available y we will send an estatement notification to your nominated address when a communication is available for you to access via Investor Online y you have provided your nominated address in your application, through your adviser or via Investor Online and you (or your adviser, on your behalf) are responsible for notifying us of any change to your nominated address y the nominated address you have provided is your own y to ensure we can deliver your estatements, any change to your address must be submitted before the effective end date of the upcoming report (eg 30 June) y we ll automatically cancel your request for estatements and online communications and switch you back to paper correspondence sent via mail if we re unable to successfully deliver s to your nominated address because it is not valid y to resume estatements after being switched back to paper, you will need to opt-in to online communications again and provide us with a valid address y you will be able to access such communications at any time while your account is open and you have access to Investor Online y to keep your nominated address current and active to continue to receive s from us and to ensure your mailbox can receive notifications from us (eg there must be sufficient storage space available in your inbox) y to ensure your mailbox junk mail and spam filters allow s to be received from us y to tell us as soon as possible if you are unable to access your , Investor Online or your estatements for any reason y to regularly check for delivery of your estatements regardless of whether or not you have received an notification y to take reasonable and appropriate security measures in relation to your computer and access y you can download a copy of any such communication free of charge y we will send you a free paper copy of any such communication, at your request y we may give you any communication in any other method permitted by law y you may cancel your request to receive online communications at any time, however, you acknowledge that it may take up to two days for us to process your cancellation request and recommence sending you paper communications via mail y we may at any time vary, suspend or cancel your access to estatements and online communications via Investor Online. If we do this, we will provide notice to your nominated address as soon as is reasonably practicable and will resume sending you paper communications via mail 2 of 4 PortfolioCare Elements Investment SPDS July 2014

7 y we will notify you of any change to these terms and conditions either by to your nominated address, via Investor Online, or by mail y we are not responsible for any losses whatsoever (including consequential loss) arising from unauthorised access to your account, your inability to access your account or because we have had to cancel your access to estatements and online communications and resume sending you paper communications via mail y we are not responsible for any costs associated with updating, modifying or terminating your software or hardware to enable you to access estatements or Investor Online. The following section is added after the Verifying your identity section on page 19. YOUR RIGHTS Your rights as an investor through PortfolioCare Elements Investment are governed by this PDS, the Constitution and the Corporations Act. The rights you have as an investor include the right to: y withdraw your investment y terminate your investment y receive income entitlements y receive Investor Reports, and y inspect the Constitution. As an investor through PortfolioCare Elements Investment: y you will have access to managed investment funds that are normally only available to investors with large amounts to invest y assets will be held in custody for you, and we will provide consolidated reporting and collect income on your behalf, and y investments you access (such as managed funds) do not have cooling-off rights. If you invest directly in managed investment funds you will receive reports, accounts and may be able to participate in distribution reinvestment plans. These options will not be available to investors who invest through PortfolioCare Elements Investment. NMMT has a voting policy in place regarding investments accessible through PortfolioCare Elements Investment. A copy of this policy is available free of charge upon request or at any time from amp.com.au/corporatepolicies. The following wording replaces the Your Privacy section on page 19. We may collect personal information directly from you or your financial adviser. The main purpose in collecting personal information from you is so that we can establish and manage your account. If you do not provide the required information, we may not be able to process your application or provide you with the products and services you have applied for. We may collect personal information if it is required or authorised by law including the Corporations Act 2001 and the Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Act We may use your information for related purposes for example, providing you with ongoing information about financial services that may be useful for your financial needs through direct marketing. These services may include investment, retirement, financial planning, banking, credit, life and general insurance products and enhanced customer services that may be made available by us, other members of the AMP group, or by your financial adviser. Please call the Contact Centre on if you do not want your personal information used for direct marketing purposes. We may need to disclose your personal information to other parties, such as: y other members of the AMP group y your financial adviser y your parent or guardian, if you are under age 18 y external service suppliers who may be located in Australia or overseas, who supply administrative, financial or other services to assist the AMP group in providing you with AMP financial services. A list of countries where these providers are located can be accessed via our Privacy Policy y anyone you have authorised or if required by law. Under the current AMP Privacy Policy you may access personal information about you held by the AMP group. The AMP Privacy Policy sets out the AMP group s policies on management of personal information, including information about how you can access your personal information, seek to have any corrections made on inaccurate, incomplete or out-of-date information, how you can make a complaint about privacy and information about how AMP deals with such complaints. The AMP Privacy Policy can be obtained online at amp.com.au or by calling the Contact Centre on The following wording replaces the Making an enquiry or complaint section on page 20. MAKING AN ENQUIRY OR COMPLAINT How do I give feedback or lodge a complaint? If you have a concern or complaint about your PortfolioCare Elements - Investment account that you cannot resolve with your adviser, please call our Contact Centre on If we are unable to resolve your concerns over the phone, we will escalate the matter to our Complaints Officer. Alternatively, you can outline your complaint in writing to: The Complaints Officer PO Box 7229 CLOISTERS SQUARE WA 6850 The Complaints Officer will acknowledge receipt of your complaint and endeavour to resolve the matter within 45 days of receiving your complaint. PortfolioCare Elements Investment SPDS July of 4

8 If you have a concern or complaint regarding an investment acquired through PortfolioCare Elements - Investment, please approach us using the contact details above. We can help to direct your complaint or facilitate a resolution with the relevant product issuer. If you have a concern or complaint about your adviser or the financial product advice you have received, please approach the Australian financial services licensee for whom your adviser was acting. What should I do if I don t receive a response or I m dissatisfied with the response? If you are dissatisfied with our response (or have not received a response within 45 days), you may escalate your complaint to the Financial Ombudsman Service (FOS) on or alternatively, in writing to: Financial Ombudsman Service GPO Box 3 Melbourne VIC 3001 FOS is an independent body set up to assist customers in the resolution of complaints relating to members of the financial services industry, including life insurance and funds management companies. The issuer of this SPDS is NMMT Limited ABN AFS License No PortfolioCare Contact Centre PO Box 7229 Cloisters Square WA 6850 Telephone: /14 4 of 4 PortfolioCare Elements Investment SPDS July 2014

9 PORTFOLIOCARE ELEMENTS INVESTMENT Product Disclosure Statement Part 1 You should also read Part 2 Investment Selection EFFECTIVE DATE: 21 OCTOBER 2013 i

10 ii IMPORTANT INFORMATION An investment in the investment options offered through PortfolioCare Elements Investment is subject to investment risk, including possible delays in the payment of withdrawals in some circumstances and loss of income and capital invested. Neither NMMT, any other member of the AMP group, Asgard, nor the investment managers, fund managers or any member of the Westpac group, guarantees the repayment of capital, payment of income or the performance of the investment options. Apart from any interest investors may have in underlying bank accounts held at Westpac through their cash balance, in other Westpac deposit products, or in Westpac securities acquired using PortfolioCare Elements Investment, an investment in or acquired using PortfolioCare Elements Investment is not an investment in, deposit with or any other liability of Westpac or any other company in the Westpac Group. The provision of the investments available through the PortfolioCare Elements Investment or any other investment information, examples or statements in this Product Disclosure Statement (PDS) should not be taken as the giving of financial product advice by us. The information provided in this PDS is general information only. It does not take into account your investment objectives, financial position or needs. Before acting on the information, you should consider the appropriateness of the information having regard to your personal circumstances, financial situation or needs. This document is Part 1 of the PDS for PortfolioCare Elements Investment and should be read in conjunction with the PortfolioCare Elements Investment Selection which forms Part 2 of the PDS. The PortfolioCare Elements Investment PDS comprises the following parts: Part 1: PortfolioCare Elements Investment PDS Part 2: PortfolioCare Elements Investment Investment Selection Responsible entity Related parties NMMT Limited, Australian Business Number (ABN) Australian Financial Services (AFS) Licence No (NMMT), a subsidiary of AMP Limited ABN (AMP). The registered office of NMMT is 33 Alfred Street, SYDNEY NSW These related parties are responsible entities of one or more managed investment schemes that are available through PortfolioCare Elements Investment: AMP Capital Investors Limited, ABN AFSL No (AMP Capital) National Mutual Funds Management Ltd ABN AFSL No (NMFM) ipac Asset Management Limited ABN AFSL No (ipac) AMP Capital, NMFM and ipac are also subsidiaries of AMP. Administrator and custodian Distributor Asgard Capital Management Limited, ABN , AFSL (Asgard). Asgard is a subsidiary of Westpac Banking Corporation, ABN , AFSL No The main distributor of PortfolioCare is Hillross Financial Services Limited ABN AFSL No (Hillross). Hillross is a subsidiary of AMP. ABOUT THIS DOCUMENT This PDS is issued by NMMT, a member of the AMP group. Asgard makes no statement in this PDS and has not authorised or caused the issue of it. CHANGES TO THIS DOCUMENT Information in this PDS may change from time to time. If the change is not materially adverse it may be updated on investoronline.info. A printed copy can be obtained free of charge by contacting your adviser or the Contact Centre on If we make an increase to fees (other than by indexation) we will give you written notice 30 days prior. THROUGHOUT THIS DOCUMENT References to: Investor or you Account Account balance Financial adviser AMP group Our, we or us Part 2 Investment Selection To be read as: A client of PortfolioCare Elements Investment, including any person you authorise to act on your behalf. A PortfolioCare Elements Investment account. The value of the underlying investments (including cash) held by the Responsible entity on behalf of the investor. A financial adviser holding an AFS Licence or acting as an authorised representative of a licensee. AMP and its subsidiary companies, including NMMT. NMMT as the Responsible entity or Asgard as the administrator and custodian acting solely in its capacity as agent of the Responsible Entity, as the context requires. PortfolioCare Elements Investment Product Disclosure Statement (PDS) Part 2 Investment Selection, which lists the investment options available through PortfolioCare Elements Investment. Simply look for this symbol for online information. This PDS is effective from 21 October 2013.

11 CONTENTS At a glance 2 Welcome to PortfolioCare Elements Investment 4 Getting started 6 Managing your investments 7 The risks of investing 11 Tax features 12 Fees and other costs 13 Keeping you up to date 17 Other things you need to know 19 Investor declarations, conditions and authorities 21 Direct debit request service agreement 23 1

12 AT A GLANCE Your quick and easy guide to the key features of PortfolioCare Elements Investment. General features Who can invest? Minimum initial deposit Minimum additional deposit Managed investments minimum balance Minimum cash balance Regular deposit plan Minimum withdrawal Investment options Minimum buy or sell for managed investments Auto-rebalancing Generally: anyone 18 years of age or above companies trusts partnerships, or self-managed superannuation funds. No minimum No minimum There s no minimum balance for this account. However, a minimum monthly administration fee of $4.90 a month applies to accounts with a balance of less than $10,000. 1% to 2% of your account balance Minimum $100 per deposit (monthly, quarterly, half-yearly or annually) No minimum Managed investments choose from over 90 managed funds, including: diversified multi-manager funds sector multi-manager funds single-manager funds. Fixed term deposits. $100. We ll automatically invest any amount that s $100 or more above your minimum cash balance. Available quarterly, half-yearly or annually 2

13 Fees 1,2 Contribution fee Negotiated with your financial adviser (from 0% to 5.125%) Administration fee Calculated based on your account balance (including cash). Investment fees Investment switching fee Adviser remuneration Withdrawal fee Termination fee Keeping you up-to-date Electronic reporting Paper reporting 0.59% pa A minimum administration fee of $4.90 a month applies to accounts with a balance of less than $10, % to 2.34% pa depending on the investment options you choose. May include performance fees. For the fees that apply to your investment, see Part 2 Investment Selection. Nil. Buy/sell costs may apply. A fixed percentage or dollar amount, as agreed with your financial adviser (paid monthly). Nil Nil Quarterly and/or annual PAYG statements. Annual Investor Report Annual Tax Report. Investor Online You can access detailed information about your account online at investoronline.info 24 hours a day, seven days a week Additional reporting Your adviser has access to additional tailored reports and account information from our AdviserNET website. Speak to your adviser if you would like more information on your account. Contact Centre Telephone: portfoliocare.client.services@asgard.com.au Address: PO Box 7229, Cloisters Square, WA All fees shown include GST and are net of any reduced input tax credit (RITC), unless otherwise stated. 2 Refer to pages 13 to 16 for further details of fees and costs that may apply. 3

14 WELCOME TO PORTFOLIOCARE ELEMENTS INVESTMENT PortfolioCare Elements Investment offers a diversified range of investments from specialist fund managers so you can build a flexible tailored portfolio with the ease and convenience of a single account. INVESTMENT CHOICE, EXPERTISE AND FLEXIBILITY With PortfolioCare Elements Investment, you and your adviser can create a tailored investment portfolio designed to meet your unique financial goals. With your strategy in place, you can automatically add funds to your investment via direct debt or BPAY, knowing that each contribution will be automatically invested in line with your investment profile. You can monitor your investment online whenever you like, as well as receiving regular, consolidated reports covering all your investment options. As the market changes or your needs evolve, you can adjust your investment mix at any time. You can even set up an income stream, with regular withdrawals and income distributions. FEATURES TO MAKE INVESTING EASY WHOLESALE PRICES Enjoy access to a range of wholesale managed investments that are typically not available directly to retail investors. These investments generally have lower investment fees than retail funds. AUTO-REBALANCING The auto-rebalancing feature maintains your investment profile by rebalancing your portfolio either quarterly, half-yearly or annually. This means you don t need to constantly monitor your investment or send in manual investment instructions. For more information about this feature see Rebalancing your account on page 9. REGULAR DEPOSIT PLAN With as little as $100 per month, you can set up a regular deposit plan to help you reach your investment goals sooner. You choose how much you want to invest, how often (monthly or quarterly) and for how long. See Using a regular deposit plan on page 7 for details. REGULAR WITHDRAWALS Receive a regular income by withdrawing a set amount from your account each month or quarter. You can also arrange for income distributions from your investments to be paid to you each month. See Making withdrawals on page 8 for more information. CONSOLIDATED REPORTING FOR ALL YOUR INVESTMENTS The PortfolioCare Elements Investment account consolidates all transaction reporting from various investment managers giving you and your financial adviser continuous, online access to account information. See Keeping you up to date on page 17 for details. 4 Registered to BPAY Pty Ltd ABN

15 HOW PORTFOLIOCARE ELEMENTS INVESTMENT WORKS You start by setting an investment profile in consultation with your adviser then leave the day-to-day administration to us. With your profile in place, we ll invest any capital you invest in line with your instructions, while maintaining enough cash in your account to cover your fees and transaction costs. How it works at a glance Money moving into your account: deposits money from sales of investments tax refunds income from your investments YOUR FINANCIAL ADVISER You Your financial adviser Your PortfolioCare Elements Investment account including cash and managed investments Money moving out of your account: withdrawals fees and other costs To open a PortfolioCare Elements Investment account, you need a financial adviser. Your financial adviser has access to up-to-date information and can give you further details on the underlying investments available through your account. They can also help you to: maximise your investments, making the most of strategies available to you determine the right investment mix to make your money work harder for you select the investments and products most suitable for your needs and personal circumstances. If you change your financial adviser, you must tell us immediately. 5

16 GETTING STARTED With PortfolioCare Elements Investment it s easy to start putting your financial strategy in place. Your financial adviser can assist you with selecting the investments that can help you reach your goals sooner. BEFORE YOU START This PDS includes important information about PortfolioCare Elements Investment. Please read it carefully and seek advice from your financial adviser to decide if this product is right for you. APPLYING FOR PORTFOLIOCARE ELEMENTS INVESTMENT Your financial adviser will help you apply for PortfolioCare Elements Investment. To open a PortfolioCare Elements Investment account we ll need: a completed Application, and proof of your identity. Your financial adviser can submit your application electronically on AdviserNET, or help you complete the application booklet accompanying this PDS and send it to us. PROVING YOUR IDENTITY We re required to comply with the Anti-Money Laundering and Counter-Terrorism Financing Act, which means you may need to provide identification information and verification documents when you set up your account, withdraw or transfer funds from your account, or if we change your account details or undertake transactions in relation to your account. Your financial adviser can tell you which documents we ll need. For more information see Verifying your identity on page 19. CHOOSING YOUR OPTIONS You start by setting up a personalised investment profile with the help of your financial adviser. Your investment profile lists your chosen managed funds and the proportion of your capital you d like to invest in each fund. Then, when you re ready to invest, we ll allocate your money according to your profile. We also follow your profile if you choose to rebalance your account, helping to keep your asset allocation on track. You can change your profile at any time, so you can update your asset mix quickly and easily in response to market movements and your changing needs. As part of the application process, your financial adviser will also work with you to: decide on the level of authority they ll have to operate your account negotiate the fees they ll receive for opening and servicing your account. SETTING YOUR ADVISER S LEVEL OF AUTHORITY You decide how much authority your financial adviser has to send us instructions for your PortfolioCare Elements Investment account. You may choose to give your adviser a limited authority to operate. This allows your financial adviser to electronically send us instructions to buy and sell managed investments on your behalf, using AdviserNET. The limited authority to operate applies not only to this account, but to any other accounts you hold with us (in the same name and with the same account number). If you change your financial adviser or cancel your financial adviser s limited authority to operate, you must tell us immediately. If you change your financial adviser and do not inform us, we will continue to act on your existing authority to operate. CONFIRMING THAT YOUR NEW ACCOUNT IS OPEN When we receive your application and set up your account, we ll send you: A Welcome Letter confirming your account details. A Personal Identification Number (PIN) to access Investor Online. To keep your PIN safe, we ll send it separately to your Welcome Letter. Once we ve received your initial contribution, we ll purchase investments for you in line with your investment profile. We ll also deduct any fees that are due. 6

17 MANAGING YOUR INVESTMENTS Investing is easy, with PortfolioCare Elements Investment. Simply set your investment profile, add funds, and we ll take care of the rest. With PortfolioCare Elements Investment, you ll enjoy the benefits of access to managed funds and fixed term deposits with the convenience of a single consolidated account. It s easy to make deposits, and you can withdraw funds at any time, or choose to receive a regular income with a monthly or quarterly withdrawal. And with the help of your financial adviser, your PortfolioCare Elements Investment can play a key part in your overall financial plan, helping you and your family achieve your lifestyle goals now and in the future. YOUR CASH BALANCE When you make a deposit to your PortfolioCare Elements Investment account, we credit it to your cash balance, which is held in an interest-bearing account with St. George and/or Westpac. All your investment purchases are funded from your cash balance, together with any fees and costs (including taxes and government charges). If you sell investments or receive distributions or other payments, the proceeds will be credited to your cash balance. You can monitor your cash balance by regularly checking the details of your account on Investor Online. MANAGING EXCESS CASH When your cash balance is $100 or more than the required amount, we use the excess to buy managed investments. However, you can instruct us not to invest excess cash or nominate an amount higher than $100. Your adviser must give us instructions to do so through AdviserNET. If you instruct us not to invest excess cash, your cash balance will be returned to the required amount due to autorebalancing and your investment profile instructions. MAKING PAYMENTS TO YOUR ACCOUNT You can deposit money to your cash balance using: BPAY direct debit cheque. You can view a record of your deposits on the Transaction Details screen on Investor Online. When we receive a payment, we ll take out any fees that apply, then invest amounts above the minimum cash balance in line with the investment profile you set up with your financial adviser. Alternatively, you can submit an investment instruction for that deposit online, through your financial adviser. Making payments with BPAY BPAY is a quick, easy and secure payment facility that lets you directly transfer funds to your PortfolioCare Elements Investment account electronically using your phone or internet banking service. All you need is: your reference number (generated when your account is opened) your biller code which is When you pay by BPAY, we ll take out any contribution fees, then invest your money in line with your standing instructions. Alternatively, you can submit a deposit instruction online, through your financial adviser. By using a biller code to make a BPAY deposit, you acknowledge that you have received Product Disclosure Statements (PDSs) for the managed investments and cash products in your PortfolioCare Elements Investment and agree to receive PDSs (including information about significant events or matters affecting them) electronically on Investor Online. For more information about BPAY refer to the BPAY flyer on Investor Online. USING A REGULAR DEPOSIT PLAN Your financial adviser can help you set up regular payments to your account by direct debit from another bank account. When you set up a regular deposit plan, you choose: how much you want to invest the frequency of your deposits (monthly, quarterly, half-yearly or annually) the duration of your plan. When you set up your regular buy instruction, you acknowledge and agree that your future investments will be made even though you may not have received the latest PDS for that investment, or information about material changes or significant events that may affect that investment. This includes information that the responsible entity of the investment is required to give a person who acquired an interest in the managed fund directly, unless exceptions apply. 7

18 8 Where funds aren t available for your regular deposit plan and we ve bought managed investments on your behalf, we ll reverse these transactions within a reasonable amount of time. This may result in further buy/sells and market movements that may negatively affect your account balance. We will not be held liable for transactions that occur in these instances. Download the latest version of your investment option s PDS from Investor Online. MAINTAINING A MINIMUM CASH BALANCE To cover your ongoing fee payments and other costs, you need to maintain a minimum cash balance. The minimum is set at between 1% and 2% of your account balance. If your cash balance falls below that amount, we ll sell some of your managed investments using either the Priority Sell Method or the Default Sell Method, until your balance is back above the minimum. Priority Sell Method You can give us a standing Priority Sell instruction for your managed investments, telling us the order in which you would like your managed investments to be sold to top up your cash balance. We ll need to do this if it falls below the minimum, or to fund investment purchases. Default Sell Method If you haven t set up a Priority Sell instruction or if the net value of the managed investments you nominated under the Priority Sell instruction is insufficient, we ll use the Default Sell Method. We ll try to sell your managed investments in proportion to their estimated current value, subject to price and market changes that may occur during the selling process. Negative cash balance If your cash balance falls below zero at any time, we ll charge interest on the negative balance at the same rate as we pay interest on positive cash balances. Your cash balance could become negative due to fees, taxes and withdrawals. Switching between investment options could also cause your balance to fall. For that reason, it s important for you or your adviser to regularly check your cash balance online. MAKING WITHDRAWALS You can withdraw funds from your cash balance at any time, provided you have the funds to cover the withdrawal. You can monitor your cash balance by regularly checking the details of your account on Investor Online. If you request a withdrawal, we ll start by taking the money from your cash balance. If there is not enough money in your cash balance, we ll sell managed investments using the Priority Sell Method or Default Sell Method to make up the difference (if necessary). See Maintaining a minimum cash balance on page 8 for details. The price you receive on a managed investment will depend on when the investment manager receives and processes your request. If the sell amount is 95% or more of the value of your entire holding in a managed investment, we ll sell your entire holding in that managed investment. Selling your investments generally takes 7 10 business days, however timeframes may vary depending on the time taken by external fund managers to complete processing of sale transactions. They can also be affected by withdrawal restrictions on your investment option. To find out which investment options have withdrawal restrictions, see Part 2 Investment Selection. A withdrawal may also be delayed if a buy or sell has not been confirmed. Refer to the underlying fund manager s disclosure documents for further information relating to withdrawal conditions associated with the underlying investment options. You can view details of withdrawals on your account using the Transaction Details pages on Investor Online. Types of withdrawals You can withdraw money from your account whenever you choose, either as a one-off payment, or using a regular withdrawal or distribution payment to give you an income stream. Type of withdrawal When? How? One-off Any time Complete a payment request. Regular Income distribution Monthly Quarterly (end of March, June, September and December) Monthly Complete the regular withdrawals section of the application or account amendment forms. We ll pay the withdrawal to your nominated bank account. Complete the income distribution withdrawals section of the application or account amendment forms. We ll pay your distributions to your nominated bank account. You can view a record of all your withdrawals on the Transaction Details screen on Investor Online. ONE-OFF WITHDRAWALS To make a one-off withdrawal, simply submit a payment request. If you can fund a withdrawal from your cash balance, we ll try to pay you within five working days of receiving your payment request. If we have to sell any managed investments we ll try to pay you within five working days of receiving the sale proceeds.

19 REGULAR WITHDRAWALS Because we don t charge an exit fee, you can use regular withdrawals and income distributions to provide an affordable income stream. You choose the amount you want to receive and we ll pay it into your bank account either monthly or quarterly. We fund regular withdrawals first from your cash balance, then from selling your managed investments, using either the Priority Sell or Default Sell Method (see page 8 for details). Remember, switching, rebalancing and changing your investment profile will result in the sale of some or all of your investment options. This may result in capital gain or loss which can affect the tax you need to pay on your account. While there are no fees for switching or changing your investments, you may incur transaction costs known as buy/sell costs. See Buy/sell costs on page 15 for details. You should always talk to your financial adviser before making any decision about your investment choices. YOUR MANAGED INVESTMENTS PortfolioCare Elements Investment has over 90 managed investments to choose from, often at wholesale prices not generally available to direct retail investors. With the help of your financial adviser, you choose your managed investments and the percentage to be allocated to each one. This is known as your investment profile. For more information about the managed investments you can choose from and how to set up your investment profile, see Part 2 Investment Selection or speak to your financial adviser. Before you invest in any managed investment, you must receive a PDS for it. You can get a copy from your financial adviser or from Investor Online. We do not consider or take labour standards or environmental, social or ethical considerations into account in making available the underlying investments. You can find out more about each option s investment policies by reading the PDS or other disclosure documents for that investment. Changes to managed investments It s important to note that the PDS for your selected investments may change, and there may be material changes to your investments that are important to know about before you invest. However, if you have selected BPAY or a regular deposit plan you may not have received the latest PDS for that investment. So by choosing these account features, you acknowledge that you won t receive an updated PDS or other disclosure document from us. This information will be available on request, or from Investor Online at any time. Download the latest version of your investment option s PDS from Investor Online. CHANGING YOUR INVESTMENTS You can change your investment profile or switch from one managed investment to another at any time. You can also ask us to rebalance your account to the proportions set out in your investment profile either regularly or at your request. Before you decide to rebalance, change your investment profile or switch managed investments, you must also receive a copy of the PDS or other disclosure document for any new underlying managed investments. This information is available from Investor Online or from your financial adviser. CHANGING YOUR INVESTMENT PROFILE You can change your investment profile by completing the form in Part 2 Investment Selection and returning it to us. Your financial adviser can also complete this form online using AdviserNET. We ll buy and sell managed investments according to your new instructions, so that your current holdings are rebalanced to match your new investment profile. We ll also invest any additional funds deposited to your account according to your new investment profile. SWITCHING You can switch between investment options at any time. Buy and sell instructions can be submitted on the same day, however please note that if there is insufficient cash in your cash balance to cover the purchase we will wait for the proceeds from the sell instruction, or another deposit amount, to be received before we submit the buy. The entire purchase amount will need to be available in your cash balance before we act on the buy instruction. Buying and selling on the same day significantly reduces the time taken to complete your switch and gives you greater exposure to investment markets. You should note that some managed investment funds may take an extended timeframe to pay sale proceeds. Refer to underlying fund managers disclosure documents for further information relating to withdrawal timeframes. If you nominate to sell part of your holdings in any managed investment fund (via a partial withdrawal request or as part of a regular sell instruction), and the sale amount exceeds 95% of the current asset value, a full sale of the asset will be performed. REBALANCING YOUR ACCOUNT At any time you can ask us to rebalance your portfolio, buying and selling investments to ensure that the proportion invested in each holding matches your original profile. Your adviser can do this for you through AdviserNET. You can also set up your account to regularly rebalance your portfolio. If you choose this option, your account will be rebalanced: quarterly (between 15 and 24 February, May, August and November) half-yearly (between 15 and 24 February and August), or annually (between 15 and 24 August). 9