Scheme Provider. Fisher Funds KiwiSaver Scheme INVESTMENT STATEMENT & APPLICATION FORM

Transcription

1 Scheme Provider KiwiSaver Scheme INVESTMENT STATEMENT & APPLICATION FORM Prepared at 1 JULY 2013

2 Scheme Provider Supplement to the KiwiSaver Scheme Investment Statement dated 1 July 2013 This Supplement dated 17 June 2015 forms part of the KiwiSaver Scheme Investment Statement dated 1 July 2013 (as distributed by First Credit Union) and should be read in conjunction with the Investment Statement. $1,000 kick-start contribution amount As at the date of this Investment Statement one of the benefits of joining KiwiSaver was that the Government would make a kick-start contribution of $1,000 to your KiwiSaver Scheme account. The KiwiSaver Budget Measures Act 2015, provides: the $1,000 kick-start payment is no longer available to people enrolling in a KiwiSaver scheme on or after 2pm, 21 May 2015; and members need to leave at least $1,000 in their KiwiSaver account if they wish to make a first home or second chance home buyer withdrawal. QROPS Also as at the date of this Investment Statement, the KiwiSaver Scheme ( the Scheme ) was listed as a Qualifying Recognised Overseas Pension Scheme ( QROPS ) in the UK. As a QROPS, transfers from a UK pension scheme to the Scheme were not classed as unauthorised payments and therefore did not attract penalties imposed by Her Majesty s Revenue and Customs ( HMRC ) on the transfer value. On 1 May 2015 we were informed by HMRC of changes effective from 6 April 2015 in respect of the criteria enabling overseas schemes to continue to be classified as a QROPS. The change to criteria provides that in order to qualify as a QROPS, overseas schemes must not allow withdrawals under the age of 55 other than for cases of ill health (as defined by UK legislation). The Scheme, along with all other KiwiSaver schemes, allows early withdrawals not only for cases of serious illness, but also in other prescribed circumstances, including for the purchase of a first home and in cases of significant financial hardship (all subject to conditions). The effect of these changes means that the Scheme is unable to retain its QROPS status, and therefore any future transfers could be subject to penalties and taxes of up to 55% of the amount transferred payable to HMRC. We have therefore made the decision to no longer accept transfers from UK pension schemes. This Supplement amends the following sections of the Investment Statement. Key information summary What are the benefits (page 4) The $1,000 Government kick- start payment is no longer available to people enrolling in a KiwiSaver scheme on or after 2pm, Thursday 21 May When can I withdraw my money from KiwiSaver? (page 4) When making a first home or second chance withdrawal you must leave a minimum balance of $1,000 in your KiwiSaver scheme account. How much do I pay? Transfers from UK or Australian schemes (page 9) Her Majesty s Revenue and Customs ( HMRC ) have advised a change in the rules applicable to overseas pension schemes in order for those schemes to be recognised as Qualifying Recognised Overseas Pension Schemes ( QROPS ). Under the new rules the KiwiSaver Scheme will no longer be recognised as a QROPS. UK pension fund transfers to non QROPS can attract penalties and taxes in the UK of up to 55% of the value of the transfer. As at the date of this Supplement we are no longer facilitating UK pension transfers. 06/15 FISHER FUNDS i

3 How much do I pay? Government subsidies (page 10) You will not receive a $1,000 Government kick-start contribution if you join a KiwiSaver scheme after 2pm, Thursday 21 May What returns will I get? Home purchase (page 14) Home purchase (page 15) Can the investment be altered? Transfers (page 19) You must leave a $1,000 balance in your KiwiSaver account. If you make a partial first home or second chance buyer withdrawal, we will release your and your employer s contributions and investment gains first, and your Tax Credit Amount second, subject to the $1,000 minimum balance and any amounts transferred from an Australian complying superannuation scheme that you must leave in your account (though post-transfer investment earnings on those funds may be withdrawn). The purchase of an interest in a building on Maori land (where the building s intended principal use is occupation as a private residence) and where the building is or is intended to be the principal place of residence for the member or for the member and the member s family, qualifies as a first home. Where the sale and purchase agreement is conditional, a withdrawal may be made, but must be held by a stakeholder, who may only release the funds in certain circumstances. See the Prospectus for more details. The home purchase subsidy is now referred to as the KiwiSaver HomeStart Grant. If you have been regularly contributing to one or more KiwiSaver schemes or complying superannuation funds for at least three years and you qualify, you could get: $1,000 for every year you have been contributing (up to a maximum of $5,000) if you are buying an existing home; or $2,000 for every year you have been contributing (up to a maximum of $10,000) if you are buying or building a new home. For more details about the required contribution levels, and all the other qualifying criteria for the HomeStart Grant, see You are no longer able to transfer funds to the Scheme from a UK pension fund. Glossary Kick-start amount (page 22) Application Form Transfers from other superannuation schemes People enrolling in a KiwiSaver scheme on or after 2pm, 21 May 2015 will not receive the kick-start payment. You are no longer able to transfer funds to the Scheme from a UK pension fund. ii FISHER FUNDS 06/15

4 Important information (The information in this section is required under the Securities Act 1978.) Investment decisions are very important. They often have long-term consequences. Read all documents carefully. Ask questions. Seek advice before committing yourself. Choosing an investment When deciding whether to invest, consider carefully the answers to the following questions that can be found on the pages noted below:. Page What sort of investment is this?... 6 Who is involved in providing it for me?... 6 How much do I pay?... 8 What are the charges?...11 What returns will I get?...13 What are my risks?...17 Can the investment be altered?...19 How do I cash in my investment?...20 Who do I contact with inquiries about...20 my investment? Is there anyone to whom I can complain...20 if I have problems with the investment? What other information can I obtain...21 about this investment? In addition to the information in this document, important information can be found in the current registered prospectus for the investment. You are entitled to a copy of that prospectus on request. The Financial Markets Authority regulates conduct in financial markets The Financial Markets Authority regulates conduct in New Zealand s financial markets. The Financial Markets Authority s main objective is to promote and facilitate the development of fair, efficient and transparent financial markets. Financial advisers can help you make investment decisions Using a financial adviser cannot prevent you from losing money, but it should be able to help you make better investment decisions. Financial advisers are regulated by the Financial Markets Authority to varying levels, depending on the type of adviser and the nature of the services they provide. Some financial advisers are only allowed to provide advice on a limited range of products. When seeking or receiving financial advice, you should check - the type of adviser you are dealing with: the services the adviser can provide you with: the products the adviser can advise you on. A financial adviser who provides you with personalised financial adviser services may be required to give you a disclosure statement covering these and other matters. You should ask your adviser about how he or she is paid and any conflicts of interest he or she may have. Financial advisers must have a complaints process in place and they, or the financial services provider they work for, must belong to a dispute resolution scheme if they provide services to retail clients. So if there is a dispute over an investment, you can ask someone independent to resolve it. Most financial advisers, or the financial services provider they work for, must also be registered on the financial service providers register. You can search for information about registered financial service providers at You can also complain to the Financial Markets Authority if you have concerns about the behaviour of a financial adviser. This is an Investment Statement for the purposes of the Securities Act For more information about investing, go to 2

5 Contents Important information...2 Key information summary...4 Matters required to be disclosed by the Securities Act Glossary...22 So where do I sign?...24 Application Forms and Direct Debit Authority...27 Changing Your Investment Options form

6 Key information summary Key terms Further information For more information What is KiwiSaver? Who can join the Scheme? KiwiSaver is a voluntary savings initiative that was set up by the government. It is designed to help you grow a retirement fund that can help secure the lifestyle you would like to enjoy in later years. To be eligible to join a KiwiSaver Scheme you must be: normally living in New Zealand, a New Zealand citizen (or entitled to permanent residence), and under the New Zealand Superannuation qualification age (currently 65 years of age), unless you are transferring from another KiwiSaver Scheme. See page 6 See page 6 What are the benefits? The government provides a one-off $1,000 kick-start contribution when you first join KiwiSaver. If you are over 18 and below the KiwiSaver Qualifying Age (see When can I withdraw my money from KiwiSaver? below), and contributing to a KiwiSaver Scheme account through your salary or wage, your employer will generally also contribute a minimum of 3% (less tax) of your gross salary or wage. If you are over 18 (and below the KiwiSaver Qualifying age) you may also receive a member tax credit of up to $521 a year (50 cents for every $1 you contribute up to a maximum of $1,043). You may be entitled to use your KiwiSaver savings to help you buy a first home, and you may also be entitled to a first home purchase subsidy. See pages 8 to 10 and 14 When can I withdraw my money from KiwiSaver? Who is the Scheme provider? Generally, you will not be able to access your KiwiSaver savings until you reach the KiwiSaver Qualifying Age. This is the New Zealand Superannuation age (currently 65 years of age) or once you have been a member of a KiwiSaver scheme or a complying superannuation fund for five years, whichever is later. In limited circumstances you may be eligible for an early withdrawal of your KiwiSaver savings (which may or may not include the government kick-start contribution or member tax credits). These circumstances include: buying your first home; significant financial hardship; serious illness; permanent emigration (other than to Australia); death (in which case your KiwiSaver savings will be paid to the executors or administrators of your estate); and where any Act or Court order requires a withdrawal to be made. Management Limited is the Manager and provider of the Scheme. See pages 13 to 15 See pages 6 and 7 4

7 Key terms Further information For more information What funds can I invest in? How much do I have to pay? What are the risks? What are the charges? Does anyone guarantee the investment? Does the Scheme use related parties? Who can I contact for further information? All Scheme members can select from three investment strategies (a carefully designed investment mix to suit a specific investor profile) or you can build your own investment strategy by choosing one or a mix of the two individual Funds below. Conservative Fund - principally invests in Cash and Fixed Interest securities, but may also invest in Shares, Infrastructure securities and Property securities (in each case locally and/ or internationally). The Fund invests in a higher proportion of income assets and will have lower potential returns and less volatility than the Growth Fund. Growth Fund - principally invests in growing companies in all or any of the New Zealand, Australian and other international markets. The Fund invests in a higher proportion of growth assets that have the potential for higher returns in the long term but experience more volatility. For help with choosing an investment strategy see pages 32 to 43 of the accompanying with you all the way booklet. If you are an employee, you are currently required to contribute from your after-tax salary or wages at the rate of 3%, 4% or 8%. You can change your contribution rate, or make regular or lump sum contributions, at any time. You can take a contributions holiday at certain times (subject to certain conditions). If you are self-employed or not working, you can choose the amount that you contribute. There is currently no minimum contribution requirement. You can choose to make regular contributions or lump sum payments to your KiwiSaver Scheme account. All investments involve a degree of risk. The potential return on an investment is generally related to the risk of the investment. The key factor that determines your returns is the investment performance of the Fund(s) you are invested in. The performance of a Fund is determined by the Fund s asset allocation. Generally, Funds that are invested in a higher proportion of growth assets will have the potential for higher returns in the long term but experience more volatility. Funds that are invested in a higher proportion of income assets will have lower potential returns but have less volatility and therefore have less risk attached to them. An administration fee is deducted from your KiwiSaver Scheme account. Each Fund is charged a management fee which is paid to us. A trustee, custody and unit pricing fee is paid to the Trustee. A performance fee may be payable on the Growth Fund only, subject to beating the performance benchmark and other criteria. These fees are deducted from the assets of the Fund. Each Fund may invest in other funds which may charge fees and incur expenses. Both Funds are also charged expenses in respect of the Scheme. None of the Crown,, the Trustee, or any other person or company, guarantees or promises the repayment of, or returns on, investments in the Scheme. There are no related party transactions. If you have any questions about your account, you can contact your financial adviser (if you have one), us at kiwisaver@fisherfunds.co.nz, call us on 0800 FFKIWI ( ) or write to us at our address. You can also monitor your account and update your personal details via our 24/7 secure online access facility. See page 6 See page 8 See pages 17 and 18 See pages 11 to 13 See page 7 See page 20 5

8 Matters required to be disclosed by the Securities Act What sort of investment is this? This Investment Statement offers membership interests in the KiwiSaver Scheme (the Scheme), which is a KiwiSaver scheme registered under the KiwiSaver Act To be eligible to join a KiwiSaver Scheme you must be: normally living in New Zealand, a New Zealand citizen (or entitled to permanent residence), and under the New Zealand Superannuation qualification age (currently 65 years of age), unless you are transferring from another KiwiSaver Scheme. Investment Funds The principal purpose of the Scheme is to provide you with retirement benefits. The Scheme has two investment funds, the Growth Fund and the Conservative Fund (each a Fund and together the Funds) and you can choose either of these or a mix of the two. The Growth Fund principally invests in growing companies in all or any of the New Zealand, Australian and other international markets, but may also: gain exposure to larger companies by investing in securities such as exchange traded funds or derivatives (in addition to holding Shares in the companies themselves); and invest in Infrastructure, Property and Fixed Interest securities. The Conservative Fund principally invests in Cash and Fixed Interest securities, but may also invest in Shares, Infrastructure securities and Property securities (in each case locally and/or internationally). We have complete discretion when investing the monies held for each Fund. For example, there are no formal benchmark asset allocations, or asset allocation ranges, to achieve the Funds investment objectives. This discretion is subject to confining each Fund s investments to the permitted Asset classes for that Fund, and to the provisions of the Scheme s Trust Deed and all governing legislation. When you invest in the Scheme, your money is pooled with the investments of other members of the Scheme and invested for your retirement. Units in the Funds Your interest in the Scheme is represented by units in one or both of the Funds (as applicable). The value of the units is not fixed it varies depending on the value of the relevant Fund s Assets. Movements in financial markets will affect the price of the units in a Fund, but not the number of units you hold. The value of your units can fall if the value of the Fund s Assets falls. The unit price for each Fund is worked out on each valuation date by calculating the market value of the Assets of that Fund: excluding amounts for which units are to be, but have not yet been, issued; and including amounts debited, transferred or withdrawn from accounts for which units are to be, but have not yet been, cancelled; and adding any income that is due to be received by the relevant Fund, then deducting all liabilities (including tax, except for tax paid on behalf of members) then dividing by the number of units on issue. General The Assets of the Scheme are managed by a professional investment manager, Management Limited (), and are held by Trustees Executors Limited (the Trustee) which is independent of. Certain terms in this Investment Statement have defined meanings. The terms, we, us or our refer to Fisher Funds Management Limited as the Manager of the Funds. The terms, you and your refer to any member. Capitalised terms, if not defined elsewhere in this Investment Statement, are explained in the Glossary on pages 22 and 23. All information and statements made in the Investment Statement are accurate as at the date of this Investment Statement. Who is involved in providing it for me? The name of the Scheme is the KiwiSaver Scheme. The Scheme was established by a Trust Deed dated 11 June 2007 and started operating on 1 July The Scheme s current Trust Deed is dated 17 August The Scheme is a defined contribution scheme, which means the amount of an investment, when withdrawn, will depend on the contributions made to the Scheme for your benefit, the returns achieved on those contributions and the tax and fees deducted.

9 The Manager The Manager of the Scheme is, an investment management company established in 1998 by Carmel Fisher. We use our investment expertise to select and manage the Assets held by the Scheme. We may also appoint other, external, investment managers if we consider this to be in the best interests of the Scheme and its members. We issue membership interests in the Scheme and are legally responsible for the management and administration of the Scheme. We are also the promoter of the Scheme. Our principal activity is managing the investments for the Scheme, the range of unit trusts, Kingfish Limited, Barramundi Limited, Marlin Global Limited and a number of wholesale investors. Our registered office and street address is: Management Limited Level 1, Crown Centre Hurstmere Road Takapuna Auckland 0622 Our address may change from time to time but the current address is always available online at We have delegated to the Securities Services Division of Trustees Executors Limited the performance of certain administration management functions for the Scheme. Trustees Executors Limited (whose address is set out under The Trustee below) therefore acts as an administration manager of the Scheme. All investment and withdrawal applications and other correspondence should be forwarded to: Management Limited c/o Securities Services Division Trustees Executors Limited PO Box 409 Wellington 6140 Directors of The directors of Management Limited are: Carmel Fisher BCA, CFIP Hugh Fisher Frank Jasper Sir John Wells KNZM, ACA, FCIS, FCCM Kevin Murphy CA Anne Blackburn MA Lib Petagna BCA James Hill FCA (UK) CA (NZ) The principal address of Carmel Fisher, Hugh Fisher, Frank Jasper, Sir John Wells, Anne Blackburn and James Hill is in Auckland. The principal address of Kevin Murphy and Lib Petanga is in New Plymouth and Wellington respectively. Each of the Directors may be contacted at the address of (shown above). directors may change from time to time. A list of current directors is available online at The Trustee The Trustee of the Scheme is Trustees Executors Limited (the Trustee). The Trustee supervises the management and administration of the Scheme and is legally responsible for holding all Scheme assets itself or through nominees. The Trustee s principal place of business is: Level 5, 10 Customhouse Quay, PO Box 3222, Wellington 6140 and its contact address is: c/- Trustees Executors Limited Level Queen Street PO Box 4197 Shortland St Auckland 1140 The Trustee s address may change from time to time. Their address is available online at under Corporate Trust/Contact our Corporate Trust Team. The Trustee holds a licence to act as trustee for a range of financial products (including KiwiSaver Schemes) under the Securities Trustees and Statutory Supervisors Act Their current licence expires on 16 January 2018 and is subject to reporting conditions. No guarantee None of the Crown,, the Trustee or any other person guarantees the performance or obligations of the Scheme or any Fund. In particular, there is no Crown guarantee of any KiwiSaver Scheme, or of any investment product of a KiwiSaver Scheme. Responsible investment Responsible investment, including environmental, social, and governance considerations, is not taken into account in the investment policies and procedures of the Scheme. In managing the Growth Fund (and managing the allocations to Shares from time to time within the Conservative Fund) we are focussed on identifying and investing in great companies. We find that managers of those companies are increasingly aware of environmental, social and governance issues and factor those into their decision-making as they become more important to their shareholders, employees and wider community. We consider management s ability to conduct its business in a responsible way as part of our process of identifying companies in which to invest. We find that consistently good companies seldom achieve that status without satisfying their responsibilities to their staff, clients, community and environment. 7

10 We take a similar view when choosing Fixed Interest securities. It is essential that bond issuers can repay their debts. Entities with a sustainable business model as well as a strong balance sheet are better placed to meet their repayment obligations. We think management teams must consider and respond to social and environmental responsibilities to ensure the long term future of their businesses. How much do I pay? Contributions required employees Your contribution rate You can choose to contribute to the Scheme an amount equal to 3%, 4% or 8% of your gross Salary or Wages. If you do not make a choice, your required contribution rate will be 3%. For contribution purposes, Salary or Wages is as defined in the KiwiSaver Act, but generally means your employment-related gross income including: overtime, bonuses and allowances (other than accommodation benefits, and any taxable allowances for accommodation or living costs overseas) but excluding exempt income payments, employer superannuation contributions and redundancy payments; parental leave payments out of public money; and ACC compensation. Your contributions will be deducted by your employer from your after-tax Salary or Wages and paid to Inland Revenue, which then pays them to the Scheme. If no tax deductions are required to be made from your Salary or Wages under the PAYE rules (and you are not a private domestic worker) then you are not required to contribute to your KiwiSaver Scheme account from Salary or Wages. Contributions from your employer If you are 18 or more years of age and have not reached your Qualifying Date (see the Glossary at page 22), then (except as outlined right) your employer must contribute to your KiwiSaver Scheme account for your benefit while you are contributing from Salary or Wages. The compulsory minimum employer contribution rate is a before-tax amount equal to 3% of your Salary or Wages (excluding, for this purpose, parental leave payments out of public money and ACC compensation). Ongoing contributions by your employer to an existing registered superannuation scheme for your benefit will count towards your compulsory employer contribution entitlements if your employer provided employees with access to that existing scheme on 17 May 2007 and: your employer employed you before 1 April 2008, and before then made (or agreed to make) contributions to the existing scheme for your benefit; or you are covered by a collective agreement that was in force before 17 May 2007 and has yet to expire, under which your employer is required to contribute to the existing scheme for your benefit. The employer s contributions to the existing scheme will only count as compulsory employer contributions to the extent that they vest within five years after being paid. Employer contributions or credits to an existing registered superannuation scheme for your benefit will also discharge or count towards your compulsory employer contribution entitlements in certain other limited circumstances prescribed in the KiwiSaver Act. All employer contributions to KiwiSaver Schemes are taxed when paid (see Tax on contributions on page 17). Contributions required people who are self-employed or not employed If you are under 65 and self-employed (e.g. a sole trader running your own business), or are not working, you may contribute by completing the Application Form on page 27 and: sending a personal cheque to Management Limited c/o Securities Services Division, Trustees Executors Ltd, PO Box 409, Wellington, 6140 (please make your cheque payable to KiwiSaver Scheme and cross it Account Payee Only); by regular direct debit (please complete the Direct Debit Authority on page 39 - the minimum payment amount regardless of frequency is $10); or by Internet banking ( bank account number is Enter your Fisher Funds account number (if known) or your name and IRD number as references). If you are an employee at one workplace (despite being self-employed at another) then you are an employee for the purposes of the KiwiSaver Act. You will be required to contribute to the Scheme at not less than the prescribed minimum rate (see Your contribution rate on page 8) out of your Salary or Wages from that employment. KiwiSaver and children/minors If you are under 18 you can join KiwiSaver without having to contribute, and there is no minimum annual contribution required, unless you are employed. If you are employed then you must contribute from your Salary or Wages at not less than the prescribed minimum rate (see Your contribution rate on page 8) until such time as you are eligible for a contributions holiday. Employers are not required to make compulsory employer contributions on behalf of under 18s. Please note that children/minors do require an IRD number and that: persons aged under 16 may only be enrolled into a KiwiSaver Scheme by all their legal guardians (acting jointly) and may not enrol themselves; and persons aged 16 or 17 must co-sign with one legal guardian in order to enrol into a KiwiSaver Scheme, unless they have no legal guardian. The Application Forms contain these requirements. 8

11 State sector employees If you are a state sector employee who is already contributing to a state sector superannuation scheme, you can still join the Scheme. You will be required to contribute to the Scheme an amount equal to 3%, 4% or 8% of your gross Salary or Wages. Your contributions will be deducted by your employer from your after-tax Salary or Wages and paid to Inland Revenue, which will then pay them to the Scheme. If you are in this category then if you join a KiwiSaver Scheme you will not be able to receive additional employer contributions over and above any that continue being made to your existing superannuation scheme. Inland Revenue holding account If the Scheme is the first KiwiSaver Scheme that you join, then contributions received by Inland Revenue during the three month period after the earlier of: the date when the first Scheme contribution for your benefit is received by Inland Revenue; and the date when Inland Revenue is given notice (or otherwise knows) that you are a member of the Scheme, will generally not be passed on to the Scheme until as soon as practicable after the end of that three month period. During that period, your contributions will be held by Inland Revenue in an interest-bearing holding account. On an ongoing basis, contributions paid through Inland Revenue will also be held in that interest-bearing holding account, but paid to the Scheme as soon as practicable after Inland Revenue receives them. Additional contributions You may also: contribute amounts additional to those deducted from your Salary or Wages; and/or arrange for other persons, including your employer, to make additional contributions for your benefit. Additional contributions (other than employer contributions) may be paid: to Inland Revenue: by Internet banking (details on how to make these payments are provided on the Inland Revenue website, or by depositing a lump sum at any Westpac branch (you will need to give your name, address, IRD number and whatever other information it may require); or direct to the Scheme by cheque, payable to KiwiSaver Scheme at: Management Limited, c/o Securities Services Division, Trustees Executors Limited, PO Box 409, Wellington, 6140; or direct to the Scheme by direct debit, through selecting this option on your Application Form and returning an attached Direct Debit Authority form to Management Limited, c/o Securities Services Division, Trustees Executors Limited, PO Box 409, Wellington, 6140; or direct to the Scheme by Internet banking ( bank account number is: Enter your account number (if known) or your name and IRD number as references). Direct lump sum investments must be made in amounts of at least $100. The minimum direct debit amount is $10 per payment. We accept voluntary contributions to the Scheme on the assumption that they are cleared funds. Investments may be processed prior to positive confirmation that funds have cleared through the banking system. Should a cheque or direct debit be dishonoured we must immediately sell the units purchased. If the unit price has decreased between when you invested and when your contribution is dishonoured, you will incur the shortfall. All employer contributions to a KiwiSaver Scheme (both compulsory and voluntary) must be paid via Inland Revenue, which then pays them to that KiwiSaver Scheme. Transfers from other KiwiSaver Schemes You may only be a member of one KiwiSaver Scheme at a time. You may transfer your benefit from (and cease to be a member of) another KiwiSaver Scheme at any time. Transfers from UK or Australian schemes The Scheme is approved as a qualifying recognised overseas pension scheme (QROPS) under UK legislation. is therefore permitted to accept, and is accepting, transfers to the Scheme from UK pension schemes. You are permitted to transfer funds from an Australian complying superannuation scheme to a KiwiSaver Scheme which offers that facility if you have permanently emigrated or returned to New Zealand. offers the transfer facility. In a Bill currently before Parliament, a new regime for taxing withdrawals for foreign superannuation schemes is proposed. Under this regime, transfers to a KiwiSaver Scheme from a foreign scheme (other than an Australian complying superannuation scheme) are treated as withdrawals and are potentially subject to tax. If you are considering making a transfer from a UK pension scheme into the Scheme, you should consult your tax adviser. For more information about transfers from UK or Australian schemes, call us on 0800 FFKIWI ( ) or visit our website ( 9

12 10 Government subsidies Kick-start Contribution Amount (kick-start) If this Scheme is the first KiwiSaver Scheme you join, the Government will make a kick-start contribution of $1,000 to your KiwiSaver Scheme account for your benefit approximately three months after the earlier of the date when Inland Revenue receives your first contribution to the Scheme and the date when Inland Revenue is notified, or otherwise knows, that you are a member of the Scheme. Alternatively, if you have transferred a locked in balance to the Scheme from a Complying Superannuation Fund and were a member of that Complying Superannuation Fund for three or more months, the kick-start will be paid to the Scheme as soon as practicable after Inland Revenue is notified of the transfer. If you have split your contributions between the Growth Fund and the Conservative Fund, then any kick-start contribution paid to the Scheme will be applied to purchase units in each Fund in the same proportions as the contributions split in place when the kick-start is received. See What returns will I get? on pages 13 to 15 for the restrictions on withdrawing your kick-start. KiwiSaver Member Tax Credit While you contribute to the Scheme and reside mainly in New Zealand you will be eligible (if you are aged between 18 and your Qualifying Date) for an annual Government contribution (called a KiwiSaver Member Tax Credit) matching your contributions to the Scheme at the rate of 50 cents per dollar up to a maximum KiwiSaver Member Tax Credit of $ a year (which equals $10 a week). This means that you will maximise your KiwiSaver Member Tax Credit entitlements by contributing to the Scheme not less than $1, a year (which equals $20 a week). A year for KiwiSaver purposes is 1 July to 30 June. The KiwiSaver Member Tax Credit will be available to you regardless of your employment status. Your KiwiSaver Member Tax Credit entitlements will commence on the earlier of the date when a KiwiSaver account is first opened for you and the first day of the month when (as applicable): deductions from your Salary or Wages start; or your KiwiSaver Scheme provider receives your first contribution; or Inland Revenue receives the first contribution paid for your benefit. This means that if you join KiwiSaver part way through a KiwiSaver year (1 July to 30 June) then your KiwiSaver Member Tax Credit entitlements for that year will be calculated based on the proportion of the year that you were a member. We will claim a KiwiSaver Member Tax Credit annually on your behalf. When you withdraw from the Scheme (unless you are transferring to another KiwiSaver Scheme, in which case the provider of that other scheme may claim the KiwiSaver Member Tax Credit on your behalf) we will be able to claim for your benefit a KiwiSaver Member Tax Credit for the period from the start of the relevant KiwiSaver year. If after you have withdrawn from the Scheme without transferring to another KiwiSaver Scheme (or by reason of death or Serious Illness) it would be impracticable to pay any outstanding KiwiSaver Member Tax Credit entitlement to the Scheme, Inland Revenue may pay it directly to you (or to your estate following your death). If you have split your contributions between the Growth Fund and the Conservative Fund, then when each KiwiSaver Member Tax Credit payment is received it will be applied to purchase units in each Fund in the same proportions as the contributions split in place when the KiwiSaver Member Tax Credit payment is received. Your KiwiSaver Member Tax Credit entitlement from the Scheme for a year will reduce to the extent of any KiwiSaver Member Tax Credit already paid to a Complying Superannuation Fund for the benefit in respect of the same year. No KiwiSaver Member Tax Credits are payable in respect of funds transferred to KiwiSaver Schemes from Australian complying superannuation schemes. See What returns will I get? on pages 13 to 15 for the restrictions on withdrawing your Tax Credit Amount (see the Glossary at page 23). Alteration of contributions If you are an employee then you may change your contribution rate between 3%, 4% and 8% by notifying your employer of the new rate (which will apply to the next payment of Salary or Wages after your employer receives that notice). You cannot change your contribution rate at intervals of less than three months unless your employer agrees. Dividing contributions (and your KiwiSaver Scheme account balance) between Funds You can elect to have your contributions invested in the Growth Fund, the Conservative Fund or any mix of the two. A default Balanced strategy is provided if you do not select a mix. This is currently a 45%/55% split of contributions between the Growth Fund and the Conservative Fund respectively, but we may alter the default allocation from time to time. Your initial selection is not locked in. At any time (but no more than twice per financial year of the Scheme), you can: change the percentage of each contribution paid to the Scheme for your benefit that will go to one or both of the Funds (as applicable); and/or switch all or a percentage of your current balance in a Fund to the other Fund (or switch your chosen investment strategy). In each case, you must notify us in writing, by completing and returning the Changing Your Investment Options Form on page 41.

13 Subject to the KiwiSaver Act s requirements, under the Scheme s Trust Deed a switch between Funds or investment strategies may be deferred if (and for as long as) we determine after consulting the Trustee that, an earlier switch: would be imprudent or impracticable; or would otherwise be prejudicial to the interests of the Scheme members (or investors in the relevant Fund or Funds) as a whole. Contribution Holiday If contributions to the Scheme are being deducted from your Salary or Wages, then under the KiwiSaver Act you may apply to Inland Revenue to suspend your contributions to the Scheme (i.e. to take a Contribution Holiday) if: 12 or more months have passed since your first contribution was received by Inland Revenue, or since you first contributed direct to a KiwiSaver Scheme; or you are suffering, or likely to suffer, financial hardship (and Inland Revenue has received at least one contribution from you). If a Contribution Holiday is granted based on financial hardship, its duration will be three months (unless Inland Revenue agrees to a longer period). The duration of a Contribution Holiday will otherwise be between three months and five years. Inland Revenue will notify you before your Contribution Holiday ends and you may apply for a new Contribution Holiday. You may resume contributing at any time by giving notice to your employer, requiring the employer to start making deductions from your Salary or Wages. If you have been automatically enrolled in the Scheme by your employer (by virtue of them having elected the Scheme as their preferred KiwiSaver Scheme provider) you can opt out of KiwiSaver between two and eight weeks after first joining. If you don t opt out, you will remain a Scheme member and deductions will continue to be made from your pay. What are the charges? The fees and expenses payable in each Fund and under the Balanced Strategy are summarised in the table below. Each fee excludes GST if any. You will not be required to pay any additional money towards fees and expenses. All costs, except for the monthly Administration Fee, which is deducted from your account, will be deducted directly from the Scheme s assets and reflected in the unit price for each Fund and any quoted returns. Fee Type Conservative Fund Balanced Strategy Growth Fund Entry Fee Nil Nil Nil Exit Fee Nil Nil Nil Administration Fee $3 per member per month Management Fee 0.85% p.a % p.a. 0.95% p.a. Performance Fee Nil 10% of returns in excess of Official Cash Rate + 5% subject to a High Water Mark (payable on the assets invested in the Growth Fund portfolio only) 10% of returns in excess of Official Cash Rate + 5% subject to a High Water Mark Trustee, Custody and Unit Pricing Fee Up to 0.10% p.a. Switch Fee Other Scheme Costs Up to two free switches per annum Reporting and other costs incurred by the Scheme Entry and Exit fees There are no entry or exit fees for investments in the Scheme. Administration fee (and/or the Securities Services Division of Trustees Executors Limited, to which has delegated the performance of certain administration management functions for the Scheme) are reimbursed from the Scheme s Assets for the day-to-day administration of member accounts and maintaining the member registry for the Scheme. The fee for new joiners is $3.00 per month per member. The fee is paid monthly by redeeming some of your units. 11

14 The administration fee is plus GST (if any), but we have been advised that no GST is currently payable on this fee. Management fee We are entitled to be paid management fees, based on the gross asset value of each respective Fund within the Scheme, for the investment services that we provide to the Scheme. Each management fee is calculated daily, paid to us each month and deducted from unit prices. The annual management fee paid from the Assets of each Fund is: Growth Fund 0.95% per annum of the gross asset value of the Fund; and Conservative Fund 0.85% per annum of the gross asset value of the Fund. No GST is currently payable on these fees. We may pay your adviser, a distributor or another intermediary a portion of our management fee. These payments are not an additional cost to members. Your adviser must provide you with details of this remuneration. Any financial adviser is acting as your agent, and not as agent for us or the Trustee. Neither we nor the Trustee is responsible for the advice given by these advisers. Growth Fund performance fee We are also entitled to be paid a performance fee on the Growth Fund equivalent to 10% of any return that is in excess of the Official Cash Rate (OCR) plus 5%, multiplied by the Growth Fund s average net asset value during the calculation period (1 July to 30 June). This fee is calculated and payable within 3 days of 30 June each year. The fee is subject to a cap of 2% per annum of the Growth Fund s average net asset value, is accrued in the daily unit price and is deducted from the Assets of the Growth Fund. GST is payable on the performance fee if it arises, but we have been advised no GST is currently payable on this fee. A High Water Mark applies to ensure that we are only rewarded for investment performance once. High Water Mark refers to the restriction placed on payment of the performance fee by including a provision in the performance fee calculation that no performance fee is paid to the extent that we are recovering any losses that may have been incurred by the Growth Fund. The High Water Mark is generally the highest Growth Fund unit price on which any previous performance fee was paid (adjusted for capital movements such as a split of units). However, where the 2% performance fee cap has applied in the immediately prior calculation period, the High Water Mark will be set at the performance level at which the cap was triggered (and not at the highest closing unit price). This is to reflect the fact that Fisher Funds did not receive any performance fee in excess of the cap, while ensuring that is not rewarded for the same performance twice. For full details of the performance fee calculation see the registered KiwiSaver Scheme Prospectus. Trustee s fee The Trustee is entitled to receive a fee of up to 0.04% per annum (on which no GST is currently payable) of the gross asset value of the Scheme for trusteeship services. This fee is calculated daily and paid to the Trustee each month, and deducted from the Assets of the Fund(s). Custodial and other administration fees T.E.A. Custodians Limited (a related company of Trustees Executors Limited) has been nominated by the Trustee as custodian and performs the custodial functions for the Scheme. We have also delegated the performance of certain administration management functions for the Scheme to the Securities Services Division of Trustees Executors Limited. For the performance of those services Trustees Executors Limited, in its capacity as custodian and administrator for the Scheme, is entitled to receive a fee of up to 0.06% per annum of the gross asset value of the Scheme (plus a further $10,000 per annum). The aggregate fee is calculated daily and paid each month, and deducted from the Assets of the Fund(s). The fee of 0.06% per annum is split across the Growth Fund and the Conservative Fund on a pro rata basis, and the additional $10,000 (which is an accounting fee) is split equally between the Growth Fund and the Conservative Fund. GST may be payable on the administration services component of that fee if it arises, but we have been advised that GST is not currently payable. No switching fee At any time up to twice per financial year of the Scheme, by completing and returning the Changing Your Investment Options Form on page 41, you can: change the percentage of the contributions payable to the Scheme for your benefit that will go to one or both Funds (as applicable); and/or switch all or a percentage of your current balance from one Fund to another Fund (or switch your chosen investment strategy). No change or switch fees are payable. Expenses payable from Scheme assets The Trustee will pay directly from the Assets of the relevant Fund (or, if they were initially paid by us, we may, subject to the Trust Deed, be reimbursed from those Assets for) costs incurred by us in discharging our obligations as Manager and acquiring or dealing with investments (for example fees for legal and taxation advice, audit fees, printing, postage, brokerage and third party research). Some international share brokers allow a portion of the brokerage paid by the Funds to be used by us to purchase independent macroeconomic and industry analysis as well as research on prospective companies in which the Assets of a Fund might be invested. This type of commission is only used for the purchase of research and research tools to benefit members in the relevant Fund. However, no Assets of either Fund may be used to pay our own costs or expenses. 12

15 The Trustee is also entitled (subject to certain restrictions prescribed in the Trust Deed) to be reimbursed from the Assets of the Scheme for costs incurred by it in discharging its obligations as Trustee under the terms of the Trust Deed. If the Scheme or either of the Funds terminates, neither we nor the Trustee is entitled to receive a fee for any time spent on matters relating to the termination. From time to time accruals for known expenses such as audit fees may be deducted from the Assets of each Fund. The costs and expenses recovered from each Fund each year are reported in the Scheme s financial statements, of which you may request a free copy (see page 21). Changes to fees The fees charged for the Scheme must comply at all times with reasonable fees restrictions prescribed in the KiwiSaver Act and the KiwiSaver Scheme Rules. Under the KiwiSaver Act, if a member or the Financial Markets Authority considers that a fee imposed in connection with a KiwiSaver Scheme is unreasonable then he or she may (within one year of the fee being imposed or debited) seek a High Court order annulling or reducing the fee. Under the KiwiSaver Act, when any fee to which the reasonable fees restrictions apply is increased, the Financial Markets Authority must be notified as soon as reasonably practicable after the increase takes effect. Subject to those reasonable fees restrictions: the Trustee and may alter the Trustee s fee, or the fees payable to the Securities Services Division of Trustees Executors Limited for the custodial and administration-related services provided to the Scheme or either Fund, by agreement at any time; and we may, with written notice to the Trustee, alter our fees or charge other fees from time to time; but members to whom any increased or new fee will apply must be given at least 60 business days prior written notice of any increase to fees. Fees can be altered without amending the Trust Deed. Total Expense Ratio (TER) A common way for people to compare the expenses of different schemes or funds is to use the Total Expense Ratio (TER). The TER is not a separate fee, but a means of showing all fees and expenses (excluding performance fees) as a percentage of average fund size. To check the latest TERs please refer to our website or by calling 0800 FFKIWI ( ). What returns will I get? Payment of returns Your returns from the Scheme will be paid as a lump sum or lump sums, either upon request after you reach your Qualifying Date or when you make any earlier Permitted Withdrawal. Withdrawals are not otherwise allowed, and the Scheme will not make income distributions. We are legally liable to pay your returns. You should be aware that no rate of return has been promised or guaranteed for the Scheme or either of the Funds, and that the unit prices will rise and fall as the value of each Fund s underlying investments rises and falls. Key factors The amount of any return is not quantifiable as at the date of this Investment Statement, as investment returns are by their nature variable. The key factors that determine the returns to you are increases and decreases in the value of the assets in your Fund(s), any income those assets earn, the movements in the markets relevant to your Fund(s), the fees and expenses charged and your tax liability. The total of the returns that may be allocated to you is therefore unknown as at the date of this Investment Statement. Other factors that impact returns are investment duration, market conditions on withdrawal, whether regular contributions have been maintained, tax impacts, fees and entitlement to any KiwiSaver Member Tax Credits. Withdrawals If you have split your contributions between the Growth Fund and the Conservative Fund, then any partial withdrawal will be made from the Funds in the same proportions as the contributions split in place at the time of withdrawal (unless the balance in either Fund is insufficient to make up the relevant portion of the withdrawal amount, in which case the shortfall will be withdrawn from your balance in the other Fund). We have delegated to the Securities Services Division of Trustees Executors Limited the functions of processing withdrawal applications and determining whether benefits are payable (except in relation to significant financial hardship and serious illnessbased withdrawal applications, which the Trustee is responsible for considering), calculating and paying benefits, arranging for contributions splits and switches between Funds and arranging for transfers to other KiwiSaver Schemes. Each withdrawal facility is described below. In each case, your Tax Credit Amount cannot be withdrawn: unless you (or on your death, your personal representative or the permitted recipient of your death benefit) provide a statutory declaration as to when you have resided principally in New Zealand; or to the extent to which the Manager has notice that your claim for the Tax Credit Amount is wrong (because the periods during which you have met that residency requirement were wrongly advised). 13

16 Permitted Withdrawals Withdrawal on or after Qualifying Date You may (but need not) withdraw some or all of your benefit on or after your Qualifying Date. This is when you reach the standard qualifying age for New Zealand Superannuation (currently 65) or the date, if later, when you have been a member of one or more KiwiSaver Schemes for five years (membership of a Complying Superannuation Fund, on a KiwiSaverconsistent basis, counts as KiwiSaver Scheme membership for this purpose). If you: are automatically enrolled in a KiwiSaver Scheme by your employer, or opt in to KiwiSaver but do not select a KiwiSaver Scheme; and do not complete an application form before Inland Revenue receives your first contribution, the five year period for the purposes of determining when you have been in KiwiSaver for five years will commence on the 15th of the month in which Inland Revenue receives your first contribution. At any time after your Qualifying Date you may withdraw some or all of the balance in your Member s Account (subject to the conditions outlined in the next paragraph) but you need not withdraw any money and can leave your balance in the Scheme indefinitely. If you have reached your Qualifying Date: you can make one or more lump sum withdrawals (each not less than $500); you can make regular withdrawals annually, quarterly, monthly, fortnightly or weekly (each must equal not less than $100); and there is no minimum balance which must remain in the Scheme following any such partial withdrawal. We may amend the minimum amounts for (and the permitted manner and frequency of) such withdrawals. We may also require a minimum remaining balance in the Scheme and/or a Fund after such a withdrawal. Death If you die, your full benefit will be paid to your personal representatives (the executors or administrators of your estate) on request. Alternatively, if your full Scheme entitlement is less than a prescribed amount (currently $15,000) and certain other conditions are met, we may pay your balance direct to a person such as a surviving partner or caregiver. Call us on for more details. Significant Financial Hardship You may make a withdrawal (excluding the kickstart and the Tax Credit Amount) if the Trustee is reasonably satisfied that you are suffering or likely to suffer from Significant Financial Hardship (as defined in the Glossary). The Trustee must be satisfied that reasonable alternative sources of funding have been explored and have been exhausted. You will need to provide a statutory declaration as to your assets and liabilities, and the Trustee may limit the withdrawal to a specified amount that (in its opinion) is required to alleviate the particular hardship you are experiencing. Serious Illness You may make a withdrawal if the Trustee is reasonably satisfied that you are suffering from Serious Illness (as defined in the Glossary). The Trustee will require medical evidence to support your withdrawal request. Home purchase Subject to evidence requirements and restrictions prescribed in the KiwiSaver Scheme Rules, you may be eligible to make a withdrawal (excluding the kick-start and the Tax Credit Amount) to purchase your first home if: three or more years have passed since Inland Revenue received your first contribution to a KiwiSaver Scheme (or since you first joined a KiwiSaver Scheme); you have never made a home purchase withdrawal; you intend that the relevant land will be your principal place of residence; and you have never owned an estate in land, either alone or jointly with another person (limited exceptions apply). You may be eligible to make a withdrawal to purchase a home as a second chance home buyer if you meet the first three of the above criteria and you give us written confirmation from Housing New Zealand stating that it is satisfied your financial position (in terms of income, assets and liabilities) is what would be expected of a person who has never owned a home (visit for more details). Home purchase withdrawals may be permissible in other limited circumstances. No funds permitted to be transferred to a KiwiSaver Scheme from an Australian complying superannuation scheme may be withdrawn for a home purchase however any post transfer investment earnings on those funds may be used for that purpose. We will require documents and evidence to support a home purchase withdrawal application (including a copy of an unconditional sale and purchase agreement) at least 10 business days before the settlement date. If a home purchase withdrawal is approved, the withdrawal amount will be paid directly to your solicitor to enable completion of the purchase. Your solicitor can only pay that amount to the vendor as part of the purchase price at settlement, and must repay the Scheme if settlement is not completed by the due date (or any agreed extended date). 14

17 A home purchase subsidy of $1,000 per year of contributions (maximum $5,000) may be available to certain people who qualify for a home purchase withdrawal, provided those people have been making regular KiwiSaver contributions for at least three years and meet all other qualifying criteria. For details about the required contribution level and the other qualifying criteria visit the Housing New Zealand website Housing New Zealand administers the home purchase subsidy facility, subsidies are not payable from the Scheme and neither we nor the Trustee has any liability in relation to the subsidy facility. For more information including whether the home purchase subsidy facility remains available, contact or visit the Housing New Zealand website Permanent emigration If you permanently emigrate from New Zealand to anywhere other than Australia, then: one year after you have permanently emigrated you may withdraw your entitlement (excluding your Tax Credit Amount) from the Scheme; and alternatively, at any time after you have permanently emigrated, you may direct us to transfer your entitlement (excluding your Tax Credit Amount) to an overseas superannuation scheme authorised for that purpose. Your Tax Credit Amount will, in either circumstance, be repaid to the Crown. If you permanently emigrate to Australia: you cannot make a cash withdrawal on the permanent emigration basis; but you can transfer your full KiwiSaver entitlements (including the Tax Credit Amount) to an Australian complying superannuation scheme, subject to a maximum transfer amount, and you will not have to wait one year to request the transfer of your KiwiSaver entitlements. It can be requested immediately upon emigration. In each circumstance, you will need to complete a statutory declaration to the effect that you have permanently emigrated from New Zealand. You must also prove to our satisfaction your departure from New Zealand, and that you have resided at an overseas address at some time during the year following your departure from New Zealand (we will require supporting documentation). You do not have to do anything if you emigrate, you can leave your balance in your KiwiSaver account and withdraw some or all of it when you reach your Qualifying Date (currently, age 65). Transfer to another KiwiSaver Scheme You may transfer your entitlement (the transferred amount must include the kick-start and the Tax Credit Amount) to another KiwiSaver Scheme at any time. When so doing, you will cease to be a member of our Scheme (as you can only be a member of one KiwiSaver Scheme at a time). If you have a direct debit set up on your account, we may stop it immediately upon notification of your request to transfer out. If you join the Scheme because it is your employer s chosen KiwiSaver Scheme, and then you leave that employer s service, you will remain a Scheme member. If the employer chooses another KiwiSaver Scheme, you will remain a member but you can elect to transfer to that other KiwiSaver Scheme if you wish. Other circumstances of withdrawal We must comply with any legislation or Court order requiring us to release funds from the Scheme. This includes a property sharing order made under the Property (Relationships) Act Funds transferred to the Scheme from an Australian complying superannuation scheme can be withdrawn if you reach age 60 and satisfy the retirement definition in Australian legislation. Benefits generally The amount of your benefit from the Scheme will reflect the contributions made by you or for your benefit, the reason for your withdrawal, Government subsidies, and investment returns from the relevant Fund or Funds (after deducting fees, taxes, expenses and other liabilities). Investment returns for each Fund will be reflected in that Fund s unit price on any given day. They are therefore unrealised until your money is actually withdrawn from the Scheme. Your returns will also be impacted by the tax paid by the Scheme and the expenses deducted from each Fund s Assets. The key factor that will determine the value of your units is the value of the investments made by us or any investment managers we appoint. The Growth Fund invests principally in Shares, and the value of these investments will depend on the performance of the companies and on the performance of share markets generally. The Conservative Fund also invests in Shares, but is expected to have lower risk and lower returns than the Growth Fund because it invests in all or any of a range of different asset classes principally comprising Cash, Fixed Interest, Infrastructure and Property securities, as well as Shares. Taxation The following is a general statement of current New Zealand income tax law as it relates to members who are New Zealand residents. Different tax rules may apply in respect of non-resident members. Neither we nor the Trustee accept any responsibility for your taxation liabilities. You should consult your own independent tax adviser about your taxation position in relation to the Funds or withdrawals, payments or transfers from the Scheme. The Scheme is a PIE as defined in the Income Tax Act 2007 (the Tax Act). 15

18 16 As a PIE, the Scheme: Attributes to you a proportionate share of the Scheme s income and tax credits; Calculates tax on your proportionate share of income based on your Prescribed Investor Rate (PIR). You must notify us of your PIR which will range from 10.5% to 28%, depending on your income; Pays this tax ( PIE tax ); and Adjusts either your investment in the Scheme or the amount paid to you, to reflect the PIE tax. You will be attributed your share of income (for which PIE tax has been paid) and usually will not need to file a tax return as it will be excluded income. Please refer below for exceptions. Assuming you provide the correct PIR, no further tax is payable when you withdraw funds from the Scheme. Investments not subject to the Foreign Investment Fund (FIF) regime Funds holding shares in New Zealand resident companies or most companies that are resident in Australia that are listed on an approved Australian Securities Exchange index are taxed on those shares under the ordinary New Zealand tax rules. Dividends on such shares are usually fully taxable, with a credit allowed for any attached imputation credits (but not for any Australian franking credits). The Funds (where applicable) are entitled to a tax credit for any withholding tax deducted from such dividends. Tax should not be payable by the Funds on any gains from the sale of such shares. Investments subject to the Foreign Investment Fund regime Other international shares held by the Funds are usually taxed under the Fair Dividend Rate (FDR) method in the FIF regime. Under FDR, such shares will give rise to deemed income in an income year (or part year) equal to 5% (or a pro rata portion) of the average daily market value of the shares for that income year (or part year). The Funds are entitled to a credit for any withholding tax paid on dividends received from the shares, subject to certain limits. Any dividends or profits from sales of the shares are ignored for tax purposes. No tax deduction may be claimed for any losses in respect of the shares under this method. Taxation on income derived by the Funds Interest earned by the Funds, foreign exchange gains from non-new Zealand dollar denominated debt instruments and income derived from hedging contracts are taxable. The Funds are entitled to a deduction for expenses incurred in earning their income, and for any foreign exchange and hedging losses. For New Zealand resident individuals who provide their IRD number to the Scheme, there are three Prescribed Investor Tax Rates (PIR) available (a tax year is 1 April to 31 March): If your taxable income was... $0 - $14,000 $0 - $14,000 $14,001 - $48,000 $48,001 or more Any And your taxable income plus your PIE income/loss was... In the 2 income years before the relevant tax years for... PIR is $0 - $48,000 Either year 10.50% $48,001 - $70,000 Either year 17.50% $0 - $70,000 Either year 17.50% Any Each year 28% $70,001 or more Each year 28% When calculating your PIR, taxable income generally includes foreign sourced income even if you were not resident in New Zealand when that income was earned. New residents can exclude their non resident foreignsourced income if they reasonably expect their taxable income to be lower than their total income from the tax year before becoming a New Zealand resident. For non-residents or a member who does not provide an IRD number and a PIR the PIR is 28%. Each year you will be asked to confirm your PIR to the Scheme. You must advise the Scheme if your PIR changes or if you cease to be resident in New Zealand. The Scheme calculates the tax liability attributable to members in relation to each Fund for each calculation period (and as at the date of any withdrawal or switch) using members PIRs. The tax liability attributed to you for each Fund will be deducted from your account by cancelling units in the relevant Fund or Funds. If you have elected the correct PIR, the income attributed to you will not have to be included in a tax return (unless you are newly resident and have elected to exclude your non resident foreign sourced income - see above). Further information on prescribed investor tax rates can be found at Inland Revenue s website Also, such income will not affect eligibility for family assistance or student loan repayments or child support obligations. If you elect a PIR lower than the correct rate, or you do not advise a change to a higher rate, Inland Revenue may require you to file a tax return and pay any consequential tax shortfall at your marginal tax rate plus any penalties or interest. Inland Revenue may also contact us and direct us to change your PIR.

19 Fees (if any) paid by you for ongoing management and administration services are taken into account as deductions for the purposes of calculating the tax payable on your behalf. You are not able to claim deductions for any such fees in your own tax return. Tax on contributions Member contributions to the Scheme are made from after tax income, so no more tax is payable on those contributions. The kick-start and KiwiSaver Member Tax Credits are not income or gifts for tax purposes. Employer contributions to the Scheme for your benefit are subject to Employer s Superannuation Contribution Tax ( ESCT ) at the following ESCT rates: 10.5% if the total of your taxable earnings and the before-tax employer superannuation contributions made for your benefit was $16,800 or less in the previous income year (with each income year commencing on 1 April and ending on the following 31 March); 17.5% if the total of those earnings plus employer contributions was between $16,801 and $57,600 in the previous income year; 30% if the total of those earnings plus employer contributions was between $57,601 and $84,000 in the previous income year; and 33% in all other cases. If your current employer did not employ you for all of the previous income year, your ESCT rate will be based on an estimate of your expected taxable earnings and employer superannuation contribution entitlements for the current income year. Tax on benefits UK tax treatment may apply in some cases to a withdrawal of funds transferred to the Scheme (directly or indirectly) from a UK pension scheme. For more information, you should consult a tax specialist. Non-resident members should seek tax advice in their country of residence concerning the tax treatment in that country of payments or transfers from the Scheme. Under current legislation, except as described above, when you withdraw funds from the Scheme in New Zealand the amount withdrawn will not be subject to any further taxation (i.e. it will be paid tax-free). What are my risks? There is some degree of risk involved with all investments. The potential return on an investment is generally related to the risk of the investment. Investments in the Scheme (and in each Fund) are not guaranteed. The value of your investment in either Fund can go up and down. There is a risk that you will not recover the full amount you have invested or not receive any returns on your investment. This may occur where the value of the investments made for any of the Funds falls by such an amount that the value of your units is less than you paid for them. Investment risk encompasses the chance of losing some or all of your investment, and the possibility that investment returns may be negative as well as positive. This positive and negative movement is called volatility. As a general rule, Cash and Fixed Interest investments tend to be less volatile than Shares, Infrastructure and Property investments. The Growth Fund is expected to carry higher risk than the Conservative Fund, as it is invested principally in growing companies Shares in all or any of the New Zealand, Australian and other international markets. However, a portion of the Conservative Fund will also be invested in Shares from time to time. Share prices can fluctuate significantly over relatively short periods of time. This means you stand a greater risk of not getting all of your investment value back if negative movement occurs in the short term and you cash in your investment and why it is important to invest with a long-term horizon in mind. However, the Growth Fund also has the potential for higher returns over the longer term. You need to decide how much risk you are comfortable with. In order to receive a potentially higher return, you may have to accept a higher degree of volatility. Principal risks The principal risks of investing in the Scheme include: not achieving the returns expected, or experiencing periods of negative returns; receiving back less than the amount originally invested; and not being able to withdraw from the Scheme when desired. If any of these risks eventuate, it is reasonably foreseeable that on withdrawal you may receive in total less than the amount you invested. The likelihood of these risks occurring is influenced by factors which affect investments generally. Some of these key factors that can affect the returns and cause the value of your investment in either Fund to go up and down are set out below. Key factors investment specific while all investments carry risk, the level of risk varies depending on the Fund(s) you are invested in and the types of investments the Fund(s) invest in. Different types of investments perform differently through market cycles and each type of asset carries a different type of risk. For example, specific events affecting the share price of a particular company or the price and return of a particular fixed interest rate security that any of the Funds invest in, could cause adverse fluctuations and negatively impact upon the Funds; market factors investment markets are affected by a host of factors, many of which are beyond our control. These include economic conditions (including market sentiment, inflation, interest rates and employment), political events, environmental 17

20 18 and technological issues. The performance of investment markets is a key factor in determining returns from the Funds; currency fluctuations exchange rate fluctuations between the New Zealand dollar and foreign currencies. Each Fund includes Assets that are denominated in various foreign currencies. As the value of these Funds is calculated by reference to New Zealand dollar equivalent amounts, fluctuations in the exchange rates between the New Zealand dollar and foreign currencies could impact on those Funds irrespective of any changes in value of the underlying companies. In addition, economic, political or market conditions in New Zealand could impact on the value of the New Zealand dollar. We are permitted to enter contracts to hedge foreign currency exposure, where a Fund holds or intends to hold in the near future assets in a foreign currency; interest rates changes in interest rates can have a negative impact directly or indirectly on investment value or returns. A fixed rate security may become more or less valuable depending upon changes in interest rates. If market interest rates rise, the fixed rate security becomes less valuable, and vice versa when market interest rates fall. Interest rates are influenced by a number of national and international economic factors, including exchange rates, consumer spending, employment levels, other inflationary pressures and, in New Zealand, the Official Cash Rate set by the Reserve Bank; liquidity low liquidity is a risk, as it can reflect the lack of demand for an investment, and make that investment harder to sell in a timely manner. This may affect returns if there is insufficient time to wait for demand to increase and a sale is required to be made at a lower price. Some assets are more difficult to realise than others, particularly if market conditions deteriorate. Generally, the property market has a greater liquidity risk in comparison to the share market; key personnel the success of each of the Funds depends to a significant extent upon us continuing to employ a number of key personnel. Profiles of the investment team can be found at kiwisaver-investment-team; inflation impacting on real returns; the Scheme s loss of QROPS status, resulting in more UK tax to pay on any UK pension scheme funds transferred to the scheme; an operational or systems failure affecting either Fund (or the markets generally); legislative and regulatory returns may be affected by any adverse legislative or regulatory changes in both New Zealand and offshore, which could have an impact on any investment. Infrastructure Assets often operate within highly regulated environments and changes to legislation can impact them more than other companies; taxation changes in taxation rates or tax rules in New Zealand or any overseas jurisdiction; PIE Status loss of PIE status for failing to meet the requirements of the Tax Act would result in the Funds being taxed at 28% rather the individual PIRs of members; investment style our investment style and strategy may result in your returns being different from any share market index and from competing investments; unfulfilled investment objectives there is no guarantee that any of the Funds will execute or achieve their investment objectives, and such objectives should not be interpreted as a guarantee or assurance of returns. A failure to meet investment objectives would affect each Fund; counterparty risk this risk is that a party to a contract (including a derivative contract) could default or a third party fail to properly provide services for either Fund, or fail to complete transactions, or there is a dispute in relation to a contract, or that such a person becomes insolvent and is placed into receivership, liquidation or statutory management or either Fund otherwise becomes unable to meet its financial obligations. If this occurs, you may not recover the full amount of your investment in either Fund; derivative risk we may from time to time use derivatives to reduce currency exposure or maximise the New Zealand dollar return of each Fund and, in the case of the Growth Fund, to gain exposure to larger companies (a derivative is any financial arrangement the value of which depends on the future value of underlying assets such as Shares, Fixed Interest, currency or Cash). The use of derivatives can result in large gains or losses, and creates risks (which include magnifying any adverse Asset price fluctuations, and the counterparty to a derivatives contract not being able to meet any or all of its obligations). The Prospectus also includes information on risks. Personal liability There are no circumstances in which you will be obliged to pay any further money, apart from your agreed contributions and any tax liability attributed to you over and above the amount in your account(s) and any tax liability you incur personally as a result of advising the wrong PIR or failing to advise us when that rate changes. Consequences of insolvency If the Scheme was insolvent you would not incur any liability to any person, other than for payments, fees or taxes payable before the insolvency. Winding up the Scheme We may resolve to wind up the Scheme. In certain circumstances set out in the KiwiSaver Act, the Financial Markets Authority may also require the Scheme to be wound up.

21 In the event of the winding up of the Scheme, any preferred creditors would be paid ahead of claims by Scheme members. Accordingly, you may not recover the full amount paid to the Scheme by you and any employer for your benefit. However, you will otherwise have no liability to contribute to any shortfall in the Assets of the Scheme. If the Scheme is wound up, your claim on the Scheme s Assets will rank equally with other Scheme members claims. Following the wind-up of the Scheme, you will be required to transfer from the Scheme to another KiwiSaver Scheme in accordance with the choice and default allocation principles prescribed in the KiwiSaver Act. Winding up a Fund We may (after giving the Trustee prior written notice) close, wind up or alter any Fund. If a Fund is closed, then no further contributions may be invested in that Fund. Closure of a Fund will not affect our obligation to pay any outstanding benefits owed to members eligible to receive them. If you have elected to allocate some or all of your investment to a Fund being wound up, your investment allocation will be deemed no longer to incorporate that Fund. We may determine the Fund which will replace the Fund being wound up. You will be notified as soon as reasonably practicable of the wind-up and of the replacement Fund. Subject to the KiwiSaver Act, we will retain such amount as we consider necessary or appropriate to meet all claims, liabilities (including contingent liabilities) and expenses which in our opinion ought to be met out of the wound-up Fund s Assets. We will also, after making such deductions, allocate your interest in the wound-up Fund to another Fund or Funds selected by you. You will be given the opportunity to select a replacement Fund or Funds. If you do not select any other Fund within the period prescribed in the wind-up notice, then your interest in the wound-up Fund will be allocated to the Fund specified in the notice as the Fund to which you will be deemed to have elected to transfer if no replacement Fund is chosen. Can the investment be altered? Employee contributions If you are an employee you can change your contribution rate between 3%, 4% and 8% of your Salary or Wages at any time by giving notice to your employer of the new contribution rate. The new rate will apply from the next pay period after your employer receives that notice. If you start new employment, you will default to the minimum rate unless you give your new employer a KiwiSaver deduction form choosing the 4% or 8% rate. Unless your employer agrees otherwise, you cannot change your contribution rate at intervals of fewer than three months. You may take a Contribution Holiday in the circumstances set out on page 11 under the heading Contribution Holiday. After you reach your Qualifying Date, you can give your employer a non deduction notice requiring it to stop deducting KiwiSaver contributions from your pay. The notice will apply to your next salary or wage payment and then until you revoke it. Transfers You may at any time transfer your benefit from the Scheme to another KiwiSaver Scheme by contracting directly with the new KiwiSaver Scheme provider to join that scheme. You cannot partially transfer your benefit from the Scheme to another KiwiSaver Scheme, as you can only belong to one KiwiSaver Scheme at a time. In certain limited circumstances you may be compulsorily transferred between KiwiSaver Schemes under the KiwiSaver Act. You can transfer from an existing KiwiSaver Scheme or registered superannuation scheme to the KiwiSaver Scheme and currently you can transfer funds to the Scheme from a UK pension scheme (see page 9). Please contact us for more information if you wish to do either. You can transfer funds between a New Zealand KiwiSaver Scheme and an Australian complying superannuation scheme after permanently emigrating between the two countries (see pages 9 and 14). Switches and Changes of Funds You may switch part or all of your Scheme balance, and/or change some or all of the future contributions payable to the Scheme for your benefit, from one Fund to another at any time (but no more than twice per financial year of the Scheme). In the case of a switch involving your existing balance, the total amount switched between Funds must not be less than $1,000 (or such greater minimum amount as we may determine) or your entire Scheme balance if it is less. If you wish to switch part or all of your Scheme balance to another Fund, to split ongoing contributions between the Growth Fund and the Conservative Fund, or to amend any existing split of your balance or contributions between the two Funds, then you should complete the Changing Your Investment Options Form on page 41. Amendments We and the Trustee may amend the Trust Deed by a deed of amendment. Generally speaking, amendments to the Trust Deed cannot have the effect of: reducing, postponing or otherwise adversely affecting the benefits that may in due course flow from, or are attributable to, membership of the Scheme up to the date the amendment is made; or removing any right of members to participate in Scheme management; or 19

22 increasing the contributions, fees or charges payable by any member (though Scheme fees can be increased without amending the Trust Deed); providing for the revision of any Assets of the scheme to an employer to any greater amount than already provided in the Trust Deed; without the written consent of every member who would be adversely affected by the amendments. Changes to law A number of aspects of KiwiSaver such as the current minimum employee and employer contribution rates, the Government incentives, the tax treatment of contributions and income and the circumstances in which benefits can be withdrawn reflect the current terms of the KiwiSaver Act, the income tax and other legislation governing KiwiSaver Schemes, and Government policy. The relevant legislation, and Government policy, are subject to change at any time. Where the expression current or currently is used in this Investment Statement in relation to legislation, a policy or a practice, it refers to that legislation, policy or practice as at the date of this Investment Statement. For more up-to-date information, you should visit the Government s website How do I cash in my investment? Withdrawals Withdrawals from the Scheme are permitted only as described under Permitted Withdrawals on pages 13 to 15. If you have split your contributions between the Growth Fund and the Conservative Fund, then any partial withdrawal will be made from the Funds in the same proportions as the contributions split in place at the time of withdrawal (unless the balance in either Fund is insufficient to make up the relevant portion of the withdrawal amount, in which case the shortfall will be withdrawn from your balance in the other Fund). You can request a withdrawal from the Scheme by writing to Management Limited, c/o Securities Services Division, Trustees Executors Limited, PO Box 409, Wellington, Please detail the basis for your withdrawal and provide supporting evidence. To assist you, withdrawal forms are available on our website Deferring withdrawals or transfers We may (after consulting with the Trustee) defer a withdrawal or transfer from the Scheme if (and for as long as) we determine that the withdrawal or transfer would be imprudent, is impracticable or would otherwise be prejudicial to the interests of the members of the Scheme (or in the relevant Fund or Funds) as a whole. The Scheme s Trust Deed does not otherwise restrict how long we may defer a withdrawal or transfer from the Scheme. Assignments You are not permitted to sell, assign or transfer your interest in the Scheme to another person, unless required by the KiwiSaver Act or the provisions of any other enactment. Who do I contact with inquiries about my investment? You can find out what the unit price of a Fund within the Scheme is by phoning us or visiting our website We will send you regular reports showing the value of your investment and the details of the investments in the Scheme. Each Fund s unit price will be quoted in New Zealand dollars. If you have any questions about your investment in the Scheme please contact: The Client Services Manager Management Limited Level 1, Crown Centre Hurstmere Road PO Box Takapuna Auckland 0622 Freephone 0800 FFKIWI ( ) Facsimile kiwisaver@fisherfunds.co.nz Website Is there anyone to whom I can complain if I have problems with the investment? If you are not satisfied with the service you have received from us then you should contact us. We have an internal complaints process and undertake to investigate your concerns promptly and fairly. You may contact us to make a complaint by telephone, by or in writing as follows: The Compliance Manager Management Limited Level 1, Crown Centre Hurstmere Road PO Box Takapuna Auckland 0622 Freephone 0800 FFKIWI ( ) Facsimile kiwisaver@fisherfunds.co.nz You may also contact the Trustee at: The Business Manager Trustees Executors Limited Level Queen Street PO Box 4197 Shortland Street Auckland 1140 Telephone

23 Both we and the Trustee are members of an independent dispute resolution scheme operated by Financial Services Complaints Limited (FSCL) and approved by the Ministry of Consumer Affairs. Each of us has 40 working days to respond to your complaint. If you are not satisfied by the response, you may refer the matter to FSCL by ing or calling FSCL on Alternatively you may write to FSCL at: Financial Services Complaints Limited 4th Floor 101 Lambton Quay PO Box 5967 Wellington 6145 Full details of how to access the FSCL scheme can be obtained from its website There is no cost to you to use the services of FSCL. Complaints about your investment in the Scheme can also be made in certain circumstances to the Financial Markets Authority at: Financial Markets Authority Level 2, 1 Grey St, Wellington 6011 PO Box 1179, Wellington 6140 Telephone Facsimile What other information can I obtain about this investment? Prospectus and financial statements Further information about the Scheme and each Fund is contained in the Scheme s Prospectus and financial statements. A copy of the Prospectus is available on request from us and will be provided free of charge. Financial statements are prepared for the Scheme and each Fund as at the end of each financial year. Copies of the financial statements may be obtained on request from us, free of charge. Annual reports and personalised statements We send, or make available, to each member as at the end of each financial year, an annual report for the Scheme, which includes any amendments made to the Trust Deed since the previous balance date of the Scheme. You will not be sent an annual report if your Portfolio is inactive (that is, a Portfolio for which no contribution has been received for at least two years). However, you can still obtain an annual report on request. We will also send to you as at the end of each financial year a statement setting out: the amount of each type of contribution received by the Scheme for your benefit during the year; and the value of your units in the Scheme. Other information You may also ask us to send to you: a copy of the Trust Deed ( ed copies are free, but hard copies include a fee of 20c per page); and a comparison of actual returns made by the Scheme or a Fund against any prospective returns referred to in the Prospectus or any advertisement relating to the Scheme (these comparisons are free of charge). All requests for the information referred to above should be made in writing and sent to at the address specified on page 20. Alternatively they may be made by ing kiwisaver@fisherfunds.co.nz. We will send regular newsletters to members who have provided addresses. Historic newsletters are available on the website Registered information The following documents are filed on a public register at the Companies Office of the Ministry of Business, Innovation and Employment, and are available for public inspection on the Companies Office website at (through Do It Now/ Search other registers/other registers search/select all/ organisation number ): the latest registered Prospectus; the Trust Deed and any amendments to the Trust Deed; and the latest annual financial statements for the Scheme. Personal information By becoming a member of the Scheme you will authorise and the Trustee to: use your IRD number for the purpose of, and to the extent necessary for, identifying you for the administration of the Scheme (but for no other purpose); use information received in relation to you to promote other products or services of the group to you; and disclose information received in relation to you to third parties, to the extent reasonably necessary to administer your investment or to promote other products or services of the group to you. Access to information received in relation to you is subject to strict security arrangements, to maintain the appropriate levels of confidentiality. You have the right to access and correct this information by contacting us. A Scheme Provider Agreement with Inland Revenue sets out certain arrangements agreed with Inland Revenue in relation to the use of all personal information obtained by us and the Trustee in relation to Scheme members. 21

24 Glossary Assets means things of value such as cash, securities, accounts receivable and inventory. Balanced Strategy currently means a 55%/45% Conservative Fund/Growth Fund mix (this mix generally comprises 45% income assets and 55% growth assets). Capital Gain means the profit on the sale of an Asset when it is sold for more than was paid, or the growth in the sale value of that Asset. Cash means short-term, interest bearing products such as deposits, bank bills or fixed interest securities with maturity periods of less than one year. Cash investments traditionally produce a stable investment return but have the lowest potential for return over the long term. Complying Superannuation Fund means a superannuation scheme that, while not a KiwiSaver Scheme, has rules enabling a KiwiSaver-consistent lockin of balances and has been approved by the Financial Markets Authority as a complying superannuation fund. Contribution Holiday means a suspension of your contributions to a KiwiSaver Scheme that is permitted by Inland Revenue by reason of: your having contributed to KiwiSaver for 12 or more months; or your suffering (or being likely to suffer) financial hardship. Dividends are part of the profit of a company that is paid to the people who own shares in it. means Management Limited. Fixed Interest means loans to governments, banks and corporate organisations. In return for the loan, the borrower generally pays a set rate of interest for an agreed length of time. The value of fixed interest investments fluctuates when interest rates change. Fund means an investment fund that is managed with a specific investment objective in mind within the Scheme. There are currently two investment funds within the Scheme: the Growth Fund and the Conservative Fund. Members can choose either of these Funds or can elect to have any contributions and/ or existing balances split between the two Funds. Growth Companies are businesses that are able to consistently grow their earnings and generally pay lower dividends. Infrastructure means investments either in direct infrastructure (e.g. roads, airports or utilities) or indirectly in such assets through an infrastructure trust or company. Kick-start Contribution Amount means an amount equal to the contribution paid by the Government (currently $1,000) into your KiwiSaver account approximately three months after you join. KiwiSaver Act means the KiwiSaver Act 2006 as amended from time to time. KiwiSaver Member Tax Credit means the Government contribution matching your contributions to the Scheme at the rate of 50c per dollar (up to a current maximum Government contribution of $ a year) which under current legislation will be credited to the Scheme while you are aged 18 or more and below your Qualifying Date, are contributing and reside mainly in New Zealand. This assumes that you are not receiving KiwiSaver Member Tax Credits for locked-in contributions to a Complying Superannuation Fund. KiwiSaver Scheme means a scheme registered under the KiwiSaver Act. KiwiSaver Scheme Rules means the rules applying under the KiwiSaver Act to every KiwiSaver Scheme. Manager means the manager of the Scheme, Fisher Funds Management Limited. Permitted Withdrawal means a withdrawal of funds that is permitted under the KiwiSaver Scheme Rules. PIE Income means the income attributed to a person from the PIEs in which that person has invested, but does not include any Dividends paid to the person by any portfolio listed company (a type of PIE). Dividends from a portfolio listed company that are not excluded income under the relevant provisions of the Income Tax Act 2007 are taxable income. Portfolio means a collection of investments all owned by the same individual or organisation. Portfolio Investment Entity or PIE means a portfolio investment entity as defined in the Income Tax Act. Property means investments directly in property (e.g. houses, offices or factories) or indirectly in property via securities held in a property trust or company. Prospectus means the prospectus for the Scheme. Qualifying Date means the date when you reach the standard qualifying age for New Zealand superannuation (currently 65) or the date, if later, when: you have been a member of one or more KiwiSaver Schemes over a period of 5 years; or you have been a member of one or more Complying Superannuation Funds and KiwiSaver Schemes over a period of 5 years. 22

25 Salary or Wages means your salary or wages as defined from time to time for the purposes of the KiwiSaver Act. It currently means (with the exceptions noted below) the taxable income that you receive in respect of your employment with: the employer through whom you have been automatically enrolled; or if you opt in to KiwiSaver, your employer (or employers, if you have more than one job, unless you choose only one or more employers); and in each case, any employer by whom you are later employed. This includes overtime, bonuses and allowances (other than accommodation benefits, the market value of any board received from an employer and any taxable allowances for accommodation or living costs overseas), parental leave payments out of public money and ACC compensation (but excludes exempt income payments, employer superannuation contributions and redundancy payments). Your Salary or Wages excludes, solely for the purposes of compulsory employer contributions, parental leave payments out of public money and ACC compensation. Serious Illness is defined in the KiwiSaver Scheme Rules to mean an injury, illness or disability: that results in your being totally and permanently unable to engage in work for which you are suited by reason of experience, education or training (or any combination of those things); or that poses a serious and imminent risk of death. Significant Financial Hardship is defined in the KiwiSaver Scheme Rules to include significant financial difficulties arising because of: your inability to meet minimum living expenses; or your inability to meet mortgage repayments on your principal family residence, resulting in the mortgagee seeking to enforce the mortgage; or the cost of modifying a residence to meet special needs arising from your own or a dependant s disability; or the cost of medical treatment for your own or a dependant s illness or injury; or the cost of palliative care for you or a dependant; or funeral costs for a dependant. Tax Credit Amount means an amount equal to the total amount of KiwiSaver Member Tax Credits credited or transferred to the Scheme for your benefit (disregarding, for the purposes of calculating that amount, any positive or negative returns). If your entitlement from the KiwiSaver Scheme is a lesser amount, then that will be your Tax Credit Amount. Trust Deed means the Trust Deed governing the Scheme, as amended from time to time. Trustee means the Trustee of the Scheme, Trustees Executors Limited. Shares are part ownership of a company. Shares are a common form of investment that has the potential to increase wealth over the long term. 23

26 So where do I sign? Joining or transferring is easy Follow these simple steps: 1. Complete an Application Form (see pages 27 to 38). 2. Advise your employer (if you are employed) that you have joined a KiwiSaver Scheme, when you want your contributions to start and your contribution rate. How to fill out an application form To ensure correct interpretation of your details, please: Print clearly using CAPITAL LETTERS. If an item is not applicable, leave the designated area unmarked. If you make a mistake, simply draw a line through the mistake and initial the change. Do not use correction fluid. Write the correct details above the designated area. If there is not enough room, use any available space in the margins. Make sure you sign the Application Form. Please feel free to call on 0800 FFKIWI ( ) if you would like any help in completing the Application Form. Verification and certification of investor identity We are required by law to verify the identity of investors. In addition, copies of identity documents must be certified by an approved person as being a true reproduction of your original document. Full details of our requirements are outlined are outlined on the Application Form. All applicants must also provide proof of residential address. See the Application Form for our requirements. If you are setting up a direct debit we will also require a copy of a recent bank statement or bank deposit slip in the name of the account holder. Investing for children/minors We require a birth certificate for a child. For a child under 16, both parents/all guardians are required to sign the application unless there is only one legal guardian (or the child is transferring from another KiwiSaver Scheme, in which case only one legal guardian must sign but all guardians must agree). If you are a minor who is 16 or 17, both you and one parent or guardian must sign the application (unless you have no legal guardian - this will be the case if you are married or in a civil union, or have started a de facto relationship with all guardians express written consents or Family Court approval). Each person signing as a parent/guardian must be a legal guardian of the minor. An IRD number is also required to process the application, and parents/guardians must verify their own identities (see Verification and certification of investor identity ). Investing for another person under a power of attorney Identification of the person in whose name the investment is being made is as specified for personal investors above. In addition, copies of each of the following documents are required: Power of Attorney Certificate of Non-Revocation Cheques If you are sending a cheque, please make your cheque payable to KiwiSaver Scheme and cross it Account Payee Only. We accept voluntary contributions to the Scheme on the assumption they are cleared funds. Investments may be processed prior to positive confirmation that funds have cleared through the banking system. Should a cheque dishonour we must immediately sell the units purchased to be fair to other members. If the unit price has decreased between when you invested and when your cheque is dishonoured, any shortfall will be incurred by you. If your contributions to the Scheme are being made through your employer, you do not need to enclose a cheque or complete a Direct Debit Authority. Your employer will send your contributions directly to Inland Revenue who will forward them to. You also do not need to complete Inland Revenue s KS2 form just advise your employer when you wish to start contributions and the percentage of your Salary or Wages that you wish to contribute. Return form Please mail your Application Form, identity documents and (if applicable) your cheque, Direct Debit Authority and any other relevant information to: Management Limited c/o Securities Services Division Trustees Executors Limited PO Box 409 Wellington

27 If you need help For all enquiries about making an investment, monitoring your investment, or withdrawing funds, please contact: Management Limited PO Box Takapuna Auckland 0740 Freephone: 0800 FFKIWI ( ) Facsimile: Website: Our team of dedicated experts will be pleased to provide prompt answers to any questions you may have. To monitor your investment, you can log into your KiwiSaver Scheme account via our website or you can check for daily updates of unit prices: Before you send us your Application Form, have you: Included your IRD Number? Chosen your investment strategy? Signed the application form? Photocopied, certified and attached your ID plus proof of residential address? on the website ( or by phoning on 0800 FFKIWI ( ). To calculate the value of your investment, multiply the number of units you own by the most recent unit price. 25

28 This page has been left intentionally blank 26

29 KiwiSaver Scheme Application Form Please mail this Application Form, together with (if applicable) your cheque payable to KiwiSaver Scheme and/or your Direct Debit Authority, and any other relevant documentation, to: Management Limited, c/o Securities Services Division, Trustees Executors Limited, PO Box 409, Wellington, Investor details Title First name/s Surname Please list any other names you have been known by or you are currently known by e.g. maiden name, former married name, alias etc. Date of birth IRD no. Prescribed Investor Rate (PIR) - Please tick one - see page 16 to determine your rate; if a PIR is not selected, 28% will apply. 10.5% 17.5% 28% Physical address (not a PO Box number) City Country Postcode Postal address (if different from above) City Country Postcode Home phone ( ) Business phone ( ) Mobile ( ) address (to receive newsletters and monthly online reporting) Contribution details If you are employed If you are employed your regular contributions will be made by your employer (whom you authorise to deduct those amounts from your pay). If you wish to invest an additional amount directly please refer to page 9. Employee elected contribution rate (as a percentage of gross wages or salary) You must let your employer know the contribution rate you have elected. Employer details Company name Postal address 3% 4% 8% Business phone ( ) Postcode If you are not employed If you are not employed (self-employed, unemployed, under 18 and not working, retired, etc) you will invest directly with. Please complete the amount of your initial investment. Initial investment $ (If you wish to make regular contributions, please complete the Direct Debit Form or see page 9 to set up an automatic payment). July

30 Investment options You can select from three investment strategies (a carefully designed investment mix to suit a specific investor profile) or you can build your own investment strategy by choosing either a specific Fund or a mix of both Funds in the proportions you wish. For help with choosing an investment strategy please refer to pages 32 to 43 of the accompanying with you all the way booklet). You can change your contribution proportions twice a year at no cost. We recommend that you obtain advice from a financial adviser before making a decision to invest or change your investment. To select one of our investment strategies, tick the relevant box below: Conservative strategy (100% Conservative Fund) Balanced strategy (55% Conservative Fund; 45% Growth Fund) Growth strategy (100% Growth Fund) or To build your own investment strategy simply complete the table below: Funds % Contributions Conservative Fund % Growth Fund % The total must equal 100% 100% If you do not make any choice, your contributions will be invested according to the Balanced Strategy (currently 55% Conservative Fund, 45% Growth Fund). By signing this Application Form you acknowledge that: (i) choosing an investment strategy is solely your responsibility and neither nor the Trustee of the Scheme is to be regarded as representing or implying that any particular investment strategy is appropriate for your personal circumstances; (ii) the Investment Statement does not give financial advice and if you are unsure about choosing an investment strategy you can seek advice from a financial adviser; (iii) your choice of an investment strategy will be a binding direction from you to the Trustee of the Scheme for the purposes of the Trustee Act 1956; and (iv) you may change your investment strategy up to twice a year. Transfers from other superannuation schemes Are you transferring from another KiwiSaver scheme? Yes No Name of scheme provider (if known) I apply to transfer my benefit from the above scheme to the KiwiSaver Scheme. I authorise the Manager or the Trustee of the transferring scheme to provide to or the Trustee of the Scheme any of my personal information as necessary to complete the transfer of my benefits. If you wish to transfer funds from a registered New Zealand, Australian or United Kingdom superannuation scheme, please contact on 0800 FFKIWI ( ). Receiving information about your investment By signing this Application Form you agree to receive all forms of communication from us by . This will include where possible our monthly newsletter Nest Egg News, quarterly and annual personalised statements, annual PIE tax statements and news of investor events. You also consent to receiving a web link URL for access to electronic copies of the Scheme s annual reports. Tick here if you wish to receive correspondence by post (excluding Nest Egg News). Identity documents Please provide one of the following identity options which must be certified (see below for more information): Identity Documents (must be certified*) OPTION 1 OPTION 2 Passport; or New Zealand drivers licence; or New Zealand firearms licence PLUS proof of residential address (does not need to be certified) Bank Statement dated within the last three months; or Birth certificate; or Citizenship certificate Together with one of the following: HANZ 18+ card; or Tertiary student photo ID; or Current international driving permit Any New Zealand Government Department statement dated within the last three months; or New Zealand utility company statement ie: electricity, gas, phone, SKY dated within the last three months. 28

31 *Certifying your identity documents All copies of identity documents must be completely legible with clear photos. They must also be certified by an Approved Person (at least 16 years of age) as being a true reproduction of the original document. A representative or an Authorised Distributor can copy and certify documents for you. Alternatively you can ask a Justice of the Peace, New Zealand registered lawyer, accountant, teacher or doctor, Police Officer, Notary Public or Member of Parliament who is not related to you, is not your spouse or partner and does not live at the same address. The Approved Person must view the original document (not a fax, photocopy or scan) before writing their name, occupation, date and signature and a statement as follows: I certify this to be a true copy of the original document and confirm that it represents the identity of (full name). Certification is valid for three months. Identity documents when investing for minors Please provide a birth certificate on behalf of the minor which includes name/s of parent/s. If the child is transferring from another KiwiSaver Scheme a passport is acceptable. Each person signing as a parent or legal guardian must provide their personal identity documents as listed in the table on the previous page. Legal guardians who are not listed on the minor s birth certificate must provide proof of guardianship. Identity documents when investing for another person Each person signing as an attorney must provide: Their personal identity documentation as listed above; Power of Attorney and a Certificate of non-revocation. Proof of bank account (does not need to be certified) If you are setting up a regular investment by direct debit authority, please provide one of the following as proof of the nominated bank account: Bank statement dated within the last three months; or A bank generated deposit slip Privacy Act The information that you provide us in this application and which you may provide us in the future may be used by Fisher Funds, the Trustee and any related entities of either, your financial adviser or the distribution entity through which you joined the Scheme (if applicable) and by other service providers to the Scheme to provide services in relation to your investment and to promote to you other products and services. You have the right to access the information held by us and you may also request that it be corrected by contacting us. We will provide you (on request) with the name and address of any entity to which information has been disclosed. If you do not provide the information requested on the application form, we may not be able to process your application. Declaration I have read a copy of the Investment Statement and agree to be bound by the terms and conditions of the Trust Deed. I understand that the Scheme is a vehicle for long term investment and that the value of my investment is liable to fluctuations and may rise and fall from time to time. I understand the manner in which the fees will be deducted from my investment. I acknowledge that neither the Trustee nor the Manager will be liable to me for any loss as a consequence of the investment direction given on this form or any later investment direction given in accordance with the Trust Deed (and that none of the Manager, the Trustee, the Crown or any other person guarantees the performance of the investment fund(s) I select). The Investment Statement has been given, and the offer of securities has been made, to me in New Zealand. I meet the eligibility criteria for joining the Scheme as set out on page 6 of the Investment Statement. Signature of applicant (if 16 or older) Date If the applicant is 16 or 17, the applicant and one legal guardian must co-sign. If the applicant is under 16 both the legal guardians must sign on behalf of the applicant. Legal guardians must provide identification in accordance with the requirements on page 24. Distributor details Name of distributor Distributor code/fsp number Company (if applicable) July

32 Legal guardian of a minor (required if the applicant is aged under 18) Title First name/s Surname Date of birth Address (if different from that of minor) City Country Postcode What is your relationship to the minor ie father/mother/guardian I confirm that I am a legal guardian of the applicant and that I accept the Declaration, on behalf of the applicant. Signature of legal guardian Date Second legal guardian of a minor (required if the applicant is aged under 16 and has more than one legal guardian) Title First name/s Surname Date of birth Address (if different from that of minor) City Country Postcode What is your relationship to the minor ie father/mother/guardian I confirm that I am a legal guardian of the applicant and that I accept the Declaration, on behalf of the applicant. Signature of legal guardian Date Attorney (if applicable) Title First name/s Surname Date of birth Address (if different from that of applicant) City Country Postcode What is your relationship to the applicant Signature of attorney Date 30

33 KiwiSaver Scheme Application Form Please mail this Application Form, together with (if applicable) your cheque payable to KiwiSaver Scheme and/or your Direct Debit Authority, and any other relevant documentation, to: Management Limited, c/o Securities Services Division, Trustees Executors Limited, PO Box 409, Wellington, Investor details Title First name/s Surname Please list any other names you have been known by or you are currently known by e.g. maiden name, former married name, alias etc. Date of birth IRD no. Prescribed Investor Rate (PIR) - Please tick one - see page 16 to determine your rate; if a PIR is not selected, 28% will apply. 10.5% 17.5% 28% Physical address (not a PO Box number) City Country Postcode Postal address (if different from above) City Country Postcode Home phone ( ) Business phone ( ) Mobile ( ) address (to receive newsletters and monthly online reporting) Contribution details If you are employed If you are employed your regular contributions will be made by your employer (whom you authorise to deduct those amounts from your pay). If you wish to invest an additional amount directly please refer to page 9. Employee elected contribution rate (as a percentage of gross wages or salary) You must let your employer know the contribution rate you have elected. Employer details Company name Postal address 3% 4% 8% Business phone ( ) Postcode If you are not employed If you are not employed (self-employed, unemployed, under 18 and not working, retired, etc) you will invest directly with. Please complete the amount of your initial investment. Initial investment $ (If you wish to make regular contributions, please complete the Direct Debit Form or see page 9 to set up an automatic payment). July

34 Investment options You can select from three investment strategies (a carefully designed investment mix to suit a specific investor profile) or you can build your own investment strategy by choosing either a specific Fund or a mix of both Funds in the proportions you wish. For help with choosing an investment strategy please refer to pages 32 to 43 of the accompanying with you all the way booklet). You can change your contribution proportions twice a year at no cost. We recommend that you obtain advice from a financial adviser before making a decision to invest or change your investment. To select one of our investment strategies, tick the relevant box below: Conservative strategy (100% Conservative Fund) Balanced strategy (55% Conservative Fund; 45% Growth Fund) Growth strategy (100% Growth Fund) or To build your own investment strategy simply complete the table below: Funds % Contributions Conservative Fund % Growth Fund % The total must equal 100% 100% If you do not make any choice, your contributions will be invested according to the Balanced Strategy (currently 55% Conservative Fund, 45% Growth Fund). By signing this Application Form you acknowledge that: (i) choosing an investment strategy is solely your responsibility and neither nor the Trustee of the Scheme is to be regarded as representing or implying that any particular investment strategy is appropriate for your personal circumstances; (ii) the Investment Statement does not give financial advice and if you are unsure about choosing an investment strategy you can seek advice from a financial adviser; (iii) your choice of an investment strategy will be a binding direction from you to the Trustee of the Scheme for the purposes of the Trustee Act 1956; and (iv) you may change your investment strategy up to twice a year. Transfers from other superannuation schemes Are you transferring from another KiwiSaver scheme? Yes No Name of scheme provider (if known) I apply to transfer my benefit from the above scheme to the KiwiSaver Scheme. I authorise the Manager or the Trustee of the transferring scheme to provide to or the Trustee of the Scheme any of my personal information as necessary to complete the transfer of my benefits. If you wish to transfer funds from a registered New Zealand, Australian or United Kingdom superannuation scheme, please contact on 0800 FFKIWI ( ). Receiving information about your investment By signing this Application Form you agree to receive all forms of communication from us by . This will include where possible our monthly newsletter Nest Egg News, quarterly and annual personalised statements, annual PIE tax statements and news of investor events. You also consent to receiving a web link URL for access to electronic copies of the Scheme s annual reports. Tick here if you wish to receive correspondence by post (excluding Nest Egg News). Identity documents Please provide one of the following identity options which must be certified (see below for more information): Identity Documents (must be certified*) OPTION 1 OPTION 2 Passport; or New Zealand drivers licence; or New Zealand firearms licence PLUS proof of residential address (does not need to be certified) Bank Statement dated within the last three months; or Birth certificate; or Citizenship certificate Together with one of the following: HANZ 18+ card; or Tertiary student photo ID; or Current international driving permit Any New Zealand Government Department statement dated within the last three months; or New Zealand utility company statement ie: electricity, gas, phone, SKY dated within the last three months. 32

35 *Certifying your identity documents All copies of identity documents must be completely legible with clear photos. They must also be certified by an Approved Person (at least 16 years of age) as being a true reproduction of the original document. A representative or an Authorised Distributor can copy and certify documents for you. Alternatively you can ask a Justice of the Peace, New Zealand registered lawyer, accountant, teacher or doctor, Police Officer, Notary Public or Member of Parliament who is not related to you, is not your spouse or partner and does not live at the same address. The Approved Person must view the original document (not a fax, photocopy or scan) before writing their name, occupation, date and signature and a statement as follows: I certify this to be a true copy of the original document and confirm that it represents the identity of (full name). Certification is valid for three months. Identity documents when investing for minors Please provide a birth certificate on behalf of the minor which includes name/s of parent/s. If the child is transferring from another KiwiSaver Scheme a passport is acceptable. Each person signing as a parent or legal guardian must provide their personal identity documents as listed in the table on the previous page. Legal guardians who are not listed on the minor s birth certificate must provide proof of guardianship. Identity documents when investing for another person Each person signing as an attorney must provide: Their personal identity documentation as listed above; Power of Attorney and a Certificate of non-revocation. Proof of bank account (does not need to be certified) If you are setting up a regular investment by direct debit authority, please provide one of the following as proof of the nominated bank account: Bank statement dated within the last three months; or A bank generated deposit slip Privacy Act The information that you provide us in this application and which you may provide us in the future may be used by Fisher Funds, the Trustee and any related entities of either, your financial adviser or the distribution entity through which you joined the Scheme (if applicable) and by other service providers to the Scheme to provide services in relation to your investment and to promote to you other products and services. You have the right to access the information held by us and you may also request that it be corrected by contacting us. We will provide you (on request) with the name and address of any entity to which information has been disclosed. If you do not provide the information requested on the application form, we may not be able to process your application. Declaration I have read a copy of the Investment Statement and agree to be bound by the terms and conditions of the Trust Deed. I understand that the Scheme is a vehicle for long term investment and that the value of my investment is liable to fluctuations and may rise and fall from time to time. I understand the manner in which the fees will be deducted from my investment. I acknowledge that neither the Trustee nor the Manager will be liable to me for any loss as a consequence of the investment direction given on this form or any later investment direction given in accordance with the Trust Deed (and that none of the Manager, the Trustee, the Crown or any other person guarantees the performance of the investment fund(s) I select). The Investment Statement has been given, and the offer of securities has been made, to me in New Zealand. I meet the eligibility criteria for joining the Scheme as set out on page 6 of the Investment Statement. Signature of applicant (if 16 or older) Date If the applicant is 16 or 17, the applicant and one legal guardian must co-sign. If the applicant is under 16 both the legal guardians must sign on behalf of the applicant. Legal guardians must provide identification in accordance with the requirements on page 24. Distributor details Name of distributor Distributor code/fsp number Company (if applicable) July

36 Legal guardian of a minor (required if the applicant is aged under 18) Title First name/s Surname Date of birth Address (if different from that of minor) City Country Postcode What is your relationship to the minor ie father/mother/guardian I confirm that I am a legal guardian of the applicant and that I accept the Declaration, on behalf of the applicant. Signature of legal guardian Date Second legal guardian of a minor (required if the applicant is aged under 16 and has more than one legal guardian) Title First name/s Surname Date of birth Address (if different from that of minor) City Country Postcode What is your relationship to the minor ie father/mother/guardian I confirm that I am a legal guardian of the applicant and that I accept the Declaration, on behalf of the applicant. Signature of legal guardian Date Attorney (if applicable) Title First name/s Surname Date of birth Address (if different from that of applicant) City Country Postcode What is your relationship to the applicant Signature of attorney Date 34

37 KiwiSaver Scheme Application Form Please mail this Application Form, together with (if applicable) your cheque payable to KiwiSaver Scheme and/or your Direct Debit Authority, and any other relevant documentation, to: Management Limited, c/o Securities Services Division, Trustees Executors Limited, PO Box 409, Wellington, Investor details Title First name/s Surname Please list any other names you have been known by or you are currently known by e.g. maiden name, former married name, alias etc. Date of birth IRD no. Prescribed Investor Rate (PIR) - Please tick one - see page 16 to determine your rate; if a PIR is not selected, 28% will apply. 10.5% 17.5% 28% Physical address (not a PO Box number) City Country Postcode Postal address (if different from above) City Country Postcode Home phone ( ) Business phone ( ) Mobile ( ) address (to receive newsletters and monthly online reporting) Contribution details If you are employed If you are employed your regular contributions will be made by your employer (whom you authorise to deduct those amounts from your pay). If you wish to invest an additional amount directly please refer to page 9. Employee elected contribution rate (as a percentage of gross wages or salary) You must let your employer know the contribution rate you have elected. Employer details Company name Postal address 3% 4% 8% Business phone ( ) Postcode If you are not employed If you are not employed (self-employed, unemployed, under 18 and not working, retired, etc) you will invest directly with. Please complete the amount of your initial investment. Initial investment $ (If you wish to make regular contributions, please complete the Direct Debit Form or see page 9 to set up an automatic payment). July

38 Investment options You can select from three investment strategies (a carefully designed investment mix to suit a specific investor profile) or you can build your own investment strategy by choosing either a specific Fund or a mix of both Funds in the proportions you wish. For help with choosing an investment strategy please refer to pages 32 to 43 of the accompanying with you all the way booklet). You can change your contribution proportions twice a year at no cost. We recommend that you obtain advice from a financial adviser before making a decision to invest or change your investment. To select one of our investment strategies, tick the relevant box below: Conservative strategy (100% Conservative Fund) Balanced strategy (55% Conservative Fund; 45% Growth Fund) Growth strategy (100% Growth Fund) or To build your own investment strategy simply complete the table below: Funds % Contributions Conservative Fund % Growth Fund % The total must equal 100% 100% If you do not make any choice, your contributions will be invested according to the Balanced Strategy (currently 55% Conservative Fund, 45% Growth Fund). By signing this Application Form you acknowledge that: (i) choosing an investment strategy is solely your responsibility and neither nor the Trustee of the Scheme is to be regarded as representing or implying that any particular investment strategy is appropriate for your personal circumstances; (ii) the Investment Statement does not give financial advice and if you are unsure about choosing an investment strategy you can seek advice from a financial adviser; (iii) your choice of an investment strategy will be a binding direction from you to the Trustee of the Scheme for the purposes of the Trustee Act 1956; and (iv) you may change your investment strategy up to twice a year. Transfers from other superannuation schemes Are you transferring from another KiwiSaver scheme? Yes No Name of scheme provider (if known) I apply to transfer my benefit from the above scheme to the KiwiSaver Scheme. I authorise the Manager or the Trustee of the transferring scheme to provide to or the Trustee of the Scheme any of my personal information as necessary to complete the transfer of my benefits. If you wish to transfer funds from a registered New Zealand, Australian or United Kingdom superannuation scheme, please contact on 0800 FFKIWI ( ). Receiving information about your investment By signing this Application Form you agree to receive all forms of communication from us by . This will include where possible our monthly newsletter Nest Egg News, quarterly and annual personalised statements, annual PIE tax statements and news of investor events. You also consent to receiving a web link URL for access to electronic copies of the Scheme s annual reports. Tick here if you wish to receive correspondence by post (excluding Nest Egg News). Identity documents Please provide one of the following identity options which must be certified (see below for more information): Identity Documents (must be certified*) OPTION 1 OPTION 2 Passport; or New Zealand drivers licence; or New Zealand firearms licence PLUS proof of residential address (does not need to be certified) Bank Statement dated within the last three months; or Birth certificate; or Citizenship certificate Together with one of the following: HANZ 18+ card; or Tertiary student photo ID; or Current international driving permit Any New Zealand Government Department statement dated within the last three months; or New Zealand utility company statement ie: electricity, gas, phone, SKY dated within the last three months. 36

39 *Certifying your identity documents All copies of identity documents must be completely legible with clear photos. They must also be certified by an Approved Person (at least 16 years of age) as being a true reproduction of the original document. A representative or an Authorised Distributor can copy and certify documents for you. Alternatively you can ask a Justice of the Peace, New Zealand registered lawyer, accountant, teacher or doctor, Police Officer, Notary Public or Member of Parliament who is not related to you, is not your spouse or partner and does not live at the same address. The Approved Person must view the original document (not a fax, photocopy or scan) before writing their name, occupation, date and signature and a statement as follows: I certify this to be a true copy of the original document and confirm that it represents the identity of (full name). Certification is valid for three months. Identity documents when investing for minors Please provide a birth certificate on behalf of the minor which includes name/s of parent/s. If the child is transferring from another KiwiSaver Scheme a passport is acceptable. Each person signing as a parent or legal guardian must provide their personal identity documents as listed in the table on the previous page. Legal guardians who are not listed on the minor s birth certificate must provide proof of guardianship. Identity documents when investing for another person Each person signing as an attorney must provide: Their personal identity documentation as listed above; Power of Attorney and a Certificate of non-revocation. Proof of bank account (does not need to be certified) If you are setting up a regular investment by direct debit authority, please provide one of the following as proof of the nominated bank account: Bank statement dated within the last three months; or A bank generated deposit slip Privacy Act The information that you provide us in this application and which you may provide us in the future may be used by Fisher Funds, the Trustee and any related entities of either, your financial adviser or the distribution entity through which you joined the Scheme (if applicable) and by other service providers to the Scheme to provide services in relation to your investment and to promote to you other products and services. You have the right to access the information held by us and you may also request that it be corrected by contacting us. We will provide you (on request) with the name and address of any entity to which information has been disclosed. If you do not provide the information requested on the application form, we may not be able to process your application. Declaration I have read a copy of the Investment Statement and agree to be bound by the terms and conditions of the Trust Deed. I understand that the Scheme is a vehicle for long term investment and that the value of my investment is liable to fluctuations and may rise and fall from time to time. I understand the manner in which the fees will be deducted from my investment. I acknowledge that neither the Trustee nor the Manager will be liable to me for any loss as a consequence of the investment direction given on this form or any later investment direction given in accordance with the Trust Deed (and that none of the Manager, the Trustee, the Crown or any other person guarantees the performance of the investment fund(s) I select). The Investment Statement has been given, and the offer of securities has been made, to me in New Zealand. I meet the eligibility criteria for joining the Scheme as set out on page 6 of the Investment Statement. Signature of applicant (if 16 or older) Date If the applicant is 16 or 17, the applicant and one legal guardian must co-sign. If the applicant is under 16 both the legal guardians must sign on behalf of the applicant. Legal guardians must provide identification in accordance with the requirements on page 24. Distributor details Name of distributor Distributor code/fsp number Company (if applicable) July

40 Legal guardian of a minor (required if the applicant is aged under 18) Title First name/s Surname Date of birth Address (if different from that of minor) City Country Postcode What is your relationship to the minor ie father/mother/guardian I confirm that I am a legal guardian of the applicant and that I accept the Declaration, on behalf of the applicant. Signature of legal guardian Date Second legal guardian of a minor (required if the applicant is aged under 16 and has more than one legal guardian) Title First name/s Surname Date of birth Address (if different from that of minor) City Country Postcode What is your relationship to the minor ie father/mother/guardian I confirm that I am a legal guardian of the applicant and that I accept the Declaration, on behalf of the applicant. Signature of legal guardian Date Attorney (if applicable) Title First name/s Surname Date of birth Address (if different from that of applicant) City Country Postcode What is your relationship to the applicant Signature of attorney Date 38

41 Direct Debit Authority Please mail this Direct Debit form to: Management Limited, c/o Securities Services Division, Trustees Executors Limited, PO Box 409, Wellington If you are transferring from another KiwiSaver Scheme, please cancel any direct debits in place with your old KiwiSaver Scheme provider. (For self employed and not employed wanting to make their contributions on a regular basis. Also available for employees wanting to make regular payments in addition to their 3%, 4% or 8% contribution deducted by their employer). Investor instructions Investor name KiwiSaver Scheme member no. (if an existing member) F I Start date Amount (Minimum payment amount regardless of frequency is $10) $ The KiwiSaver Scheme Weekly Fortnightly Monthly Quarterly Annual Please allow 5 business days from when we receive your application form for your direct debit to activate. I have read and retained a copy of the attached Investment Statement and agree to be bound by the terms and conditions of the Trust Deed. Bank instructions Name of account to be debited Account details Bank Branch Account number Suffix Bank/branch Please provide a copy of one of the following in the name of the bank account holder: Copy of a bank statement Pre-coded deposit slip Copy of a cheque Online bank account statement with the name of the bank in the footer Address (PO box) Town/city AUTHORITY TO ACCEPT DIRECT DEBITS (Not to operate as an assignment or agreement) Authorisation code Information to appear in my bank statement Payer particulars (To be completed by Investor) Payer code F I S H E R F U N D S K I W I S A V E R Payer reference Customer authorisation I authorise you, until further notice in writing, to debit my account with all amounts which TEA Custodians o/a Management Limited (hereinafter referred to as the Initiator) the registered Initiator of the above Authorisation Code, may initiate by Direct Debit. I acknowledge and accept that the bank accepts this authority only upon the conditions listed on the reverse of this form. Authorised signature Date Authorised signature Date For bank use only Approved Date received Recorded by Checked by Bank stamp /07 39

42 Conditions of Authority 1. The Initiator: a. Undertakes to give written notice to the Acceptor of the commencement date, frequency and amount at least 10 calendar days before the first Direct Debit is drawn, (but not more than 2 calendar months). In the event of any subsequent change to the frequency or amount of the regular Direct Debits, the Initiator has agreed to give written notice at least 30 days before the change comes into effect. b. May, upon the relationship which gave rise to this Authority being terminated, give notice to the Bank that no further Direct Debits are to be initiated under the Authority. Upon receipt of such notice the Bank may terminate this Authority as to future payments by notice in writing to me/us. c. May, upon receiving an authority transfer form (dated after the day of this authority) signed by me/us and addressed to a bank to which I/we have transferred my/ our bank account, initiate Direct Debits in reliance on that transfer form and this Authority for the account identified in the authority transfer form. 2. The Customer may: a. At any time, terminate this Authority as to future payments by giving written notice of termination to the Bank and to the Initiator. b. Stop payment of any Direct Debit to be initiated under this Authority by the Initiator by giving written notice to the Bank prior to the Direct Debit being paid by the Bank. c. Where a variation to the amount agreed between the Initiator and the Customer from time to time to be direct debited has been made without notice being given in terms of clause 1(a) above, request the Bank to reverse or alter any such Direct Debit initiated by the Initiator by debiting the amount of the reversal or alteration of a Direct Debit back to the Initiator through the Initiator s Bank. PROVIDED such request is made not more than 120 days from the date when the Direct Debit was debited to my/our account. 3. The Customer acknowledges that: a. This authority will remain in full force and effect in respect of all Direct Debits made from my/ our account in good faith notwithstanding my/ our death, bankruptcy or other revocation of this Authority until actual notice of such event is received by the Bank. b. In any event this Authority is subject to any arrangement now or hereafter existing between me/us and the Bank in relation to my/our account. c. Any dispute as to the correctness or validity of an amount debited to my/our account shall not be the concern of the Bank except in so far as the Direct Debit has not been paid in accordance with this Authority. Any other disputes lie between me/ us and the Initiator. d. The Bank accepts no responsibility or liability for the accuracy of information about payments on Bank Statements. e. The Bank is not responsible for, or under any liability in respect of: any variations between notices given by the Initiator and the amounts of Direct Debits. the Initiator s failure to give written advance notice correctly nor for the non-receipt or late receipt of notice by me/us for any f. Notice given by the Initiator in terms of clause 1(a) to the debtor responsible for the payment shall be effective. Any communication necessary because the debtor responsible for the payments is a person other than me/ us is a matter between me/us and the debtor concerned. 4. The Bank may: a. In its absolute discretion conclusively determine the order of priority of payment by it of any monies pursuant to this or any other Authority, cheque or draft properly executed by me/us and given to or drawn on the Bank. b. At any time terminate this Authority as to future payments by notice in writing to me/us. c. Charge its current fees for this service in force from time to time. d. Upon receipt of an authority transfer form signed by me/us from a bank to which my/our account has been transferred, transfer to that bank this Authority to Accept Direct Debits. 40

43 Changing Your Investment Options Form This Form is for existing KiwiSaver Scheme investors only. Before completing this form you should refer to the latest Investment Statement for the Scheme (to which this form is attached) to see what changes you can make to your investments and for details about the investment options. If you are unsure about choosing an investment strategy, you may wish to seek advice from a financial adviser. Please send this form to: KiwiSaver Scheme, c/o Securities Services Division, Trustees Executors, PO Box 409, Wellington, 6140 If you have not previously provided proof of identity then you will need to do so as outlined in the Application Form. Your details Title First names Surname Postal address Suburb Town/city Postcode Country Home phone Business phone ( ) ( ) Mobile ( ) IRD no. KiwiSaver Scheme member no. F I Changing your investment options Please make the following changes to my Scheme investment strategy: A Invest the total value of my current investment in the Fund(s) indicated in column A below B Invest all future contributions to the Scheme for my benefit in the Fund(s) as indicated in column B below Funds A - Current Scheme savings (The money already in my KiwiSaver Account) B - Future contributions (The money I will pay in the future) Conservative Fund % % Growth Fund % % The total must equal 100% 100% 100% Authorisation I understand that any change requested will be implemented as soon as practicable after receipt of this completed form. I understand that choosing an investment strategy is solely my responsibility, and neither nor the Trustee of the Scheme is to be regarded as representing or implying that any particular investment strategy is appropriate for my personal circumstances. I acknowledge that I have made this request of my own volition. I acknowledge that my choice of an investment strategy is a binding direction from me to the Trustee of the Scheme for Trustee Act 1956 purposes, and that neither the Trustee nor the Manager of the Scheme will be liable to me for any loss as a consequence of this investment direction. I acknowledge that none of my employer,, the Trustee, the Crown or any other person guarantees the performance of the investment fund or funds selected. Declaration I have read the current Investment Statement for the Scheme. I understand my rights, benefits and obligations as a Scheme member, that the Scheme is a vehicle for long-term investment and that the value of my investment is liable to fluctuations and may rise and fall from time to time. Signature* Date *For a member aged below 16, this form must be signed not by the member but by a legal guardian of the member. Members aged 16 or over may exercise membership-related discretions themselves. 41

44

45 is a common sense investor. Our straightforward investment approach has worked for many years, and more than 250,000 New Zealand investors now benefit from our time tested expertise.