MERCER SUPER TRUST PRODUCT DISCLOSURE STATEMENT

Transcription

1 0 October 0 MERCER SUPER TRUST PRODUCT DISCLOSURE STATEMENT THIS REPLACEMENT PRODUCT DISCLOSURE STATEMENT REPLACES THE PRODUCT DISCLOSURE STATEMENT DATED SEPTEMBER 0. This document gives you important information about this investment to help you decide whether you want to invest. There is other useful information about this offer on Mercer (N.Z.) Limited has prepared this document in accordance with the Financial Markets Conduct Act 0. You can also seek advice from a financial adviser to help you to make an investment decision. Issuer: Mercer (N.Z.) Limited

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3 SECTION KEY INFORMATION SUMMARY WHAT IS THIS? This is a managed investment scheme. Your money will be pooled with other investors money and invested in various investments. Mercer (N.Z.) Limited (Mercer) will invest your money and charge you a fee for its services. The s you receive are dependent on the investment decisions of Mercer and the performance of the investments. The value of those investments may go up or down. The types of investments and the fees you will be charged are described in this document. WHAT WILL YOUR MONEY BE INVESTED IN? The Mercer Super Trust ( MST or Scheme ) offers seven funds. These funds are summarised on the following page. More information about the investment targets and strategy for each fund is provided in Section (Description of your investment option(s)). WHO MANAGES THE MERCER SUPER TRUST? The manager of the MST is Mercer. Further information regarding the manager is set out in Section (Who is involved?) of this Product Disclosure Statement ( PDS ). HOW CAN YOU GET YOUR MONEY OUT? Withdrawals are restricted as the MST is a workplace savings scheme that provides retirement benefits as well as permitting benefits in certain other circumstances. These benefits are documented in the Your Plan Details document ( YPD ). To get your money out from the MST you will need to apply for a withdrawal permitted under the trust deed or if applicable on or after leaving the service of a Participating Employer. Otherwise where applicable you can get your money out when you reach the retirement age stipulated in the YPD. An insured benefit may also be paid in relation to disablement and death if your MST Plan ( Plan ) has insurance cover, subject to acceptance by the relevant insurer. Personal Investment Programme members can request a full or partial benefit payment at any time. Further information can be found in Section (How does this investment work?). HOW WILL YOUR INVESTMENT BE TAXED? The MST is a Portfolio Investment Entity (PIE). The amount of tax you pay in respect of a PIE is based on your Prescribed Investor Rate (PIR). This can be 0.%,.% or 8%. See Section of the PDS (What taxes will you pay?) on page for more information. WHERE CAN YOU FIND MORE KEY INFORMATION? Mercer is required to publish quarterly updates for each fund. The updates show the s and the total fees actually charged to investors during the previous year. The latest fund updates are available at Mercer will also give you copies of those documents on request.

4 FUND INVESTMENT OBJECTIVE Mercer Invests mainly in cash and short term interest bearing investments. Designed for investors who want no exposure to growth assets or where the funds may be required in the shorter term. Cash Mercer Invests mostly in cash and fixed interest, Conservative with only limited investment in growth and real assets. assets such asshares May be suitable for investors who want lower to achieve slightly higherhigher s than those expected from investing solely in cash. Investors need to be comfortable with the possibility of some fluctuations in s. Mercer Moderate Mercer Balanced higher higher higher higher higher lower higher higher higher lower higher higher lower higher higher higher lower higher higher Invests in a wide range of assets. May be suitable for investors who want a diversified investment with exposure to shares, real assets, alternative lower higher assets, fixed interest and cash, who are comfortable with a higher degree of volatility in s than can be expected from the Moderate fund and who can invest for the long term. lower Invests almost entirely in growth assets such as shares, real assets and a small alternative assets, with only amount invested in cash and fixed lower interest. May be suitablehigher for investors wanting predominately to invest in growth assets, who want higher long with lower and higher term s are comfortable high volatility in s. Mercer Shares Invests almost entirely in the share higher market. May be suitable for investors seeking exposure mostly to shares and who are comfortable with a high level of lower higher volatility in s. higher lower higher higher lower higher higher higher higher higher Annual fund charges fees for and membership your Plan are documented lower in the YPD provided to you higher with thispds. Please also see Section (What are the fees?) higher lower of this document for further lower higher details of feesthat may apply. higher lower higher higher lower higher higher lower higher higher higher higher higher higher lower higher See Section (Whatlower are the s of investing?) for an explanation of the indicator and for information about other s that are not included in the indicator. To help you clarify your own attitude to, you can seek financial advice or work out your own profile at higher higher higher higher lower I ndividual action fees) may apply. See Section (What are the higher fees?) fees (including contribution for further details. In addition, higher if your Plan charges contribution fees, these will be disclosed in the YPD. higher higher Invests mainly in growth assets such as shares, real assets and alternative assets with only a limited amount in cash and fixed interest. May be suitable for investors wanting to invest mostly in growth assets who are comfortable accepting than more volatile s those expected from the Balanced fund lower higher with a view to achieving higher longer term s. ANNUAL FUND CHARGES PER INVESTOR Invests in cash and fixed interest, with higher about a third of investments being in growth assets such as shares and real assets. May be suitable for investors who want to invest in a broad mix of assets and who are comfortable with a higher degree of volatility in s than can be expected from the lower higher Conservative fund. Mercer Growth Mercer Growth R I S K I N D I C ATO R higher

5 TABLE OF CONTENTS SECTION KEY INFORMATION SUMMARY... SECTION HOW DOES THIS INVESTMENT WORK?... SECTION DESCRIPTION OF YOUR INVESTMENT OPTION(S)...0 SECTION WHAT ARE THE RISKS OF INVESTING?... SECTION WHAT ARE THE FEES?... SECTION WHAT TAXES WILL YOU PAY?... SECTION WHO IS INVOLVED?... SECTION 8 HOW TO COMPLAIN... SECTION 9 WHERE YOU CAN FIND MORE INFORMATION... SECTION 0 HOW TO APPLY...

6 SECTION HOW DOES THIS INVESTMENT WORK? The MST is a managed investment scheme with a Defined Contributions Division divided into two sections. Section A is registered under the Financial Markets Conduct Act 0 as a workplace savings scheme which is designed to help you save for your retirement. You are being offered membership in section A. Section B is a legacy section and is closed to new members. The MST is governed by a trust deed (as amended from time to time). The supervisor (or a custodian appointed by the supervisor) holds the investments of the Scheme. A separate and independent manager makes the investment management and other administrative and operational decisions for the benefit of all investors. The manager also gives instructions to the supervisor as to how to deal with the investments. The supervisor supervises the manager s performance of its functions and its issuer obligations. The Scheme is a pooled fund which means that your money is pooled with other investors money and invested. Pooling money can enable access to a wider variety of assets and provide greater diversity than you may achieve on your own. As an investor, every time you contribute to the Scheme you will receive units corresponding to whichever of the funds within the Scheme you invest in. Mercer makes the investment decisions and looks after the general operations of the Scheme and each fund. Mercer s duties are supervised by Trustees Executors Limited, the supervisor of the Scheme. The number of units that an investor holds in a fund represents that investor s proportionate interest in that fund. Units only give a beneficial interest in a fund. Each unit represents an equal beneficial interest in the net investments of that fund. A unit does not give rise to an interest in any particular investment of the relevant fund. An investor can only access the value of their investment by redeeming units. There are no regular distributions from the Scheme. Withdrawals from the Scheme can be made only in circumstances specified in this section. All units in a fund have equal value. The value of units will fluctuate over time, and may rise or fall. The MST is a defined contribution scheme. This means that an investor contributes to the Scheme over time and benefits payable depend on the amount of contributions made by the investor or on behalf of the investor, and any investment s on those contributions. There are seven funds unless a lesser number of funds for a Plan are specified in the YPD. An investor may invest in any one of the available funds, or in a combination of these funds. If at any time the assets of a fund are insufficient to meet the liabilities of that fund, those liabilities may be met from the assets of the other funds in the MST, allocated in such equitable manner as Mercer considers reasonable. Responsible investment, including environmental, social, and governance considerations, is taken into account in the investment policies and procedures of the Scheme as at the date of this product disclosure statement. You can view the responsible investment policy at The key benefits of investing in the Scheme managed by Mercer are: a choice of one or more of up to seven investment options sector specialist investment management dedicated global investment research quality administration and member services regular reporting and newsletters; and access to our member website and dedicated helpline.

7 JOINING THE SCHEME You can join the Scheme if you are eligible, usually where you are an employee and your employer has chosen the MST as its workplace savings scheme. Each participating employer has a plan within this Scheme and for these plans, your employer determines the criteria for Plan membership. Your Plan may have more than one membership category. Your employer will tell you which category applies to you. If your Plan includes insurance cover, by joining when you are first offered membership you may be accepted for your Plan s insurance cover without the need to provide medical evidence. Please refer to the YPD for any specific criteria that applies to your Plan. Further information about applying to join the Scheme is set out in Section 0 (How to apply). Personal Investment Programme If you leave your employer you can continue saving in the Mercer Super Trust by participating in the Personal Investment Programme (PIP), subject to your employer s agreement. See further information in this PDS and the YPD about the PIP. If you are an employee, you can choose to contribute at the rate stipulated in the YPD. Your employer will deduct the contributions at the applicable contribution rate from each payment of your after tax salary or wages and pay them to the MST. You can change your contribution rate to the percentage of your gross salary or wages (as the case may be) stipulated in your Plan at any time by notifying your employer accordingly. If you would like to contribute more than the maximum basic contribution rate for your Plan, you may be able to make regular or lump sum voluntary contributions. With your employer s consent and subject to any conditions determined by your employer, you may elect to have some or all of your basic and/or employer contributions to your Plan paid instead to a KiwiSaver scheme or complying superannuation fund. More information on how to make contributions can be found at MAKING INVESTMENTS You generally contribute to your Plan through deductions from your pay. Your employer may also contribute on your behalf. All employer contributions are subject to Employer Superannuation Contribution Tax (ESCT). T Y P E O F CONTRIBUTION Member basic contributions Any additional voluntary contributions in excess of your basic contributions (if allowed) Any voluntary lump sum contributions (if allowed) Your employer s contributions (if any) ACCOUNT CREDITED TO Member Basic Account Member Voluntary Account Member Voluntary Account Employer Account Total of the Accounts above = your Member s Account Note: Membership fees and insurance premiums may be deducted from the above accounts. The value of your Member Account will be determined by the value of your investment. The investment s may be positive or negative.

8 WITHDRAWING YOUR INVESTMENTS You can only withdraw your investment as specified by the trust deed, your Plan s participation deed, or otherwise as required or committed by law. Your interest or any future benefits that will or may become payable under the Scheme must not be assigned or charged or passed to any other person whether by way of security, operation of law, or any other means. The table below sets out the benefits that may be available to you. Your Member s Account balance is calculated by multiplying the number of units allocated in each option by the sell price per unit applying to that investment option at the date your benefit is payable. An investor may only withdraw contributions that form part of the Member s Account balance in the following circumstances: TYPE OF BENEFIT ELIGIBILITY REQUIREMENTS BENEFIT PAYABLE Retirement Early retirement* Retrenchment or redundancy* Resignation or leaving service Subject to any Plan restrictions, requested on or after reaching your Plan s normal retirement age or on retirement on or after normal retirement age. Retirement before your Plan s normal retirement age, including early retirement due to ill-health. Your employer certifying to the manager that your position has been retrenched. Leaving your employer without being entitled to any other benefit from the Plan. Member s Account balance Member s Account balance Member s Account balance** Member Basic Account, Member s Voluntary Account and all or part of your Employer Account. Check the YPD to see if payment of your Employer Account is dependent on you completing a period of Plan membership or service with your employer (referred to as vesting). Death Death while a member of a Plan. Your Member s Account balance plus any insured benefit*** Total & permanent disablement Significant financial hardship* Relationship property Disablement will be determined in accordance with the terms of the trust deed. If your Plan includes insurance cover, disablement which the insurer determines qualifies as total and permanent disablement under its policy. You are suffering or are likely to suffer significant financial hardship in accordance with the terms of your Plan s participation deed. A court order is made under legislation to settle a division of relationship property. Member s Account balance plus any insured benefit *** Your Member Voluntary Account** Member s Account balance * Check the YPD to see if your Plan offers this benefit. ** If your Plan offers this benefit, only a portion of your Member s Account may be payable. Refer to the YPD. *** Check the YPD to see if your Plan includes insurance cover. Payment of any insured benefit is subject to the insurer accepting your cover and your claim. Other benefits may be payable in addition to those stated above. Please refer to the YPD for further details. 8

9 PERSONAL INVESTMENT PROGRAMME TYPE OF BENEFIT ELIGIBILITY REQUIREMENTS WHAT CAN I WITHDRAW? Full withdrawal benefit Request Member s Account balance Partial withdrawal benefit Request Part of Member s Account balance Death If you die while a member Member s Account balance WITHDRAWAL CONDITIONS Generally, when a benefit arises you may elect to: withdraw the full amount of your benefit leave all or part of your benefit in the MST until you need it set up regular payments from the MST into a bank account nominated by you. Conditions may apply (and if you are a member of a Plan, refer to the YPD for further information about this option). HOW TO SWITCH BETWEEN FUNDS You are able to switch from one fund to one or more funds within the Scheme by signing in to your MST account online at You may also redirect your ongoing contributions to one or more funds within the Scheme. SUSPENDING WITHDRAWALS Mercer may suspend withdrawals during any period if it considers the redemption price for units cannot be calculated in a fair manner or when it is unable to realise a sufficient amount of the underlying assets of a fund in order to satisfy fully a withdrawal request. 9

10 SECTION DESCRIPTION OF YOU R INVESTMENT OPTION(S) I N V E S T M E N T O P T I O N, S T R AT EG Y A N D O B J EC T I V E S Mercer Cash Invests mainly in cash and short term interest bearing investments. Designed for investors who want no exposure to growth assets or where the funds may be required in the shorter term. Mercer Conservative Invests mostly in cash and fixed interest, with only limited investment in growth assets such as shares and real assets. May be suitable for investors who want to achieve slightly higher s than those expected from investing solely in cash. Investors need to be comfortable with the possibility of some fluctuations in s. TA R G E T I N V E S T M E N T M I X Defensive 00% Cash 00% Defensive 80% Growth 0% Cash 0% r Australasian equities % International NZ fixed interest % % equities I nternational Listed property 0.88% fixed interest % lower higher retu Unlisted property 0.8% Commodities 0.0% Other*.% Mercer Moderate Invests in cash and fixed interest, with about a third of investments being in growth assets such as shares and real assets. May be suitable for investors who want to invest in a broad mix of assets and who are comfortable with a higher degree of volatility in s than can be expected from the Conservative fund. Mercer Balanced Invests in a wide range of assets. May be suitable for investors who want a diversified investment with exposure to shares, real assets, alternative assets, fixed interest and cash, who are comfortable with a higher degree of volatility in s than can be expected from the Moderate fund and who can invest for the long term. Defensive % Cash % equities % Australasian NZ fixed interest % International equities % I nternational Listed property % higher retu fixed interest 8% Unlisted property % Commodities % Other** % Defensive % Mercer Growth Invests almost entirely in growth assets such as shares, real assets and alternative assets, with only a small amount invested in cash and fixed interest. May be suitable for investors wanting to invest predominately in growth assets, who want higher long term s and are comfortable with high volatility in s. Mercer Shares Invests almost entirely in the share market. May be suitable for investors seeking exposure mostly to shares and who are comfortable with a high level of volatility in s. r Growth % Australasian equities 0% NZ fixed interest 0% International equities 8.% I nternational lower Listed property % higher retu fixed interest % Unlisted property % Commodities.% Cash 0% Mercer Growth Invests mainly in growth assets such as shares, real assets and alternative assets with only a limited amount in cash and fixed interest. May be suitable for investors wanting to invest mostly in growth assets who are comfortable accepting more volatile s than those expected from the Balanced fund with a view to achieving higher longerterm s. r Growth % Defensive % Cash % Other** 9% Growth % r Australasian equities % r NZ fixed interest % International equities % lower higher retu I nternational Listed property.% fixed interest % Unlisted property.% higher retu Commodities % Other** 0% Defensive 0% Cash % Growth 90% NZ fixed interest % I nternational fixed interest % Australasian equities 8% International equities % r r Listed property.% lower higher retu Unlisted property.% Commodities % Other** 0% higher retu Growth 00% r r equities % Australasian International equities % higher retu higher retu r Depending on the rules of your Plan you may have access to all or some of these options, refer to the YPD. r We regularly review our statement of investment policies and objectives, also known as the SIPO, which is available on Mercer, in consultation with the supervisor, may change it from time to time as a result of changes in the market or following a review by Mercer of the higher retu higher retu Scheme s investment policies or objectives. Any changes to the SIPO will be advised in the Scheme s annual report but will not otherwise be separately notified to investors. * Listed Infrastructure and Unlisted Infrastructure **Listed Infrastructure, Unlisted Infrastructure and Alternatives 0 r higher retu

11 R I S K I N D I C ATO R urn urn urn urn urn urn higher higher higher higher lower lower higher higher lower higher higher lower lower higher higher lower higher higher lower higher higher higher higher higher higher higher higher higher higher No minimum recommended timeframe higher Minimum years lower lower higher higher Minimum years lower lower higher higher higher lower lower higher higher higher Minimum years higher higher Minimum 8 years Minimum 0 years higher Minimum 0 years higher Further information about the assets in the funds can be found in the fund updates at urn urn urn urn lower lower lower urn urn M I N I M U M R EC O M M E N D E D I N V E S T M E N T T I M E FR A M E higher higher higher

12 SECTION WHAT ARE THE RISKS OF INVESTING? UNDERSTANDING THE RISK INDICATOR Managed funds in New Zealand must have a standard indicator. The indicator is designed to help investors understand the uncertainties both for loss and growth that may affect their investment. You can compare funds using the indicator. higher See Section (Description of your investment option(s)) for the indicators which have been calculated for the MST funds. The indicator is rated from (low) to (high). The rating reflects how much the value of the fund s assets goes up and down (volatility). A higher generally means higher potential s over time, but more ups and downs along the way. To help you clarify your own attitude to, you can seek financial advice or work out your profile at Profiler.aspx. Note that even the lowest category does not mean a -free investment, and there are other s (described under the heading Other specific s ) that are not captured by this rating. The indicator is not a guarantee of a fund s future performance. The indicator is based on the s data for the five years to 0 September 0. While indicators are usually relatively stable, they do shift from time to time. You can see the most recent indicator in the latest fund update for the relevant fund. GENERAL INVESTMENT RISKS Some of the things that may cause the fund s value to move up or down, which affect the indicator, are: investment portfolio and asset class, market, currency and interest rate. These s are summarised in this section. Investment Portfolio and Asset Class Risk Each fund will be subject to the particular s applying to the types of assets the fund invests in. Funds with a higher concentration of growth assets have a corresponding higher level of. Market Risk Returns on a fund s investments will be affected by the performance of the investment markets generally. Market performance is affected by demand and supply, economic, technological, political, tax and regulatory conditions as well as market sentiment. Currency Risk Where a fund invests outside of New Zealand, its s will be affected by movements between the other currencies and the New Zealand dollar. Interest Rate Risk The market value of a fund that includes fixed interest securities can change due to changes in interest rates generally. Relatively small changes in interest rates can significantly impact the market value of fixed interest assets. OTHER SPECIFIC RISKS There are circumstances which may arise and significantly increase the to s for investors (and which are not already reflected in the indicators). These s relate to Mercer s particular approach to management of the funds investments. Mercer is a manager of managers and therefore there is the that a manager we select underperforms, resulting in lower s than the relevant market or objective. To reduce this, Mercer have a thorough manager research and monitoring process, and Mercer also diversify across a number of managers. The MST assets are divided into seven separate funds; these funds do not constitute separate and independent trusts. Should the MST be wound up any liabilities and/or expenses attributable to a particular fund will be met in the first instance from the assets of that fund. In the event that the assets of a fund are insufficient to meet the liabilities of that fund, then those liabilities may be met from the assets of the other funds in the MST, allocated in such equitable manner as Mercer considers reasonable. MORE INFORMATION More information about s including active management (as a specific ), can be found in the document headed Other Material Information - Risks available at (search under Offers for Mercer Super Trust).

13 S E C T I O N WHAT ARE THE FEES? You will be charged fees for investing in the MST. Fees are deducted from your investment and will reduce your s. If Mercer invests in other funds, those funds may also charge fees. The fees you pay will be charged in two ways: regular charges (for example, annual fund charges). Small differences in these fees can have a big impact on your investment over the long term; one-off fees (for example the buy/sell spread). Any fees charged by funds that Mercer invests in will be included in Mercer s own charges. TOTAL ANNUAL FUND CHARGES AND OTHER CHARGES FUND MANAGER S BASIC FEE OTHER MANAGEMENT AND ADMINISTRATION CHARGES (Estimated % Per Annum) TOTAL ANNUAL FUND CHARGES O T H E R CHARGES (% Per Annum) Other Expenses (Estimated % Per Annum) External Manager Performance Fees (Estimated % Per Annum) (Estimated % Per Annum) (Membership Fee - $ Based) Mercer Cash Mercer Conservative Mercer Moderate Mercer Balanced Mercer Growth Mercer Growth Mercer Shares See the YPD for your Plan provided to you with this PDS in relation to the total annual fund charges that apply. See the YPD for your Plan provided to you with this PDS for details of your membership fee.* * The membership fee is a set charge on a monthly basis per investor (as set out in the YPD for your Plan) and does not vary if an investment is made in more than one fund. The fees disclosed are on a before-tax basis. GST may be added to fees and may be included in some expenses, where applicable. The total annual fund charges are set out in the YPD as a percentage of the net asset value of the fund. They are charged by Mercer. These charges cover fees of Mercer (Manager s Basic Fee) and the supervisor and the custodian (included in Other Expenses) in performing their management and supervisory functions (respectively) to the Scheme. As total annual fund charges vary from plan to Plan, consult your YPD for the fees applicable to you. The total annual fund charges include estimates for certain costs incurred and expenses recovered where Mercer invests into other funds, such as indirect costs charged by external investment trusts or managers of underlying funds. As these can change year on year, estimates have been used based on the total amount of such costs recovered for the previous financial year to March 0. Mercer is entitled to recover expenses in relation to actual outgoings reasonably incurred associated with the running of the MST. A 0.0% maximum expense reimbursement rate currently applies which has been included as part of the total annual fund charges percentage amount that will be stated in the YPD for your Plan. External manager performance fees of non-related underlying funds have been estimated based on the average annual performance fees over the five years to March 0. The fees incurred will depend on the managers selected and their performance. These managers can vary from time to time. Actual fees will fluctuate from these estimates as past performance is not indicative of future performance. The other charges cover fees that relate to the administration of your account, referred to as membership fees. They are charged by Mercer and are paid monthly. Membership fees do vary from plan to plan; please refer to the YPD for your specific charges and fees. Insurance charges may apply if you have been accepted for any insurance cover in your Plan. These charges may vary depending on your chosen level of cover and may increase with age and will be stipulated in the YPD if applicable.

14 INDIVIDUAL ACTION FEES There are currently no establishment or withdrawal fees charged to you. Contribution fees may apply for some plans and information about these can be obtained from the YPD where applicable. Upon the termination of a Plan established after September 999 a one-off termination fee of up to $00.00 per investor in the applicable Plan may apply. If the fee is unable to be paid by the participating employer associated with the Plan the deduction will be taken from your Plan account. You are not currently charged any other fees on an individual basis for investor-specific decisions or actions. If any additional fees on an individual action basis are introduced further information will be published at Buy/Sell spreads These apply to the following funds: B U Y / S E L L SPREAD Mercer Conservative 0.% Mercer Moderate 0.% Mercer Balanced 0.% Mercer Growth 0.% Mercer Growth 0.% Mercer Shares 0.% The buy/sell spread is designed to ensure, to the extent possible, that any transaction cost incurred as a result of an investor applying or withdrawing from a fund are borne by that investor and not other existing investors. The buy/sell spread for a fund is effectively applied at the time of making an application. An investor purchases units at the buy price, and these units are then valued at the sell price. The difference between these two prices is the buy/sell spread. EXAMPLE OF HOW FEES APPLY TO AN INVESTOR Ms Smith invests $0,000 in the Mercer Balanced fund of the MST. A buy/sell spread of 0.% is incorporated in the unit price that she pays for her investment. This equates to $. This means that the starting value of her investment is $9,9. She is also charged management and administration fees, which work out to about on average $.9 (.8% of $9,9). These fees might be more or less if her account balance has increased or decreased over the year. Over the year, Ms Smith pays other charges of (on average) $.8. This is a general example based on the average fees applicable as these vary by Plan. You may pay higher or lower fees. ESTIMATED TOTAL FEES FOR THE FIRST YEAR Individual action fees $ Fund charges $.9 Other charges $.8 See the latest fund update for an example of the actual s and fees investors were charged over the past year. This example applies only to the Mercer Balanced fund of the MST. If you are considering investing in other funds in the Scheme, this example may not be representative of the actual fees you may be charged. Differing fees such as contribution fees may apply to members of some plans. Refer to the YPD for more information. THE FEES CAN BE CHANGED The existing fees may be changed or new fees imposed in accordance with the trust deed and applicable law. The membership fee may be indexed from January in each year by an amount not exceeding in aggregate the increase in the Average Ordinary Time Weekly Earnings Index (as published by Statistics New Zealand) since midpoint August 99. Should this index be discontinued we may use a comparable available index in its place. There is no limitation placed on the adoption of increases reflecting annual increments in the index. Mercer must publish a fund update for each fund showing the fees actually charged during the most recent year. Fund updates, including past updates, are available at

15 SECTION WHAT TAXES WILL YOU PAY? The MST is a portfolio investment entity. The amount of tax you pay is based on your Prescribed Investor Rate (PIR). To determine your PIR, go to If you are unsure of your PIR, we recommend you seek professional advice or contact the Inland Revenue Department. It is your responsibility to tell Mercer your PIR when you invest or if your PIR changes. If you do not tell Mercer, a default rate may be applied. If the advised PIR is lower than the correct PIR, you will need to complete a personal tax and pay any tax shortfall, interest, and penalties. If the default rate or the advised PIR is higher than the correct PIR you will not get a refund of any overpaid tax. SECTION WHO IS INVOLVED? ABOUT MERCER Mercer has been operating in New Zealand since 9 providing investment, actuarial, consulting and administration services to employer based superannuation and workplace savings schemes as well as investment services to the wholesale sector. Mercer is part of the US based Marsh & McLennan group of companies, a global combination of professional services companies. Mercer and its directors can be contacted at the following address: Mercer (N.Z) Limited Queen Street Auckland 00 Telephone: 008 WHO ELSE IS INVOLVED? NAME ROLE Supervisor Trustees Executors Limited Supervisor of the Scheme under the Financial Markets Conduct Act 0, responsible for supervising Mercer as manager of the Scheme Custodian BNP Paribas Fund Services Australasia Pty Ltd Holds the assets of the Scheme separate to the manager and on behalf of the supervisor

16 SECTION 8 HOW TO COMPLAIN Please direct any complaints about your investment to Mercer at: Mercer (N.Z.) Limited Queen Street PO Box 09 Auckland 00 Attn: Inquiries and Privacy Officer Telephone: NZ.Privacy@mercer.com If we are unable to resolve your complaint, you may choose to contact the supervisor at: Trustees Executors Limited Level, Shortland Street Auckland 0 Attn: Client Services Manager Governance & Investor Oversight Telephone: Mercer is a member of the Insurance and Financial Services Ombudsman Scheme (IFSO) and the supervisor is a member of Financial Services Complaints Limited (FSCL) both of which are independent dispute resolution schemes. If you make a complaint to us and the complaint cannot be resolved, then you may refer it to the IFSO subject to certain conditions being met. Office of IFSO Level 8, Shamrock House 9-8 Molesworth Street Wellington PO Box 0-8 Wellington Telephone: 0 99 or Facsimile: info@ifso.nz The IFSO will not charge a fee to any complainant to investigate or resolve a complaint. Further information about referring a complaint to the IFSO can be found at If you have made a complaint to the supervisor, and it has not been resolved, you can refer it to FSCL at: th Floor, 0 Lambton Quay PO Box 9, Lambton Quay Wellington 0 Telephone: 0800 Facsimile: complaints@fscl.org.nz FSCL will not charge a fee to any complainant to investigate or resolve a complaint. Further information about referring a complaint to FSCL can be found at Different procedures apply for the IFSO and FSCL. Full details can be obtained at their respective websites.

17 SECTION 9 WHERE YOU CAN FIND MORE INFORMATION Further information relating to the MST and membership of the Scheme, including financial statements, is available on the offer register and the scheme register which can be found at A copy of the information on the offer register and the scheme register is available on request to the Registrar of Financial Service Providers. There is a PIE Tax Statement that will be provided to you each year you are a member of the MST. This will include the amount of PIE income attributed to you and the amount of PIE tax paid or refunded at your PIR. You will also be asked to confirm your IRD number and PIR annually. Fund updates and other information is available at Where your employer has chosen the MST as its workplace savings scheme, you can obtain information regarding your Plan as well as other documents relevant to the MST by either writing to Mercer or contacting us on 008. Information and documents include the following: the YPD for your Plan the participation deed (including amendments) for your Plan that are relevant to you the trust deed & designated rules the most recent audited financial statements the most recent annual report the Statement of Investment Policy & Objectives an estimate of your benefits All the information and documents can be obtained from Mercer free of charge. YOUR PLAN DETAILS The YPD contains important information about your Plan and should be read with this PDS. To access your YPD, log in to your account on and access your YPD in the Documents and Forms section. SECTION 0 HOW TO APPLY COMPLETE THE PAPER APPLICATION FORM The application form to join the MST is included with this PDS. Complete the form and it to your employer.

18 8 NOTES

19 MERCER SUPER TRUST APPLICATION FOR MEMBERSHIP FORM Please complete this form if you wish to join your Plan in the Mercer Super Trust. Please print in black or blue pen, in uppercase, one character per box and all that apply. PRIVACY STATEMENT Information in this form and any requested documents are being collected to enable administration of this account. The Privacy Act 99 entitles the account holder to access and to request correction of any personal information. STEP YOUR EMPLOYER AND PLAN NAME Employer s name Plan name STEP COMPLETE YOUR PERSONAL DETAILS Title: Mr Mrs Ms Miss Other Date of birth / / First name Middle name(s) Surname Residential address NUMBER STREET NAME SUBURB Mailing address (if different from residential address) NUMBER STREET NAME SUBURB CITY POSTCODE CITY POSTCODE Telephone Mobile Daytime STEP YOUR TAX DETAILS IRD number - - Please select your Prescribed Investor Rate (PIR): 0.%.% 8% Refer to the YPD for help selecting your Prescribed Investor Rate (PIR). STEP YOUR CONTRIBUTIONS Regular contributions (as a percentage of your before-tax salary deducted from your after-tax pay): Basic contributions Voluntary contributions % % (Refer to the YPD for the contribution rates that apply to your Plan.) I understand that my employer will not match any voluntary contributions to the Plan. STEP TRANSFER IN FROM ANOTHER SCHEME I wish to transfer the amount of $ from my previous scheme. The trustees or the supervisor of my previous scheme have approved the transfer. Please call the helpline on 008 for further information about transferring in amounts from another scheme. STEP INSURANCE COVER Refer to the YPD to see whether your Plan offers insured benefits. If it does, you need to complete and the insurance application form included with the YPD. Issued by Mercer (N.Z.) Limited as manager of the Scheme.

20 STEP FUNDS The MST offers a choice of up to seven investment funds. All seven funds may not be available in your Plan. If you do not choose an investment option, indicate an option that is not available in your Plan, or if the options you have chosen do not total 00%, your savings will be invested in your Plan s default investment fund. Refer to the relevant section in the YPD to see the funds available in your Plan and the default investment fund. Percentage to be invested Percentage to be invested Diversified funds Single sector funds Mercer Conservative % Mercer Cash % Mercer Moderate % Mercer Shares % Mercer Balanced % Mercer Growth % Mercer Growth % Total (must equal 00%) 00% Funds are subject to change. When selecting your fund(s) please ensure that you carefully consider the s associated with the different options. STEP 8 NOMINATION OF BENEFICIARIES (ONLY COMPLETE THIS SECTION IF YOUR PLAN OFFERS YOU THIS FEATURE) Your plan may allow you to nominate the person or people you would like the Manager to consider as recipients of your death benefit should you die while you are a member of the Plan. Refer to the YPD to see whether your plan offers this feature. I advise that in the event of my death, I wish the Manager to consider the following people as recipients of my benefit. Full name Date of birth Relationship (if any) Proportion of benefit % % % % The executors of my will or administrators of my estate % TOTAL 00% If you want to nominate more than six recipients, please list them on a separate sheet of paper and attach it to this form. I understand that this nomination is not binding by the Manager, but that full consideration will be given to my wishes. I also understand that any nomination made after the date of this nomination cancels this nomination. % STEP 9 SIGN THE FORM By signing this form I: acknowledge that I have received a copy of the Product Disclosure Statement dated 0 October 0 and the YPD relating to membership of my employer s plan in the MST apply to become a member of the MST and acknowledge that Mercer (N.Z) Limited does not make any recommendations regarding the Mercer Super Trust or guarantee the investment performance, earnings or of any capital invested in it. There is the potential to get back less than the amount invested. I am also aware that markets can fluctuate resulting in a change in the value of my investment accept that I will be bound by the provisions of the master deed of the MST, the designated rules of the MST and the Plan s participation deed, together with any amendments made from time to time authorise my employer to deduct from my salary (or wages) such contributions as are payable by me to the Plan and to pay those contributions to the Manager on my behalf authorise the Manager or supervisor to disclose any personal information relating to me as is necessary for the purposes of the Plan to my employer or the MST s advisers and to obtain any personal information relating to me which is necessary for the purposes of the Plan from any of those sources and agree that the Manager can keep me informed of other financial opportunities, products or services offered by us or by other parties authorised by us and that my personal information can be shared with such other authorised parties for these purposes authorise my employer and any adviser to give the Manager or supervisor any personal information required for the purposes of the plan from time to time agree that my membership of the Plan will take effect from the date determined by the Manager in accordance with the trust deed of the MST and the Plan s participation deed acknowledge that by providing my address, I am consenting to receiving information about the Plan (including the annual report) electronically. Should I not wish to receive such information electronically, or should my address change, I undertake to advise the Plan s Manager either by updating my personal details on or by calling the helpline on 008. All statements made by me in connection with this application are true and correct. Your name (please print) Signature Date / / Remember to sign this form and it to your employer. Page

21 EMPLOYER USE ONLY SECTION I acknowledge that the above applicant has received a copy of the Product Disclosure Statement dated 0 October 0 and the YPD for the employer Plan named on the first page of this form Your name (please print) Date applicant joined employer Date applicant joined the MST Annual salary on joining $ / / Payroll number Authorised signatory Date / / / / Is it the first time the applicant has been offered membership of the Plan? YES NO If this is not the first time the applicant has been offered membership of the Plan, at what date were they first offered membership? Date / / By signing this form, the employer named above confirms verification of the applicant s identity pursuant to section () of the Financial Transactions Reporting Act 99. Mercer Super Trust Application for Membership form 0/0 Issued by Mercer (N.Z.) Limited as manager of the Scheme. Page

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24 FOR FURTHER INFORMATION _MST_NZ_PDS_v