Personal Managed Funds

Transcription

1 Investment Statement 19 October 2009 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: What sort of investment is this? 5 Who is involved in providing it for me? 5 How much do I pay? 6 What are the charges? 7 What returns will I get? 8 What are my risks? 9 Can the investment be altered? 10 How do I cash in my investment? 11 Who do I contact with enquiries about my investment? 12 Is there anyone to whom I can complain if I have problems with the investment? 12 What other information can I obtain about this investment? 13 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. Engaging an investment adviser An investment adviser must give you a written statement that contains information about the adviser and his or her ability to give advice. You are strongly encouraged to read that document and consider the information in it when deciding whether or not to engage an adviser. Tell the adviser what the purpose of your investment is. This is important because different investments are suitable for different purposes, and carry different levels of risk. The written statement should contain important information about the adviser, including relevant experience and qualifications, and whether dispute resolution facilities are available to you; and what types of investments the adviser gives advice about; and whether the advice is limited to investments offered by 1 or more particular financial institutions; and information that may be relevant to the adviser s character, including certain criminal convictions, bankruptcy, any adverse findings by a court against the adviser in a professional capacity, and whether the adviser has been expelled from, or prohibited from joining, a professional body; and any relationships likely to give rise to a conflict of interest. The adviser must also tell you about fees and remuneration before giving you advice about an investment. The information about fees and remuneration must include the nature and level of the fees you will be charged for receiving the advice; and whether the adviser will or may receive a commission or other benefit from advising you. An investment adviser commits an offence if he or she does not provide you with the information required. This is an Investment Statement for the purposes of the Securities Act 1978, prepared as at 19 October There is a registered prospectus containing the offer of securities to which this Investment Statement relates. DS2561/1009 Assure Funds Management Limited. PO Box 603, 80 The Terrace, Wellington Member of the Global AXA Group.

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3 Investment Statement Active Growth Fund Designed to provide investors with strong capital growth of their savings over the medium to long-term by investing in an actively managed range of investment sectors that are weighted towards growth assets. Investment Strategy The Fund currently invests in a range of domestic and international investment sectors that include a low to moderate exposure to cash and bonds and a moderate to high exposure to growth assets such as shares. The total exposure to these asset classes is as follows: Asset Class Range Benchmark New Zealand Money Market 0% to 20.0% 5.0% New Zealand Fixed Interest 0% to 20.0% 5.0% International Fixed Interest 10% to 40.0% 25.0% Australasian Property 0% to 17.5% 2.5% International Property 0% to 19.0% 5.0% Global Infrastructure 0% to 17.5% 2.5% Australasian Equities 1% to 31.0% 16.0% The exposure between investment sectors can be varied to take advantage of perceived stronger opportunities as they arise. What are the risks associated with this strategy? In exchange for seeking the potential for higher returns than traditional cash investments, you need to accept a higher degree of risk. This Fund s investments are weighted towards growth assests, which means that the overall risk to investors is medium/high. While you are invested in this Fund the value of your investment is likely to fluctuate. This may result in you experiencing a negative return from time to time (ie a loss of capital value) the risk of this is increased if you invest for a short period of time. International Equities 15% to 45.0% 30.0% Emerging Markets 0% to 20.0% 5.0% Global Commodities 0% to 19.0% 4.0% Fund Summary Entry fee*: Early withdrawal fee*: Management fee*: Trustee fee*: Switching fee*: Nil. 1% of the amount withdrawn or $200 (whichever is the lower) if you make a withdrawal within two years of commencing your investment in this Fund. This fee does not currently apply to withdrawals by way of switches into another Fund or Funds. 1.75% pa of the Fund s average daily gross asset value (plus GST on 10% of the management fee) % pa of the Fund s average daily gross asset value (plus GST on 75% of the trustee fee). A switching fee will only apply where the switch is into a Fund with a higher entry fee, in which case the fee will be the difference between the entry fees. * The Manager and/or Trustee can vary the current fees or impose fees from time to time. Please refer to What are the charges? for further information on fees and costs. Taxation policy: Assets invested in: Potential return variability: Potential returns: As the Fund is currently taxed like a company, all taxable income received by you is taxed at 30 cents in the dollar. Domestic and international investment sectors that include cash, bonds and shares. Medium/high. Strong capital growth. 1

4 Investment Statement Balanced Fund Designed to provide investors with solid capital growth of their savings over the medium to long-term by investing in an actively managed, balanced range of investment sectors. Investment Strategy The Fund currently invests in a balanced range of domestic and international investment sectors that include cash, bonds and shares. In line with the diversified nature of the Fund, the total exposure to these asset classes is as follows: Asset Class Range Benchmark New Zealand Money Market 0% to 20.0% 5.0% New Zealand Fixed Interest 0% to 25.0% 10.0% International Fixed Interest 25% to 55.0% 40.0% Australasian Property 0% to 17.5% 2.5% International Property 0% to 19.0% 4.0% Global Infrastructure 0% to 17.5% 2.5% Australasian Equities 0% to 25.0% 10.0% The exposure between investment sectors can be varied to take advantage of perceived stronger opportunities as they arise. What are the risks associated with this strategy? In exchange for seeking the potential for higher returns than traditional cash investments, you need to accept a higher degree of risk. The balanced range of investments within this fund means that the overall risk to investors is medium. While you are invested in this Fund the value of your investment is likely to fluctuate. This may result in you experiencing a negative return from time to time (ie a loss of capital value) the risk of this is increased if you invest for a short period of time. International Equities 5% to 35.0% 20.0% Emerging Markets 0% to 18.0% 3.0% Global Commodities 0% to 18.0% 3.0% Fund Summary Entry fee*: Early withdrawal fee*: Management fee*: Trustee fee*: Switching fee*: Nil. 1% of the amount withdrawn or $200 (whichever is the lower) if you make a withdrawal within two years of commencing your investment in this Fund. This fee does not currently apply to withdrawals by way of switches into another Fund or Funds. 1.75% pa of the Fund s average daily gross asset value (plus GST on 10% of the management fee) % pa of the Fund s average daily gross asset value (plus GST on 75% of the trustee fee). A switching fee will only apply where the switch is into a Fund with a higher entry fee, in which case the fee will be the difference between the entry fees. * The Manager and/or Trustee can vary the current fees or impose fees from time to time. Please refer to What are the charges? for further information on fees and costs. Taxation policy: Assets invested in: Potential return variability: Potential returns: As the Fund is currently taxed like a company, all taxable income received by you is taxed at 30 cents in the dollar. Domestic and international investment sectors that include cash, bonds and shares. Medium. Solid capital growth. 2

5 International Bond Trust Designed to provide investors with moderate capital growth by investing in an actively managed diversified portfolio of selected international bond investments. Investment Strategy The Fund currently provides investors with access to a selection of long-term international fixed interest securities. The majority of the Fund s currency exposure will be hedged back to the New Zealand dollar. However, underlying fund managers are able to take limited active currency positions where they perceive an opportunity to add value. What are the risks associated with this strategy? Investing in international bond investments with some actively managed currency exposure carries a medium degree of risk that the value of your investment may fall, particularly in the short-term if interest rates are rising and/or there are adverse foreign currency exchange rate movements. Fund Summary Entry fee*: Early withdrawal fee*: Management fee*: Trustee fee*: Switching fee*: 3% of the amount of each contribution made. Nil. 1.25% pa of the Fund s average daily gross asset value (plus GST on 10% of the management fee) % pa of the Fund s average daily gross asset value (plus GST on 75% of the trustee fee). A switching fee will only apply where the switch is into a Fund with a higher entry fee, in which case the fee will be the difference between the entry fees. * The Manager and/or Trustee can vary the current fees or impose fees from time to time. Please refer to What are the charges? for further information on fees and costs. Taxation policy: Assets invested in: Potential return variability: Potential returns: As the Fund is currently taxed like a company, all taxable income received by you is taxed at 30 cents in the dollar. Wholesale unit trusts that provide exposure to international bond investments. Medium. Moderate capital growth. 3

6 Investment Statement International Equity Trust Designed to provide investors with strong capital growth by investing in an actively managed diversified portfolio of international shares. Investment Strategy The Fund currently provides investors with access to a selection of shares issued by companies listed on sharemarkets around the globe. Under normal circumstances, the Fund s currency exposure will not be hedged back to the New Zealand dollar. What are the risks associated with this strategy? In exchange for seeking a strong, long-term return from an exposure to international shares, you need to accept a higher degree of risk. Investing in unhedged international shares means that the overall risk to investors is medium/high. While you are invested in this Fund the value of your investment is likely to fluctuate. This may result in you experiencing a negative return from time to time (ie a loss of capital value) the risk of this is increased if you invest for a short period of time. Fund Summary Entry fee*: Early withdrawal fee*: Management fee*: Trustee fee*: Switching fee*: 5% of the amount of each contribution made. Nil. 1.50% pa of the Fund s average daily gross asset value (plus GST on 10% of the management fee) % pa of the Fund s average daily gross asset value (plus GST on 75% of the trustee fee). A switching fee will only apply where the switch is into a Fund with a higher entry fee, in which case the fee will be the difference between the entry fees. * The Manager and/or Trustee can vary the current fees or impose fees from time to time. Please refer to What are the charges? for further information on fees and costs. Taxation policy: Assets invested in: Potential return variability: Potential returns: As the Fund is currently taxed like a company, all taxable income received by you is taxed at 30 cents in the dollar. Wholesale unit trusts that provide exposure to international shares. Medium/high. Strong capital growth. 4

7 Answers to Commonly Asked Questions 1. What sort of investment is this? The Personal Managed Funds comprise four unit trusts (Balanced Fund, Active Growth Fund, International Bond Trust and International Equity Trust), collectively known as the Funds and individually as a Fund. The Balanced Fund and the Active Growth Fund are multi-sector funds. This means that each of these Funds has exposure to more than one investment sector, thereby reducing your exposure to the risks of any one sector as the different investment sectors react differently to changing economic and market conditions. These Funds invest in a range of assets including cash, and domestic and international bonds and shares (either directly or by investment in other Funds or pooled investment schemes). The International Bond Trust and International Equity Trust are single-sector funds which means they each primarily have exposure to a single investment sector, international bonds or shares respectively. This means that the performance of any of these particular Funds should largely reflect the characteristics of the particular investment sector over time. The Funds are known as pooled investments, because the contributions of many investors are grouped together so each investor can benefit from greater investment diversity than would be possible as a typical individual investor. By investing into a Fund you buy units in that Fund the more money you invest, the more units that are purchased. Subject to minimum investment requirements, units may be purchased by lump sum, regular contributions or a combination of both. These Funds are only available for subscription from within New Zealand. Please note that requests to switch, commence regular contributions or make lump sum investments will not be accepted from outside of New Zealand. For a more detailed description of each of the Funds, please refer to pages 1 to Who is involved in providing it for me? The Manager of the Funds is Assure Funds Management Limited whose address is AXA Centre, 80 The Terrace, Wellington, telephone , facsimile The day-to-day management of the register of unitholders, correspondence and support functions, is carried out by Managed Funds Administration, a division of Assure Funds Management Limited. The Trustee of the Funds is Public Trust whose address is 141 Willis Street, Wellington. National Mutual Assets Management (New Zealand) Limited ( AXA New Zealand ) is the promoter of the funds. The address of AXA New Zealand is set out in the directory of this Investment Statement. The Funds offered under this Investment Statement are: the Active Growth Fund, a unit trust which was established by a Trust Deed dated 18 March 1994 and invests in a range of assets that includes cash, domestic and international shares, bonds, and property, along with global infrastructure, emerging markets and global commodities; the Balanced Fund, a unit trust which was established by a Trust Deed dated 16 September 1987 and invests in a range of assets that includes cash, domestic and international shares, bonds, and property, along with global infrastructure, emerging markets and global commodities; the International Bond Trust, a unit trust which was established by a Trust Deed dated 25 March 1988 and invests primarily in an actively managed portfolio of selected international bond investments; the International Equity Trust, a unit trust which was established by a Trust Deed dated 16 September 1987 and invests primarily in an actively managed portfolio of selected international shares. Assure Funds Management Limited and AXA New Zealand are members of the global AXA Group. Investments in the Funds are subject to varying degrees of investment risk including possible loss of income or principal invested. The performance of or returns from the Funds, or the repayment of capital, is not guaranteed (in full or in part) by the Manager, AXA New Zealand or any other member of the global AXA Group, the Trustee or any other parties. 5

8 Investment Statement What is the Independent Trustee s Role? The Trustee s role is to monitor whether the Manager has managed the Funds in accordance with the provisions of the Trust Deeds and the offer of units in the relevant Fund. The Trustee does not guarantee the performance or returns of the Funds, or the repayment of capital. 3. How much do I pay? As long as you meet the minimum requirements from time to time for a regular contribution or for a lump sum investment, the decision is entirely over to you. At the date of this Investment Statement, the minimum regular and lump sum contributions are: Should I consider investing in more than one Fund? Regular (per unitholder) Lump Sum The choice of Funds allows you to construct a portfolio that matches your risk/return profile by selecting individual Funds, or a combination of Funds. Your financial adviser will guide you in the selection of Funds that match your risk/return profile. Weekly $50 Initial* $1,000 Fortnightly $100 Additional (per Fund) $500 Monthly $200 Quarterly $600 Annually $2,400 * The minimum initial lump sum investment in any one Fund is $1,000. The Manager may decline applications for units for any reason, including where the application does not meet these required minimums. As small holdings of units can be uneconomic to administer, if your investment in any Fund is below the current minimum balance level of $1,000 per Fund, the Manager may purchase your remaining units in that Fund in accordance with the relevant Trust Deed. This will not apply while you are contributing regularly to the Funds or if your regular contributions are temporarily suspended (for up to six months). When investing into the Funds you pay the unit price for each unit you purchase: The unit price is calculated on each business day by totalling the market value of each Fund s assets and deducting liabilities (including incurred or accrued fees, expenses and tax). The resulting value is divided by the number of units on issue in the particular Fund to give that day s unit price. Regular contributions can be made by direct debit to Assure Funds Management Limited as Manager of the Funds. Lump sum contributions can be made by cheque made payable to Assure Funds Management Limited and marked not transferable with reference to or bearer crossed out, and sent to the Manager at the address listed in the directory of this Investment Statement. 6

9 4. What are the charges? The charges vary between Funds. At the date of this Investment Statement the fees payable in respect of each Fund are detailed below. Any fees paid to investment managers for any of the Funds are paid by the Manager out of its management fee for the relevant Fund. Fees payable to any custodian of a Fund will be payable out of the assets of that Fund. Fees payable to any custodian, or trustee of a collective investment vehicle in which the assets of a Fund are invested will be payable out of those assets. In the event that a Fund is terminated, the Trustee is entitled to be paid a fee of 0.5% (or another agreed amount) of the gross asset value of the Fund at the date of termination. The Trust Deeds governing the Funds allow the Manager and/or Trustee to vary the current fees or impose fees from time to time in accordance with the Trust Deeds. Fund Name Management Fee 1 Entry Fee Early Withdrawal Fee (deducted from the amount of each contribution made) Balanced Fund 1.75% pa 0% 1% or $200 2 Active Growth Fund 1.75% pa 0% 1% or $200 2 International Bond Trust 1.25% pa 3% 0% International Equity Trust 1.50% pa 5% 0% A switching fee will apply where the switch is into a Fund with a higher entry fee, in which case the fee will be the difference between the entry fees. Out of the assets of each Fund the Trustee is paid a trustee fee of 0.065% pa of the Fund s average daily Gross Asset Value. In addition to the trustee fee, goods and services tax ( GST ) is payable on 75% of the amount of the trustee fee. 1 The management fee is calculated as a percentage of the Fund s average daily Gross Asset Value and is paid out of the assets of each Fund. In addition to the management fee, GST is payable on 10% of the amount of the management fee. 2 If you make a withdrawal from this Fund within two years of commencing your investment in the Fund (including an early withdrawal following a switch into the Fund), an early withdrawal fee of 1% of the amount withdrawn or $200 (whichever is the lower) will be deducted from the proceeds of the withdrawal (unless you became an investor in any of the Funds through a financial intermediary, or before 1 March 2001, and your unitholder account opened at that time remains open (whether or not you have subsequently withdrawn your units), in which case you will not be charged an early withdrawal fee). At the date of this Investment Statement, the early withdrawal fee does not apply to withdrawals from this Fund by way of a switch into another Fund or Funds. 7

10 Investment Statement 5. What returns will I get? Returns will vary between Funds because of the different investment sectors the Funds are exposed to. Negative returns (ie the loss of capital value) may occur during some periods. Factors that may affect the performance of a Fund and that determine returns (if any) include, amongst others, foreign currency exchange rate changes, national or international economic developments, interest rate movements, the performance of the relevant investment sector, the performance of individual investments within a Fund s portfolio and investment management performance. Assure Funds Management Limited, as Manager of the Funds, is the party legally liable to pay returns out of the assets of the Funds. No amount of returns is promised or guaranteed (in full or in part) by Assure Funds Management Limited, AXA New Zealand or any other member of the global AXA Group, or the Trustee or any other parties. Returns, if any, will be the change in the value of your investment. On each business day, the market value of each Fund s assets are totalled. From this, liabilities (including incurred or accrued fees, expenses and tax) are deducted. The resulting value is divided by the number of units on issue in the particular Fund to give a unit price. This value includes any returns earned by each Fund and is the price at which you cash in your investment. As you can withdraw from any of the Funds whenever you choose to, the dates or frequency with which returns will be due and paid is unknown. The Funds may also recognise the value of future benefits (deferred tax assets) on the basis that the Funds will, in the future, generate investment gains to offset the losses. The Manager makes decisions from time to time as to what proportion of tax assets should be included in unit prices, having regard to industry guidelines. What income distributions are made? No Fund currently makes income distributions. The Manager is entitled to change the policy and frequency of distributions at any time. How is my investment taxed? The following description is based on the law as it is enacted and interpreted as at the date of this Investment Statement. Tax legislation may change, and the impact of taxation will vary depending upon each person s individual circumstances. Investors are encouraged to seek professional tax advice. The Manager and the Trustee do not take any responsibility for the taxation liabilities of investors. International equities (excluding Australian resident listed equities and certain Australian unit trusts) held by the Funds are currently taxed on a deemed Fair Dividend Rate ( FDR ) of 5% of their market value. Dividends are not taxed separately. Currently all those Funds that are unit trusts are taxed at the company rate of 30 cents on the dollar on taxable income. FDR as described above applies to the international equity portion of the following Funds in this Investment Statement; the Active Growth Fund, the Balanced Fund, and the International Equity Trust. The international portion of the International Bond Trust is hedged to New Zealand dollars and is therefore taxed under the comparative value method. The comparative value method taxes the annual change in market value plus distributions. For non-international equities the Manager will make full provision for tax on unrealised and realised capital gains. When withdrawing or switching from a Fund you will be asked which method of withdrawal (Manager Repurchase or Direct Redemption) you wish to have applied to the transaction. The method you select may affect the taxation treatment of any gains or losses you have made on your investment. How do I decide between the two switching and withdrawal options? The two options determine the tax treatment of gains on your investment the option you select will depend upon your own individual circumstances. While the summary which follows is intended as a guide, it is important to seek professional tax advice on what is most appropriate for your individual circumstances before deciding between the two options namely Manager Repurchase and Direct Redemption. Where you request the Manager Repurchase option, the Manager has the right to refuse to purchase your units and instead process your withdrawal using the Direct Redemption option. i Manager Repurchase Option Under this option the Manager will buy your units when you withdraw from a Fund. Provided you are not treated as a share trader (either as an individual or as a business depending on how you are investing), and did not buy the units as part of a business and did not acquire the units for the dominant purpose of resale, you should not be liable for tax on any capital gains on your units being withdrawn. In normal circumstances any capital gains on your units being withdrawn will not be treated as income with this option and will not be declarable on your tax return. You will not receive a Dividend Statement under this option. 8

11 ii Direct Redemption Option Under this option your units are redeemed or sold direct to the relevant Fund. Increases in the value of the units redeemed are generally treated as a taxable dividend and, where available, imputation credits for the tax paid on the dividend may be attached. Any excess imputation credits attached to the income portion of the redemption can be used to offset any tax payable on other income. If you select this option you are required to disclose the dividend on your investment in your tax return. If you are on a personal tax rate of 39% you may have additional tax to pay as a result of using this option. If the dividend cannot be fully imputed you may have further tax to pay or withholding tax may be deducted from part of the dividend. For either option mentioned above, you can specify the method of your choice at the time of switching or withdrawal, either verbally using the Telephone Transaction Service, or by specifying the appropriate option on the Change Request Form or Withdrawal Form (please refer to Can the investment be altered? ). Where no selection is made, the default option will be Manager Repurchase. Suspension of Repurchase or Redemption of Units The Manager may suspend the repurchase or redemption of units for a period not exceeding 30 days if it determines that such repurchase or redemption: is not practicable; or would or may be materially prejudicial to the general interests of investors; or is not desirable for the protection of the Fund. The Manager must notify the Trustee of its intention to suspend any repurchase date prior to any such suspension being imposed. If in any three-month period an investor requests the Manager to repurchase or redeem more than 2% of the total units of a Fund, and the Trustee and Manager agree it is in the best interests of all investors to defer the redemption or repurchase of all the units, the Manager may elect to repurchase or redeem the units in instalments over a period approved by the Trustee, or in total at the end of that period. 6. What are my risks? Risk Relative to Return All types of investment involve some degree of risk. Generally, the degree of risk is related to the potential return from the investment. A low risk investment typically provides predictable and stable returns. A high risk investment has the potential to fluctuate significantly in value this includes the possibility of a negative return (ie a loss of capital value). However, over the longer-term, higher risk investments are expected to deliver greater returns than lower risk investments. The Funds are positioned to offer varying levels of risk and potential return, from the medium risk Balanced Fund, through to our higher risk but potentially higher earning international share Fund, the International Equity Trust. Understanding the level of risk that your investment carries (as well as the level of risk that you are willing to accept) is one of the most important steps to successful investing. In choosing an appropriate investment it is important to align your own risk profile with that of the investment or mix of investments you are choosing. In this regard, you need to consider the following questions: Over short periods of time, what degree of volatility (this is the fluctuation in investment returns that may cause decreases as well as increases in the value of your investment) can you accept? What level of return are you seeking from your investment? How long until you are likely to require your investment? Are you likely to want to cash in your investment before then? The principal risk of you receiving less than you invested and not receiving the returns referred to in What returns will I get? is adverse market performance. In no circumstance will you be required to pay more money for each unit you purchase than that disclosed under How much do I pay? If over the period you are invested in a Fund there is adverse market performance, it is reasonably foreseeable that you may receive less than you invested when you withdraw your investment. The risk of this is increased if you invest for a short period of time and/or have paid an entry fee. Market Risk Market risk is the risk associated with investment markets/returns. Each Fund invests predominantly in either a single investment sector or, in the case of the Balanced Fund and Active Growth Fund, a number of different investment sectors. The type of investment sector, or mix of investment sectors in the case of multi-sector funds, determines the risk profile of each Fund. 9

12 Investment Statement Those investment sectors that have the potential for higher returns, and therefore carry a higher risk, are domestic and international shares. Investment sectors that carry a medium degree of risk are domestic and international bonds. The lowest risk investment sectors are typically cash and mortgages. The performance and fluctuation (volatility) in returns of each Fund are linked to the investment sectors in which it invests and the performance of the investment manager. As with any investment which is linked to market performance, the value of each Fund can fluctuate according to movements in the underlying investments. This means that over some periods the value of a Fund could actually go down resulting in a negative return (ie loss of capital value). Volatility in investment markets is affected by many factors including, amongst other factors, currency fluctuations, economic events and changes in government policy, both here and overseas. It is possible that investment markets may experience negative returns that continue over an extended period that may impact the performance of the Funds. There could also be a technological or other failure impacting on the Funds or the financial markets in which they invest. Currency Risk Movements in currency exchange rates may affect those Funds with an exposure to international investment sectors. The currency exposure policies for each of these Funds at the date of this Investment Statement are detailed below: The International Equity Trust is normally unhedged against currency movements. The majority of the International Bond Trust s underlying currency exposure is hedged. However, underlying fund managers are able to take limited active positions where they perceive an opportunity to add value. The Active Growth Fund and Balanced Fund international bond investments currency exposures are usually fully hedged. However, underlying fund managers are able to take limited active currency positions where they perceive an opportunity to add value. Currency exposures for growth assets are actively managed. Please note these currency policies may change from time to time. Details of the current currency policies can be obtained by contacting the Manager. Liquidity risk Liquidity risk is the risk that a Fund will encounter difficulty raising liquid funds at short notice to meet withdrawal requests. This can arise where investments cannot be converted into cash because of reduced access to or demand from the market, which either precludes the sale of such investments, or would require their sale at a loss. The Manager manages this risk by maintaining a minimum percentage of liquid assets which can generally be realised very quickly. Insufficient imputation credits If a Fund does not have sufficient imputation credits to fully impute any dividend arising at the time you make a withdrawal by the Direct Redemption method, or if the Fund is wound up, you may have withholding tax deducted from the proceeds of your withdrawal or distribution entitlement upon winding up to the extent that there are not sufficient imputation credits available. Borrowing, insolvency and winding up of the Funds Although the Trustee has the power under the Trust Deeds to borrow, it is not the current intention to do so. In the unlikely event that a Fund becomes insolvent you will not be required to pay money to any person or the Fund as a result of the insolvency. If a Fund is put into liquidation or the Manager or the Trustee resolves to wind up a Fund, the costs and expenses of liquidating or winding up will be paid from the relevant Fund before any money is distributed to investors. These costs and expenses and other Fund liabilities, including any remuneration payable to the Trustee or Manager, rank ahead of claims of investors if a Fund is put into liquidation or wound up. After the costs and expenses and other Fund liabilities have been paid, any money remaining in the relevant Fund will be distributed to investors in proportion to their respective holdings in the Fund. All investors claims on the assets of a Fund in which they hold units rank equally with each other. Regulatory Risk There could be future changes to legislation or applicable regulations (including taxation) which could affect the operation of the Funds or the levels or nature of returns from the Funds. 7. Can the investment be altered? a By You? You may do the following (subject to minimum contribution, withdrawal and balance requirements please refer to How do I cash in my investment? ): alter the amount of regular contributions; change the frequency of your regular contributions; make one-off lump sum contributions; stop and start regular contributions at any time; switch your investment between Funds; and 10 withdraw all or part of your investment.

13 For details on entry fees for each contribution made and any early withdrawal fees or switching fees which may apply please refer to What are the charges? Please note that a switch is processed as a withdrawal of units from one Fund and a new application for units in another. Our Telephone Transaction Service (see below) allows you to alter your investment as described above (apart from making lump sum contributions) simply by calling toll free on It is important to note that where any additional lump sum, withdrawal or switch request is accepted before 5.00pm on any business day (being a business day in Wellington, New Zealand), it is the valuation which takes effect after 5.00pm that day that is used to determine the price at which requests will be actioned. Any request received after 5.00pm on any business day will be valued at the valuation determined on the next business day. b By the Manager? The Manager may also alter the terms of the investment by altering minimum investment, balance and withdrawal amounts and increasing or imposing fees in accordance with the Trust Deeds. In certain circumstances the Manager and the Trustee may alter the Trust Deeds. The circumstances are explained more fully in the current registered Prospectuses for the Funds, and include if the Trustee is of the opinion the amendment is formal or technical or if the amendment is approved at a meeting of the investors. The Manager may vary the definition of authorised investments in the Trust Deeds for the Funds by giving investors 30 days notice (unless investors holding not less than 10% of units in the relevant Fund give notice stating their intention to call a meeting of investors). The Manager will give you, and all other investors in the Fund, a summary of any amendments made to the Trust Deeds governing the Funds when the Fund s financial statements are sent to investors (please refer to What other information can I obtain about this investment? ). If you invest through a custodian, nominee or trustee (for example, through an administration systems provider), then that custodian, nominee or trustee may agree with the Manager amendments to the terms and conditions of your investment. You will be bound by those amendments. The investment objectives and policies of the Funds may be change by agreement between the Manager and the Trustee. You will receive notice of any such change to the investment objectives and policies of a Fund or the Funds in which you invest within 21 days of the change occurring. What is the Telephone Transaction Service? All investors, including those that hold their units in joint names, have the option to access the Telephone Transaction Service and will be issued with a Personal Identification Number ( PIN ). Your PIN will be issued within seven business days of your application being processed. Joint investors will only be issued with one PIN. Any one of the joint investors will be able to use that PIN to give instructions using the Telephone Transaction Service. You can choose whether or not to access the Telephone Transaction Service on the Application Form. If you do not show your preference the Manager will assume you wish to use the Telephone Transaction Service. When you wish to switch between Funds, change the amount of your regular contributions or withdraw some or all of your investment, you simply contact a Customer Relationship Representative toll free on , and quote your PIN. This service is designed to make altering your investment quick and easy. For joint investors who elect to access the Telephone Transaction Service, any owner can use any part of this service without reference to the other. Any withdrawal made through the Telephone Transaction Service will only be paid to the bank account nominated by all joint investors. The nominated bank account cannot be changed using the Telephone Transaction Service. Written instructions of all joint investors are required to change the nominated bank account. Should you lose your PIN another can be gained by calling toll free on Please note that it may take up to seven business days until you receive a replacement PIN. In the meantime you can alter your investment using the Change Request Form or Withdrawal Form (available from your Adviser) and returning it to the Manager. 8. How do I cash in my investment? You may cash in your investment or switch between Funds, provided you meet the minimum investment, withdrawal and balance levels set by the Manager from time to time and, in the case of a switch, the Fund into which you wish to switch is open for subscription. Before a unitholder can switch into another Trust they may need to sign a new Investment Statement application form, if they have not already signed one, for the Trust they are switching into. At the date of this Investment Statement, the minimum amount that may be withdrawn (or switched) at any one time is $500, the minimum remaining investment level (also known as the minimum balance level) in any one Fund as a result of a withdrawal or switch is $1,000 and the minimum investment amounts are as stated under How much do I pay? 11

14 Investment Statement If you make a full or partial withdrawal from the Balanced Fund or Active Growth Fund within two years of commencing your investment in that Fund, you may be charged an early withdrawal fee of 1% of the amount withdrawn or $200 (whichever is the lower). See What are the charges? for further details. As small holdings of units can be uneconomic to administer, if an investor s unit holding in a Fund is below $1,000 the Manager has the right to purchase their units in that Fund in accordance with the relevant Trust Deed. This will not apply while you are contributing regularly to the Fund, or if your contributions are temporarily suspended (for up to six months). You can perform a withdrawal or switch by using the Telephone Transaction Service or by completing a Change Request Form or Withdrawal Form (available from your Adviser) and returning it to the Manager. For details on any early withdrawal fees or switching fees that may apply please refer to What are the charges? In normal circumstances the Manager will make payment of the proceeds to you within seven days and no later than 15 days upon receipt of your request. In special circumstances the Manager may (subject to prior notice and/or approval of the Trustee) suspend or delay the withdrawal or switch obligation for up to 30 days (please refer to What returns will I get? ). For tax purposes the Trust Deeds provide a choice of two methods when withdrawing or switching units, Manager Repurchase and Direct Redemption (please refer to What returns will I get? ). You are able to sell your holdings in a Fund to another person. To do so you will need to complete a Transfer Form which is available from the Manager on request. In the Manager s opinion, there is no established market for selling your investment in a Fund to any person other than the Manager. Regular Withdrawal Option For the International Bond Trust you can elect to use the Regular Withdrawal option to have some of your investment in the Fund cashed in and paid to you on a regular basis. You can select between monthly, quarterly or six-monthly withdrawals. The minimum amount per regular withdrawal is $250 and the minimum remaining investment level in any one Fund after a withdrawal is $1,000. These will be processed on, or as close as possible to, the 15th of the month. 9. Who do I contact with enquiries about my investment? You can talk with your Adviser. Alternatively you may write to the Manager, Assure Funds Management Limited at AXA Centre, 80 The Terrace, PO Box 603, Wellington, 6140 or contact a Customer Relationship Representative between 8.00 am and 5.00 pm on any business day by calling toll free on Is there anyone to whom I can complain if I have problems with the investment? Should a problem arise you should contact a Customer Relationship Representative by calling toll free on between 8.00 am and 5.00 pm on any business day. We operate a comprehensive complaint tracking system into which all complaints are entered and given high priority. Alternatively, you can refer your complaint to: Head of Customer Services Assure Funds Management Limited AXA Centre 80 The Terrace PO Box 603 Wellington 6140 Freephone: Facsimile: Any complaint reaching this level will receive the personal attention of the Head of Customer Services. Complaints can also be made to the independent Trustee, Public Trust, whose address is 141 Willis Street, Wellington or telephone If, having exhausted these alternatives, you wish to pursue your complaint further, you may contact the Insurance and Savings Ombudsman at: Insurance and Savings Ombudsman BDO House Customhouse Quay PO Box Wellington 6143 Telephone: Facsimile:

15 11. What other information can I obtain about this investment? If you require more information before you decide to invest, speak with your Adviser. Alternatively, other information about each Fund is contained in the current registered Prospectus for the Funds and in the most recent financial statements for the Funds. Available information relating to the Funds includes: the individual Funds Trust Deeds which can be inspected at the office of the Trustee or supplied to you by the Manager on request; and the current registered Prospectus and most recent financial statements for the Funds complying with the Financial Reporting Act 1993, which may be obtained free of charge from the Manager on request. The current registered Prospectus, Trust Deeds, financial statements, and material contracts (if any) relating to the Funds are available for public inspection at the office of the Manager at AXA Centre, 80 The Terrace, Wellington between the hours of 9.00 am and 5.00 pm on any business day. Copies are also filed on a public register and are available for public inspection at the Companies Office of the Ministry of Economic Development and the documents can also be obtained (on payment of any relevant fee) by telephoning the Companies Office Contact Centre on You can request copies of the Trust Deeds, most recent Investment Statement, and other documents as stated above by contacting a Customer Relationship Representative between 8.00 am and 5.00 pm on any business day by calling toll free on (a fee of $0.20 per page may apply to requests for copies of the Trust Deeds and other material contracts). As an investor you will also receive (without any additional charge): six monthly transaction statements detailing your transactions and the balance of your investment. A transaction statement and balance of your investment is also available at any time upon request to the Manager; six monthly Investor Reports updating the performance of the Funds; and on an annual basis the audited financial statements for the Funds (together with a summary of any amendments to the Trust Deeds during that year). Personal Information Rights Statement 1. This statement relates to information about you which you are now providing to your Adviser, Bank of New Zealand, the Manager, and AXA New Zealand or which your Adviser, Bank of New Zealand, the Manager, AXA New Zealand or any other member of the global AXA Group (each being a recipient ) may hold now or in the future ( personal information ). 2. Each recipient will ensure that the personal information it receives is held securely and will not disclose it to any person not referred to in this statement, except for the purpose of providing services in connection with your investment and any other purpose referred to in this statement or which has been authorised by you or when required or authorised by law. 3. The Privacy Act 1993 gives you the right to access and request correction of the personal information. 4. The personal information will be used primarily to provide you products and services and to further the relationship between you and any recipient. This includes the provision of any products or services of a recipient which it is considered may be of interest to you. In the case of your Adviser, personal information may be released in respect of your investment in any Fund. If you do not wish to be sent marketing material you may elect not to receive it by contacting your Adviser, Bank of New Zealand or the Manager. 5. In order that a recipient may seek your views on its existing and proposed products and services, relevant information may be provided to reputable market research organisations subject to a strict confidentiality agreement. What are the next steps? If after having read this Investment Statement you are interested in investing, it is recommended you take the following steps: 1 Determine which Fund suits you. You should talk to your Adviser for assistance. 2 Complete the Application Form. Work through the Personal Managed Funds Application Form to be found later in this Investment Statement with your Adviser. 13

16 Investment Statement 3 Sign your Application Form. Sign your application and take into account the following instructions: a The Financial Transactions Reporting Act 1996 requires the Manager to verify the identity of all new investors. As a minimum, the Manager requires either the adviser or the Manager sight and retain copies of the originals of two forms of documentary identification ( ID ) (at least one must contain a photo) from each applicant. For new applicants who are not individuals, such as companies or trusts, all directors/trustees/authorised signatories must meet the same identification requirements as outlined above. b Joint applications must be signed in full by all parties in the spaces provided. Joint investors are jointly and severally liable and the Manager is only entitled to act on instructions from all of the joint investors together, except where instructions are given via the Telephone Transaction Service. c Applications lodged by companies must be executed on behalf of the company by two directors or authorised signatories of the company. d Applications from trustees of superannuation, provident or other funds must be signed by the trustees or an authorised agent of the trustees. e f If the applicant(s) is/are under 18 years of age, the Application Form must also be signed by the parent or guardian of the applicant(s). Power of Attorney: For applicants applying for units for another person pursuant to a Power of Attorney, a certified copy of the Power of Attorney and a Certificate of Non-Revocation are required. A Certificate of Non-Revocation form is available on request from the Manager. Note: These Funds are only available for subscription from within New Zealand. Requests to switch, commence regular contributions or make lump sum investments will not be accepted from outside of New Zealand. Directory Manager Assure Funds Management Limited AXA Centre 80 The Terrace Wellington 6011 New Zealand Directors of Assure Funds Management Limited Ralph Earle Stewart, of Wellington Christopher William Day, of Wellington The contact address of all Directors is C/- Assure Funds Management Limited AXA Centre 80 The Terrace Wellington 6011 New Zealand Trustee Public Trust 141 Willis Street Wellington 6011 New Zealand Promoter National Mutual Assets Management (New Zealand) Limited ( AXA New Zealand ) AXA Centre 80 The Terrace Wellington 6011 New Zealand Telephone: Send it in. The completed Application Form; and where appropriate your cheque and/or the completed Direct Debit Authority, should be sent to Assure Funds Management Limited, PO Box 603, Wellington We ll acknowledge your investment. Within seven business days of receiving your application the Manager will send to you by mail a confirmation of your investment. 14 DS2561/1009

17 APPLICATION FORM Details of Investor One Title: Mr Mrs Miss Ms Other Last Name/Company Name/Trust Name First Name (s) Details of Investor Two (if applicable) Title: Mr Mrs Miss Ms Other Last Name First Name (s) Date of Birth / / / / Date of Birth Occupation IRD Number Primary IRD Yes No Occupation IRD Number Primary IRD Yes No Street Address Postal Address (if different from above) Investment Details (Lump Sum and Regular Savings Plan) Personal Managed Funds Lump Sum Regular Savings Plan Minimum $1,000 per Fund Balanced Fund $ $ Active Growth Fund $ $ Amount per frequency Regular Savings Plan Investors To Complete Please start my regular contributions on / / At the following frequency (please tick one): Weekly Fortnightly Monthly International Bond Trust $ $ Quarterly Annually International Equity Trust $ $ TOTAL $ $ NB: The minimum regular contribution per unitholder is $50 weekly, $100 fortnightly, $200 monthly, $600 quarterly or $2,400 annually. Regular Savings Plan investors must also complete the attached Direct Debit Authority. Regular Withdrawal Options Available only for the Funds below: Amount (Minimum $250) Frequency monthly, quarterly or six monthly Your cheque should be attached to the Application Form. Cheques should be made payable to Assure Funds Management Limited and marked not transferable with reference to or bearer crossed out. Method of Withdrawal refer to question 5 on page 8 of the Investment Statement for an explanation of these methods (tick one): International Bond Trust $ Manager Repurchase Direct Redemption Month to Commence Home Telephone Work Telephone REGULAR WITHDRAWALS ARE PROCESSED ON, OR AS CLOSE AS POSSIBLE TO THE 15TH OF THE MONTH. Nominated Bank Account Details Please give details of the bank account you would like any withdrawals or distributions direct credited into. Bank Branch Account Name Bank Branch Number Account Number Suffix DS2561/1009 Assure Funds Management Limited. PO Box 603, 80 The Terrace, Wellington Member of the Global AXA Group.

18 Telephone Transaction Service (please tick preference) I/We wish to have access to the Telephone Transaction Service. If investments are jointly held, one owner can authorise any part of that service without reference to the other. I/We do not wish to have access to the Telephone Transaction Service. I/We agree that all requests to transact or to change personal details must be made in writing. If you do not show your preference the Manager will assume you wish to use the Telephone Transaction Service. Application/Declaration The purpose of this section is to ensure that you are aware of and have understood certain important information contained in the Investment Statement before applying for your investment. If you are not able to initial your acknowledgement to all of the statements below, please delay your application until you have all the outstanding information required to make an informed decision. INITIAL ACKNOWLEDGEMENT 1. I/We have received a copy of the latest Personal Managed Funds Investment Statement dated 19 October I/We have had an opportunity to read and understand the information contained in the Investment Statement to my/our satisfaction. 2. I/We understand the manner in which the fees will be applied to my/our investment in a Fund, and that if I/we choose to withdraw part or all of my/ our investment in the Balanced Fund or Active Growth Fund before I/we have been invested in that Fund for two years since commencing my/our investment in that Fund I/we may incur an early withdrawal fee of 1% or $200, whichever is lower. 3. I/We understand that the value of my/our investment is subject to investment risk including loss of income and principal and is liable to fluctuations and may rise or fall from time to time. 4. l/we have read the Personal Information Rights outlined on page 13 of the Investment Statement and agree to the terms outlined in that section. Signature(s) of lnvestor(s) 1. Joint applications must be signed in full by all parties in the spaces provided. Joint investors shall be jointly and severally liable and the Manager shall only be entitled to act on instructions from both of the joint investors together, except where instructions are given via the Telephone Transaction Service. 2. Applications lodged by companies must be executed on behalf of the company by a director or authorised signatory of the company. 3. Applications from trustees of superannuation, provident or other funds must be signed by all trustees or an authorised agent of the trustees. Signature of Investor One or Director/Authorised Signatory Signature of Investor Two or Director/Authorised Signatory 4. If the applicant(s) is/are under 18 years of age, the Application Form must also be signed by the parent or guardian of the applicant(s). 5. Power of Attorney: For applicants applying for units for another person pursuant to a Power of Attorney a certified copy of the Power of Attorney and a Certificate of Non-Revocation are required. A Certificate of Non-Revocation form is available on request from the Manager. 6. The completed Application Form and, where appropriate, your cheque and/or the completed Direct Debit Authority should be sent to Assure Funds Management Limited, PO Box 603, Wellington / / / / Date (DD/MM/YY) Date (DD/MM/YY) The Personal Managed Funds Investment Statement is dated 19 October The Investment Statement provides information as required by the Securities Act It is important that you read the Investment Statement in full before committing yourself to an investment. Personal Managed Funds are managed by Assure Funds Management Limited. For further information please contact: Assure Funds Management Limited, AXA Centre, PO Box 603, 80 The Terrace, Wellington. Freephone Facsimile ADVISER DETAILS Adviser Name Adviser Code Advisers may allocate part or all of their brokerage to the applicant but there is no obligation to do so. % Lump sums PERCENTAGE REBATE TO INVESTORS Evidence of Investor Identification ADVISER/BRANCH STAMP Regulars % PERCENTAGE REBATE TO INVESTORS Branch Use Only BIS Number Telephone Number: Branch/Cost Centre Number Staff Number Staff Name DS2561/1009 Assure Funds Management Limited. PO Box 603, 80 The Terrace, Wellington Member of the Global AXA Group.

19 DIRECT DEBIT AUTHORITY Name of Investor Personal Managed Funds Number BIS Number AUTHORITY TO ACCEPT DIRECT DEBITS (NOT TO OPERATE AS AN ASSIGNMENT OR AGREEMENT) Authorisation Code Payment Frequency (TICK ONE BOX) Weekly Fortnightly Monthly Quarterly Annually Name of bank account Bank account from which payments are to be made (PLEASE ATTACH AN ENCODED DEPOSIT SLIP TO ENSURE YOUR NUMBER IS LOADED CORRECTLY) Bank Branch Number Account Number Suffix To the Manager (PLEASE PRINT FULL POSTAL ADDRESS CLEARLY) Bank Branch Town/City I/We authorise you until further notice, to debit my/our account with all amounts which Assure Funds Management Limited as Manager of Personal Managed Funds the registered Initiator of the above Authorisation Code, may initiate by Direct Debit. I/We acknowledge and accept that the Bank accepts this authority only upon the conditions listed overleaf. Information to appear on my/our Bank Statement Payer Particulars Payer Code Number Your Signature(s) / / For Bank Use Only Approved Original - Retained at Branch Date Received: Recorded by: Checked by: BANK STAMP DS2561/1009 Assure Funds Management Limited. PO Box 603, 80 The Terrace, Wellington Member of the Global AXA Group.

20 Conditions of this Authority to Accept Direct Debits 1. The Initiator (Assure Funds Management Limited): (a) Undertakes to give written notice to the Investor of the commencement date, frequency and amount at least ten calendar days before the first Direct Debit is drawn (but not more than two calendar months). Where the direct debit system is used for the collection of payments which are regular as to frequency but variable as to amounts, the Initiator undertakes to provide the Investor with a schedule detailing each payment amount and each payment date. In the event of any subsequent change to the frequency or amount of the Direct Debits, the Initiator has agreed to give written advance 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 the Investor. 2. The Investor 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 effected by the Bank. (c) Where a variation to the amount agreed between the Initiator and the Investor from time to time to be direct debited has been made without notice being given in terms of clause l(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 the Investor s account. 3. The Investor acknowledges that: (a) This authority will remain in full force and effect in respect of all Direct Debits made from the Investor s account in good faith notwithstanding the Investor s 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 the Investor and the Bank in relation to the Investor s account. (c) Any dispute as to the correctness or validity of an amount debited to the Investor s 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 the Investor and the Initiator. (d) Where the Bank has used reasonable care and skill in acting in accordance with this authority, 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 amount of Direct Debits the Initiator s failure to give written advance notice correctly nor for the non-receipt or late receipt of notice by the Investor for any reason whatsoever. In any such situation the dispute lies between the Investor and the Initiator. (f) Notice given by the Initiator in terms of clause l(a) to the debtor responsible for the payment shall be effective. Any communication necessary because the debtor responsible for payment is a person other than the Investor is a matter between the Investor 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 the Investor and given to or drawn on the Bank. (b) At any time terminate this authority as to future payments by notice in writing to the Investor. (c) Charge its current fees for this service in force from time to time. DS2561/1009 Assure Funds Management Limited. PO Box 603, 80 The Terrace, Wellington Member of the Global AXA Group.