Helping you own your retirement. North Super and Pension. Product Disclosure Statement Part A

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1 North Super and Pension Product Disclosure Statement Part A Helping you own your retirement North Personal Superannuation and Personal Pension Issue Number 7, 1 July 2014 To be read in conjunction with North Super and Pension Guarantee Registered trademark of The National Mutual Life Association of Australasia ABN AFS Licence No

2 North Super and Pension Supplementary product disclosure statement This is a supplementary product disclosure statement (SPDS) to the North Personal Superannuation and Personal Pension product disclosure statement (PDS) Part A dated 1 July This SPDS replaces the SPDS dated 1 August 2015 and must be read in conjunction with the PDS dated 1 July The following text replaces the section Removing investment options on page 10 of the PDS. Removing or closing investment options We may from time to time, remove or close certain investment options (for example, where the underlying investment is either terminating or being closed by the fund manager). Where this occurs, we will provide you with 30 days' prior notice. If the option is terminating, you will need to select an alternative investment option. Where we cannot provide you with 30 days prior notice (due to circumstances outside of our control), we will provide you with notice as soon as practicable. Where we cannot provide you with adequate notice or where we have not received alternative investment instructions from you, we will take the below actions: 1. If the investment option is terminated or closed to additional investments and it forms part of your investment instructions: your buy profile will be replaced with the AMP Wholesale Cash Management Trust (NML0018AU) your dollar cost averaging purchase instruction will be cancelled your rebalance profile will be deleted your existing sell profile will remain unchanged if the investment option is closed. 2. If the investment option is closed to new investments you can continue to invest in the closed investment option provided you currently have a holding in the investment option. If it forms part of your investment instructions: where you do not currently have a holding in the investment option, it will be replaced with the AMP Wholesale Cash Management Trust (NML0018AU) in your buy profile. 3. If the investment option forms part of your investment instructions and is replaced with the AMP Wholesale Cash Management Trust (NML0018AU): your dollar cost averaging purchase instruction will be cancelled your rebalance profile will be deleted your existing sell profile will remain unchanged. 4. If the investment option is suspended (frozen) and forms part of your investment instructions: your buy profile will be replaced with the AMP Wholesale Cash Management Trust your dollar cost averaging purchase instruction will be cancelled your rebalance profile will be deleted. 5. If it forms part of your sell profile and you have instructed us to: divest as per the sell down profile the entire sell profile will be deleted and instructions changed to sell down pro rata across all managed funds only divest as per the sell down order we will delete the terminated fund from the sell down order pro rata across managed funds only we will continue to sell pro rata across your remaining managed funds. Where you are invested in an investment option that is terminating, your holdings in the option will be sold subject to any suspension/withdrawal restrictions. Proceeds from the sale will be allocated to your cash account. For further information on the withdrawal restrictions that may apply, refer to the Liquidity risk section of the PDS. The PDS for the AMP Capital Wholesale Cash Management Trust is available from North Online. You can make a switch out of this investment option at any time. Issued 1 October 2015 Registered trademark of The National Mutual Life Association of Australasia Limited ABN AFS Licence No Summit and Generations are registered trademarks of NMMT Limited ABN AFS Licence No ipac iaccess is a registered trademark of ipac asset management limited ABN AFS Licence No The issuer of this SPDS and the Trustee of the Wealth Personal Superannuation and Pension Fund ABN is N.M. Superannuation Proprietary Limited ABN , AFS Licence No

3 The following replaces the section titled In specie out on page 11 of the PDS. In specie In specie out The assets you hold in your account may be transferred in specie to another provider, in place of a rollover or cash withdrawal, so long as certain conditions are met and the other provider is willing to accept the particular assets being transferred. An in specie transfer fee will apply to each managed fund or listed security you request to transfer out. For more information on the in specie transfer fee, please refer to page 3 of this SPDS. The other provider may also charge a fee for accepting in specie transfers in. Partial in specie transfers out You can request a partial transfer of your account balance by transferring all or part of any managed fund or listed security. If you elect a partial transfer, your account will remain open and you can continue to transact on your account. However, you will not be able to transact on the remaining holdings in the investment options you have elected to partially transfer until all completed forms have been received and the request has been authorised by us. If you receive dividends paid as part of your Dividend Re-investment Plan (DRP) after you submit your transfer, these will appear as additional units in your existing listed security holdings. Full in specie transfers out Where the transfer request results in a full withdrawal you will need to ensure you have sufficient cash available in your cash account to pay for the provisions detailed below, including the in specie fees. If you do not have sufficient funds in your cash account, you will need to sell part or all of your holdings in an investment option. If this occurs, you will need to provide instructions on which investment option you wish to sell down. If listed securities are sold, brokerage fees will apply. Once the asset transfer request has been submitted you will not be able to transact on your account and your account will be closed when the asset transfer has been completed. The maximum amount you can transfer in specie will be calculated based on your total portfolio value less outstanding fees and provisions. The maximum transfer value will be calculated at the time the request is submitted. If you receive dividends paid as part of your DRP after you submit your transfer, these units will be sold to cash as part of the cash withdrawal and account closure. Some asset transfers may take up to three months to complete, consequently we will provision for the following: three months of scheduled pension payment (pension only) three months of administration fees three months of insurance premiums (where applicable), and three months of adviser fees. The following text replaces the section 'Fees and other costs' between the pages 15 and 21 of the PDS and supplements the existing information provided in the PDS in relation to the administration fees as described on page 5. Fees and other costs Like other financial products, North Super and Pension has fees and other charges that you need to be aware of. Here s a detailed explanation of the fees and costs you may pay as part of your investment. To understand all of the fees and costs that might be payable for an investment option, you should read both this PDS and the underlying investment option's PDS. Did you know? Small differences in both investment performance and fees and costs can have a substantial impact on your long-term returns. For example, total annual fees and costs of 2% of your account balance rather than 1% could reduce your final return by up to 20% over a 30-year period (for example, reduce it from $100,000 to $80,000). You should consider whether features such as superior investment performance or the provision of better member services justify higher fees and costs. Your employer may be able to negotiate to pay lower administration fees. Ask the fund or your financial adviser. 1 To find out more If you would like to find out more, or see the impact of the fees based on your own circumstances, the Australian Securities and Investments Commission (ASIC) website (moneysmart.gov.au) has a superannuation fee calculator to help you check out different fee options. This document shows fees and other costs that you may be charged. These fees and other costs may be deducted from your money, from the returns on your investment or from the assets of the superannuation entity as a whole. Other fees, such as activity fees, advice fees for personal advice and insurance fees, may also be charged, but these will depend on the nature of the activity, advice or insurance chosen by you. Taxes, insurance fees and other costs relating to insurance are set out in another part of this document. You should read all of the information about fees and other costs because it is important to understand their impact on your investment. The fees and other costs for each investment option offered by the entity are set out in each relevant underlying investment option's PDS. 1 The Consumer Advisory Warning above is prescribed by law. The statement that your employer may be able to negotiate administration fees is not applicable in this product. 2

4 North Personal Super and Personal Pension Type of fee Investment fee Cash account investment cost Administration fees (i) Amount 0.58% pa of the balance of your cash account How and when paid Cash account investment costs are deducted from interest paid on a monthly basis prior to the declaration of the crediting rate for the cash account. Account fee Administration fee Stronger Super fee $0 (for an NCAP account or an account with a guarantee) or $91 pa % pa of your account balance, depending on your total account value. You may be eligible for a discount or rebate on the Administration fee - see the 'Additional explanation of fees and costs' section for further information. 0.03% pa of your account balance. Deducted from your cash account monthly from the date that your account commenced. Calculated on your portfolio balance and deducted from your cash account on your monthly account anniversary. Calculated on your account balance and deducted from your cash account on your monthly account anniversary. Buy-sell spread Switching fee (ii) Exit fee Nil. However, an underlying buy/sell cost may apply. See 'Indirect cost ratio' below Nil Nil Not applicable Not applicable Not applicable Advice fees relating to all members investing in a particular investment option Other fees and costs (iii) Nil You may, however, agree adviser fees with your financial adviser. See 'Other fees and costs' below. Not applicable Insurance fees Brokerage Brokerage - panel broker In specie transfer fee Adviser fees (iv) Member advice fee (initial, additional advice, ongoing and listed securities) If you have insurance cover, refer to the current AMP Elevate insurance PDS for further information on insurance fees (premiums) and charges. 0.11% of the total of each listed security purchase or sale subject to a minimum fee of $34. If you use a third-party broker, any brokerage fee is negotiated between you and the broker. A settlement fee of $10.25 applies in addition to any brokerage. Deducted from your cash account. Refer to the AMP Elevate insurance PDS on how this amount is calculated and when it is paid (if applicable). Deducted from your cash account at the time the trade is settled. Deducted from your cash account on the day your broker sends us your trade information. Transfers in: $25.63 per listed security, ETF, ETC or AREIT. Stamp duty may apply. Transfers in: Deducted from your cash account upon confirmation of the asset transfer. Transfers out : $100 for each asset transferred Transfers out: Deducted from your cash account out (applicable to each managed fund or listed at the time the assets being transferred are security you request to transfer out). Stamp duty removed from your account. may apply. Up to $5,125 pa plus 2.51% pa of your total account balance. Depending on the member advice fee nominated, the advice fee can be a percentage of your account value or a dollar amount deducted from your account at a time agreed on with your financial adviser. Member advice fee(contributions) Up to 4.10% of each contribution or rollover. A fee paid from your account to your financial adviser for financial advice on initial and/or future contributions. 3

5 North Personal Super and Personal Pension Type of fee Amount How and when paid Guarantee fee Additional contribution guarantee fee Indirect cost ratio Investment cost % pa, depending upon guarantee, term and investment strategy selected. Personal Super: Up to 7% per contribution or rollover calculated at the time of the additional investment on accounts with a guarantee. Personal Pension: Not applicable as contributions cannot be accepted once a pension commences. Estimated at % pa depending on the investment option(s) selected. The amount you pay for specific investment options is shown in the underlying investment option s PDS. The ongoing guarantee fee is calculated monthly based on the opening account value on the day the fee is applied and deducted monthly from your cash account. Charged when contributions on accounts with a guarantee exceed the annual contribution threshold. Refer to the PDS Part B for additional information. Paid to the investment managers of the managed investments in your account. Generally reflected in the unit prices or crediting rate of the investment option and deducted by each investment manager. Performance fees Buy/sell cost Refer to the underlying investment option s PDS on how this amount is calculated (if applicable). Estimated at 0 3% of the amount bought or sold, depending on the investment option(s) selected. The amount you pay for specific investment options is shown in the relevant investment option s PDS. Refer to the underlying investment option s PDS on how this amount is calculated and how and when it is paid (if applicable). Paid to the investment managers of the managed investments in your account. Generally reflected in the unit prices of managed investments. The buy/sell cost is deducted at the time of the purchase or sale of units. (i) Refer to 'Administration fees' on Page 4 for further information. (ii) While there are no fees associated with switching, a buy/sell cost may apply. (iii) Refer to 'Other fees and costs' on Page 6 for further information on other fees and costs that may be charged. (iv) You may agree to pay member advice fees to your financial adviser for financial advice. Refer to 'Adviser fees' on Page 7 for further details. Additional explanation of fees and costs This section provides extra information on the fees and costs that apply to North Super and Pension. Investment fee Cash account investment cost The cash account has an investment cost of 0.58% per annum. This amount is comprised of a service fee that is paid to NMMT for the management of the cash account and an investment cost for amounts invested in the AMP Capital Wholesale Cash Fund. The investment cost is deducted monthly from the interest paid from the AMP Capital Wholesale Cash Fund and from the trading accounts prior to the declaration of the crediting rate. Administration fees expenses paid to related parties and service providers. From time to time we may rebate part of the administration fee charge by us back to individual members. The account fee will be deducted from your cash account monthly from the date that your account commenced. The account fee is $91 per annum ($7.58 per month). The fee is payable on each individual account that you hold. The account fee is waived on: an NCAP account, or an account with a Guarantee. The administration fee: will be calculated on the opening account value on the day of the fee deduction, and is deducted from your cash account monthly from the date that your account commenced. Account fee and administration fee The account fee, in conjunction with the administration fee, covers the costs associated with the establishment and administration of your North account, including any Trustee costs and expenses, distribution costs and other fees or 4

6 The administration fee is calculated according to the following tables: North administration fee Total account value (i) ($) 0 to 149, ,000 to 249, ,000 to 399, ,000 to 749, ,000 plus (iii) (i) (ii) (iii) % pa Rebate % pa (ii) % pa after fee rebate Total account value includes all accounts held by you in North Super, Pension and Investment. Refer to Benefit from multiple accounts section for further detail. Applies to any new eligible application for a North Personal Super or North Personal Pension account, submitted on North Online from 19 January 2015 to 29 February The maximum administration fee (inclusive of account fee if applicable) you can incur per North account is $4,500 per annum. The maximum administration fee is calculated each anniversary year. If the maximum is reached in that anniversary year, deductions will cease and recommence the following anniversary year. The administration fee will also recommence if an account transfer occurs (eg Super to Pension). The following discounted administration fees apply on discounted investment options. Refer to page 2 of the North investment options document for a list of discounted investment options: Discounted North administration fee Total account value (i) ($) 0 to 149, ,000 to 249,999 % pa Rebate % pa (ii) % pa after fee rebate reached in that anniversary year, deductions will cease and recommence the following anniversary year. The administration fee will also recommence if an account transfer occurs (eg Super to Pension). Administration fee rebate (fee rebate) Any new eligible application for a North Personal Super or North Personal Pension account, submitted on North Online from 19 January 2015 to 29 February 2016 may be eligible to receive an ongoing rebate on the administration fee. The applicable fee rebate is set out in the administration fee tables on this page. Who is not eligible for the fee rebate If you are an existing member of the Fund as at 19 January 2015, then you are not eligible for the fee rebate. This applies regardless of whether you hold a North Personal Super account, North Personal Pension account, Summit Personal Super account, Summit Personal Pension account, Generations Personal Super account, Generations Personal Pension account, ipac iaccess Personal Super account or ipac iaccess Allocated Pension account. For example, an existing fund member as at 19 January 2015 transferring from North Personal Super to North Personal Pension is not eligible for the fee rebate. If, as at 19 January 2015, you are an existing account holder of an Investor Directed Portfolio Service issued by NMMT, then you are also not eligible for the fee rebate. This applies regardless of whether you hold a North Investment account, Summit Money Master account, Generations Investment Portfolio account or ipac iaccess Investment account. For example, if you hold a Summit Money Master account as at 19 January 2015 and you apply for a North Personal Super account, then you are not eligible for the fee rebate. If your account has a Guarantee, or had a Guarantee that has since matured or has been removed, then you will not be eligible for the fee rebate on that account. If you are eligible for the rebate on a North Super or Pension account, you will retain the rebate if you transfer your funds into a new North Personal Pension including non-commutable allocated pension (NCAP) or North Super account. The rebate will cease if you transfer from a North Super or Pension account into a North Investment account. 250,000 to 399, ,000 to 749, ,000 plus (iii) (i) (ii) (iii) Total account value includes all accounts held by you in North Super, Pension and Investment. Refer to Benefit from multiple accounts section for further detail. Applies to any new eligible application for a North Personal Super or North Personal Pension account, submitted on North Online from 19 January 2015 to 29 February The maximum administration fee (inclusive of account fee if applicable) you can incur per North account is $4,500 per annum. The maximum administration fee is calculated each anniversary year. If the maximum is 5

7 How the fee rebate works The fee rebate will be calculated based on the account value invested in the applicable investment options and paid directly into your cash account on a monthly basis. The fee rebate will not exceed the actual fees paid. The fee rebate will only be paid on the actual administration fees charged. Accordingly, once administration fees of $4,500 per account per annum (gross of any applicable rebate) are paid, no further fee rebate will be paid. In the month where the administration fee cap is reached the full administration fee for the month may not be charged. In this case, the fee rebate applicable will be calculated based on the same proportion as the administration fee charged to the account. Please note: the $91 account fee is still payable total administration fees will continue to be capped for members who are eligible for the fee rebate. Benefit from multiple accounts The grouping of accounts allows you to reduce the administration fee you pay. When accounts are grouped, their balances are combined to determine the administration fee rate that is applied. Individual fee aggregation As an individual member, you can combine the notional balances of up to six North Super, Pension and Investment accounts to determine the administration fee rate applicable. Family fee aggregation Family fee aggregation allows you and members of your family (family group) to combine the notional balances of your North Super, Pension and Investment accounts. The administration fee rate applied to all accounts within a family group will be calculated based on the combined balance of all accounts. Family groups can be set up by your adviser through North Online by nominating a primary member within the family group. All members of the family group must have one of the following relationships to the primary member to be eligible for family grouping: spouse de facto parent child sibling grandparent grandchild. A maximum of four members are allowed in a family group, with up to six accounts per member. The maximum administration fee (inclusive of account fee if applicable) you can incur per North account is $4,500 per annum. Discounted and standard administration pricing still applies. Self managed super funds (SMSFs), trusts and companies are eligible to be included in a family group, if each member of the SMSF, beneficiary of the trust or director of the company has a valid relationship to the primary member. Stronger Super fee The Federal Government has introduced Stronger Super, a program of changes designed to streamline and strengthen Australia s superannuation system. This includes the introduction of a levy imposed on the Trustee to help fund the changes. To cover the cost of the levy and the costs associated with our implementation of the changes, the Stronger Super fee will apply to your account and is expected to end no later than 1 January The maximum Stronger Super fee you can incur per North account is $450 per annum. The maximum Stronger Super fee is calculated each anniversary year. If the maximum is reached in that anniversary year, deductions will cease and recommence the following anniversary year. The Stronger Super fee will also recommence if an account transfer occurs (eg Super to Pension). Example of annual fees and costs in relation to the administration fee. Example 1 If your account value is $145,000, the administration fee is 0.95% per annum ($1, per annum) plus an account fee of $91 per annum and the Stronger Super fee of 0.03% per annum ($43.50 per annum). If your balance then increases to $150,000, the administration fee applicable on the entire balance of your account is 0.80% per annum ($1,200 per annum) plus an account fee of $91 per annum and the Stronger Super fee of 0.03% per annum ($45 pa). Example 2 If your account value is $150,000 and $50,000 of that was invested in one of the funds that attracts the discounted administration fee, then your administration fee would be 0.40% per annum on $50,000 ($200 per annum) and 0.80% per annum on $100,000 ($800 per annum). The total administration fee would be $1,000 per annum plus an account fee of $91 per annum and the Stronger Super fee of 0.03% per annum ($45 per annum). If you then decided to add a guarantee to the account, the administration fee is not discounted and would be 0.80% per annum on the entire balance, with no account fee applicable. The Stronger Super fee still applies. Please note: The above examples are provided by way of illustration only and do not incorporate the fee rebate. For more information on the fee rebate refer to page 5 Administration fee rebate (fee rebate) of this SPDS. Other fees and costs Insurance fees Insurance fees (premiums) are dependent on the cover selected, age, gender, occupation, health and other factors. If insurance cover is accepted, premiums are deducted from your cash account in advance. Refer to the current AMP Elevate insurance PDS for further information. Your financial adviser can provide you with a personalised quote. Brokerage When purchasing or selling listed securities, trading costs charged by the broker will be incurred. These costs, which include brokerage and GST, will be directly debited from your cash account. Costs per transaction vary between brokers and are subject to change. 6

8 Please ask your financial adviser for details on current brokerage rates and see the table on page 3 of this SPDS for the brokerage costs applicable and how and when they are paid. These costs are an additional cost to you. In specie transfer fee When transferring assets in or out of your account, in specie fees will apply. These fees are an additional cost to you. For an in specie in transfer, a transfer fee of $25.63 per asset will apply for each listed security, ETF, ETC and AREIT you request to transfer in. This cost is charged by the broker and not by us. This fee will be deducted from your cash account after the asset transfer has been processed. For an in specie out transfer, a transfer fee of $100 per asset applies to each managed fund or listed security you request to transfer out. This fee will be deducted from your cash account at the time the units being transferred are removed from your account. If there are insufficient funds in your cash account some of the assets may be sold to fund these costs. Adviser remuneration Your financial adviser is a valuable resource available to you as they can help you understand how investments work and how to get the most from your super and/or pension. Your adviser can also provide advice and guidance about other financial and insurance matters. Adviser fees You may agree to pay your financial adviser a member advice fee (MAF) from your North account, which is the remuneration they receive for providing you with financial advice in relation to this product. You should discuss MAF with your financial adviser to ensure you understand it and how it is calculated. Member advice fees may comprise of either one or a combination of the following: Member advice fee types Member advice fee option How and when paid Member advice fee initial A fee you may agree to pay your financial adviser for initial financial advice. This may include initial, plan preparation and research, and advice implementation. Member advice fee ad hoc A fee you may agree to pay your financial adviser for additional financial advice. Member advice fee ongoing An ongoing fee you may agree to pay your financial adviser for ongoing financial advice. Member advice fee listed securities An ongoing fee paid from your account to your financial adviser for financial advice when trading listed securities. Member advice fee contributions A fee you may agree to pay your financial adviser for financial advice on initial and/or future contributions. A one-off dollar fee A one-off dollar fee A regular dollar and/or percentage fee An ongoing dollar fee A percentage of each contribution A one-off dollar fee as agreed with your financial adviser, which is deducted from your account. The fee will be deducted from your account at the time your account is established, subject to your account balance. (i) Where your account balance is not sufficient to pay this fee at establishment, the fee will be deducted once your account balance exceeds the minimum requirement. A one-off dollar fee as agreed with your financial adviser that is deducted from your account. The fee will be deducted from your account at the time we receive your instructions, subject to your account balance (i) and any member advice fees already paid during your anniversary year. A regular dollar and/or percentage fee deducted from your account monthly or quarterly as agreed with your financial adviser. The percentage fee will accrue daily and be deducted from your account at your nominated frequency of either monthly or quarterly. Fees will only be deducted up to the amount determined by your account balance (i) at the end of that period and subject to any member advice fees already paid during your anniversary year. A dollar-based fee charged on listed security trades as agreed with your financial adviser. This fee is only charged on adviser initiated transactions (eg switches and ad hoc rebalances). A percentage of each initial and/or future contribution as agreed with your financial adviser. The fee will be calculated as a percentage of each initial and/or future contribution made to your account and deducted from your cash account at the time the contribution is received. (i) Deductions for member advice fees are subject to minimum account balances. Refer to 'Member advice fee limits' below for further details. 7

9 In all circumstances, you control the MAF payments and can instruct us to change or cease payments. This instruction must be received by us in writing. Your instructions will generally be actioned within two business days, but it may take longer depending on processing requirements. We will also process instructions from your financial adviser to reduce MAF payments. In the event we receive inconsistent instructions from you and your financial adviser we will always act in accordance with your instructions. Where you enter into an agreement with your financial adviser for MAF, it is possible that your financial adviser may transfer the advisory services they provide you to another financial adviser. This may occur in circumstances such as, but not limited to, your financial adviser retiring, changing roles, merging advice practices or selling all or part of their practice. Where any such changes occur, you will be notified within 30 days of us becoming aware of any such change, and your member advice fee arrangements will continue to be paid to the new financial adviser, unless you instruct us otherwise. You should refer to your Statement of Advice from your financial adviser for details of the MAF arrangements between you and your financial adviser. Member advice fee limits The maximum MAF that you can agree to pay your financial adviser from your account is dependent on your account value and is outlined in the following table. Maximum MAF payable to your financial adviser: Fee type MAF (initial, ad hoc, ongoing, listed securities) MAF (initial, ad hoc, ongoing, listed securities) MAF (initial, ad hoc, ongoing, listed securities) MAF (contributions) (iii) Account balance Under $1,500 $1,500 to $10,000 Over $10,000 N/A (ii) Maximum payable to your financial adviser (inclusive of GST) Nil Maximum deducted from your account (inclusive of GST, net of RITC) Nil 2.69% of your 2.51% of your total account total account balance pa balance pa (i) $5,500 plus $5,125 plus 2.69% of your 2.51% of your total account total account balance pa (i) balance pa (i) 4.4% of each 4.10% of each contribution contribution or rollover or rollover (i) Based on the anniversary of your account establishment date. (ii) MAF (contributions) is not based on your account balance. (iii) Your financial adviser may be restricted from applying member advice fees to ongoing contributions as these fees are prohibited by some financial services licensees. Please confirm with your financial adviser. Limits will be monitored and verified against your account value each time a MAF is charged during the account anniversary year. We reserve the right not to deduct fees that we believe are unreasonable. The remuneration that your financial adviser receives differs from the amount you pay from your cash account due to reduced input tax credit (RITC). RITC is a partial rebate of the GST payable to financial advisers that we pass directly onto you. Therefore, you are not charged the entire amount that the adviser receives as remuneration. Capacity to index member advice fees Where you agree to pay your adviser a dollar amount for the member advice fee ongoing, this amount will be indexed each year on your account anniversary date or on a date agreed with your financial adviser. You may choose from two methods of indexation: fixed percentage (up to 7% per annum), or consumer price index (CPI) using the most recently published CPI. Indirect cost ratio Investment cost The fees and costs of any investment options, excluding listed securities and term deposits, you choose are in addition to the fees charged by us. The investment cost for each investment option selected by you and your financial adviser is set out in the relevant underlying investment option s PDS. Managers of the investment options, excluding listed securities and term deposits, generally express their fees and expenses as a percentage per annum of the net asset value of the investment option (Indirect Cost Ratio (ICR)). This is an estimate of the ongoing fees and expenses of investing in an investment option. It includes the management fees, custody and compliance fees, performance fees (if applicable) and certain other expenses, but excludes buy/sell costs and brokerage. Term deposits and listed securities have no investment costs. Performance fees In addition to investment costs, some fund managers may charge an additional fee for managing the asset. The amount of, and methods for calculating the performance fees can vary between investment options. For up-to-date information about fees and costs of a particular investment option, refer to that investment option s PDS. Visit northonline.com.au or contact your financial adviser to obtain up-to-date copies of PDSs. Buy/sell costs Most of the investment options, excluding listed securities and term deposits, have buy/sell costs. This is the difference between the purchase unit price and the sell unit price and is the fund manager s estimates of the costs of buying and selling assets of the investment option. For example, these costs may include brokerage fees and government taxes and charges. These costs will differ according to the types of assets held by the investment option and whether they are traded in Australia or overseas. Transaction costs vary based on relative costs of investing with a particular fund manager and/or a particular type of investment. The buy/sell costs currently range from 0% to 3.00% of the trade amount. 8

10 Buy/sell costs are additional costs to the member which are reflected in the unit price and are not charged separately. These estimated costs are not paid to us, they are used by the fund manager to meet transaction costs. These costs are calculated as a pre-determined average of the costs that the fund manager of the investment option expects to incur when assets are bought or sold. They will therefore depend on the type of assets held in the different options. They will also be influenced by the fund managers actual experiences of the costs involved in trading these assets. For more information on the buy/sell costs, refer to the North investment options document and the underlying investment option s PDS. Additional fee and cost information Increases or alterations in charges We reserve the right to add or alter any of the charges and fees outlined in this PDS at the discretion of the Trustee without your consent. You will be informed of any increases to the fees at least 30 days before they occur. Limits apply in relation to any future increase in the fees and charges: MAF (contributions) cannot exceed 5% per contribution MAF (initial, ad hoc, ongoing and listed securities) cannot exceed 5% per annum plus $10,000 per annum of the member s account balance administration fee will not exceed the greater of $500 per annum; and $250 per annum plus 2.5% per annum of the member s account balance Stronger Super fee will not exceed 0.05% per annum guarantee fee will not exceed the greater of $500 per annum; and $250 per annum plus 7% per annum of the member s account balance additional contribution guarantee fee cannot be increased above 10% up front per contribution. The Trust Deed permits the Trustee to charge other fees and charges. The Trustee does not currently charge all available fees and charges. These fees and charges may be calculated and charged by the Trustee in the manner notified to members from time to time. For further information on these fees and charges, refer to section 6 of the additional information booklet. Taxation and fees The actual amount of fees and costs you pay may be reduced by up to 15%. This is because superannuation funds currently receive a 15% tax deduction for deductible expenses. The benefit of this tax deduction is passed on to you. The fees and costs shown in the above table are before the 15% tax deduction. The fees described in the tables of Fees and other costs section include, if applicable, GST less any RITC where relevant. For more information about tax and your superannuation, please refer to refer to 'Taxation information' on page 24 of the PDS and section 5 of the additional information booklet. Example of annual fees and costs for a balanced investment option This table gives an example of how the fees and costs for the North Multi-manager Index Balanced option for this superannuation product can affect your superannuation investment over a one-year period. You should use this table to compare this superannuation product with other superannuation products. Example - North Multi-manager Index Balanced option Investment fees (i) Plus Administration fees (ii) Plus Indirect costs for the North Multi-manager Index Balanced investment option (iii) Equals Cost of (iv) (v) product you (i) (ii) (iii) (iv) (v) Nil 0.40% pa plus 0.03% pa plus $91 pa 0.45% pa Balance of $50,000 For every $50,000 you have in the North multi-manager index balanced option, you will be charged $0 each year. And, you will be charged $91 regardless of your balance plus $215 in administration fees. And, indirect costs of $225 each year will be deducted from your investment. If your balance was $50,000, then for that year would be charged fees of $531 for the North multi-manager index balanced option. Amounts in your cash account will have a cash account investment fee of 0.58% per annum. For further details on setting your cash target balance refer to 'What is the cash account?' on page 8 of the PDS. Administration fees include the discounted administration fee (0.40% per annum), Stronger Super fee (0.03% per annum) and account fee ($91 per annum). The balanced investment option in this example is the North Multi-manager Index Balanced option which has an investment cost of 0.45% per annum. Additional fees and costs may apply, including cash account management cost and member advice fees as agreed with your financial adviser. Any new eligible application for a North Personal Super or North Personal Pension account submitted on North Online from 19 January 2015 to 29 February 2016 may be eligible to receive a fee rebate as set out on page 5 of this SPDS, reducing the cost of the product. 9

11 Defined fees Activity fees A fee is an activity fee if: a. the fee relates to costs incurred by the trustee of the superannuation entity that are directly related to an activity of the trustee: i. that is engaged in at the request, or with the consent, of a member, or ii. that relates to a member and is required by law, and b. those costs are not otherwise charged as an administration fee, an investment fee, a buy/sell spread, a switching fee, an exit fee, an advice fee or an insurance fee. Administration fees An administration fee is a fee that relates to the administration or operation of the superannuation entity and includes costs incurred by the trustee of the entity that: relate to the administration or operation of the entity, and are not otherwise charged as an investment fee, a buy/sell spread, a switching fee, an exit fee, an activity fee, an advice fee or an insurance fee. Advice fees A fee is an advice fee if: a. the fee relates directly to costs incurred by the trustee of the superannuation entity because of the provision of financial product advice to a member by: i. a trustee of the entity, or ii. another person acting as an employee of, or under an arrangement with, the trustee of the entity, and b. those costs are not otherwise charged as an administration fee, an investment fee, a switching fee, an exit fee, an activity fee or an insurance fee. Buy/sell spreads A buy/sell spread is a fee to recover transaction costs incurred by the trustee of the superannuation entity in relation to the sale and purchase of assets of the entity. Exit fees An exit fee is a fee to recover the costs of disposing of all or part of members interests in the superannuation entity. Indirect cost ratio The indirect cost ratio (ICR), for a MySuper product or an investment option offered by a superannuation entity, is the ratio of the total of the indirect costs for the MySuper product or investment option, to the total average net assets of the superannuation entity attributed to the MySuper product or investment option. Note: A dollar based fee deducted directly from a member s account is not included in the indirect cost ratio. Investment fees An investment fee is a fee that relates to the investment of the assets of a superannuation entity and includes: a. fees in payment for the exercise of care and expertise in the investment of those assets (including performance fees), and b. costs incurred by the trustee of the entity that: i. relate to the investment of assets of the entity, and ii. are not otherwise charged as an administration fee, a buy/sell spread, a switching fee, an exit fee, an activity fee, an advice fee or an insurance fee. Switching fees A switching fee is a fee to recover the costs of switching all or part of a member s interest in the superannuation entity from one class of beneficial interest in the entity to another. The following text should be read in conjunction with page 24 of the PDS under the section Your privacy'. Information about other individuals Where you provide any information about one or more other persons, you agree to obtain any such person s consent to the disclosure and to inform them of our identity and contact details as well as the information set out in the 'Your privacy' section, including: the fact that we will collect, or have collected, their information and the circumstances of that collection why their information is collected by us and how it will be used and to whom it may be disclosed by us, and that our privacy policy contains information about: how the person may access their personal information and seek correction of such information how the person may make privacy complaints about us and how we will deal with such a complaint. Contact Us phone mail north@amp.com.au North Service Centre GPO Box 2915 MELBOURNE VIC /15 10

12 This document is Part A of the Product Disclosure Statement (PDS) for North Personal Superannuation and Personal Pension. It should be considered in conjunction with: North Super and Pension Guarantee PDS Part B North Super and Pension Additional Information booklet, and North Investment Options document. The Trustee of the Fund and issuer of this PDS is N.M. Superannuation Proprietary Limited, a member of the AMP group of companies. Up-to-date information Information in the PDS that is not materially adverse may change from time to time. This information will be updated on northonline.com.au and a printed copy of any updated information will be provided to you free of charge by contacting the North Service Centre via at north@amp.com.au or by calling If an increase in fees occurs we will give you at least 30 days prior written notice. For any other material change we will inform you within three months of the change. We reserve the right to change the terms and conditions in this PDS subject to regulatory requirements. We may accept or refuse (without reason) any application. AMP Limited ipac asset management limited (ipac) AMP Group Holdings Limited N.M. Superannuation Proprietary Limited (NM Super) National Mutual Funds Management Limited (NMFM) Australian Business Number (ABN) ABN Australian Financial Services (AFS) Licence No ABN ABN AFS Licence No ABN AFS Licence No NMMT Limited (NMMT) ABN AFS Licence No North Personal Superannuation and Personal Pension The National Mutual Life Association of Australasia Limited (NMLA) Wealth Personal Superannuation and Pension Fund Super Product Identification Number (SPIN) NMS0001AU Unique Superannuation Identifier (USI) Super: Pension: ABN AFS Licence No ABN Throughout this PDS References to: AMP Fund Guarantee AMP GH Insurance PDS Member or you NMFM NMLA NMMT North, North Super and Pension North Investment Options Trustee, our, we or us To be read as: AMP Limited and its subsidiaries, including NMLA, NMMT and NM Super Wealth Personal Superannuation and Pension Fund A Protected Growth guarantee or a Protected Investment guarantee or a Protected Retirement guarantee as described in Part B of this PDS North Super and Pension Guarantee AMP Group Holdings Limited AMP Elevate insurance Product Disclosure Statement A member of North Personal Superannuation and Personal Pension National Mutual Funds Management Limited Underwriter of the Protected Growth and Protected Investment guarantees and Responsible Entity of the AMP Capital Wholesale Cash Fund National Mutual Life Association of Australasia issuer of Elevate insurance and the Protected Retirement Guarantee NMMT Limited provider of investment services to the Trustee North Personal Superannuation and Personal Pension plans A list of investment options available with North Super and Pension N.M. Superannuation Proprietary Limited

13 Read all relevant documents Visit northonline.com.au to download a copy of the following documents. Alternatively, a printed copy can be obtained free of charge by contacting the North Service Centre at north@amp.com.au or on North Super and Pension Guarantee North Guarantee PDS Part B Specific information regarding North s Guarantee options. North Super and Pension Additional information Document available from northonline.com.au This PDS summarises the key features and benefits of North Personal Superannuation and Personal Pension. Throughout this PDS, whenever you see this symbol, i, further information on the topic is provided in the Additional information document, which can be found at northonline.com.au. Contents North Super and Pension 2 At a glance 4 North Super 6 North Pension 7 What is the cash account? 8 Investing in North Super and Pension 9 What risks apply to investing? 13 Fees and other costs 15 AMP Elevate insurance 22 How will the benefit be paid upon death? 23 What else do you need to know? 24 North Investment Options Document available from northonline.com.au Provides a list of investment options available through North Super and Pension. Also consider AMP Elevate insurance Product Disclosure Statement Life Insurance Additional optional insurance benefits (including Total and Permanent Disability (TPD)) Income Protection

14 North Super and Pension North is an all-inclusive product that enables you to invest in a range of managed funds, listed securities and term deposits. You can have AMP Elevate insurance attached to your North account to provide you with life, TPD and income insurance cover. Bringing your strategy to life Together with your financial adviser, you will agree on a financial strategy to achieve your retirement goals. North Super and Pension seeks to bring that strategy to life by providing a single access point for a range of investment options across major asset classes, drawing on the specialist expertise of some of the world s leading investment managers. North Guarantee North Super and Pension is also available with a range of guarantees. For further details about these guarantees, please refer to Part B of the PDS North Super and Pension Guarantee. North Online Your North account is operated through North Online at northonline.com.au. North Online allows you and your financial adviser to enquire, transact and report on your North account. In addition to a wide range of transactions, you are able to log onto North Online at any time to see how your investments are performing. All communications will be sent to you via North Online. They will be stored in your own online filing cabinet, or displayed on the News & announcements page within North Online, providing you with easy access at any time. You will also receive an Annual Statement once per year through post. North is an online product. An integral part of this product is the provision of information and services through the internet. You will require internet access to use and maintain your account. Transacting on your account Financial adviser access Transactions on your North Super and Pension account are completed by your financial adviser using North Online. Your financial adviser should obtain your authorisation (consent) for each transaction they perform on your account. This authorisation will be obtained by your financial adviser during the advice process and is retained by them as evidence that you have authorised each transaction they perform. We will act upon any instruction (except changes to bank account details) received from your financial adviser in relation to your account. Changes to bank account details are excluded for security purposes. Your financial adviser can use North Online to: open new accounts add additional or new investments switch investments complete transfers submit withdrawal requests trade shares produce ad hoc reports to monitor the performance of your account view communications and statements online. Any transactions made on your account will be confirmed to you through North Online. In certain circumstances you may enter into an arrangement with your financial adviser allowing them to transact on your account on your behalf without the need for each transaction to be authorised by you. This is known as a Managed Discretionary Account (MDA). To offer an MDA arrangement your financial adviser must be appropriately licensed to operate an MDA. For further information about how to set up an MDA, please contact your financial adviser. 2

15 Member access You are able to log on to North Online at any time to see how your investments are performing. You can use North Online to: view your account details and transactions access your online filing cabinet monitor the performance of your investments check the progress of your transactions update your personal details (including banking details). North Online also provides the option for your financial adviser to change your North Online access to allow you to complete a broader range of transactions. You should discuss this option with your financial adviser. My Portfolio The AMP app It s the first app in Australia where you can access your banking, insurance, investments and super accounts all from one place. The AMP app helps you get things done, like accessing your AMP Bank accounts to make payments or getting help to start consolidating your super. Get started in three easy steps: 1. Have your BankNet (AMP Bank s internet banking service) and/or My Portfolio (super/insurance/investments) login details handy. 2. Download the app from the App Store or Google Play. 3. Follow the set-up instructions and you re good to go. Available from the Apple 1 App Store and Google Play 2 now. In addition to accessing your account on North Online, you can view your AMP consolidated details at My Portfolio. My Portfolio is AMP s customer website that provides a single view of all the AMP products that you hold. It allows you to view your account balances, personal details, transaction details and to generate a Portfolio Report from when your North Personal Super and Personal Pension account commenced. It also offers you the ability to include any externally held assets for reporting purposes. If you would like to register for My Portfolio, visit amp.com.au. 1 Apple is a trademark of Apple Inc. 2 Google Play is a trademark of Google Inc. 3

16 At a glance Minimum transactions Initial contribution or rollover $2,000 (i) Additional ad hoc $100 contribution or rollover (ii) Minimum ad hoc withdrawal $0 Switches $100 Rebalance $1,000 Cash account sweep Automatic Buy (iii) : $500 Minimum total account value Automatic Sell (iii) : $100 $2,000 Product features Regular savings plan (ii) Cash account Income Investment switching Investment instructions How the benefit will be paid upon death Bpay, EFT and ad hoc direct debit Dollar cost averaging Investment options Investment options (refer to North Investment Options document for full details) Personal Superannuation and Personal Pension with a Guarantee For your Personal Superannuation account via direct debit from your bank account fortnightly, monthly, quarterly, half-yearly or yearly, the minimum ongoing amount is $100 per payment. A flexible working cash account allows you to specify the minimum and target amount to be held. Income distributions (iv), dividends and interest for each investment option where applicable will be credited to your cash account or paid via the cash account to your bank account for pension clients. Refer to the Income section on page 11 for full details. You can switch all or part of your portfolio between the full range of investment options available at any time. There is no limit on the number of switches you can make each year. You can arrange to have investment instructions for buying and selling investment options via your cash account. You can also specify instructions to rebalance your investments. You can switch between the specified range of investment options within your selected investment strategy up to six times a year. Investment instructions to buy or rebalance investments must be within your selected investment strategy asset allocation. Investments will be sold in proportion to your account value. To assist with your estate planning you may nominate beneficiaries through a: binding death benefit nomination non-binding death benefit nomination reversionary pension (can only be selected at the commencement of a Personal Pension account). Your financial adviser can help you to choose the best method for your particular circumstances. Additional contributions can be made to your Personal Superannuation account using direct debit via North Online. You can also make additional contributions using an EFT or Bpay facility provided by your bank. Allows you to invest a set dollar amount into the market at regular intervals. Personal Superannuation and Personal Pension An extensive list of multi-manager and single manager funds, listed securities, selected Australian real estate investment trusts (AREIT), exchange traded funds (ETF), exchange traded commodities (ETC) and term deposits. with a Guarantee A subset of managed funds. Registered to Bpay Pty Ltd ABN

17 Insurance (refer to the AMP Elevate Insurance PDS for full details) AMP Elevate insurance Life insurance TPD insurance Income insurance Management costs (v) Personal Superannuation and Personal Pension Account fee $0 or $91 pa N/A Administration fee Stronger Super fee Investment costs Brokerage Brokerage panel broker In specie transfer fee Advice fees Member advice fee contributions Member advice fee initial/ad hoc Member advice fee ongoing Member advice fee listed securities with a Guarantee (vi) 0.30% to 0.95% pa of your account value the actual rate will vary according to the value of your account and your choice of investment option. The maximum administration fee (inclusive of account fee if applicable) you can incur per North account is $4,500 pa. 0.03% pa a fee to cover the costs associated with implementing the Federal Government s superannuation changes. The maximum Stronger Super fee you can incur per North account is $450 pa. These costs apply to the underlying investments selected by you and your financial adviser and are listed in the North Investment Options document. The cost associated with purchasing or selling listed securities charged at 0.11% of the value of each trade, subject to a minimum fee of $34. If you use a third-party broker, the brokerage fee negotiated between you and one of the approved third-party panel brokers plus a $10.25 settlement fee. For a list of approved brokers and their terms and conditions, refer to North Online. Transfers in: The cost associated with transferring a listed security, exchange traded fund (ETF), exchange traded commodity (ETC) or Australian real estate investment trust (AREIT) from outside of North to your account. This is charged at $25.63 per asset per transfer. Transfers out (vii) : The cost associated with transferring a listed security, ETF, ETC, AREIT or managed fund from your North account, to another provider. This is charged at $100 per asset per transfer. Up to 4.10% of each contribution or rollover as agreed on between you and your financial adviser. This fee is paid to your financial adviser. A one-off fee paid from your account to your financial adviser for financial advice. An ongoing fee paid from your account to your financial adviser for financial advice. An ongoing dollar-based fee paid from your account to your financial adviser for financial advice for trading listed securities. (i) A maximum initial contribution or rollover of $2 million applies to accounts with a Guarantee. Amounts higher then this may be considered. Your financial adviser can assist you in requesting approval. (ii) Superannuation only. (iii) All transactions above are subject to a trade minimum of $1000 for each listed security held. (iv) Unless otherwise indicated in the North Investment Options document or the underlying investment option PDS. (v) All fees are inclusive of GST, less any reduced input tax credits where relevant. (vi) Refer to the PDS Part B for more information on the Guarantee options including guarantee fees. (vii) The in specie out capability and fee will be effective from 28 July N/A N/A N/A 5

18 North Super Contributing to North Super We accept all contributions, rollovers and transfers allowed by legislation, subject to the minimum contribution amount. Regular savings plan contributions will continue until we receive any changes or a cancellation of the facility. You can make changes or cancel your regular savings plan at any time via North Online. i For further information on what type of contributions can be made to a superannuation account, refer to section 1 of the Additional information document. i For further information on how to make a contribution to your superannuation account, refer to section 1 of the Additional information document. Contributions You can make a contribution at any time on North Online by direct debit. Alternatively, you can use your bank s online banking facilities to EFT or Bpay your contribution. Details about using EFT or Bpay are available in the Additional information booklet. When making a contribution by cheque, all cheques should be attached to a deposit advice created on North Online and made out to North. Forward the cheque along with the deposit advice to: North Service Centre GPO Box 2915 MELBOURNE VIC 3001 Rollovers from other superannuation providers You can roll over funds from other superannuation providers by completing rollover forms provided by: us, through North Online the other superannuation provider the Australian Taxation Office (ATO). Regular savings plan A regular savings plan is an easy and convenient way to build your retirement savings while you are a member of North Personal Superannuation. You (or your employer) can establish a regular savings plan via direct debit from a nominated bank account. You can select from a fortnightly, monthly, quarterly, half-yearly or yearly frequency. The minimum amount per transaction that must be contributed for all frequencies is $100. You will need to nominate the date on which amounts are withdrawn from your nominated bank account to be a day between the 1st and 28th of the month or the last day of the month. Regular savings plan contributions will generally be receipted into your cash account on the day we receive the cash. If a regular savings plan payment falls on a weekend or Melbourne public holiday, we will initiate the payment on the following business day. Automatically increasing your regular savings plan Over time, inflation reduces the real value of your investments. To help you keep pace with inflation you can choose to have your regular savings plan amount automatically increased or indexed each year. You can choose between: a fixed percentage (up to 7% pa) applied on your account anniversary each year, or Consumer Price Index (CPI) applied on your account anniversary each year using the most recently published CPI figure. You may change or cancel the option at any time via North Online. How can I access my super? Withdrawals (partial and full) can be made at any time subject to relevant superannuation legislation (where applicable) and trust deed requirements. You can make a partial withdrawal from your North Personal Superannuation account (subject to trade minimums as described on page 4), provided you maintain an account value of at least $2,000. You can select from which individual investment options you wish to sell down from or, alternatively, sell down your investment options according to your investment profile. Your benefits are generally paid as a lump sum, but can also be: converted (in full or in part) to North Personal Pension if you have met a condition of release, or rolled over to another complying superannuation provider. i For further information on withdrawing from your super, please refer to section 2 of the Additional information document. 6

19 North Pension A pension is designed to pay you a regular income stream to help you meet your financial needs in retirement. The North Personal Pension is an allocated pension, also known as an account-based pension. Depending on your individual circumstances, pensions allow you to enjoy the many tax advantages of the superannuation environment. You may also commence a pension with preserved superannuation benefits if you have reached your preservation age (refer to table below) and are still in the workforce. This type of allocated pension is known as a non-commutable allocated pension (NCAP). An NCAP provides a flexible and taxeffective way for you to access your superannuation benefits from preservation age without having to choose between full-time employment and full-time retirement. If you choose an NCAP you are not locked in to your choice should your circumstances change in the future. You are not able to make additional contributions into a pension, but you may commence additional pensions with eligible rollovers. Date of birth Before 1 July From 1 July 1960 to 30 June From 1 July 1961 to 30 June From 1 July 1962 to 30 June From 1 July 1963 to 30 June On 1 July 1964 or after 60 Pensions commencing with multiple rollovers Preservation age A pension can be commenced with more than one rollover; however, each rollover must be received prior to the pension commencing. It is not possible to contribute a further rollover or any other amount to a pension that has already commenced. If you are commencing your pension with more than one rollover, your financial adviser will need to indicate this when completing your application online. Each rollover received will be deposited in a North Personal Superannuation account and invested in accordance with your investment instructions. When all specified rollovers have been received, they will immediately be used to commence your pension, including any investment earnings received in the interim. The earnings credited to your North Personal Superannuation account before your pension commences will be subject to superannuation earnings tax of 15%. Please note that if any specified rollover is not received within 75 days of the submission of your application, the pension will automatically commence with the total receipted rollovers at that time. If rollovers are received after 75 days, your financial adviser will be contacted to confirm your instructions. When you hold an allocated pension you must receive a minimum income payment each financial year, based on your age and account value. The minimum income amount for the part-year up to 30 June is calculated at the time your pension commences. The minimum is then recalculated on 1 July in subsequent years using your age and account value on that date. If you have not received the full minimum income amount after your last income payment for the financial year, we will automatically pay you an additional income payment for the difference before the end of financial year to ensure that the minimum is met. Pension payments When you hold an allocated pension you must receive a minimum income payment each financial year, based on your age and account value. The minimum income amount for the part-year up to 30 June is calculated at the time your pension commences. The minimum is then recalculated on 1 July in subsequent years using your age and account value on that date. If you have not received the full minimum income amount after your last income payment for the financial year, we will automatically pay you an additional income payment for the difference before the end of financial year to ensure that the minimum is met. Note that any relevant PAYG tax will be payable. Your financial adviser can help you calculate your starting minimum pension payment level. You can vary the pension payments at any time within the prescribed limits. The maximum payment amount for NCAPs is 10% of your account value at the time your NCAP commences. This maximum is recalculated each year using your account value at 1 July. In the first year of your NCAP, your minimum pension payment is prorated; however, the maximum remains at 10%. i For further information on NCAPs, how pension payments are calculated and how to make a withdrawal from your pension, please refer to section 3 of the Additional information document. Automatically increasing your pension Over time, the purchasing power of your money is reduced through inflation. To help keep pace with inflation you can choose to increase your pension payment automatically each year. You can choose from two methods: A fixed percentage (up to 7% pa) applied on 1 July, or CPI applied on 1 July each year using the most recently published CPI figure. To activate this facility, simply make this selection upon application. You may change or cancel this facility at any time. 7

20 What is the cash account? Your cash account The cash account is used for essential functions, some of which are illustrated below. Contributions, rollovers, interest on your cash account Purchases Sells, distributions, dividends and interest Your underlying investment(s) Cash account Withdrawals, pension payments, rollovers, fees and taxes Insurance premiums Insurance options Insurance claims Each North Super and Pension member will have a cash account. You have the flexibility to control the balance of your cash account. You are able to nominate the minimum and target amounts to be held in the cash account. Cash account sweeps When the balance of your cash account exceeds your nominated target, the excess cash will be invested according to your investment instructions. The amount of excess cash must meet the trade minimum defined on page 4 for the sweep to occur. If the balance of your cash account falls below your nominated minimum, we will top up your cash account to your specified target. We will do this by selling down your investments, according to your investment instructions. The minimum amount that will be sold is specified on page 4. Where you hold listed securities, the sweep must result in a trade amount of at least $1000 per listed security that you hold for the sweep to occur. Note that term deposits will not be sold to fund a cash account sweep. Earnings on your cash account Funds held in your cash account are pooled with the cash balance of other members and will be invested in one or more of the following: a registered managed investment scheme, known as the AMP Capital Wholesale Cash Fund, APIR code NMF0005AU (Responsible Entity is NMFM) a trading bank account with Westpac Banking Corporation, and a trading bank account with AMP Bank Limited. We reserve the right to change or to alter the investment strategy of the cash account at any time without prior notice. Any balance held in your cash account will accrue interest calculated daily. Interest accrued (less management cost) will be allocated to the cash account effective the first day following the end of each month or, if you close your account before the end of a month, prior to payment being made. Negative cash account balance Should your cash account balance become negative at any time, interest will be charged on the negative amount at the same rate as the interest paid on positive cash account balances. Events that may cause your cash account balance to become negative include payments such as fees, insurance premiums, withdrawals or if you are switching between investment options. When your cash account balance goes into negative, we will sell your investments as per your sell profile to bring your cash account balance back to your Target cash balance amount. Where you have not provided us with a sell profile, we will sell your investments proportionately. However, if you only hold illiquid investment options, listed securities and/or term deposits, these assets will not be sold down proportionately and your cash account will remain negative. For more information, refer to page 9. When will your money be invested? Your contribution will generally be credited to your cash account on the business day it is received. Any balance held in your cash account will accrue interest at the current cash account crediting rate on the daily balance from that date until your funds are invested according to your investment instructions. Your investment instructions are forwarded to the underlying fund manager, term deposit provider and Australian Securities Exchange (ASX) on a daily basis. The effective date of your investment will be the date applied by each individual fund manager or term deposit provider. Ad hoc instructions to trade listed securities will be forwarded to the ASX when they are received. 8