State Super Retirement Fund

Transcription

1 State Super Retirement Fund Investment Booklet Fixed Fund Date of Issue 20 January 2015 State Super Financial Services Australia Limited ABN Australian Financial Services Licence No Trustee of the State Super Retirement Fund ABN

2 Read this Information regarding the State Super Tailored Super Plan USI , the State Super Flexible Income Plan USI , the State Super Personal Retirement Plan USI SSI0017AU and the State Super Allocated Pension Fund USI SSI0009AU is is contained in the applicable Product Disclosure Statement (PDS) and various Booklets, including this Investment Booklet Fixed Fund (Booklet). You can obtain a copy of these documents without charge on ssfs.com.au or by contacting us. The information in this Booklet forms part of: the Tailored Super Plan PDS dated 20 January 2015; the Flexible Income Plan PDS dated 1 July 2014; the Personal Retirement Plan PDS dated 20 January 2015; and the Allocated Pension Fund PDS dated 1 July The information in each PDS and the Booklets is general information only and doesn t take into account your financial situation or needs. You may wish to consult your financial planner to obtain financial advice that is tailored to your personal circumstances. The information in each PDS and the Booklets may change from time to time. We may update information which is not materially adverse to you on ssfs.com.au. A paper copy can also be obtained without charge from your financial planner or by calling We may change any of the matters described in a PDS and the Booklets from time to time. We will notify you of material or significant changes which may affect you before or after the change has taken place in accordance with the law. The Tailored Super Plan, Flexible Income Plan, Personal Retirement Plan and Allocated Pension Fund are offered in the State Super Retirement Fund (Retirement Fund). State Super Financial Services Australia Limited ABN , AFSL Number (referred to in this Booklet as SSFS, the trustee, we, us) is the trustee of the Retirement Fund. This Booklet is issued solely by SSFS. No other person (whether or not related to SSFS) is responsible for the information contained in this Booklet. None of the Commonwealth, State or Territory Governments, SSFS, the SAS Trustee Corporation, the investment managers we appoint or our service providers, or their respective officers, employees or agents guarantee that your investment in the Retirement Fund will increase or retain its value, guarantee the repayment of the money you invest in the Retirement Fund or guarantee the performance of the Retirement Fund. Changes to investment options (Funds) To ensure that the range of Funds continues to suit the investment needs of our investors, we regularly monitor our investment options and investment managers. We may add, close or terminate Funds, add new investment managers, as well as change the aim and strategy and asset range or benchmark of a Fund at any time, without prior notice to investors. If a Fund is terminated, we will switch your moneys invested in that Fund to another Fund, which will generally be of a similar risk/return profile. We will notify you about any material changes to the Funds or investment managers. State Super Allocated Pension Fund Flexible Income Plan Investment Booklet

3 Contents State Super ALLOCATED PENSION FUND FLEXIBLE INCOME PLAN How we invest your money 2 Risks of super 4 Investment options 6 Fund Details 7 Additional Information 9 Directory 14 REGISTERED OFFICE Level 7, 83 Clarence Street, SYDNEY Mail: GPO Box 5336 Sydney NSW 2001 Telephone: Fax: Internet: Visit our website or call for further information 1

4 How we invest your money About the Fixed Funds The Fixed Funds are non-unitised investment options that provide a fixed rate of return for terms of 1, 2, 3 or 5 years. The fixed rate of return is set after you apply but before your investment begins, so you know what you will earn over the life of the investment, assuming you hold the investment for the full term. For investments in the Fixed Term Fund that include the reset feature the fixed rate of return may be increased during the term of your investment (see the Reset feature section below for further information). The Fixed Funds are designed to assist you to plan for your short to medium term cash flow needs. Key features Feature Fixed rate of return Choice of repayment of your initial investment Description Provides a fixed rate of return for the selected term Fixed Term income is paid monthly and your initial investment is repaid at maturity Fixed Payment* income is paid monthly and your initial investment is repaid in monthly instalments throughout the term Terms Monthly payments Monthly investment Minimum investment Closure before maturity 1,2,3 or 5 years Payments are credited to the Cash Fund each month Investments in the Fixed Funds can be made monthly $10,000 per investment You can submit a request to redeem or withdraw one or more of your investments in a Fixed Fund at any time. Your request will be processed on a monthly basis. In this situation, the amount redeemed or withdrawn may be less than your initial investment. Maximum investment You can invest up to 60% of your account balance into the Fixed Funds. *Available in the Allocated Pension Fund and Flexible Income Plan only 2 State Super Allocated Pension Fund Flexible Income Plan Investment Booklet

5 How we invest your money How we invest your money Moneys invested in the Fixed Funds are invested in fixed interest securities, called Notes, issued to the trustee. The trustee has partnered with Deutsche Bank AG, Sydney Branch ABN (Deutsche) to develop the Notes. Under the terms of the Notes: (a) All funds are invested in a range of fixed interest securities, called Authorised Investments that meet criteria agreed with the trustee. The criteria include that at the time of purchase, an Authorised Investment must have an investment grade credit rating from Standard & Poor s (or Moody s equivalent) that is, rated BBB- or higher. Derivatives may be used to manage risk or gain exposure to Authorised Investments but cannot be used for speculation. (b) The Issuer of the Notes has entered into a derivative with Deutsche called an equalisation swap. Under the equalisation swap, all payments (including income and principal) generated by the Authorised Investments must be paid to Deutsche. In return Deutsche must pay to the Issuer of the Notes the fixed amounts payable to the trustee, on behalf of the Fixed Fund investors. The trustee uses the amounts it receives from the issuer of the Notes to make the monthly and maturity payments in relation to the Fixed Funds. The Authorised Investments criteria have been set so that the chances of an issuer of an Authorised Investment defaulting (i.e. failing to make an interest or principal payment as legally required) is low. This is reflected in the tables on page 7 and 8. Additionally under the equalisation swap, Deutsche has agreed to bear the costs of a default of an Authorised Investment up to a certain limit. However, if this limit is exceeded, a default may result in a reduction in the amount payable by Deutsche under the equalisation swap and, accordingly, a reduction in the value of the Notes. In this situation, the value of your investment in a Fixed Fund will be reduced accordingly. Please also refer to the risk of capital loss in the Risks of Super section on page 4. Environmental, social and governance issues We believe that Environmental, social and governance (ESG) issues may affect the performance of investment portfolios to varying degrees through time. We believe that companies that have a greater regard to ESG issues when making investment decisions (that is decisions about selecting, retaining or realising an investment) can increase returns to shareholders by properly managing risks while at the same time contributing to the sustainable development of the societies in which they operate. Our aim is to incorporate ESG issues into our investment analysis and decision making processes and to seek to ensure appropriate disclosure and reporting on ESG matters. We have no pre-determined views regarding what constitutes environmental, social or governance matters or how (or the extent to which) these matters should be incorporated into investment practices (e.g. the use of negative filters preventing investment in particular assets and/or the use of positive filters directing investment in assets which satisfy ESG criteria). We primarily entrust integration of ESG issues to the external investment managers we utilise. Whilst we currently do not require all investment managers to integrate ESG considerations into their investment process we consider a manager s capabilities on ESG matters as part of our manager selection and review process. You can read our ESG policy on our website ssfs.com.au/esg or you can obtain a copy without additional charge from your financial planner. Visit our website or call for further information 3

6 Risks of Super Risks of Super Fixed Funds All investments involve some level of risk. Risks can generally be managed but may not be able to be avoided completely. The Retirement Fund Investment Booklet states that risks can be broadly grouped into two categories: operational (process) risks and investment risks. The following operational risks apply to the Fixed Funds in addition to those described in the Retirement Fund Investment Booklet: Early closure the Fixed Funds are designed to be held to maturity. As described on page 11, you and we have the right to close an investment in a Fixed Fund before maturity. The costs associated with redeeming the Notes early will be passed onto you, which could mean that the amount received on early closure is less than your initial investment. Please refer to the fees and costs section on page 8 of the PRP & AP Fee Booklet (for the Allocated Pension Fund) and page 10 of the TSP & FIP Booklet (for the Flexible Income Plan). Termination of a Fixed Fund a Fixed Fund could be terminated before your investment matures. The amount of your entitlement will be based on the sale proceeds of the underlying Authorised Investments. This may mean you do not receive the fixed rate of return for the term you selected and the amount you receive on termination may be less than your initial investment. Custodial risk in addition to the roles described on page 3, Deutsche holds the Authorised Investments underlying the Notes in custody. There are custodial risks associated with this duty not being properly performed. We mitigate this risk by having a rigorous and detailed assessment of Deutsche s capabilities prior to appointment. We also undertake periodic performance and operational reviews of Deutsche. Compliance risk in addition to the roles described on page 3 Deutsche as custodian monitors the underlying Authorised Investments for compliance with criteria agreed by the trustee. There is a risk that a breach may not be detected in a timely or effective manner. The information on investment risks in the Retirement Fund Investment Booklet does not apply to the Fixed Funds. The following are some investment risk factors that you should consider before investing in a Fixed Fund: Risk of capital loss there is minimal risk of a negative annual return or capital loss. This could occur if for example the issuer of an Authorised Investment defaulted on its contractual obligations. This risk is mitigated because, under the terms of the swap with Deutsche, Deutsche will meet costs of investment default up to a certain agreed limit. If the cost of an Authorised Investment default exceeds this limit, then the face value of the Notes, and investments in Fixed Funds, will be reduced. This may result in a reduction of the payments owing to the trustee under the Notes. Counterparty risk there is a risk of loss where Deutsche as counterparty to the swap cannot meet its payment obligations. This risk is mitigated by imposing limits on the exposure to Deutsche, monitored through a counterparty risk policy. Interest rate risk your rates are locked in. If prevailing market interest rates rise, your investment return will generally not increase (except in certain circumstances if the reset feature is available in your investment - see the Reset feature section below for further information). Conversely, your investment return will not fall due to a reduction in prevailing market interest rates. This is because you lock in a rate of return, for a specified term, when you initially invest in the Fixed Term Fund or Fixed Payment Fund. 4 State Super Allocated Pension Fund Flexible Income Plan Investment Booklet

7 Risks of Super Illiquid investment option risk your investment in the Fixed Term Fund or Fixed Payment Fund is an illiquid investment and can only be redeemed on a monthly basis. This is because the Notes in which the Fixed Funds invest can only be redeemed on a monthly basis. Under Regulation 6.34A of the Superannuation Industry (Supervision) Regulations 1994 (Cth), we are not required to rollover or transfer any of your Fixed Fund investments within the statutorily prescribed 30 day period. We will process the rollover or transfer of your investment in the Fixed Funds, at the latest, within 45 days. By investing in a Fixed Fund investment, you are taken to consent that you understand and accept that a period longer than 30 days may be required to process your rollover or transfer request of your Fixed Fund investment because of the illiquid nature of the investment. It is important that you understand that investments in the Fixed Funds are not bank deposits and are not guaranteed or underwritten by any bank, SSFS, Commonwealth, State or Territory Governments, or the SAS Trustee Corporation. Your investment in the Fixed Funds is subject to investment risk, including possible delays in repayment and loss of income and principal invested. Recourse against SSFS for any losses is limited. Visit our website or call for further information 5

8 Investment options What are the differences between the Funds? The investment objective (goal) of the Fixed Term Fund is to provide a fixed rate of return over the selected term with the initial investment paid at maturity whereas the investment objective of the Fixed Payment Fund is to provide a fixed rate of return over the selected term with the initial investment repaid in monthly instalments throughout the term. The Fixed Funds have the same investment strategy (way of achieving its goal). Each invests in fixed term and fixed rate interest bearing securities called Notes. We recommend that you consult your financial planner prior to making your investment decision. Standard Risk Measure We have adopted the Standard Risk Measure, which is based on industry guidance to allow investors to compare investment options within and across super funds that are expected to deliver a similar number of negative annual returns over any 20 year period. The Standard Risk Measure for each investment option is based on long term-assumptions about the capital markets as obtained from sources including professional investment advisers. The Standard Risk Measure is not a complete assessment of all forms of investment risk; for instance, it does not detail what the size of a potential negative return could be or the potential for a positive return to be less than an investor may require to meet their objectives. Further, it does not take into account the impact of tax or early closure costs on the likelihood of a negative return. The Standard Risk Measure is not considered personal advice. You should regularly review your investment decision with your financial adviser. More detail on risks which may affect your investment is included in the Risks of Super section on page 4 and, in relation to the unitised Funds, in the Retirement Fund Investment Booklet. Risk Band Risk Label Expected frequency of negative annual returns over any 20 year period 1 Very Low Less than 0.5 years 2 Low 0.5 to less than 1 year 3 Low to Medium 1 to less than 2 years 4 Medium 2 to less than 3 years 5 Medium to High 3 to less than 4 years 6 High 4 to less than 6 years 7 Very High 6 or more years A description of the Fixed Funds is set out in the tables on pages 7 and 8. 6 State Super Allocated Pension Fund Flexible Income Plan Investment Booklet

9 Fund Details Fixed Term Fund Objective Investment strategy Standard Risk Measure Type of investor this option is intended to be suitable for Investment timeframe To provide a fixed rate of return over the selected term with the initial investment paid at maturity. Invests in fixed term and fixed rate interest bearing securities called Notes. 1 Very low (where the investment is held to maturity) Designed to suit investors who wish to lock in a fixed rate of return for the selected term of the investment. Investors can choose terms of 1, 2, 3 or 5 years. Strategic asset allocation Defensive assets Fixed interest securities 100% 100% Visit our website or call for further information 7

10 Fund Details Fixed Payment Fund (available in the Allocated Pension Fund and Flexible Income Plan only) Objective Investment strategy Standard Risk Measure Type of investor this option is intended to be suitable for Investment timeframe To provide a fixed rate of return over the selected term with the initial investment paid monthly throughout the term. Invests in fixed term and fixed rate interest bearing securities called Notes. 1 Very low (where the investment is held to maturity) Designed to suit investors who wish to lock in a fixed rate of return for the selected term of the investment and who wish to have their initial investment repaid over that term. Investors can choose terms of 1, 2, 3 or 5 years. Strategic asset allocation Defensive assets Fixed interest securities 100% 100% 8 State Super Allocated Pension Fund Flexible Income Plan Investment Booklet

11 Additional Information Investing in the Fixed Funds The first step for a new or existing investor proposing to invest in a Fixed Fund is to obtain a rate quote from your financial planner. Once you have obtained a quote, if you are a new investor you will need to complete the relevant application form, which accompanies the relevant PDS, before applying to invest in a Fixed Fund. Once your application has been processed you can apply to switch part of your account to a Fixed Fund. Existing investors can invest in the Fixed Funds by applying to switch a minimum of $10,000 from the Cash Fund using the Fixed Fund Switching Notification form available from any of our offices. You may first need to switch your moneys into the Cash Fund in order to invest in a Fixed Fund. You can use the Switching Notification form available from our website or any of our offices to implement this switch. You will need to ensure that all switches to the Cash Fund are completed prior to the relevant processing date. If there are insufficient funds in the Cash Fund on the relevant processing date, then your investment in a Fixed Fund may not be processed. Accordingly, it is recommended that all investors ensure that their forms, applications and quote are lodged with the trustee by 5.00pm Sydney time on the 14th day of the month (or the previous business day if the 14th is not a business day). If your documentation is received after 5.00pm Sydney time on the 14th day of the month, your investment in the Fixed Fund will be processed the following month. If this occurs your funds will remain invested in the Cash Fund until the switch is completed. Your switch may also be processed at a different rate to the one stated on your quote. Please refer to the section on indicative rates and firm rates below. The maximum amount that you can have invested in the Fixed Funds is 60% of your total account balance at the time the switch is processed. You cannot add to an existing investment in a Fixed Fund. However, you can make a new Fixed Fund investment at any time provided the minimum investment amount rules are satisfied in relation to each new investment. You can have up to six (6) different Fixed Fund investments at any one time. Indicative rates and firm rates The rate of return on your investment in the Fixed Term Fund or Fixed Payment Fund is a net rate of return after allowing for fees and costs and taxes if applicable. Fund earnings in the Personal Retirement Plan and Tailored Super Plan are generally taxed at a rate of up to 15%. A provision for this tax is reflected in the rate for investments in the Fixed Term Fund. Information on indicative rates for the Fixed Funds is only available from your financial planner or SSFS and is updated weekly. Your financial planner can provide you with a rate quote which you will need in order to invest in a Fixed Fund. The quote sets out the indicative fixed rate, reset information (if applicable see the Reset feature section below) and the monthly amount payable from your proposed Fixed Term Fund or Fixed Payment Fund investment. The quote is calculated based on the then current indicative rate, the amount you wish to invest and the term you have selected and whether you have chosen a Fixed Term Fund or Fixed Payment Fund investment. Please note that the indicative rate set out in the quote will not necessarily be the rate applied to your investment. The rate you receive on your Fixed Term or Fixed Payment investment is called the firm rate, which may be higher or lower than the indicative rate provided to you in the quote. Visit our website or call for further information 9

12 Additional Information Firm rates are only available on the business day after the close date (i.e. after you submit your Fixed Fund switch form). If the firm rate: is higher than the indicative rate shown on your quote, your Fixed Fund investment will be automatically processed at the higher rate; is less than or equal to 0.25% below the indicative rate shown on your quote, your Fixed Fund investment will be automatically processed at the lower firm rate; is more than 0.25% below the indicative rate, we will contact you to confirm whether you wish to invest at the lower firm rate. If we are unable to contact you by the end of the following business day or you indicate that you do not wish to proceed with the transaction, your Fixed Term Fund or Fixed Payment Fund investment will not be processed and your funds will remain invested in the Cash Fund. For example, if the indicative rate in a quote was 3.5% pa, the investment would be processed if the firm rate was 3.25% pa or higher. However, we would seek to contact you if the firm rate was less than 3.25% pa. You can contact your financial planner or SSFS after the close date to obtain information on the firm rate applicable to your investment. In any event, the firm rate will be shown on the transaction statement sent to you after the switch has been processed. Reset feature From time to time, a reset feature may be available in respect of an investment in the Fixed Term Fund. Broadly, the effect of the reset feature is to apply a higher rate of return to your investment from a fixed reset date if the available rates at that time are higher than the fixed rate that initially applies to your investment. The reset feature will generally only be made available on Fixed Term Fund investments with a 5 year term. The reset feature is not available in the Fixed Payment Fund. If the reset feature is available, it will be notified to you in your rate quote and your rate quote will contain the following information: reset date; and formula for determining the reset rate, in addition to the indicative rate. When your investment commences, your monthly payments will be based on the firm rate. If the reset feature applies to your investment and, on the reset date, the reset rate is higher than the firm rate that applies to your investment, your monthly payments will be calculated using the higher reset rate from that date. However, if the reset rate is lower than the firm rate, the amount of your monthly payments will remain unchanged and will continue to be calculated based on the firm rate. This means your monthly payments may be increased under the reset feature but will not be decreased. A reset can only occur once for each term of a Fixed Term Fund investment and can only occur on the reset date. For example if the firm rate on a Fixed Term Fund investment with a 5 year term was 5.00%, your initial monthly payment would be calculated using the firm rate. If on the reset date, the reset rate is 5.5%, your monthly payment would be calculated using the higher rate (i.e. the reset rate of 5.5%) and would continue at this rate for the remainder of the term. If the reset rate was 4.5% on the reset date then monthly payments would remain unchanged (i.e. the firm rate of 5% would continue to apply). The reset feature is subject to availability and the discretion of the Issuer of the Notes that underpin investments in the Fixed Term Fund. We will notify you in your rate quote of whether the reset feature is available at that particular time. For more information on the reset feature please speak to your financial planner. 10 State Super Allocated Pension Fund Flexible Income Plan Investment Booklet

13 Additional Information Monthly payments For the Fixed Term Fund, monthly payments are calculated on the applicable firm rate divided by twelve (12), the amount invested and the term you have selected. The monthly payment will be the same each month (i.e. the amount will not change based on the number of days in the month). For Fixed Term Fund investments that include the reset feature, the applicable firm rate and monthly payment may be increased during the term (see the Reset feature section above for further information). At the end of the term, your initial investment is available to be invested in accordance with your instructions. Please see Options at Maturity on page 10. For the Fixed Payment Fund, monthly payments are equal to the sum of: (a) the interest component calculated using the applicable firm rate divided by twelve (12), the amount invested for that month and the term you have selected; and (b) repayment of a portion of your initial investment. The same monthly payment will normally be paid every month for the term you have selected (i.e. the amount will not change based on the number of days in the month) At the end of the term, there is no residual initial investment to be returned to you. Your monthly payment (including any initial investment repaid under the Fixed Payment Fund option) will be automatically invested in the Cash Fund within three (3) business days after the 20th day of each month. Account balance The Fixed Funds are non-unitised investment options. This means that the value of your investment does not change in line with changes in unit prices. The value of your investment in the Fixed Term Fund is the dollar value of your initial investment and normally will not change over the term of your investment. The value of your investment in the Fixed Payment Fund is the dollar value of your initial investment reduced each month by the amount of the portion of the initial investment repaid in that month. At maturity, the value of your investment in the Fixed Payment Fund will be zero. Options at maturity Investments in the Fixed Payment Fund do not have a maturity value, as the initial amount invested is repaid throughout the term. Accordingly these maturity options only apply to investments in the Fixed Term Fund. Unless closed earlier, your investment in the Fixed Term Fund will mature on the 20th day of the month at the end of your selected term (maturity date). We will contact you approximately six (6) weeks prior to the maturity of your investment in the Fixed Term Fund to seek your investment instructions on the maturing amount. At maturity, you can reinvest in another Fixed Fund investment or switch to the Cash Fund. If we do not receive instructions from you by 5.00 pm on the 14th day of the month in which your investment matures (or the previous business day if the 14th is not a business day), the maturity value will be switched into the Cash Fund. The transaction will be processed within three (3) business days after the maturity date. Closure before maturity Both you and we have the right to close an investment in a Fixed Fund before maturity. If your investment is closed before maturity, the amount returned may be less than the amount initially invested. This is because the costs associated with redeeming your investment before maturity will be deducted from your investment. Please refer to the fees and costs section on page 8 Visit our website or call for further information 11

14 Additional Information of the Personal Retirement Plan and Allocated Pension Fund Fee Booklet (for the Personal Retirement Plan and Allocated Pension Fund) and page 5 of the Tailored Super Plan and Flexible Income Plan Booklet (for the Tailored Super Plan and Flexible Income Plan). All amounts payable from the early closure of your investment in a Fixed Fund will be automatically switched into the Cash Fund. Closure of an investment in a Fixed Fund by you You can request to redeem your investment in a Fixed Fund at any time. You must redeem the full amount of an individual Fixed Fund investment. If you have other investments in the Fixed Term Fund or Fixed Payment Fund, you can maintain those investments. To be eligible to redeem an investment in the Fixed Term Fund or Fixed Payment Fund in a particular month, we must receive your redemption request by 5.00pm Sydney time on the 14th day of that month (close date) or the prior business day if the 14th day of that month is not a business day. Your request will be processed on the 20th day of the month in which the request was received or, if received after the close date in a month, on the 20th day of the following month. Closure of your account by you If you have a Fixed Fund investment and you wish to close your account, we will firstly redeem your investments in the other Funds and pay you a lump sum (provided you have satisfied a condition of release see the What are the conditions of release? section on page 16 of the Retirement Fund Additional Information Booklet) We will then redeem your Fixed Fund investments in accordance with the procedures described above and pay you the balance of your lump sum (provided you have satisfied a condition of release) or transfer the remainder of your account balance to another superannuation fund. This may mean it takes up to 45 days to finalise the closure of your account. Closure of an investment in a Fixed Fund by us In certain limited circumstances, we may close a Fixed Fund investment before the maturity date. Examples of when we may close a Fixed Fund investment before maturity include: if there are insufficient moneys in your investments in other Funds to fund your pension payments; if we are instructed to split your investment in the Personal Retirement Plan, Allocated Pension Fund, Tailored Super Plan or Flexible Income Plan as described on page 13 of the Retirement Fund Additional Information Booklet; if we are notified of your death and must pay a lump sum benefit to your beneficiaries, as described in the Retirement Fund Additional Information Booklet; in order to make a payment that is more than your total account balance (other than investments in Fixed Funds). If you have multiple Fixed Term Fund or Fixed Payment Fund investments and we are required to close at least one, we will write to you to confirm which of your investments will be redeemed prior to the redemption. Until we receive your confirmation, we will not process your payment request. Generally, we will elect to close the Fixed Fund investment that would result in the lowest early closure cost. We will write to you if your investments in Funds other than the Fixed Funds reduce to 20% of your total account balance to remind you that your Fixed Term Fund or Fixed Payment Fund investment will be redeemed early if there are insufficient moneys to fund any future lump sum withdrawals or pension payments. 12 State Super Allocated Pension Fund Flexible Income Plan Investment Booklet

15 Additional Information Termination of a Fixed Fund We may terminate the Fixed Term Fund, the Fixed Payment Fund or both at any time where required to do so or if we consider it is in the best interests of investors (for example, we may be required to close a Fixed Fund as a result of a change in law or a significant event affecting the value of the Notes in which the Fixed Funds invest). Where a Fixed Fund is terminated, the Authorised Investments underlying the Notes (see page 3 of this Booklet) will be sold, and your entitlement will be recalculated to an amount equal to a fair proportion of the sale proceeds. This may be significantly less than the amount of your initial investment (or the amount you would have received had you closed your investment in the Fixed Fund early). This is because the Authorised Investments may have been sold at a discount. Restrictions on the Fixed Funds The trustee has placed certain restrictions on the use of the Fixed Funds. These include: the Regular Contributions Facility and the Progressive Investment Facility described in the Retirement Fund Additional Information Booklet are not available in respect of investments in the Fixed Term Fund and Fixed Payment Fund. for Personal Retirement Plan and Tailored Super Plan members, when you make additional ad hoc contributions and rollovers, if you do not specify the Fund(s) for investment, we will invest the additional investment in accordance with your existing Fund allocation (other than the Fixed Term Fund) at the time of receipt of the additional investment. pension payments cannot be made from the Fixed Term Fund or Fixed Payment Fund, however, the amount of pension payments will be calculated by reference to your total account balance, including the value of your investment(s) in the Fixed Funds. the maximum amount that you can have invested in the Fixed Funds is 60% of the value of your Personal Retirement Plan, Allocated Pension Fund, Tailored Super Plan or Flexible Income Plan account at the time the switch is processed. You cannot add to an existing investment in a Fixed Fund. However, you can make new Fixed Fund investments. You can have up to six (6) different Fixed Fund investments at any one time. There may be situations where we delay or suspend the processing of switch and early exit and maturity transactions in relation to the Fixed Funds. This could occur, for example where processing of a transaction would adversely affect the interests of others invested in the Fixed Funds. The trustee may vary these restrictions from time to time without notice to you. Processing of investment, withdrawal and switch transactions We generally process investment applications, withdrawals and switch requests involving the Fixed Funds two business days prior to the 20th day of each month, (or the previous business day if this is not a business day). Investments are processed at the firm rates applicable for that month. Fixed Fund investments commence effective the 20th day of each month, even if this day is not a business day. Visit our website or call for further information 13

16 Directory Registry Services GPO Box 5336 Sydney NSW 2001 Brisbane Qld Level 10, 133 Mary Street, BRISBANE PO Box City East QLD 4002 Client Services: Charge Free: Canberra City ACT Northbourne Avenue, BRADDON PO Box 725 Civic Square ACT 2608 Client Services: Charge Free: Canberra Woden ACT Level 1, 10 Corinna Street, PHILLIP PO Box 49 Woden ACT 2606 Client Services: Charge Free: Melbourne Vic Level 16, 440 Collins Street, MELBOURNE GPO Box 2817 Melbourne VIC 3001 Client Services: Charge Free: Perth WA Level 3, 197 St Georges Terrace, PERTH PO Box 5657 Perth WA 6831 Client Services: Toll Free: Sydney Clarence Street NSW Level 9, 83 Clarence Street, SYDNEY GPO Box 5336 Sydney NSW 2001 Client Services: Charge Free: Sydney Pitt Street NSW Level 9, 175 Pitt Street, SYDNEY GPO Box 5058, Sydney NSW 2001 Client Services: Charge Free: Liverpool NSW Level 3, 1 Moore Street, LIVERPOOL PO Box 137 Liverpool NSW 2170 Client Services: Charge Free: Newcastle NSW Level 2, 22 Honeysuckle Drive, NEWCASTLE PO Box 1765 Newcastle NSW 2300 Client Services: Charge Free: Parramatta NSW Level 1, 90 Phillip Street, PARRAMATTA PO Box 966 Parramatta NSW 2124 Client Services: Charge Free: Penrith NSW Level 3, 331 High Street, PENRITH PO Box 1014, Penrith NSW 2751 Client Services: Charge Free: Wollongong NSW Level 4, Keira Street, WOLLONGONG PO Box 349 Wollongong East NSW 2520 Client Services: Charge Free: Central Coast NSW Level 2, 40 Mann Street, GOSFORD PO Box 354 Gosford NSW 2250 Client Services: Charge Free: Mid North Coast NSW 40 Gordon Street, PORT MACQUARIE PO Box 2117 Port Macquarie NSW 2444 Client Services: Charge Free: North West NSW Ground Floor, 17 White Street, TAMWORTH PO Box 297 Tamworth NSW 2340 Client Services: Charge Free: Northern Rivers NSW River Street, BALLINA PO Box 1078 Ballina NSW 2478 Client Services: Charge Free: South West NSW 14 Morrow Street, WAGGA WAGGA PO Box 13 Wagga Wagga NSW 2650 Client Services: Charge Free: Central West NSW 180 Anson Street, ORANGE PO Box 2381 Orange NSW 2800 Client Services: Charge Free: State Super Allocated Pension Fund Flexible Income Plan Investment Booklet

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