OneAnswer Frontier Personal Super and Pension. Fees Guide

Transcription

1 OneAnswer Frontier Personal Super and Pension Fees Guide 1 July 2014

2 Entity details in this guide Name of legal entity Registered numbers Abbreviated terms used throughout the PDS OnePath MasterFund ABN , RSE R , SFN Fund OnePath Custodians Pty Limited ABN , AFSL , RSE L OnePath Custodians, Trustee, us, we, our OnePath Life Limited ABN , AFSL OnePath Life, Insurer Australia and New Zealand Banking Group Limited ABN , AFSL ANZ Important information OneAnswer Frontier Personal Super and OneAnswer Frontier Pension are products offered by the Fund. When you invest in OneAnswer Frontier Personal Super or OneAnswer Frontier Pension, you become a member of the Fund. OnePath Custodians is the trustee of the Fund and is the issuer of this guide. The issuer is a wholly owned subsidiary of ANZ. ANZ is an authorised deposit taking institution (Bank) under the Banking Act 1959 (Cth). Although the issuer of this product is owned by ANZ, it is not a Bank. Except as described in this guide, an investment in OneAnswer Frontier Personal Super or OneAnswer Frontier Pension is not a deposit or other liability of ANZ or its related group companies, and none of them stands behind or guarantees the issuer or the capital or performance of your investment. Your investment is subject to investment risk, including possible repayment delays and loss of income and principal invested. The information provided in this guide is of a general nature and has been prepared without taking into account your objectives, financial situation or needs. Before acting on the advice, you should consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. You should obtain a copy of the PDS for OneAnswer Frontier Personal Super and Pension before making any decision whether to acquire, or continue to hold the product. You can obtain a copy of the PDS by contacting Customer Services on The Fund is governed by a trust deed (Trust Deed). Together with superannuation law, the Trust Deed sets out the rules and procedures under which the Fund operates and the Trustee s duties and obligations. If there is any inconsistency between the Trust Deed and the PDS, or this guide, the terms of the Trust Deed prevail. A copy of the Trust Deed is available from the issuer free of charge. The Trustee invests all contributions in a master life policy issued by OnePath Life which then invests in selected investment funds. This policy is governed by the Life Insurance Act 1995 and is a contract between the Trustee and OnePath Life. OnePath Life is required to conduct its business in accordance with the law and give priority to the interests of policy holders, invest all of the assets it receives from the Trustee in statutory funds approved by the Australian Prudential Regulation Authority (APRA) and comply with the prescribed capital and solvency standards. OnePath Life is also the administrator of the Fund, and it also issues various policies to the Trustee in relation to insurance covers offered to members of OneAnswer Frontier Personal Super. In respect of such policies, the Trustee reserves the right to change the insurer, or vary the benefits or applicable rates from time to time. The Trustee relies on a number of third parties for the provision of specialist services in respect of the Fund. The Trustee is responsible for the content of this guide. ANZ Prime Cash Management Account (ANZ Prime CMA) is a financial product issued by ANZ through OneAnswer Frontier Pension. Before deciding to acquire or hold this ANZ Prime CMA, ANZ recommends you read the relevant terms and conditions contained in the ANZ Savings & Transaction Products Terms and Conditions and ANZ Personal Banking Account Fees & Charges, which are available by calling ANZ on or visiting anz.com In this guide the term financial adviser refers to your financial adviser or the Australian financial services licensee which your adviser represents. 2

3 The following information in this document forms part of the Product Disclosure Statement (PDS) dated 1 July 2014 for OneAnswer Frontier Personal Super and Pension. Its purpose is to give you more information and/or specific terms and conditions referred to in the PDS. You should consider all that information before making a decision about OneAnswer Frontier Personal Super and Pension. If you invest in OneAnswer Frontier Personal Super and Pension, you can access a copy of the PDS, this Fees Guide and any other matter that is applied, adopted or incorporated in the PDS from our website at onepath.com.au. Alternatively, you can request a copy of this information free of charge by contacting Customer Services. The information provided in this Fees Guide is general information only and does not take account of your personal financial situation or needs. You should obtain financial advice tailored to your personal circumstances. Fees and costs This document shows the fees and other costs that you may be charged on your OneAnswer Frontier Personal Super and OneAnswer Frontier Pension accounts. These fees and costs may be deducted from your money, from the returns on your investment or from the assets of the Fund 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. Fees outlined in this document apply to both OneAnswer Frontier Personal Super and Pension except where listed individually. Detailed information about taxes and insurance costs are set out in the OneAnswer Frontier Personal Super and Pension Additional Information Guide. OneAnswer Frontier Personal Super and OneAnswer Frontier Pension have simple fee structures with no upfront fees. You will be charged an Ongoing Fee for your investment and can negotiate a fee for advice with your financial adviser.* You may also be rewarded with an Ongoing Fee rebate as your account balance grows. Ongoing Fees are not payable on ANZ Term Deposit options, ANZ Cash Advantage and ANZ Prime Cash Management Account (ANZ Prime CMA). You should read all the information about fees and costs because it is important to understand their impact on your investment. Fees and costs for particular investment funds are set out on pages 5 and 6 of this guide. The fees, costs and rebates are listed in the Fees and other costs table on the next page. Where a tax deduction is available under the applicable laws in respect of those fees and costs specifically listed in the table on the next page, the benefit of that deduction will be passed on to you. * A reference to financial adviser in this section means your financial adviser or the Australian financial services licensee your adviser represents. 3

4 Fees and other costs Type of fee Amount How and when paid Investment fee Administration fee Buy/sell spread ANZ Term Deposits, ANZ Cash Advantage and ANZ Prime CMA nil Fee range for other investment funds 0.50% p.a. to 2.20% p.a. of the amount invested in each investment fund. Performance fees ranging from 0.30% to 1.33% of outperformance from the relevant benchmark may be payable for some investment funds. Rebates effectively reduce the Investment Fee charged and applies to account balances * over $300,000: Personal Super 0.118% p.a. Pension 0.10% p.a. Applies only to accounts with balances * under $100,000: Personal Super $ p.a. ($115 p.a. after tax) Pension $115 p.a. Up to a maximum of 0.55% of the balance for both the buy and sell This fee (including any applicable performance fee) is deducted from the assets of each investment fund and included in the daily unit price. Rebates are calculated and credited as additional units to your account balance on our about the monthly anniversary of your account. This fee is deducted from your account balance annually on or about the anniversary of your account. A buy/sell spread may be included in the unit price when purchasing or selling units in an investment fund. Switching fee Nil. Not applicable. Exit fee $60 Deducted from your account balance at the time you close your account. Advice fees Relating to all members investing in a particular investment fund. Nil. Not applicable. Other fees and costs This amount may vary depending on the activity Refer to the Additional Explanation of Fees and Costs section of this Fees Guide. Indirect cost ratio Additional costs of alternative assets Estimated to be 0.235% p.a.** based on the highest benchmark allocation to alternative assets applicable to certain OnePath and OptiMix diversified investment funds. In addition, performance fees of up to 20% of the return above the relevant benchmark return may also apply to many of the underlying assets referenced by the swaps. These indirect costs are not an additional fee. Rather they are reflected in the returns payable from the underlying investments and as such are included in the unit price. The fees set out in this table are not negotiable. * Based on an account balance excluding amounts invested in ANZ Term Deposits, ANZ Cash Advantage, OnePath Cash (Personal Super) and ANZ Prime CMA (Pension). Refer to the Additional Explanation of Fees and Costs section of this Fees Guide for details of other fees and costs which apply including insurance fees. ** Indirect costs apply to the portion of the investment fund s assets that are invested in alternative assets. The cost noted in the table is calculated based on the impacted fund with the highest benchmark allocation to alternative assets multiplied by the indirect costs of that portfolio. Actual fees and costs may vary if the allocation to alternative assets is higher or lower than the benchmark allocation. The indirect costs are based on estimates and are therefore subject to change. In addition to the estimated costs noted above, performances fees of up to 20% of the return above the relevant benchmark return may also apply to many of the underlying assets referenced by the swaps. For information about which investment funds this applies to, please refer to page 8 in this Fees Guide. 4

5 Ongoing Fees Personal Super and Pension The following tables list the Ongoing Fees for each investment fund offered through OneAnswer Frontier Personal Super and Pension and included in the unit price. Multi-manager investment funds Investment fund Investor Profile 1 Defensive Ongoing Fee (% p.a.) Single manager investment funds Investment fund Investor Profile 1 Defensive Ongoing Fee (% p.a.) OptiMix Australian Fixed Interest 0.75 ANZ Cash Advantage Nil Investor Profile 2 Conservative OnePath Conservative* 0.80 OptiMix Conservative* 0.90 Investor Profile 3 Moderate OnePath Balanced* 0.90 OptiMix Moderate* 0.95 Investor Profile 4 Growth OnePath Active Growth* 1.10 OnePath Managed Growth* 0.95 OptiMix Balanced* 0.99 OptiMix Growth* 1.00 Investor Profile 5 High growth Property OptiMix Property Securities 0.90 Australian shares OptiMix Australian Shares 1.00 OptiMix Geared Australian Shares 2.20 Global shares OptiMix Global Emerging Markets Shares 1.50 OptiMix Global Shares 1.20 OptiMix Global Smaller Companies Shares 1.55 Multi-sector OnePath High Growth* 1.05 OptiMix High Growth* 1.10 ANZ Prime CMA Nil ANZ Term Deposits Nil Colonial First State Global Credit Income 0.65 Kapstream Absolute Return Income 0.90 OnePath Cash 0.50 OnePath Diversified Fixed Interest 0.75 Schroder Fixed Income 0.85 UBS Diversified Fixed Income 0.98 Vanguard Index Diversified Bond 0.70 Investor Profile 2 Conservative Bentham Global Income 1.30 Goldman Sachs Income Plus 0.95 Perpetual Conservative Growth 1.15 Schroder Real Return 1.00 Vanguard Conservative Index 0.70 Investor Profile 3 Moderate Legg Mason Global Multi Sector Bond 1.20 Schroder Balanced 1.25 UBS Balanced 1.25 UBS Defensive 1.15 Vanguard Balanced Index 0.80 Investor Profile 4 Growth BlackRock Balanced 1.25 BlackRock Scientific Diversified Growth 1.15 OnePath Alternatives Growth 1.30 OnePath Diversified High Yield 0.90 OnePath Tax Effective Income 1.00 Perpetual Balanced Growth 1.20 Vanguard Growth Index

6 Single manager investment funds continued Investment fund Profile 5 High growth Property Ongoing Fee (% p.a.) Investment fund Profile 5 High growth Global shares Ongoing Fee (% p.a.) OnePath Global Property Securities 1.20 OnePath Property Securities 1.00 SG Hiscock Property 1.15 Vanguard Property Securities Index 0.75 Australian shares AMP Capital Responsible Investment Leaders Australian Shares 1.40 Ausbil Australian Emerging Leaders 1.25 Bennelong Australian Equities 0.97 BlackRock Scientific Australian Equity 1.00 BT Core Australian Shares 1.00 BT Smaller Companies 1.32 Colonial First State Imputation 1.00 Fidelity Australian Equities 1.05 Investors Mutual Australian Shares 1.20 Merlon Australian Share Income 1.16 OnePath Australian Shares 1.00 OnePath Blue Chip Imputation 1.05 OnePath Emerging Companies 1.05 OnePath Protected AUS OnePath Select Leaders 1.00 OnePath Sustainable Investments Australian Shares 1.00 Perennial Growth Shares 1.15 Perennial Value Shares 1.00 Perpetual Australian Shares 1.25 Schroder Australian Equity 1.00 AMP Capital Responsible Investment Leaders International Shares 1.45 Arrowstreet Global Equity (Hedged) 1.28 BlackRock Scientific International Equity 1.30 Capital International Global Equities (Hedged) 1.25 Legg Mason Global Value Equity 1.50 Magellan Global 1.35 MFS Global Equity 1.20 OnePath Global Emerging Markets Shares 1.25 OnePath Global Shares 1.15 Platinum Asia 1.98 Platinum International 1.80 T. Rowe Price Global Equity 1.40 Vanguard International Shares Index 0.78 Vanguard International Shares Index (Hedged) 0.78 Walter Scott Global Equity (Hedged) 1.43 Zurich Investments Global Thematic Shares 1.30 Multi-sector Vanguard High Growth Index 0.85 Infrastructure RARE Infrastructure Value 1.40 * This investment fund gains exposure to alternative assets through underlying swap arrangements. For more information about the additional fees and costs applicable to this investment fund, please refer to Fees and Costs associated with exposure to alternative assets on page 8 of this book. This is the Ongoing Fee charged on the net assets of the fund. Assuming a gearing ratio of 50%, this would represent an Ongoing Fee on gross assets of 1.10% p.a. In addition to the Ongoing Fee a performance fee may be payable for this fund. Please refer to Performance fees on page 7 of this guide for further details. Vanguard Australian Shares Index

7 Additional explanation of fees and costs Investment Fees Investment Fees are deducted from the asset of each investment fund and included in the unit price. The investment fee includes the Ongoing Fee which is the Trustee s cost of managing the Fund and the underlying fund manager s Investment Management Fee. In addition, to the Ongoing Fee, performance fees may also be applicable to specific funds (refer to Performance fees on this page). Ongoing Fee rebates may be payable on larger account balances and reduce your investment fee. Investment Management Fees Each investment fund s Investment Management Fee (IMF), charged by the underlying fund manager, includes the fees, charges and some estimated expense recoveries which relate specifically to the management of each investment fund. The IMFs are part of the Ongoing Fees listed in the tables on pages 5 and 6 of this guide. IMFs are an expense of the Fund. They are therefore not a fee or charge of the Trustee. The IMFs are subject to change by the fund manager without notice and can vary over time (refer to Expenses on page 11 of this guide). This may affect the Ongoing Fee and rate of return of an investment fund. Ongoing Fee rebate An Ongoing Fee rebate applies to account balances over $300,000 thereby reducing the Ongoing Fee payable. Personal Super A rebate of 0.118% p.a. (0.10% p.a. after tax) is applied to amounts over $300,000 (excluding investments in ANZ Term Deposits, ANZ Cash Advantage and OnePath Cash). Pension A rebate of 0.10% p.a. is applied to amounts over $300,000 (excluding investments in ANZ Term Deposits, ANZ Prime CMA and ANZ Cash Advantage). The rebate is credited as additional units to your account on or about the monthly anniversary of your account. It is calculated based on your account balance at that date. Example: How an Ongoing Fee rebate is calculated Anthony has the following investments in OneAnswer Frontier Pension: ANZ Cash Advantage $30,000* OnePath Balanced $140,000 OnePath Australian Shares $160,000 OptiMix Moderate $60,000 SG Hiscock Property $60,000 Total account balance $450,000 The Ongoing Fee rebate is calculated as follows: Account balance First $300,000 Amounts over $300,000 Total rebate Rebate calculation $300,000 x 0.00% p.a. $120,000 x 0.10% p.a. Ongoing Fee rebate $0 $120 $120 p.a.* ($10.00 per month) * The balance of ANZ Cash Advantage is excluded from the calculation of the Ongoing Fee rebate. Note: This example is illustrative only and should not be regarded as a forecast for your investment, nor regarded as indicative of future performance. Performance fees Performance fees are currently applicable for the following investment funds: Ausbil Australian Emerging Leaders OnePath Alternatives Growth RARE Infrastructure Value Magellan Global. We do not charge performance fees directly; however, performance fees may be payable from the underlying investment fund to the fund manager. The fund manager may charge a performance fee if the underlying investment fund outperforms the relevant investment benchmark. The relevant benchmarks and performance fees are noted on the next page. 7

8 Benchmark Performance fee Actual performance fee as at 30 June 2013* (% p.a.) Ausbil Australian Emerging Leaders 70% S&P/ASX Midcap 50 Accumulation Index and 30% S&P/ ASX Small Ordinaries Accumulation Index OnePath Alternatives Growth UBS Bank Bill Index RARE Infrastructure Value An accumulation index comprising the OECD G7 Inflation Index plus 5.5% per annum Magellan Global Dual Hurdle of the MSCI World Net Total Return (AUD) ( Index Relative Hurdle ) and the yield of 10-year Australian Government Bonds ( Absolute Return Hurdle ) 15% of outperformance above the benchmark (exclusive of fees) % of outperformance above the benchmark 10.25% of the investment returns made in excess of the benchmark, subject to a high water mark 10% of the excess return above the higher of the Index Relative Hurdle and the Absolute Return Hurdle over each 6 monthly period ending 31 December and 30 June * Past performance is not indicative of future performance. The performance fee payable may differ from year to year. Exclusive of Goods and Services Tax (GST) and any entitlement to a Reduced Input Tax Credit (RITC). If a period of underperformance to the benchmark occurs, the performance fee accrued is frozen at its current level and further performance fees do not start accruing again until the full amount of underperformance is recouped. For example, for every $1,000 you have invested in the Ausbil Australian Emerging Leaders fund, a $11.20 performance fee will be charged for the year ending 30 June The performance fee will not exceed 0.3% of the net asset value of the fund in any year. Performance fees are reflected as a reduction in the returns generated by the underlying fund and, therefore, in the value of your investment in the applicable investment fund. The performance for Ausbil Australian Emerging Leaders fee is accrued daily and drawn monthly in arrears. Each unit price of the underlying fund reflects accrued performance fees. The performance fee for RARE Infrastructure Value, Magellan Global and OnePath Alternatives Growth is accrued daily and deducted half-yearly within the unit price and for Ausbil Australian Emerging Leaders is deducted monthly in arrears. OptiMix investment funds Performance fees (other than in relation to alternative asset exposure achieved through underlying swap arrangements) may apply for certain OptiMix investment funds. Performance fees are paid only if the underlying fund managers meet specified performance targets. Any such performance fees are deducted from the Ongoing Fee for the applicable OptiMix investment fund. They do not represent an additional charge to investors. Indirect cost ratio Indirect costs apply to the portion of certain OptiMix and OnePath diversified investment fund assets that are invested in alternative assets. The indirect cost ratio (ICR) for these investment funds is the ratio of total indirect costs, to the total average net assets of those investment funds. Fees and Costs associated with exposure to alternative assets The following investment funds have an exposure to alternative assets through underlying swap (Swap) arrangements: OptiMix Balanced OptiMix Conservative OptiMix Growth OptiMix High Growth OptiMix Moderate OnePath Active Growth OnePath Balanced OnePath Conservative OnePath High Growth OnePath Managed Growth. For these investment funds, additional fees and expenses apply in relation to the portion of the investment fund s exposure to alternative assets through the underlying Swaps. These are estimated to be 0.235% p.a.* based on the fund listed above with the highest benchmark allocation to alternative assets (currently OnePath Managed Growth and OptiMix Balanced). These fees and expenses may be higher or lower for some investment funds depending on the actual allocation to alternative assets. For more information on asset allocations and benchmarks refer to page 21 of the OneAnswer Investment Funds Guide. The total fees and expenses are calculated by multiplying the fund s exposure to alternative assets by the investment fund s Swap Service Fees and the transaction charges and management fees charged by the managers of the underlying assets referenced by the Swaps. These fees and charges are as follows: Swap Service Fees these are the fees and expenses (including fees and expenses relating to custody, administration, advice and research) payable to the Swap counterparty in return for it providing the Swaps. Currently, the Swap Service Fees equate to 0.18% p.a. of the value of the underlying alternative assets and cash referenced by the Swaps and are therefore reflected in the returns payable under the Swaps. 8

9 Transaction charges and management fees these are charged by the managers of underlying assets referenced by the Swaps. These fees and charges are built in to the value of the assets referenced by the Swaps and are accordingly reflected in the returns payable under the Swaps. This means that investment returns produced from the Swaps are net of all applicable fees and charges. Management fees for alternative assets vary from manager to manager. Typically however, these fees range between 0.25% to 2.50% p.a. of the value of the relevant alternative asset. Performance fees of up to 20% of the return above the relevant benchmark return apply to many of the underlying assets. The percentages and benchmarks vary considerably between different assets, and will depend on the individual arrangements with the underlying managers of the assets that are selected by us for inclusion in the basket or portfolio referenced by each Swap. * These indirect costs are based on estimates and are therefore subject to change. Administration fee An administration fee (Member Fee) is an account keeping fee that applies where an account balance is under $100,000. Personal Super A fee of $ p.a. ($115 p.a. after tax) applies where your total account balance (excluding investments in ANZ Term Deposits, ANZ Cash Advantage and OnePath Cash) is under $100,000. Pension A fee of $115 p.a. applies where your total account balance (excluding investments in ANZ Term Deposits, ANZ Cash Advantage and ANZ Prime CMA) is under $100,000. For investments solely in OnePath Cash (Personal Super), ANZ Prime CMA (Pension), ANZ Cash Advantage and ANZ Term Deposits this fee will not apply. The fee will be deducted on an annual basis on or about the date corresponding to the commencement date of your account, or pro-rated upon full withdrawal from your OneAnswer Frontier Personal Super or OneAnswer Frontier Pension account. Member fee waiver Where you hold multiple OneAnswer Frontier accounts you may request that the Member Fee be waived on these accounts if their combined value exceeds $100,000* on the date the request is received by us at our registered office. * Excluding investments in OnePath Cash (Personal Super and Investment Portfolio), ANZ Prime CMA (Pension only), ANZ Term Deposits and ANZ Cash Advantage. Exit Fee An Exit Fee of $60 will be charged when you close your account. This fee is charged to cover the administration costs of closing your account. Switching fees There are currently no investment switching fees charged for switching between any of the investment funds. Transaction cost factors (buy/sell spreads) Transaction costs are additional costs incurred when buying and selling investment fund assets. These transaction costs include brokerage, stamp duty and costs incurred when buying and selling units in investment funds. A transaction cost factor (buy spread) may be included in the unit price used to buy units in an investment fund to allow for some or all of the costs of buying assets. Similarly, a transaction cost factor (sell spread) may be included in the unit price used to sell units in an investment fund, to allow for some or all of the cost of selling assets. Transaction cost factors are currently up to 0.55% and may apply when calculating buy (issue) and sell (redemption) unit prices. The transaction cost factors that apply are based on an estimate of the transaction costs incurred by the investment fund. These costs are deducted by us and paid to the underlying fund. They are an additional cost paid by you at the time of the transaction. The transaction cost factors for each investment fund are available at onepath.com.au > Performance & updates or by contacting Customer Services. For example, for every $1,000 that you invest in the Vanguard Growth Index fund, the estimated transaction cost that is incurred is 0.15% or $1.50. This amount is reflected in the buy unit price at the time of your transaction. Note: If a transaction cost factor applies to an investment fund, then it will apply when switching, including as a result of auto-rebalancing or dollar cost averaging. Financial adviser payments Adviser Service Fees You may agree on an optional Adviser Service Fee (ASF) with your financial adviser. If you agree to an ASF for your financial adviser s services in relation to your investment, you consent to OnePath Life deducting this GST-inclusive amount from your account and paying the ASF amount nominated to your financial adviser. You choose whether the fee will be deducted by redeeming units across all your investment funds or by redeeming units from one nominated investment fund. You cannot nominate an ANZ Term Deposit as the fund from which the ASFs are deducted. However, your investment in an ANZ Term Deposit will be included in the total account balance when calculating a percentage based ASF. You cannot nominate a percentage based ASF if the account balance is funded from borrowed money. The amount your financial adviser receives will generally include GST. OnePath Life has a separate contractual arrangement with your financial adviser, as agreed with the 9

10 Trustee. Where you agree an ASF, OnePath Life is obligated to pay your financial adviser the ASF under this arrangement and we will charge an equivalent amount to your account. Where a tax deduction is available under the applicable laws to OnePath Life in respect of the ASF paid for a period, the benefit of that deduction will be passed on to you and reflected in your account balance. If you fully withdraw from your account before you receive the benefit of this deduction for a relevant period, you will not receive the benefit of this deduction. At our discretion OnePath Life may decline to deduct any of these fees. There are two ways you can choose to have this fee paid: One-off Adviser Service Fee This fee may be charged on a one-off basis as a set dollar amount or as a percentage of either: your investment at the time of your initial or additional investment your total account balance at any other time. Where this fee is being charged at the time of your investment, it will be deducted after your investment has been processed. Ongoing Adviser Service Fee This fee may be charged on an ongoing basis as a percentage of your account balance or as a set dollar amount per annum. This fee will be calculated at the date it is deducted from your account balance on or about the date of the month that your account commenced. You can choose to have this deducted from your account on a monthly, quarterly, or annual basis. You can terminate this fee at any time by notifying us in writing. Other financial adviser payments OnePath Life may make payments to dealer groups, financial advisers or other third parties based on commercial arrangements that OnePath Life has with these parties. These payments may in some cases be made to related entities. The types of payments include payments to enable educational support and practice development services for advisers and payments to third parties to distribute our products. These payments are made by us and not charged to you or your OneAnswer Frontier account. Insurance fees The costs associated with insurance cover are called insurance fees (insurance premiums). Insurance premiums for any life insurance cover offered through OneAnswer Frontier Personal Super are debited from your account monthly in arrears, on or about the date corresponding to the commencement date of your account. A minimum annual premium of $150 applies. You choose whether the premium will be deducted by redeeming units across all your investment funds or by redeeming units from one nominated investment fund. Insurance premiums cannot be deducted from ANZ Term Deposits. For more information on the cost of the life insurance offered through OneAnswer Frontier Personal Super, see the section Insurance in your Super in the OneAnswer Frontier Personal Super and Pension Additional Information Guide. Insurance commission If you have basic insurance cover issued through your OneAnswer Frontier Personal Super account, a level commission of up to 27.5% p.a. (inclusive of GST) may be payable by OnePath Life to your financial adviser (or the Australian Financial Services Licensee they represent) and you may be able to negotiate this with them. A reduced rate of commission will reduce the premium charged. You should contact your financial adviser for further details regarding the negotiated rate of commission. If you have customised insurance cover issued through your OneAnswer Frontier Personal Super account, the actual commission payable to your financial adviser (or their organisation) will depend upon the financial arrangement you have with your financial adviser and the type of commission selected: Level commission up to 27.5% p.a. is payable to your financial adviser as commission. You may be able to negotiate this with them. Hybrid commission 70% of your annual premium is paid to your financial adviser in the first year as commission and 17% p.a. is paid in the second year and each year thereafter. Upfront commission 100% of your annual premium is paid to your financial adviser in the first year as commission and 9% p.a. is paid in the second year and each year thereafter. The commission amounts quoted above are inclusive of GST. Any insurance commission is included in your insurance premium and is not an additional cost to you. 10

11 ANZ Prime CMA Fees and charges may apply (including non-anz operator fees, overseas ATM fees and overseas transaction fees). Please refer to ANZ Personal Banking Account Fees and Charges for fees and charges that apply. ANZ Prime CMA is subject to the terms and conditions contained in the ANZ Savings and Transactions Products Terms and Conditions. These are available from any ANZ branch or online at anz.com Other fees and additional information Goods and Services Tax Your contributions into and transfers or withdrawals from this product are not subject to GST. The fees and costs incurred in managing your investment in this product may be subject to GST. The fees and costs disclosed in this PDS are stated inclusive of any applicable GST less any entitlement to a RITC except for the ASF which is stated inclusive of GST. Where alternative asset exposure is obtained through underlying swap (Swap) arrangements, the Swap Service Fee ranges disclosed in this PDS include any applicable GST. If RITCs are available on fees and costs incurred in relation to the Swaps, these will be reflected in the returns payable under the Swaps. Family law fees Please note, that the Trustee may charge for some costs incurred in attending to enquiries and/or other work in relation to family law and superannuation matters. Currently, we do not charge such fees. We will advise you of any change to this position. Dishonour fee A fee of $11.76 is charged to your OneAnswer Frontier Personal Super account where any payment made by direct debit is dishonoured (for example, insufficient funds are available in the account debited). Processing fee Your financial institution may charge a processing fee each time you make a contribution using the Regular Investment Plan. This amount will vary depending on your financial institution. Government charges Any additional costs resulting from any government charges will be paid from your OneAnswer Frontier Personal Super account. Alterations to fees We reserve the right to change any of our fees and charges from their present levels, without your consent. Any increase will only take effect after the Trustee has provided you with 30 days written notice. The IMFs may be altered by the fund manager at any time. The fees contained in this guide are up to date at the time of its preparation. For updated information please visit our website at onepath.com.au Expenses The Ongoing Fees of the investment funds managed by external fund managers include the IMF (fees, charges and some expense recoveries) of the underlying fund managers, advised to us at the time of writing. The IMF may change in the future and this may affect the rate of return of your investment. We disclose details of Ongoing Fees on the OnePath website in the relevant disclosure documents and will notify members via the website of any pending or future increases or decreases. Before making an investment decision, members should refer to the website in conjunction with this guide to determine the costs that will be applicable to their investment funds. In addition to the IMF, underlying fund managers may incur expenses which they are able to recover from the underlying fund. These expenses may vary over time, can change without notice and will be passed on to members. These may affect the return of an investment fund. We will communicate these changes to members within a reasonable time frame if and when we are made aware of these changes. In certain circumstances this may be after these expenses have already been passed through to members. Where alternative asset exposure is obtained through underlying Swap arrangements, the investment returns produced from the Swaps are net of all applicable fees and expenses. For further information about the underlying Swap arrangements, please refer to OptiMix and OnePath investment funds alternative asset exposure in the OneAnswer Investment Funds Guide. Indirect expenses Expenses may be incurred within each underlying investment fund for the administration and management of the underlying investment fund. These expenses include abnormal costs and operating expenses relevant to the underlying investment fund. Other charges The Trust Deed of the OnePath MasterFund permits the Trustee to be reimbursed from the Fund assets for all costs, charges, expenses and outgoings reasonably and properly incurred by the Trustee in connection with the performance of its duties or the exercise of its rights, powers, administration or termination of the Fund. 11

12 Payments from underlying fund managers and related parties We may receive a fund manager payment from underlying fund managers based on funds under management. These amounts are already considered when we determine the fees and charges for each investment fund. These payments come from each fund manager s resources and are not an additional fee to you. These fund manager payments are up to a maximum of 0.75% p.a. of funds under management in the relevant underlying fund. We may receive a financial payment or a non-financial benefit from ANZ in relation to amounts held in ANZ Cash Advantage or in relation to investing in ANZ Term Deposit options with ANZ. These payments are not an additional charge to you. Where alternative asset exposure is obtained through underlying Swaps, we do not receive a fund manager payment from the underlying managers of the alternative assets. For further information about the underlying Swap arrangements, please refer to OptiMix and OnePath investment funds alternative asset exposure in the OneAnswer Investment Funds Guide. Suspended funds * Applications, switches and withdrawals are suspended until further notice for the following investment funds (suspended funds) offered through OneAnswer Frontier Personal Super and OneAnswer Frontier Pension: AMP Capital Enhanced Yield Challenger Howard Mortgages OnePath Income Plus OnePath Mortgages. If you have allocated units in one or more of the suspended funds via OneAnswer s Personal Super or Pension accounts you may, in certain circumstances, and if agreed to by us, be permitted to transfer your holdings in these funds to OneAnswer Frontier Personal Super and OneAnswer Frontier Pension in the equivalent investment funds. This section details Ongoing Fees specific to the suspended funds. Other fees may apply as detailed in this guide. Up to date information regarding the suspension of funds is available at onepath.com.au > Personal > Performance & updates or via the Fund s Annual Report. Ongoing Fees Investment fund Profile 1 Defensive Ongoing Fee (% p.a.) Challenger Howard Mortgages 1.05 OnePath Mortgages 0.95 Profile 2 Conservative AMP Capital Enhanced Yield 1.25 OnePath Income Plus 0.95 * The suspended funds listed in this section are only available to members already invested in the funds transferring their investment between OneAnswer s Personal Super and Pension accounts. MoneyForLife funds MoneyForLife investments are closed to new investors. If you have allocated units in MoneyForLife investment funds in a OneAnswer Personal Super or OneAnswer Frontier Personal Super account you may, in certain circumstances, and if agreed to by us be permitted to transfer your holdings in these funds to OneAnswer Frontier Pension. This section details Ongoing Fees specific to the MoneyForLife investment funds. Investment fund Profile 2 Conservative Ongoing Fee (% p.a.) MoneyForLife Index Conservative 0.75 Profile 3 Moderate MoneyForLife Index Balanced 0.85 MoneyForLife Index Moderate

13 Defined Fees Activity fee A fee is an activity fee if it relates to costs incurred by the Trustee that are directly related to an activity of the Trustee that is engaged in at your request or with your consent or that relates to you and is required by law (and 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 fee An administration fee is a fee that relates to the administration or operation of the Fund and includes costs incurred by the Trustee which relate to the administration or operation of the Fund (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 fee A fee is an advice fee if it relates directly to costs incurred by the Trustee because of the provision of financial product advice to you by the Trustee or another person acting as an employee of, or under an arrangement with, the Trustee (and 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 in relation to the sale and purchase of assets of the Fund. Exit fees An exit fee is a fee to recover the costs of disposing of all or part of your interests in the Fund. Investment fee An investment fee is a fee that relates to the investment of the assets of the Fund and includes: fees in payment for the exercise of care and expertise in the investment of those assets (including performance fees) and costs incurred by the Trustee which relate to the investment of assets of the Fund and that 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 fee A switching fee is a fee to recover the costs of switching all or part of your interest in the Fund from one investment option to another. Insurance fee A fee is an insurance fee if: a. the fee relates directly to either or both of the following: i. insurance premiums paid by the trustee, or the trustees, of a superannuation entity in relation to a member or members of the entity; ii. costs incurred by the trustee, or the trustees, of a superannuation entity in relation to the provision of insurance for a member or members of the entity; and b. the fee does not relate to any part of a premium paid or cost incurred in relation to a life policy or a contract of insurance that relates to a benefit to the member that is based on the performance of an investment rather than the realisation of a risk; and c. the premiums and costs to which the fee relates are not otherwise charged as an administration fee, an investment fee, a switching fee, an exit fee, an activity fee or an advice fee. Indirect cost ratio The indirect cost ratio (ICR), for an investment option offered by the Fund, is the ratio of the total of the indirect costs for the investment option, to the total average net assets of the Fund attributed to the investment option. 13

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16 Customer Services Phone weekdays between 8.30am and 6.30pm (AEST) Adviser Services (For use by financial advisers only) Phone Address and Trustee contact details OneAnswer GPO Box 5306 Sydney NSW Pitt Street Sydney NSW 2001 OnePath Custodians Pty Limited ABN AFSL RSE L L7242/0714 onepath.com.au