Secondary Disclosure Statement (Authorised Financial Adviser)

Secondary Disclosure Statement (Authorised Financial Adviser) Name and registration number of Authorised Financial Adviser: Stephen Charles Benton - FSP 21401 Address: Physical Address: Level 1, 567 Wairakei Road, Harewood, Christchurch 8053 Postal Address: P O Box 39 100, Harewood, Christchurch 8545 Trading name: Rede Advisers Limited Telephone number: 03 964 4209 Fax number: 03 357 0008 Email address: steve_benton@rede.co.nz This disclosure statement was prepared on: 11 October 2013 This disclosure statement was updated from previous versions dated 30 June 2011,8 August 2011 & 16 July 2013 My Experience and Qualifications I have been a financial adviser for almost 20 years and give financial and investment planning advice. After leaving Canterbury University I entered the finance and banking industry in 1982. I specialised in business and corporate finance, serving in a variety of executive management roles for a leading multinational financial institution. My corporate finance background has assisted me in building a very successful business with strong relationships with the legal and accounting profession and with human resources companies specialising in restructuring and outplacement. I have gained an extensive knowledge of the workings of corporate superannuation including the GSF and NPF. Rede Advisers Limited (previously HFK (Rutherford Rede) Ltd) is a private, limited liability company providing comprehensive financial planning advice. It has been in business since November 2003. Michael Shears and I are the sole Directors of Rede Advisers Limited. Prior to the formation of this company, I was a director and shareholder of Rutherford Rede (Christchurch) Ltd for ten years. My relevant qualifications include: Diploma in Business Studies (endorsed in Personal Financial Planning) obtained in 1995 Advanced Issues in Insurance & Business Insurance papers from Massey University in 2010 I also earned Certified Financial Planner CM status in 1997, Chartered Life Underwriter status in 2010 and Authorised Financial Adviser status in 2011. I keep my qualifications up-to-date through continuing education (consisting of seminars, technical briefings, product accreditation and conference workshops) for a minimum of twenty hours per year and sixty hours of continuing professional development every two years. This includes keeping up-to-date with changes to the Code of Professional Conduct for Authorised Financial Advisers and relevant consumer laws such as the Fair Trading Act and the Consumer Guarantees Act. Professional Bodies I am a member of the Institute of Financial Advisers and, as a condition of my membership I adhere to the IFA Code of Ethics and IFA Practice Standards in all facets of my practice. Professional Indemnity Insurance I have professional indemnity insurance which covers all my areas of practice as listed above. The underwriter is Lumley General Insurance (NZ) Ltd. As with all insurance, this cover has limitations and is subject to certain exclusions and terms and conditions. This insurance provides protection for clients for: any error or omission; defamation; employee dishonesty; and includes full "prior acts" protection. Secondary Disclosure Statement Steve Benton, Rede Advisers Ltd version 4 dated 11 October 2013 Page 1 of 6

How I Operate When I give advice I follow the internationally recognised six-step process: 1. Establishing the client-adviser relationship, 2. Gathering client data and determining your goals and expectations, 3. Analysing and evaluating the client's financial position, cash and debt management, personal and business insurance, retirement planning, estate and tax, and/or investment needs, 4. Developing and presenting our written advice, 5. Overseeing the implementation of the plan, and 6. Monitoring and reviewing the plan. This can require a series of meetings with a prospective client before our advice is finalised. It also means I maintain a close ongoing relationship with clients, regularly reviewing progress and working with them over time to ensure that goals can be met. The services I provide will depend on your needs. They may include any or all of those detailed in this Disclosure Statement. My advice will take account of your personal objectives, financial situation and needs. It will be clear and concise, with enough detail for you to make an informed decision about whether to act on it. Services and Products I Provide I provide the following types of financial adviser services: Limited discretionary investment management services Investment planning services I provide financial advice in the following subject areas: Cash/Debt Management Estate Planning Risk Management Retirement Planning Taxation Investment Advice Income and expenditure analysis, analysis of debt, restructuring and amortisation advice. General advice on asset ownership, establishment and ongoing management of Trusts provided in association with an accountant / legal adviser. Analysis of financial exposure relative to mortality, disability, liability and casualty. Including projection of future capital values, analysis of superannuation programme benefits, corporate and individual KiwiSaver advice, regular saving requirement analysis. Advice on the use of tax-effective investments, held appropriately by individuals/entities provided in association with tax adviser. Security and portfolio analysis, risk and return profiling, specific investment recommendations and ongoing review. The financial adviser services I provide are in relation to the following financial products: Cash Management Risk(Insurance) Management Retirement Planning Taxation Investment Advice On-Call cash manager accounts and short-term bank deposits. Life, Total and Permanent Disability (TPD), Trauma, Income Protection and Medical insurance. KiwiSaver, superannuation schemes, managed investment portfolios. General advice on taxation in relation to investments and insurance. Identification and provision of (listed and unlisted) fixed interest and equity securities both directly and via Portfolio Investment Entities (PIEs) and managed portfolios. I also provide an investment planning service to clients if required. I only give advice in the particular subject areas set out above. Secondary Disclosure Statement Steve Benton, Rede Advisers Ltd version 4 dated 11 October 2013 Page 2 of 6

Other Interests and Relationships Rede Advisers Ltd maintains contractual relationships (agency agreements) with the financial institutions detailed below. These agency relationships do not prevent Rede Advisers Ltd advising on, or placing investment/insurance products with, any other suppliers. AIA (NZ) Ltd Grosvenor Financial Services Group PM Capital Ltd ANZ Investments Ltd Heartland Bank Rothschild Bank AG (Zurich) Asteron Life Ltd Hunter Hall Investment Mgmt Sentinel Ltd Bank of New Zealand Lincoln Road Syndicate Ltd Shopping Centre Investments Ltd Barclays Global Investors (ishares) Liontamer Investments Southern Cross Berkshire Hathaway Magellan Asset Management Ltd Southern Finance Ltd BT Funds Management Ltd Main South Investments Ltd Sovereign Assurance Ltd Fidelity Life Assurance Company MAN Investments TMIL First NZ Capital MLC Investments Ltd TriMax Assurance Services Ltd Fisher Funds Management Ltd One Path (NZ) Ltd UDC Finance Ltd Goldman Sachs JB Were Ltd Platinum Asset Management Ltd Vanguard Investments Australia Rede Advisers Ltd will not receive any additional monetary benefits from product suppliers not already clearly identified in standard fee schedules or publicly disclosed in a clear and identified manner. Rede Advisers Ltd may however receive additional non-monetary considerations such as training courses, functions, entertainment and office supplies (notepads, pens etc). These non-monetary considerations are deemed minor by the directors and will not influence recommendations. These rewards vary from entity to entity and from time to time. It is at the discretion of Rede Advisers Ltd whether any or all of the above financial and non-monetary rewards are accepted. On request, Rede Advisers Ltd can provide the current financial and non-monetary rewards available from the entities being recommended. I am not required to place any level of business with any supplier or financial organisation. I have relationships with the following organisations: Grosvenor Financial Services Group Ltd (GFSG) GFSG is a privately owned company providing investment research, portfolio administration, technology solutions, software and marketing services to Rede Advisers Ltd. Both Michael Shears and I have minority shareholdings in GFSG, from which we may receive dividends from time to time. I am a director of GFSG and some of GFSG s subsidiary companies representing advisers who use the system and receive director fees for services provided to them. Michael Shears is a member of the Grosvenor Adviser Investment Committee, which monitors Grosvenor s investment management activities on behalf of all advisers, for which he receives an attendance fee. TriMax Assurance Services Ltd (TriMax) TriMax is a privately owned company that provides a range of risk protection (insurance) products. Rede Advisers Ltd has a minority shareholding in TriMax from which it may receive dividends from time to time. HFK Ltd (HFK) HFK is a chartered accounting practice providing accounting and taxation services to business and personal clients throughout New Zealand. HFK Ltd provides some administration services and office space to Rede Advisers Limited on a sub-tenant basis. HFK and Rede Advisers Limited work closely together and have a number of mutual clients. HFK Ltd has a minority equity holding in Rede Advisers Limited. Rede Advisers Ltd has additional relationships with the following companies whose services or software Rede Advisers Ltd may utilise to assist in providing investment or insurance advice or services to our clients: Secondary Disclosure Statement Steve Benton, Rede Advisers Ltd version 4 dated 11 October 2013 Page 3 of 6

Craigs Investment Partners Forsyth Barr Ltd Strategy Financial Services Ltd First NZ Capital Macquarie Private Wealth Rede Advisers Ltd may also utilise software and research provided by the financial institutions with which Rede Advisers Ltd places business with, in addition to publicly available information related to the ratings of insurance companies, investment companies and other financial organisations. To the best of our knowledge and belief Rede Advisers Ltd is not aware of any other existing or potential conflicts of interest which could impair our impartiality and objectivity as providers of professional services and financial advice. If we do become aware of such conflict before you purchase any products or services we will inform you as soon as we become aware. I do not have any preferential terms (other than those readily offered to other market participants) or production performance agreements with any particular product provider. I do not have any other financial or other relationship with any other person that would be reasonably likely to influence me in giving advice, except as described above. Fees The fees I charge will vary according to the nature of the services provided. A Fees payable to Rede Advisers Ltd, for advice and service in respect of your investments. Outlined are all possible fees. Actual fees payable by you will be detailed and agreed to before any investments are placed. Plan Writing Fee covers meetings, analysis of your financial position, recommendation of strategies and investments, and preparation of a written plan. An estimate of time will be provided at the time we meet before preparing a plan. This is calculated at $175.00 per hour, is subject to GST, and is not tax deductible. Implementation Fee covers the implementation of the portfolio. Typically it will represent around 1.00% of the assets invested and there is a minimum fee for smaller portfolios. Where an implementation fee is charged, no entry fees (normally paid to your adviser) are charged. This is not subject to GST, and is not tax deductible. Adviser Portfolio Fee 0.50% per annum calculated on the value of managed portfolios held in the Grosvenor Managed Investment Account. Fees are calculated daily but are deducted directly from the portfolio monthly. This fee covers investment advice, portfolio and product review, performance reporting and reviews. This is subject to GST, and fully tax deductible. Tax and Custodial Administration Fee/Adviser Service Fee a fee levied annually for services in relation to your advisers role in acting as Power of Attorney and addressee for investments, forwarding documentation as appropriate and preparing consolidated tax worksheets summarising year-end details of income and tax. This fee is fully tax deductable and has no GST if levied through the Grosvenor Wrap Service Estate Transfer Fee at the discretion of your adviser, an estate transfer fee is chargeable up to 0.50% of the portfolio value, to be deducted from the portfolio before transfer. I estimate that the fees you will need to pay me will be: Plan Writing Fee Hourly fee of up to six hours @ $175.00 plus GST Implementation Fee Up to 1.00% of the funds invested Ongoing Fee Income Solutions 0.50% per annum of average funds invested Ongoing Fee Growth Solutions 1.00% per annum of average funds invested The plan writing fee will be agreed to at the time the Scope of Service is agreed to. A supplementary secondary disclosure of specific initial and ongoing fees and remuneration will be set out in our plans. If it becomes apparent that this fee estimate is likely to be exceeded I will provide you with a further fee estimate at this time. You will need to pay this fee by the 20 th day of the month following an invoice being sent. Secondary Disclosure Statement Steve Benton, Rede Advisers Ltd version 4 dated 11 October 2013 Page 4 of 6

B Fees payable to Grosvenor Investment Management Ltd, for the management of your investments. These all inclusive fees covers transaction charges, research, asset allocation, selection of securities, investment due diligence and monitoring, portfolio (PIE) establishment and adjustments, investment management, report development, preparation of annual taxation statements and administration services. These fees are calculated on a daily basis and deducted monthly from the portfolio. These fees are fully tax deductible and deducted from the portfolios before calculation of PIE tax. The net cost therefore varies depending on your personal PIE tax rate. For example: Balanced Portfolio (PS3): Gross fee of 2.14% = Net fee of 1.54% after deduction of 28% PIE tax. MANAGED INVESTMENT ACCOUNT (MIA) - GROWTH SOLUTION FEES * AMOUNT INVESTED: DEFENSIVE CONSERVATIVE BALANCED GROWTH HIGH GROWTH PS 1 PS2 PS3 PS4 PS5 0 - $250,000 1.65% 1.90% 2.14% 2.30% 2.35% $250,000 - $500,000 1.35% 1.68% 1.95% 2.10% 2.15% $500,000 - $1,000,000 0.88% 1.31% 1.54% 1.66% 1.77% $1,000,000 + 0.80% 1.21% 1.38% 1.50% 1.60% * A trustee fee of 0.04% is also payable for providing safe custody of clients investments. PERSONAL INVESTMENT ACCOUNT (PIA) & INCOME INVESTMENT ACCOUNT (IIA) - INCOME SOLUTION FEES PORTFOLIO: MANAGEMENT & TRUSTEE FEE: * Enhanced Cash Portfolio (ECP) - 0.40% plus 0.04% trustee fee - 0.44% total. * Income Securities Portfolio (ISP) - No fee payable covered under swap agreement. * Corporate Bond Portfolio (PCB) - 0.80% plus 0.04% trustee fee - 0.84% total. * Income Focus Portfolios (PIF) - (PIF 18, PIF28 or PIF50) - 1.00% plus 0.04% trustee fee - 1.04% total. No entry or exit fee is payable to Grosvenor. All fees are subject to change on 30 days notice. PERSONAL INVESTMENT ACCOUNT (PIA) FEES CASH AMOUNT INVESTED: NZ FIXED INTEREST SECURITIES NZ / AUSTRALIAN SHARES & MANAGED FUNDS GLOBAL SHARES, ETFs & LISTED INVSTMNT TRUSTS 0 - $250,000 0.40% 0.20% 0.45% 0.65% $250,000 - $500,000 0.30% 0.20% 0.45% 0.65% $500,000 - $1,000,000 0.20% 0.20% 0.45% 0.65% $1,000,000 + 0.10% 0.20% 0.45% 0.65% Fees for securities held in custody in the PIA. These exclude fees and charges that are part of the investments that the client wishes to hold (i.e. managed fund fees and expenses, or any entry or exit fees of the managed funds). Usual brokerage charges will apply on the purchase and sale of listed investments. All fees are inclusive of GST, if any. No fee is charged for non-custodial assets recorded on the Grosvenor portfolio system. Remuneration Rede Advisers Ltd will receive remuneration from the following sources: Remuneration KiwiSaver Name of Preferred Provider: *Marketing Reimbursement: Grosvenor KiwiSaver Scheme (GKS) a $30.00 contribution towards marketing costs for each new Grosvenor KiwiSaver member, paid by GKS one year after the member joins. * Annual Investment Fee: a fixed percentage of 0.50% of the ongoing investment amount invested, paid by GKS monthly, for ongoing management of that business. Arrangements to manage any conflict of interest arising between Rede Advisers Ltd and the above organisation(s) Rede Advisers Ltd does not have any obligation to promote any particular KiwiSaver Scheme. Our current preferred KiwiSaver provider is the Grosvenor KiwiSaver Scheme and we regularly review the investment and service performance of this scheme against other providers. Secondary Disclosure Statement Steve Benton, Rede Advisers Ltd version 4 dated 11 October 2013 Page 5 of 6

Remuneration Investment Name of Preferred Provider: Grosvenor Financial Services Group Ltd (GFSG) * Adviser Portfolio Fee: 0.50% per annum calculated on the value of managed portfolios held in the Grosvenor Managed Investment Account (MIA). Fees are calculated daily but are deducted from the portfolio monthly. This fee covers investment advice, portfolio and product review, performance reporting and reviews. This is subject to GST, and fully tax deductible. * Adviser Service Fee: Payable by GFSG from management fees outlined under Fees above. The fees outlined below are not subject to GST and are fully tax deductible: * Managed Investment Account (MIA) up to 0.50% * Income Focus & Corporate Bond Portfolios 0.50% * Income Securities Portfolio 0.50% * Enhanced Cash Portfolio 0.20% * Commission/Brokerage: On certain investments, we may receive commission or brokerage from the originating institution. Where this occurs, no implementation fee will be charged. Commission or brokerage payments are payable as a gratuity from the institution and do not result in any diminution of either your investment amount or the quoted rate of return. The commission/brokerage rates may vary but are estimated to average 0.50% per annum of the amount invested. Arrangements to manage any conflict of interest arising between Rede Advisers Ltd and the above organisation(s) Rede Advisers Ltd does not have any obligation to promote any particular investment provider. We regularly review the investment and service performance of investment providers. Remuneration Insurance Name of Provider: *Product: AIA, FidleityLife, OnePath, Sovereign, Tower Medical Insurance Ltd or TriMax Assurance Services Ltd Risk Protection Plan including Life, TPD, Trauma, Income Protection and Medical Insurance * First Year Commission: Up to 120% of the annual premium (not preferred option) * Renewal Commission: Up to 25% of the annual premium (preferred option) Arrangements to manage any conflict of interest arising between Rede Advisers Ltd and the above organisation(s) Rede Advisers Ltd s insurance recommendations are based on independent research which rates the policies in terms of outlay and policy terms. Rede Advisers Ltd receives all remuneration generated by Stephen Benton and Michael Shears and pays all operating expenses. I am remunerated by way of a management fee from the net income as a shareholder and director of Rede Advisers Ltd. Declaration I, Stephen Charles Benton, declare that, to the best of my knowledge and belief, the information contained in this disclosure statement is true and complete and complies with the disclosure requirements in the Financial Advisers Act 2008 and the Financial Advisers (Disclosure) Regulations 2010. Signed: Dated: 11 October 2013 Secondary Disclosure Statement Steve Benton, Rede Advisers Ltd version 4 dated 11 October 2013 Page 6 of 6