Issued 17 December ₂₀₁₅ Investing and your options AMP Flexible Super Fact sheet Registered trademark of AMP Limited ABN 49 79 354 519
This document is a fact sheet for AMP Flexible Super. The AMP Flexible Super fact sheets and member benefit schedule (for employee members only) are important documents. You should read them with the product disclosure statement (PDS) to understand how AMP Flexible Super works. Contents AMP Flexible Super investments Managing your risks Investment option fees Core investment level Select investment level Choice investment level Explanation of investment terms 3 12 15 3 37 41 71 The information in this document forms part of the product disclosure statement for AMP Flexible Super Personal Super and Retirement account dated 1 July 215 (PDS) and AMP Flexible Super Super for employers and their employees dated 17 December 215 (PDS). To understand how AMP Flexible Super works, read this fact sheet with the PDS, the getting to know your AMP Flexible Super fact sheet, the applicable insurance fact sheet and, for employee members, the member benefit schedule. Information in this document may change from time to time. We may update information which is not materially adverse to you and make it available at amp.com.au/pdsupdates. A paper copy of the update can also be obtained (at no charge) by calling us on 131 267 or from your financial adviser. The information provided in this document is general information only and does not take into account your personal financial situation or needs. You should obtain financial advice tailored to your personal circumstances. AMP Flexible Super is part of the AMP Retirement Trust. AMP Superannuation Limited is the trustee and is referred to as ASL, trustee, we or us in this document. other company in the AMP group of companies or any of the investment managers of the investment options: is responsible for any statements or representations made in this document guarantees the performance of ASL s obligations to members, or assumes any liability to members in connection with AMP Flexible Super. Except as expressly disclosed in the PDS or a fact sheet: investments in the investment options are not deposits or liabilities of ASL, AMP Bank Limited ABN 15 81 596 9, AFSL. 234 517 (AMP Bank), any other member of the AMP group or any of the investment managers no person guarantees the performance of this super product or any of the investment options, any particular rate of return or the repayment of capital. The trustee may enter into financial or other transactions with related bodies corporate in relation to AMP Flexible Super. That related body corporate may be entitled to earn fees, profits, reimbursements or expenses or other benefits in relation to any such appointment or transaction and to retain them for its own account. AMP Flexible Super is managed and administered in accordance with the PDS and fact sheets. We may change the way AMP Flexible Super is managed and administered at any time with, in the case of an increase in fees, at least 3 days notice. Otherwise, notice will be provided before or as soon as practicable after the change occurs. This offer is available only to persons receiving (including electronically) the PDS and fact sheets within Australia. Changes to investment options We regularly monitor our investment options and investment managers to ensure our range continues to suit the needs of our customers. We may add, close or terminate investment options, add new investment managers, as well as change the aim and strategy and asset range or benchmark of an investment option at any time. We will notify you about any material changes to the investment options which may be after the change has occurred. If you have money in an investment option that is terminated, we will switch your money to an investment option with a similar risk/return profile. Issued by AMP Superannuation Limited ABN 31 8 414 14, AFSL Licence. 2336, RSE Licence. L55, the trustee of the AMP Retirement Trust, ABN 73 31 248 89.
Section ₁ : AMP Flexible Super investments In this section we will provide information about: Approaches to investing Access a range of investment managers across a number of different investment approaches Investment options in each investment level Investment options available in the Core, Select and Choice investment levels
AMP Flexible Super gives you the flexibility to choose between the Core, Select or Choice investment levels, to guide you through your investment goals. Approaches to investing Between the Core, Select and Choice investment levels we aim to give you access to a range of leading Australian and international investment managers across a number of different investment approaches: Lifecycle Active delivers an investment strategy that continuously evolves with the changing stages of your life Super Easy LifeStages which automatically lowers the risk your investments take as you get older Traditional risk profile investing AMP diversifieds and the Professional range Index-style investing Super Easy Multi-manager investing Specialist range Ethical multi-manager investing Responsible Investment Leaders, and Single manager and single market investing. Lifecycle Active Available in the Core, Select and Choice investment levels. AMP Lifecycle Active delivers an investment strategy that continuously evolves with the changing stages of your life. Your super contributions will be invested in the AMP Lifecycle Active investment option specific to your decade of birth. In this investment, the investment strategy and asset allocation change as the investment risk profile of your age group changes. The following table shows the different decades of birth and the applicable AMP Lifecycle Active investment option. Decade of birth 199s or later 198s 197s 196s 195s Before 195 AMP Lifecycle Active investment option AMP Lifecycle Active 199s AMP Lifecycle Active 198s AMP Lifecycle Active 197s AMP Lifecycle Active 196s AMP Lifecycle Active 195s AMP Capital Stable Using the AMP Lifecyle Active 199s investment option as an example the following diagram shows how the Lifecycle investment will work. 4
LifeStages Available in the Select and Choice investment levels. Super Easy LifeStages is a simple investment approach which automatically lowers your investment risk as you get older. This means that when you are young, you will have a larger portion of your super in markets like shares and property (also known as growth assets) whose values can vary markedly but whose long-term return potential is higher. As you move closer to retirement, the portion of what are called defensive assets such as cash and fixed interest, increases to reduce the risk of you losing your money (capital). Although defensive assets are less volatile than growth assets, their overall return potential is also less. The aim is for your savings to be more stable in the years before retirement when you have more to risk and there s less time to recover any short-term losses. Super Easy LifeStages is intended to be a 'whole of working life' strategy, so you cannot mix this strategy with any other investments. It gives you access to a wide variety of investment markets and two choices the option to match the return of each investment market before fees, or try to outperform them. Super Easy LifeStages an index-style approach through the Super Easy multi-sector investments. The following table shows the different age bands, risk profile and investments attached to each stage of LifeStages. Age range Risk profile Select and Choice investment levels Under age 3 Age 3 to 39 Age 4 to 49 Age 5 to 59 Age 6 and over Aggressive Moderately aggressive Balanced Moderately conservative Conservative Super Easy High Growth Super Easy Growth Super Easy Balanced Super Easy Moderately Conservative Super Easy Conservative Super Easy passive index investing Available in the Select and Choice investment level The Super Easy index investment range provides both risk profile based and single market investments which aim to achieve the same return (before fees) as the investment market in which they invest. Each of the Super Easy multi-sector investments caters for different risk profiles: Conservative, Moderately Conservative, Balanced, Growth and High Growth using different investment allocations. The Super Easy single market investments, invest in a variety of markets including shares, property, fixed interest, cash and alternatives both in Australia and overseas. Professional expert risk profile based investing Available in the Choice investment level The Professional diversified investment range combines expert investment management with risk profile based portfolios. Each one may invest in a variety of markets including shares, property, fixed interest, cash and alternatives both in Australia and overseas. ipac, the portfolio manager, conducts extensive research to select managers ranging from large global firms to boutique managers, and blends these to construct multi-manager portfolios based on risk profiles. Each of the Professional investments caters for different risk profiles: Conservative, Moderately Conservative, Balanced, Growth and High Growth by investing in a different combination of assets. ipac may review, replace or change the selected managers or the investment allocations at any time to ensure that risks are actively managed and the long term performance objectives are achieved. Specialist multi-manager investing Available in the Choice investment level The Specialist multi-manager approach blends investment managers with different styles into single, market based investments to deliver more stable returns across different stages of the economic and market cycle. AMP Capital, the investment manager appointed by AMP Life (and a company related to us) works with AMP s Advice Research team using AMP s recommended model portfolio to select investment managers based on their individual strengths and how their styles complement each other. The Specialist investments can be used to tailor your risk profile or build your own portfolio. 5
Single manager, single market investing Available in the Choice investment level AMP Flexible Super offers a further range of investment options if you want to build your own investment portfolio. Environmental and socially responsible considerations Unless specifically stated, neither AMP Capital nor any of the underlying investment managers actively takes into account labour standards, environmental, social or ethical considerations in relation to the investment decision making. They may, however, take into account these considerations if they become aware of them, but only to the extent that they financially affect the investments. The primary focus of AMP Capital and the investment managers in relation to these options is on economic and financial outcomes. Additional information about Responsible Investment Leaders - multi-manager responsible investing AMP Capital s Responsible Investment Leaders (RIL) multi-manager range blends investment managers who specifically recognise how broader social, ethical, governance, labour and environmental factors like labour standards, occupational health and safety, corporate and political corruption, carbon generation, and environmental sustainability can impact long term business success. These investment options also exclude areas of high negative social impact and will avoid investing in companies with any exposure greater than 1% of revenue to the production of tobacco, nuclear power (including uranium), armaments, alcohol, pornography and gambling. In accordance with the Responsible Investment Leaders Charter of Operation, the Fund will not invest in companies with any exposure greater than 2% of revenue to mining thermal coal, exploration and development of oil sands, brown-coal (or lignite), coal-fired power generation, transportation of oil from oil sands or the conversion of coal to liquid fuels/feedstock. Investment manager selection approach The AMP Capital responsible investing approach follows five key steps that combine a stringent investment assessment with a responsible and ethical overlay; both of which are critical in meeting the objectives of producing competitive returns within a sustainable and responsible framework. Step 1 Setting the investment objectives and considerations RIL operates under distinct investment objectives. These relate to the targeted financial return relative to a specific benchmark and respective asset allocations. Social and environmental considerations, as outlined in Step 3, are consistent across RIL. Step 2 Identifying the manager universe AMP Capital searches the responsible investing manager universe in Australia and overseas for the leading managers that can meet requirements, both from investment and ethical perspectives. This search includes seeking out managers across all asset classes. Step 3 Selecting the managers Managers are assessed from both an investment and environmental, social and governance (ESG) perspective. The following manager characteristics are evaluated from an investment perspective: A robust business model that demonstrates proper governance and alignment structures, with a high quality parent organisation appropriate scale or funds under management talented, experienced and sufficiently resourced investment teams clearly defined and consistently applied investment philosophy the manager s investment philosophy and approach must be consistent with the investment strategy for the asset class a sound and disciplined investment process track record (both risk and return metrics). From an environmental, social and governance perspective, AMP Capital seeks out managers that are identifying leaders across industries and are active in their approach to the following responsible investing issues: Environmental considerations including energy and resource use and product stewardship (for example, where a company takes into account the life cycle of the product, from manufacture to the extent to which the product can be recycled). Social considerations including indigenous relations and community involvement. 6
Ethical considerations including meeting fundamental human rights, and articulating and implementing a code of conduct. Labour standards including occupational health and safety, International Labour Organisation standards, working conditions and the exclusion of child labour. Governance considerations including meeting corporate governance guidelines on board structures and remuneration. Additionally, investment managers and funds will also be well regarded if they actively participate in corporate engagement and governance initiatives. Managers are also required to avoid companies operating within sectors with recognised high negative social impact. This means that RIL will avoid exposure, either directly or indirectly through underlying managers and funds, to companies with material exposure to the production or manufacture of alcohol, armaments, gambling, pornography, tobacco and nuclear power (including uranium). Material exposure is considered to be where a company derives more than 1% of its total revenue from these industries. RIL will not invest in companies which have a material exposure to the most carbon intensive fossil fuels by excluding any company that has more than a 2% exposure (as measured by percentage of market capitalisation, or other appropriate financial metric) to one, or a combination of mining thermal coal, exploration and development of oil sands, brown-coal (or lignite) coal-fired power generation, transportation of oil from oil sands and conversion of coal to liquid fuels/feedstock. Responsible investing policies vary between underlying managers Managers are assessed with respect to their ability to achieve the guidelines detailed above. At a minimum, each manager selected excludes investment in companies with material exposure to the sectors identified above as having high negative social impact. Managers may also apply other considerations due to commercial, geographical or other influences. For instance, some managers may impose wider restrictions on the industries that can be considered or must be avoided. Step 4 Determining the optimal manager mix When determining the optimal manager mix, consideration is given to the investment style and risk diversification of the managers, with the aim of generating a style neutral blend that most effectively provides stable returns across fluctuating market cycles. Step 5 Monitoring and operational governance Two specialist committees the Investment Committee and the Ethics Committee monitor the managers and the asset allocations for RIL, maintain RIL s responsible investing integrity, and oversee the overall operation of the RIL product range. Specific tasks include analysing the ongoing performance and style of the underlying managers (from a financial perspective), as well as the stock listings and governance and engagement initiatives (from a responsible investing perspective). 1. Investment Committee The Investment Committee is responsible for overseeing and approving investment decision-making, including strategic asset allocation and manager selection. It also performs a monitoring function, incorporating performance measurement and risk management. The Investment Committee includes investment professionals from within AMP Capital and advisers appointed to provide advice on investment manager selection, as well as other investment research. Except in limited circumstances, advisers are paid for these services and they are not a cost to RIL. AMP Capital, or any of the appointed advisers, may terminate a current consulting arrangement, and aspects of an arrangement may change. 2. Ethics Committee The Ethics Committee is responsible for responsible investing integrity and corporate governance and engagement, and performs two key tasks: Overseeing the investments to ensure they reflect RIL's responsible investing objectives. Providing input on matters of priority for corporate engagement and governance, where environmental, social or ethical issues, or labour standards, are relevant. The Ethics Committee includes responsible investing research and investment professionals from within AMP Capital, and client representatives. In performing its key tasks, the Ethics Committee refers to the guidelines outlined in the Responsible Investment Leaders Charter of Operation. A copy of the Charter is available online at ampcapital.com.au. es The AMP Capital responsible investing approach, which addresses environmental, social and governance (ESG) factors, applies to the Australian and international share components of RIL, together with direct property investments, corporate and government bonds, and alternative investments. 7
Retention and realisation policies While the companies invested in are monitored on an ongoing basis, there is a formal reassessment of each company at least every two years. If a company falls below investible responsible investment standards, and no longer meets negative screening criteria, it is to be sold within six months. Investments in companies may also be divested for purely economic reasons. This policy will be monitored, and breach may lead to termination of the relevant underlying investment manager. Further information RIL investments are generally not geared. However, they are not restricted in the amount they can borrow and they may borrow to meet short-term liquidity needs. For further information on the RIL investment options, including the list of current investment managers, speak to your financial planner or visit the website ampcapital.com.au and follow the prompts to multi-manager investing. Securities lending Securities lending is an arrangement where the holder of securities agrees to provide its securities to a borrower for a specified period of time and the borrower agrees to return equivalent securities at the end of that period. The borrower normally receives collateral as security for the borrowing. The aim of securities lending is to generate positive investment returns but this is not guaranteed. There are a number of risks involved in securities lending. These include the borrower failing to repay the securities lent and failing to pay calls for collateral. The Trustee itself does not engage in securities lending. However through the Life Policy the Trustee holds with AMP Life, it offers a variety of investment options whose fund managers (including AMP Capital) may lend a portion of their securities as part of their investment strategy. AMP Life and AMP Capital have risk management processes in place that require each borrower to provide collateral for at least 1% of the value of the securities loaned. The costs incurred for securities lending are paid by agreement with the lending agent and/or AMP Capital whereby the lending agent and/or AMP Capital retain a portion of the gross revenue. Options in each investment level Type MySuper Balanced Lifecycle Active Specialist Fund name AMP MySuper Balanced (super account only) Super Easy Balanced Super Easy Active Balanced Super Easy AMP Lifecycle Active 199s AMP Lifecycle Active 198s AMP Lifecycle Active 197s AMP Lifecycle Active 196s AMP Lifecycle Active 195s AMP Lifecycle Active Capital Stable AMP Dynamic Balanced AMP Capital Dynamic Markets 8
Type Conservative Cautious Moderately conservative Moderately aggressive Aggressive Fund name Super Easy Conservative Super Easy Cautious Super Easy Moderately Conservative Super Easy Growth Super Easy High Growth Type Fund name Multi-sector (diversified) Conservative Moderately conservative Balanced Moderately aggressive Aggressive Multi-sector (secure) Multi-sector (specialist) Single-sector investments AMP Conservative Professional Conservative Responsible Investment Leaders Conservative AMP Moderate Growth Professional Moderately Conservative AMP Balanced Growth Professional Balanced Responsible Investment Leaders Balanced AMP High Growth Professional Growth Responsible Investment Leaders Growth AMP All Growth Professional High Growth AMP Secure Growth (Retirement account only) AMP Capital Multi-Asset AMP Capital Premium Growth BlackRock Global Allocation ipac Income Generator Schroder Real Return AMP Capital Equity AMP Capital Equity Income Generator Alphinity Australian Share Ausbil Australian Active Equity Goldman Sachs Australian Equities Ironbark Karara Australian Share K2 Australian Absolute Return Perennial Value Income Wealth Defender Perennial Value Australian Share Perpetual Industrial Share 9
Type (continued) Small capitalisation shares Property and infrastructure Alternative strategies Diversified bonds Australian bonds Fund name Plato Australian Shares Income Responsible Investment Leaders Australian Share Schroder Australian Equities Specialist Australian Share Specialist Geared Australian Share Super Easy Australian Share UBS-HALO Australian Share Specialist Australian Small Companies Aberdeen Emerging Opportunities Arrowstreet Global Equity BlackRock Scientific Hedged International Share BlackRock Scientific International Share Fidelity Global Equities Grant Samuel Epoch Global Equity Shareholder Yield (unhedged) Magellan Global Platinum International Responsible Investment Leaders International Share Schroder Global Active Value Specialist Hedged International Share Specialist International Share Super Easy International Share Walter Scott Global Equity Zurich American Century Global Growth AMP Capital Global Infrastructure Series (hedged) AMP Capital Global property Securities AMP Listed Property Trusts Legg Mason Australian Real Income RARE Infrastructure Value Specialist Property & Infrastructure Super Easy Property UBS Clarion Global Property Securities UBS Property Securities Invesco Global Targeted Returns Super Easy Alternative PIMCO Diversified Fixed Interest Specialist Diversified Fixed Income AMP Australian Bond AMP Capital Corporate Bond Macquarie Income Opportunities Schroder Fixed Income 1
Type Australian bonds (continued) Specialist bonds Term deposits Fund name Super Easy Australian Fixed Interest Super Easy International Fixed interest BlackRock Global Bond AB Dynamic Global Fixed Income Bentham Global Income Franklin Templeton Multi-Sector Bond Goldman Sachs Global Strategic Bond Super Easy Term Deposits 11
Section ₂ : Managing your risks In this section we will discuss: Diversification What is diversification? The Standard Risk Measure An industry standard measure that allows you to compare investment options Risks of particular investment strategies Understand how particular strategies may change the risks of investing
Diversification Diversification in simple terms means not putting all your eggs in one basket. It s a way to spread risk by investing in different markets as these rise and fall at different times. This can also include using a range of different investment managers, as well as different investment styles. Standard Risk Measure The Standard Risk Measure is based on industry guidance to allow investors to compare investment options that are expected to deliver a similar number of negative annual returns over any 2 year period. Each investment option described in this document includes a Standard Risk Measure. The table below sets out the Standard Risk Measure bands/labels used for each investment option based on the estimated number of negative annual returns that an investment option may experience over any 2 year period. Negative annual returns may not occur in consecutive years. Risk band 1 2 3 4 5 6 7 Label Very low Low Low to medium Medium Medium to high High Very high Estimated number of negative annual returns over any 2 year period Less than.5.5 to less than 1 1 to less than 2 2 to less than 3 3 to less than 4 4 to less than 6 6 or greater The Standard Risk Measure is not a complete assessment of investment risk. For instance, it does not detail what the size of a negative return could be or if a positive return is less than an investor may need to meet their objectives. And it doesn t take into account the impact of administration fees and tax on the likelihood of a negative return. Members should still ensure they are comfortable with the risks and potential losses associated with their chosen investment option/s. For further information on the methodology used to establish the Standard Risk Measure, please go to amp.com.au. 13
Risk of particular investment strategies Some investments and investment managers use particular strategies which may change the risks of investing. Such strategies may include: Strategy Gearing Short selling Derivatives Description This is the process of borrowing money to purchase assets. Gearing can magnify an investment s potential gains or losses. There is also a risk the assets will be exposed to increases in interest rates, which increases the borrowing cost and may reduce the potential returns of the investment. Short selling is a technique used by investors in order to profit from the falling price of an asset. The aim of short selling is to sell at a higher price and buy the asset at a later time, at a lower price. This form of active management can increase an investor s ability to generate additional returns. Due to the nature of short selling, the potential amount of loss to the relevant investment option may be greater than for more traditional purchase and sale transactions, as the potential increase in price of the asset sold (and hence the potential loss) is unlimited. Furthermore, the lender of the borrowed stock may recall it prior to the period deemed optimal by the investment manager, and this may result in the inability to achieve the targeted profits on the trade. Derivatives can be used for many purposes, including hedging to protect an asset against market fluctuations, reducing transaction costs, achieving a desired market exposure and maintaining benchmark asset allocations. Derivatives can also be used to implement the investment objective of the investment option. Risks of using derivatives include: price or basis risk: The risk that a price change in the market underlying a derivative contract, or in the derivative contract itself, is not matched by the price change in the derivative position held. leveraging risk: The risk that any losses will be magnified by creating greater exposure to a market than that of the assets backing the position. liquidity risk: The risk that a derivative position cannot be reversed. default risk: The risk that the party on the other side of a derivative contract defaults on payments. Investment managers may use derivatives such as options, futures, swaps or forward exchange rate agreements. The use of derivatives by investment managers is in accordance with the guidelines of the investment strategy, the objectives of the investment option, and the relevant risk management processes on the use of derivatives. Additional information on hedge fund disclosure Australian Securities Investments Commission (ASIC) Regulatory Guide 24: Hedge Funds The Australian Securities Investments Commission (ASIC) has developed new regulation to improve the information available to investors on the classification of hedge funds and on the way hedge funds invest. RG 24 prescribes benchmark and disclosure principles that may further assist you in making an informed decision about whether to invest. In summary, RG 24 information requires AMP to disclose information relevant to the investment options, including: details of the investment strategy the people responsible for managing the investment the structure the holding of assets the ability to realise assets in a timely manner the maximum leverage the use of derivatives any use of short selling how you can withdraw from the investment option. 14
Section ₃ : Investment option fees In this section we will discuss: The AMP MySuper Balanced investment option Understand the fees and costs associated with the AMP MySuper Balanced investment option Core, Select and Choice investment options Understand the fees and costs associated with Core, Select and Choice investment options Investment profiles Learn how to read the investment profiles
The fees applying to your investments This section profiles the investments available, their fees and estimated Performance Based Fee where applicable. The fees shown do not include any fee rebates that may apply to you read the getting to know your AMP Flexible Super fact sheet for further details. AMP MySuper Balanced Available in Core, Select and Choice investment levels AMP MySuper gives you access to an investment solution that is well diversified across a broad range of investment markets and focuses on delivering sound long-term returns. We call this the AMP MySuper Balanced investment option. Fees and costs apply based on the balance held in the AMP MySuper Balanced investment option. Additional administration fees may apply regardless of your account balance. See the fees and other costs section in the getting to know your AMP Flexible Super fact sheet for further information. The fees you actually pay may be reduced by up to 15% to allow for the tax deduction passed on to you. Investment Option name MySuper Administration Fee % pa MySuper Investment Fee % pa Total MySuper Administration fee + MySuper Investment fee % pa Performance Based Fee and estimate % pa (i) Estimated Transaction costs % (ii) Estimated Other Indirect costs % pa(iii) AMP MySuper Balanced.5.15.65 +/-.37 Nil (i) (ii) (iii) Estimates shown here are based on the year ended 31 December 214 actual fees. The use of an estimate for the calculation of the PBF is not an indication of future performance and should not be relied on as such. The actual rate of return of the AMP MySuper Balanced investment option and therefore the PBF payable will vary from these estimates. If the investment performance of a particular asset class is better than the set benchmark, the amount of fees paid could be much higher. For more information about PBFs, please see the fees and other costs section in the getting to know your AMP Flexible Super fact sheet. These amounts are a reasonable approximation of the anticipated transaction costs for the investment based on the information available to AMP at the date of this document. The actual transaction costs for an investment depend primarily on the type of assets in the investment and the frequency of trading those assets. As a result, the actual transaction costs for an investment option may vary from the estimated amount at any time. For more information about transaction costs, please see the fees and other costs section in the getting to know your AMP Flexible Super fact sheet. Estimates shown here are based on the year ended 31 December 214 actual costs. Other indirect costs are variable and may be more or less than the estimates shown here. For more information about other indirect costs, please see the fees and other costs section in the getting to know your AMP Flexible Super fact sheet. 16
Core level investments Fees and costs apply based on the balance held in choice investment options. Additional administration fees may apply regardless of your account balance. See the fees and other costs section in the getting to know your AMP Flexible Super fact sheet for further information. The fees you actually pay are reduced by up to 15% to allow for the tax deduction passed on to you. Super Retirement Investment category/ option name Administration Investment Stronger Super Total Administration fee + Investment fee + Stronger Super fee % pa Investment Stronger Super Total Administration fee + Investment fee + Stronger Super fee % pa Performance based fee estimate % pa (ii) Estimated Transaction costs % (iii) Estimated Other Indirect costs % pa (iv) Balanced Super Easy Active Balanced.5.31.34 Yes/ +/-.46 Super Easy Balanced.5.15.69.15.66 +/-.2 Super Easy.25.25.54.25.51 Nil AMP Lifecycle Active AMP Lifecycle Active 199's.6.4 1.4 N/A N/A N/A Yes/ +/-.46 AMP Lifecycle Active 198's.6.4 1.4 N/A N/A N/A Yes/ +/-.46 AMP Lifecycle Active 197's.6.4 1.4 N/A N/A N/A Yes/ +/-.45 AMP Lifecycle Active 196's.6.4 1.4 N/A N/A N/A Yes/ +/-.35 AMP Lifecycle Active 195's.6.4 1.4 N/A N/A N/A Yes/ +/-.31 AMP Lifecycle Active Capital Stable.6.4 1.4 N/A N/A N/A Yes/ +/-.28 17
Super Retirement Specialist AMP Dynamic Balanced.4.26.7.26.67 Yes/ +/-.24 AMP Capital Dynamic Markets.5.31.34 Yes/ +/-.3 Please refer to notes on Page 28. 18
Select level investments Core investments are available in Select, see tables above. Super Retirement Investment category/ option name Administration Investment Stronger Super Total Administration fee + Investment fee + Stronger Super fee % pa Investment Stronger Super Total Administration fee + Investment fee + Stronger Super fee % pa Performance based fee estimate % pa (ii) Estimated Transaction costs % (iii) Estimated Other Indirect costs % pa (iv) Conservative Super Easy Conservative.5.1.64.1.61 +/-.2 Cautious Super Easy Cautious.5.12.66.12.63 +/-.2 Moderately conservative Super Easy Moderately Conservative.5.13.67.13.64 +/-.2 Moderately aggressive Super Easy Growth.5.18.72.18.69 +/-.25 Aggressive Super Easy High Growth.5.2.74.2.71 +/-.3 Please refer to notes on Page 28. 19
Choice level investments Core and Select investments are available in Choice, see tables above. Multi-sector (traditional) investment Super Retirement Investment category/ option name Administration Investment Fee % pa (i) Stronger Super Fee % pa (i) Total Administration fee + Investment fee + Stronger Super fee % pa Investment Fee % pa (i) Stronger Super Total Administration fee + Investment fee + Stronger Super fee % pa Performance based fee estimate % pa (ii) Estimated Transaction costs % (iii) Estimated Other Indirect costs % pa (iv) Conservative AMP Conservative.5 1.39.5 1.36 Yes/ +/-.26 Professional Conservative.5 1.39.5 1.36 Yes/ +/-.36 Responsible Investment Leaders Conservative.7 1.59.7 1.56 +/-.28 Moderately conservative AMP Moderate Growth.55 1.44.55 1.41 Yes/ +/-.34 Professional Moderately Conservative.55 1.44.55 1.41 Yes/ +/-.39 Balanced AMP Balanced Growth.6 1.49.6 1.46 Yes/.2 +/-.51 Professional Balanced.6 1.49.6 1.46 Yes/ +/-.5 Responsible Investment Leaders Balanced.8 1.69.8 1.66 Yes/ +/-.44 Moderately Aggressive AMP High Growth.65 1.54.65 1.51 Yes/.2 +/-.54.5 Professional Growth.65 1.54.65 1.51 Yes/ +/-.55 Please refer to notes on Page 28. 2
Super Retirement Investment category/ Option name Administration Investment Stronger Super Total Administration fee + Investment fee + Stronger Super fee % pa Investment Stronger Super Total Administration fee + Investment fee + Stronger Super fee % pa Performance based fee estimate % pa (ii) Estimated transaction costs % (iii) Estimated Other Indirect costs % pa (iv) Moderately Aggressive Responsible Investment Leaders Growth 1.74 1.71 +/-.5 Aggressive AMP All Growth.7 1.59.7 1.56 Yes/ +/-.56.2 Professional High Growth.7 1.59.7 1.56 Yes/ +/-.48 Multi-sector (secure) investment Super Retirement Investment category/ option name Administration Investment Stronger Super Total Administration fee + Investment fee + Stronger Super fee % pa Investment Stronger Super Total Administration fee + Investment fee + Stronger Super fee % pa Performance based fee estimate % pa (ii) Estimated transaction costs % (iii) Estimated Other Indirect costs % pa (iv) Secure AMP Secure Growth N/a N/a N/a.69 1.55 Yes/.3 Nil.3 Please refer to notes on Page 28. 21
Multi-sector (specialist) investment Super Retirement Investment category/ option name Administration Investment Stronger Super Total Administration fee + Investment fee + Stronger Super fee % pa Investment Stronger Super Total Administration fee + Investment fee + Stronger Super fee % pa Performance based fee estimate % pa (ii) Estimated transaction costs % (iii) Estimated Other Indirect costs % pa (iv) Specialist AMP Capital Multi-Asset 1.15 2.4 1.15 2.1 Yes/.27 +/-.21 AMP Capital Premium Growth 1.15 2.4 1.15 2.1 Yes/ +/-.37 BlackRock Global Allocation.35 1.24.35 1.21 Yes/1.55 +/-.6 ipac Income Generator.9 1.79.9 1.76 +/-.38 Schroder Real Return 1. 1.89 1. 1.86 +/-.4 Single-sector investment options Super Retirement Investment category/ option name Administration Investment Stronger Super Total Administration fee + Investment fee + Stronger Super fee % pa Investment Stronger Super Total Administration fee + Investment fee + Stronger Super fee % pa Performance based fee estimate % pa (ii) Estimated transaction costs % (iii) Estimated Other Indirect costs % pa (iv) AMP Capital Equity.75 1.64.75 1.61 +/-.5 Please refer to notes on Page 28. 22
Super Retirement Investment category/ option name Administration Investment Stronger Super Total Administration fee + Investment fee + Stronger Super fee % pa Investment Stronger Super Total Administration fee + Investment fee + Stronger Super fee % pa Performance based fee estimate % pa (ii) Estimated transaction costs % (iii) Estimated Other Indirect costs % pa (iv) AMP Capital Equity Income Generator.9 1.79.9 1.76 +/-.4 Alphinity Australian Share.9 1.79.9 1.76 +/-.4 Ausbil Australian Active Equity.95 1.84.95 1.81 +/-.6 Goldman Sachs Australian Equities.8 1.69.8 1.66 +/-.4 Ironbark Karara Australian Share.74 1.63.74 1.6 Yes/ +/-.5 K2 Australian Absolute Return 2.2 3.9 2.2 3.6 Yes/2.6 +/-.8 Perennial Value Income Wealth Defender 1.74 1.71 +/-.6 Perennial Value Australian Share.8 1.69.8 1.66 +/-.6 Perpetual Industrial Share.95 1.84.95 1.81 +/-.3 Plato Australian Shares Income.95 1.84.95 1.81 +/-.4 Responsible Investment Leaders Australian Share 1. 1.89 1. 1.86 +/-.5 Schroder Australian Equities.8 1.69.8 1.66 +/-.5 Please refer to notes on Page 28. 23
Super Retirement Investment category/ option name Administration Investment Stronger Super Total Administration fee + Investment fee + Stronger Super fee % pa Investment Stronger Super Total Administration fee + Investment fee + Stronger Super fee % pa Performance based fee estimate % pa (ii) Estimated transaction costs % (iii) Estimated Other Indirect costs % pa (iv) Specialist Australian Share.75 1.64.75 1.61 Yes/ +/-.5 Specialist Geared Australian Share (v) 1.74 1.71 Yes/. +/- 1..23 Super Easy Australian Share.5.5 1.4.5 1.1 +/-.3 UBS-HALO Australian Share.8 1.69.8 1.66 +/-.5 Small capitalisation shares Specialist Australian Small Companies 1.2 2.9 1.2 2.6 Yes/ +/-.7 Aberdeen Emerging Opportunities 1.27 2.16 1.27 2.13 +/- 1.1 Arrowstreet Global Equity 1.25 2.14 1.25 2.11 +/-.29 BlackRock Scientific Hedged International Share 1. 1.89 1. 1.86 +/-.36 BlackRock Scientific International Share 1. 1.89 1. 1.86 +/-.34 Fidelity Global Equities.8 1.69.8 1.66 Yes/.12 +/-.6 Please refer to notes on Page 28. 24
Super Retirement Investment category/ option name Administration Investment Stronger Super Total Administration fee + Investment fee + Stronger Super fee % pa Investment Stronger Super Total Administration fee + Investment fee + Stronger Super fee % pa Performance based fee estimate % pa (ii) Estimated transaction costs % (iii) Estimated Other Indirect costs % pa (iv) Grant Samuel Epoch Global Equity Shareholder Yield (Unhedged) 1.15 2.4 1.15 2.1 +/-.4 Magellan Global.92 1.81.92 1.78 Yes/.45 +/-.2 Platinum International 2. 2.89 2. 2.86 +/-.5 Responsible Investment Leaders International Share 1. 1.89 1. 1.86 +/-.5 Schroder Global Active Value.66 1.69.66 1.66 Yes/ +/-.6 Specialist Hedged International Share.75 1.64.75 1.61 Yes/ +/-.6 Specialist International Share.75 1.64.75 1.61 Yes/ +/-.5 Super Easy International Share.5.5 1.4.5 1.1 +/-.6 Walter Scott Global Equity 1.2 2.9 1.2 2.6 +/-.27 Zurich American Century Global Growth.8 1.69.8 1.66 +/-.16 Please refer to notes on Page 28. 25
Super Retirement Investment category/ option name Administration Investment Stronger Super Total Administration fee + Investment fee + Stronger Super fee % pa Investment Stronger Super Total Administration fee + Investment fee + Stronger Super fee % pa Performance based fee estimate % pa (ii) Estimated transaction costs % (iii) Estimated Other Indirect costs % pa (iv) Property and infrastructure AMP Capital Global Infrastructure Securities (hedged) 1. 1.89 1. 1.86 +/-.6 AMP Capital Global Property Securities.75 1.64.75 1.61 +/-.7 AMP Listed Property Trusts.75 1.64.75 1.61 +/-.5 Legg Mason Australian Real Income.95 1.84.95 1.81 +/-.4 RARE Infrastructure Value 1. 1.89 1. 1.86 Yes/.31 +/-.45 Specialist Property & Infrastructure.95 1.84.95 1.81 Yes/ +/-.61 Super Easy Property.5.5 1.4.5 1.1 +/-.2 UBS Clarion Global Property Securities.9 1.79.9 1.76 +/-.4 UBS Property Securities.8 1.69.8 1.66 +/-.7 Alternative strategies Super Easy Alternative.5 1. 1.54 1. 1.51 +/-.2 Invesco Global Targeted Returns 1.2 2.9 1.2 2.6 +/-.6.6 Please refer to notes on Page 28. 26
Super Retirement Investment category/ option name Administration Investment Stronger Super Total Administration fee + Investment fee + Stronger Super fee % pa Investment Stronger Super Total Administration fee + Investment fee + Stronger Super fee % pa Performance based fee estimate % pa (ii) Estimated transaction costs % (iii) Estimated Other Indirect costs % pa (iv) Diversified bonds PIMCO Diversified Fixed Interest.8 1.69.8 1.66 +/-.1 Specialist Diversified Fixed Income.6 1.49.6 1.46 +/-.44 Australian bonds AMP Australian Bond.55 1.44.55 1.41 +/-.2 AMP Capital Corporate Bond.75 1.64.75 1.61 +/-.4 Macquarie Income Opportunities.55 1.44.55 1.41 +/-.3 Schroder Fixed Income.65 1.54.65 1.51 +/-.24 Super Easy Australian Fixed Interest.5.3.84.3.81 +/-.2 BlackRock Global Bond.65 1.54.65 1.51 +/-.12 Super Easy International Fixed Interest.5.3.84.3.81 +/-.2 Specialist bonds AB Dynamic Global Fixed Income 1.74 1.71 +/-.3 Bentham Global Income.9 1.79.9 1.76 +/-.8.5 Franklin Templeton Multi-Sector Bond 1.5 1.94 1.5 1.91 Nil Goldman Sachs Global Strategic Bond.9 1.79.9 1.76 Nil 27
Super Retirement Investment category/ option name Administration Investment Stronger Super Total Administration fee + Investment fee + Stronger Super fee % pa Investment Stronger Super Total Administration fee + Investment fee + Stronger Super fee % pa Performance based fee estimate % pa (ii) Estimated transaction costs % (iii) Estimated Other Indirect costs % pa (iv) Term deposits Super Easy Term Deposits.25.25.54.25.51 Nil Please refer to notes on Page 28. tes: (i) (ii) (iii) (iv) (v) Administration and investment fees apply based on the account balance held in each investment option. For Super accounts, the fees you actually pay are reduced by 15% to allow for the tax deduction passed on to you. The Federal Government has introduced Stronger Super, a program of changes designed to streamline and Strengthen Australia s superannuation system. The Stronger Super Fee is to help cover the costs associated with implementing these changes. This fee is expected to cease by 1 vember 218. Performance based fee (PBF) estimates are rounded to two decimal places and for each applicable investment assumes the following: For investments with performance-based incentives, we have used the actual PBF payable for the year: ended 3 June 214 for the BlackRock Global Allocation, Magellan Global, Macquarie Income Opportunities, RARE Infrastructure Value and K2 Australian Absolute Return investment options. end 31 December 214 for other investments. For any performance-based incentives introduced to an investment option or new investment options with performance-based incentives we have assumed performance is in line with the relevant benchmark and therefore no PBF is payable. The use of an estimate for the calculation of the PBF is not an indication of future performance and should not be relied on as such. The actual rate of return of an investment option and therefore the PBF payable will vary from these estimates. If the investment performance of a particular asset class is better than the set benchmark, the amount of fees paid could be much higher. For more information about PBFs, please see the getting to know your AMP Flexible Super fact sheet. These amounts are a reasonable approximation of the anticipated transaction costs for the investment option based on the information available to AMP at the date of this document. The actual transaction costs for an investment option depend primarily on the type of assets in the investment option and the frequency of trading those assets. As a result, the actual transaction costs for an investment option may vary from the estimated amount at any time. For more information about transaction costs, please see the fees and other costs section in the getting to know your AMP Flexible Super fact sheet. Estimates shown here are based on the year ended 31 December 214 actual costs rounded to two decimal places. Other indirect costs are variable and may be more or less that the estimates shown here. For more information about other indirect costs, please see the fees and other costs section in the getting to know your AMP Flexible Super fact sheet. For Specialist Geared Australian Share, the investment fee is payable on gross assets under management. Refer to the additional information about Specialist Geared Australian Share in this fact sheet for further information. 28
Reading the investment profiles Each investment appears under a category which classifies it based on its strategy or the market in which it invests. The following illustration explains the information provided for each investment shown on the following pages. 29
Section ₄ : Core investment level In this section we will provide information about the investment options available in the Core investment level
MySuper Balanced Who is this option suitable for? Investors seeking moderate to higher returns primarily from capital growth with some income over the long term by investing across all asset types, with a higher exposure to growth assets with a focus on obtaining a passive exposure to a range of traditional listed markets. Who are these options suitable for? Investors seeking to achieve moderate to higher returns primarily from capital growth with some income over the long term by investing across all asset types, with higher exposure to growth assets. Investors are willing to accept a medium level of volatility to achieve these returns. AMP MySuper Balanced (Super account only) Aim and strategy: To provide moderate to high returns primarily from capital growth with some income over the long term through a diversified portfolio, with a higher exposure to growth assets (such as shares and property). The exposure to the different sources of risk and return will typically be through index exposure to a range of traditional listed markets. This investment option s asset allocation is actively managed to take advantage of long-term under and over-valuations between asset classes. This investment option aims to achieve a rate of return above the Consumer Price Index of 4. per cent, after fees and superannuation tax, over a 1 year period. International investments may be partially or fully hedged back to Australian dollars. Subject to certain conditions, the underlying investments may use derivatives (such as options, futures, forwards and swaps) and engage in short selling. The performance benchmark is the average weighted return of the benchmark indices used for each asset class. Suggested minimum investment timeframe: 1 years Standard risk measure: 5/ Medium to high Australian property Global property Global infrastructure Australian bonds 28 32 6 6 12 11 5 12-32 15-48 -1-1 -3-3 2-4 Super Easy Balanced Aim and strategy: To provide moderate to higher returns primarily from capital growth with some income over the long term by investing across the main asset classes, with higher exposure to growth assets. Exposure to individual asset classes will be attained through the use of index focussed investment managers. This investment option seeks to provide an index focussed solution to diversified investing. Through a process of diversified market analysis combined with selection of the most appropriate investment managers for each underlying asset class, this investment is designed to provide market tracking returns over the suggested investment time frame. may be partially or fully hedged back to Australian dollars. Suggested minimum investment timeframe: 5 to 7 years Standard risk measure: 5/ Medium to high Growth alternatives Australian property Australian bonds 2-4 2-4 -2-1 -2-2 -25 31