Premium Investment Funds Investment Managers current as at 20 November 2015 The Premium Investment Funds are funds offered within the BT Private Selection unit trust (the Unit Trust ) by BT Funds Management (NZ) ( BT ). BT is responsible for the overall investment management of the funds within the Unit Trust, including currency management. Exposure to investment assets may be gained where appropriate, by investing in units in other managed funds ( Specialist Funds ). Investment management functions for the Specialist Funds may be provided by investment managers of those Specialist Funds ( Underlying Investment Managers ) and such Underlying Investment Managers may include BT, or its related companies. BT considers a number of factors when selecting Specialist Funds, including Underlying Investment Managers. When assessing the Underlying Investment Managers, BT looks for specialists who have a well-defined and robust investment philosophy and process, and who possess above average research skills. BT regularly monitors investment performance, portfolio holdings, compliance, changes to key investment personnel and business factors (among other matters). As BT regularly monitors the Specialist Funds and Underlying Investment Managers, they may change without notice to investors. The current Underlying Investment Managers and Specialist Funds are detailed below. Information about the Underlying Investment Managers can also be found below. Fund Enhanced Cash Fund New Zealand Diversified Bond Fund International Diversified Bond Fund Underlying Investment Manager / Specialist Funds BT Funds Management (NZ) Accessed through an investment in the Westpac Wholesale Enhanced Cash Trust, a fund issued by BT. Harbour Asset Management Accessed through an investment in the Westpac Wholesale New Zealand Bond No.2 Trust (via an investment in the Westpac Wholesale New Zealand Diversified Bond Trust). Both funds are issued by BT. BT Funds Management (NZ) Accessed through an investment in the Westpac Wholesale Corporate Bond Trust and the Westpac Wholesale New Zealand Bond No.1 Trust (via an investment in the Westpac Wholesale New Zealand Diversified Bond Trust). These funds are issued by BT. Franklin Templeton Investments Australia Standish Mellon Asset Management Wellington International Management Pte All accessed through an investment in the Advance International Fixed Interest Multi-Blend Fund, a fund established in Australia and issued by Advance Asset Management, a related company to BT (via an investment in the Westpac Wholesale International Fixed Interest Trust, a fund issued by BT). BT Investment Management (a company associated with BT) Kapstream Capital Pty Standish Mellon Asset Management All accessed through an investment in the Advance Defensive Yield Multi-Blend Fund, a fund established in Australia and issued by
Advance Asset Management, a related company to BT (via an investment in the Westpac Wholesale Defensive Yield Trust, a fund issued by BT). Corporate Bond Fund BT Funds Management (NZ) Accessed through an investment in the Westpac Wholesale Corporate Bond Trust, a fund issued by BT. Property Fund Salt Funds Management Accessed through an investment in the Westpac Wholesale Property Trust, a fund issued by BT. Australasian Diversified Share Fund International Diversified Share Fund Dividend Share Fund Alternative Investments Fund Devon Funds Management Accessed through an investment in the Devon Trans-Tasman Wholesale Fund, a fund issued by Devon Funds Management (via an investment in the Westpac Wholesale Australasian Diversified Share Trust, a fund issued by BT). Harbour Asset Management Accessed through an investment in the Harbour Australasian Equity Fund Wholesale Unit Trust, a fund issued by Harbour Asset Management (via an investment in the Westpac Wholesale Australasian Diversified Share Trust, a fund issued by BT). Salt Funds Management Accessed through an investment in the BT Institutional Dividend Share Fund and the BT Institutional Focus Share Fund (via an investment in the Westpac Wholesale Australasian Diversified Share Trust). All these funds are issued by BT. AQR Capital Management LLC Lansdowne Partners MFS Investment Management Ramius Alternative Solutions LLC Schroders Investment Management Australia Tradewinds Global Investors LLC Trilogy Global Advisors LLC All accessed through an investment in the BT Wholesale Multi- Manager International Share Fund, a fund established in Australia and issued by BT Funds Management, a related company to BT (via an investment in the Westpac Wholesale Multi Manager International Share Trust, a fund issued by BT). Salt Funds Management Accessed through an investment in the BT Institutional Dividend Share Fund, a fund issued by BT. Advance Asset Management (a related company to BT) Ramius Alternative Solutions LLC Both accessed through an investment in the Advance Alternative Strategies Multi-Blend Fund, a fund established in Australia and issued by Advance Asset Management (via an investment in the Westpac Wholesale Alternative Investment Trust, a fund issued by BT).
Underlying Investment Managers (in alphabetical order) Advance Asset Management Advance Asset Management ("Advance") is a specialist asset management business within the Westpac group of companies. Advance s focus is on asset allocation and risk management, implemented through a multi-manager process, providing investment opportunities across a range of asset classes, including shares, property, fixed interest and cash. Advance employs a multi-manager approach, combining investment managers with complementary styles across different asset classes. This approach is based on the belief that different styles, when combined, can produce a more consistent outcome for investors by minimising style and portfolio risk. This increased level of diversification reduces style bias, an outcome of relying too heavily on a single fund manager. AQR Capital Management LLC. Founded in 1998, AQR Capital Management LLC ("AQR") is an investment management firm employing a disciplined multi-asset, global research process. The cofounders, Cliff Asness, John Liew, Bob Krail and David Kabiller, previously managed both traditional (managed relative to a benchmark) and non-traditional (managed seeking absolute returns) mandates at Goldman Sachs. AQR is based in Greenwich, Connecticut and manages assets for some of the largest institutional investors from the United States, Europe and Asia. AQR is a specialist quantitative manager who focuses on global equities and alternatives. It has a good management structure, headed by a large, stable and experienced investment team. Cliff Asness is a wellrespected industry figure, and the business has a strong ownership structure and alignment with investors. The strong depth of resources enables emphasis to be placed on future research, model development and enhancement. BT Funds Management (NZ) BT Funds Management (NZ) ("BT") is the investment arm of Westpac in New Zealand, and is wholly owned by Westpac Banking Corporation. BT s investment process is based on their core investment style, which has no intended style bias. They adopt a valuation-driven approach to managing fixed interest and cash, aiming to add value via multiple sources of active management: duration, yield curve positioning, sector and security selection.
BT Investment Management BT Investment Management ("BTIM") is one of Australia s largest funds management companies, and provides a diverse range of investment choices for both individual and institutional investors. BTIM is listed on the Australian Stock Exchange and Westpac Banking Corporations holds a minority interest in it. The BTIM Income and Fixed Interest team is lead by Vimal Gor who has over 17 years industry experience, and is supported by a team of six portfolio managers and analysts. Devon Funds Management Devon Funds Management ("Devon") is an independent investment management business that specialises in building investment portfolios that are comprised of companies listed on the New Zealand and Australian stock exchanges. Devon is based in Auckland, was established in March 2010 and is wholly owned by its employees. Devon is an active manager and takes a long term view with a disciplined risk management approach. They conduct their own research to identify companies that they consider have strong free cashflow generation, favourable industry characteristics, a sustainable competitive advantage, strong management and governance, a clear strategic plan for growing shareholder wealth and a robust business model. Guided by this philosophy, Devon employ a rigorous and proven investment process designed to identify the best opportunities for investment. Franklin Templeton Investments Australia Franklin Resources, Inc. is a global investment management organisation known as Franklin Templeton Investments ("Franklin Templeton"). The headquarters are located just south of San Francisco, in San Mateo, California, but it has offices in over 30 countries around the world and offers investment solutions and services in more than 150. The wholly owned subsidiary Franklin Templeton Investments Australia was established in 1988. Franklin Templeton has a fundamental macro-driven process that is a fluid, benchmark agnostic, absolute return approach to investing. It has a well resourced team, which is split across global offices, and services a comprehensive range of global and regional bond products.
Harbour Asset Management Harbour Asset Management ("Harbour") is a New Zealand based investment manager that was formed in January 2010. The team previously worked together for up to ten years as the NZ equity team at a large global investment manager. The years of experience and lessons learned over many market cycles has helped Harbour craft a robust and disciplined investment process. Harbour believes in a growth-orientated investment management approach to generate outperformance. Harbour employs a combination of quantitative, macroeconomic and fundamental research analysis when selecting New Zealand and Australian equities for inclusion in portfolios. Harbour offers a team of experienced and proven investment practitioners that have extensive experience in managing money in global and Australasian markets on behalf of clients. Kapstream Capital Pty Kapstream Capital Pty ("Kapstream") is a global fixed income boutique, founded in 2006. The firm is majority owned by New York Stock Exchange listed Janus Capital Group Inc. Kapstream offers an alternative approach to fixed income, with the goal of generating absolute returns. Through active diversification across sectors and geographies, it aims to consistently deliver capital protection and a reliable income stream. Kapstream offers a great opportunity to access the investment expertise of an experienced investor with a strong track record, Kumar Palghat. Mr Palghat is supported by a strong investment and business staff. Kapstream also has solid infrastructure support enabling the investment team to concentrate on managing their portfolios. Lansdowne Partners Founded in 1998, Lansdowne Partners ( Lansdowne ) is one of the world s leading alternative investment management organisations, also providing global share strategies. Lansdowne manage assets for a diversified client base that includes some of the world's largest and most sophisticated investors. Lansdowne s investment philosophy is predicated on generating consistent, absolute risk-adjusted returns, through the use of investment talent. Central to their investment philosophy is a process of fundamental research, which includes meeting with company management, as well as analysis of publicly available information and proprietary and independent research. MFS Investment Management Established as a partnership in Massachusetts in 1924, Massachusetts Financial Services ("MFS") is America s oldest mutual fund company. In 1932, MFS established an internal equity research department and proprietary research approach. MFS has since grown to be one of the most respected names in investment management. Headquartered in Boston, MFS also has investment offices in London, Mexico City, Singapore, Sydney and Tokyo, and employs over 1600 staff worldwide,
represented in 17 countries. MFS is a large, well established company with substantial assets and a diverse product line. MFS has a strong investment team, with good collaboration between portfolio managers and analysts. Its fundamental, bottomup approach is based on in-depth internal research across regions and industries. Ramius Alternative Solutions LLC Ramius Alternative Solutions ("Ramius") is part of Ramius LLC, an experienced global alternative asset management business. The areas of expertise include multi and single strategy hedge funds, fund of hedge funds, private real estate funds and global share funds. The three key investment professionals at Ramius are highly respected in the hedge fund industry with significant experience at major Wall Street securities franchises. They are backed by an investment team focused on good quality research, with specialists covering all the main hedge fund strategies as well as operational due diligence and risk management. Salt Funds Management Salt Funds Management ("Salt") is a boutique investment manager specialising in the New Zealand equity and listed property asset classes. Salt was established in May 2013 and is 100% staff-owned. Salt employs a clear investment process which is backed by a strong body of academic research and their own long term experience. They aim to add value by investing in companies with sound balance sheets and which generate strong free cash-flow. Salt s research centres both on these financial fundamentals and on qualitative factors including a strong business franchise, quality management and sound industry structure. Salt then invests in companies which it identifies as materially mispriced by the market relative to their expected cashflow generation. For listed property securities, Salt aims to maximise the forecast post-tax dividend yield, with respect to the constraints of financial leverage, sustainability, yield relative to the quality of the property assets and management incentive structures and skill. Schroder Investment Management Australia Schroder Investment Management Australia ("Schroders") offers a range of investment products and is part of the Schroders group of companies, which is one of the largest and most internationally diverse independent investment managers providing investment management, research and marketing services from offices located in 26 countries. In Australia, Schroders is a wholly owned subsidiary of Schroders plc, a publicly listed UK company descending from a group that can trace its origins in banking and finance back over 200 years.
Financial services has been a core business for Schroders in Australia since 1961. Schroders' dynamic style allocation between value and quality has the ability to generate higher risk- adjusted returns than investing in either style in isolation. Both strategies share a unique but common philosophy of investing on the basis of company fundamentals across an investment universe of extraordinary breadth using a non market cap stock weighting approach. Schroders has a strong investment team, with its competitive advantage being in portfolio construction and risk management. The small team facilitates discussion and decision making. Schroders has a consistent investment approach and demonstrated understanding of when to take risk. Standish Mellon Asset Management With headquarters in Boston, Standish Mellon Asset Management ("Standish") is a leading investment management firm dedicated to serving sophisticated fixed income investors. Its investment strategies span the wide range of fixed income disciplines and are complemented by a demonstrated ability to design innovative, effective solutions. Standish aims to provide clients with competitive and consistent investment performance, together with investment counsel, in a partnership that embraces its challenges and meets its goals. Standish is an active manager that aims to outperform from a balanced focus on sector and country allocation, issue selection and duration/yield curve positioning strategies. Standish s disciplined investment process has a strong emphasis on risk control. The approach is teambased with an emphasis on bottom-up, fundamental research and analysis conducted by the sector strategists. Tradewinds Global Investors, LLC Tradewinds Global Investors LLC ("Tradewinds") is an independently-managed subsidiary of US investment firm Nuveen Investments, which was established in 1898. Nuveen is wholly owned by TIAA-CREF, one of the world s largest financial services organisations, managing over US$844 billion in assets. Tradewinds is a concentrated, benchmark-unconstrained manager that focuses on undervalued stocks with strong or impressive franchise quality. Its bottom-up stock selection process is built on robust quantitative screening supported by fundamental analysis. The Tradewinds process relies heavily on the judgement of its investment professionals, utilising different forms of valuation and cash flow analysis. The team has a strong focus on understanding the drivers of sectors and industries, and the portfolio can have substantial sector and country exposures. Trilogy Global Advisors LLC Trilogy Global Advisors LLC ("Trilogy") was founded in 1999 by the current head of Trilogy, Bill Sterling. Headquartered in New York, the firm is 100% owned by its staff. Trilogy s origin was based on Bill s desire to continue providing institutional investors with his growthoriented global and international investment management
discipline, a process he had been implementing successfully for many years. Investment management services are the firm s sole source of revenues, reflecting a singular focus on providing above-benchmark returns for clients at a moderate level of risk. Trilogy is an equity specialist focusing on a broad investment universe, incorporating emerging markets and small caps. Trilogy has an investment-led culture with an experienced senior team who have different backgrounds and complementary skill sets. Its investment process is benchmark agnostic and gives attention to company valuation, using different valuation metrics across industries. Wellington International Management Pte Wellington International Management Pte ("Wellington Management") is a private partnership which can trace its roots back to the founding of Wellington Fund in 1928. It s based in Boston, MA and has offices located across the US, and in Beijing, Frankfurt, Hong Kong, London, Singapore, Tokyo and Sydney. Wellington Management is a well-resourced investment manager with high-quality personnel. It focuses on investment management and diversity in the type of assets it has under management. Its global aggregate investment approach uses innovative models which consider fundamental, valuation and technical factors, and uses a good balance of quantitative and qualitative assessments. It has a research driven team culture and a high quality, experienced credit analyst team. The information provided is general information only and is not a recommendation or opinion in relation to the Premium Investment Funds. You should not solely rely on this information. We recommend you consult a Westpac Financial Adviser if you would like advice in relation to the Premium Investment Funds. Disclosure statements for Westpac Financial Advisers are available on request and free of charge from any Westpac Financial Adviser. Investments made in the Premium Investment Funds do not represent deposits or other liabilities of Westpac Banking Corporation ABN 33 007 457 141, Westpac New Zealand or other members of the Westpac group of companies. They are subject to investment and other risks, including possible delays in payment of withdrawal amounts in some circumstances, and loss of investment value, including principal invested. None of BT Funds Management (NZ) (as manager), any member of the Westpac group of companies, The New Zealand Guardian Trust Company (as trustee), or any director or nominee of any of those entities, or any other person guarantees the Premium Investment Funds performance, returns or repayment of capital. You can get a copy of the Premium Investment Funds investment statement from your Westpac Financial Adviser. This information is current as at 20 November 2015 and may vary from time to time.