Contents

EquitySuper Pooled Superannuation Trust

1.

About EquitySuper PST .............................. 2

2.

How super works ......................................... 2

3.

Benefits of investing with EquitySuper PST .......................................... 2

4.

Risks of super ............................................... 3

5.

How we invest your money ........................ 3

6.

Fees and costs ............................................. 5

7.

How super is taxed ................................... 7

8.

How to open an account ........................... 8

Product Disclosure Statement

4 July 2014

ABOUT THIS PRODUCT DISCLOSURE STATEMENT (‘PDS’) This PDS has been prepared and issued by Equity Trustees Superannuation Limited (‘ETSL’) and is a summary of significant information about the EquitySuper PST. This PDS contains a number of references to important information (each of which forms part of the PDS) which you should also consider before making a decision about EquitySuper PST. These references are marked by . This information is available from our website or you may obtain a paper copy free of charge by calling us (see details below). The information in this PDS should help you decide whether the Fund will meet your needs and to compare it to others you may be considering. The information in this PDS is general information only. It does not take into account your personal financial situation and needs, and you should seek financial advice tailored to your own personal circumstances.

PWS-ETSL-PDS0026_04072014

UPDATED INFORMATION The information in this PDS is up-to-date at the date it was issued. Some of the information in this PDS may change from time to time and may not be up-to-date at the time you receive it. If a change is not materially adverse, we may not update this PDS. Updated information will be published on our website or you may obtain a paper copy free of charge by calling us.

Client Services: Address: PO Box 398, North Sydney NSW 2059 Phone: 1300 659 799 Fax: 1300 369 799 E-mail: [email protected] Web: www.equitysuper.com.au Trustee:

Equity Trustees Superannuation Limited (ETSL) ABN 50 055 641 757; AFSL 229757

Fund:

ABN 50 139 419 712



1

EquitySuper PST Product Disclosure Statement / 2014

1. About EquitySuper PST Fund of Funds EquitySuper PST offers a selection of professionally managed investments based on: • wholesale entry; • sector specialist investment fund managers; • diversification over a range of investment asset classes, currencies and the global economy; and • an ongoing detailed assessment of each manager’s performance to ensure the best managers are selected. The investments selected are combined to form asset class and diversified investment strategies to optimise returns: • through optimal use of cash flow to ensure available monies are correctly invested at all times; and

• provide precise solutions to the question of which asset classes are to be selected and in what proportion (asset allocation), for investors with a wide range of investment preferences and tolerances to risk. Each of the diversified strategies are monitored. This is a process of active management, achieved by varying the allocation to each asset class, to reduce risk and to take advantage of cyclical economic conditions providing an opportunity to enhance returns. EquitySuper PST is a ‘Fund of Funds’ investment product aiming to invest with the best managers while adding value through asset allocation.

2. How super works Super is a means of saving for retirement, that is, in part, compulsory. Employers are required to pay 9.5% of an employee’s earnings into super. There are different types of contributions available to a person (for example, employer contributions, voluntary contributions and government contributions). There are limits to the amount you can contribute and when you can withdraw from superannuation. Generally, you cannot access your money until you’ve reached retirement age.

This money is invested during this time and lower tax rates and other government incentives can make super a beneficial way to save for retirement.

Super is a long-term plan where contributions during your employment will provide you with a source of income in retirement.

For more information on how super works, please refer to www.moneysmart.gov.au/superannaution-and-retirement/ how-super-works or the ATO website at www.ato.gov.au/ individuals.

Generally your employer must pay into a fund of your choice and your contributions will be invested according to your investment selection.

To find out more

3. Benefits of investing with EquitySuper PST We at ETSL have been in the industry for over twenty five years and have a strong commitment to superannuation and advising clients on a range of financial needs. We like to help you take control of your finances and plan for your future. When thinking about investing money in things like shares or property, we generally spend some time investigating the different options. We look at the pros and cons of each option, work out the costs and think about the implications for the future.

2

EquitySuper PST Product Disclosure Statement / 2014

Superannuation is often one of the only times many of us will invest money for the long-term. We have worked hard to be able to offer a super fund that is easy to understand, with competitive fees and no hidden costs. We offer a simple and easy to understand range of investment options that perform well and offer flexibility so that your individual requirements are met.

4. Risks of super Before selecting an investment option/strategy it is important to be aware of different risks affecting investments. All investments carry risk. Risk is measured between an actual result and the result which, based on past results, is expected. Put simply, risk is uncertainty. Investment risk refers to the uncertainty of an investment not earning what it is expected to earn. Volatility refers to the degree to which returns may fluctuate from year to year around their long-term average. EquitySuper PST invests in a variety of assets - for example shares, bonds (fixed interest investments), property and cash that have different levels of risk and volatility. EquitySuper PST offers several investment options that are invested in different proportions (or percentages) of these assets. The likely investment return, and the level of investment risk, is different for each option depending on the underlying mix of investment assets and time frame the investment is held.

In considering your investment in super it is important to understand that: • the value of investment options will go up and down; • the level of returns will vary, and future returns may differ from past returns; • returns are not guaranteed and you may lose some of your money; • superannuation laws may change in the future; • the amount of your future superannuation savings (including contributions and investment returns) may not be enough to provide adequately for your retirement. The level of risk that you would be exposed to will vary depending on a range of factors, including: • your age; • the investment time frame (how long you wish to invest for); • your other investments or assets; • your tolerance of risk (how you feel about your investments fluctuating in value and potentially incurring negative returns in some years as well as positive gains in others).

Assets such as shares and property typically offer a high level of risk and return, compared to assets such as bonds and cash which typically offer a low level of risk and return. As investment risk is linked to time frame, the level of risk and volatility of earnings decrease the longer an investment is held, as earnings tend to average out to their long-term historical returns.

5. How we invest your money Our investment options Diversified Options • Capital Stable • Balanced • Balanced Growth • Retirement Growth • Growth • All Equities

Sector Options • Cash • Fixed Interest • Property • Australian Shares • International Shares



Do you need help?

You should consider the likely investment return, risk and your investment time frame when choosing which option to invest in. If after reading the information in this PDS you are still unsure, please call Client Services on 1300 659 799 for assistance.



More information

1. You should read the important information about the investment options before making a decision. Go to the Investment Guide on page 9. 2. The material relating to the investment options may change between the time when you read this Statement and the day you acquire the product.

3

EquitySuper PST Product Disclosure Statement / 2014

Investment details for Balanced Growth Option • Description of option

Mix of Asset Classes (see Note 3)

A diversified portfolio of cash, property, alternative assets, fixed interest securities and shares both in Australia and internationally.

• Suitable for Members seeking a diversified investment over a broad range of asset classes, in order to achieve a diversified capital growth-based return with moderate income.

Fixed Interest 22.5% (5 - 50%)

Cash 12.5% (0 - 25%)

• Investment return objective (see Note 1) Outperform the median balanced superannuation fund and to produce a return of 4% pa above the inflation rate over rolling 5 year periods.

Property 7.5% (5 - 20%)

Australian Shares 35% (20 - 50%)

• Minimum suggested time frame 5 years

• Asset Class 65% Growth Assets (range 40% - 90%) 35% Defensive Assets (range 10% - 60%)

International Shares 22.5% (15 - 40%)

• Standard Risk Measure of the option (see Note 2) Level 5 - Medium to High Note 1 (Return objective) - The investment objective is the investment return this option will seek to achieve after fees and taxes. It is the amount above the increase in the rate of inflation (as measured by changes in the Consumer Price Index). For example, if the inflation rate is 2.3% pa over 5 year periods then the objective return would be 6.3% per annum over the 5 year period. Note 2 (Standard Risk Measure) - Details of how the Standard Risk Measures work are set out in the Investment Guide. Note 3 (Asset Classes) - The investment mix of the investment option is actively adjusted within the asset sector ranges shown in the pie chart. The pie chart mix shows the option’s benchmark and the mix is varied around the benchmark according to the Trustee’s views of the relative risks and returns of each asset sector.

4

EquitySuper PST Product Disclosure Statement / 2014

6. Fees and costs Consumer Advisory Warning Did you know? Small differences in both investment performances and fees and costs can have a substantial impact on your long‑term returns. For example, total annual fees and costs of 2% of your fund balance rather than 1% could reduce your final return by up to 20% over a 30 year period (for example, reduce it from $100,000 to $80,000). You should consider whether features such as superior investment performance or the provision of better member services justify higher fees and costs. Your employer may be able to negotiate to pay lower administration fees. Ask the fund or your financial adviser.

To find out more If you would like to find out more, or see the impact of the fees based on your own circumstances, the Australian Securities and Investments Commission (‘ASIC’) website (www.moneysmart.gov.au/superannuation-and-retirement/how-super-works) has a superannuation fee calculator to help you check out different fee options. Note: Fees and costs in this Fund cannot be negotiated by you or your employer.

Fees for the Balanced Growth option Type of fee

Amount

How and when paid

Investment fee

Nil

All investment costs are included in the indirect cost ratio

Administration fee

Nil

Not applicable

Buy/sell spread

0.20%

Included in the unit price and applied to your buy or sell transaction(s) as applicable.

Switching fee

Nil

Not applicable

Exit fee

Nil

Not applicable

Advice fees relating to all members investing in a MyEquitySuper

Nil

Not applicable

0.79% p.a.~

Deducted from investment returns before unit prices are determined.

Other fees and costs^ Indirect cost ratio

^

Other fees and costs may apply. Please refer to the ‘Additional explanation of fees and costs’.

This is the ratio of the indirect costs to the net asset value of the Investment option. The number is an estimate based on the level of fees and costs for the financial year ended 30 June 2013. Actual fees and costs may differ from the estimate. ~

5

EquitySuper PST Product Disclosure Statement / 2014

Example of annual fees and costs for the Balanced Growth option This table gives an example of how the fees and costs for the MySuper option for this superannuation product can affect your superannuation investment over a one year period. You should use this table to compare this superannuation product with other superannuation products. EXAMPLE – Balanced Growth option

BALANCE OF $50,000

Investment fees

0%

For every $50 000 you have in the Balanced Growth option you will be charged $0 each year.

PLUS

Nil

And, you will be charged $0 in administration fees regardless of your balance.

0.79%

And, indirect costs of $395 each year will be deducted from your investment.

Administration fees PLUS

Indirect costs for the Balanced Growth option EQUALS Cost of the

Balanced Growth option

If your balance was $50 000, then for that year you will be charged fees of $395 for the Balanced Growth option.

Note: Additional fees may apply.

Additional explanation of fees and costs Fees and costs can be paid directly from your account or deducted from the investment returns. 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. Taxes, insurance fees and other costs are set out in another part of this document. It is important to note that the fees and costs for other investment options also differ from those set out in this document. You should read all the information about fees and other costs because it is important to understand their impact on your investment. Please refer to the Investment Guide (for access details see ‘More information’ below) and www.eqt.com.au/ superannuation/defined-fees.aspx for detailed definitions of the fees and costs for this product. Can the fees change? Yes, all fees can change. The Trustee will generally provide members with at least 30 days’ notice of any proposed change to fees. Indirect costs and buy/sell spreads may change without notice. The Trustee has the right to change the amount of fees without member consent.

Change to fees on termination of employment If you leave the service of the employer sponsor of your Employer Plan and your account balance exceeds $1,200, the Trustee will transfer you to the Personal Service division of the Fund. You will retain the lower fee rate that applies in the Employer Plan. This lower fee rate would also apply if you transferred to the Pension Service division of the Fund. Outperformance fees The Trustee may receive an outperformance fee, which is calculated as 15.38% of the difference between the returns for each investment option and that option’s benchmark return. The outperformance fee is calculated monthly, with a carry forward of any underperformance for up to six (6) months. The outperformance fee is paid monthly by deduction from the unit price. The Trustee reserves the right to substitute another index should the current benchmark cease to be published or change its composition sufficiently to render it inappropriate. The current benchmark is the Morningstar peer-group super multisector benchmark, for portfolios ranging from conservative through to aggressive depending on the strategic asset allocation of each investment option. Distributions The PST will not distribute any income or capital gains directly to investors. All investment earnings are reflected in the unit prices for the PST.

Fees payable to a financial adviser If you have a financial adviser additional fees may be paid to them. These will be set out in the Statement of Advice your adviser gives you. You may be able to negotiate the fees with your adviser. The Trustee will deduct your adviser’s fees from your account only if you authorise this.



More information

1. You should read the important information about the fees and costs before making a decision. Go to the Reference Guide and the Investment Guide at www. equitysuper.com.au/equitysuperemployer. 2. The material relating to fees and costs may change between the time when you read this Statement and the day you aquire the product.

6

EquitySuper PST Product Disclosure Statement / 2014

7. How super is taxed You should provide your Tax File Number (‘TFN’) when you join the fund. If we do not receive your TFN: • • • •

your concessional contributions will be taxed at the highest marginal rate we will not be able to accept your non-concessional contributions you may pay more tax on your benefits than otherwise required it will be more difficult to search for your lost super



More information

1. You should read the information regarding how your super is taxed in our Reference Guide at www.equitysuper. com.au/equitysuperemployer. 2. The material relating to how your super is taxed may change between the time when you read this Statement and the day you acquire the product.

The Government currently provides a number of tax incentives to encourage super contributions and there are a number of ways that super is taxed. Tax applies to:

Tax payable

15%*

Employer contributions and any contributions that you have deducted from your pay before tax is taken out of your pay. Contribution tax is deducted from your account.

Nil

Personal contributions made from your after-tax pay or savings. Please note there will be taxation consequences if the contribution caps exceed the government limits. Withdrawals from your account if you are aged less than 60 depend on your circumstances. This tax will be deducted from your benefit before it is paid to you.

Nil - 15%

See Reference Guide

Nil

Withdrawals from your account if you are aged 60 or over.

15% 10%

Tax on earnings: a. investment earnings b. capital gains, held for a year or more Tax on earnings is reflected in the investment option’s unit price and is not deducted directly from your account.

Nil

Tax on earnings for pension accounts. *

The tax rate is higher for individuals with high levels of income ($300,000 or more) based on calculations in tax legislation.

Tax on lump sum withdrawals below age 60 Tax‑free component

Taxable component

Under preservation age

Nil

20% plus Medicare Levy.

Preservation age up to 59 years

Nil

First $185,000 (2014/15 financial year) tax-free. Balance taxed at 15% plus Medicare Levy.

Aged 60 and over

Nil

Tax-free

Note: The Medicare Levy is 2% for financial years commencing from 1 July 2014.

7

EquitySuper PST Product Disclosure Statement / 2014

8. How to open an account Minimum investment The minimum initial investment in the PST is currently set at $50,000. However, the Trustee may at is discretion accept investments that are lower than this amount.

Minimum withdrawal The Trustee reserves the right to set the minimum amount that can be redeemed from time to time.

Eligible Investors Under the Superannuation Industry (Supervision) Act 1993 (‘SIS’), PSTs can only accept contributions from certain eligible investors. The following entities are eligible to invest in the PST: • Regulated Superannuation Funds; • Approved deposit Funds; • Pooled Superannuation Trusts; and • Life Insurance Companies and other organisations in respect of complying superannuation business. To ensure compliance with SIS, the Trustee will only accept contributions for the PST from the above eligible investors.

Not sure what to do next? Visit us at www.equitysuper.com.au or call us on 1300 659 799 and our team will be happy to help you make the right decisions to ensure you can enjoy our benefits now and relax later.

Contact us

Equity Trustees Superannuation Limited (‘ETSL’) ABN 50 055 641 757; AFSL 229757



Level 4, 124 Walker Street, North Sydney NSW 2060

PWS-ETSL-PDS0026_01072014

Telephone 1300 659 799 Facsimile 1300 369 799 Email [email protected] Internet www.equitysuper.com.au

8

EquitySuper PST Product Disclosure Statement / 2014

INVESTMENT GUIDE

for EquitySuper Pooled Superannuation Trust

The information in this document forms part of the Product Disclosure Statement of EquitySuper Pooled Superannuation Trust dated 4 July 2014. 4 July 2014

INTRODUCTION

We know that we all have individual attitudes towards investing. It is important to make decisions that are suitable for fund members. EquitySuper PST investments offer: • • • •

Strong long-term investment performance A high-quality range of both diversified and single sector investment options A multi manager approach that allows for additional diversification and the selection from a wide range of some of the leading fund managers Daily unit pricing

General advice warning The information contained in this Investment Guide is general in nature and does not take into account your objectives, financial situation or needs. Before acting on this information you need to consider its appropriateness in light of your own objectives, financial situation and needs. Professional advice is recommended.

1 / Investment Guide - EquitySuper Pooled Superannuation Trust / 2014

CONTENTS Understanding your investment choice 3 Investment options in the Fund 3 The eleven investment options 3 Selecting your investment option

4

Factors to consider 4 Investment Options 4 Diversified investment options summary 5 Sector specific investment options summary 7 Making and changing investment options 9 Buy and sell prices for unitised account

9

Calculation of unit prices 9 Investment return on each option 9 Applications and redemptions 9 Valuations 10 Standard Risk Measure 10 Additional information 10 Changes to investment options and underlying investment managers

10

Labour, environmental, social and ethical considerations

10

Use of Derivatives 10 Investment strategy 10 Defined fees 11

2 / Investment Guide - EquitySuper Pooled Superannuation Trust / 2014

You can choose the way your money is invested in EquitySuper PST and there are a number of options for you to select from. Read this guide to learn about the investment options in EquitySuper PST. Investment options in the Fund You can choose the way your money is invested in EquitySuper PST by selecting from the eleven investment options described in this guide. Each investment option involves a different level of investment risk, together with a different expected level of earnings (return) on your investment. This is because each investment option is made up of different proportions of growth assets and defensive assets. Historically, growth assets such as Australian and overseas shares, and property, carry a higher level of investment risk over shorter periods, with the possibility of higher returns over the longer term. Returns may be negative in some years. Defensive assets such as bonds and cash deposits have a lower investment risk, but usually offer lower returns in the long run. Growth assets are types of investments that have the potential to grow over the long term but are also likely to experience volatility (ups and downs) in performance from year to year. Defensive assets are types of investments used when trying to protect the investment from the chance of a negative return (in other words the value of the investment falls). Defensive assets tend to produce lower long-term returns but are more stable than growth assets. The eleven investment options Six pre-mixed investment options that fit typical risk profiles. Each pre-mixed investment option invests in a different combination of specific asset classes such as Australian shares, international shares, property, fixed interest and cash. The pre-mixed investment options allow you to easily identify the investment strategy that matches your risk profile. The risk/return graph shows where each of the six pre-mixed investment options fit in the risk and return trade off. As the risk of each strategy increases, so does the allocation to growth assets. However, the potential for higher returns also increases. Five sector investment options that supplement the six pre-mixed investment options and cater for additional risk profiles. Each sector investment option invests in a specific asset class only. The sector investment options allow you to allocate some or all of your account to specific asset classes such as Australian shares, international shares, property, fixed interest and cash.

High

Key:

All Equities Defensive Assets Growth

Growth Assets

Risk



Understanding your investment choice

Retirement Growth

Balanced Growth

Balanced

Capital Stable High Low

Return

3 / Investment Guide - EquitySuper Pooled Superannuation Trust / 2014

For the diversified options, the strategic allocations to the asset classes are fixed and focus on the long-term objectives of each investment option. The asset allocations of the strategies are regularly rebalanced to reflect long-term asset allocations. This ensures that the overall strategy is followed and the strategic differences are maintained. The strategic allocations for each asset class in the investment options are set out in the investment options table. Each investment option is valued on a basis that reflects the changes in the value of its underlying investments. Any changes in value are allocated to members through changes in the unit price. You need to be aware, however, that the value of your investments in EquitySuper PST may rise or fall. If you leave EquitySuper PST within a few years of joining, you may get back less than the amount of contributions paid because of the level of investment returns earned by EquitySuper PST, it’s charges and the impact of tax.

Selecting your investment option Factors to consider When choosing your investment strategy, you should consider your investment objectives: 1. The amount of time your money will be invested before you use your money in retirement. Depending on when you were born, government rules generally mean that you cannot access your super until you’re aged at least 55. Even once you’ve retired, you may choose to remain invested for a longer period to give you more income in retirement.

If you have a long time frame until retirement, you may consider focusing on investments that have a high proportion of Growth Assets. You may choose over a longer time frame to ride out the inevitable ups and downs of investment markets, in expectation of higher returns over the long-term.

On the other hand, if you have a short time frame until retirement, and it is important to avoid short term falls in the value of your super, a more conservative approach may be more appropriate.

2. The level of risk with which you are comfortable for your retirement savings. Most investments involve some level of risk; the uncertainty of an investment not earning what it is expected to earn. Because some investments are more volatile than others (their yearly returns fluctuate from year to year), having a choice of investment options means that you can have some control over how much risk and volatility you want to take (see ‘Risks of super’ in the PDS).

Investing most of your super in defensive assets over the long term also carries a risk, the risk that your super won’t keep pace with inflation.

If your super money doesn’t grow as fast as inflation, your super could lose buying power and you may end up with a smaller nest egg than required.

3. The level of investment earnings (return) that you are hoping for. Investment returns, including the capital from any of the investment options, are not guaranteed.

The higher the percentage invested in growth assets, the greater the possible return but also the greater the likelihood of a negative return in the short term (in other words, your account balance falling in value).

Set realistic return outcomes by balancing the time you have to invest and the risks you are willing to bear.

Investment Options EquitySuper offers members the choice of six diversified investment options and five sector specific investment options which are detailed on the following pages.

4 / Investment Guide - EquitySuper Pooled Superannuation Trust / 2014

Diversified Investment Options Summary

Asset class

Asset Allocation ranges and neutral position (see note 5) Capital Stable

Balanced

Balanced Growth

30% Growth Assets 70% Defensive Assets

57.5% Growth Assets 42.5% Defensive Assets

65% Growth Assets 35% Defensive Assets

17.5% 30%

40%

25%

12.5%

22.5%

7.5%

7.5%

35% 30%

Asset allocation ranges

15% 5%

10%

Australian Shares International Shares Property Fixed Interest Cash

10 - 25 5 - 20 0 - 15 30 - 60 15 - 40

22.5%

20%

Australian Shares International Shares Property Fixed Interest Cash

15 - 35 10 - 30 0 - 15 15 - 50 5 - 25

Australian Shares International Shares Property Fixed Interest Cash

20 - 50 15 - 40 5 - 20 5 - 50 0 - 25

To provide a stable, income-based return with a low exposure to capital growth.

To provide a balanced income and capital growth-based return.

To provide a capital growth-based return with a low exposure to income-generating assets.

Between 15% and 50% in growth assets (i.e. Aust. & Int. shares and property with the remainder 50% - 85% invested in defensive assets (i.e. cash and fixed interest).

Between 30% and 80% in growth assets (i.e. Aust. & Int. shares and property) with the remainder 20% - 70% invested in defensive assets (i.e. cash and fixed interest).

Between 40% and 90% in growth assets (i.e. Aust. & Int. shares and property) with the remainder 10% - 60% invested in defensive assets (i.e. cash and fixed interest).

Investment return objective (see note 1)

Inflation + 2% pa over rolling 5 year periods

Inflation + 3% pa over rolling 5 year periods

Inflation + 4% pa over rolling 5 year periods

Risk level of the option (see note 2)

Level 3 Low to Medium

Level 4 Medium

Level 5 Medium to High

Minimum suggested time frame

3 years

5 years

5 years

Suitable for members seeking a diversified investment over a broad range of asset classes, in order to achieve a stable income-based return with a low exposure to capital growth.

Suitable for members seeking a diversified investment over a broad range of asset classes, in order to achieve moderate income and capital growth-based return.

Suitable for members seeking a diversified investment over a broad range of asset classes, in order to achieve a diversified capital growth-based return with moderate income.

Indirect cost ratio (see note 3)

0.67%

0.73%

0.79%

Buy/sell spread (see note 4)

0.10%

0.20%

0.20%

Investment objective

What are the main investments?

Investor suitability

Notes to Investment Summary 1. The investment objective is the investment return this option will seek to achieve after fees and taxes. It is the amount above the increase in the rate of inflation (as measured by changes in the Consumer Price Index). For example, for the Balanced Option, if the inflation rate is 2.3% pa over 5 year periods then the objective return would be 5.3% per annum over the 5 year period. 2. See Standard Risk Measure later on in this Guide. 3. See the explanation of ICR in the Reference Guide. The number is an estimate and actual fees and costs may differ from the estimate. For the MyEquitySuper option, the estimate is based on the level of fees and costs incurred from inception on 1 January 2014 to 31 May 2014. For other investment options, the estimate is based on the level of fees and costs for the financial year ended 30 June 2013. 4. This is the difference between the unit buy price and unit sell price expressed as a percentage of the market value of each investment option unit. See Unit buy and sell prices later in this Guide. 5. The investment mix of each Investment Option is actively adjusted within the asset sector ranges shown in the above table. The “neutral” position is the option’s benchmark and the mix is varied around the benchmark according to the Trustee’s views of the relative risks and returns of each asset sector. The success of this active decision making is measured relative to the performance of a portfolio allocated according to the benchmark.

5 / Investment Guide - EquitySuper Pooled Superannuation Trust / 2014

Diversified Investment Options Summary

Asset class

Asset Allocation ranges and neutral position (see note 4) Retirement Growth

Growth

All Equities

72.5% Growth Assets 27.5% Defensive Assets

80% Growth Assets 20% Defensive Assets

100% Growth Assets

10%

17.5%

7.5%

12.5%

12.5%

10% 10% 52.5% 42.5%

37.5% 27.5%

25%

Asset allocation ranges

35%

Australian Shares International Shares Property Fixed Interest Cash

Australian Shares International Shares Property Fixed Interest Cash

20 - 50 15 - 40 5 - 20 5 - 50 0 - 25

25 - 60 15 - 50 5 - 20 0 - 25 0 - 15

Australian Shares International Shares Property Fixed Interest Cash

30 - 70 20 - 50 5 - 20 0 0 - 10

To provide a capital growth-based return with a low exposure to income-generating assets.

To provide a capital growth-based return with a very low exposure to income-generating assets.

To provide a capital growth-based return with a very low exposure to income-generating assets.

Between 40% and 90% in growth assets (i.e. Aust. & Int. shares and property) with the remainder 10% - 60% invested in defensive assets (i.e. cash and fixed interest).

Between 60% and 100% in growth assets (i.e. Aust. & Int. shares and property) with the remainder 0% - 40% invested in defensive assets (i.e. cash and fixed interest).

Between 80% and 100% in growth assets (i.e. Aust. & Int. shares and property) with the remainder 0% - 20% invested in defensive assets (i.e. cash and fixed interest).

Investment return objective (see note 1)

Inflation + 4% pa over rolling 5 year periods

Inflation + 4.5% pa over rolling 5 year periods

Inflation + 5% pa over rolling 5 year periods

Risk level of the option (see note 2)

Level 5 Medium to High

Level 6 High

Level 6 High

Minimum suggested time frame

5 years

7 years

7 years

Suitable for members seeking a diversified investment over a broad range of asset classes, in order to achieve a diversified capital growth-based return with moderate income.

Suitable for members seeking a diversified investment over a broad range of asset classes, in order to achieve a capital growth-based return with some income.

Suitable for members seeking a diversified investment over a broad range of asset classes, in order to achieve a capital growth-based return with low income.

Indirect cost ratio (see note 3)

0.81%

0.85%

0.88%

Buy/sell spread (see note 4)

0.30%

0.30%

0.30%

Investment objective

What are the main investments?

Investor suitability

(See notes on page 5.)

6 / Investment Guide - EquitySuper Pooled Superannuation Trust / 2014

Sector Specific Investment Options Summary

Asset class

Asset Allocation Cash

Cash

Investment objective

What are the main investments?

Investment return objective (see note 1)

Fixed Interest

100%

Fixed Interest

Property

100%

Property

100%

To provide security of capital, liquidity and a rate of return based upon prevailing money market cash rates.

To provide an income-based investment that is tied to the Australian and International fixed interest market.

100% in quality short-term money market cash and short term deposits.

100% in medium to long-term fixed interest securities issued by the Australian and International Governments and corporate issuers.

100% in property listed on Australian and international stock markets (and may include direct property).

Inflation + 2% pa over rolling 5 year

Inflation + 2.5% pa over rolling 5 year period

To keep pace with inflation

To provide an investment that is comprised of both income and capital growth.

Risk level of the option (see note 2)

Level 1 Very Low

Level 3 Low to Medium

Level 5 Medium to High

Minimum suggested time frame

Less than 1 year

3 years

5 years

Suitable for members who have no minimum time period and seeking 100% capital stability by investing in cash to achieve an income return.

Suitable for members seeking a diversified Australian fixed interest exposure to achieve a moderate income return.

Suitable for members seeking a diversified property exposure, in order to achieve a capital growthbased return with moderate income.

0.42%

0.65%

0.75%

0%

0%

0.30%

Investor suitability

Indirect cost ratio (see note 3) Buy/sell spread (see note 4)

Notes to Investment Summary 1. The investment objective is the investment return this option will seek to achieve after fees and taxes. It is the amount above the increase in the rate of inflation (as measured by changes in the Consumer Price Index). For example, for the Balanced Option, if the inflation rate is 2.3% pa over 5 year periods then the objective return would be 5.3% per annum over the 5 year period. 2. See Standard Risk Measure later on in this Guide. 3. See the explanation of ICR in the Reference Guide. The number is an estimate and actual fees and costs may differ from the estimate. For the MyEquitySuper option, the estimate is based on the level of fees and costs incurred from inception on 1 January 2014 to 31 May 2014. For other investment options, the estimate is based on the level of fees and costs for the financial year ended 30 June 2013. 4. This is the difference between the unit buy price and unit sell price expressed as a percentage of the market value of each investment option unit. See Unit buy and sell prices later in this Guide. 5. The investment mix of each Investment Option is actively adjusted within the asset sector ranges shown in the above table. The “neutral” position is the option’s benchmark and the mix is varied around the benchmark according to the Trustee’s views of the relative risks and returns of each asset sector. The success of this active decision making is measured relative to the performance of a portfolio allocated according to the benchmark.

7 / Investment Guide - EquitySuper Pooled Superannuation Trust / 2014

Sector Specific Investment Options Summary

Asset class

Asset Allocation Australian Shares

Australian Shares

Investment objective

What are the main investments?

100%

International Shares

International Shares 100%

To provide an investment that is comprised of both income and capital growth from a broad range of businesses exposed to the Australian economy.

To provide an investment that is comprised of both income and capital growth from a broad range of businesses diversified across various economies.

100% in shares listed on the Australian stock market.

100% in shares listed international stock markets.

on

Investment return objective (see note 1)

Inflation + 5% pa over rolling 5 year period

Inflation + 5% pa over rolling 5 year period

Risk level of the option (see note 2)

Level 6 High

Level 6 High

Minimum suggested time frame

7 years

7 years

Suitable for members seeking a diversified Australian share exposure, in order to achieve a capital growth-based return with low income.

Suitable for members seeking a diversified international share exposure, in order to achieve a capital growth-based return with low income.

Indirect cost ratio (see note 3)

0.78%

0.93%

Buy/sell spread (see note 4)

0.50%

0.20%

Investor suitability

(See notes on page 7.)

8 / Investment Guide - EquitySuper Pooled Superannuation Trust / 2014

Making and changing investment options Investment switches will be effective on the same business day if received before 4 pm; otherwise they will be effective on the next business day. No fee is payable for making a switch, but you will incur the buy and sell Unit Price Spread of the option you are switching to: the unit sell price will be used for the amount switched out of your existing option and the unit buy price for the option you are about to invest in. Your investment change (switch) will be made using the unit buy and sell prices calculated at the next daily unit price calculation after we receive your request to change investment options. The unit sell price will be used for the amount switched out of your existing investment option, and the unit buy price will be used for the investment option you are about to invest in. Buy and sell prices for unitised account On joining the PST we open an account for you and express the account balance as a number of units in the investment option selected by you. Your unitised account then works as follows: When contributions or rollovers are received on your behalf your account will be credited with a number of units.

 The number of units depends on the amount of the contribution (or rollover) and the unit buy price applying on the date that the transaction is processed.

 The number of units will be the transaction amount divided by the unit buy price, for example, contribution of $100, unit buy price $1.5000, number of units credited to your account is $100/$1.5000 = 66.6667.

 When money is paid out of your account, your account will be debited with a number of units in a similar way, but the unit price will be the unit sell price; for example benefit payment of $3,000, unit exit price 1.4940, number of units debited to your account is $3,000/$1.4940 = 2,008.0321.

Calculation of unit prices Unit prices for an investment option are based on the market value of the investments held for that particular option: • The unit prices change in line with changes in the market value of the investments held. • Unit prices are calculated daily throughout the business week. • The market value unit price is the market value of the investment’s held for the option less an allowance for accrued tax on investments and management costs divided by the number of investment units issued to members in that option. • The unit buy price is the market value unit price plus the costs per unit of purchasing investments for that option. • The unit sell price is the market value price less the costs (including tax and fees) per unit of selling the investments of the option. • The value of your account at any time is ‘the number of units held by you’ multiplied by the unit sell price; for example number of units 5,000, unit sell price $1.4940, so your account would be: 5,000 x $1.4940 = $7,470.00. Investment Return on each option For a particular period, the investment return of an option will be the increase in the unit sell price over the period divided by the unit sell price at the start of the period. For example: • Unit sell price at end of period $1.4940. • Unit sell price at start of period $1.3935. • Investment return of the option = ($1.4940 - $1.3935)/$1.3935 = 7.2% for the period. • The actual return on your account may be different depending on your account transactions that occurred during the period. Applications and redemptions An initial application to invest in EquitySuper PST must be made using the Application Form, which is available online or by calling 1300 659 799. Further applications, or redemptions can be made by forwarding a written instruction to the Trustee at the address shown at the end of this Guide. As a result of the investment structure of the EquitySuper PST, investments can usually be readily realised. Redemptions will normally be completed within 14 days of the initial redemption request. The time to complete any redemption, however, may be longer depending on the terms and conditions of each of the investments made by the pool backing that unit.

9 / Investment Guide - EquitySuper Pooled Superannuation Trust / 2014

Valuations EquitySuper PST will be valued at intervals determined by the Trustee as appropriate. In practice, a minimum of weekly valuations and a month-end valuation applies.

Standard Risk Measure The Standard Risk Measure is based on industry guidance to allow members to compare investment options that are expected to deliver a similar number of negative annual returns over any 20 year period. The risk band levels are:

Risk band

Risk label

Estimated number of negative annual returns over any 20 year period

1

Very low

Less than 0.5

2

Low

0.5 to less than 1

3

Low to Medium

1 to less than 2

4

Medium

2 to less than 3

5

Medium to High

3 to less than 4

6

High

4 to less than 6

7

Very high

6 or greater

Additional information Changes to investment options and underlying investment managers The Trustee will regularly review the performance and structure of the investment options and the underlying investment managers and may make changes to them from time to time. You will be notified of any changes after the changes occur, unless otherwise required by law. Labour, environmental, social and ethical considerations Investment decisions are primarily based on economic factors and the Trustee does not specifically take into account labour standards or environmental, social or ethical considerations. The various investment managers of the underlying funds may have their own policies concerning labour standards or considerations of an environmental, social or ethical nature. Use of Derivatives Under the Trustee’s derivatives policy, the Trustee may use derivatives such as exchange traded futures or options from time to time in a fiduciary capacity for risk management and currency hedging. Underlying investment managers may also use derivatives as part of their overall investment process in accordance with their underlying investment managers’ authorised investments and procedures. When derivatives are used by underlying investment managers, appropriate risk controls are in place as evidenced by compliance to Derivatives Risk Statements (‘DRS’). In most cases, underlying investment managers use derivatives for risk management purposes only and not for speculation. However, in some cases underlying investment managers, such as hedge funds may use derivatives to take advantage of opportunities for profit. Investment Strategy The Trustee offers members investment choice from a range of fund-of-funds (multi-manager) diversified and sector strategies with differing risk profiles. The Trustee seeks to reduce risk and optimise returns by: • Investing according to the recommended time frame for the various diversified and sector strategies; and • The fund-of-funds (multi-manager) approach - where investments are spread across various investment managers - which eliminates the risk associated with investing in single manager funds. The Trustee is responsible for the Fund’s selection of underlying managers, asset allocation and currency management. Investment managers are selected utilising internal research and manager review analysis in consultation with an independent asset consultant. The Fund is constructed to provide exposure to a blend of highly regarded underlying managers with complementary styles.

10 / Investment Guide - EquitySuper Pooled Superannuation Trust / 2014

The Trustee is responsible for the Fund’s selection of underlying managers, asset allocation and currency management. Investment managers are selected utilising internal research and manager review analysis in consultation with an independent asset consultant. The Fund is constructed to provide exposure to a blend of highly regarded underlying managers with complementary styles. The managers for the diversified fund-of-funds are constructed from the sector-specialists managers. The Trustee believes that a sector-specialist approach to investment management will maximise the long-term returns of its members by: • accessing a broad range of leading specialist investment managers, • thereby providing a greater level of diversification than a single-manager approach, and • allowing the Trustee greater flexibility in effecting investment manager decisions.

Defined fees Below are the definitions of the types of fees and costs that may apply to your superannuation. Type of fee or cost

Definition

How it applies to your account

Activity fee

A fee is an activity fee if: a. the fee relates to costs incurred by the trustee, or the trustees, of a superannuation entity that are directly related to an activity of the trustee, or the trustees:

Please refer to the Additional explanation of fees and costs section for more information regarding activity fees.

• that is engaged in at the request, or with the consent, of a member; or • that relates to a member and is required by law; and b. 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 a superannuation entity and includes costs incurred by the trustee, or the trustees, of the entity that:

To view the administration fees you will pay for the MyEquitySuper option refer to the PDS found at www.equitysuper.com.au/ equitysuperemployer.

a. relate to the administration or operation of the fund; and

To view the administration fees you will pay for other investment options refer to the Fees and other costs section in this document.

a. 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 fees

A fee is an advice fee if: a. the fee relates directly to costs incurred by the trustee, or the trustees, of a superannuation entity because of the provision of financial product advice to a member by: • trustee of the entity; or

Please refer to the Additional explanation of fees and costs section for more information regarding administration fees. The Fund does not pay for any costs of financial product advice provided to members.

• another person acting as an employee of, or under an arrangement with, a trustee or trustees of the entity; and b. 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 by the trustee, or the trustees, of a superannuation entity in relation to the sale and purchase of assets of the entity.

To view the buy/sell spreads for each investment option refer to the Investment Guide found at www.equitysuper.com.au/ equitysuperemployer.

Exit fees

An exit fee is a fee to recover the costs of disposing of all or part of members’ interests in a superannuation entity.

To view the exit fees you will pay for the MyEquitySuper option refer to the PDS found at www.equitysuper.com.au/equitysuperemployer To view the exit fees you will pay for other investment options refer to the Fees and other costs section in this document.

11 / Investment Guide - EquitySuper Pooled Superannuation Trust / 2014

Indirect cost ratio

The indirect cost ratio (‘ ICR’ ), for an investment option offered by a superannuation entity, is the ratio of the total of the indirect costs for the investment option, to the total average net assets of the superannuation entity attributed to the investment option. Note: A dollar-based fee deducted directly from a member’s account is not included in the indirect cost ratio.

Investment fees

An investment fee is a fee that relates to the investment of the assets of a superannuation entity and includes:

To view the ICR for the MyEquitySuper option refer to the PDS found at www.equitysuper.com. au/equitysuperemployer. To view the ICR for other investment options refer to the refer to the Investment Guide found at www.equitysuper.com.au/ equitysuperemployer. Please refer to the Additional explanation of fees and costs section for more information regarding the Indirect cost ratio. The investment fees and costs are included in the Indirect cost ratio.

a. fees in payment for the exercise of care and expertise in the investment of those assets (including performance fees); and b. costs incurred by the trustee, or the trustees, of the entity that: • relate to the investment of assets of the entity; and • 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. Insurance fee

A fee is an insurance fee if: a. the fee relates directly to either or both of the following:

To view the fees you will pay for insurance refer to the Insurance Guide found at www.equitysuper.com.au/equitysuperemployer.

• insurance premiums paid by the trustee, or the trustees, of a superannuation entity in relation to a member or members of the entity; • 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. Switching fees

A switching fee is a fee to recover the costs of switching all or part of a member’s interest in a superannuation entity from one class of beneficial interest in the entity to another.

12 / Investment Guide - EquitySuper Pooled Superannuation Trust / 2014

There are no switching fees.

INVESTMENT GUIDE

EquitySuper Pooled Superannuation Trust





Contact us

Trustee: Equity Trustees Superannuation Limited ABN 50 055 641 757; AFSL 229757

Level 4, 124 Walker Street, North Sydney NSW 2060



Fund: EquitySuper PST ABN 50 139 419 712

Telephone 1300 659 799 Facsimile 1300 369 799 Email [email protected] Internet www.equitysuper.com.au

13 / Investment Guide - EquitySuper Pooled Superannuation Trust / 2014