ANZ PRIVATE INVESTMENT MANAGEMENT SERVICE - Praemium

 
 
ANZ PRIVATE
       INVESTMENT MANAGEMENT SERVICE

                                                     INVESTMENT MENU

                                                  DATED 15 MARCH 2019
        THIS INVESTMENT MENU IS ISSUED BY PRAEMIUM AUSTRALIA LIMITED
                                         ABN 92 117 611 784 AFSL 297956

				           THE INFORMATION IN THIS DOCUMENT FORMS PART OF THE
                       ANZ PRIVATE INVESTMENT MANAGEMENT SERVICE
          PRODUCT DISCLOSURE STATEMENT (PDS) DATED 4 FEBRUARY 2019

                                                                    1
CONTENTS

Model Portfolio features at a glance                         3

Model Portfolio Managers and Model profiles                  7

ANZ Dynamic 100 Diversified (Tax Payer) Portfolio            8

ANZ Dynamic 100 Diversified (Non-Tax Payer) Portfolio        9

ANZ Dynamic 70 Diversified Portfolio                        10

ANZ Dynamic 50 Diversified Portfolio                        11

ANZ Dynamic 30 Diversified Portfolio                        12

ANZ Australian Equities Income (Tax Payer) Portfolio        13

ANZ Australian Equities Income (Non-Tax Payer) Portfolio    14

ANZ Australian Equities Capital (Tax Payer) Portfolio       15

ANZ Australian Equities Capital (Non-Tax Payer) Portfolio   16

ANZ Dynamic International Equities Portfolio                17

ANZ Australian Fixed Income Portfolio                       18

ANZ Active International Equities Portfolio                 19

ANZ Enhanced Yield Portfolio                                20

ANZ Dynamic Fixed Income Portfolio                          21

ANZ International Fixed Income Portfolio                    22

ANZ Australian Small Companies SIV Portfolio                23

Managed Account Cash                                        24

2
MODEL PORTFOLIO FEATURES AT A GLANCE

A range of Model Portfolios designed to assist you in achieving your investment objectives are available. The main features of the Model
Portfolios are contained below. Additional information on each Model can be found on the following pages.

  Model Portfolio                          ANZ                                       ANZ                                        ANZ                                            ANZ
  name                                     Dynamic 100 Diversified                   Dynamic 100 Diversified                    Dynamic 70 Diversified                         Dynamic 50 Diversified
                                           (Tax Payer) Portfolio                     (Non-Tax Payer) Portfolio                  Portfolio                                      Portfolio

  Code                                     AN0001                                    AN0002                                     AN0003                                         AN0004

  Principal                                Over the long term, the                   Over the long term, the                    Over the long term, the                        Over the long term, the
  investment                               Model Portfolio objective                 Model Portfolio objective                  Model Portfolio objective                      Model Portfolio objective
  objective                                is to outperform inflation,               is to outperform inflation,                is to outperform inflation,                    is to outperform inflation,
                                           as measured by the                        as measured by the CPI,                    as measured by the CPI, by                     as measured by the CPI,
                                           CPI, by 5% p.a. (before                   by 5% p.a. (before tax &                   4% p.a. (before tax & before                   by 3% p.a. (before tax &
                                           tax & before fees) over                   before fees) over rolling                  fees) over rolling 10 year                     before fees) over rolling
                                           rolling 10 year periods.                  10 year periods. In the                    periods. In the medium term,                   10 year periods. In the
                                           In the medium term,                       medium term, the Model                     the Model Portfolio aims                       medium term, the Model
                                           the Model Portfolio                       Portfolio aims to generate                 to generate a total return                     Portfolio aims to generate
                                           aims to generate a total                  a total return that exceeds                that exceeds the weighted                      a total return that
                                           return that exceeds                       the weighted average                       average return of the                          exceeds the weighted
                                           the weighted average                      return of the benchmark                    benchmark portfolio.                           average return of the
                                           return of the benchmark                   portfolio.                                                                                benchmark portfolio.
                                           portfolio.

  Can derivatives be used?                 Yes                                       Yes                                        Yes                                            Yes

  Indicative number of                     Min of 20                                 Min of 20                                  Min of 20                                      Min of 20
  stocks

  Minimum Model                            No fixed minimum1                         No fixed minimum1                          No fixed minimum1                              No fixed minimum1
  investment

  Fees2
  Up to $1,000,000                         0.99%                                     0.99%                                      0.99%                                          0.99%
  $1,000,001 – $2,000,000                  0.85%                                     0.85%                                      0.85%                                          0.85%
  $2,000,001 – $5,000,000                  0.75%                                     0.75%                                      0.75%                                          0.75%
  More than $5,000,000                     0.62%                                     0.62%                                      0.62%                                          0.62%

  Indirect Cost Ratio                      0.30%                                     0.26%                                      0.28%                                          0.26%
  (approx)3

  Benchmark Index                         • 37.5% - S&P/ASX 300                     • 46% - S&P/ASX 300                      • 26% - S&P/ASX 300                             • 18% - S&P/ASX 300
                                            Accumulation Index                        Accumulation Index                       Accumulation Index                              Accumulation Index
                                          • 26% - MSCI World Index                  • 20% - MSCI World Index (Ex             • 18.5% - MSCI World Index (Ex                  • 15.5% - MSCI World Index
                                            (Ex Australia) Net Return                 Australia) Net Return in A$              Australia) Net Return in A$                     (Ex Australia) Net Return
                                            in A$                                   • 11% - MSCI All Countries               • 9.5% - MSCI World Index (Ex                     in A$
                                          • 13.5% - MSCI World Index                  (AC) World Index (Ex                     Australia) Net Return hedged                  • 6.5% - MSCI World Index
                                            (Ex Australia) Net Return                 Australia) Net Return                    to A$                                           (Ex Australia) Net Return
                                            hedged to A$                              hedged to A$                           • 4% - MSCI Emerging Markets                      hedged to A$
                                          • 6% - MSCI Emerging                      • 6% - MSCI Emerging                       Net Total Return Index in A$                  • 5% - Bloomberg Aus Bond
                                            Markets Net Total Return                  Markets Net Total Return               • 6% - Bloomberg Aus Bond Bank                    Bank Bill Index (plus 4%)
                                            Index in A$                               Index in A$                              Bill Index (plus 4%)                          • 2.5% - FTSE EPRA/NAREIT
                                          • 7% - Bloomberg Aus Bond                 • 7% - Bloomberg Aus Bond                • 3% - FTSE EPRA/NAREIT                           Developed Rental ex
                                            Bank Bill Index (plus 4%)                 Bank Bill Index (plus 4%)                Developed Rental ex Australia                   Australia Net Return
                                          • 3.5% - FTSE EPRA/NAREIT                 • 3.5% - FTSE EPRA/NAREIT                  Net Return Hedged in $A                         Hedged in $A
                                            Developed Rental ex                       Developed Rental ex                    • 3% - FTSE Developed Core                      • 2.5% - FTSE Developed
                                            Australia Net Return                      Australia Net Return Hedged              Infrastructure Index Hedged                     Core Infrastructure Index
                                            Hedged                                    in $A                                    in $A                                           Hedged in $A
                                          • 3.5% - FTSE Developed                   • 3.5% - FTSE Developed Core             • 12% - Bloomberg Aus Bond                      • 21% - Bloomberg Aus Bond
                                            Core Infrastructure Index                 Infrastructure Index Hedged              Composite Bond Index                            Composite Bond Index
                                            Hedged in $A                              in $A                                  • 8% - Barclays Global Aggregate                • 14% - Barclays Global
                                          • 3% - Aus Bond Bank Bill                 • 3% - Aus Bond Bank Bill                  Index Hedged                                    Aggregate Index Hedged
                                            Index                                     Index                                  • 10% - Aus Bond Bank Bill Index                • 15% - Aus Bond Bank Bill
                                                                                                                                                                               Index

1.The minimum investment for the ANZ Private Investment Management Service is currently $250,000. Your adviser will assist you to determine the appropriate amount per Model Portfolio. See also the information
   under “How the SMA works” in the PDS.
2.The Fee is tiered – for example an Account balance of $2,000,000 in the ANZ Dynamic 100 Diversified (Tax Payer) Model Portfolio would be charged 0.99% for the first $1,000,000 and 0.85% for the next $1,000,000.
3. The Indirect Cost Ratio is deducted by the underlying managed fund/ETF prior to striking a unit price, this fee is not separately deducted from your account.
                                                                                                                                                                                                                       3
Model Portfolio                              ANZ                                               ANZ                                        ANZ                                       ANZ
    name                                         Dynamic 30 Diversified                            Australian Equities                        Australian Equities                       Australian Equities
                                                 Portfolio                                         Income (Tax Payer)                         Income (Non-Tax Payer)                    Capital (Tax Payer)
                                                                                                   Portfolio                                  Portfolio                                 Portfolio

    Code                                         AN0005                                            AN0006                                     AN0007                                    AN0008

    Principal                                    Over the long term, the                           The Model Portfolio aims                   The Model Portfolio aims                  The Model
    investment                                   Model Portfolio objective is                      to generate high dividend                  to generate high dividend                 Portfolio aims
    objective                                    to outperform inflation, as                       income and generate a                      income and generate a                     to generate
                                                 measured by the CPI, by 2.5%                      total return which has                     total return which has                    capital growth
                                                 p.a. (before tax & after fees)                    lower volatility when                      lower volatility when                     that exceeds the
                                                 over rolling 10 year periods. In                  compared to the levels                     compared to the levels                    S&P/ASX 300
                                                 the medium term, the Model                        experienced by the S&P/                    experienced by the S&P/                   Accumulation
                                                 Portfolio aims to generate a                      ASX 200 Accumulation                       ASX 200 Accumulation                      Index , over rolling
                                                 total return that exceeds the                     index over rolling three                   index over rolling three                  three year periods.
                                                 weighted average return of the                    year periods.                              year periods.
                                                 benchmark portfolio

    Can derivatives                              Yes                                               Yes                                        Yes                                       Yes
    be used?

    Indicative number of stocks                  Min of 20                                         Min of 20                                  Min of 20                                 Min of 20

    Minimum Model                                No fixed minimum1                                 No fixed minimum1                          No fixed minimum1                         No fixed minimum1
    investment

    Fees2
    Up to $1,000,000                             0.99%                                             1.10%                                      1.10%                                     1.10%
    $1,000,001 – $2,000,000                      0.85%                                             0.96%                                      0.96%                                     0.96%
    $2,000,001 – $5,000,000                      0.75%                                             0.86%                                      0.86%                                     0.86%
    More than $5,000,000                         0.62%                                             0.73%                                      0.73%                                     0.73%

    Indirect Cost Ratio (approx)3                0.25%                                             0.02%                                      0.02%                                     0.02%

    Benchmark Index                              •       9% - S&P/ASX 300                          •       S&P/ASX 200                        •      S&P/ASX 200                        •       S&P/ASX 300
                                                         Accumulation Index                                Accumulation Index                        Accumulation Index                         Accumulation
                                                 •       7.5% - MSCI World Index (Ex                                                                                                            Index
                                                         Australia) Net Return in A$
                                                 •       3.5% - MSCI World Index (Ex
                                                         Australia) Net Return hedged
                                                         to A$
                                                 •       5% - Bloomberg Aus Bond
                                                         Bank Bill Index (plus 4%)
                                                 •       2.5% - FTSE EPRA/NAREIT
                                                         Developed Rental ex
                                                         Australia Net Return Hedged
                                                         in $A
                                                 •       2.5% - FTSE Developed Core
                                                         Infrastructure Index Hedged
                                                         in $A
                                                 •       30% - Bloomberg Aus Bond
                                                         Composite Bond Index
                                                 •       20% - Barclays Global
                                                         Aggregate Index Hedged
                                                 •       20% - Aus Bond Bank Bill
                                                         Index

1.The minimum investment for the ANZ Private Investment Management Service is currently $250,000. Your adviser will assist you to determine the appropriate amount per Model Portfolio. See also the information
   under “How the SMA works” in the PDS.
2.The Fee is tiered – for example an Account balance of $2,000,000 in the ANZ Dynamic 100 Diversified (Tax Payer) Model Portfolio would be charged 0.99% for the first $1,000,000 and 0.85% for the next $1,000,000.
3.The Indirect Cost Ratio is deducted by the underlying managed fund/ETF prior to striking a unit price, this fee is not separately deducted from your account.

4
Model Portfolio                             ANZ                                     ANZ                                        ANZ                                     ANZ
  name                                        Australian Equities                     Dynamic International                      Australian Fixed Income                 Active International
                                              Capital                                 Equities                                   Portfolio                               Equities Portfolio
                                              (Non-Tax Payer)                         Portfolio

  Code                                        AN0009                                  AN0010                                     AN0011                                  AN0013

  Principal                                   The Model Portfolio                     Over the long term, the                    The Model Portfolio                     In the medium term, the
  investment                                  aims to generate capital                Model Portfolio aims to                    objective is to                         model aims to achieve
  objective                                   growth that exceeds                     outperform inflation, as                   outperform the                          returns (after costs but
                                              the S&P/ASX 300                         measured by the CPI, by                    benchmark over the                      before fees and taxes) that
                                              Accumulation Index ,                    4% p.a. (before tax & before               medium term.                            exceed the benchmark,
                                              over rolling three year                 fees) over rolling 10 year                                                         over periods of five years
                                              periods.                                periods. In the medium                                                             or more.
                                                                                      term, the Model Portfolio
                                                                                      aims to generate a total
                                                                                      return that exceeds the
                                                                                      weighted average return of
                                                                                      the benchmark.

  Can derivatives                             Yes                                     Yes                                        Yes                                     Yes
  be used?

  Indicative number of                        Min of 20                               Min of 3                                   N/A                                     N/A
  stocks

  Minimum Model                               No fixed minimum1                       No fixed minimum1                          No fixed minimum1                       No fixed minimum1
  investment

  Fees2
  Up to $1,000,000                            1.10%                                   0.77%                                      0.62%                                   0.77%
  $1,000,001 – $2,000,000                     0.96%                                   0.63%                                      0.48%                                   0.63%
  $2,000,001 – $5,000,000                     0.86%                                   0.53%                                      0.38%                                   0.53%
  More than $5,000,000                        0.73%                                   0.40%                                      0.25%                                   0.40%

  Indirect Cost Ratio                         0.02%                                   0.49%                                      0.13%                                   0.61%
  (Approx)3

  Benchmark Index                             •      S&P/ASX 300                      •      70% - MSCI ACWI Index               •      Bloomberg AusBond                •     70% - MSCI World Index
                                                     Accumulation Index                      (Ex Australia) Net Return                  Composite 0+ Year                      (Ex Australia) Net Return
                                                                                             in A$                                      Index                                  in A$

                                                                                      •      30% - MSCI ACWI Index                                                       •     30% - MSCI World Index
                                                                                             (Ex Australia) Net Return                                                         (Ex Australia) Net Return
                                                                                             hedged to A$                                                                      hedged to A$

1.The minimum investment for the ANZ Private Investment Management Service is currently $250,000. Your adviser will assist you to determine the appropriate amount per
   Model Portfolio. See also the information under “How the SMA works” in the PDS.
2.The Fee is tiered – for example an Account balance of $2,000,000 in the ANZ Dynamic 100 Diversified (Tax Payer) Model Portfolio would be charged 0.99% for the first
   $1,000,000 and 0.85% for the next $1,000,000.
3.The Indirect Cost Ratio is deducted by the underlying managed fund/ETF prior to striking a unit price, this fee is not separately deducted from your account.

                                                                                                                                                                                                           5
Model Portfolio                         ANZ                                          ANZ                                      ANZ                                    ANZ
    name                                    Enhanced Yield Portfolio                     Dynamic Fixed Income                     International Fixed Income             Australian Small
                                                                                         Portfolio                                Portfolio                              Companies SIV Portfolio

    Code                                    AN0014                                       AN0015                                   AN0016                                 AN0017

    Principal                               The Model Portfolio                          The Model Portfolio                      The Model Portfolio                    The Model Portfolio
    investment                              objective is to outperform                   objective is to outperform               objective is to outperform             objective is to provide
    objective                               the benchmark (after                         the benchmark over the                   the benchmark over the                 investors with capital
                                            management costs, before                     medium term.                             medium term.                           growth and income
                                            fees) over rolling three year                                                                                                in the medium term,
                                            periods.                                                                                                                     which outperforms the
                                                                                                                                                                         benchmark.

    Can derivatives                         Yes                                          Yes                                      Yes                                    Yes
    be used?

    Indicative number of                    N/A                                          N/A                                      N/A                                    N/A
    stocks

    Minimum Model                           No fixed minimum1                            No fixed minimum1                        No fixed minimum1                      No fixed minimum1
    investment

    Fees2
    Up to $1,000,000                        0.35%                                        0.74%                                    0.74%                                  0.45%
    $1,000,001 – $2,000,000                 0.35%                                        0.60%                                    0.60%                                  0.45%
    $2,000,001 – $5,000,000                 0.35%                                        0.50%                                    0.50%                                  0.45%
    More than $5,000,000                    0.35%                                        0.37%                                    0.37%                                  0.45%

    Indirect Cost Ratio                     0.21%                                        0.19%                                    0.28%                                  0.85%
    (approx)3

    Benchmark Index                         •      Bloomberg AusBond                     •      60% - Bloomberg                   •      Barclays Capital Global         •     S&P/ASX Small
                                                   Bank Bill Index                              AusBond Composite                        Aggregate Index                       Ordinaries
                                                                                                0+ Year Index                            hedged to A$                          Accumulation Index

                                                                                         •      40% - Barclays Capital
                                                                                                Global Aggregate
                                                                                                Index hedged to A$

1.The minimum investment for the ANZ Private Investment Management Service is currently $250,000. Your adviser will assist you to determine the appropriate amount per
   Model Portfolio. See also the information under “How the SMA works” in the PDS.
2.The Fee is tiered – for example an Account balance of $2,000,000 in the ANZ Dynamic 100 Diversified (Tax Payer) Model Portfolio would be charged 0.99% for the first
   $1,000,000 and 0.85% for the next $1,000,000.
3.The Indirect Cost Ratio is deducted by the underlying managed fund/ETF prior to striking a unit price, this fee is not separately deducted from your account.

6
MODEL PORTFOLIO MANAGERS AND MODEL PROFILES

ANZ PRIVATE
Australia and New Zealand Banking Group Limited provides a range
of banking and financial products and services to around 10 million
customers, employs over 50,000 people worldwide, and aspires to be
a super regional bank across Asia Pacific.
ANZ Private Bank is the financial partner of choice for many leading
families, business people, investors, private foundations and business
owners. Drawing on our extensive research and advisory resources,
ANZ Private Bank offers insightful and proven financial advice across a
wide range of disciplines.
Clients of ANZ Private can access a comprehensive range of
investment products. Core to ANZ Private’s investment product
range is an exclusive Investment Management Service which
provides access to discretionary managed portfolios covering a broad
spectrum of High Net Worth investor interests. These portfolios are
constantly scrutinised and managed under the guidance of an ANZ
Regional Investment Council and Chief Investment Office.
ANZ as the Model Portfolio Manager is responsible for the investment
decisions for each of the Model Portfolios offered within the ANZ
Private Investment Management Service.
You should carefully consider the information on the following pages
before selecting the particular portfolio that you wish to invest into.
Consideration should be given to your personal tolerance for risk and
volatility, time frames for investing and the overall appropriateness
of the product and portfolio in regard to your relevant personal and
financial circumstances, needs and objectives.

                                                                          7
MODEL PORTFOLIO PROFILE: AN0001
    ANZ DYNAMIC 100 DIVERSIFIED (TAX PAYER) PORTFOLIO

Investment objective: Over the long term, the Model Portfolio            AUTHORISED INVESTMENTS
objective is to outperform inflation, as measured by the CPI, by 5%      »» Listed Australian equities or equities to be shortly listed on the
p.a. (before tax & before fees) over rolling 10 year periods. In the        ASX (including Real Estate Investment Trusts)
medium term, the Model Portfolio aims to generate a total return         »» International equities exposure –via unhedged/hedged ETFs and/
                                                                            or ANZ Private global equities funds
that exceeds the weighted average return of the benchmark
                                                                         »» Global listed real assets and alternatives exposures via managed
portfolio.                                                                  funds
                                                                         »» Foreign exchange forward contracts
MODEL PORTFOLIO MANAGER                                                  »» Fixed income – via fixed income funds
                                                                         »» Cash - via cash accounts and/or managed cash pools/funds
ANZ Banking Group Limited                                                RECOMMENDED MINIMUM TIME HORIZON
                                                                         10 years
                                                                                                                                                                             3

DESIGNED FOR INVESTORS WHO...                                            HISTORICAL FREQUENCY OF NEGATIVE RETURNS
•    Have a long term growth focus and are looking for a core            5 years in the past 20 years
     portfolio invested in Australian and international equities,
     alternatives and real assets.                                       INDICATIVE NUMBER OF STOCKS
•    Are prepared to accept short term fluctuations in relative
     performance against the benchmark for potentially greater           Minimum of 20, typically 30-60 holdings including managed funds
     returns over the longer term.
•    The Dynamic 100 Diversified (Tax Payer) Model Portfolio is                                            2

     managed on the assumption that the applicant is a tax paying        FEES (INCL. GST)
     investor.
                                                                         Up to $1,000,000		                             0.99%
                                                                         $1,000,001 – $2,000,000                        0.85%
INVESTMENT STRATEGY AND APPROACH                                         $2,000,001 – $5,000,000                        0.75%
The Dynamic 100 Diversified (Tax payer) Model Portfolio achieves         More than $5,000,000                           0.62%
diversification by maintaining an exposure to:                                                                      4

                                                                         Indirect Cost Ratio (approx)                   0.30%	
•    An Australian equities portfolio of between 30 and 60 securities;
•    International equity exposure through Exchange Traded Funds
     (ETFs) and the actively managed ANZ Private international
     equities funds;
                                                                          ASSET ALLOCATION RANGES (%)
•    Alternative assets via a multi strategy target return fund
•    Global listed real assets exposure via passive global listed                                                               Minimum              Neutral         Maximum
     infrastructure and global listed property funds;
•    Cash and cash equivalents for liquidity purposes.                    Australian equities                                      17.5                37.5              57.5

                                                                          International equities                                   19.5               39.5               59.5
ANZ dynamically tilts between the asset classes to both preserve and
grow capital.                                                             International equities hedging ratio                       0                 30                100

                                                                          Unhedged emerging markets                                  0                  6                 16
BENCHMARK INDEX                                                           equities

•    37.5% - S&P/ASX 300 Accumulation Index                               Alternatives                                               2                  7                 12
•    26% - MSCI World Index (Ex Australia) Net Return in A$
                                                                          Global listed real assets                                  0                  7                 17
•    13.5% - MSCI World Index (Ex Australia) Net Return hedged to A$
•    6% - MSCI Emerging Markets Net Total Return Index in A$              Total Growth Assets                                       77                 97                100
•    7% - Bloomberg Aus Bond Bank Bill Index (plus 4%)
                                                                          Australian fixed income                                    0                  0                 20
•    3.5% - FTSE EPRA/NAREIT Developed Rental ex Australia Net
     Return Hedged                                                        International fixed income                                 0                  0                 20
•    3.5% - FTSE Developed Core Infrastructure Index Hedged in $A
                                                                          Cash                                                       0                  3                 23
•    3% - Aus Bond Bank Bill Index
                                                                          Total Defensive Assets                                     0                  3                 23

                                                                         1. The unrealised increase or decrease in an investment’s value during a specific time period, plus any
                                                                            income or gains generated by the investment during that period.
                                                                         2. The Fee is tiered – for example an Account balance of $2,000,000 in the ANZ Dynamic 100 Diversified
                                                                            (Tax Payer) Model Portfolio would be charged 0.99% for the first $1,000,000 and 0.85% for the next
                                                                            $1,000,000.
                                                                         3. Based on historical testing of asset class performance over a 20 year period; Past Performance is not an
                                                                            indication of future performance. For period ending 31 December 2016.
                                                                         4. The Indirect Cost Ratio is deducted by the underlying managed fund/ETF prior to striking a unit price,
                                                                            this fee is not separately deducted from your account.

8
MODEL PORTFOLIO PROFILE: AN0002
    ANZ DYNAMIC 100 DIVERSIFIED (NON-TAX PAYER) PORTFOLIO

Investment objective: Over the long term, the Model Portfolio          AUTHORISED INVESTMENTS
objective is to outperform inflation, as measured by the CPI, by 5%    •      Listed Australian equities or equities to be shortly listed on the ASX
p.a. (before tax & before fees) over rolling 10 year periods. In the          (including Real Estate Investment Trusts and ETFs)
medium term, the Model Portfolio aims to generate a total return       •      International equities exposure – via unhedged/hedged ETFs and/
                                                                              or ANZ international equities funds
that exceeds the weighted average return of the benchmark
                                                                       •      Foreign exchange forward contracts
portfolio.
                                                                       •      Cash - via cash accounts and/or ANZ Cash Plus Fund and/or
                                                                              managed cash pools/funds
MODEL PORTFOLIO MANAGER
                                                                       RECOMMENDED MINIMUM TIME HORIZON
ANZ Banking Group Limited
                                                                       10 years
                                                                                                                                                                            3

                                                                       HISTORICAL FREQUENCY OF NEGATIVE RETURNS
DESIGNED FOR INVESTORS WHO...
                                                                       5 years in the past 20 years
•    Have a long term growth focus who are looking for a core
                                                                       INDICATIVE NUMBER OF STOCKS
     portfolio invested in Australian and international equities,
     alternatives and real assets.                                     Min of 20, typically 30-60 holdings including managed funds
•    Are prepared to accept short term fluctuations in relative
     performance against the benchmark for potentially greater                                           2

                                                                       FEES (INCL. GST)
     returns over the longer term.
•    The Dynamic 100 Diversified (Non-Tax Payer) Model Portfolio       Up to $1,000,000		                             0.99%
                                                                       $1,000,001 – $2,000,000                        0.85%
     is managed on the assumption that the applicant is a non-tax
                                                                       $2,000,001 – $5,000,000                        0.75%
     paying investor.
                                                                       More than $5,000,000                           0.62%
                                                                                                                  4

INVESTMENT STRATEGY AND APPROACH                                       Indirect Cost Ratio (approx)                   0.26%

The Dynamic 100 Diversified (Non-Tax Payer) Model Portfolio achieves   ASSET ALLOCATION RANGES (%)
diversification by maintaining an exposure to:
                                                                                                                            Minimum              Neutral          Maximum
•   An Australian equities portfolio of between 30 to 60 securities;
•   International equity exposure through Exchange Traded Funds        Australian equities                                       26                 46                 66
    (ETFs) and the actively managed ANZ Private international
    equities funds;                                                    International equities                                    11                 31                 51
•   Alternative assets via a multi strategy target return fund
                                                                       International equities hedging ratio                       0                 30                100
•   Global listed real assets exposure via passive global listed
    infrastructure and global listed property funds;                   Unhedged emerging market                                   0                  6                 16
•   Cash and cash equivalents for liquidity purposes.                  equities

                                                                       Alternatives                                               2                  7                 12
ANZ dynamically tilts between the asset classes to both preserve and
grow capital.                                                          Global listed real assets                                  0                  7                 17

                                                                       Total Growth Assets                                       77                 97                100
BENCHMARK INDEX
                                                                       Australian fixed income                                    0                  0                 20
•    46% - S&P/ASX 300 Accumulation Index
•    20% - MSCI World Index (Ex Australia) Net Return in A$            International fixed income                                 0                  0                 20
•    11% - MSCI All Countries (AC) World Index (Ex Australia) Net
                                                                       Cash                                                       0                  3                 23
     Return hedged to A$
•    6% - MSCI Emerging Markets Net Total Return Index in A$           Total Defensive Assets                                     0                  3                 23
•    7% - Bloomberg Aus Bond Bank Bill Index (plus 4%)
•    3.5% - FTSE EPRA/NAREIT Developed Rental ex Australia Net
     Return Hedged in $A                                               1. The unrealised increase or decrease in an investment’s value during a specific time period, plus any
                                                                          income or gains generated by the investment during that period.
•    3.5% - FTSE Developed Core Infrastructure Index Hedged in $A      2. The Fee is tiered – for example an Account balance of $2,000,000 in the ANZ Dynamic 100 Diversified
                                                                          (Non-Tax Payer) Model Portfolio would be charged 0.99% for the first $1,000,000 and 0.85% for the
•    3% - Aus Bond Bank Bill Index                                        next $1,000,000.
                                                                       3. Based on historical testing of asset class performance over a 20 year period; Past Performance is not an
                                                                          indication of future performance. For period ending 31 December 2016.
                                                                       4. The Indirect Cost Ratio is deducted by the underlying managed fund/ETF prior to striking a unit price,
                                                                          this fee is not separately deducted from your account.

                                                                                                                                                                                9
MODEL PORTFOLIO PROFILE: AN0003
     ANZ DYNAMIC 70 DIVERSIFIED PORTFOLIO

Investment objective: Over the long term, the Model Portfolio                AUTHORISED INVESTMENTS
objective is to outperform inflation, as measured by the CPI, by 4%             • Listed Australian equities or equities to be shortly listed on the
p.a. (before tax & before fees) over rolling 10 year periods. In the              ASX (including Real Estate Investment Trusts)
                                                                                • International equities exposure –via unhedged/hedged ETF’s
medium term, the Model Portfolio aims to generate a total return                  and/or ANZ Private global equities funds
that exceeds the weighted average return of the benchmark                       • Global listed real assets and alternatives exposures via managed
portfolio.                                                                        funds
                                                                                • Foreign exchange forward contracts
                                                                                • Fixed Income – via ANZ Fixed Income Funds
MODEL PORTFOLIO MANAGER                                                         • Cash - via cash accounts and/or ANZ Cash Plus and/or managed
                                                                                  cash pools/funds
ANZ Banking Group Limited
                                                                             RECOMMENDED MINIMUM TIME HORIZON
                                                                             10 years
DESIGNED FOR INVESTORS WHO...                                                                                                                                                   3

                                                                             HISTORICAL FREQUENCY OF NEGATIVE RETURNS
•     Have a long term wealth protection and growth focus who
      are looking for a core portfolio invested in Australian and            5 years in the past 20 years
      international equities, alternatives, real assets, fixed income and
      cash.                                                                  INDICATIVE NUMBER OF STOCKS
•     Are likely to focus on assets with greater growth potential.           Minimum of 20, typically 30-60 including managed funds
•     Are prepared to accept short term fluctuations in relative
                                                                             FEES (INCL. GST)                 2

      performance against the benchmark for potentially greater
      returns over the longer term.                                          Up to $1,000,000		                            0.99%
•     There is a strong bias towards growth investments such as              $1,000,001 – $2,000,000                       0.85%
      Australian and international equities, alternatives and real assets.   $2,000,001 – $5,000,000                       0.75%
                                                                             More than $5,000,000                          0.62%
INVESTMENT STRATEGY AND APPROACH                                                                                       5

                                                                             Indirect Cost Ratio (approx)                  0.28%
The Dynamic 70 Diversified Model Portfolio achieves
                                                                             ASSET ALLOCATION RANGES (%)
diversification by maintaining an exposure to:
                                                                                                                                    Minimum             Neutral          Maximum
•    An Australian equities portfolio of between 30 and 60 securities;
•    International equity exposure through Exchange Traded Funds             Australian equities                                         6                 26                 46
     (ETFs) and the actively managed ANZ Private international
     equities funds;                                                         International equities                                      8                 28                 48
•    Alternative assets via a multi strategy target return fund
•    Global listed real assets exposure via passive global listed            International equities hedging ratio                        0                 30                100
     infrastructure and global listed property funds;
•    Fixed income exposure via Australian and international fixed            Unhedged emerging markets                                   0                  4                 12
                                                                             equities
     income funds;
•    Cash and cash equivalents for liquidity purposes.                       Global listed real assets                                   0                  6                 16

                                                                             Alternatives                                                1                  6                 11
ANZ dynamically tilts between the asset classes to both preserve and
grow capital.
                                                                             Total Growth Assets                                        50                 70                 90

                                                                             Australian fixed income                                     0                 12                 32
BENCHMARK INDEX
                                                                             International fixed income                                  0                  8                 28
•     26% - S&P/ASX 300 Accumulation Index
•     18.5% - MSCI World Index (Ex Australia) Net Return in A$
                                                                             Cash                                                        0                 10                 30
•     9.5% - MSCI World Index (Ex Australia) Net Return hedged to A$
•     4% - MSCI Emerging Markets Net Total Return Index in A$                Total Defensive Assets                                     10                 30                 50
•     6% - Bloomberg Aus Bond Bank Bill Index (plus 4%)
•     3% - FTSE EPRA/NAREIT Developed Rental ex Australia Net                The Model Portfolio must have a minimum of 50% exposure to growth4 assets and 10% exposure to
      Return Hedged in $A                                                      defensive assets.

•     3% - FTSE Developed Core Infrastructure Index Hedged in $A             1. The unrealised increase or decrease in an investment’s value during a specific time period, plus any
                                                                                income or gains generated by the investment during that period.
•     12% - Bloomberg Aus Bond Composite Bond Index                          2. The Fee is tiered – for example an Account balance of $2,000,000 in the ANZ Dynamic 70 Diversified
•     8% - Barclays Global Aggregate Index Hedged                               Model Portfolio would be charged 0.99% for the first $1,000,000 and 0.85% for the next $1,000,000.
                                                                             3. Based on historical testing of asset class performance over a 20 year period; Past Performance is not an
•     10% - Aus Bond Bank Bill Index                                            indication of future performance. For period ending 31 December 2016.
                                                                             4. Growth assets are Australian and international equities.
                                                                             5. The Indirect Cost Ratio is deducted by the underlying managed fund/ETF prior to striking a unit price,
                                                                                this fee is not separately deducted from your account.

10
MODEL PORTFOLIO PROFILE: AN0004
    ANZ DYNAMIC 50 DIVERSIFIED PORTFOLIO

Investment objective: Over the long term, the Model Portfolio              AUTHORISED INVESTMENTS
objective is to outperform inflation, as measured by the CPI, by 3%        »»      Listed Australian equities or equities to be shortly listed on the ASX
p.a. (before tax & before fees) over rolling 10 year periods. In the               (including Real Estate Investment Trusts)
medium term, the Model Portfolio aims to generate a total return           »»      International equities exposure –via unhedged/hedged ETF’s and/
                                                                                   or ANZ Private global equities funds
that exceeds the weighted average return of the benchmark                  »»      Foreign exchange forward contracts
portfolio.                                                                 »»      Global listed real assets and alternatives exposures via managed
                                                                                   funds
                                                                           »»      Fixed income– via ANZ fixed Income funds
MODEL PORTFOLIO MANAGER                                                    »»      Cash -via cash accounts and/or ANZ Cash Plus and/or managed
                                                                                   cash pools/funds
ANZ Banking Group Limited                                                  RECOMMENDED MINIMUM TIME HORIZON
                                                                           10 years

DESIGNED FOR INVESTORS WHO...                                                                                                                                                      3

                                                                           HISTORICAL FREQUENCY OF NEGATIVE RETURNS
•    Have a long term wealth protection and growth focus who
     are looking for a core portfolio invested in Australian and           4 years in the past 20 years
     international equities, alternatives, real assets, fixed income and
     cash.                                                                 INDICATIVE NUMBER OF STOCKS
•    Are seeking a balanced portfolio to achieve medium to long            Minimum of 20, typically 30-60 including managed funds
     term financial goals.
                                                                           FEES (INCL. GST)                   2

•    Are prepared to accept short term fluctuations in relative
     performance against the benchmark for potentially greater             Up to $1,000,000		                              0.99%
     returns over the longer term.                                         $1,000,001 – $2,000,000                         0.85%
•    With a balance between growth assets such as Australian and           $2,000,001 – $5,000,000                         0.75%
     international equities, alternatives and real assets and defensive    More than $5,000,000                            0.62%
     assets such as fixed income and cash.                                                                             5

                                                                           Indirect Cost Ratio (approx)                    0.26%

INVESTMENT STRATEGY AND APPROACH
                                                                            ASSET ALLOCATION RANGES (%)
The Dynamic 50 Diversified Model Portfolio achieves diversification
by maintaining an exposure to:                                                                                                     Minimum              Neutral          Maximum
•    An Australian equities portfolio of between 30 and 60 securities;
                                                                            Australian equities                                         3                  18                 33
•    International equity exposure through Exchange Traded Funds
     (ETFs) and the actively managed ANZ Private international              International equities                                      7                  22                 37
     equities funds;
                                                                            International equities hedging ratio                        0                  30                100
•    Alternative assets via a multi strategy target return fund
•    Global listed real assets exposure via passive global listed           Unhedged emerging equities                                  0                   0                  5
     infrastructure and global listed property funds;
•    Fixed income exposure via Australian and international fixed           Global listed real assets                                   0                   5                 15
     income funds;
                                                                            Alternatives                                                0                   5                 10
•    Cash and cash equivalents for liquidity purposes.
                                                                            Total Growth Assets                                        35                  50                 65
BENCHMARK INDEX
                                                                            Australian fixed income                                     6                  21                 36
•   18% - S&P/ASX 300 Accumulation Index
•   15.5% - MSCI World Index (Ex Australia) Net Return in A$                International fixed income                                  0                  14                 29
•   6.5% - MSCI World Index (Ex Australia) Net Return hedged to A$
                                                                            Cash                                                        0                  15                 35
•   5% - Bloomberg Aus Bond Bank Bill Index (plus 4%)
•   2.5% - FTSE EPRA/NAREIT Developed Rental ex Australia Net
                                                                            Total Defensive Assets                                     35                  50                 65
    Return Hedged in $A
•   2.5% - FTSE Developed Core Infrastructure Index Hedged in $A
•   21% - Bloomberg Aus Bond Composite Bond Index                          The Model Portfolio must have a minimum of 35% exposure to growth4 assets and 35% exposure to
                                                                             defensive assets.
•   14% - Barclays Global Aggregate Index Hedged
•   15% - Aus Bond Bank Bill Index.                                        1. The unrealised increase or decrease in an investment’s value during a specific time period, plus any
                                                                              income or gains generated by the investment during that period.
                                                                           2. The Fee is tiered – for example an Account balance of $2,000,000 in the ANZ Dynamic 50 Diversified
                                                                              Model Portfolio would be charged 0.99% for the first $1,000,000 and 0.85% for the next $1,000,000.
                                                                           3. Based on historical testing of asset class performance over a 20 year period; Past Performance is not an
                                                                              indication of future performance. For period ending 31 December 2016.
                                                                           4. Growth assets are Australian and international equities.
                                                                           5. The Indirect Cost Ratio is deducted by the underlying managed fund/ETF prior to striking a unit price,
                                                                              this fee is not separately deducted from your account.
                                                                                                                                                                                       11
MODEL PORTFOLIO PROFILE: AN0005
     ANZ DYNAMIC 30 DIVERSIFIED PORTFOLIO

Investment objective: Over the long term, the Model Portfolio            AUTHORISED INVESTMENTS
objective is to outperform inflation, as measured by the CPI, by         •       Listed Australian equities or equities to be shortly listed on the
2.5% p.a. (before tax & before fees) over rolling 10 year periods.               ASX (including Real Estate Investment Trusts)
In the medium term, the Model Portfolio aims to generate a               •       International equities exposure –via unhedged/hedged ETF’s
                                                                                 and/or ANZ Private global equities funds.
total return that exceeds the weighted average return of the
                                                                         •       Foreign exchange forward contracts
benchmark portfolio.                                                     •       Global Listed real assets and alternatives exposures via managed
                                                                                 funds
                                                                         •       Fixed Income – via ANZ fixed income funds
MODEL PORTFOLIO MANAGER                                                  •       Cash - via cash accounts and/or ANZ Cash Plus Fund and/or
                                                                                 managed cash pools/funds
ANZ Banking Group Limited                                                RECOMMENDED MINIMUM TIME HORIZON
                                                                         5 years
DESIGNED FOR INVESTORS WHO...                                                                                                                                                  3

                                                                         HISTORICAL FREQUENCY OF NEGATIVE RETURNS
•    Have a long term wealth protection focus and are looking for a
                                                                         3 years in the past 20 years
     core portfolio invested in Australian and International equities,
     Alternatives, Real Assets, Fixed Income and Cash.                    INDICATIVE NUMBER OF STOCKS
•    Are prepared to accept lower returns to reduce the risk of losing   Minimum of 20, typically 30-60 holdings including managed funds
     capital.                                                            FEES (INCL. GST)                   2

The investment mix is positioned defensively to produce a stable         Up to $1,000,000		                             0.99%
return with a higher proportion invested in Fixed Income and cash        $1,000,001 – $2,000,000                        0.85%
and a smaller proportion in Australian and International equities,       $2,000,001 – $5,000,000                        0.75%
Alternatives and Real Assets.                                            More than $5,000,000                           0.62%
                                                                                                                    5

                                                                         Indirect Cost Ratio (approx)                   0.25%
INVESTMENT STRATEGY AND APPROACH
The Dynamic 30 Diversified Model Portfolio achieves diversification       ASSET ALLOCATION RANGES (%)
by maintaining an exposure to:
                                                                                                                               Minimum              Neutral          Maximum
•    An Australian equities portfolio of between 30 and 60 securities;
•    International equity exposure through Exchange Traded Funds          Australian equities                                       0                  9                  19
     ( ETFs) and the actively managed ANZ Private International
     Equities Funds;                                                      International equities                                    1                  11                 21

•    Alternative assets via a multi strategy target return fund           International equities hedging                            0                 30                 100
•    Global listed real assets exposure via passive global listed         ratio
     infrastructure and global listed property funds;
                                                                          Unhedged emerging market                                  0                  0                   5
•    Fixed income exposure via Australian and international fixed         equities
     income funds
•    Cash and cash equivalents for liquidity purposes.                    Global listed real assets                                 0                  5                  15

                                                                          Alternatives                                              0                  5                  10
ANZ dynamically tilts between the asset classes to both preserve and
                                                                          Total Growth Assets                                      20                 30                  40
grow capital.
BENCHMARK INDEX                                                           Australian fixed income                                  20                 30                  40

•    9% - S&P/ASX 300 Accumulation Index                                  International fixed income                               10                  20                 30
•    7.5% - MSCI World Index (Ex Australia) Net Return in A$
•    3.5% - MSCI World Index (Ex Australia) Net Return hedged to A$       Cash                                                      0                  20                 40
•    5% - Bloomberg Aus Bond Bank Bill Index (plus 4%)
•    2.5% - FTSE EPRA/NAREIT Developed Rental ex Australia Net            Total Defensive Assets                                   60                 70                  80
     Return Hedged in $A
                                                                         The Model Portfolio must have a minimum of 20% exposure to growth4 assets and 60% exposure to
•    2.5% - FTSE Developed Core Infrastructure Index Hedged in $A          defensive assets.
•    30% - Bloomberg Aus Bond Composite Bond Index
                                                                         1. The unrealised increase or decrease in an investment’s value during a specific time period, plus any
•    20% - Barclays Global Aggregate Index Hedged                           income or gains generated by the investment during that period.
•    20% - Aus Bond Bank Bill Index                                      2. The Fee is tiered – for example an Account balance of $2,000,000 in the ANZ Dynamic 30 Diversified
                                                                            Model Portfolio would be charged 0.99% for the first $1,000,000 and 0.85% for the next $1,000,000.
                                                                         3. Based on historical testing of asset class performance over a 20 year period; Past Performance is not an
                                                                            indication of future performance. For period ending 31 December 2016.
                                                                         4. Growth assets are Australian and international equities.
                                                                         5. The Indirect Cost Ratio is deducted by the underlying managed fund/ETF prior to striking a unit price,
                                                                            this fee is not separately deducted from your account.
12
MODEL PORTFOLIO PROFILE: AN0006
    ANZ AUSTRALIAN EQUITIES INCOME (TAX PAYER) PORTFOLIO

Investment objective: The Model Portfolio aims to generate high          AUTHORISED INVESTMENTS
dividend income and generate a total return which has lower              •      Listed Australian equities or equities to be shortly listed on the
volatility when compared to the levels experienced by the S&P/                  ASX (including Real Estate Investment Trusts)
ASX 200 Accumulation index over rolling three year periods.              •      Exchange Traded Funds (ETFs) and managed funds
                                                                         •      Cash - via cash accounts and/or ANZ Cash Plus Fund and/or
MODEL PORTFOLIO MANAGER                                                         managed cash pools/funds

ANZ Banking Group Limited
                                                                         RECOMMENDED MINIMUM TIME HORIZON
                                                                         10 years
DESIGNED FOR INVESTORS WHO...
•    Are looking for a core portfolio invested in Australian equities                                                                                                        2

                                                                         HISTORICAL FREQUENCY OF NEGATIVE RETURNS
     with a focus on income and long term wealth creation who are
     looking for a core portfolio invested in Australian equities with   5 years in the past 20 years
     an income focus.
•    The Australian Equities Income (Tax Payer) Model Portfolio is
                                                                         INDICATIVE NUMBER OF STOCKS
     managed on the assumption that the applicant is a tax paying
     investor.                                                           Minimum of 20 typically, 40-50 holdings

INVESTMENT STRATEGY AND APPROACH                                         FEES (INCL. GST)                  1

The Australian Equities Income (Tax Payer) Model Portfolio is focussed   Up to $1,000,000		                             1.10%
on delivering a portfolio with a higher dividend yield than the index.   $1,000,001 – $2,000,000                        0.96%
                                                                         $2,000,001 – $5,000,000                        0.86%
To achieve this, the ANZ Investment Management team combines
                                                                         More than $5,000,000                           0.73%
a passive exposure to the 20 companies that comprise the S&P/ASX
20 Index with an actively managed portfolio of 20-30 stocks with the                                                3

                                                                         Indirect Cost Ratio (approx)                   0.02%
aim of identifying companies that provide a high dividend yield and
total return. Stocks are also required to pass a robust research and
modelling process to construct a diversified portfolio.
The holdings in the Australian Equities Income (Tax Payer) Model
Portfolio are generally comprised of between 40 and 50 securities,
predominantly selected from the top 200 equities in the Australian       ASSET ALLOCATION RANGES (%)
equities market. From time-to-time, the portfolio may invest in
                                                                                                                            Minimum              Neutral           Maximum
companies outside of the top 200 should relevant opportunities arise.
                                                                         Australian equities                                     80                100                 100

BENCHMARK INDEX                                                          Cash & fixed income                                      0                  0                  20
•    S&P/ASX 200 Accumulation Index

                                                                         1. The Fee is tiered – for example an Account balance of $2,000,000 in the ANZ Australian Equities
                                                                            Income (Tax Payer) Model Portfolio would be charged 1.10% for the first $1,000,000 and 0.96% for the
                                                                            next $1,000,000.
                                                                         2. Based on historical testing of asset class performance over a 20 year period; Past Performance is not an
                                                                            indication of future performance. For period ending 31 December 2016.
                                                                         3. The Indirect Cost Ratio is deducted by the underlying managed fund/ETF prior to striking a unit price,
                                                                            this fee is not separately deducted from your account.

                                                                                                                                                                                 13
MODEL PORTFOLIO PROFILE: AN0007
     ANZ AUSTRALIAN EQUITIES INCOME (NON-TAX PAYER) PORTFOLIO

Investment objective: The Model Portfolio aims to generate high         AUTHORISED INVESTMENTS
dividend income and generate a total return which has lower                •       Listed Australian equities or equities to be shortly listed on
volatility when compared to the levels experienced by the S&P/                     the ASX (including Real Estate Investment Trusts)
ASX 200 Accumulation index over rolling three year periods.                •       Exchange Traded Funds (ETFs) and Managed Funds
                                                                           •       Cash - via cash accounts and/or ANZ Cash Plus Fund and/or
                                                                                   managed cash pools/funds
MODEL PORTFOLIO MANAGER

ANZ Banking Group Limited                                               RECOMMENDED MINIMUM TIME HORIZON
                                                                        10 years

DESIGNED FOR INVESTORS WHO...
                                                                                                                                                                            2

•    Are looking for a core portfolio invested in Australian equities   HISTORICAL FREQUENCY OF NEGATIVE RETURNS
     with a focus on income and long term wealth creation.              5 years in the past 20 years
•    The Australian Equities Income (Non-Tax Payer) Model Portfolio
     is managed on the assumption that the applicant is a non-tax
                                                                        INDICATIVE NUMBER OF STOCKS
     paying investor.
                                                                        Min of 20 typically 40-50 holdings
INVESTMENT STRATEGY AND APPROACH
The Australian Equities Income (Non-Tax Payer) Model Portfolio is       FEES (INCL. GST)                  1

focussed on delivering a portfolio with a higher dividend yield than
                                                                        Up to $1,000,000		                             1.10%
the index. To achieve this, the ANZ Investment Management team
                                                                        $1,000,001 – $2,000,000                        0.96%
combines a passive exposure to the 20 companies that comprise the
                                                                        $2,000,001 – $5,000,000                        0.86%
S&P/ASX 20 Index with an actively managed portfolio of 20-30 stocks
                                                                        More than $5,000,000                           0.73%
with the aim of identifying companies that provide a high dividend
yield and total return. Stocks are also required to pass a robust                                                  3

                                                                        Indirect Cost Ratio (approx)                   0.02%
research and modelling process to construct a diversified portfolio.
The holdings in the Australian Equities Income (Non-Tax Payer) Model
Portfolio are generally comprised of between 40 and 50 securities,
predominantly selected from the top 200 equities in the Australian
equities market. From time-to-time, the portfolio may invest in
companies outside of the top 200 should relevant opportunities arise.    ASSET ALLOCATION RANGES (%)

                                                                                                                            Minimum              Neutral           Maximum
BENCHMARK INDEX
                                                                         Australian equities                                     80                100                100
•    S&P/ASX 200 Accumulation Index
                                                                         Cash & fixed income                                      0                  0                 20

                                                                        1. The Fee is tiered – for example an Account balance of $2,000,000 in the ANZ Australian Equities
                                                                           Income (Non-Tax Payer) Model Portfolio would be charged 1.10% for the first $1,000,000 and 0.96% for
                                                                           the next $1,000,000.
                                                                        2. Based on historical testing of asset class performance over a 20 year period; Past Performance is not an
                                                                           indication of future performance. For period ending 31 December 2016.
                                                                        3. The Indirect Cost Ratio is deducted by the underlying managed fund/ETF prior to striking a unit price,
                                                                           this fee is not separately deducted from your account.

14
MODEL PORTFOLIO PROFILE: AN0008
    ANZ AUSTRALIAN EQUITIES CAPITAL (TAX PAYER) PORTFOLIO

Investment objective: The Model Portfolio aims to generate               AUTHORISED INVESTMENTS
capital growth that exceeds the S&P/ASX 300 Accumulation Index ,         •      Listed Australian equities or equities to be shortly listed on the
over rolling three year periods.                                                ASX (including Real Estate Investment Trusts) Exchange Traded
                                                                                Funds (ETFs) and managed funds
MODEL PORTFOLIO MANAGER                                                  •      Cash - via cash accounts and/or ANZ Cash Plus Fund and/or
                                                                                managed cash pools/funds
ANZ Banking Group Limited
                                                                         RECOMMENDED MINIMUM TIME HORIZON

DESIGNED FOR INVESTORS WHO...                                            10 years

•    Are looking for a core portfolio invested in Australian equities
     with a focus on capital appreciation and long term wealth
                                                                                                                                                                             2

                                                                         HISTORICAL FREQUENCY OF NEGATIVE RETURNS
     creation.
                                                                         5 years in the past 20 years
•    The Australian Equities Capital (Tax Payer) Model Portfolio is
     managed on the assumption that the investor is a tax paying
     investor.                                                           INDICATIVE NUMBER OF STOCKS
                                                                         Min of 20 typically 40-50 holdings
INVESTMENT STRATEGY AND APPROACH
The Australian Equities Capital (Tax Payer) Model Portfolio is           FEES (INCL. GST)                  1

constructed with an emphasis on delivering long term capital growth
higher than the benchmark. To achieve this, the ANZ Investment           Up to $1,000,000		                             1.10%
Management team seeks to combine a passive exposure to the 20            $1,000,001 – $2,000,000                        0.96%
companies that comprise the S&P/ASX 20 Index with two actively           $2,000,001 – $5,000,000                        0.86%
managed portfolios of 10-20 stocks each. The blending of the actively    More than $5,000,000                           0.73%
managed portfolios with the 20 passively held positions aims to                                                     4

reduce style bias and provide a diversified portfolio of Australian      Indirect Cost Ratio (approx)                   0.02%
equities. The holdings in the Australian Equities Capital (Tax Payer)
Model Portfolio are generally comprised of between 40 and 50             ASSET ALLOCATION RANGES (%)
securities, predominantly selected from the top 300 equities in the
Australian equities market. From time-to-time, the portfolio may hold                                                        Minimum             Neutral           Maximum
investments outside of the top 300 should relevant opportunities
arise.                                                                   Australian equities                                     80                100                 100

                                                                         Cash & fixed income                                      0                  0                  20
BENCHMARK INDEX
•    S&P/ASX 300 Accumulation Index2
                                                                        1. The Fee is tiered – for example an Account balance of $2,000,000 in the ANZ Australian Equities
                                                                           Capital (Tax Payer) Model Portfolio would be charged 1.10% for the first $1,000,000 and 0.96% for the
                                                                           next $1,000,000.
                                                                        2. The benchmark applies only to the capital returns of the portfolio.
                                                                        3. Based on historical testing of asset class performance over a 20 year period; Past Performance is not an
                                                                           indication of future performance. For period ending 31 December 2016.
                                                                        4. The Indirect Cost Ratio is deducted by the underlying managed fund/ETF prior to striking a unit price,
                                                                           this fee is not separately deducted from your account.

                                                                                                                                                                                 15
MODEL PORTFOLIO PROFILE: AN0009
     ANZ AUSTRALIAN EQUITIES CAPITAL (NON-TAX PAYER) PORTFOLIO

 Investment objective: The Model Portfolio aims to generate
                                                                         AUTHORISED INVESTMENTS
 capital growth that exceeds the S&P/ASX 300 Accumulation Index ,
                                                                         •      Listed Australian equities or equities to be shortly listed on the ASX
 over rolling three year periods.                                               (including Real Estate Investment Trusts and ETFs)
                                                                         •      Cash - via cash accounts and/or ANZ Cash Plus Fund and/or
 MODEL PORTFOLIO MANAGER                                                        managed cash pools/funds

 ANZ Banking Group Limited                                               RECOMMENDED MINIMUM TIME HORIZON
                                                                         10 years
 DESIGNED FOR INVESTORS WHO...
 •    Are looking for a core portfolio invested in Australian equities
                                                                                                                                                                              2

                                                                         HISTORICAL FREQUENCY OF NEGATIVE RETURNS
      with a focus on capital appreciation and long term wealth
      creation.                                                          5 years in the past 20 years

 •    The Australian Equities Capital (Non-Tax Payer) Model Portfolio
      is managed on the assumption that the investor is a non-tax        INDICATIVE NUMBER OF STOCKS
      paying investor.
                                                                         Min of 20 typically 40-50 holdings

 INVESTMENT STRATEGY AND APPROACH
                                                                         FEES (INCL. GST)                  1

 The Australian Equities Capital (Non-Tax Payer) Model Portfolio is
 constructed with an emphasis on delivering long term capital growth     Up to $1,000,000		                             1.10%
 higher than the benchmark. To achieve this, the ANZ Investment          $1,000,001 – $2,000,000                        0.96%
 Management team seeks to combine a passive exposure to the 20           $2,000,001 – $5,000,000                        0.86%
 companies that comprise the S&P/ASX 20 Index with two actively          More than $5,000,000                           0.73%
 managed portfolios of 10-20 stocks each. The blending of the actively                                              4

 managed portfolios with the 20 passively held positions aims to         Indirect Cost Ratio (approx)                   0.02%
 reduce style bias and provide a diversified portfolio of Australian
 equities. The holdings in the Australian Equities Capital (Tax Payer)   ASSET ALLOCATION RANGES (%)
 Model Portfolio are generally comprised of between 40 and 50
 securities, predominantly selected from the top 300 equities in the                                                           Minimum             Neutral          Maximum
 Australian equities market. From time-to-time, the portfolio may hold
 investments outside of the top 300 should relevant opportunities        Australian equities                                       80                100                100
 arise.
                                                                         Cash & fixed income                                        0                  0                 20
 BENCHMARK INDEX
                                                                         1. The Fee is tiered – for example an Account balance of $2,000,000 in the ANZ Australian Equities
 •    S&P/ASX 300 Accumulation Index2                                       Capital (Non-Tax Payer) Model Portfolio would be charged 1.10% for the first $1,000,000 and 0.96% for
                                                                            the next $1,000,000.
                                                                         2. The benchmark applies only to the capital returns of the Model Portfolio.
                                                                         3. Based on historical testing of asset class performance over a 20 year period; Past Performance is not an
                                                                            indication of future performance. For period ending 31 December 2016.
                                                                         4. The Indirect Cost Ratio is deducted by the underlying managed fund/ETF prior to striking a unit price,
                                                                            this fee is not separately deducted from your account.

16
MODEL PORTFOLIO PROFILE: AN0010
    ANZ DYNAMIC INTERNATIONAL EQUITIES PORTFOLIO

Investment objective: Over the long term, the Model Portfolio             AUTHORISED INVESTMENTS
aims to outperform inflation, as measured by the CPI, by 4%               •       International shares exposure –via unhedged/hedged ETFs
p.a. (before tax & before fees) over rolling 10 year periods. In the              (Exchange Traded Funds) and/or ANZ Private global equities
                                                                                  funds
medium term, the Model Portfolio aims to generate a total return
that exceeds the weighted average return of the benchmark.                •       Cash - via cash accounts and/or ANZ Cash Plus Fund and/or
                                                                                  managed cash pools/funds

MODEL PORTFOLIO MANAGER
                                                                          RECOMMENDED MINIMUM TIME HORIZON
ANZ Banking Group Limited                                                 10 years

                                                                                                                                                                               2

DESIGNED FOR INVESTORS WHO...                                             HISTORICAL FREQUENCY OF NEGATIVE RETURNS
•    Have a long term wealth protection and growth focus who are          5 years in the past 20 years
     looking for a core portfolio invested in International equities
     with a focus on allocation between geographic regions
     combined with an actively managed portfolio focused on stock         INDICATIVE NUMBER OF STOCKS
     selection.
                                                                          Minimum of 3

INVESTMENT STRATEGY AND APPROACH
                                                                          FEES (INCL. GST)                   2

The Dynamic International Equity Model Portfolio generally has
exposure to a core portfolio with a minimum of four ASX-listed ETF’s      Up to $1,000,000		                              0.77%
along with exposure to the ANZ Private Global Equities Funds. Core        $1,000,001 – $2,000,000                         0.63%
portfolio changes are generally limited to those necessary to reflect a   $2,000,001 – $5,000,000                         0.53%
long-term shift in regional market and sectoral themes.                   More than $5,000,000                            0.40%

The ANZ Private Global Equities Fund is an actively managed fund of
                                                                                                                      4

                                                                          Indirect Cost Ratio (approx)                    0.49%
international equities. The fund aims to achieve returns (after costs
but before fees and taxes) that exceed the benchmark, over periods
of five years or more.
The Dynamic International Equity Model Portfolio or any of the assets      ASSET ALLOCATION RANGES (%)
held within this portfolio may or may not be ‘hedged’ dependent on
                                                                                                                               Minimum              Neutral          Maximum
the views on the ANZ’s Regional Investment Committee.
                                                                           Unhedged international equities                         25                 70                 100

                                                                           Hedged international equities                            0                 30                  75
BENCHMARK INDEX
                                                                           Cash & fixed income                                      0                  0                  20
•    70% - MSCI ACWI Index (Ex Australia) Net Return in A$
•    30% - MSCI ACWI Index (Ex Australia) Net Return hedged to A$

                                                                          1. The unrealised increase or decrease in an investment’s value during a specific time period, plus any
                                                                             income or gains generated by the investment during that period.
                                                                          2. The Fee is tiered – for example an Account balance of $2,000,000 in the ANZ Dynamic International
                                                                             Equities Model Portfolio would be charged 0.77% for the first $1,000,000 and 0.63% for the next
                                                                             $1,000,000.
                                                                          3. Based on historical testing of asset class performance over a 20 year period; Past Performance is not an
                                                                             indication of future performance. For period ending 31 December 2016.
                                                                          4. The Indirect Cost Ratio is deducted by the underlying managed fund/ETF prior to striking a unit price,
                                                                             this fee is not separately deducted from your account.

                                                                                                                                                                                   17
MODEL PORTFOLIO PROFILE: AN0011
     ANZ AUSTRALIAN FIXED INCOME PORTFOLIO

Investment objective: The Model Portfolio objective is to                    RECOMMENDED MINIMUM TIME HORIZON
outperform the benchmark over the medium term.                               3 years

MODEL PORTFOLIO MANAGER                                                                                                                                                           2

                                                                             HISTORICAL FREQUENCY OF NEGATIVE RETURNS
ANZ Banking Group Limited
                                                                             1 year in the past 20 years

DESIGNED FOR INVESTORS WHO...
                                                                             INDICATIVE NUMBER OF STOCKS
•    Are looking for a core portfolio invested in high quality fixed
     income (government, semi-government and corporate bonds)                N/A
     and cash securities.
                                                                             FEES (INCL. GST)                   1

INVESTMENT STRATEGY AND APPROACH                                             Up to $1,000,000		                             0.62%
                                                                             $1,000,001 – $2,000,000                        0.48%
The Australian Fixed Income Model Portfolio invests in fixed income
                                                                             $2,000,001 – $5,000,000                        0.38%
funds (the ‘Funds’). Portfolio construction of the fund focuses on
                                                                             More than $5,000,000                           0.25%
constructing a diversified portfolio using major Australian fixed
income sectors. Value is added through duration management, yield                                                       3

                                                                             Indirect Cost Ratio (approx)                   0.13%
curve positioning, sector rotation and issue selection. Market risk is
controlled by constraining duration exposure as well as a focus on
diversification.

BENCHMARK INDEX
                                                                              ASSET ALLOCATION RANGES (%)
•    Bloomberg AusBond Composite 0+ Year Index
                                                                                                                                  Minimum             Neutral           Maximum

AUTHORISED INVESTMENTS                                                        Australian fixed income                                 50                100                 100

•    Fixed income - via Australian fixed income and/or international fixed    Cash                                                     0                  0                  50
     interest
•    Cash and cash equivalents                                                Australian index linked bonds                            0                  0                  20

                                                                              Non- Australian dollar fixed                             0                  0                  10
                                                                              income

                                                                             1. The Fee is tiered – for example an Account balance of $2,000,000 in the ANZ Australian Fixed Income
                                                                                Model Portfolio would be charged 0.62% for the first $1,000,000 and 0.48% for the next $1,000,000.
                                                                             2. Based on historical testing of asset class performance over a 20 year period; Past Performance is not an
                                                                                indication of future performance. For period ending 31 December 2016.
                                                                             3. The Indirect Cost Ratio is deducted by the underlying managed fund/ETF prior to striking a unit price,
                                                                                this fee is not separately deducted from your account.

18
MODEL PORTFOLIO PROFILE: AN0013
    ANZ ACTIVE INTERNATIONAL EQUITIES PORTFOLIO

Investment objective: In the medium term, the model aims to            RECOMMENDED MINIMUM TIME HORIZON
achieve returns (after costs but before fees and taxes) that exceed    10 years
the benchmark, over periods of five years or more.
                                                                                                                                                                            2

                                                                       HISTORICAL FREQUENCY OF NEGATIVE RETURNS
MODEL PORTFOLIO MANAGER
                                                                       5 years in the past 20 years

ANZ Banking Group Limited
                                                                       INDICATIVE NUMBER OF STOCKS

DESIGNED FOR INVESTORS WHO...                                          N/A

•   Have a long term wealth growth focus and are looking for a core
    portfolio invested in international equities.                      FEES (INCL. GST)                  1

                                                                       Up to $1,000,000		                             0.77%
                                                                       $1,000,001 – $2,000,000                        0.63%
INVESTMENT STRATEGY AND APPROACH
                                                                       $2,000,001 – $5,000,000                        0.53%
The Active International Equities Model Portfolio generally has        More than $5,000,000                           0.40%
exposure to the ANZ Private Global Equities Fund. The ANZ Private                                                 4

Global Equities Fund is an actively managed fund of international      Indirect Cost Ratio (approx)                   0.61%
equities with a focus on long term holdings in individual companies.
The fund blends together at least two actively managed pools of
assets to reduce single manager risk and provide a more diversified
exposure to international equities. Currency exposures of the fund
may or may not be hedged dependent on the view of ANZ.
                                                                        ASSET ALLOCATION RANGES (%)

BENCHMARK INDEX                                                                                                            Minimum              Neutral           Maximum

•   70% - MSCI World Index (Ex Australia) Net Return in A$              International equities                                  80                100                 100
•   30% - MSCI World Index (Ex Australia) Net Return hedged to A$
                                                                        Cash & fixed income                                      0                  0                  20

AUTHORISED INVESTMENTS
•   International shares, managed funds, ETFs, index and foreign
    exchange futures and Cash exposure –via ANZ Private Global
    Equities Fund                                                      1. The Fee is tiered – for example an Account balance of $2,000,000 in the ANZ Active International
                                                                          Equities Model Portfolio would be charged 0.77% for the first $1,000,000 and 0.63% for the next
•   Foreign exchange forward contracts                                    $1,000,000.
                                                                       2. Based on historical testing of asset class performance over a 20 year period; Past Performance is not an
•   Cash - via cash accounts and/or ANZ Cash Plus Fund and/or             indication of future performance. For period ending 31 December 2016.
    managed cash pools/funds                                           3. The Indirect Cost Ratio is deducted by the underlying managed fund/ETF prior to striking a unit price,
                                                                          this fee is not separately deducted from your account.

                                                                                                                                                                                19
MODEL PORTFOLIO PROFILE: AN0014
     ANZ ENHANCED YIELD PORTFOLIO

Investment objective: The Model Portfolio objective is to                 RECOMMENDED MINIMUM TIME HORIZON
outperform the benchmark (after management costs, before fees)            12-24 Months.
over rolling three year periods.
                                                                                                                                                                               1

                                                                          HISTORICAL FREQUENCY OF NEGATIVE RETURNS
MODEL PORTFOLIO MANAGER
                                                                          1 year in the past 20 years

ANZ Banking Group Limited
                                                                          INDICATIVE NUMBER OF STOCKS

DESIGNED FOR INVESTORS WHO...                                             N/A

•    Are seeking a core portfolio invested in high quality fixed
     income (government, semi-government and corporate bonds),            FEES (INCL. GST)
     money market securities (Promissory Notes, Term Deposits,
     Floating Rate Notes) along with diverse exposure to the              Investment fee                 0.35%
     corporate credit universe and cash.
                                                                                                                     2

                                                                          Indirect Cost Ratio (approx)                   0.21%

INVESTMENT STRATEGY AND APPROACH
The Enhanced Yield Model Portfolio invests in the ANZ Enhanced
Yield Fund. The investment process is structured around a portfolio of    ASSET ALLOCATION RANGES (%)
liquid, high quality securities with an enhanced yield using all major
fixed interest sectors with a bias towards corporate (including high                                                                               Minimum           Maximum
yield), mortgage backed and asset backed securities. Value is added
through issue selection, sector rotation, yield curve positioning and     Cash & cash equivalents                                                      10                100
duration management with a focus on diversification and risk control.
The portfolio also has a diversified credit allocation employs a value-   Australian fixed income                                                       0                 90
oriented investment philosophy to invest in a diverse range of credit
securities.                                                               International fixed income                                                    0                 30

                                                                          Investment grade securities                                                   0                 90

BENCHMARK INDEX
                                                                          High yield securities                                                         0                 15
•    Bloomberg AusBond Bank Bill Index

                                                                          1. Based on historical testing of asset class performance over a 20 year period; Past Performance is not an
                                                                             indication of future performance. For period ending 31 December 2016.
                                                                          2. The Indirect Cost Ratio is deducted by the underlying managed fund/ETF prior to striking a unit price,
AUTHORISED INVESTMENTS                                                       this fee is not separately deducted from your account.

•    Fixed income via Australian fixed income, international fixed
     interest, and/or corporate credit
•    Cash and cash equivalents

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