Westpac Active Series - Investment Statement

 
Westpac Active Series - Investment Statement
Westpac Active Series
Investment Statement

                       This is an Investment Statement for the purposes of the
                         Securities Act 1978 and is dated 18 September 2014
Westpac Active Series - Investment Statement
Westpac Active Series - Investment Statement
Important Information
(The information in this section is required under the Securities Act 1978.)
Investment decisions are very important. They often have long-term consequences.
Read all documents carefully. Ask questions. Seek advice before committing yourself.

Choosing an investment                                                              Financial advisers can help you make
When deciding whether to invest, consider carefully the answers to                  investment decisions
the following questions that can be found on the pages noted below:
                                                                                    Using a financial adviser cannot prevent you from losing money,
                                                                                    but it should be able to help you make better investment decisions.
What sort of investment is this?                                           10
                                                                                    Financial advisers are regulated by the Financial Markets Authority
Who is involved in providing it for me?                                    11
                                                                                    to varying levels, depending on the type of adviser and the nature of
How much do I pay?                                                         12       the services they provide. Some financial advisers are only allowed to
                                                                           13       provide advice on a limited range of products.
What are the charges?
                                                                           15       When seeking or receiving financial advice, you should check -
What returns will I get?
                                                                           18       – the type of adviser you are dealing with:
What are my risks?
                                                                           20       – the services the adviser can provide you with:
Can the investment be altered?
                                                                           21       – the products the adviser can advise you on.
How do I cash in my investment?
                                                                           22       A financial adviser who provides you with personalised financial
Who do I contact with inquiries about my investment?
                                                                                    adviser services may be required to give you a disclosure statement
Is there anyone to whom I can complain if I have problems                           covering these and other matters. You should ask your adviser about
with the investment?                                                       22       how he or she is paid and any conflicts of interest he or she may have.

What other information can I obtain about this investment?                 23       Financial advisers must have a complaints process in place and
                                                                                    they, or the financial services provider they work for, must belong to
                                                                                    a dispute resolution scheme if they provide services to retail clients.
In addition to the information in this document, important information
                                                                                    So if there is a dispute over an investment, you can ask someone
can be found in the current registered prospectus for the investment.
                                                                                    independent to resolve it.
You are entitled to a copy of that prospectus on request.
                                                                                    Most financial advisers, or the financial services provider they work for,
                                                                                    must also be registered on the financial service providers register. You
The Financial Markets Authority                                                     can search for information about registered financial service providers
regulates conduct in financial markets                                              at http://www.fspr.govt.nz

The Financial Markets Authority regulates conduct in New Zealand’s                  You can also complain to the Financial Markets Authority if you have
financial markets. The Financial Markets Authority’s main objective                 concerns about the behaviour of a financial adviser.
is to promote and facilitate the development of fair, efficient, and                This is an Investment Statement for the purposes of Securities Act
transparent financial markets.                                                      1978 and has been prepared as at 18 September 2014.
For more information about investing, go to http://www.fma.govt.nz

Investments made in the unit trusts within the Westpac Active Series (the Trusts) do not represent bank deposits or other liabilities of Westpac Banking Corporation
ABN 33 007 457 141, Westpac New Zealand Limited (Westpac NZ) or other members of the Westpac group of companies. They are subject to investment and
other risks, including possible delays in payment of withdrawal amounts in some circumstances, and loss of investment value, including principal invested. The
ultimate holding company of BT Funds Management (NZ) Limited (BT Funds Management) is Westpac Banking Corporation. None of BT Funds Management,
Westpac NZ, Westpac Banking Corporation, any member of the Westpac group of companies, The New Zealand Guardian Trust Company Limited (as Trustee),
or any director or nominee of any of those entities, or any other person guarantees any Trust’s performance, returns or repayment of capital. The Trusts are not
offered, and this Investment Statement does not constitute an offer, in any jurisdiction other than New Zealand. Disclosure statements under the Financial Advisers
Act 2008 are available on request and free of charge from any Westpac Financial Adviser.
                                                                                                                                                                       3
Westpac Active Series - Investment Statement
Key information about the Westpac Active Series
    This section answers the main questions you may have about the Westpac Active Series. You’ll find
    more detail on the relevant pages of this Investment Statement. All of the information is subject to
    change but is correct as at the date of this Investment Statement.

    General

    Throughout this Investment Statement, we use “we”, “our” or “us” to refer to the Manager (BT Funds Management).
    Whenever we use the words “you” or “your”, this refers to an investor or investors in the Trusts.
    Certain terms used in this Investment Statement are explained in the Glossary on page 24.

                                                               More information                                                               More information

    What is the                                                     Page
                                                                     10
                                                                                  How can I withdraw                                               Page
                                                                                                                                                    21
    Westpac Active Series?                                                        my money?
    The Westpac Active Series is a range of unit trusts that                      Generally, you can withdraw any or all of your investment
    invest across a number of asset classes. The Westpac                          in a Trust at any time.
    Active Series comprises the following five Trusts:
                                                                                  You can make lump sum and regular withdrawals so
    -   Westpac Active Income Strategies Trust                                    long as you meet the minimum withdrawal amounts and
    -   Westpac Active Conservative Trust                                         generally maintain the minimum holding.
    -   Westpac Active Moderate Trust
    -   Westpac Active Balanced Trust
    -   Westpac Active Growth Trust                                               How will my money                                                Pages
                                                                                                                                                   8-9
    The Trusts are New Zealand unit trusts,                                       be invested?
    set up under the Unit Trusts Act 1960.                                        You can invest in any or all of the Trusts. Each Trust
                                                                                  offers a different mix of investments with various levels
                                                                                  of risk and potential return.
    Who looks after the                                             Page
                                                                     11
    Westpac Active Series?
                                                                                  What are the charges?                                            Page
    We (BT Funds Management) are the Manager of the                                                                                                 13
    Trusts and the investment arm of Westpac in New                               The charges are:
    Zealand. We are supervised by the Trustee, which is
                                                                                  -	Management Fee
    The New Zealand Guardian Trust Company Limited.
                                                                                     This is an annual fee calculated daily as a percentage
                                                                                     of the gross value of the assets of each Trust and
                                                                                     paid monthly:
    How much do I need to invest?                                   Page
                                                                     12              Westpac Active Income Strategies Trust 0.80%
    How much you invest is largely up to you. You can invest
                                                                                     Westpac Active Conservative Trust 1.10%
    by way of lump sum investments or regular investments.
                                                                                     Westpac Active Moderate Trust 1.25%
    You can invest in one or more Trusts.
                                                                                     Westpac Active Balanced Trust 1.40%
    Lump sum investments                                                             Westpac Active Growth Trust 1.50%

    The minimum initial investment in a Trust is $5,000.                          	We currently pay the Trustee’s fee and any expenses
    After that, you can invest lump sums of $500 or more.                           we incur on a normal day to day basis from the
                                                                                    management fee we receive, so these are not
    Regular investments
                                                                                    deducted from the assets of the Trusts.
    If you choose to make regular investments, you can do so
                                                                                  -	GST
    weekly, fortnightly, monthly or quarterly. You must invest
                                                                                     GST will be added to any fees where applicable.
    a minimum of $1,200 per year. There is no minimum initial
    investment if you make regular investments.

4
More information                                                             More information

What are the risks?                                           Page
                                                               18
                                                                            Who can I ask for help?                                        Page
                                                                                                                                            22
Every investment has some level of risk and can go up or                    Call our team on 0800 738 641 or drop in to any Westpac
down in value. The main risk is investment risk – that you                  branch to make an appointment with a Westpac
may not get back the money you invest or that your returns                  Financial Adviser.
are less than you expect, due to changes in the value of
the assets in a chosen Trust or Trusts. The principal risks
that may produce this result are:

-   Market risk
-   Investment manager risk
-   Credit risk
-   Derivatives risk
-   Concentration risk
-   Liquidity risk

The Trusts are designed to provide different levels of risk
which depend on the asset classes in which they invest
and the proportion invested in each asset class.

Do we use related parties?                                    Page
                                                               14
We may enter into transactions with, and use the services
of, parties related to us (such as Westpac NZ and
Westpac Banking Corporation) in respect of the Trusts.
These arrangements will be on arm’s length terms.

We may invest the Trusts’ assets directly or indirectly in
funds where we are (or a related company is) the trustee or
manager. The Trusts will not incur any additional entry or
management fees for these investments.

                                                                                                                                                   5
Helping you make better financial decisions
    Westpac has been helping New Zealanders with their money since 1861. Whether you’re looking to save
    for retirement, a long-term goal or earn an income from your savings there are many financial decisions
    you need to make that will have a direct impact on your quality of life.

    Introducing the                                                             Income and growth assets
    Westpac Active Series                                                       Income Assets
                                                                                Cash and fixed interest are often referred to as income assets
    The Westpac Active Series offers a series of investment solutions
                                                                                because they generate income in the form of interest payments.
    that make it easy for you to invest in your future. The Westpac Active
                                                                                Generally Trusts that invest in a higher proportion of income assets
    Series can help you achieve the things you’ve always dreamed of.
                                                                                can be expected to deliver modest but more consistent returns.
    You’ll discover that it’s easy to implement and just as easy to change      They are less likely to go up and down, but will usually provide lower
    should your situation change. You’ll always be in the driver’s seat.        returns over the long term.
    In the following pages you’ll find important information you need to        Growth Assets
    know before you make your decision. It includes the things we have          Shares and property are often referred to as growth assets because
    to tell you by law, and other information we think you’ll find useful. If   (though they involve more risk) they have greater potential to achieve
    you’ve got any questions once you’ve read this, you can talk with a         capital growth over the medium to long term than income assets.
    Westpac Financial Adviser or call 0800 738 641.                             Trusts with more exposure to growth assets have the potential for
                                                                                higher long-term returns, but they are more likely to go up and down
    The range of investment solutions                                           in the short term and will experience periods of negative returns.

    Each Trust in the Westpac Active Series has been constructed with           Alternative investments tend to be a mixture of both growth and
    a specific investment strategy and investment timeframe in mind,            income assets, and are currently treated as growth assets for the
    and as a result they each have a distinct mix of income assets, or          purpose of portfolio construction.
    income and growth assets.
                                                                                This graph shows how different assets have different risk and
    For example, the Westpac Active Income Strategies Trust has                 potential return profiles:
    exposure to income assets only, while the majority of the Westpac
    Active Growth Trust’s exposure is to growth assets. The Trusts may              Higher                                                                Shares
    also invest in alternative investments, a growing range of assets that        Potential
                                                                                    Return
    do not fall into the four main asset classes.
                                                                                                                                         Property

                                                                                                                       Fixed Interest

                                                                                      Low                Cash
                                                                                  Potential
                                                                                    Return

                                                                                              Low Risk                                                    Higher Risk

                                                                                          This is intended solely to illustrate concepts. It is not a prediction
                                                                                          of the future returns from, or the investment performance of,
                                                                                          any of the Trusts.

                                                                                See pages 8-9 for an overview of the characteristics of each Trust,
                                                                                and benchmark asset allocation at the date of this Investment
                                                                                Statement.

6
Risk and return
The chart below shows how, depending on risk levels, returns on an investment can go up and down quite differently over different
time periods.

-	The lower risk investment mostly contains income assets.
-	The medium risk investment is spread more evenly between income assets and growth assets.
-	The higher risk investment mostly contains growth assets.

For each investment, potential return ranges are shown as concepts over two periods:

The red bar shows a range of potential returns over 1 year.
The grey bar shows a range of potential average annual returns over 10 years.

                                                                                                                Higher risk
                                                                                                                investment
                          Greater                                           Medium risk
                          positive                                          investment
                          returns

                                               Lower risk
                                               investment

                          Greater
                          negative
                          returns

                                          1 year return range             10 year average annual return range

                                     This is intended solely to illustrate concepts. It is not a prediction of the future
                                     returns from, or the investment performance of, any of the Trusts.

The chart shows how, for each investment, the range of potential returns over 1 year is wider than the range of potential annual returns
averaged over 10 years. This is because extreme market events can occur which may have a major impact on short term returns. The
economy generally works in cycles, with periods of expansion followed by lower growth or recession, and then renewed expansion. The longer
the investment period, the more room there is for the effects of extreme events or market downturns to be smoothed out (this is why there is a
narrower range of potential returns over 10 years for each investment).

Growth assets are typically more sensitive to market events, so the more growth assets an investment contains the wider the range of potential
returns across both the 1 year and 10 year timeframes.

Selecting your investment option
An effective way to try and balance risk and return is to ensure the timeframe of your chosen investment reflects your investment timeframe,
and the profile of the investment reflects your appetite for risk.

Westpac’s financial advisers
A Westpac Financial Adviser can help you make better financial decisions by explaining your investment options and the potential risks
involved. They can also help you decide which Trust or Trusts are best for you, and help you to develop a financial plan to achieve your long-
term financial goals. Each plan is tailored to your goals, risk appetite and financial situation.

Westpac has a team of authorised financial advisers located around New Zealand. To find out how Westpac can help you, just call 0800 738
641 or visit your local branch and arrange an appointment with your local Westpac Financial Adviser.

                                                                                                                                                 7
A closer look at the Trusts
    The table below gives an overview of the characteristics of each Trust, and benchmark asset allocation at the
    date of this investment statement.

                                              Westpac Active                                                                     Westpac Active
                                              Income Strategies Trust                                                            Conservative Trust

    Investment
    Allocations
        Income Assets                                                 RECOMMENDED
                                                                    MINIMUM TIMEFRAME
                                                                                                                                                     RECOMMENDED
                                                                                                                                                   MINIMUM TIMEFRAME

                                                                     Medium Term                                                                    Medium Term
        Growth Assets

    Benchmark                                 Cash                                                     20%                       Cash                                                               23%
    Asset Allocation                          NZ and international                                                               NZ fixed interest1                                                 24%
                                              fixed interest1 and mortgages                             80%                      International fixed interest                                       33%
                                                  Total Income Assets                                  100%                          Total Income Assets                                            80%
                                                                                                                                 Property                                                            3%
                                                                                                                                 Australasian shares                                                 7%
                                                                                                                                 International shares                                                8%
                                                                                                                                 Alternative investments2                                            2%
                                                                                                                                     Total Growth Assets                                            20%

                                                                                                                                                               Cash

    Investment                                                                                                                                                 NZ fixed interest
    Ranges                                    Cash
                                                                                                                                                                            International fixed interest

    This shows you the                                                                                                               Property
                                              NZ and international fixed interest and mortgages
    permitted ranges for each                                                                                                                 Australasian shares

    asset class. It also shows                                                                                                                International shares
    you the benchmark asset
                                                                                                                                     Alternative investments
    allocations
                                          0          10     20      30      40      50      60    70     80   90   100       0      10       20     30      40        50     60       70       80          90   100
                                                                                                                    %                                                                                           %

                                               Benchmark                                                                         Benchmark

    Investment                                • A ims to achieve stable returns with low                                        • A ims to achieve stable returns with
    Characteristics                              levels of capital growth with low levels of                                        some capital growth over the medium term
                                                 risk over the medium term                                                          with low levels of risk
                                              • Expected to provide the lowest levels                                           • Volatility is likely to be higher than the
                                                 of volatility of the Trusts                                                        Westpac Active Income Strategies Trust but
                                              • Long-term returns are likely to be lower                                           lower than the Westpac Active Moderate
                                                 than for investments that include growth                                           Trust
                                                 assets                                                                          • Returns will vary and may at times be
                                              • Returns will vary and may at times be low                                          low or negative
                                                 or negative

    Benchmark asset allocation                                                                         We may alter the benchmark allocation and the ranges for each Trust
                                                                                                       at any time. You may request copies of a Trust’s benchmark asset
    Each Trust has a ‘benchmark’ asset allocation reflecting our intended                              allocation and ranges, and actual asset allocation, by contacting us or a
    long-term allocation to each asset class. The actual asset allocation will                         Westpac Financial Adviser.
    vary from this benchmark asset allocation as market prices change and                              Further information regarding the authorised investments for each Trust
    when we pursue tactical investment opportunities or seek to protect                                is contained in the investment guidelines for the Trusts, a copy of which
    asset values in volatile economic periods. These variations may be                                 can be obtained from us on request.
    significant but are restricted by permitted ranges above and below each
    benchmark.
                                                                                                       Fund descriptions
    Benchmark and actual asset allocations take into account both direct
    and indirect investments and the effects of derivative contracts. While                            Where we describe a Trust’s potential risk and return, the description used
    derivatives may be used in each asset class, the use of derivatives may                            (i.e. “low’”, “high”) is our assessment of a Trust’s risk and return profile.
8   be more extensive in the International Fixed Interest and Alternative                              This assessment is based on the expected volatility and long term return in
    Investments asset classes.                                                                         normal market conditions for the asset classes the Trust invests in.
Westpac Active                                                                       Westpac Active                                                                         Westpac Active
           Moderate Trust                                                                       Balanced Trust                                                                         Growth Trust

                                 RECOMMENDED                                                                      RECOMMENDED                                                                            RECOMMENDED
                               MINIMUM TIMEFRAME                                                                MINIMUM TIMEFRAME                                                                      MINIMUM TIMEFRAME
                                  Medium to                                                                          Medium to                                                                            Long Term
                                  Long Term                                                                          Long Term

           Cash                                                             10%                 Cash                                                           5%                      Cash                                                               4%
           NZ fixed interest1                                               22%                 NZ fixed interest1                                            15%                      NZ fixed interest1                                                 7%
           International fixed interest                                     28%                 International fixed interest                                  20%                      International fixed interest                                       9%
                Total Income Assets                                         60%                       Total Income Assets                                     40%                             Total Income Assets                                    20%
           Property                                                          5%                 Property                                                       5%                      Property                                                      10%
           Australasian shares                                              13%                 Australasian shares                                           20%                      Australasian shares                                           25%
           International shares                                             17%                 International shares                                          29%                      International shares                                          37%
           Alternative investments2                                          5%                 Alternative investments2                                       6%                      Alternative investments2                                       8%
                Total Growth Assets                                         40%                       Total Growth Assets                                     60%                             Total Growth Assets                                    80%

                             Cash                                                                              Cash                                                                                Cash

                                NZ fixed interest                                                              NZ fixed interest                                                              NZ fixed interest

                                                International fixed interest                                                       International fixed interest                                         International fixed interest

           Property                                                                               Property                                                                                    Property

                       Australasian shares                                                                        Australasian shares                                                                             Australasian shares

                             International shares                                                                                  International shares                                                                            International shares

               Alternative investments                                                                Alternative investments                                                                 Alternative investments

0      10       20      30          40     50         60      70       80      90   100   0      10       20    30      40          50       60       70          80   90   100   0      10       20      30       40      50          60    70      80        90   100
                                                                                    %                                                                                       %                                                                                       %

    Benchmark                                                                                 Benchmark                                                                               Benchmark

           • A ims to achieve moderate levels of                                               • A ims to achieve capital growth over                                                • A ims to achieve capital growth over
              capital growth over the medium to                                                    the medium to long term with medium                                                    the long term with high levels of risk
              long term with moderate levels of risk                                               levels of risk                                                                      • Expected to provide the highest
           • Volatility is likely to be higher than                                            • Volatility is likely to be higher than                                                 levels of volatility of the Trusts
              the Westpac Active Conservative                                                      the Westpac Active Moderate Trust,                                                  • Returns will vary and may at times
              Trust, but lower than the Westpac                                                    but lower than the Westpac Active                                                      be low or negative
              Active Balanced Trust                                                                Growth Trust
           • Returns will vary and may at times                                                • Returns will vary and may at times be
              be low or negative                                                                   low or negative

       Currency exposure
       Foreign currency exposures in the Trusts (with the exception of the Westpac Active Income Strategies Trust) may be fully or partially hedged as
       considered appropriate. Under normal circumstances currency exposure will be fully hedged in the Westpac Active Income Strategies Trust.
       Details of the currency strategy by asset class are contained in the prospectus.

       1
            Z fixed interest securities will generally be issues denominated in New Zealand dollars, but may also include issues made by New Zealand or Australian entities
           N
           denominated in foreign currencies.
       2
           Alternative investments are investments that do not fall within the main asset classes. Alternative investments can include hedge funds, absolute return funds,
            commodity investments, venture capital and private equity. Investment strategies that may be found in some alternative investments include the use of gearing
            (obtaining greater exposure to markets than the net value of an underlying asset) and short selling (selling something you do not own with a view to buying it back later
            at a lower price).                                                                                                                                                                                                                             9
What sort of investment is this?

     The Westpac Active Series is a range of unit                             The Trusts are diversified
     trusts that invest across a number of different                          The Trusts invest in a range of asset classes. Asset classes may
     asset classes. You can invest by making lump                             include cash, fixed interest, shares, alternative investments, property
                                                                              and for the Westpac Active Income Strategies Trust only, mortgages.
     sum payments, regular payments, or both.
                                                                              For the ‘benchmark’ asset allocation for each Trust see pages 8-9.
     You’ll also have the flexibility to change your
                                                                              The Trusts invest in these assets either directly (by buying the assets)
     investment when it suits.                                                or indirectly by investing in other funds. The exact make up of a Trust
                                                                              will depend on the underlying investment strategy behind it.

     Your choice of Trusts                                                    How the Trusts work
     In the Westpac Active Series, there are five Trusts you can choose       Your money buys units in the Trust or Trusts you choose. Each unit
     from, each offering a different mix of investments with various levels   represents a share of the Trust, so changes in the value of the assets
     of risk and potential return. This means you can choose the Trust or     in that Trust will affect the value of the units you own. In other words,
     Trusts that suits your risk profile and investment goals.                if the assets of the Trust go up in value, your units will be worth more
                                                                              and if they go down in value, your units will be worth less.
     The five Trusts are:
                                                                              Any returns on your investment are generally reflected in the unit price
     - the Westpac Active Income Strategies Trust                             of the Trust or Trusts you’ve chosen to invest in.

     - the Westpac Active Conservative Trust
                                                                              Making an investment
     - the Westpac Active Moderate Trust
                                                                              If you’d like to invest, you’ll need to complete the application form at
     - the Westpac Active Balanced Trust                                      the back of this Investment Statement.

     - the Westpac Active Growth Trust.

     Who can invest?
     This offer is only open to you if you are in New Zealand. You need
     to let us know if you change your address or leave New Zealand
     permanently.

     The Trusts are managed funds
     When you invest, your money will be combined with others in the
     Trust you choose. This means you have access to a wider range of
     investment choices and greater buying power than you would usually
     have if investing alone.

     It also means that your investment will be managed and overseen
     by an experienced team of investment professionals.

     Each Trust is a portfolio investment entity (PIE) for tax purposes.

10
Who is involved in providing it for me?

The Trusts have a Manager, Promoters and a                                   The Trustee’s principal place of business is Level 15, 191 Queen Street,
                                                                             Auckland 1010.
Trustee who all play different roles.
                                                                             Administration Managers
                                                                             Trustees Executors Limited, MMC Limited and The Hongkong and
Manager - BT Funds Management
                                                                             Shanghai Banking Corporation Limited provide certain administrative
(NZ) Limited
                                                                             functions for the Trusts.
We (BT Funds Management) are the Manager and issuer of the Trusts.
                                                                             Trustees Executors Limited’s principal place of business is Level 5,
We are responsible for the implementation of the Trusts’ investment
                                                                             10 Customhouse Quay, Wellington 6011.
strategies and their administration.
                                                                             MMC Limited’s principal place of business is Level 13, Citigroup Centre,
We are the investment arm of Westpac in New Zealand and one of
                                                                             23 Customs Street East, Auckland 1010.
New Zealand’s leading fund managers, with over $6 billion of funds
under management. We provide a broad range of managed funds                  The Hongkong and Shanghai Banking Corporation Limited’s principal
offering access to different asset classes, securities and investing         place of business is Level 9, HSBC House, 1 Queen Street,
styles with the objective of helping our customers achieve their             Auckland 1010.
investment goals.
                                                                             Please note: the addresses of the Manager, Promoters, Trustee and
Our principal place of business is Westpac on Takutai Square,                Administration Managers (and the directors of us and Westpac NZ)
16 Takutai Square, Auckland 1010.                                            may change at any time without us notifying you. You can always find
                                                                             company address details and lists of directors online at
Our contact address is Westpac on Takutai Square, 53 Galway Street,
                                                                             www.business.govt.nz/companies.
Auckland 1010.

Our directors are:                                                           Trusts
- Leigh James Bartlett of Auckland
                                                                             The Trusts are New Zealand unit trusts, set up under the Unit Trusts Act
- Patrick Keble Farrell of Sydney, Australia
                                                                             1960. This Investment Statement covers the five different Trusts that
- Ian Nicholas New of Wellington
                                                                             make up the Westpac Active Series. They are:
- Simon James Power of Auckland.
                                                                             - Westpac Active Balanced Trust (established 31 July 1992)
See the prospectus for director biographies. Information on the roles
                                                                             - Westpac Active Conservative Trust (established 31 July 1992)
that are key to the management of our business is available in the
                                                                             - Westpac Active Growth Trust (established 30 November 1994)
prospectus, by calling us on 0800 738 641, or by visiting
                                                                             - Westpac Active Moderate Trust (established 4 January 2012)
www.westpac.co.nz and searching for the document
                                                                             -	Westpac Active Income Strategies Trust (established 4 January 2012).
“Key roles within BT Funds Management”.
                                                                             You can read more about how the Trusts work under “What sort of
Promoters                                                                    investment is this?”.
Promoter is a special term used in the Securities Act 1978. Essentially it
describes any people or companies involved in planning or developing         Investment management
the Trusts. BT Funds Management, and Westpac NZ and its directors            We utilise the skills and expertise of specialist investment managers for
(except anyone who is a director of both companies) are all Promoters        certain asset classes. We currently do this by buying units in other funds
of the Trusts.                                                               (Specialist Funds).
Westpac NZ’s principal place of business is Westpac on Takutai Square,       We consider a number of factors when selecting Specialist Funds,
16 Takutai Square, Auckland 1010.                                            including the investment managers of those Specialist Funds. When
Westpac NZ’s contact address is Westpac on Takutai Square,                   assessing those investment managers we look for specialists who
53 Galway Street, Auckland 1010.                                             have a well defined and robust investment philosophy and process,
                                                                             and who possess above average research skills. We regularly monitor
Westpac NZ’s directors who are Promoters are:                                investment performance, portfolio holdings, compliance, changes to
- Malcolm Guy Bailey of Feilding                                             key investment personnel and business factors (among other matters).
- Philip Matthew Coffey of Sydney, Australia
- Janice Amelia Dawson of Auckland                                           The investment managers of the Specialist Funds may include us or
- Christopher John David Moller of Lower Hutt                                our related companies and may change at any time without us notifying
                                                                             you. The Trusts currently have no directly appointed investment
- Peter David Wilson of Otaki.
                                                                             managers.

Trustee                                                                      You can find out more about the Specialist Funds and their investment
                                                                             managers in the prospectus, by calling us on 0800 738 641 or by
The New Zealand Guardian Trust Company Limited is the Trustee.
                                                                             searching for a document called “Westpac Active Series Investment
It is responsible for supervising the performance of our duties and for
                                                                             Managers” that you’ll find at www.westpac.co.nz.
holding (itself or through its nominees or custodians) all of the assets
of the Trusts. The Trustee is licensed to act as a trustee under the
Securities Trustees and Statutory Supervisors Act 2011.
                                                                                                                                                          11
How much do I pay?

     How much you invest is largely up to you.                                Investing by automatic payment
     You can make lump sum or regular investments.                            or direct credit
     Every investment you make buys units in your                             You can make regular automatic payments or direct credits directly
                                                                              into Guardian Nominees Limited’s bank account: 03 0584 0026000 84.
     chosen Trust.
                                                                              If you choose to make a payment in this way, we will need:

                                                                              -   your unitholder number
     Lump sum investments
                                                                              -	the short name for the Trust you are investing into
     You can make lump sum payments to any Trust at any time. You must           (eg “Moderate” or “Growth”)
     make the minimum initial investment of $5,000 for each Trust. Once
                                                                              -   your last name
     you’ve met that, you can make lump sum investments of $500
     or more.                                                                 We may change the payment methods from time to time.

     Your initial lump sum investment can be paid at any Westpac branch,
                                                                              How much is a unit worth?
     by contacting a Westpac Financial Adviser or by cheque.
     Any further lump sums can be paid by direct credit or cheque.            When you invest in a Trust your money is used to buy units.
                                                                              These units change in price depending on the value of that Trust’s
     Regular investments                                                      assets and the fees and expenses payable by the Trust.

     You can make regular investments weekly, fortnightly, monthly            We generally calculate a unit price for each Trust on each business
     or quarterly. If you choose to make regular investments in a Trust,      day. There may be some times when we are not able to calculate
     you do not need to make the minimum initial investment for that Trust.   a unit price. You can read more about the pricing of units in the
     However, you must make a minimum annual investment of $1,200.            prospectus.
     You are free to change the amount whenever you like. You can make
                                                                              Currently, you can buy or sell units at the same unit price. We can,
     regular investments by direct debit or automatic payment.
                                                                              however, set different prices for buying and selling units after taking
     If you miss any regular investments you won’t be issued any units for    into consideration any transaction costs. Read more about this under
     the investments you miss.                                                “What are the charges?”.

     Making your investments                                                  What unit price applies?
     You can make payments at any Westpac branch or by contacting a           When you invest, you will buy units at the unit price that we determine
     Westpac Financial Adviser. All payments are made to the Trustee’s        applies to the day and time we accept your complete application and
     nominee, Guardian Nominees Limited.                                      receive payment. This may be different from the unit price on the day
                                                                              you posted or lodged your form or made payment. We currently have
     Investing by cheque                                                      a daily cut off time of 4pm. If we accept your application after 4pm,
                                                                              the unit price for the next business day will apply.
     Any payment you make by cheque should be made out to Guardian
     Nominees Limited and crossed “Not Transferable”.

     Investing by direct debit
     You can set up a direct debit by simply completing the direct debit
     authority at the back of this Investment Statement and giving it to a
     Westpac Financial Adviser or taking it to any Westpac branch.

12
What are the charges?

There are various charges that may apply when                           Trustee fee
you invest in a Trust in the Westpac Active Series.                     The Trustee receives an annual fee for the services it provides. This fee
These include management and trustee fees,                              is currently up to 0.04% per annum of the gross value of the assets of
                                                                        each Trust. We currently pay the Trustee’s fee from the management
and expenses. While all fees are subject to change,
                                                                        fee we receive so it isn’t deducted from the Trusts. However, the
we work hard to ensure that they are competitive.                       Trustee may charge its fee to the relevant Trust if we do not pay it.
You can find out more about fees at any time by
                                                                        Expenses
calling us on 0800 738 641.
                                                                        We and the Trustee are each entitled to be reimbursed for any
                                                                        expenses incurred in performing our respective roles. These expenses
                                                                        will vary from time to time and the exact amount won’t usually be
Management fee
                                                                        known in advance. All expenses paid by a Trust are shown in its
Each Trust has an annual management fee that is calculated daily        financial statements.
as a percentage of the gross value of the assets of each Trust.
                                                                        We may choose (at our discretion) not to be reimbursed for any
This management fee is deducted monthly from each Trust and paid
                                                                        expenses. Currently we have chosen not to be reimbursed for all
to us. Below are details of each Trust’s current management fee.
                                                                        expenses we incur on a normal day to day basis in the operation
                                                                        and administration of the Trusts. We meet these expenses from the
  Trust                                         Management fee
                                                                        management fee we receive. Any other expenses incurred will be paid
                                                                        from the Trusts. Read more about this in the prospectus.

  Westpac Active Income Strategies Trust            0.80% p.a.
                                                                        GST
  Westpac Active Conservative Trust                 1.10% p.a.
                                                                        GST is not included in any of the stated fees. GST will be added to
  Westpac Active Moderate Trust                     1.25% p.a.          any fees where applicable.
  Westpac Active Balanced Trust                     1.40% p.a.
                                                                        Fees and expenses affect your returns
  Westpac Active Growth Trust                       1.50% p.a.
                                                                        Where any fees and expenses are paid out of the assets of your
                                                                        chosen Trust, they will affect the return of that Trust. How much these
We may invest the Trusts in other Specialist Funds that will in most
                                                                        affect your returns will depend on their size.
cases also charge management fees. Investment in Specialist Funds
can be direct or through other funds which we manage. Our current
                                                                        Financial advisers
policy means that you do not bear the cost of management fees
charged by the Specialist Funds which we choose. We ensure this by      We may at our discretion pay amounts (including non-monetary
adjusting either the management fees applied by the Specialist Funds    benefits) from the fees we receive to financial advisers or other
or our own fees. Read more about related party arrangements on the      persons we have approved. These payments are not an additional
following page.                                                         cost to you. We are not responsible for the advice given to you by
                                                                        these advisers.
Specialist Funds may also charge other fees (such as performance
fees) and incur expenses (such as transaction costs). Where these
fees and expenses are paid, they will affect the value of the Trusts
and consequently have an impact on returns. Other than in relation
to the Westpac Active Income Strategies Trust, we do not expect the
combined total of these other fees charged and expenses incurred
by the Specialist Funds to exceed 0.05% of the gross value of the
assets of any Trust. For the Westpac Active Income Strategies Trust
we do not expect the combined total of these other fees charged and
expenses incurred by the Specialist Funds to exceed 0.10% of the
gross value of the assets of the Trust. You can obtain details of any
fees charged by Specialist Funds by calling us on 0800 738 641.

                                                                                                                                                    13
Transaction costs                                                         Fees may vary
     Some managed funds maintain a difference between the buying price         We may agree with the Trustee to vary the fees from time to time.
     and the selling price of units. This difference is commonly known as      Fees not currently charged, may also be introduced at any time as
     a “spread”. A spread occurs when the cost of buying or selling the        permitted by the trust deed. You can check the fees at any time by
     assets of a Trust are included in the buying or selling price of units.   calling 0800 738 641.
     It is not paid to anyone as a fee. We don’t currently apply a spread
     to any Trust, although we could choose to do so in the future.            Related party arrangements
     A spread may be used in some of the Specialist Funds in which             Any Trust may invest (directly or indirectly) in Specialist Funds where
     the Trusts invest.                                                        we are (or one of our related companies is) the trustee, manager or
                                                                               responsible entity. If a Trust invests in such a Specialist Fund, it will
     Read more about unit pricing in “How much do I pay?”.
                                                                               not pay any entry fee or the management fee for that Specialist Fund
     You can switch your investment between the Trusts at any time and         (or the amount of the fee will be refunded). If the trustee of such a
     there is no charge for switching. However, a switch is treated as         Specialist Fund is the Trustee (or a related company), then it will not
     buying and selling units in the Trusts you’re switching between so,       charge the trustee fee for that Specialist Fund to the relevant Trust
     although they don’t currently do so, spreads may apply. The same          (or will refund that fee). Other fees or expenses for the Specialist Fund
     investment minimums also apply as outlined under “How much do             will still be payable and will affect the value of the relevant Trust.
     I pay?”.
                                                                               We may enter into transactions with, and use the services of, parties
     There are tax related consequences of buying, selling and switching.      related to us in respect of the Trusts. These arrangements will be on
     Read “General information about taxes” for more about that.               arm’s length terms.

14
What returns will I get?

Your returns are reflected in the amount you                             Payment of withdrawals
receive when you make a withdrawal from a Trust.                         We are legally responsible for paying any withdrawals. However, in
The investment performance of a Trust, any fees                          certain exceptional circumstances we can decide to suspend or delay
                                                                         payment of withdrawal amounts. For example, we may determine
and expenses and tax will influence the returns
                                                                         in good faith that it is in the interests of all investors in the relevant
you receive.                                                             Trust to delay payments. We may also delay payments if withdrawal
                                                                         requests are received for a significant proportion of a Trust in a short
                                                                         period of time. We may also refuse to allow a withdrawal where
Three key factors to consider                                            necessary to protect a Trust’s PIE status.
Three key factors that influence returns are:
                                                                         Payment of distributions
-	Investment performance – this will depend on which Trust or Trusts
   you invest in and how those Trusts perform over time. This is         On our direction, the Trustee is legally responsible for paying any
   explained in more detail below.                                       distributions. We do not currently intend to pay regular distributions
                                                                         to you. Instead, any returns to you will be by way of an increase in the
-	Fees and expenses – these are explained in more detail under
                                                                         unit price. We reserve the right to pay distributions, however, and may
   “What are the charges?”.
                                                                         vary the distribution policy from time to time.
-	Taxation - this will depend on your prescribed investor rate (PIR)
                                                                         If we decide to pay a distribution from a Trust, the amount to be
   and the current tax treatment of a Trust and its assets. Read more
                                                                         distributed to you will be based on the number of units you hold at the
   about tax on the following pages.
                                                                         relevant time.
What is investment performance?                                          We may adjust any distribution we pay you or your unit holding to
Your returns will depend on the investment performance of the Trust      account for any PIE tax that is attributable to you. See “General
or Trusts you invest in. Investment performance includes both capital    information about taxes” for more details on PIE tax.
growth (and losses) and income earned from interest and dividends.       If we decide to pay a distribution from a Trust, we may offer a
The unit price of a Trust depends on the value of the Trust’s assets     distribution reinvestment option. If you choose this option, we will
(reflecting its investment performance).                                 issue units in your name at the unit price applicable to the first
                                                                         business day following the date we pay the distribution.
The investment performance of a Trust is related to the type of assets
it invests in. Generally speaking, the more growth assets you have in    For any distribution reinvestment the minimum levels of investment
an investment, the more likely you are to have negative returns in the   will not apply.
short term, but also the more likely you are to achieve higher returns
                                                                         Any distribution reinvestment plan (if offered) will comply with the
over the long term.
                                                                         requirements of, and contain the terms and conditions required under,
There is no guarantee on returns and no amount of returns is             the Securities Act (Dividend Reinvestment) Exemption Notice 1998,
promised.                                                                as amended or substituted from time to time.

                                                                                                                                                      15
General information about taxes                                                        Your investment will be taxed at your PIR

     Different investors may be taxed at different rates and all tax                        Each Trust is a PIE for tax purposes. This means that:
     legislation is subject to change.
                                                                                            -	Every day, we will calculate the amount of taxable income (or loss)
                                                                                               and any tax credits or other amounts attributable to you; and
     If you have questions about how tax affects your personal
     circumstances we recommend you talk to an independent                                  -	We will pay tax (if any) on the taxable income attributable to you
     tax adviser.                                                                              at your PIR. You must provide your IRD number and PIR otherwise
                                                                                               the highest PIR will apply.

     The current PIRs that may apply to you are as follows:

       Your PIR will be one of:      New Zealand tax resident individual investors

       10.5%                          If in either of one of the last two income years:

                                      -   Your taxable income (excluding income from PIEs) was $14,000 or less; and

                                      -   Your total income (including PIE income after subtracting PIE losses) was $48,000 or less.

                                      If you don’t qualify for the 10.5% rate but in either of the last two income years:
       17.5%                          -   Your taxable income (excluding income from PIEs) was $48,000 or less; and

                                      -   Your total income (including PIE income after subtracting PIE losses) was $70,000 or less.

       28%                            If you don’t meet the requirements for the 10.5% or 17.5% rates, or fail to notify a PIR or
                                      your IRD number.

                                     Other investors

       Your PIR                       If you are a New Zealand tax resident and are a:

       will be 0%                     -   Company

                                      -   Registered charity

                                      -   PIE Investor Proxy

                                      -   Unit trust

                                      -   Group investment fund (other than a designated group investment fund)

                                      -   PIE

                                      -   Superannuation fund or trustee of a trust (that has not elected another PIR)

       You can select                 If you are a New Zealand tax resident trustee of a trust (including a family trust and a superannuation fund
                                      but not a unit trust or charitable trust).
       a PIR of 0%,
       17.5% or 28%                   Trustees of certain testamentary trusts can also select the 10.5% PIR.

       Your PIR                       If you are not a New Zealand tax resident, or fail to notify a PIR or your IRD number.

       will be 28%

     Income years generally run from 1 April in any year to 31 March the following year.

16
Non-New Zealand income counts when calculating your PIR                         Investment through a portfolio service

When you work out your PIR, you must include non-New Zealand                    Where the units are held through an investor directed portfolio
income in calculating your taxable income for any particular income             service or nominee or custody service which is a proxy for an
year – even if you weren’t tax resident in New Zealand when that                investor in a PIE (PIE Investor Proxy), the PIE Investor Proxy will
income was earned. This is especially important for new residents               be responsible for looking after the tax of that investor. This means
to consider.                                                                    it will pay tax, and attribute income, losses, tax credits and refunds
                                                                                for tax purposes, in respect of the units. Neither we, nor the Trustee,
In some cases, new residents can elect out of this treatment. Just go
                                                                                will be liable for the attribution of income, losses or refunds nor the
to the Inland Revenue’s website www.ird.govt.nz to find out more.
                                                                                payment of tax in respect of units held by the PIE Investor Proxy.

It’s important to let us know your correct PIR and IRD number
                                                                                How Trust assets are taxed
It’s very important to let us know your correct PIR and IRD number
                                                                                As a PIE any gains made by a Trust from selling shares:
when you apply. If your notified PIR is too low, you may need to
pay any tax shortfall at your income tax rate (plus any interest and            -   in companies or unit trusts resident in New Zealand; or
penalties) and file a tax return. If your notified PIR is too high, you can’t
                                                                                -	in certain companies that are resident in Australia, listed on an
claim back any excess tax we pay on your behalf because PIE tax is a
                                                                                   approved Australian Securities Exchange index (which currently
final tax in this situation. If you don’t provide your PIR and your correct
                                                                                   includes the All Ordinaries Index) and maintain a franking credit
IRD number, then all taxable income attributed to you will be taxed at
                                                                                   account,
28%. Finally, it is important to let us know if your PIR changes (unless
the change is due to a change in the statutory tax rates rather than a          will not be taxed. Dividends on these shares are taxable, but the tax
change in your income).                                                         liability may be offset by any imputation credits or foreign withholding
                                                                                tax credits received, subject to certains limits.
Please note: the Inland Revenue can require us to disregard your
notified PIR if it considers the rate is incorrect. If this is the case,        The Trusts have Foreign Investment Fund (FIF) international share
we must apply whichever rate the Inland Revenue considers                       interests, which include shares in overseas companies (other than
appropriate.                                                                    the Australian companies described above) and units in overseas
                                                                                unit trusts. The Trusts will generally be treated as deriving taxable
Joint investors                                                                 income equal to 5% of the average daily market value of FIF interests
                                                                                for each income year.
Joint investors will be treated as a single investor with a PIR equal to
the highest PIR of the joint investors. If you are a joint investor then        Dividends or profits from selling most FIF international share interests
each of you needs to provide us with your PIR and IRD number or                 are not taxed. Tax credits received for any withholding tax paid on
tax will be deducted at the highest PIR (currently 28%).                        dividends may be offset against the Trusts’ tax liability, subject to certain
                                                                                limits. Generally, the Trusts may not claim a tax deduction for any losses
Trustees                                                                        in respect of a FIF international share interest.

Trustees that elect a PIR that is lower than 28% must include the PIE           The Trusts are taxed under the ordinary tax rules in respect of their
income in their tax return and pay any applicable tax themselves (with          other assets not covered above.
a credit for tax paid by the Trust in respect of the PIE income).
                                                                                You can read more about how the Trusts are taxed in the prospectus.

How we pay tax on your behalf
                                                                                Other tax information
We work out the PIE tax that is attributable to you and then cancel
                                                                                You should not be subject to tax on any distributions from the Trusts
units equal in value to that amount. Similarly, if you are due a
                                                                                or sale of your units. You may be subject to tax on transfers in certain
refundable PIE tax credit, we’ll issue additional units equal in value
                                                                                circumstances. See the prospectus for more details.
to the amount of the refund. We’ll usually make these adjustments
for PIE tax after the end of the relevant Trust’s income year.                  You can read more about PIEs and on tax generally in the prospectus or
                                                                                at www.ird.govt.nz. If you have any questions about tax, we recommend
However, if you withdraw, switch, or transfer units during the year,
                                                                                talking to an independent tax adviser.
then we’ll make tax adjustments at that time.

                                                                                                                                                                17
What are my risks?

     Every investment has some level of risk. Before you                         Market risk: many factors affect market performance generally and,
                                                                                 therefore, the value of assets in which the Trusts invest. These can
     invest it’s important to understand what those
                                                                                 include the state of the economy (both domestic and overseas);
     risks are and how comfortable you feel about them.                          the performance of individual entities; tax laws and other regulatory
     This section explains the principal risks associated                        conditions; political events; inflation; market sentiment; movements
                                                                                 in interest rates and currency and broader events like changes in
     with the Westpac Active Series and how they might
                                                                                 technology or environmental events. We seek to reduce market risk to
     impact on returns.                                                          some extent by diversifying across asset classes, investment sectors,
                                                                                 countries, investment managers and/or investment styles. The Trusts
                                                                                 that invest in international markets are exposed to movements in
                                                                                 foreign currencies, which may have an adverse effect on the domestic
     What is risk?
                                                                                 value of their international investments.
     Risk is the likelihood that you may not get back the money you invest
                                                                                 We set out the extent to which we may manage currency movements
     or that your returns are less than you expected. The level of return
                                                                                 for each Trust at page 9.
     from your investment is usually related to the level of risk in the
     Trust you invest in and the length of time you are invested.                Investment manager risk: the allocation of a Trust’s investment
                                                                                 between asset classes, investment sectors and individual investments
     As a general guide, the Trusts with a greater exposure to income
                                                                                 will affect returns, as will the performance of the businesses
     assets usually offer more stable but lower potential returns over a
                                                                                 underlying the investments. Even though investment managers
     longer timeframe. The Trusts with a greater exposure to growth
                                                                                 make the investment decisions, the outcomes cannot be predicted
     assets have the potential for greater long-term returns but are usually
                                                                                 with certainty and results will vary accordingly. To manage this risk
     more volatile.
                                                                                 we seek to utilise professional investment managers whom we
                                                                                 regularly monitor. We select any Specialist Funds and their investment
     What is volatility?
                                                                                 managers according to specific criteria (which involves considering
     Volatility describes how much the value of an investment or asset           a number of factors).
     varies over time. Generally speaking, growth assets are more volatile
                                                                                 Credit risk: if a Trust invests in fixed interest assets, money
     than income assets and are more likely to produce negative returns in
                                                                                 market securities, mortgages, or derivatives there is always a
     the short term. Levels of volatility are likely to increase when there is
                                                                                 risk that a borrower or other counterparty’s creditworthiness
     heightened uncertainty in financial markets.
                                                                                 may decline or they may default and not make the required
                                                                                 payments. The investment strategy incorporates appropriate
     What are the main risks when investing?                                     diversification and/or assessment of creditworthiness in
     The main risk is investment risk – the risk of negative or lower than       order to reduce any significant credit risk for the Trust.
     expected returns on your investment. All investments have investment
                                                                                 Derivatives risk: derivatives are financial contracts whose value
     risk. If market conditions are volatile or you invest for a short time it
                                                                                 depends on the future value of underlying assets such as shares, fixed
     is reasonably foreseeable that your overall returns from the Trust or
                                                                                 interest, commodities, currency or cash. Derivatives may be used
     Trusts may be less than you expect or may be negative for a period
                                                                                 by the Trusts as an alternative to investing in a physical asset or as a
     of time. If returns are less than charges paid and you withdraw your
                                                                                 risk management tool. They provide exposure to an underlying asset
     money at this time, it is possible that you could receive back less         without the need to buy or sell that asset. The potential gains and
     money than you put in.                                                      losses from derivative transactions can be substantial and can increase
     Below are the principal risks that may produce this result. We also         the volatility of a Trust’s returns. To manage this risk we operate a
     describe how we seek to manage these risks (where possible).                Derivative Risk policy (available from us on request) which sets out the
     It is important to note that we cannot manage the relevant risks            guidelines around the use of derivatives in the Trusts. The Specialist
     completely. There are other risks including regulation risk, contractor     Funds in which the Trusts invest may use derivatives more extensively
     risk, product risk, operational risk and tax-related risk. You can read     than the Trusts themselves. As part of our Derivative Risk policy the
     more about these in the prospectus.                                         derivatives policies of the Specialist Funds are reviewed periodically
                                                                                 by us to confirm their appropriateness for the Trusts. It is our policy
                                                                                 not to invest directly in derivatives to gear the Trusts (that is, to obtain
                                                                                 greater exposure to markets than the net asset value of a Trust). If for
                                                                                 any reason (through market movements or cash flows) a Trust becomes
                                                                                 geared through its direct investments, we will realign the Trust as soon
                                                                                 as practicable to remove any gearing.

18
Concentration risk: a Trust’s assets may be concentrated in                                any capital or experiencing undue delays or both. In some cases,
particular securities, types of securities, geographical areas or                          assets may not be so easily converted into cash for various reasons
industries. Where the assets of a Trust are concentrated, there may                        such as a lack of demand for the asset or disruptions in the market,
be increased volatility which will impact on that Trust’s returns. The                     or large withdrawals. This risk may increase where a Trust invests
Trust’s assets may also be concentrated in particular Specialist Funds.                    through Specialist Funds, which may suspend or restrict withdrawals
The Trusts and Specialist Funds may adopt concentration limits to                          or otherwise become illiquid. A Trust itself may also suspend or
manage this risk.                                                                          restrict withdrawals in certain circumstances. We seek to manage
                                                                                           liquidity risk by investing primarily in liquid markets and securities. We
Liquidity risk: a Trust may be limited in its ability to meet your
                                                                                           monitor each Trust’s liquidity levels in order to meet any liabilities and
withdrawal request if it cannot sell or accurately value assets to fund
                                                                                           withdrawals during normal market conditions.
your withdrawal. This may occur because some assets are less liquid
than others. This means it’s harder to sell the assets without losing

Each asset class in which a Trust invests also has specific risks. The specific risks for each asset class that are most likely to affect the value of
your investment in a Trust are:

                                    Income assets

   Cash                             Specific risks: market risk and credit risk
                                    The value of a Trust’s cash assets may not keep pace with inflation (market risk). This could mean that even though your savings are
                                    steadily growing, your money may not have the same buying power as you would expect in ‘today’s money’.
                                    The value of cash assets can also be impacted by the ability of an issuer to pay interest or repay a loan or an issuer’s
                                    creditworthiness may decline (credit risk).

   Fixed interest                   Specific risks: market risk and credit risk
   & mortgages                      The value of a Trust’s fixed interest or mortgage assets may not keep pace with inflation and will be affected by changes to interest
                                    rates (market risk) and the ability of a borrower to repay the loan or pay interest or the ability of a counterparty to meet payments. An
                                    issuer’s creditworthiness can also decline (credit risk).

                                    Growth assets

   Property                         Specific risk: market risk
                                    The value of a Trust’s property assets will be affected by factors such as the demand for property generally, demand for the location,
                                    the quality of the specific properties, the performance of individual property securities, the general economy, market sentiment and
                                    movements in interest rates.

   Shares                           Specific risk: market risk
                                    The value of a Trust’s share assets will be affected by factors such as the performance of individual companies, market sentiment
                                    and the economic performance of the country or sector.

                                    In the case of international shares there is also the market risk of currency movements impacting on returns.

   Alternative                      Specific risks: market risk, liquidity risk and derivatives risk
                                    Alternative investments are complex and less liquid than traditional assets, particularly in times of significant market volatility. They
   Investments                      can also involve extensive use of derivatives.

Refer to pages 8-9 for the asset mix of each Trust.

Choosing your investment option                                                            What happens if a Trust is insolvent
                                                                                           or wound up?
When you choose a Trust, you should consider how you feel about
risk and think about your investment timeframe.                                            If, for any reason, we or a Trust become insolvent, you won’t be liable
                                                                                           to pay any money to anyone. If we or a Trust are liquidated or wound
                                                                                           up, any creditor’s claims will rank ahead of your claims. Your claims
                                                                                           will rank equally with all other investors in the relevant Trust.

                                                                                                                                                                                19
Can the investment be altered?

     Yes, you can make various changes to your                                    Making changes to the trust deed
     investment in a Trust at any time. There are also some                       Together with the Trustee, we may amend the provisions of the trust
     circumstances where we may make changes to your                              deed (including any establishment deed). Any such changes can be
                                                                                  made under certain circumstances outlined in the trust deed. Changes
     investment. These are outlined below.
                                                                                  may include, without limitation, a Trust’s investment policy or limits on
                                                                                  any fees.

                                                                                  Together with the Trustee, we may also set guidelines regarding
     Changes you can make
                                                                                  the investment management of the Trusts, including benchmark
     -	you can change your regular investments at any time as long as            asset allocations and ranges. These may be changed without us
        you pay the minimum annual investment.                                    notifying you.

     -   you can pay in extra lump sums of $500 or more at any time.
                                                                                  Changes for tax purposes
     -	you can withdraw or transfer all or part of your investment
                                                                                  While each Trust is a PIE, we may adjust any distribution entitlement
        (see “How do I cash in my investment?”).
                                                                                  or your unit holding (including on withdrawals, transfers or switches)
     -	you can switch your investment between Trusts by following the            to reflect any PIE tax liability arising with respect to your units in
        process below.                                                            a Trust. We may take all steps necessary to ensure that a Trust
                                                                                  is eligible, or continues to be eligible, for PIE status or otherwise
     -	if you’re a regular investor you can stop your investments for a
                                                                                  complies with the requirements of tax legislation relating to PIEs
        time, as long as you maintain the minimum holding.
                                                                                  (including rejecting applications, switches and transfers, and
     -	you can change any details relating to your account. Just call            withdrawing your units, at our discretion).
        0800 738 641 and we’ll let you know what to do, depending on
        what you need to change.                                                  Changes to specialist managers
     -   you can also change your PIR just by letting us know.                    Specialist investment managers and Administration Managers will be
                                                                                  regularly monitored and reviewed. These managers may be removed
     Switching trusts                                                             or added without us notifying you. This means the identity and number
                                                                                  of specialist investment managers or Administration Managers
     You can switch your investment between Trusts by completing a switch
                                                                                  for a Trust may vary from time to time. You can get details of the
     request. We’ll then sell your units in the Trust you’re switching from and
                                                                                  specialist investment managers by calling us on 0800 738 641 or by
     use that money to buy units in the Trust you’re switching into.
                                                                                  visiting www.westpac.co.nz and searching for the document entitled
     The minimum amount of any switch is usually 500 units or $500                “Westpac Active Series Investment Managers”.
     (whichever is less). You also need to maintain a minimum balance of
     $5,000 or 5,000 units in each Trust (whichever is less).                     Other changes
     You can get a switch request form from any Westpac branch,                   When we use the word “current” or “currently”, in relation to
     a Westpac Financial Adviser or by calling 0800 738 641.                      legislation, policy, activity or practice we refer to these as at the
                                                                                  date of this Investment Statement. Any legislation, policy, activity
     There is no charge for switching, but “spreads” may apply to unit
                                                                                  or practice may be reviewed or changed without us notifying you.
     prices (see “What are the charges?”). A switch is a disposal of units
     for tax purposes. See “General information about taxes” for the tax          Your rights may also be varied by changes to relevant law, accounting
     related consequences of a switch.                                            and other regulatory requirements.

     Switches are subject to our ability to suspend or delay withdrawals
     as set out in “What returns will I get?”.

     Our ability to make changes
     With the consent of the Trustee, we can change any fees without
     notice. If we make a change, you (or a Trust as the case may be)
     will need to pay the new fees.

     We may also alter the minimum investment and withdrawal amounts
     and any notice periods. We can also close or wind up a Trust.

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