Important Information about your product
Strategic Asset Allocation (SAA) and asset sector range changes
to certain Investment Options
Dated: 1 September 2012
As part of the regular management of the Westpac Diversified Investment Options (Investment Options) in the
Westpac Insurance Bond (the ‘Plan’), there have been changes made to the SAA of some of the Investment
Options and the addition of Alternatives as an asset class. The asset allocation limits are being changed with the
aim of improving investment outcomes for investors, and the Alternatives’ asset class is being added with the aim of
improving risk diversity and returns at the Investment Option level.
The SAA and asset sector range changes are outlined below:
Westpac Dynamic Growth Fund
Fund
Westpac Dynamic Growth Fund
APIR Code
APC0213AU
Previous
Neutral
Position
Asset allocation neutral
position and ranges %
Previous
Range
New
Neutral
Position
New
Range
Australian Shares
40
25 – 55
45
35 – 55
International Shares
30
15 – 45
21
17 – 37
Property Securities
10
0 – 25
5
0 – 10
Australian Fixed Interest
10
0 – 25
13
0 – 20
International Fixed Interest
5
0 – 20
4
0 – 20
Cash
5
0 – 40
2
0 – 10
Alternatives
0
0
10
0 – 20
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Westpac Growth Assets Fund
Fund
Westpac Growth Assets Fund
APIR Code
APC0212AU
Previou
s
Neutral
Position
Asset allocation neutral
position and ranges %
Previous
Range
New
Neutral
Position
New
Range
Australian Shares
35
30 – 40
39
28 – 48
International Shares
15
5 – 20
14
12 – 32
Property Securities
10
0 – 20
5
0 – 10
Australian Fixed Interest
25
15 – 45
25
5 – 32
International Fixed Interest
0
0 – 10
5
0 – 20
Cash
15
5 – 30
2
0 – 10
Alternatives
0
0
10
0 – 20
Alternative investments refer to investments that do not fall within the main asset classes. Alternative investments
can be based on publicly traded securities like shares and bonds, commodities and derivatives including through
hedge funds, absolute return funds and commodity investment funds. Some alternative investments are based on
private securities; these include venture capital and private equity. Investment strategies that may be found in some
alternative investments include the use of gearing, short selling (selling something you do not own with a view to
buying it back later at a lower price) and more extensive use of derivatives.
Like shares, property, fixed interest and cash, alternative investments are subject to certain risks that may include
periods of large market falls, high volatility or reduced liquidity (i.e. the ability to sell investments immediately). Use
of gearing in alternative investments may magnify both gains and losses and the variability of returns. Other risks
associated with alternative investment strategies may include a heavy reliance on key individuals and being based
in a country or countries where the level of regulatory supervision is lower than in Australia.
Although we do not charge a performance fee directly, for Plans with exposure to alternative investments, certain
underlying hedge fund managers are entitled to recover performance fees from the underlying alternative
investments. Typically, performance fees allow the investment manager to share in the investment return achieved
above that of a relevant benchmark.
Where the underlying managers are entitled to performance fees, these fees are not deducted from the Plan directly
and do not form part of the issuer fee set out in the disclosure document for the Plan. Underlying performance fees
impact investors by reducing the returns generated by the Plan’s underlying investments and therefore the value of
your investment in the Plan. These arrangements vary between investment managers and may change, from time
to time.
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For more information
Talk to your financial planner or contact Customer Relations on 131 817 between 8.00am – 6.30pm (Monday to
Friday, Sydney time)
Current as at 1 September 2012. The information in this flyer is factual only and does not constitute financial product advice. Before acting on this
information you should seek financial and taxation advice to determine its appropriateness to your objectives, financial situation and needs. This flyer
provides an overview or summary only and it should not be considered a comprehensive statement on any matter or relied upon as such.
Westpac Life Insurance Services Limited ABN 31 003 149 157, is the issuer of the Westpac Insurance Bond.
An Information Brochure, fund fact sheet and/or Financial Services Guide (as applicable) is available for the Plan and can be obtained by calling
Customer Relations on 131 817. You should obtain and consider the relevant disclosure document before deciding whether to acquire, continue to
hold or dispose of interests in the Plan.
An investment in the aforementioned Westpac Diversified Investment Options is not an investment in, deposit with or any other liability of Westpac
Banking Corporation ABN 33 007 457 141 (the Bank) or any other company in the Westpac Group. It is subject to investment risk, including possible
delays in repayment of withdrawal proceeds and loss of income and principal invested. Neither the Bank nor any other company in the Westpac Group
has issued, stands behind or otherwise guarantees the capital value or investment performance of the aforementioned Investment Options.
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