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 Flexible Income Plan (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 and the Westpac Dynamic Growth Fund – Nil
Contribution Fee
Fund
Westpac Dynamic Growth Fund & Westpac Dynamic Growth Fund
– Nil Contribution Fee (NCF)
APIR Code
WFS0115AU
WFS0356AU (NCF)
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 – 20
5
0 – 10
Australian Fixed Interest
10
0 – 20
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 Balanced Growth Fund and the Westpac Balanced Growth Fund – Nil
Contribution Fee
Fund
Westpac Balanced Growth Fund & Westpac Balanced Growth Fund
– Nil Contribution Fee (NCF)
APIR Code
WFS0113AU
WFS0354AU (NCF)
Previous
Neutral
Position
Asset allocation neutral
position and ranges %
Previous
Range
New
Neutral
Position
New
Range
Australian Shares
33
23 – 43
39
28 – 48
International Shares
22
12 – 32
14
12 – 32
Property Securities
10
0 – 20
5
0 – 10
Australian Fixed Interest
20
10 – 30
25
5 – 32
International Fixed Interest
10
0 – 20
5
0 – 20
Cash
5
0 – 20
2
0 – 10
Alternatives
0
0
10
0 – 20
Westpac Moderate Growth Fund and the Westpac Moderate Growth Fund – Nil
Contribution Fee
Fund
Westpac Moderate Growth Fund & Westpac Moderate Growth Fund
– Nil Contribution Fee (NCF)
APIR Code
WFS0117AU
WFS0359AU (NCF)
Previous
Neutral
Position
Asset allocation neutral
position and ranges %
Previous
Range
New
Neutral
Position
New
Range
Australian Shares
17
7 – 27
21
5 – 25
International Shares
10
0 – 20
5
0 – 18
Property Securities
8
0 – 20
3
0 – 10
Australian Fixed Interest
30
20 – 40
48
20 – 55
International Fixed Interest
10
0 – 20
10
5 – 35
Cash
25
15 – 35
5
0 – 40
Alternatives
0
0
8
0 – 20
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Westpac Conservative Growth Fund and the Westpac Conservative Growth Fund – Nil
Contribution Fee
Fund
Westpac Conservative Growth Fund & Westpac Conservative Growth
Fund
– Nil Contribution Fee (NCF)
APIR Code
WFS0114AU
WFS0355AU (NCF)
Previous
Neutral
Position
Asset allocation neutral
position and ranges %
Previous
Range
New
Neutral
Position
New
Range
Australian Shares
10
5 – 15
11
5 – 15
International Shares
5
0 – 10
3
0 – 10
Property Securities
5
0 – 20
2
0 – 20
Australian Fixed Interest
25
10 – 30
33
20 – 50
International Fixed Interest
10
0 – 20
10
0 – 20
Cash
45
40 – 60
33
30 – 50
Alternatives
0
0
8
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 Product Disclosure Statement (PDS) 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 Securities Administration Limited ABN 77 000 049 472 AFSL 233731 is the trustee of and issuer of interests in the Westpac Master Trust
- Superannuation Division (incorporating the Westpac Flexible Income Plan) ABN 81 236 903 448.
An Annual Report, PDS, 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 PDS 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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