SIL Mutual SchemeA registered superannuation scheme established under the SIL Mutual Fund

Investment Statement 31 March 2016

ii

The SIL Employer Scheme invests in underlying funds

Choosing an investmentWhen deciding whether to invest, consider carefully the answers to the following questions that can be found on the pages noted below:

What sort of investment is this? 4

Who is involved in providing it for me? 5

How much do I pay? 6

What are the charges? 7

What returns will I get? 9

What are my risks? 11

Can the investment be altered? 14

How do I cash in my investment? 15

Who do I contact with inquiries about my investment? 33

Is there anyone to whom I can complain if I have problems with the investment? 33

What other information can I obtain about this investment? 17

In addition to the information in this document, important information can be found in the current registered prospectus for the investment. You are entitled to a copy of that prospectus on request.

The Financial Markets Authority regulates conduct in financial marketsThe Financial Markets Authority regulates conduct in New Zealand’s financial markets. The Financial Markets Authority’s main objective is to promote and facilitate the development of fair, efficient, and transparent financial markets.

For more information about investing, go to http://www.fma.govt.nz.

Financial advisers can help you make investment decisionsUsing a financial adviser cannot prevent you from losing money, but it should be able to help you make better investment decisions.

Financial advisers are regulated by the Financial Markets Authority to varying levels, depending on the type of adviser and the nature of the services they provide. Some financial advisers are only allowed to provide advice on a limited range of products.

When seeking or receiving financial advice, you should check:

• the type of adviser you are dealing with

• the services the adviser can provide you with

• the products the adviser can advise you on.

A financial adviser who provides you with personalised financial adviser services may be required to give you a disclosure statement covering these and other matters. You should ask your adviser about how he or she is paid and any conflicts of interest he or she may have.

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. So if there is a dispute over an investment, you can ask someone independent to resolve it.

Most financial advisers, or the financial services provider they work for, must also be registered on the financial service providers register. You can search for information about registered financial service providers at http://www.fspr.govt.nz.

You can also complain to the Financial Markets Authority if you have concerns about the behaviour of a financial adviser.

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.

This document is an investment statement for the SIL Mutual Fund Personal Lump Sum Scheme, for the purposes of the Securities Act 1978. The information in this investment statement was correct as at 31 March 2016, the date on which this investment statement was issued.

1

Introducing the SIL Mutual FundThe SIL Mutual Fund (SIL) is a superannuation trust that was established in 1959 as a convenient way to help investors save for their retirement.

SIL offers two schemes to investors, the SIL Mutual Fund Personal Lump Sum Scheme (the SIL Mutual Scheme) and the SIL Mutual Fund Employer Lump Sum Scheme (the SIL Employer Scheme). This investment statement offers you the opportunity to invest in the SIL Mutual Scheme, one of New Zealand’s longest running superannuation schemes.

The SIL Mutual Scheme is suitable for investors wishing to save for their retirement, as well as for those already in retirement. To help you maintain your savings, access to your funds is generally restricted until you reach 60 years of age.

The TrusteeSuperannuation Investments Limited (the Trustee) is the Trustee and issuer of SIL. The Trustee is responsible for supervising the manager so that your investment is managed and administered in accordance with SIL’s Trust Deed and all applicable legal requirements. For more information on the Trustee, see Superannuation Investments Limited is the Trustee and issuer on page 5.

The managerThe SIL Mutual Scheme is managed by ANZ New Zealand Investments Limited (ANZ Investments) (the Manager), a subsidiary of ANZ Bank New Zealand Limited (ANZ).

The Trustee reappointed ANZ Investments under the Management Agreement on 31 March 2016 following a review of the previous management agreement. The terms of ANZ Investments’ reappointment are set out in the Management Agreement.

The FundsThe SIL Mutual Scheme offers you the opportunity to invest into five funds (the Funds). The Funds include one multi-asset-class Fund, and four single-asset-class Funds.

Other than the SIL Cash Plus Fund, the four single-asset-class Funds predominantly invest in:

• a single-asset class

• many organisations and industries. The SIL International Share Fund also invests in many countries.

The Trustee and ANZ Investments recommend you seek personalised advice from an authorised financial adviser to see whether investing in one or more of our single-asset-class Funds is right for you.

The SIL Balanced Plus Fund is the only multi-asset-class Fund. It invests in:

• up to five asset classes

• many organisations, industries, and countries.

The Funds do not distribute income. Any income the Funds receive from investments is reinvested. For more information, see What returns will I get? on page 9.

Key risks of the FundsLike any investment, an investment in the SIL Mutual Scheme involves taking some risk. Your investment in the SIL Mutual Scheme might not do as well as expected and you may not receive back the full amount you contributed. For more information, see What are my risks? on pages 11 to 13.

The level of risk will vary depending on the Fund or Funds your savings are invested in. You need to decide how these risks apply to your personal circumstances and if they are consistent with your investment objectives and investment timeframe.

The Trustee and ANZ Investments recommend that you talk to an authorised financial adviser about the investment options available to you.

The SIL Mutual Fund (SIL) will be closed to new members on 16 September 2016The Financial Markets Conduct Act (FMCA) is the law that will govern how financial products are created, promoted and sold. It also sets out the responsibilities of those who offer, deal in and trade financial products.

The FMCA will have significant implications for SIL.

The Trustee has determined that SIL will be registered as a restricted scheme following its transition into the FMCA regime. As a restricted scheme SIL will be closed to new members and will focus solely on meeting the needs of existing members.

SIL will be closed to new members on 16 September 2016. Existing members will still be able to make further contributions after this date.

2

SIL Balanced Plus Fund Asset Class Benchmark Ranges

Shares and property securities

Cash assets and fixed interest assets

Alternative assets

65%

35%

0%

45-85%

15-55%

0-15%

The investment objective is to generate capital growth and mitigate risk by diversifying across different asset categories and markets.

SIL New Zealand Fixed Interest Fund Asset Class Benchmark Ranges

Fixed interest assets

Cash assets

100%

0%

90-100%

0-10%

The investment objective is to generate returns by investing primarily in government bonds, State Owned Enterprises bonds, corporate bonds, debentures, short-term money market and other debt securities. The SIL New Zealand Fixed Interest Fund may also invest in international debt securities issued in New Zealand by international companies, international fixed interest securities (fully hedged back to the New Zealand dollar) and cash.

SIL New Zealand Share Fund Asset Class Benchmark Ranges

Shares

Cash assets

100%

0%

90-100%

0-10%

The investment objective is to generate capital growth and provide competitive returns ahead of inflation by investing primarily, directly or indirectly, in shares listed (or in the process of being listed) on the New Zealand Stock Exchange characterised by proven management, a strong market position, prudent financial practices and strong financial performance (balance sheet and cash flow).

Key features of the FundsAn investment in the SIL Mutual Scheme helps you to save for your retirement. The SIL Mutual Scheme also offers you the flexibility to:

• make contributions at any time

• contribute on a regular basis or in a single lump sum

• switch between any of the Funds

• suspend or resume regular contributions

• make lump sum or regular withdrawals when you’re eligible.

There are minimum contribution amounts and restrictions on when you can suspend your contributions. See How much do I pay? on page 6 for more information.

Generally, your investment is locked in until you reach age 60. At this time your options are to:

• keep your investment in the SIL Mutual Scheme

• withdraw your investment in part or in full.

In some circumstances, you may be able to withdraw your investment before reaching age 60. For more information see How do I cash in my investment? on pages 15 and 16.

The Funds’ asset class mixThe table below shows the investment objective, benchmark asset class mix and permitted ranges for each Fund.

The benchmark asset class mix is used as a starting point for how much a Fund invests in each asset class. The actual asset class mix will vary from the benchmark asset class mix. ANZ Investments might vary the asset class mix to manage risk, increase potential investment performance, or manage cash flow. The ‘ranges’ state how far from the benchmark asset class mix the actual asset class mix can be. The Funds gain exposure to the asset classes by investing in underlying funds. See The SIL Mutual Scheme invests in underlying funds on page 4 for more information. Because the underlying funds also hold cash assets, the Funds may, in certain circumstances, have cash assets that exceed these ranges.

ANZ Investments and the Trustee can agree to change the objectives and policies of each Fund (including the benchmark asset class mix and ranges) from time to time. You can find out the actual asset class allocations of each Fund, the current benchmarks and the current ranges, at any time, by calling the ANZ Investments Customer Services team at the telephone number shown on page 33.

3

SIL International Share Fund Asset Class Benchmark Ranges

Shares

Cash assets

100%

0%

90-100%

0-10%

The investment objective is to generate capital growth and returns ahead of inflation by investing directly or indirectly in securities issued by entities listed on stock exchanges around the world characterised by experienced and prudent management and strong cash flows and prudent debt levels. The SIL International Share Fund provides exposure to securities listed on major American, UK, European, Japanese and emerging country sharemarkets.

SIL Cash Plus Fund Asset Class Benchmark Ranges

Cash assets 100% 100%

The investment objective is to protect the value of investments and provide competitive returns by investing directly or indirectly in a range of cash, short-term debt securities, term deposits and floating rate notes.

What are the fees and charges?Five types of fees or charges might apply to your investment:

• a management fee charged to each Fund per year

• a Trustee fee, also charged to each Fund per year

• expenses incurred on behalf of the Funds by ANZ Investments and the Trustee (which can include fees charged by ANZ Investments’ related companies)

• expenses of underlying funds (that is, other funds in which the Funds invest)

• exit or switching fees (although neither of these fees are currently charged).

These charges will affect your returns. For more information, see What are the charges? on page 7.

In addition, your authorised financial adviser may charge you an entry fee of up to 5% on any contributions you make into the SIL Mutual Scheme. Speak to your authorised financial adviser to find out whether an entry fee will apply to you, and see How much do I pay? on page 6 for more information about entry fees.

Keep informed with our online informationYou can find up-to-date information about the Funds at silfunds.co.nz.

Tell us your choice Once you’ve made your choice between one or more of the Funds, let ANZ Investments know your selection by filling out the relevant application form at the back of this investment statement.

ANZ Investments and the Trustee recommend that you get advice from an authorised financial adviser about which Fund or combination of Funds is right for you.

You can change your choice at any time by completing a Switch Request Form at the back of this investment statement or at silfunds.co.nz. For more information, see Can the investment be altered? on page 14.

GlossaryThe glossary on pages 18 and 19 of this investment statement explains the meaning of some of the legal and financial terms used in this investment statement. The current Prospectus for SIL includes a more complete glossary of legal and financial terms. See What other information can I obtain about this investment? on page 17 to find out how to get a copy of the Prospectus.

4

What sort of investment is this?

SIL is a superannuation trust that was established in 1959. There are two registered superannuation schemes established under SIL – the SIL Mutual Scheme and the SIL Employer Scheme.

This investment statement offers you the opportunity to invest in the SIL Mutual Scheme and only applies to investors in that scheme.

The SIL Mutual Scheme offers you the opportunity to invest into a suite of five Funds. The Funds include one multi-asset-class Fund, and four single-asset-class Funds.

The SIL Mutual Scheme is a ‘defined contribution fund’, which means the value of your investment will be determined by:

• the value of your contributions

• any contributions made on behalf of, or in respect of, you

• the investment performance of the Fund or Funds you have invested in, and

• the tax, fees and expenses you pay or which are deducted from the Fund or Funds you have invested in.

Your interest in the SIL Mutual Scheme will be represented by ‘units’You receive units each time you invest into the SIL Mutual Scheme, or money is paid into the SIL Mutual Scheme on your behalf. The price of each unit you receive depends on the value of the Fund at the time you invest. The number of units you have, when multiplied by the unit price, represents the value of your investment in the SIL Mutual Scheme, not including unpaid tax or refunds.

The price of each unit is calculated by taking the market value of each relevant Fund’s investments, adding any accrued income and deducting all liabilities. This amount is then divided by the total number of units on issue in the applicable Fund to give the unit price. The unit price does not include Portfolio Investment Entity (PIE) tax.

The unit prices for the Funds are available online at silfunds.co.nz. Alternatively, they may be obtained by calling your authorised financial adviser, or contacting the ANZ Investments Customer Services team at the address shown on page 33.

The SIL Mutual Scheme invests in underlying fundsThe Funds primarily gain exposure to each of the asset classes by investing in other managed funds (called underlying funds). The underlying funds include:

• funds that are managed by ANZ Investments, and

• funds that are not managed by ANZ Investments.

These underlying funds may:

• be managed differently to how the SIL Mutual Scheme is managed by ANZ Investments

• borrow, enter into derivative contracts, or other transactions, or

• hold additional cash to manage risks, increase potential returns, or manage cash flow requirements.

As the current investment manager of the SIL Mutual Scheme, ANZ Investments carefully selects and monitors any underlying funds in which the SIL Mutual Scheme invests. You can find out more information about underlying funds, and the investment managers for those underlying funds, in the Prospectus.

ANZ Investments and the Trustee can agree to change any (or all) of the underlying funds into which the Funds invest. ANZ Investments can also change the investment managers for the underlying funds. In either case, notice of the change doesn’t need to be given to you. If any changes are made, ANZ Investments will still ensure that each Fund is invested in accordance with the benchmark asset class mix and ranges for the Fund (as amended from time to time).

SIL will be closed to new members on 16 September 2016The Trustee has determined that SIL will be registered as a restricted scheme following its transition into the FMCA regime. As a restricted scheme SIL will be closed to new members and will focus solely on meeting the needs of existing members.

SIL will be closed to new members on 16 September 2016. Existing members will still be able to make further contributions after this date.

5

Who is involved in providing it for me?

The full name of the SIL Mutual Scheme is the SIL Mutual Fund Personal Lump Sum Scheme. The SIL Mutual Scheme is a registered superannuation scheme established under the SIL Mutual Fund, a superannuation trust that was established in 1959. The SIL Mutual Scheme was established as a registered superannuation scheme on 18 May 1959.

Superannuation Investments Limited is the Trustee and issuerSuperannuation Investments Limited is the Trustee of the SIL Mutual Scheme. The Trustee is also the issuer of the SIL Mutual Scheme under the Securities Act 1978.

Under SIL’s Trust Deed, the Trustee is required to delegate the day-to-day management and administration of the SIL Mutual Scheme to a management company. The Trustee has currently delegated day-to-day administration and management of the SIL Mutual Scheme to ANZ Investments.

The Trustee is responsible for supervising ANZ Investments’ performance of its duties as manager so that your investment is managed and administered in accordance with SIL’s Trust Deed and all applicable legal requirements.

The directors of the Trustee are:

• Andrew Mark Cross (Chairman) of Auckland

• The Right Honourable Sir William Francis Birch of Drury

• Paul David Fyfe of Lower Hutt

• Dr Edward Schuck of Auckland

• Glennis Kay Webber of Auckland.

The Trustee and each of the Trustee’s directors may be contacted at the address shown on page 33.

The directors of the Trustee and the Trustee’s address may change from time to time. Up-to-date information is available online at business.govt.nz/companies or by calling the ANZ Investments Customer Services team at the telephone number shown on page 33.

Further information about the directors of the Trustee is available in the Prospectus.

ANZ New Zealand Investments Limited is the managerANZ Investments is responsible for selecting and managing the SIL Mutual Scheme’s assets. ANZ Investments may appoint underlying managers to manage assets of the underlying funds in which the Funds invest. ANZ Investments can change these underlying managers from time to time without letting you know.

ANZ Investments is also responsible for the administration and marketing of the SIL Mutual Scheme.

For more information on ANZ Investments, see silfunds.co.nz.

ANZ Investments and its directors are the promoters of the SIL Mutual SchemeANZ Investments and its directors are promoters of the SIL Mutual Scheme. The directors of ANZ Investments are:

• Ronald Bruce Macintyre (Chairman) of Wellington

• John Robert Body of Auckland

• Stewart Creswell Brentnall of Warrawee, NSW, Australia

• Penelope Jane Ford of Auckland

• Gavin Murray Pearce of Beecroft, NSW, Australia.

ANZ Investments and each of ANZ Investments’ directors may be contacted at the address shown on page 33.

The directors and ANZ Investments’ address may change from time to time. You can find the current list of directors and ANZ Investments’ current address at business.govt.nz/companies or by calling the ANZ Investments Customer Services team at the telephone number shown on page 33.

Further information about the directors of ANZ Investments is available in the Prospectus.

Your investment is not guaranteedNone of the Trustee, ANZ Investments, ANZ Bank New Zealand Limited, Australia and New Zealand Banking Group Limited, their respective directors, any member of their respective groups of companies or any other person stands behind or guarantees the capital value or performance of any investments in the SIL Mutual Scheme.

From time to time the Funds within the SIL Mutual Scheme may invest in deposits with ANZ. However, investments in the SIL Mutual Scheme are not deposits in ANZ Bank New Zealand Limited or Australia and New Zealand Banking Group Limited (together ‘ANZ Group’), nor are they liabilities of ANZ Group. ANZ Group does not stand behind or guarantee ANZ Investments. Investments are subject to investment risk, including possible delays in repayment, and loss of income and principal invested. ANZ Group will not be liable to you for the capital value or performance of your investment.

6

How much do I pay?

You can make either:

• lump sum contributions, or

• regular contributions.

Your authorised financial adviser may charge you an entry fee on any contributions to the SIL Mutual Scheme. The entry fee will be deducted from your contribution and paid to your authorised financial adviser. See Entry fees may be charged by your financial adviser on page 8 or contact your authorised financial adviser for more information on entry fees and whether they are applicable to you.

Lump sum contributions You can make lump sum contributions to the SIL Mutual Scheme at any time by completing the Additional Lump Sum Contribution Form at the back of this investment statement or at silfunds.co.nz. Lump sum contributions can be for any amount. These contributions can be paid by cheque or direct credit.

Regular contributionsYou can also make regular contributions by completing the Direct Debit Form at the back of this investment statement. Regular contributions can be for any amount and can be:

• made weekly, fortnightly, monthly, quarterly, or annually by direct debit from your nominated bank account, as agreed in your application form, and

• altered, by contacting your authorised financial adviser or the ANZ Investments Customer Services team at the address shown on page 33.

You can only stop or reduce your regular contributions if you have been a member of the SIL Mutual Scheme for a year, and have paid one year’s worth of regular contributions. If you do this, you can later decide to re-start making regular contributions, as long as you contribute any required minimum amount which then applies.

Under the Trust Deed, the Trustee can forfeit your investment in the SIL Mutual Scheme if you fail to make your agreed regular contributions and certain criteria are not met. However, the Trustee has never exercised this power and, as at the date of this investment statement, does not intend to do so.

How to make contributionsYou can make contributions by:

• completing the Direct Debit Form at the back of this investment statement

• making a direct credit through internet banking, or

• sending ANZ Investments a cheque, made payable to ‘SIL Mutual Fund’.

Information you need to include with any lump sum contributionIf you make lump sum contributions by cheque or direct credit, please include the following information to help ANZ Investments process your payment:

• your surname

• your date of birth in the following format – DDMMYYYY

• one of either:

– your IRD number, or

– your investor number.

If you don’t provide ANZ Investments with the correct details, ANZ Investments will be unable to credit your account with the amount you pay.

You will need to complete the relevant forms at the back of this investment statement for initial investments, additional lump sum investments and to set up regular contributions. You can also find these forms on our website silfunds.co.nz. Once you have completed the appropriate forms, please send them to the ANZ Investments Customer Services team at the address shown on page 33.

Transfers from other registered superannuation schemesYou may also be able to transfer amounts from another registered superannuation scheme to the SIL Mutual Scheme. The Trustee can impose restrictions in relation to early withdrawal of these contributions, if those restrictions existed under that other scheme.

If you are an employee of a State Sector Employer who participates in the SIL Mutual Scheme under a Participation Agreement, the Trustee must accept a transfer of amounts on your behalf from another superannuation scheme, unless the Trustee reasonably considers that doing so would be unlawful or in breach of trust.

Entry fees may be charged on transfers from other registered superannuation schemes (and are deducted from the amount transferred and paid to your authorised financial adviser). See Entry fees may be charged by your financial adviser on page 8 for more information or contact your authorised financial adviser for more information on entry fees and whether they are applicable to you.

7

What are the charges?

Five types of fees or charges might apply to your investment:

• a management fee charged to each Fund per year

• a Trustee fee, also charged to each Fund per year

• expenses incurred on behalf of the Funds by ANZ Investments and the Trustee (which can include fees charged by ANZ Investments’ related companies)

• expenses of underlying funds (that is, other funds in which the Funds invest)

• exit or switching fees (although neither of these fees are currently charged).

In addition, your authorised financial adviser may charge you an entry fee of up to 5% on any contributions you make into the SIL Mutual Scheme. Speak to your authorised financial adviser to find out whether an entry fee will apply to you, and see Entry fees may be charged by your financial adviser on page 8 for more information about entry fees.

Management fees and Trustee fees, together with the expenses of managing and administering the SIL Mutual Scheme, are paid by each Fund within the SIL Mutual Scheme and are reflected in the unit price of your investment. Therefore, these fees and expenses will affect the return on your investment.

All of the fees and charges (except for entry fees charged by your financial adviser) are included in each Fund’s total expense ratio (TER). The TER:

• is the ratio of a Fund’s total operating costs to its average net assets across the year, and

• for the current financial year or any future period is not guaranteed.

The table below shows the TER for each Fund of the SIL Mutual Scheme for the last three completed financial years.

FundTER

(Year ended 31 March 2015)

TER (Year ended

31 March 2014)

TER (Year ended

31 March 2013)

SIL Balanced Plus Fund

1.58% 1.61% 1.66%

SIL New Zealand Fixed Interest Fund

1.34% 1.34% 1.35%

SIL New Zealand Share Fund

1.66% 1.83% 1.83%

SIL International Share Fund

1.66% 1.77% 1.78%

SIL Cash Plus

Fund

0.90% 1.04% 1.04%

Management feeANZ Investments charges a management fee to cover investment management, administration and marketing functions. The fee is different for each Fund, as some Funds need more management than others. The fee is calculated daily as a percentage of the net asset value of each Fund at the valuation day. The Fee is paid monthly in arrears. This fee is subject to change from time to time by agreement between ANZ Investments and the Trustee. Please see the table below which lists the current management fee for each Fund.

Out of its management fee, ANZ Investments may pay commission to distributors of the SIL Mutual Scheme and pays for the services of underlying managers.

Fund Management fee per year

SIL Balanced Plus Fund 1.25%

SIL New Zealand Fixed Interest Fund 1.06%

SIL New Zealand Share Fund 1.30%

SIL International Share Fund 1.30%

SIL Cash Plus Fund 0.70%

Trustee feesThe Trustee’s directors charge a fee to cover part of their remuneration for acting as directors of the Trustee. Their fees are not capped and the amount charged to the scheme may change from year to year depending on the level of remuneration paid to the directors and changes in the size of the SIL Mutual Scheme. GST will be added to these amounts if applicable.

Expenses of the Manager and the TrusteeANZ Investments can recover expenses incurred on behalf of the SIL Mutual Scheme. These may include audit, registry, custodian, postage, and legal fees. Related companies of ANZ Investments may provide services to the SIL Mutual Scheme or manage assets for the SIL Mutual Scheme. For example, Funds may invest into deposits or enter forward foreign exchange contracts with ANZ. When this happens, any charges and expenses the SIL Mutual Scheme pays are determined on standard commercial terms, and can be recovered by ANZ Investments as expenses incurred on behalf of the SIL Mutual Scheme.

The Trustee can recover expenses incurred by it or the Trustee’s directors on behalf of the SIL Mutual Scheme. These may include travel, food, accommodation, company secretarial services to the Trustee, insurance and legal fees.

8

Entry fees may be charged by your financial adviserYour authorised financial adviser may charge you an entry fee of up to 5% on any contributions you make into the SIL Mutual Scheme. These fees:

• are discretionary and neither ANZ Investments nor the Trustee requires them to be paid, and

• if charged, are deducted from any contribution you make and are paid by ANZ Investments to your authorised financial adviser. For example, if you:

– contribute a lump sum of $10,000, your authorised financial adviser can charge up to $500. This means your investment will be $9,500 and ANZ Investments will pay your adviser $500

– make regular contributions of $1,000 each month, your authorised financial adviser can charge up to $50 per month. This means your annual investments will be $11,400 and ANZ Investments will have paid your adviser $600 for that year

– transfer $60,000 from another registered superannuation scheme, your authorised financial adviser can charge up to $3,000. This means your transferred investment will be $57,000 and ANZ Investments will have paid your adviser $3,000.

You should talk with your authorised financial adviser about whether entry fees are applicable to you. Please see the table below which lists the current maximum entry fee for each Fund.

Fund Entry fee

SIL Balanced Plus Fund up to 5.0%

SIL New Zealand Fixed Interest Fund up to 2.5%

SIL New Zealand Share Fund up to 5.0%

SIL International Share Fund up to 5.0%

SIL Cash Plus Fund up to 1.0%

Other information about feesFees and expenses may change in the future if the Trustee decides to change them. Any change in the management fee paid to ANZ Investments or in the expenses that can be recovered by ANZ Investments must also be agreed to by ANZ Investments.

Changes in underlying fund fees may also be made by the trustee and/or manager of the relevant underlying fund, depending on the terms of the governing documents of those underlying funds.

You can find out the current level of fees and expenses at any time by contacting the ANZ Investments Customer Services team at the address shown on page 33.

Neither ANZ Investments, nor the Trustee’s expenses are capped or limited and will change from year to year depending on the level of expenses incurred during the year. GST will be added to these amounts if applicable.

It’s likely that the Trustee’s expenses for the years ended 31 March 2016 and 31 March 2017 will be higher than previous years because of:

• the legal fees and other costs associated with the process of reviewing and reappointing an investment, administration and marketing manager, and negotiating the Management Agreement

• the legal fees and other costs involved to analyse the implications of the Financial Markets Conduct Act 2013 (FMCA) on the Trustee and the SIL Mutual Scheme, and

• any changes required for the Trustee or SIL Mutual Scheme to comply with the FMCA.

For more information about the FMCA, see The SIL Mutual Fund (SIL) will be closed to new members on 16 September 2016 on page 1.

Expenses of underlying fundsThe Funds invest by investing in underlying funds. Underlying funds may be managed by ANZ Investments, or ANZ Investments may appoint an underlying investment manager to manage the assets of the underlying fund. Where a Fund invests in an underlying fund managed by ANZ Investments, ANZ Investments doesn’t charge a separate management fee for that underlying fund. The Fund will pay only the management fee set out in the table on page 7. Where a Fund invests in an underlying fund managed by an underlying investment manager, any management fee charged by the underlying investment manager is paid by ANZ Investments from its management fee. This means the Fund will pay only the management fee set out in the table on page 7.

However, the Funds may have to pay expenses when they invest in underlying funds. ANZ Investments can recover expenses in its role as manager of the underlying funds, and administration or other charges may be payable to ANZ Investments in respect of its roles in relation to the underlying funds.

Expenses recoverable by ANZ Investments in its role as manager of any underlying funds, and administration or other charges payable to ANZ Investments in respect of its roles in relation to such underlying funds, are paid by the relevant underlying fund and are reflected in the unit price of the relevant underlying fund. They therefore reduce the value of a Fund’s investments, and the unit price of your investments, and so affect the returns on your investment.

Exit or switching feesCurrently there are no exit or switching fees for the SIL Mutual Scheme. The Trustee may, however, charge exit or switching fees in the future.

9

What returns will I get?

The return on your investment in the SIL Mutual Scheme will be the amount you receive when you withdraw some, or all, of your investment.

The SIL Mutual Scheme will not pay you any income or other amounts before you withdraw your investment. There are restrictions on when you can withdraw your investment. See How do I cash in my investment? on page 15 for more information on when you can withdraw your investment.

The amount of your returns will depend on the three factors discussed below:

Contributions will affect returns The contributions made to your investment in the SIL Mutual Scheme will affect the returns you get. These will include your regular contributions, any additional lump sum contributions, any contributions transferred from another superannuation scheme and any contributions made by anyone else on your behalf. See How much do I pay? on page 6 for more information about contributions.

Investment performance will affect the returns you getYour investment can go up or down because of the investment performance of the Fund or Funds you invested in. Investment performance reflects gains or losses made when assets the Funds invest in change in value or earn income.

Past performance is not a guarantee of future performance.

Charges and taxes will affect returns The costs you pay will reduce the value of your savings in the SIL Mutual Scheme. The costs you pay include:

• charges, see What are the charges? on page 7 for more information

• taxes, see Tax and your returns below for more information.

Tax and your returnsThis section discusses the tax consequences for a New Zealand tax resident who invests in the SIL Mutual Scheme.

Tax legislation and rates of tax may be subject to change and the impact of taxation may vary depending on your individual circumstances. ANZ Investments and the Trustee therefore recommend that you consult a tax adviser before making an investment in the SIL Mutual Scheme through SIL.

SIL is a Portfolio Investment Entity (PIE)SIL is a PIE. PIEs are eligible for certain tax concessions which are intended to ensure that they pay tax on their taxable income on behalf of their investors and at a rate that does not exceed the tax that would otherwise be payable if the investors had made the investments directly.

This means that SIL’s taxable income is shared by members based on the number of units a member holds.

ANZ Investments then uses your prescribed investor rate (PIR) to calculate tax payable by SIL on such income. ANZ Investments pays this tax for you from your account by cancelling units in your account equal to the value of the tax liability you need to pay. ANZ Investments will do this:

• at the end of the tax year (following 31 March)

• on a full withdrawal or switch from a Fund

• at any other time when the value of your units is insufficient to cover your accrued tax liability.

In certain circumstances SIL receives tax refunds. When a refund is received, ANZ Investments will add units to your account equal to the value of your share of the tax refund.

You need to tell ANZ Investments your PIR In order for ANZ Investments to calculate tax payable on your behalf, you need to give ANZ Investments both your PIR and IRD number. If you do not do this, the taxable income attributed to you by SIL will be taxed at the default PIR of 28%. On page 10 there is a table that helps determine your PIR.

If you give ANZ Investments the correct PIR, ANZ Investments will pay the correct amount of tax for you on your share of SIL’s taxable income. You will not need to pay any further tax or fill out a tax return for this income.

If you notify ANZ Investments during a tax year that your PIR has changed (for example because you cease to be a New Zealand tax resident part way through the tax year), you will be treated as having the latest notified PIR for the whole of the tax year unless tax has already been paid or recovered.

If you give ANZ Investments a PIR that is too low, you may need to file a tax return and be personally liable for paying any additional tax, penalties and interest.

If you give ANZ Investments a PIR that is too high, you will not be able to claim a refund of overpaid tax from either SIL, ANZ Investments or Inland Revenue.

Inland Revenue can require ANZ Investments to use a different PIR if Inland Revenue consider that you have given ANZ Investments an incorrect PIR.

10

If having considered the two previous income years you qualify for two rates, your PIR is the lower rate.

* Your attributed PIE income or loss for an income year is the amount of income or loss attributed to you by PIEs (including the SIL Mutual Scheme) in that income year, as recorded in the tax certificates issued by PIEs to you at the end of each income year. An income year generally runs from 1 April of the previous year to 31 March of the current year.

NoNo

Was your total taxable income and attributed PIE income (after

deducting any attributed PIE loss)* in that year $48,000 or less?

Was your total taxable income and attributed PIE income (after

deducting any attributed PIE loss)* in that year $70,000 or less?

Yes Yes

Yes

NoNoIn either of the two income years before the relevant year was your taxable income $14,000 or less?

In either of the two income years before the relevant year was your taxable income $48,000 or less?

Your PIR is 28%

Your PIR is 28%

Your PIR is 17.5%

Your PIR is 10.5%

NoYour PIR is

28%Are you a New Zealand tax resident?

Yes Yes

What is your prescribed investor rate?

Employer contributionsAny contributions made to the SIL Mutual Scheme by your employer will be subject to employer’s superannuation contribution tax (ESCT).

The rates of tax and thresholds applicable to your employer’s contribution are set out in the following table.

Member’s salary or wages plus before-tax employer contributions in the previous tax year Tax rate

$0 – $16,800 10.5%

$16,801 – $57,600 17.5%

$57,601 – $84,000 30.0 %

$84,001 and over 33.0%

The deduction and payment of ESCT is the responsibility of your employer.

‘Employer contributions’ means employers’ contributions to superannuation schemes.

If you have not been employed for the whole of a tax year immediately before the relevant tax year, this amount will be based on an estimate of your expected salary or wages and your employer’s gross superannuation contributions for the current tax year.

Get advice if you are uncertainHow your investment in the SIL Mutual Scheme affects your tax may depend on your individual circumstances. If you are uncertain, you should consult a tax adviser.

Other information about returnsThe Trustee is legally responsible for paying your returns. Returns are not due on any particular date or frequency and no amount of returns is promised.

Your share of SIL’s income will not be counted towards your income when you are working out:

• whether you can get family assistance or a student allowance, or

• how much you need to pay in student loan repayments or child support.

11

What are my risks?

Asset class What are these assets? What are the main risks?

Cash assets Cash assets are interest-bearing deposits with one or more New Zealand-registered banks (such as term deposits), short-term debt securities, and floating rate notes.

Risks for cash and fixed interest assets are similar and include the risk that the issuer is not able to pay interest or repay principal.

For fixed interest assets and also some cash assets, added risks are that the value of the investment will fall if: • interest rates in the market increase • the creditworthiness of the issuer decreases.

Fixed interest assets

Fixed interest assets are securities issued by entities such as governments, corporations, local authorities, and banks (called issuers). The issuer generally pays a set (or fixed) interest rate for a set period of time.

Shares Shares represent part-ownership of a company or similar entity and include units, shares, or other equity securities. Shareholders share any profits or losses of the relevant entity.

Risks for shares and property securities are similar, and include the risk that if the company performs poorly: • share or unit prices may drop below the purchase

price or even to zero • dividends may not be paid.

The value of shares is affected by many things including market movements and company-specific issues.

Share and property securities investments are considered to be more risky than cash and fixed interest assets.

Property securities

Property securities are shares or units in listed property trusts or companies. Those trusts or companies own or invest directly in commercial property, buildings or land (including ports, airports, toll roads, utility networks and retirement villages).

Alternative assets

Alternative assets are assets that don’t fit into the four asset classes described above. These can include commodities, hedge funds, and private equity.

Alternative assets have their own risk and expected investment performance characteristics. Some are considered more risky than shares and listed property and some are considered less risky.

Like any investment your investment in the SIL Mutual Scheme involves taking some risk. The level and type of risk will vary depending on the Fund your savings are invested in, as each Fund is exposed to different levels and types of risk. You need to decide how these risks apply to your personal circumstances. In very general terms:

• if you’re seeking higher returns, you need to be willing to accept more risk

• if you’re seeking lower risk, you need to be willing to accept lower returns.

This section discusses the most significant risks that apply to an investment in the SIL Mutual Scheme. These (and other) risks may mean you get back less from your investment in the SIL Mutual Scheme than you hoped for, and you might not receive back the full amount you contributed to the SIL Mutual Scheme.

ANZ Investments and the Trustee decide which risks are significant by thinking about how likely an unwanted event is and what effect it might have if it happens.

There is no guarantee that the investment objectives of any Fund will be achieved.

You should consider the information set out in this section and talk to an authorised financial adviser if you need more information.

See the Prospectus for more information about risks.

Understanding the risks that apply to the Fund you’re invested inFor the SIL Mutual Scheme, the most significant risks will usually fall into the following broad categories:

• asset class risks – risks from the asset classes a Fund invests in

• investment management risks – risks that arise because of the way the SIL Mutual Scheme is managed

• general risks – risks that apply to any investment in the SIL Mutual Scheme.

These broad risk categories, and how they are mitigated, are discussed in greater detail on pages 11 to 13.

Asset class risks

Different asset classes have different risksDifferent asset classes have different levels and types of risk. For example, investments in shares and property securities are considered to be more risky than cash and fixed interest assets. These characteristics mean that Funds with larger investments in shares and property securities are typically exposed to more risk than Funds with larger portions invested in cash and fixed interest assets.

The table below describes the main risks associated with the different asset classes our Funds invest in.

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Risks in the SIL Balanced Plus FundAlthough the SIL Balanced Plus Fund is exposed to the risks that apply to each asset class, these risks are reduced because it’s a multi-asset-class Fund. By investing in the multi-asset-class SIL Balanced Plus Fund, poor performance by a single asset class has less impact on your investment than if you were invested in that single-asset class. In addition:

• investment losses from one asset class may be offset by investment gains from another, and

• investments are in many organisations, industries, and countries.

ANZ Investments seeks to mitigate these risks even further by varying the asset class mix for the SIL Balanced Plus Fund depending on how it believes each asset class is likely to perform (called active asset allocation). ANZ Investments can also adjust the level of currency hedging for foreign share assets depending on its view of the relative strength (or weakness) of the New Zealand dollar.

Risks in single-asset-class Funds The single-asset-class Funds (all Funds other than the SIL Balanced Plus Fund) are exposed to the specific risks associated with the asset class in which they invest. The single-asset-class Funds do not benefit from diversifying investments across asset classes. Poor performance within the asset class may have a significant effect on the Fund. ANZ Investments seeks to mitigate these risks by investing in many organisations, industries, and for the SIL International Share Fund, countries.

Investment management risksThe way the Funds are invested gives rise to some specific risks from active management, currency rate changes, and our use of derivatives.

Active management risk All of the Funds are actively managed. Active management is making active choices about which assets to invest in. The aim of active management is to have better investment performance than a particular index or market. Passive management, by contrast, tries to accurately track a particular index or market.

Active management risk is the risk that the Funds perform worse than the particular index or market because of poor investment decisions. With active management, ANZ Investments risks:

• choosing investments that underperform the particular index or market

• mistiming market changes.

An active management approach can lead to better investment performance compared to a passive management approach. For example, when the share market has an overall fall, the investment decisions ANZ Investments has made might mean the Funds decrease by less than the market as a whole.

ANZ Investments seeks to mitigate active management risk by employing investment professionals who have successfully applied a consistent active management strategy over a number of years.

Currency riskThe SIL Balanced Plus Fund and the SIL International Share Fund are exposed to currency risk.

Currency risk is the risk of changes in currency rates. The SIL Balanced Plus Fund and the SIL International Share Fund face currency risk because they invest in international assets that are denominated in foreign currencies. For these Funds:

• if the New Zealand dollar falls in value against a given foreign currency, all else being equal, the New Zealand dollar value of the Fund’s foreign investments will increase, and

• if the New Zealand dollar increases in value against a given foreign currency, all else being equal, the New Zealand dollar value of the Fund’s foreign investments will fall.

For the SIL Balanced Plus Fund, ANZ Investments seeks to mitigate currency risk by hedging currency exposure from foreign fixed interest assets, foreign property securities, and some foreign share assets.

The SIL International Share Fund has the most currency risk of all the Funds and, at times, may be fully exposed to currency risk. ANZ Investments can seek to mitigate currency risk for the SIL International Share Fund by adjusting the level of hedging depending on its view of the relative strength (or weakness) of the New Zealand dollar.

Risks associated with derivativesThe Funds can enter into derivative contracts. The value of a derivative is usually linked to (that is, derived from) changes in the value of another asset, an index (such as a share market index or a commodity index), an interest rate, or an exchange rate.

Specific risks with derivatives are:

• losses because of changes in the value of the underlying assets, indices or rates

• losses if the other party to the derivatives contract fails to meet its contract obligations

• exaggerations in the effect of any increase or decrease in the value of the underlying assets, indices, or rates.

ANZ Investments seeks to mitigate these risks by:

• taking into account the financial strength of any counterparties to derivative contracts, and

• monitoring to make sure that ANZ Investments is using derivatives in accordance with the statement of investment policy and objectives.

13

General risks

Changes to the FundsThe Trustee, itself or through ANZ Investments, can make changes to the SIL Mutual Scheme and the Funds, provided that those changes are allowed by the Superannuation Schemes Act 1989 and the Trust Deed. See Can the investment be altered? on page 14 for more information about the types of changes that can be made. These changes may affect the level of risk and returns you can expect.

Changes to the lawChanges to or loss of SIL’s PIE status, or changes to tax, superannuation and other legislation, may affect the returns and benefits that you receive. For example, if SIL loses its PIE status, SIL will be taxed at 28%, rather than your notified prescribed investor rate.

You may need to pay more money to Inland Revenue, the Trustee or ANZ InvestmentsAs well as the risks described above, there is also a risk that you may need to pay more money in addition to the amounts described in the section How much do I pay? on page 6. This will occur only if you owe tax. You can mitigate this risk by:

• telling ANZ Investments your correct prescribed investor rate

• advising ANZ Investments of any increase in your prescribed investor rate

• telling ANZ Investments your correct IRD number

• advising ANZ Investments if you are no longer a New Zealand tax resident.

If you fail to give ANZ Investments the information it needs to pay the correct taxes on your behalf, you may need to complete a tax return and pay additional tax to Inland Revenue. Penalties and interest might apply.

In some circumstances (for example, if you’ve withdrawn most of your investment) you may not have enough savings left to meet the amount of tax payable on your share of SIL’s taxable income. If this happens, ANZ Investments or the Trustee may need to pay tax for you out of the assets of the relevant Fund. By investing in the SIL Mutual Scheme you agree that, if this happens, you will repay ANZ Investments or the Trustee.

Apart from payments to ANZ Investments, the Trustee or Inland Revenue for outstanding taxes, you won’t need to pay any money to any person beyond what you’ve invested.

If the SIL Mutual Scheme becomes insolvent (that is, cannot pay its debts), the most you can lose is the value of your investment in the SIL Mutual Scheme. You will not have to pay any money to any other person as a result of the insolvency. You may still be required to make payments to Inland Revenue if we’ve paid the wrong tax on your behalf.

SIL can be wound upThe Trustee can wind up SIL if it decides to do so. In certain circumstances the Financial Markets Authority can order SIL to be wound up. If SIL is wound up, the Trustee will first pay all creditors, costs, and liabilities of SIL, and will then determine the proportion of SIL’s remaining assets that is attributable to the SIL Mutual Scheme. Your share of the assets attributable to the SIL Mutual Scheme will be paid to you in a cash lump sum into your bank account. When the Trustee calculates each member’s share of the assets attributable to the SIL Mutual Scheme the Trustee will (if necessary) reduce the value of each member’s investment in equal proportions.

SIL will be closed to new members on 16 September 2016The FMCA is the new law that will govern how financial products are created, promoted and sold. It also sets out the responsibilities of those who offer, deal in and trade financial products. The FMCA will have significant implications for SIL. The Trustee has determined that SIL will be registered as a restricted scheme following its transition into the FMCA regime. As a restricted scheme SIL will be closed to new members and will focus solely on meeting the needs of existing members.

SIL will be closed to new members on 16 September 2016. Existing members will still be able to make further contributions after this date.

14

Can the investment be altered?

You can change your regular contributionsWhen you first apply to become a member of the SIL Mutual Scheme you will be asked whether you wish to make regular contributions and the amount of those regular contributions.

You can increase the amount of your regular contributions at any time.

If you have been making regular contributions to the SIL Mutual Scheme for at least a year, you can also:

• reduce the amount and/or frequency of your regular contributions

• stop making regular contributions.

You can make additional lump sum contributionsYou can make additional lump sum contributions to the SIL Mutual Scheme at any time by completing the Additional Lump Sum Contribution Form at the back of this investment statement. Additional lump sum contributions can be for any amount. See How much do I pay? on page 6 for more information about how to make additional lump sum contributions, and change the amount of your regular contributions.

You can switch between the FundsYou can switch between any of the Funds within the SIL Mutual Scheme. You can also choose to redirect your on-going contributions to another Fund within the SIL Mutual Scheme. There is currently no fee for switching between Funds.

When you switch between Funds in the SIL Mutual Scheme, your switch will be treated like a withdrawal. This means that your unit holding may be adjusted to account for your tax liability. See the Tax and your returns section on page 9 for an explanation of taxation and other consequences that may arise on switches.

If you have an authorised financial adviser, you should contact them for assistance with the switching process. If you don’t have an authorised financial adviser, you should contact the ANZ Investments Customer Services team at the address shown on page 33, for assistance with the switching process. If you wish to switch Funds please:

• read the latest copy of the investment statement. If you are unsure if you have the most recent copy of the investment statement please contact the ANZ Investments Customer Services team at the address shown on page 33, and ANZ Investments will send one to you

• complete the Switch Request Form at the back of the investment statement or at silfunds.co.nz, and

• send your completed Switch Request Form to the ANZ Investments Registry Services team at the address shown on page 33.

The current investment statement is available by calling ANZ Investments and is also online at silfunds.co.nz.

The Trustee and ANZ Investments can make changesThe Trustee may at any time:

• alter or introduce minimum investment levels

• increase fees or impose new fees relating to investments

• alter the terms of the Trust Deed, subject to the Superannuation Schemes Act 1989.

ANZ Investments can decide to terminate or withdraw any of the Funds.

The Trustee and ANZ Investments can agree to:

• change the investment objectives, benchmarks and ranges for the Funds

• change the management fee paid to ANZ Investments and the type of expenses recoverable by ANZ Investments.

The manager can changeThe Trustee reappointed ANZ Investments as the manager for SIL under a management agreement dated 31 March 2016.

The Trustee and ANZ Investments each have the right to terminate that agreement in certain circumstances.

PIE taxANZ Investments can adjust your unit holding to reflect your PIE tax liability.

ANZ Investments will take whatever steps are necessary to ensure that SIL continues to be eligible for PIE status, and continue to follow the requirements of tax legislation.

Steps may include:

• rejecting applications

• redeeming or voiding a member’s units.

Law changesThe SIL Mutual Scheme has been developed to comply with the Superannuation Schemes Act 1989 and other relevant legislation. The information in this investment statement is based on current legislation.

The FMCA is the law that will govern how financial products are created, promoted and sold. It also sets out the responsibilities of those who offer, deal in and trade financial products.

Legislation can be amended by the Government – if it is, these amendments may impact on the SIL Mutual Scheme.

15

How do I cash in my investment?

You can withdraw when you reach your retirement ageYou can withdraw your investment in the SIL Mutual Scheme when you reach your retirement age. Your retirement age will be the age of 60, unless you are a female member who joined the SIL Mutual Scheme before 1976, in which case you will have a retirement age of 55. The Trustee can also decide, in its discretion, that a particular member will have an earlier retirement age. Contact the ANZ Investments Customer Services team at the address shown on page 33, if you want to find out more about how this discretion may be exercised.

You don’t have to withdraw all your savings at once. You can leave some or all of your savings in your investment and continue to benefit from investment performance. You can also continue contributing to your account.

You may wish to set up a regular withdrawal. You can arrange for a regular amount to be paid from your account each fortnight, month or quarter. The choice is yours.

The options available to you when you reach your retirement age are:

• retain your investment in the SIL Mutual Scheme – if you do this, you can choose whether or not to keep contributing, or

• withdraw your investment in full or in part.

How to make a withdrawal If you are eligible to make a withdrawal, simply complete the Withdrawal Request Form (available from your authorised financial adviser or the ANZ Investments Customer Services team at the address shown on page 33 or via the contact details on page 33).

See Charges and taxes will affect returns on page 9 for an explanation of tax consequences that may arise on withdrawal.

Withdrawals are generally not permitted before you reach your retirement ageWithdrawals are generally not permitted before you reach your retirement age.

If you are under your retirement age you may be permitted to make a withdrawal, where certain conditions have been satisfied, in the case of:

• permanent incapacity, or

• permanent emigration from New Zealand.

Each type of early withdrawal is explained in more detail below. For more information about early withdrawals, or to request a form, contact your authorised financial adviser or the ANZ Investments Customer Services team at the address shown on page 33.

Early withdrawal for permanent incapacityYou can make an early withdrawal if you satisfy the Trustee that you are suffering from permanent incapacity.

’Permanent incapacity’ means an injury, illness, or disability that the Trustee considers means you will be unlikely to have significant earning capacity in the future.

When considering this, the Trustee has to:

• take into account your previous employment and other characteristics, and

• consider the advice of a registered medical practitioner.

You need to show evidence of your permanent incapacity.

If the Trustee is satisfied that you are suffering from permanent incapacity, your investment will be paid in a single lump sum, or by several separate payments, as decided by the Trustee.

The Trustee can also decide to:

• pay your investment to you, or

• pay your investment to any one or more of your dependants.

Your ‘dependants’ include any person who, in the Trustee’s opinion, is:

• wholly or partially dependent on you, or

• has a legal right to look to you for support.

Early withdrawal for permanent emigrationYou can make an early withdrawal if you have emigrated, or are about to emigrate, permanently from New Zealand.

You will need to show evidence which satisfies the Trustee that you have permanently left New Zealand or are about to permanently leave New Zealand.

Your investment will be paid to you in a single lump sum.

You can leave your investment to whomever you chooseIf you die while you are a member of the SIL Mutual Scheme, your investment will be paid to those persons:

• responsible for administering your will, or

• dealing with your assets if you have not made a will.

The Trustee may be required to pay some or all of your investment to someone elseSome laws, such as the Property (Relationships) Act 1976, may require the Trustee to pay some or all of your investment to someone else.

16

The Trustee can redeem or void your investment for PIE complianceThe Trustee may redeem or void certain units exceeding the permitted threshold to ensure PIE status can be maintained.

If your units are voided, you will receive a refund of your contributions but any additional compensation is at the discretion of the Trustee. If your units are redeemed, the value of the redeemed units will be paid to you.

Benefits payable on bankruptcyIf you become bankrupt, your investment may, in some cases, be forfeited to the SIL Mutual Scheme. If this happens, the Trustee may apply the amount of your investment towards the support of you and/or any dependants, as its sees fit.

You can’t usually assign your investment to someone elseYou can only assign your investment to another person if you comply with the Trustee’s requirements relating to assignments.

In the Trustee’s opinion there is no established secondary market for investments in the SIL Mutual Scheme.

SIL can be wound upThe Trustee can wind up SIL if it decides to do so. In certain circumstances the Financial Markets Authority can order SIL to be wound up. If SIL is wound up, the Trustee will distribute the assets of the SIL Mutual Scheme in accordance with the Trust Deed.

17

What other information can I obtain about this investment?

The following documents give you more information about the SIL Mutual Scheme:

• the latest Prospectus

• the Trust Deed

• the latest annual report which includes summary financial statements

• the latest financial statements and auditor’s report.

ANZ Investments files the Prospectus, financial statements, Trust Deed, and other documents relating to the SIL Mutual Scheme with the Companies Office of the Ministry of Business, Innovation and Employment. All of the documents ANZ Investments files are on a public register. You can:

• inspect them at www.business.govt.nz/companies under ‘Search other Registers’ and searching for ‘the SIL Mutual Fund’, or

• get copies by phoning the Ministry of Business, Innovation and Employment Business Service Centre during business hours on 0508 266 726, or by emailing info@companies.govt.nz (you may need to pay a fee to the Ministry for the copies).

For a free copy of any of the documents listed above, email ANZ Investments on service@anzinvestments.co.nz or write to ANZ Investments at its address on page 33.

Information ANZ Investments sends you each yearEach year, ANZ Investments will send you:

• a statement showing how much was in your account on 31 March

• a PIE Tax Certificate for the tax year ended 31 March

• an annual report for the financial year ended 31 March.

How will you use my information?When you become a member of the SIL Mutual Scheme, you agree that ANZ Investments, ANZ and the Trustee can:

• use your IRD number to identify you when administering SIL, but for no other purpose

• get information and ask questions about you that we consider justified, including asking ANZ Group and credit reference agencies. We can ask anyone, including ANZ Group and credit reference agencies

• collect, use and disclose information about you to comply with any laws in New Zealand or overseas applying to ANZ Investments, ANZ and the Trustee or the accounts, products or services we provide to you. You agree to give us that information if we ask you for it

• give information about you to ANZ Group or any government authority in New Zealand or overseas. We can give information about you to help us comply with laws in New Zealand or overseas or to help us decide what we need to do to comply with the law in New Zealand or overseas

• use and obtain information about you, and let third parties have the information, to the extent reasonably necessary to administer your investment in the SIL Mutual Scheme or to promote to you other products of ANZ Investments or related companies of ANZ Investments.

ANZ Investments takes your privacy very seriously and maintains high security standards. Information you provide to us will be kept strictly confidential. The agencies that are collecting and securely holding that information are ANZ Investments, the Trustee, ANZ Group, members of their respective groups of companies, and any other entity that provides services related to SIL.

You have a right to see the information held by ANZ Investments email service@anzinvestments.co.nz. You may also ask that your information be corrected. You may have to pay a fee to do this.

For further information about ANZ Investments’ privacy policy and how this applies to your information, see the ‘Security & Privacy’ section of our ‘Website Terms of Use’ at anzinvestments.co.nz. Each person signing the Application Form agrees:

• that the Trustee, ANZ Investments, ANZ, ANZ Group, or any member of their respective groups of companies can act on any instructions from an authorised signatory, an authorised email address or authorised facsimile number

• that none of the Trustee, ANZ Investments, ANZ, ANZ Group, nor any member of their respective groups of companies accepts any responsibility or liability whatsoever for any damages, costs, expenses, losses or liabilities incurred by any person as a result of acting on any instructions from an authorised signatory, an authorised email address or authorised facsimile number, and

• to indemnify in all respects the Trustee, ANZ Investments, ANZ, ANZ Group, and any member of their respective groups of companies against all damages, costs, expenses, losses or liabilities which may arise as a result of accepting or acting on instructions from an authorised signatory, an authorised email address or authorised facsimile number.

18

Terms used in this investment statement

ANZ: ANZ Bank New Zealand Limited.

ANZ Investments: (see Manager)

ANZ Group: ANZ Bank New Zealand Limited, Australia and New Zealand Banking Group Limited, and their subsidiaries including ANZ Investments.

asset class: a group of assets with the same or similar features and behaviours. The main asset classes the SIL Mutual Scheme invests in are: cash, fixed interest, property securities, and shares. The SIL Balanced Plus Fund may also invest in other assets, such as alternative assets.

asset class mix: the mix of asset classes within a Fund, expressed as a percentage based on the market value of the assets in each class. Market movements will change the value of assets and therefore the asset class mix.

authorised financial adviser: a financial adviser who meets legal requirements (qualification and professional standards) for giving personalised financial advice about financial products, and who has been authorised by the Financial Markets Authority.

benchmark asset class mix: the asset class mix used as a starting point for deciding how much a Fund invests in each asset class. The actual asset class mix will vary from the benchmark asset class mix. ANZ Investments might vary the asset class mix to manage risk, increase potential investment performance, or manage cash flow. There are ‘ranges’ that state how far from the benchmark the actual asset class mix can be.

cash asset: in the context of the assets that the Funds invest in, any asset that is in cash or can be readily converted into cash. Cash can include interest-bearing deposits with one or more New Zealand-registered banks (such as term deposits), short-term debt securities, and floating rate notes.

capital value: the total realisable value of an asset or investment.

contribution: money paid to the SIL Mutual Scheme by you, or on your behalf by your employer, or any other person.

currency hedging: an investment strategy used to minimise gains or losses from changes in currency exchange rates. For example, a manager may buy listed property securities denominated in Australian dollars, and then buy an investment that will move in the opposite direction to the Australian dollar. Whichever way the Australian dollar moves, one investment will cancel out the other.

derivative: an investment whose value is usually linked to (or derived from) changes in the value of another asset, an index (such as a sharemarket index or a commodity index), an interest rate, or an exchange rate.

fixed interest asset: a debt security issued by a government, corporation, State Owned Enterprise, local authority or bank (called issuers). The issuer generally pays a set (or fixed) interest rate for a set period of time. Floating rate notes are included in fixed interest assets.

forward foreign exchange (FFX): a forward foreign exchange contract is a type of foreign currency transaction. FFX contracts are agreements between two parties to exchange two designated currencies at a specific time in the future. These contracts are used to protect or ‘hedge’ the buyer from fluctuations in currency prices.

Fund: a ‘pool’ of money made up of savings from a number of investors or members. The money is used to invest in assets, with the aim of producing capital gains and/or income for the fund. The SIL Mutual Scheme has five funds, each with its own asset class mix.

GST: goods and services tax imposed under the Goods and Services Tax Act 1985.

investment performance: the gains or losses made when the assets in which the Funds invest, change in value and/or earn income.

issuer: section 2(1) of the Securities Act 1978 defines who will be the issuer of a security if that security is offered to the public in New Zealand. You can get a copy of the Securities Act 1978 from legislation.govt.nz. Usually, the issuer is the legal entity which receives the money that investors invest in a security, and which is principally responsible for ensuring that the security is offered in a way which complies with the Securities Act 1978. The Trustee is the issuer of interests in the SIL Mutual Scheme.

Manager: ANZ New Zealand Investments Limited, the company that administers SIL Mutual Fund Limited and selects and manages its investments. ANZ Investments is a wholly owned subsidiary of ANZ, which is part of ANZ Group.

market: in financial terms, a broad term describing all possible buyers and sellers of all available financial investments or investment products.

market movements: changes in the overall value of assets traded in a market.

Participation Agreement: an agreement between a State Sector Employer and the Trustee which sets out the rate or amounts of contributions:

• that the State Sector Employer will make to the SIL Mutual Scheme on behalf of its employees, and

• that employees of that State Sector Employer will make to the SIL Mutual Scheme.

19

Portfolio Investment Entity (PIE): a company, superannuation fund, unit trust, or group investment fund registered with Inland Revenue to allow tax on investment income at the prescribed investor rate of its investors, rather than its own tax rate. PIEs also have different rules regarding what is, and isn’t, taxable.

prescribed investor rate (PIR): an investor’s tax rate for PIE income, which is the rate a PIE uses to calculate and pay tax on that investor’s taxable income.

promoter: a person who is instrumental in the formulation of a plan or programme under which securities are offered to the public. If a company or other corporate body is a promoter of an offer of securities to the public, each director of that company is also a promoter of the offer.

property securities: shares or units in listed property trusts or companies. Those trusts or companies own or invest directly in commercial property, buildings or land (including ports, airports, toll roads, utility networks and retirement villages). Also referred to as a ‘listed property asset’.

Prospectus: a document containing the details of an offer of securities to the public in New Zealand. The Prospectus must have the content required by the Securities Act 1978, and must be registered with the Registrar of Financial Service Providers.

registered superannuation scheme: a superannuation scheme registered under the Superannuation Schemes Act 1989.

restricted scheme: a retirement savings scheme registered under the Financial Markets Conduct Act 2013 as a restricted scheme. A restricted scheme that is closed to new members can also be a legacy scheme, which preserves existing scheme rules and member benefits such as the minimum retirement age and withdrawal rules.

return: the total amounts that you receive when you withdraw (in full or in part) from the SIL Mutual Scheme.

risk: the chance that an outcome, for example the change in value or income received from an investment, will be different than expected.

shares: shares give the holder part-ownership of a company, corporation or similar entity. The shares may carry the right to vote. The Funds generally invest in shares that are listed on a share market.

State Sector Employer: an employer in the State Services within the meaning of the State Sector Act 1988 or any other person or organisation that participates in the SIL Mutual Scheme for the purposes of establishing a superannuation scheme for its officers or employees under section 84A of the State Sector Act 1988.

TER: Total Expense Ratio, being the ratio of a Fund’s operating costs to its average net assets across a year.

Trust Deed: the document that sets out the Trustee’s rights and responsibilities in relation to the SIL Mutual Scheme and the SIL Employer Scheme, and requirements for how the SIL Mutual Scheme and the SIL Employer Scheme will be managed. By joining the SIL Mutual Scheme you agree to be bound by the terms of the Trust Deed and have the rights set out within it. For the purposes of this investment statement, the Trust Deed refers to the consolidated Trust Deed for SIL dated 28 September 2012.

Trustee: currently Superannuation Investments Limited. The Trustee is independent of the Manager and supervises how the Manager runs the SIL Mutual Scheme, for the benefit of you and other investors or members.

underlying funds: a managed fund that the Funds invest in.

you: any existing, or potential, member of the SIL Mutual Scheme. Also referred to as ‘your’ or ‘member’.

For the meanings of other financial and legal terms, see the Prospectus.

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SIL Mutual SchemeAdditional Lump Sum Contribution Form31 March 2016

1. Your information

First name(s)

Surname

IRD number (please call Inland Revenue on 0800 775 247 for help)

Investor number

Your prescribed investor rate: 10.5% 17.5% 28% (please see pages 9 and 10 of the investment statement for help)

2. Contribution Total contribution amount $

Please invest as per my existing investment selection. (if you select this option, you don’t need to complete the investment selection details below)

OR Please invest my additional lump sum contribution as indicated below.

SIL Balanced Plus Fund $ or 0 %

SIL New Zealand Fixed Interest Fund $ or 0 %

SIL New Zealand Share Fund $ or 0 %

SIL International Share Fund $ or 0 %

SIL Cash Plus Fund $ or 0 %

For details of this investment, contact your adviser or call ANZ Investments on 0800 736 034. Please note, it may take up to seven days before the transaction(s) show in your account.

3. Payment Cheque attached

Please make your cheque payable to ‘Superannuation InvestmentsLimited’ and cross it ‘account payee only’. Please include your name,date of birth and investor number or IRD number on the back ofthe cheque.OR

Direct credit to our bank account

If your payment is from a third party, please con� rm the relationship between you and the third party (e.g. mother, father, employer):

4. Is an entry fee applicable to this investment?The investor’s authorised � nancial adviser may charge an entry fee of up to 5.00% on all amounts being invested.

Is an entry fee applicable? Yes No If yes, what percentage has been agreed? . %

5. Your agreementBy signing this form, you agree to be bound by the SIL Mutual Scheme’s terms and conditions. These are set out in the Trust Deed, prospectus, and investment statement.

Signature

Date D D M M 2 0 Y Y

If this declaration is signed under Power of Attorney, the Attorney con� rms that he/she hasn’t received notice of revocation of that power. Attorneys must provide a certi� ed copy of their Power of Attorney.

Post this form to ANZ Investments, Freepost 324, PO Box 7149, Wellesley Street, Auckland 1141.

ADVISER USE ONLY

Adviser name

Distributor company name

FSP number

Distributor (agency) code

Bank account name: Superannuation Investments Limited – ClearingBank and branch: ANZ – Queen and Victoria StreetsBank account number: 01-0102-0211888-00

Make sure you include your investor number, or IRD number, surname and initials in the reference � elds.

ANZ New Zealand Investments Limited 03/16 18843 27

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SIL Mutual SchemeDirect Debit Form31 March 2016

Post this form to ANZ Investments, Freepost 324, PO Box 7149, Wellesley Street, Auckland 1141.

1. Your information

First name(s)

Surname

Investor number

2. What would you like to do? (tick one)

I want to set up a Direct Debit

I want to change the details of an existing Direct Debit

I want to cancel my existing Direct Debit

3. Are you the Bank Account Holder?

Yes (please complete sections 4, 5 and 6)

No (please complete section 6 and get the Bank Account Holder to complete sections 4, 5 and 7)

4. Contribution details

Contribution amount $ Start date D D M M 2 0 Y Y

Frequency (tick one) weekly fortnightly monthly quarterly annually

5. Bank instructions and details of the Bank Account Holder

Name of Bank Account Holder: Bank Branch Account number Su� x

If the Bank Account Holder is not the member, please con� rm

his/her/their relationship with the member: Bank and branch (hereinafter referred to as the “Bank”):

To my/our Bank Manager: I/We authorise you until further notice in writing to debit my/our account with all amounts which ANZ New Zealand Investments Limited (hereinafter referred to as the “Initiator”), the registered Initiator of the above Authorisation Code, may initiate by Direct Debit. I/We acknowledge and accept that the Bank accepts this authority only on the conditions listed on the reverse of this form.

Information to appear on my/our bank statement

I N V E S T M E N T

A N Z I N V E S T

Payer particulars Payer code

6. Your agreement

You agree and acknowledge that any correspondence relating to this Direct Debit will be sent to you.

Signature

Date D D M M 2 0 Y Y

7. Agreement by the Bank Account Holder (if not the member)

The Bank Account Holder consents to any correspondence relating to this Direct Debit being sent to the member.

Signature

Date D D M M 2 0 Y Y

AUTHORITY TO ACCEPT DIRECT DEBITS

(Not to operate as an assignment or agreement)

AUTHORISATION CODE(user number)

0 1 0 8 4 4 5

Please allow 10 working days for the direct debit to be established.

29

SIL Mutual Scheme

Conditions of this authority

1. The Initiator:

(a) Has agreed to give advance notice of the net amount of each Direct Debit and the due date of the debiting at least 10 calendar days (but not more than 2 calendar months) before the date when the Direct Debit will be initiated. This notice will be provided in writing (including by electronic means and SMS where the Customer has provided prior written consent (including by electronic means including SMS) to communicate electronically). The advance notice will include the following message:

“Unless advice to the contrary is received from you by (date*), the amount of $.............. will be directly debited to your account on (initiating date).”

* This date will be at least two (2) days prior to the initiating date to allow for amendment of Direct Debits.

(b) May, upon the relationship which gave rise to this Authority being terminated, give notice to the Bank that no further Direct Debits are to be initiated under the Authority. Upon receipt of such notice the Bank may terminate this Authority as to future payments by notice in writing to me/us.

(c) May, upon receiving an “authority transfer form” (dated after the date of this authority) signed by me/us and addressed to a bank to which I/we have transferred my/our bank account, initiate Direct Debits in reliance of that transfer form and this Authority from the account identi� ed in the authority transfer form.

2. The Customer may:

(a) At any time, terminate this Authority as to future payments by giving written notice of termination to the Bank and to the Initiator.

(b) Stop payment of any Direct Debit to be initiated under this Authority by the Initiator by giving written notice to the Bank prior to the Direct Debit being paid by the Bank.

3. The Customer acknowledges that:

(a) This Authority will remain in full force and e� ect in respect of all Direct Debits passed to my/our account in good faith notwithstanding my/our death, bankruptcy or other revocation of this Authority until actual notice of such event is received by the Bank.

(b) In any event this Authority is subject to any arrangement now or hereafter existing between me/us and the Bank in relation to my/our account.

(c) Any dispute as to the correctness or validity of an amount debited to my/our account shall not be the concern of the Bank except in so far as the Direct Debit has not been paid in accordance with this Authority. Any other disputes lies between me/us and the Initiator.

(d) Where the Bank has used reasonable care and skill in acting in accordance with this authority, the Bank accepts no responsibility or liability in respect of:

– the accuracy of information about Direct Debits on Bank statements; and – any variations between notices given by the Initiator and the amounts of Direct Debits.

(e) The Bank is not responsible for, or under any liability in respect of the Initiator’s failure to give notice in accordance with 1(a) nor for the non-receipt or late receipt of notice by me/us for any reason whatsoever. In any such situation the dispute lies between me/us and the Initiator.

4. The Bank may:

(a) In its absolute discretion conclusively determine the order of priority of payment by it of any monies pursuant to this or any other Authority, cheque or draft properly signed by me/us and given to or drawn on the Bank.

(b) At any time terminate this Authority as to future payments by notice in writing to me/us.

(c) Charge its current fees for this service in force from time-to-time.

(d) Upon receipt of an “authority to transfer form” signed by me/us from a bank to which my/our account has been transferred, transfer to that bank this Authority to Accept Direct Debits.

ANZ New Zealand Investments Limited 03/16 18843

Original – Retain at Branch. Copy – Forward to Initiator if requested.

0844

03 2016

APPROVED BANK STAMPCHECKED BYRECORDED BYDATE RECEIVED

BANK USE ONLY

30

SIL Mutual SchemeSwitch Request Form31 March 2016

1. Your information

First name(s)

Surname

Contact number

Email

IRD number (please call Inland Revenue on 0800 775 247 for help)

Investor number

Prescribed investor rate 10.5% 17.5% 28% (please see pages 9 and 10 of the investment statement for help)

2. Switching your existing investment

Switch your current balance to another Fund(s) (complete column A)

Switch your future payments to another Fund(s) (complete column B)

Switch both your current balance and future contributions to another Fund(s) (complete columns A and B)

A. Switch your current balanceto the following Fund(s):

B. Switch your future contributionsto the following Fund(s):

SIL Balanced Plus Fund % or $

% or $

SIL New Zealand Fixed Interest Fund % or $

% or $

SIL New Zealand Share Fund % or $

% or $

SIL International Share Fund % or $

% or $

SIL Cash Plus Fund % or $

% or $

Total 100% or $ 100% or $

If you make regular payments by direct debit, the total dollar value in column B must be the same as your existing regular contributions.To increase or reduce your regular contributions, please also complete a new Direct Debit Form.

3. Your agreement

I request to switch my investment as indicated above. I have read, understood and agree to be bound by the terms of the SIL Mutual Scheme investment statement dated 31 March 2016.

Signature

Date D D M M 2 0 Y Y

If this declaration is signed under Power of Attorney, the Attorney con� rms that he/she hasn’t received notice of revocation of that power. Attorneys must provide a certi� ed copy of their Power of Attorney.

Post this form to ANZ Investments, Freepost 324, PO Box 7149, Wellesley Street, Auckland 1141.

ADVISER USE ONLY

Adviser name

Distributor company name

FSP number

Distributor (agency) code

ANZ New Zealand Investments Limited 03/16 18843 31

This page has been left blank intentionally32

33

Speak to your authorised financial adviserIf you want financial advice regarding your investment, or if you have any questions or problems with your investment, you should speak to your authorised financial adviser first.

Try your adviser firstIf you have any problems with the SIL Mutual Scheme, please contact your authorised financial adviser.

Try ANZ Investments nextIf you don’t have an authorised financial adviser, or if your adviser has been unable to help you, please contact the ANZ Investments Customer Services team at the address shown above. ANZ Investments is committed to resolving your complaint as quickly as possible.

Try the Trustee after thatIf ANZ Investments can’t help you, please contact the Secretary to the Trustee at:

Email: vicki@dcg.co.nz

Telephone: 09 415 7911

Address: The Trustee Superannuation Investments Limited C/o Dunne Consulting Group Limited Level 2, Unit F4, 27-29 William Pickering Drive, Auckland 0632.

Who do I contact with inquiries about my investment?

Is there anyone to whom I can complain if I have problems with the investment?

If you’re still not happyIf ANZ Investments can’t help you and the Trustee can’t either, you can get independent assistance from the following dispute resolution scheme, free of charge

Email: info@iombudsman.org.nz

Telephone: 0800 888 202

Address: Insurance and Financial Services Ombudsman Scheme Level 8, Shamrock House, 81 Molesworth Street, Wellington PO Box 10-845, Wellington 6143

Contact ANZ Investments with any questions or problemsFor any questions or problems you have with your investment, please contact the ANZ Investments Customer Services team at:

Email: service@anzinvestments.co.nz

Telephone: 0800 736 034 or +64 9 356 4000

Address: ANZ Investments Customer Services 23-29 Albert Street, Auckland 1010 Freepost 324, PO Box 7149, Wellesley Street, Auckland 1141

A1468 03/16 18843